OM mid term

SMED

a goal to reduce the setup time to a single-digit number of minutes

what is process flow diagram

a graphical way to describe the process, it uses boxes to depict resources, arrows to depict flows and triangles to depict inventory location

Def of utility

a measure of the customer preference of a product or service

Consumption utility def

a measurement of how much you like a service ignoring price and convenience ignoring the effects of price and its convenience

Utility is composed of

consumption utility, price, inconvenience

4 dimensions of performance

cost, quality, variety, time

def process analysis

identifies and analyzes all the activities involved in serving one unit of demand

Strategic trade offs

know what the customers wants, capabilities

off-loading the bottleneck by reassigning activities to another resource us called

line balancing

def of operations management

management processes used to design, supply, produce and deliver valuable goods and services to customers

Assembly line balancing

maximize efficiency, minimize number of work stations

A firm on the efficient frontier cannot be

pareto dominated

What is market segment

people who have same interest

Consumption utility attributes

performance, fit

what is variability

predictable or unpredictable changes in the demand or the supply process

bottleneck

process step with the lowest capacity

heijunka refers to

producing as close as possible to the true rate of demand

at a step with a setup inventory accumulates when the step is in

production

Decision situations: how to build a staffing plan

production smoothing (pre produce) staff to demand

line balancing

reassign activities to other resources with more capcity

More demand means a shorter takt time-

shorter takt time requires more employees to handle the same amount of labor content

when quantity demanded goes up

takt time decreases, target manpower increases

What are goods

tangible, can be inventoried, little customer contact, long lead time, often capital- intensive, quality easily assured, material is transformed

def flow units

the basic unit that moves through a process

Capacity and utilization increase as

the batch size gets larger

What is waste

the consumption of inputs and resources that do not add value to the customer

what is inflexibility

the inability to adjust to either changes in the supply process or changes in customer demand

Target staff level-

the ratio between the labor content and the takt time

def of takt time

the ratio between the time available and the quantity that has to be produced to serve demand

when the demand rate increases

the takt time decreases

What is cycle time

the time between completing 2 consecutive flow units

what is lead time

the time between when an order is placed and when it is received

Capacity analysis determines the

throughput capacity

the more a resource is idle the lower its

utilization

when flow rate goes up

wages per unit of time stay the same cost of direct labor decreases

What are system inibitors

waste, variability, inflexibility

what is utilization

how much capacity is actually used

what is efficiency

how much of effective capacity is actually used

Why are bottlenecks a concern

- they limit throughput - they cause piles of parts to build up between the processes - they can cause other operators to wait and be unproductive

how to choose a staffing level to meet demand

-Start with taking the demand rate as given. -Staff a sufficient number of resources in order to meet that demand.

typical decisions made by operations management

-how to produce goods/ services, how do we measure quality, how much do we make and when do we make it, what suppliers do we use and when should we order

What is process

A set of activities that take a collection of inputs, perform some work or activities with those inputs and then yield a set of outputs

external setups

activities that can be done during the actual setup for example when the machine is not producing

internal setups

activities that can be done during the actual setup for example when the machine is not producing

What is a bottleneck

any resource whose capacity is equal to or less than the demand place upon it

the "just right" batch size makes a smart trade off between

capacity and inventory

what is process capacity

capacity of the bottleneck

for a step with a setup as the procession time increases the capcity

decreases

when flow rate goes up but wages per unit of time stay the same costs of direct labor

decreases

When the flow rate is less than the capacity it is

demand constrained

Variability is the inhibitor that corresponds to changes in either

demand or supply

Labor utilization is a measure of

efficiency

specialization reduces the need for

equipment replication

What is theory of constraints

every process has a constraint, every process has variance that consumes capacity, every process must be managed as a system, process measures are crucial to the process's success

to offset the resulting setup times resources with a setup typically

have a shorter processing time than the alternative

def processing time

how long does the worker spend on task

def processing time

how long does the worker spend on tasks

def process anaylsis

identifies and analyzes all the activities involved in serving one unit of demand or put differently in providing one unit of supply

fewer setups and larger batches result in

increases utilization

What are services

intangible, cannot be inventoried, extensive customer contact, short lead time, often labor intensive, quality harder to asses, information or customer is transformed