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51 Cards in this Set

  • Front
  • Back
smart factories
web-based computer-aided design drawings, lots of smart technologies
what's in the box
smart tags and special container satellite transmitter allow every item being shipped to be monitored by buyers
unloading zones
containers taken by robots
lonely road
trucks travel in pods with a single human driver commanidng them w/ remote control
have it your way
each unit tailored to local tastes
main street chain store
regional experience.. designed to attarct shoppers ho are nostalgic for mom-and-pop retaling
personalized recomenendations
shipping carts detect RFID tags to identy products placed within
sign here please
shopng cart beams the merchandise total to a transcation station, and stustomer signs the screen to pay
doign soemethign at the lowest posible cost
doing the right htings to create the most value for the company
transformation proces
uses resrouces to convert inputs into some desire outputs-->physical, location,, exchange, storage, physiological, informational
strategy breaks down into 3 major components
operations effectiveness, customer mgmt, product innovation
operations strategy is concerned with
setting broad policies and plans for using the resouces of a firm to best support its long-term competitive strategy
design quality
set of feature the product of service contains-->focus on requierements of customer
process quality
relates to reliability of product or service -->delivery speed, reliability, coping w/ changes in demand/change volume ; flexilbilyty and new-product inroduction speed.; support it
plant-within-a plant
different locations within the faciity are allocated to different product lines, each with own operations strategy,
when company seeks to match the benefits of a successful position while maintaingin its existing position
order winner
criterion that differentiates the products/service of one firm from another....could be cost or quality or reliqabilty
order qualifier
screengin criterion that permits a firm's products ot even be considered as possible candidate of rpurchase
strategic competencis
strategic skills and knoweldge required by the workforce to support the strategy
strategic technologies
materials and process technologies, information systems, databases, etc.
climate for action
provide the cultural shifts needed to motivate, empower, and alight the workforce behind the strategy
work in process-number of flow units contained within th eprocess
flow time
time it takes a flow unit to get through the process -->takes into account that the item (flow units) may have to wait to be processed b/c there are other inventory in process potentially competing for the same resources
flow rate/ throughput rate
rate at which the process is delivering output-->maximum=capacity.
average inventory= (little's law)
average flow rate x average flow time
little's law-> flow time=
inventory/flow rate
inventory turns=
1/ flow time or COGS/inveontory
per-unit inventory costs=
annual inventory costs/ annual inventory turns
five reasons to hold invneotry
1.time a flow unit spents in prcoess
2. seasonal demand
3. economies of scale
4. separation of steps in a processs
5. stochastic demand
pipeline inventory
even w/ unlimited resources, unit must go through the length of the criticl path; only way to reduce inventory is by reducing flow rate
seasonl inventory occurs when
capacity is rigid and demand is variable ; as long as its costly to add and subtract capacity-firms will desire to smooth production relative to sales->need for seasonal inventory
cycle inventory
reflects the transportation process follows a certain shipemnt cycle (cycle every week)
diff. b/t seasonal and cycle inventory
seasonal is due to emporary imbalances in supply and demand due to variable demand or variable supply while cycle inventory is created due to a cost motivation
inventory buffer allows
mgmt to operate steps independently from each other->abosorbs variations in flow rates by acting as a source of supply for a downstream process step, even if the previous operation itself might not be able to create this supply at the given moment in time
safety inventory-stochastic demand
when facing stochastic demand (need to distingusih b/t predicted and actually realized demnand-->can be present w/ seasonal)-->signifcant problem in retailin environements or at the finishe good's level of manufacutrers
process capacity
how much can it process in a given unit of time
if demand is lower than supply-process would produce at the rate of demand, independent of the proces capacity
if demand exceeds supply==>process is either input-contrained or capacity-contrained.
process utilization =
flowrate/ process capcity
utilization of resources=
-flow rate/ capacity of resource
-bottleneck =highest utilization
-goal should be to maximize profit, not utilization
implied uitilization=
capacity requested by demand/ available capacity
-can exceed 100%
-captures the mismatch b/t b/t the capacity requested from a resource by demand (also called the workload) and the capacity currently available at the resource.
-if exceed 100%, doesn' mean it's the bottleneck. -->highest implied=bottle neck
product mix
different types of customers flowing thorugh one process-complicates the process analysis
-can determine which resource is the bottleneck
finite population
limistied-size customer pool that will use the service and , at times, form a line.
infininte population
large enough in realtionto the serivce system so that the populiation size caused by subtractionrs or additions doesn't significantly affect the sysetm probabilities.
single arrival
just one unit goign through
batch arrival
multiple of unit ariving (case of eggs)
patient arrival
one who waits as long as necessary until the service faility is ready to serve him or her
impatient arrivals
members of the first class arrive, survey both the service faility and the length of the line, then decide to leave=balking
-vew sitution, wait, than leave=reneging
line length
-infiite line-one that is very long
-limited line capacity-caused by legal/physical constraints.
number of lines
multiple lines-refers tot he single lines that form in front of 2 or more servers or to single lines that oconverge at some central redistribution point