Info 361 Ch 1

Front 1

What is the source of wealth of a country

Back 1

-natural resources
-use of natural resources
-production operartions

Front 2

production operations manages

Back 2

labor, capitol, and materials

Front 3

factors that affect operations management (5)

Back 3

government:huge factor
economy
competition
customers expectations
quality

Front 4

government
factor 1.

Back 4

regulation applies to such areas as the environment, safety, product liability, and taxation. the regulation is extensive and affects the way business is conducted

Front 5

economy
factor 2.

Back 5

general economic conditions influence the demand for a company's products or services and the availability of inputs. materials and labor shortages or surpluses influence the decisions mgmt makes

Front 6

competition
factor 3.

Back 6

manufacturing companies face competition from throughout the world. they find foreign competitors selling in their markets even though they themselves may not be selling in foreign markets. companies also are resorting more to worldwide sourcing

Front 7

customers
factor 4.

Back 7

both customers and industrial customers have become much more demanding and suppliers have responded by improving the range of characteristics they offer. ex fair price, delivery lead time, higher quality products, better presale and after sale, product and volume flexibility

Front 8

quality
factor 5.

Back 8

since competition is international and aggressive, successful companies provide quality that not only meets customers' high expectations but exceeds them.

Front 9

order qualifiers

Back 9

a set of minimum requirements to be considered a viable competitor in the marketplace.
customer requirements may be based on price, quality, delivery, and so forth.

Front 10

order winners

Back 10

competitive characteristics, or combination of characteristics, that persuade a company's customers to choose its products or services

Front 11

order winners should be sustainable

Back 11

characteristics that are order winners today probably will not remain so, bc competition will try to copy winning characteristics, and the needs of customers will change

Front 12

delivery lead time

Back 12

is the time from receipt of an order to the delivery of the product.

Front 13

4 basic strategies for product design and inventory that impact lead time

Back 13

1. Engineer-to-order
2. Make-to-order
3. Assemble-to-order
4. Make-to-stock

Front 14

Engineer-to-order
strategy 1.

Back 14

means that customer's specifications require unique engineering design or significant customization. the customer is usually highly involved and inventory will not normally be purchased until needed by manufacturing, and delivery lead time is long. ex boeing military

Front 15

Make-to-order
strategy 2.

Back 15

the manufacturer does not start to make the product until a customer's order is received. the final product is usually made form standard items but may include custom-designed components as well. delivery lead time is reduced because there is little design time required and inventory is held as raw material ex. boeing commercial

Front 16

Assemble-to-order
strategy 3.

Back 16

the product is made from standard components that the manufacturer can inventory and assemble according to a customer order. delivery lead time is reduced further bc there is no design time needed and inventory is held ready for assembly. ex. dell or freebirds

Front 17

Made-to-stock
strategy 4.

Back 17

the supplier manufactures the goods and sells from a finished-goods inventory. delivery lead time is shortest. customer has little direct involvement in product design. ex. coke or pepsi

Front 18

postponement

Back 18

a product design strategy that shifts product differentiation closer to the consumer by postponing identity change to the last possible supply chain location.
its another application of assemble-to-order
lowers WIP inventory

Front 19

3 main phases in the supply chain concept

Back 19

buy-supplier
make-manufacturer
sell-distribution
-we focus more on the making

Front 20

historical perspective

Back 20

at the beginning, internal issues received most of the attention in the company, not the supply chain

Front 21

The Toyota way

Back 21

first major change was use JIT (1970s)-low inventory, coordinating w/suppliers, do the best with what you have; elevate suppliers to partners

Front 22

growth of the supply chain concept

Back 22

1. firms were linked by ERP systems
2. move from domestic SC to global SC
3. technology has grown and product life cycle shrinking rapidly "do things faster"

Front 23

Current Trends

Back 23

1. flow of money "fund transfers"
2. be more green (recovery, recycle, reuse material)
3. getting channel masters or 'orchestrator' that takes initiative to integrate both upstream and downstream of SC.

Front 24

Metric

Back 24

a verifiable measure state in quantitative or qualitative terms defined with respect to a reference point

Front 25

Benefits of Metrics

Back 25

-control by superiors
-reporting of data to superiors
-learning
-improvement
w/out metrics, no firm could expect to function effectively or efficiently on a daily basis

Front 26

Focus

Back 26

describes the particular activity that is to be measured

Front 27

Standards

Back 27

are the yardstick that is the basis of comparison on which performance is judged
"measures performance"

Front 28

Fill rate

Back 28

percent of customer orders that are delivered on time

Front 29

Performance Measure

Back 29

must be both quantified and objective and contain at least two parameters.
ex. the # of orders per day consists of both a quantity and a time measurement

Front 30

Performance Standards

Back 30

transforming company policies into objectives and specific goals. each goal should have target values.

Front 31

what to do with Conflicting Objectives?

Back 31

try to find a balance with conflicting objectives to minimize the total of all the costs involved and maximize customer service consistent with the goals of the organization

Front 32

How to balance Conflicting objectives?

Back 32

1. use Real-Time information
2. use optimization models
IT & ERP systems

Front 33

Materials Management

Back 33

a coordinating function responsible for planning and controlling materials flow.

Front 34

Objectives in Materials Management

Back 34

obj 1. Maximize the use of the firm's resources.
obj 2. Provide the required level of customer service

Front 35

Materials Management includes 3 basic activities

Back 35

1. manufacturing planning and control (info 361)
2. physical supply (info 340)
3. physical distribution (info 340)

Front 36

Work In Process (WIP)

Back 36

-it is a major investment
-is estimated as 50% of the cost of finished goods.
-can be reduced via manufacturing lead time
-hits the income statement and the balance sheet

Front 37

Manufacturing Planning and Control
(MPC)

Back 37

is responsible for the planning and control of the flow of materials through the manufacturing process.

Front 38

MPC can be divided into 3 modules or primary activities

Back 38

1. production planning
2. implementation and control
3. inventory management

Front 39

Production Planning
(MPC)

Back 39

involves
-forecasting
-master scheduling
-materials requirements planning
-capacity management

Front 40

Implementation and Control
(MPC)

Back 40

involves
-purchasing
-production activity control

Front 41

Inventory Management
(MPC)

Back 41

are materials and suppliers carried on hand either for sale or for the production process. they provide a buffer against the differences in demand rates and production rates

Front 42

Inputs into MPC

Back 42

1. product description
2. process specifications
3. available facilities
4. quantities required

Front 43

Product Description

Back 43

"bill of material"
-describes the components used to make the product
-describes the subassemblies at various stages of manufacture

Front 44

Process Specifications

Back 44

-operations required to make the product
-sequence of operations
-equipment and accessories needed
-standard time required to perform each operation

Front 45

Available Facilities

Back 45

MPC must know what plant, equipment, and labor will be available to process work. this is usually found in the work center file

Front 46

Quantities Required

Back 46

this information will come from forecasts, customer orders, orders to replace finished goods inventory, and the MRP

Front 47

Physical Supply/Distribution

Back 47

includes all activities involved in moving goods, form the supplier to the beginning of the production process, and from the end of the production process to the consumer

Front 48

Major activities for physical supply/distribution

Back 48

-transportation
-warehousing
-packaging
-materials handling
-order quantity