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55 Cards in this Set
- Front
- Back
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Contract manufacturer
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an organization capable of manufacturing and/or purchasing all the components needed to produce a finished product or device
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core competency
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the one thing that a firm can do better than its competitors. the goal is to have a core competency that yields a long-term competitive advantage to the company.
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concurrent engineering
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emphasizes cross-functional integration and concurrent development of a product and its associated processes
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quality function deployment (QFD)
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a process that helps a company determine the product characteristics important to the consumer and to evaluate its own product in relation to others
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house of quality
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a matrix that helps a product design team translate customer requirements into operating and engineering goals
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value analysis/value entineering (VA/VE)
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analysis with the purpose of simplifying produts and processes by achieving equivalent or better performance at a lower cost
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capacity
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the amount of output that a system is capable of achieving over a specific period of time.
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strategic capacity planning
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determining the oeverall capacity level of capital-intensive resources that best supports the company's long-range competitive strategy
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best operating level
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the level of capacity for which the process was designed and the volume of output at which average unit cost is minimized
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capacity utilization rate
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measures how close a firm is to its best operating level
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capacity focus
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can be operationalized through the plants-within-plants concept, where a plant has several suborganizations specialized for different products - even though they are under the same roof. This permits finding the best operating level for each suborganization
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economies of scope
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exist when multiple products can be produced at a lower cost in combination than they can separately
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capacity cushion
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capacity in excess of expected demand
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learning curve
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a line displaying the relationship between unit production time and the cumulative number of units produced
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individual learning
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improvement that results when people repeat a process and gain skill or efficiency from their own experience
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organizational learning
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improvement that comes both from experience and from changes in administration, equipment, and product design
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process
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any set of activities performed by an oranization that takes inputs and transforms them into outputs ideally of greater value to the organization than the original inputs
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cycle time
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the average time between completions of successive units in a process (this is the definition used in this book). the term is sometimes used to mean the elapsed time between starting and completing a project
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utilization
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the ratio of the time that a resource sis actually activated relative to the time that it is available for use
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buffering
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a storage area between stages where the output of a stage is palced prior to being used in a downstream stage. buffering allows the stages to operate independently.
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blocking
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the activities in the stage must stop because there is no place to deposit the item just completed.
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starving
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the activities in a stage must stop because there is no work.
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bottleneck
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a resource that limits the capacity or maximum output of the process
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make-to-order
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a process that is activated only in response to an actual order
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make-to-stock
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a process that produces standard products that are storedin finished goods inventory. the product is delivered quickly to the customer form the finished goods inventory.
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hybrid
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combines the features of both make-to-order and make-to-stock. typically, a generic product is made and stocked at some point in the process. these generic units are customized in a final process to meet actual orders.
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pacing
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movement of items through a process is coordinated through a timing mechanism. most processes are not paced, but assembly lines usually are paced
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productivity
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the ratio of output to input. taking the dollar value of the ouput and dividing by the dollar value of the inputs usually measures total factor productivity.
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Partial factor productivity
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measuredbased on an individual input and often is not calculated using dollar values (an example would be units/person).
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efficiency
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a ratio of the actual output of a process relative to some standard
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run time
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the time required to produce a batch of parts
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setup tie
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the time required to prepare a machine to make a particular item
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operation time
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the sum of the setup time and run time for a batch of parts that are run on a machine.
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throughput time
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the average time that it takes a unit to move through an entire process. usually the term lead time is used to refer to the total time that it takes a customer to receive an order (includes time to process the order, throughput time, and delivery time).
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throughput rate
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the output rate that the process is expected to produce over a period of time
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process velocity or throughput ratio
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the ratio of the total throughput time to the value-added time
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little's law
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states a mathematical relationship between throughput rate, throughput time, and the amount of work-in-process inventory. Throughput time is equal to work-in-process divided by the throughput rate.
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project layout
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the product, because of its sheer bulk or weight, remains fixed in a location. equipment is moved to the product rather than vice versa.
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workcenter
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a process structure suited for low-volume production of a great variety of nonstandard products. workcenters sometimes are referred to as departments and are focused on a particular type of operation.
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manufacturing cell
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an area where simple items that are similar in processing requirements are produced
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assembly line
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a process structure designed to make discrete parts. parts are moved through a set of specialy designed workstations at a controlled rate.
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continuous process
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an often automated process that converts raw material into a finished product in one continuous process.
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product-process matrix
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shows the relationships between different production units and how they are used depending on product volume and the degree of product standardization.
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workcenter
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also called a job-shop or functional layout; a format in which similar equipment or functions are grouped together
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assembly line
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equipment or work processes are arranged according to the progressive steps by which the product is made
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manufacturing cell
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groups dissimilar machines to work on products that have similar shapes and processing requirements
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project layout
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the product remains at one location, and equipment is moved to the product
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systematic layout planning (SLP)
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a technique for solving process layout problems when the use of numerical flow data between departments is not practical. the technique uses an activity relationship diagram that is adjusted by trial and error until a satisfactory adjacency pattern is obtained.
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workstation cycle time
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the time between successive units coming off the end of an assembly line
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assembly-line balancing
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the problem of assigning all the tasks to a series of workstations so that each workstation has no more than can be done in the workstation cycle time, and so that idle time across all workstations is minimized
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precedence relationship
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the order in which tasks must be performed in the assembly process
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high and low degree of customer contact
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the physical presence of the customer in the system and the percentage of time the customer must be in the system relative to the total time it takes to perform the service
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service bluepring
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the flowchart of a service process, emphasizing what is visible and what is not visible to the customer
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poka-yokes
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procedures that prevent mistakes from becoming defects. they are commonly found in manufacturing but also can be used in service processes
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service guarantee
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a promise of service satisfaction backed up by a set of actions that must be taken to fulfill the promise
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