Use LEFT and RIGHT arrow keys to navigate between flashcards;
Use UP and DOWN arrow keys to flip the card;
H to show hint;
A reads text to speech;
91 Cards in this Set
- Front
- Back
|
The process where you do everything from raw materials to finished goods |
Make to Order (MTO) |
|
|
When you outsource certain steps of the process and finish the good yourself |
Assemble To Order (ATO) |
|
|
When you outsource every step of production and sell the product |
Make To Stock (MTS) |
|
|
When you accept more orders than you can deliver |
Customer Order Promising |
|
|
The Slowest Workstation in the process |
Bottleneck |
|
|
The time between two consecutive customer orders being completed |
Cycle time |
|
|
The maximum production output in a period |
Capacity |
|
|
The time to produce an order |
Processing Time |
|
|
Processing time + Delays (Total Time for 1 Order) |
Throughput time |
|
|
The design, operation, and improvement of the systems that create and deliver goods and services |
Operation and Supply Chain Management |
|
|
Manufacturing and Service processes that use an organizations resources to TRANSFORM INPUTS TO OUTPUTS |
Operations |
|
|
Processes that move information to and from the operation processes where transformation occurs |
Supply Chain Management |
|
|
group of people from different departments with different functional expertise working toward a common goal. |
Cross Functional Integration |
|
|
The Triple Bottom Line Consists of: |
1) profit (efficiency in OPMA) 2) people (suppliers in OPMA) 3) planet (logistics in OPMA) |
|
|
These 2 thing have changed the world of OPMA |
1) Advances in technology: information, manufacturing, and distribution technologies 2) Linking customer and suppliers through independent organizations |
|
|
85% of the Boeing 787 is being built outside of major production facilities. Some components were too large to ship though. How did they fix this? |
With a Boeing 747 Dreamlifter, huge plane that has the tail swing open for huge payloads |
|
|
Name 4 reasons why boeing outsources their material |
1) Time-To-Market: (speed) since lacking internal engineering talent 2) Materials: composed of 50% composite material which they cannot produce 3) Employees gain international knowledge 4) To secure international sales |
|
|
Why do Canadian Organizations compete in a global marketplace? |
The affects of not being globally competitive include job losses, recession, and lower standard of living for Canadians |
|
|
Name 2 things Henry Ford did to change Operations |
1) Doubles worker wages which attracted the best workers and reduced employee turnover 2) Cut work week from six days to five which was adopted |
|
|
4 Contributions Operation Management Gave to Society |
1) Higher Standard of Living 2) Better Quality Goods and services 3) Sustainable Growth 4) Improved Working Conditions |
|
|
For Manufacturing Operations, describe Tangibility of a Product, Inventory of Output, Customer Interaction, Market Scope, and Quality Measurement |
Tangibility of a Product: easy to see, measure Inventory of Output: Shelf Excess and Build in Advance Customer Interaction: little interaction, recruit staff with technical skills Market Scope: global and centralized Quality Measurement: objective- meets requirements |
|
|
For SERVICE Operations, describe Tangibility of a Product, Inventory of Output, Customer Interaction, Market Scope, and Quality Measurement |
Tangibility of a Product: complex to see and measure Inventory of Output: scheduling and forecasting Customer Interaction: high, recruit staff with people skills Market Scope: local- respond to local market Quality Measurement: subjective - personal opinion |
|
|
How did Dofasco shift their operations from Low-Cost Standard to High-Margin Specialized |
Equipment: New and improved flexible equipment Procedures: sales process more complex, customer relationships, Cross-Functional Collaboration, Quality Focus Inventory: Make-To-order = no finished goods inventory Employees: Shift from unskilled to skilled, employee retention now important |
|
|
the development of a long term plan for determining how to best utilize major resources of the firm so that there is high compatibility between resources and corporate strategy: |
Operations Strategy |
|
|
Value = |
Quality, Delivery, Flexibility, Service ______________________________________ Cost - to increase value, decrease cost or increase Q,D,F,S |
|
|
Name the 5 Competitive Priorities |
1) Cost 2) Quality 3) Delivery: fast & reliable delivery 4) Flexibility: wide product/ service offering 5) Service: provide additional value ontop of product/ service |
|
|
Features of the product or service (performance) is known as |
Product Quality |
|
|
Delivering the Product Consistently Defect Free (conformance) is known as |
Process Quality |
|
|
Competitive Priorities have shifted from Price to: |
Service |
|
|
Name the 5 Operations Tangible Decision Areas: |
1) Capacity: how much? 2) Distribution: expensive or cheap? 3) Facilities: How many, where? 4) Process Technology: How Advanced? 5) Vertical Integration: make or buy? |
|
|
Name the 5 Operations Intangible Decision Areas: |
1) Human Resources: How many? What Skills? What Training? 2) Research and Development: invest heavily or follow others? 3) Organizational Structure: Centralized (control) or decentralized (flexiiblity) 4) Planning and Control: Build to Stock or Make to Order 5) Supplier Relationships: Long term or Short Term |
|
|
Name 3 future Competitive Priorities |
1) Environmental 2) Corporate Social Responsibility 3) Information Access (order tracking) |
|
|
Characteristics that distinguish it from its competition so that it is selected as the source of purchase (upside of choosing it) |
Order Winner |
|
|
Minimum characteristics for it to be considered as a source of purchase (downside of choosing it) |
Order Qualifier |
|
|
Identify the 4 Steps in Risk Management Framework: |
1) Identify sources of possible risk 2) Assess the potential risk (probability*impact) 3) Develop plans to mitigate risk 4) Develop Contingency plans |
|
|
Lasik Vision Initially failed because: |
They tried to standardize. Order Winners: Cost, Delivery Order Qualifiers: Quality |
|
|
The two broad categories of projects are: |
1) Conventional (Low-Tech): repetitive projects, tested methods are preferred (home construction, oil drilling) 2) Innovative (High-Tech): unique projects, change is normal, flexible plans (unique buildings, worlds tallest tower) |
|
|
Name the 4 steps in the Project Life Cycle |
1) Identify a Need 2) Develop a Proposed Solution 3) Perform the Project (most effort and money in this stage) 4) Terminate the Project |
|
|
The 3 parts of the Project Management Triangle are: |
1) Schedule 2) Cost 3) Scope (work that needs to be done) - a project change in one area will impact the others |
|
|
The amount paid to avoid risk is known as the: |
risk premium |
|
|
Hieraechial breakdown of what is to be accomplished during the project, including planning, scheduling, and control is known as: |
Work Breakdown Structure (WBS) |
|
|
3 Requirements of a WBS are: |
1) Grouping of activities must be logical and relevant 2) Work is done at lowest level (completing everything under a heading means the heading is complete 3) Do not break a heading down into 1 activity |
|
|
An activity that limits other activities being done is known as the |
successor |
|
|
Activity D cannot begin until activities B and C are done. B and C are known as the |
Immediate Predecessors |
|
|
Sequence of activities that require the longest total time from start to finish |
Critical Path |
|
|
Activities along the critical path. If any of these are delayed, the whole project is delayed. Consider adding additional Resources to these activities |
Critical Activities |
|
|
Slack = |
Latest Start - Earliest Start OR Earliest Finish - Latest Finish |
|
|
Strengths of CPM |
1) Allows project manager to allocate resources more productively 2) Calculates completion dates and slack times |
|
|
Weaknesses of CPM |
1) Task times are deterministic 2) No indication of risk of project |
|
|
CPM should only be used for projects that: |
1) Are repetitive 2) Have reliable time estimates 3) Have fixed and feasible completion dates |
|
|
The difference between CPM and Program evaluation and Review are: |
1) activity duration is a random variable (probablistic) 2) each task has 3 time estimates: A (optimistic), B ( Pessimistic), M (most likely) |
|
|
Strengths of PERT Are: |
1) can be used to estimate chance of the project being completed |
|
|
Weaknesses of PERT: |
1) eliciting data 2) use of statistics 3) assumes independence of durations of different activities 4) Completion time probability only considers longest path |
|
|
Expiditing tasks in order to reduce project completion time and overall project costs is known as |
Project Crashing |
|
|
To find resource constraints: |
1) find activities that have slack/overloaded and move them around. 2) Increase capacity 3) extend due date |
|
|
What is the difference between the critical path and critical chain? |
Critical Path assumes unlimited resources while the Critical Chain includes resource constraints. |
|
|
Name the steps for project crashing |
1) Find the Critical Path 2) Determine total direct costs and project duration 3) Crash the cheapest critical activity 4) Crash the next cheapest 5) repeat until net benefit is no longer positive (marginal costs of expediting exceed the savings in the project indirect costs) |
|
|
NEW STUFF |
NEW STUFF |
|
|
Name the 7 effective product design techniques |
1) Know your customer requirements and design to those 2) Concurrent Engineering: team approach to design 3) Design for Manufacturability (standardized parts to make it easy to assemble) 4) Consider Handling/Shipping: Ikea Mug designs for stacking and new milk cartons 5) Consider Reuse, Recycling, and Disposal: Xerox making their products easy to disassemble and using the same plastics for reuse 6) prototypes (rapid prototyping with 3D CAD files) 7) Design to target cost (Selling Price established by market and working around that price) |
|
|
The creation of products from a combination of basic, pre existing subsystems (customizable) |
Modular Design |
|
|
The components required for a FINISHED PRODUCT |
Bill of Materials |
|
|
The processing instructions for a FINISHED PRODUCT |
Routing |
|
|
The product process with low volume, customized, one of a kind (movie production) |
Project |
|
|
The product process with multiple products, low volume (printing shop or eye glasses) |
Job Shop |
|
|
The product process with few major products, high volumes (fast food) |
Batch |
|
|
Product process with high volume, high standardization, commodity products |
Assembly Line |
|
|
What happens if a company moves off the diagonal product-process matrix |
higher costs, either variable or fixed |
|
|
What are the 2 keys to make mass customization (mto/ato) happen? |
1) Order "configurator" website 2) modular components 3) Increasing work centre volume with sections that are teams (con is multiple equipment/resources) |
|
|
the design of services may me improved by learning from other services that share common attributes and challenges |
service process matrix |
|
|
Name 4 trends in services |
1) increase in self service 2) Decrease in importance of location (call centres) 3) Shift from time-dependent to non time dependent transactions 4) increase in disintermediation (no middle man) |
|
|
5 Things for Mass customization approach |
1) Layout: replace assembly lines with manufacturing cells 2) Employees: provide training, employee retention 3) Information Systems and Procedures: order configurator system 4) Inventory Management: getting rid of finished goods inventory 5) product design: concurrent engineering, modular design |
|
|
When the demand for various items are unrelated to each other |
Independent Demand |
|
|
These items are reordered with fixed timing and the quantity is varied (order up to level) |
Low cost Items |
|
|
These items are under continuous review, reorder with varied timing (when inv falls to reorder point) and the quantity reordered is fixed quantity |
High Cost Items |
|
|
Press a button everytime an item is taken |
Fast "usage" Recording |
|
|
Record the product in a software |
Backflushing |
|
|
Inventory Cost Components |
1) Item costs (C * Q) c is unit cost and Q is quantity 2) Setup (Replenishment) Costs (S): paperwork + setup time 3) Holding (carrying) costs (H): = i*C where i = % carrying cost per year |
|
|
How much to order under stable, known conditions is |
Economic Order Quantity (EOQ) |
|
|
EOQ balances these 2 costs |
1) Setup Costs (incentive to make large purchases) 2) Inventory Holding Costs (incentive to make small puchases) |
|
|
With the total cost line, |
you want to find the bottom of the parabola where slope = 0 |
|
|
Inventory Turnover = |
Annual Demand _________________ Average Inv. Level - more turns = more profit cycles |
|
|
_____ can dress the major weakness of EOQ |
safety stock |
|
|
If demand uncertainty increases safety stock should |
go up |
|
|
if supply uncertainty decreases safety stock should |
go down |
|
|
if stockout cost increases, safety stock should |
go up |
|
|
when customers are willing to wait to get your product it is called |
customer backlog |
|
|
how many units are on the shelf if we have backlog? |
None - we must ship all units to waiting customers |
|
|
Class A items make up the ______ of all items and represent 70-80% of total dollar usage |
top 15% |
|
|
Class B items make up the _____ of all items and represent 15-25% of total dollar usage |
next 35% |
|
|
Class C items make up the _____ of all items and make up only 5% annual dollar volume |
Last 50% |
|
|
The main benefit of ABC classification is |
it allows you to divide inventory into categories and allows appropriate controls and policies to be developed for each class |
