Om Exam 2

Front 1

3 ways to stay competitive in modern times

Back 1

1.design/development (reinvent)
2.technology
3.speed-get to mkt b4 comp.

Front 2

2 types of product design

-name and ex
-produce to (order, stock)?

Back 2

1.customized-produce to ORDER flower bouquet
2. standard-high V, STOCK, car

Front 3

4 product design affects

Back 3

QCSL (quit counting sheep lazy)

1. quality product
2. cost of production
3. customer Satisfaction
4. product life cycle

Front 4

3 types of research for product innovation

-name
-basic question/objective
-ex

Back 4

1.basic-WHAT-dna structure
2.applied-WHY-different uses of dna
3.product/service development-HOW-cure cancer

Front 5

product development stage: functional specifications

-3 things answered

Back 5

1.how products meets desired mkt and customer attributes
2.identifies engineering characteristics
3.prioritizes " "

Front 6

product development stage: Product specifications determines..

-how

Back 6

how product is made, ie dimensions and materials

-done by computer-aided-design

Front 7

3 group technology characteristics

Back 7

1. parts in families, standardize
2. coding system
3. manufacturing cells

Front 8

in the design review stage, how can you cut costs?

-name and ex.

Back 8

value engineering

-2 smaller parts for $1, or 1 bigger part for $.70...assembly labor and material costs cut!

Front 9

life cycle management uses __ analysis.

-name and def

Back 9

product by value analysis

-lists products in company value (h to l) based on unit order and price

Front 10

what are these-

1.competitive response
2. changes in mkt env.
3.insufficient ROI

Back 10

reasons for product failure

Front 11

during the design review stage, what question do i ask?

Back 11

how can i reduce the cost??

-use value engineering

Front 12

high V, innovative production is which phase of the life cycle?

Back 12

maturity phase

Front 13

3 location decision, in sequence

Back 13

1. country
2. region
3. site

Front 14

considerations when selecting region (4)

Back 14

1.corporate decisions
2. costs and avail. of utilities
3.gov't incent
4.land/construction costs

Front 15

considerations when selecting site (4)

Back 15

1.size/cost
2.zoning
3.nearness to suppliers
4.envir. impact issues

Front 16

labor cost per unit equation

Back 16

labor cost per day / units made per day

Front 17

4 factors affecting location decision

Back 17

PLAT (please locate accessible toilets)

1.proximity
2.labor
3.avail. amentities
4.transportation

Front 18

for a 1.service 2.manufacturing facitility, location selection should be based on ___.

Back 18

1. service=maximizing rev
2.manu=minimizing costs

Front 19

objectives of layout design (4)

Back 19

S,U,FE,S

1.customer satis.
2.utilization of space, equip, materials, ppl
3.efficient flow
4.employee morale/safety

Front 20

what determines what type of LAYOUT to use?

Back 20

PROCESS STRATEGIES

Front 21

main objective of process-oriented layout

-mainly deals with (L,H) volume and (L,H) variety
-ex

Back 21

minimize the cost of material handling

-L volume, H variety

ex./think hospital D example of surgery packages. least amount of inventory, high variety of package options

Front 22

6 layout types

-name
-main objective of each
-ex

Back 22

1.fixed position=stationary project-ex. highway constr.
2.process-oriented=large flow of departmental travel materials/ppl-ex./hospital
*cellular layout- temporary, move machinery arrangement
3.office-max. flow of info.-ex./insurance company
4.retail/service layout-exposure to customer, maximize space profitability ex./hy-vee
5. warehouse-balances space utilization and handling cost-ex./walmart
6.product-oriented-organized around product, minimized line imbalance ex./assembly line of brewery

Front 23

cross-docking

-define
-why useful

Back 23

-transfer good from truck to truck

-avoids placing goods into storage

Front 24

2 main objectives of assembly line balancing

Back 24

1.maximize efficiency
2.minimize work stations

Front 25

equations and their definition

1.cycle time
2.min. # WS
3.efficiency

Back 25

1. cycle time=prod'n time/demand rate
-determines maximum number in each WS box
2. min. # WS= prod'n time/ cycle time
-determines theoretical # of WS given 100% efficiency
3. total task time/(actual #WS * largest assigned cycle time)

Front 26

advantages of assembly line (4)

Back 26

1. low var. cost per unit
2. low material handling
3. reduced WIP inventories
4. easier training/supervision

Front 27

inventory

-def (2 things)
-purposes(4)
-two types of inventory systems

Back 27

1.stock of material, stored capacity
2. 1meet demand, 2quantity discounts, 3protect against shortages and inflation, 4decouple prod'n and dist'n
3.fixed order quantity system & fixed order period system

Front 28

why is inventory difficult to control?

Back 28

variability due to demand, prd'n, logistics factors

Front 29

2 types of inventory systems

Back 29

1.fixed order quantity system aka 2 bin system-a trigger point of when you place order

2.fixed order period system- reviews inventory at fixed time interval and orders enough to satisfy predetermined level. ex./hyvee shelves

Front 30

ABC classification

-purpose

%ages of $ Vol of each

Back 30

-purpose is to determine which items in inventory should be monitored with most intensity

all ~
A: 75% of $ sales
B: 20% of $ sales
C: 5% of $ sales

Front 31

can EOQ have price quantity discounts?

Back 31

NO!

Front 32

EOQ model equations

1. expected number orders, N
2. expected time between orders, T
3. demand per day, d

Back 32

N= D/Q*

T= #working days per year/N

d= D/#working days per year

Front 33

which usually has a lower holding cost, EOQ or POQ

Back 33

POQ, because you are producing and manuf'g

Front 34

how do you determine the ORDER QUANTITY of a fixed order period system?

Back 34

order quantity=upper inventory target - current inventory + EDDLT

Front 35

newsvendor problem steps (3)

Back 35

1. find S.L.
2. look up S.L within Z chart to get Z
3. M + Z(st.dev) = optimal stock level

note: subtract optimal level-M to get excess number to order

Front 36

EOQ vs. POQ difference

Back 36

the POQ does not require the assumption of instantaneous delivery

Front 37

2 types of short term scheduling

define and ex.

Back 37

1.forward scheduling- push system-ex./calculator prod'n
2. backward " - pull-ex./ personalized sweatshirt prod'n

Front 38

3 factors to consider when choosing a scheduling method

Back 38

1. qualitative factors (#/variety of jobs)
2.quantitative factors (utilization)
3. process method used (process-focused vs. product-focused)

Front 39

shop loading

-define
-2 approaches

Back 39

1. assigning jobs to work centers
-considering due date, capacities
2. gantt chart, assignment methods

Front 40

objective of assignment methods

Back 40

minimize cost, time, etc

Front 41

6 sequencing rules

-name and ex. of when to use them

Back 41

1. FCFS - ex./restaurants, bc fairness
2. SPT - BEST to minimize flow time, ex./ ST relations
3. LPT - BEST when biggest orders are best customers
4. EDD - widely used, prioritize by due date
5. johnson's rule - when >1 process machine
6. CR - performs well on avg. lateness

Front 42

sequencing equations

1. avg. # jobs in system
2. avg. completion time
3. utilization
4. avg. job lateness
5. CR ratio

Back 42

1. avg. # jobs in system=FT/PT
2. avg. completion time= FT/#jobs
3. utilization=PT/FT
4. avg. job lateness= #late days/#jobs
5. CR ratio = (due-today)/ workdays needed or remaining to complete job

Front 43

which sequencing rule is generally best for...

1. minimizing avg. completion time
2. minimizing total late days
3. maintaining fair reputation
4. minimizing WIP inventory (avg. # jobs in system)
5. minimizing average lateness

Back 43

1. SPT
2. EDD
3. FCFS
4. SPT
5. CR

Front 44

constraints

-2 types (name, ex)
-techniques to alleviate bottleneck/constraints

Back 44

1. physical-raw materials & non-physical- training
2. increase capacity of constraint, alt. routing, schedule throughput to match the capacity of the bottleneck

Front 45

bullwhip effect

-define
-analogy

Back 45

demand variability increases as you move up the supple chain from customers towards supply

-like telephone, demand is more un-forcastable

Front 46

causes of the bullwhip effect (7)

Back 46

1.order synchronization- ex./ all customers order on 1st monday of month
2.*order batching- ordering more to take advantage of full truck economies
3.trade promotions and forward buying-i.e. quantity discounts => built stock
4. over reaction to backlogs
5.*shortage gaming-buying more bc of shortage rumors
6.*compensation system
7.*poor communication

Front 47

phantom orders

Back 47

-cause of the bullwhip effect, shortage gaming

def: orders that are likely to be canceled, mostly ever ordered due to 'in-case' scenarios

Front 48

strategies to combat bullwhip (4)

Back 48

1.*info sharing-collaborative forecasting
2.smooth product flow-more frequent orders
3.*eliminate pathological incentives - have low price every day
4.VMI

Front 49

what is the goal of each layout design-

1.process-oriented
2.office
3.retail
4.warehouse
5.product-oriented

Back 49

(#s off)
2.process-oriented=large flow of departmental travel materials/ppl-ex./hospital
3.office-max. flow of info.-ex./insurance company
4.retail/service layout-exposure to customer, maximize space profitability ex./hy-vee
5. warehouse-balances space utilization and handling cost-ex./walmart
6.product-oriented-organized around product, minimized line imbalance ex./assembly line of brewery