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82 Cards in this Set

  • Front
  • Back
Location and Layout Considerations?
Regional Factors
Mutiple Plan Strategies
Site realted factors
Community considerations
Transportation Model
Decision based on movement costs of raw materials or finished goods
Factor Rating
Decision based on quantitative and qualitative inputs
Center of Gravity Method
Decision based on minimum distribution costs
Xcg = (  xi * Wi ) / ( Wi )

Ycg = (  Yi * Wi ) / ( Wi )
Product layout
Layout that uses standardized processing operations to achieve smooth, rapid, high-volume flow
Process layout
Layout that can handle varied processing requirements
Fixed Position layout
Layout in which the product or project remains stationary, and workers, materials, and equipment are moved as needed
Design of Work Systems (6)?
Behavioral Approaches to Job Design
Methods Analysis
Motions Study
Working conditions
Job Enlargement
Giving a worker a larger portion of the total task by horizontal loading
Job Roation
Workers periodically exchange jobs
Job Enrichment?
Increasing responsibility for planning and coordination tasks, by vertical loading
Process Analysis?
Cycle time
Throughput time
Capacity utilization
main characteristics of the product/service
appearance, feel, smell, taste
how well product/service conforms to customer’s expectations
useful life of the product/service
serivce after slaes
consistency of performance
Failure Cost?
costs incurred by defective parts/products or faulty services.
Internal Failure Costs?
Costs incurred to fix problems that are detected before the product/service is delivered to the customer.
External Failure Costs?
All costs incurred to fix problems that are detected after the product/service is delivered to the customer.
Appraisal Costs?
Costs of activities designed to ensure quality or uncover defects
Prevention Costs?
All TQ training, TQ planning, customer assessment, process control, and quality improvement costs to prevent defects from occurring
Tangible – intangible
Services created and delivered at the same time
Services cannot be inventoried
Services highly visible to customers
Services have low barrier to entry
Location important to service
Range of service systems
Demand variability
Service Design Involves?
The physical resources needed
The goods that are purchased or consumed by the customer
Explicit services
Implicit services
Service Delivery System?
Phases of Service Design?
Identify service package components
Determine performance specifications
Translate performance specifications into design specifications
Translate design specifications into delivery specifications
ISO 14000?
ISO 14000 family of standards on environmental management was developed to provide a practical toolbox to assist in the implementation of actions supportive to “sustainable development”.
Sustainable Development Key Limits?
the concept of "needs", in particular the essential needs of the world's poor, to which overriding priority should be given;
and the idea of limitations imposed by the state of technology and social organization on the environment's ability to meet present and the future needs.
Quality Assurance?
Emphasis on finding and correcting defects before reaching market
Strategic Approach?
Proactive, focusing on preventing mistakes from occurring
Greater emphasis on customer satisfaction
Determinantes of Quality?
Ease of Use
Conforms to Design
is the ability of product or service to consistently meet or exceed customer expectations
Aggregate Planning?
Intermediate-range capacity planning, usually covering 2 to 12 months.
Aggregate Planning Stratgies?
Alter demand to match capacity
Alter capacity to match demand
Some of each
Demand Options? (4)


Back orders

New demand
Capacity Options? (5)
Hire and layoff workers
Overtime/slack time
Part-time workers
Avg Inv?
Beg Inv + End Inv


Level Capacity?
Maintaining a steady rate of regular-time output while meeting variations in demand by a combination of options.
Chase Demand?
Matching capacity to demand; the planned output for a period is the expected demand for that period.
Worker in a Period =
Beg Worker + New Hire - New Layoff
End Inv =
Beg Inv +Current Productoin - Demand Satisifed
Avg Inv =
Beg Ince + End Inv
a means for converting various inputs (land, labor, capital, information) into outputs (goods and services).
Time Standard?
The expected amount of time to perform an activity. Used for planning and costing purposes. Comparing standards to actual time is a way to gauge process efficiency.
Work Center?
A place where an activity or a set of related activities are conducted.
Operating Unit?
A collection of work centers
the extent to which an operating entity is able to convert inputs into outputs. The most useful way to define capacity is in output per time period:
Capacity if consumed in three activites? (3)
Set up time - time required to prepare for processing
Run time - time required for actual processing
Change over time - time to change jobs
The work center with the least amount of capacity. The capacity of the bottleneck defines system capacity.
Cycle Time?
Interval between units of output for an entity operating at capacity.
Capacity in Units =
Time Available
Cycle time
Throughput Time?
Interval between an unit of output starting and completing production.
percentage of good items produced. Scrap equals 1 - yield.
Method Analysis?
Changes in tools and equipment
Changes in product design or new products
Changes in materials or procedures
Other factors
Procedure in Method Analysis?
Identify the operation to be studied.
Document the current method.
Analyze the job
Propose new methods
Install new methods
Follow up
Motion Study?
is the systematic
study of the human motions used
to perform an operation
Basic elemental motions that make up a job.
Transport load
Release load
Successful Job Design has 5 things? (5)
Carried out by experienced personnel with the necessary training and background
Consistent with the goals of the organization
Should be measurable
In written form
Understood and agreed to by both management and employees
Job Shop?
small scale proces type
Prepetitive / Assembly Line
High volumes of standardized goods or services
Very High OClumes of non-discrete goods
Moderate Voulume
the configuration of departments, work centers, and equipment, with particular emphasis on movement of work (customers or materials) through the system
Product layouts
Process layouts
Fixed-Position layout
Combination layouts
Objective of Layout Desing?
Facilitate attainment of product or service quality
Use workers and space efficiently
Avoid bottlenecks
Minimize unnecessary material handling costs
Eliminate unnecessary movement of workers or materials
Minimize production time or customer service time
Design for safety
Product Layout?
Layout that uses standardized processing operations to achieve smooth, rapid, high-volume flow
Process Layout?
Layout that can handle varied processing requirements
Fixed Position Layout?
Layout in which the product or project remains stationary, and workers, materials, and equipment are moved as needed
Total Inv Units =
Raw materials (RM) Cycle Stock + RM Safety Stock (SS) + Work in Process (WIP) + Finished Goods (FG) Cycle Stock + FG Safety Stock (SS)
WIP Inv =
Units/period* Production Lead-time

Material Requirement Planning
Computer-based information system that translates master schedule requirements for end items into time-phased requirements for subassemblies, components, and raw materials.
Dependent Demand?
Demand for items that are subassemblies or component parts to be used in production of finished goods.
MRP Inputs?
Master Production Schedule
Time-phased plan specifying timing and quantity of production for each end item.
Material Requirement Planning Process
Master Schedule?
One of three primary inputs in MRP; states which end items are to be produced, when these are needed, and in what quantities.
Cumulative Lead Time?
The sum of the lead times that sequential phases of a process require, from ordering of parts or raw materials to completion of final assembly.
One of the three primary inputs of MRP; a listing of all of the raw materials, parts, subassemblies, and assemblies needed to produce one unit of a product.
Product Strucutre Tree?
Visual depiction of the requirements in a bill of materials, where all components are listed by levels.
Net Requirements =
Gross Requirements – Available Inventory
Available Inventory =
Projected on hand– Safety stock – Inventory allocated to other items
Planned Orders?
schedule indicating the amount and timing of future orders.
Order Releases?
Authorization for the execution of planned orders.
Benefits of MRP?
Low levels of in-process inventories
Ability to track material requirements
Ability to evaluate capacity requirements
Means of allocating production time