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19 Cards in this Set
- Front
- Back
Understand four options in location decisions
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1. expanding an existing facility
2. adding new locations 3. shutting down a one location and moving to new locations 4. doing nothing |
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Distinguish factors considered in location decision for
manufacturing and services |
-decide on the criteria to use for evaluating location alternatives
-identify important factors, such as location of markets or raw materials -develop location alternatives -evaluate the alternatives and make a decision |
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Familiar with the definition and computation of the
following three methods: center of gravity, cost-volume analysis, factor rating |
1. location cost-profit volume analysis (technique for evaluating location choices in economic terms)
(indicates the ranges over which one of the alternatives is superior to the others)-determine the prices fixed and var, plot the TC on same graph, determine lowest TC for lvl of output 2. Center of Gravity Method (method for locating a distribution center that minimizes distribution costs) -treats distribution costs as linear functions of the distance and the quantity shipped -the quan to be shipped to each destination is assumed to be fixed -the method includes the use of a map that shows the locations of destinations. The map must be accurate and drawn to scale. -a coordinate system is overlaid on the map to determine relative locations 3. Factor Rating (general approach to evaluating locations that includes quantitative and qualitative inputs) -determine factors that are relevant -assign a weight to each factor that indicates its relative importance compared with all other factors |
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Distinguish the components of total costs related to
quality management |
appraisal-cost of measuring testing and analyzing
prevention-costs incurred during product design internal failure-includes scrap, rework, process failure, downtime and price reductions external failure-includes complaints, returns, warranty claims, liability, and lost sales |
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The purpose of each control chart (mean chart, Range
chart, p-chart and c-chart) |
Mean Chart-is to control the cental tendency of the process
Range Chart-is to control the dispersion of the process P-Chart-control chart for attributes, used to monitor the proportion of defective items in a process C-Chart-control chart for attributes, used to monitor the number of defects per unit. |
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The purpose of statistical process control
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-the natural variation of a process should be small enough to produce products that meet the standards required
-a process in statistical control does not necessarily meet the design specifications -process capability is a measure fo the relationship between the natural variation of the process and the design specifications |
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Distinguish “in control” and “conform to specifications”
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Capability analysis: is the determination of whether the variability inherent in the output of a process that is in control falls within the acceptable range of variability allowed by the design specifications for the process output.
Specification: a range of acceptable values established by engineering design or customer requirements a prcess in statistical control does not necessarily meet the design specifications |
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Understand the importance of variation reduction in
quality control |
lessening variation allows companies to get closer to six sigma
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Understand the definition of waste
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Waste
Any activity that does not contribute to the value of the product being produced or service being delivery. Waste • Inventory • Overproduction • Processing waste • Waiting time • Unnecessary transporting • Inefficient work methods • Product defects |
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Understand the concept of Bullwhip effect, supply
chain |
supply chain-the sequence of organizations - their facilities, functions, and activities - that are
involved in producing and delivering a product or service Bullwhip Effect Inventory oscillations become progressively larger looking backward through the supply chain Supply Chain Management (SCM) The strategic coordination of business functions within a business organization and throughout its supply chain for the purpose of integrating supply and demand management Goal of SCM to match supply to demand as effectively and efficiently as possible Flow Management: ▫ Product and service flow ▫ Information flow ▫ Financial flow |
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Understand benefit of effective SCM, out-source
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Creating an Effective Supply Chain
16 g pp y Trust Effective Communication Global Supply Chain • Complexity: Language and cultural differences; Currency fluctuations; Armed conflicts; Increased transportation costs and lead times; The increased need for trust and cooperation • Advantages: Lower labor and material cost; Technological advances in global communications Information Velocity Supply Chain Visibility Event Management Capability Performance Metrics |
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Calculation with the EOQ model and its
assumptions of applying it |
definition: economic order quantity is the order size that minimizes total annual cost
asumptions: only one product involved demand is known, constant, and ind lead time in known and constant receipt fo inventory is instantaneous and complete, each order received in a single delivery quantity discounts are not possible |
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Two basic decisions in inventory
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timing of orders
the size of orders |
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Distinguish dependent demand items and
independent demand items |
independent demand items- ready to be sold or used
dependent demand items-components of finished products |
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The objective of inventory management
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goal is to achieve satisfactory levels of customer service while keeping inventory costs within reasonable bounds.
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The effectiveness of a schedule sequence
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objectives: to achieve trade-offs among conflicting goals
effective scheduling=cost savings/productivity increasing |
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The definition of each sequencing priority, get the
sequence and calculate performance measures by using sequencing priorities, and discuss advantages and disadvantages of each rule |
sequencing: specifies order jobs will be worked
1. First come first served-the first job to arrive at a work center is processed first advantages-wide application in service time, inherent fairness, inability to obtain realistic estimates of processing time, simple limitations-delay due to long jobs/increase idle time 2.Shortest Procesing Time-the job with the shortest processing time is processed first. advantages-always the lowest optimal average completion time and lower in process inventories often the lowest average tardiness lower average number of jobs less congestion minimizes downstream idle time limitations- doesn't incorporate due date longer jobs wait longer times 3.Earliest due date-the job with the earliest due date is processed first advantages-addresses due dates and try to minimize lateness limitation-does not take processing time into account, longer wait, larger in process inventories, and shop congestion |
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Understand line balance
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high volume system (flow system)
features: 1.standardized equipment and activities 2. identical or highly similar operations on customers or products decision-line balancing goal- smooth rate of material flow high utilization of equipment and personnel high possible rate of output |
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Find the sequence for n job in two machines and
calculate makespan and idle time |
works with two or more jobs that pass through the same two machines or work centers
minimizes total production time and idle time johnson's rule minimizes the makespan for a group of jobs minimizes idle time |