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96 Cards in this Set
- Front
- Back
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Capacity
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maximum rate of output (no one best way to measure) (ability to hold, receive, store, or accommodate)
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Design capacity
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maximum output rate under ideal conditions (difficult to sustain)
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effective capacity
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maximum output rate under normal (realistic) conditions
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capacity utilization rate
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what's being used versus what's available
CUR - (capacity used) / (best operating rate) |
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economies of scale
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economic benefit of operating at a high volume (discounts for buying a lot)
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economies of scope
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ability to compete on flexibility
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capacity strategy
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decisions about the size of plant and equipment
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capacity cushion (leading strategy)
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prepare for the 'just in case', resources on staff to meet the demand should it arrive
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demand cushion (lagging strategy)
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fixed costs more easily covered; know demand is there; maintains high inventory or backlogs
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capacity planning time - long range
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greater than one year (brick and mortar)
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capacity planning time - intermediate range
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plans covering next 6 to 18 months (suppliers)
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capacity planning time - short range
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less than one month (overtime)
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strategic capacity (capacity flexibility)
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being able to have flexibility (facilities, equipment, labor force size); the ability to rapidly increase or decrease product levels of the ability to shift rapidly from one product or service to another
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capacity focus
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the idea that a production facility works best when it is concentrated on a limited set of production objectives
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capacity flexibility - plant
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quickly adapt to change; zero change over time
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capacity flexibility - process
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example: 1 black car, next white (no wait)
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capacity flexibility - labor
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encouraged so prepared when demand requires it
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Considerations for changing capacity (4)
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- monitoring system balance (find the 'sweet spot')
- frequency of capacity additions - external sources of capacity - decreasing capacity |
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Determining capacity requirements (steps)
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- forecast: use to predict sales for individual products
- calculate equipment and labor requirements - capacity utilization - machine requirement - labor requirement - project equipment and labor availability |
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decision trees for capacity analysis
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tool to determine a sequence of steps to solve a problem (see example ch 4 page 9)
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project
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unique 1 time activity or event (set of tasks completed only once)
- ex: writing a term paper, developing a supply chain IS, designing an iPod |
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project management
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planning, directing, and controlling resources to meet technical, cost, and time constraints
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PMBOK
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Project Manager Body of Knowledge
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PMBOK - scope management
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understand why you're taking project and expect results
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PMBOK - quality management
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what illustrates good or bad
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PMBOK - cost management
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project budget and controls
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PMBOK - contracts/purchasing
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establish and monitor the vendors
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PMBOK - time management
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schedules, resource planning
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PMBOK - risk management
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what risks should have a plan if it should occur
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PMBOK - human resources
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right people assigned at the right time
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PMBOK - communication management
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keep everyone on the same page
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PMBOK - project integration
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fitting project into the existing organization
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Pure project
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a team works full time on project
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functional
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one functional area of the firm
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matrix
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blend of pure and function projects
pure - a team works full time on project functional - one functional area of the firm |
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project life cycle - concept study and organizational commitment
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0 - establish need, consider/evaluate/select alternatives
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project life cycle - development
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1 - plans for scope, cost, quality, time, and resource utilization
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project life cycle - implementation
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2 - deploy and monitor resources, subcontractors, and materials to complete
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project life cycle - project completion and operation
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3 - deliver project to customer; complete payments and recieving
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statement of work
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written description of objectives to be achieved
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task
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further subdivision of a project (usually shorter than several months)
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work package
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group of activities combined to be assignable to a single organizational unit
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project milestone
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specific events in the life of the project
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work breakdown structure (WBS)
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top-down breakdown of all the tasks (schedule - make sure to capture all events needed to pull it off)
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project control - Gantt charts
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see at a glance behind, ahead, and on target (progress of project)
can show simultaneous events |
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Earned value management (EVM)
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technique for measuring project progress in an objective manner
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Network Planning Models
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a project is made up of a sequence of actities that form a network
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Critical Path Method (CPM)
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- identify each activity to be done and estimate how long it will take
- determine the require sequence and construct a network diagram - determine the critical path: the longest time it takes to get through the network |
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project crashing
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- prepare a CPM diagram
- determine the cost per unit of time to expedite each activity - compute the critical path and shorten the critical path at the point where costs are lowest |
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production processes
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used to make any manufactured item (customers need to be at center)
- source the parts needed - make the product - deliver the product |
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lead time
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the time needed to respond to a customer order (want low)
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customers order decoupling point
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inventory positioned to allow entities to operate independently (ex: Lowes colors)
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lean manufacturing
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high level of customer service with minimal inventory investment
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make-to-stock
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serve customers from finished goods inventory (balance inventory with customer service)
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assemble-to-order
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make the customer's product from raw materials, parts, and components
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engineer-to-order
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work with customer design and make the product
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vertical integration (FWD & BKWD)
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how to decide source, make, and deliver
- FWD: you do make - decide to start delivering - BKWD: you do make - buy suppliers to source or make something else |
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product layout
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value added resources travel in sequence
-: no flexibility, customer needs go down +: large quantity, low price |
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process layout (functional)
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value added resources arranged in groups
-: efficiency, complex +: flexibility |
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fixed position layout
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value added resources travel to site
-: lack efficiency +: selective, quality, experts |
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Inventory turnover (formula)
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cost of goods sold / avg aggragate value of the inv
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total value (at cost) of inventory (formula)
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SUM [(avg inventory for item i)*(unit value for item i)]
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days of supply (formula)
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average aggregate value of inventory / [cost of goods sold / 365]
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Work Station Cycle Time
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uniform time interval in which a conveyor passes a series of workstations
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assembly line balancing
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assigning tasks to a series of workstations (meet cycle time and minimize idle time) - see example ch 6 page 9
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TAKT (customer polling)
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trumps slowest work station - how often is customer pulling (usually slower than cycle time)
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break even analysis (BEV) (formula)
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(FCa - FCb) / (VCb - VCa)
FC - fixed cost VC - variable cost |
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EVM - Planned value
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PV, BCWS - what is planned when scheduling
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EVM - Actual cost incured
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AC - accounting records or what actually happens
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EVM - Earned Value
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EV, BCWP - actual cost of scheduled work
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EVM - Cost performance index (CPI)
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BCWP / AC
[EV / AC] |
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EVM - spending performance index (SPI)
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BCWP / BCWS
[EV / PV] |
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EVM - schedule variance
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BCWP - BCWS
[EV - PV] |
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EVM - cost variance
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BCWP - AC
[EV - AC] |
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Operational classification services
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classified according to customers they service and service they provide
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customer contact
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physical presence of customer in the process
- high customer contact more difficult to control |
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creation of the service
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work process involved in providing the service itself
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design process (5 steps)
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- service concept: what kind of experience do you want customers to have?
- service package: physical items? psychological benefits? - performance spec's: customers requirements and expectations - design: cost, skills, time, activities - delivery: schedule |
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free flow service layout
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+: encourage browsing, increase impulse purchases, flexible and visually appealing
-: loitering possible, wasted floor space, hard to clean EX: disney store |
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grid service layout
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+: customer familiarity, low cost, easy to clean, secure
-: plain, limited browsing EX: kroger |
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loop and spline service layout
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+: increase customer sight lines and exposure, circulate store
EX: Ikea |
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pure virtual customer contact
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companies enable cost to interact in an open environment
EX: Ebay |
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mixed virtual and actual customer contact
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customer interact in a server-moderated environment
EX: YouTube |
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Service blueprinting
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flowchart - optimize or eliminate customer interface options
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Poka-Yokes
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error proof (block inevitable mistakes from becoming a service defect)
EX: phone number format on a form |
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psychology of waiting
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- use of diversions
- preferential treatment |
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waiting in line problems (queues)
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- reducing wait time costs money but raises customer satisfaction and throughput
- balance time and cost |
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queuing anaylsis
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provides information not recommendation
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managing queues
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- segment customers
- train servers to be friendly - manage customer expectations - divert customer attention while waiting - encourage customers to come during slack periods |
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Basic Single Server model - # customers in system queue and being served
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Basic Single Server model - average # of customers waiting in line
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Basic Single Server model - average total time in system
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Basic Single Server model - average time waiting in line
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Basic Single Server model - probability of no system customers
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Basic Single Server model - average service time
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Basic Single Server model - average time between arrivals
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