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69 Cards in this Set
- Front
- Back
What are the Costs of acheiving good quality? |
Prevention costs : quality systems, training
Appraisal Costs: Inspection and Testing
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What are the Costs of Poor Quality?
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Internal : Scrap, rework, downtime, lower price
External: lower customer satisfaction Warrenty claims Lost Sales |
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What is an industrial engineer? |
Industrial Engineers conduct studies and develop and supervise programs to achieve the best use or equipment and human resources.
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What is Industrial Engineering? |
Industrial Engineering is concerned with the design, installation and improvement of systems of people, equipment and materials. |
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What Categories can industrial engineering activities be classified to? |
-Production Operations (related to the process) -Management Systems (related to personnel) -corporate services
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What is a model? When is it used? |
A model is an aspect of the real world represented by images, graphs, or equations.
A model is used to analyze a problem -communication -training and instruction -Prediction -Decision making |
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What are some model guidelines. |
-Assumptions: explicit and accepted by user -Validity: should properly represent the real system. -Trade off between Accuracy and Utility. -Garbage in garbage out. -Constant revision
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Define Operations |
system that transfers inputs into outputs of greater value. |
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What are the three main functions of a firm. |
Marketing, Finance and Operations
Operations is viewed as the technical core. (most people most investments) -looked towards in cost reduction efforts. |
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Pros/Cons of Globalization |
Pros: more customers, improved supply chain, provides better goods and services, attracts global talent.
Cons: Increased complexity, risk and competition. |
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List some Competition Strategies. |
Cost
Quality
Flexibility
Speed. |
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List several trends in operations. |
-intense competion -global markets -importance of strategy. -product variety -more services -worker involvement -emphasis on quality and flexibility |
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Mention 4 benefits of SCM
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-improved quality -improved customer service - reduce costs -reduces uncertainty -eliminates delays |
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Name the 3 types of Products and Services |
Make to order: made to customer specifications after an order has been recieved. Make to stock: products and services are made in anticipation of demand. Assemble to order: products and services are produced in standard modules to which options are added. |
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What issues are related to Make to Order? |
satisfy customers, minimize required time to complete order |
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What issues are related to Make to Stock? |
forecasting demand, maintaining inventory level. |
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What is the Bullwhip effect? What is it caused by? |
It is when the delay of information causes buildup of inventory. This effect increases as it goes up the supply chain. Caused by: price fluctuations, order batching, forecasting error |
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Ways to prevent Bullwhip effect |
Good Communication Partnerships Accurate information Marketing |
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What is Total Quality Management? |
TQM ensures products and services have the quality they were designed for. Company wide participation is required. |
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Principles of TQM |
customer orinetened leadership strategic planning employee responsibility continous improvement Cooperation Statistics |
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Why is it important to estimate S(t) of a process |
- for production planning (layout, cost control, scheduling, wage rates,
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List the 4 main stages of the supply chain |
Procurement Production Distribution Sales |
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Name the 4 types of productions processes |
Continuous Production Mass Production Batch Production Project
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Define Standard time |
The amount of time it take a qualified, well trained operator working at a normal pace to complete a specific task. |
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What is a supply chain? |
The network of organizations that extends downstream to consumers and upstream to suppliers |
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What is Supply Chain Management? |
Coordination of all supply chain activities (from procurment) |
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What are some benefits of SCM? |
-reduce costs -reduces uncertainty -maintain inventory levels -eliminate delays -eliminate rush -provide good customer services -improve quality. |
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Name the 3 levels of decision making and provide an example of each |
Longterm (strategic) -plant location
Medium term (tactical) - road upgrade
Short term (operational) -scheduling |
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What is ABC Classification? |
Classifies inventory according to annual dollar value. |
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What are the costs of Inventory Management? |
Carrying Cost
Ordering Cost
Shortage Cost |
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What is cycle counting? |
Comparing what they have in their system and in the inventory. |
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Define the classes of ABC Classification |
Class A items - weekly cycle counting ( 20% items / 80% value)
Class B items - monthly cycle counting (30 - 40% items/ 15% of value)
Class C items - Value of items (40 - 50% items/ 5% of value) |
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what is the Parento Principle? (80/20 rule) |
80% of all the problems in the system are related to 20% of the items.
20% of the items are worth 80% of the value.
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Describe the Classes in ABC analysis and how their inventory is managed |
Class A requires tight control, continuous inventory system(80% value)
Class B recieves relaxed control, periodic system(15% of value)
Class C minimal control, periodic system(5% of value) |
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When is the Basic Economic Order Quantity Model used? |
When: Demand is constant lead time is constant Order quantity is received all at once. |
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When is it appropriate to use the Production Order Quantity Model (Non-instantaneous)? |
When: -order is received gradually over time. -inventory levels drop and rise simultaneoulsly -when inventory user is also the producer.
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What is a safety stock? |
buffer added to the inventory during lead time. |
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What does "stockout" mean? |
it refers to an inventory shortage |
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What are the properties of a Periodic Inventory System? |
-time between orders are constant -the order size varies -normally requires a larger safety stock -When demand and lead time are fixed order quantity is fixed. |
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What is Statistical Process Control? |
the act of inspecting a random sample of outputs of a process and deciding whether it is in control. |
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What is acceptance sampling ? |
inspecting a random sample of products and deciding whether or not to accept the entire batch. |
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Describe the two types of variations that can occur in production. |
Natural variations: unavoidable and are due to slight differences in materials, machines, tools, workers, etc
Assignable variations: cause can be identified and eliminated such as misadjusted equipment, poor material, untrained worker |
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Define the quality measures used in SQC |
Variables - measurable (weight, volume, length, time)
Attributes - countable - yes or no question (color, taste, smell) |
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Describe two methods of inspection used in SQC |
Complete Inspection - Inspect each product at each stage
Sampling - Small samples are inspected |
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What statistical measurements are often used to describe a process? |
Mean, range and standard deviation |
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Describe the uses and properties of control charts. |
-Shows whether a sample of data falls within the common range of variation (UCL, LCL) -A process is out of control when one sample falls outside the control limits
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Provide the two types of control charts for variables and what they are used for. |
- x-bar chart (mean): monitors the change in the mean of a process
- R-chart (variability): monitors the variability of a process |
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What are X-bar and X-barbar in SQC? |
X-barbar is the average of the averages of each sample
X-bar is the average of a sample |
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Provide the two types of control charts for attributes and what they are used for. |
C-charts - displays the actual number of defects
P-charts - displays the proportion of defects items in a sample |
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What does c-bar refer to in a c-chart? |
The mean number of defects per unit (this is the CL on the chart)
note: c-bar = sigma for Poisson distribution |
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What does p-bar refer to in a p-chart? |
The proportion of defective units in a sample (this is the CL on the chart) |
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Describe process capability. |
The ability of a process to meet design specification. |
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How can the Process Capability Ratio (Cp) be interpreted. |
Cp = 1: variability meets specifications
Cp < 1: variability is outside specifications
Cp > 1: variability is tighter than specifications |
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How can Cp lead to mistakes? What is an alternative? |
-When process variability is not centered on the specification range. -Cpk can be used. |
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How can Cpk be interpreted? |
-Take the minimum value of the two calculated. -If it is less than 1 the process is not capable of meeting specifications |
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What is an operating characteristic curve? |
A graph that shows the probability of accepting a batch at various proportions of defects. |
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What is the purpose of inventory management? |
To determine how much to order and when to order to keep enough inventory to meet customer demand and reduce cost. |
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Describe the two forms of demand. |
-Dependent: Demand for items that are used internally to produce a final product
-Independent: Demand for final products |
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Identify the 3 costs that make up inventory costs. |
Holding costs
Ordering costs
Shortage costs |
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What costs make up holding costs?($/yr) |
-Storage costs -Interest on loans to purchase inventory |
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What costs make up ordering costs?($/order) |
-Purchase -Transportation -Inspection -Accounting and auditing |
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What costs make up shortage costs? |
-Customer dissatisfaction -Price discount -Work stoppage
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Describe the two Inventory Control Systems |
-Continuous (fixed order quantity): order is placed for the same amount whenever inventory decreases below a certain point
-Periodic (fixed time): order is placed after a specific time period for different amount |
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What do the variables p and d stand for in the Production order Quantity inventory control system?
What about Q/p and (Q/p)d? |
p (Production rate) = daily rate which the order is received
d = daily demand
Q/p (Length of production run) = time required to receive an order
(Q/p)d = amount of inventory used during the time it takes to receive an order |
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What are the steps to finding the optimum order quantity when a quantity discount is available ? |
-Find EOQ (economic order quantity) -Calculate TC for lower price brackets based on the lowest Q to obtain the discount -If EOQ is in the lowest price bracket then it is Qopt
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How can you find optimal production with 2 decesion variables graphically |
-Make a graph of (x1) vs (x2) -Plot each contraint -The area that is bounded by the axises is feasible -Plot the objective function -Intersection is optimal |
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What is a binding constraint? |
When the optimum value for a decision variable is equal to the constraint. |
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Define slack and surplus. |
Slack is when the LHS Surplus is when LHS>RHS |
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Define shadow price |
Amount which the value of objective function (profit) would change with one unit change in RHS (capacity of plant) |