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16 Cards in this Set
- Front
- Back
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Capacity of Management |
Low: poor quality of service and loss of sales leads to new competitors High: bored employees and idle equipment lead to higher costs |
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External Factors Affecting Capacity |
Government Regulations Union Agreements Supplier Capabilities |
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Internal Factors Affecting Capacity |
Products and service design Personnel and jobs Plant layout and process flow Equipment capabilities and maintenance Materials management Quality control systems Management capabilities |
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Revenue/Yield Management |
Adjusting demand patterns to maximize capacity utilization, causing an increase in revenue. Pricing strategies used by companies with high fixed costs and low variable costs. |
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Capacity Flexibility |
Adjusting capacity to provide a wider range of products with short lead times. Flexible workers, facilities, and processes. External capacity, subcontracting, sharing capacity |
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Capacity Strategies |
1. Proactive Strategies: ahead of customer demand when opportunity cost is high, lots of competition, and unreliable sources. 2. Reactive Strategies: ignore demand until it is finally satisfied for companies with low opportunity cost, who compete on low prices, and have expensive resources. 3. Combination: willing to lose some but get others. |
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Facility Layout |
1. Process Layout: similar machines grouped together 2. Product Layout: assembly line 3. Group Technology (Cellular) Layout: produce one part in one area 4. Fixed Position Layout: product remains stationary |
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Assembly Line Balancing Steps |
1. Precedence diagram 2. Cycle time = available time/demand 3. Total work time per unit (T) 4. # of workstations needed (T/C) 5. Assign tasks considering precedence and cycle time restrictions 6. Efficiency T/(NaC) 50-60% is an alarm bell |
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Real World Issues in Line Balancing |
1. Physical restrictions in assigning tasks to stations (fixed or far apart?) 2. Individual tasks can take longer than the required cycle time, therefore you must split/share tasks or add resources. 3. Boredom, job rotation 4. Variability in completion time: work ahead of catch up 5. Mixed-model lines minimize set up time |
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Recognizing the Need for Change (Improvement) |
Internal/Leading: delays, rework/scrap, frustrated employees, idle staff/equipment External/Leading: complaints, returns, negative media Internal/Lagging: overtime, employee turnover, declining performance External/Lagging: declining market share and financial performance |
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Bench-marking |
Comparing an organizations processes and performance measures to solve a problem. 1. Internal - multiple locations 2. Competitive - lack of info 3. Functional - best |
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Process Improvement Approaches |
1. Continuous Process Improvement: a little bit 2. Business Process Re-engineering: start all over through discontinuous thinking. Causes are: technological enhancements (walkman), drastic improvements by a competitor (portable), customers change desires. |
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Disruptive Technologies |
Causes BPR 1. Initially performs worse - grainy digital 2. Radically different - people wont use it 3. Eventually overturns - film doesn't exist anymore |
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CPI Employee Involvement |
a. Collaborative, cross-functional teams b. Train to know what is a problem and how to resolve or what is an opportunity c. Need time to be creative d. Company culture: invest in employees, decentralize decision making, and being able to manage change |
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Just in Time/ Lean Production |
A coordinated approach that continuously reduces waste while also improving quality. Reduces waste, shows problems, and streamlines production. Requires employee participation, continuous improvement, and total quality control. |
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Just in Time Pull System |
Workers only produce when the Kanban ahead of them is empty, therefore creating a pull system through the factory. |
