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121 Cards in this Set
- Front
- Back
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Sourcing Decision Factors |
contract duration, transaction costs, and specifity |
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The Bullwhip Effect |
The variability in Demand as we moe from the customer to the producer in the supply chain - to reduce this effect more clear communication with suppliers |
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Factor Rating System |
an approach for selecting a facility location by combining a diverse set of factors. Point scales develop for each criterion |
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Centroid Method |
a technique for locating single facilities, the distances between them, and the volume of goods to be shipped |
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Break Even |
total cost of each location |
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Reverse Logistics |
all activity associated with a product/service after the point of sale, the ultimate goal to optimize or make more efficient aftermarket activity, thus saving money and environmental resources |
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Work Breakdown Structure |
a hierarchical listing of what must be done during a project- can take substantial time and effort due to size- portion of the time spent organizing usually exceeds the actual project |
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Gannt Chart |
a popular visual tool for planning and scheduling simple projects and then monitoring progress over time by comparing actual progress to planned progress - fail to reveal certain relationships among activities that can be crucial to effective project management |
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PERT/CPM |
PERT is a program evaluation and review technique for LARGE projects- graphical display- estimate of how long the project will be- indicates how a project can be delayed- the slack in a path must be accounted for |
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Critical Path |
the longest path- determines expected project- |
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Specific time |
path mean/ standard deviation |
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crashing |
shortening activity durations - easy way to do this is increasing your expense- one at a time starting with the least expensive first - when theres more than one, find the sum of the least expensive activity |
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physical transformation |
manufacturing |
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locational transformation |
movement/storage |
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exchange transformation |
retail stores, physical or online |
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psychological transformation |
entertainment |
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informational transformation |
communication |
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Business Strategies |
low cost, responsiveness, and diversification |
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Saturation stage |
having too much product for demand |
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order qualifiers |
min standard for potential purpose |
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order winners |
better than the comeptitors |
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it is harder to measure productivity for ____ because its an intellectual activity and ppl think in different ways |
services |
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technology push |
technology will push the development |
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platform products |
built around a preexisiting technology subsystem |
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process intensive products |
product design and production process design go together |
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customized products |
setting values of design variables |
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high risk products |
addresses largest risks in early stages of product development |
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quick build products |
design build test cycle is repeated many times |
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complex systems |
address a number of system level issues |
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service experience fit |
service should fit into the current service experience for the customer- photographers at disneyland |
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operational fit |
operational support to execute, same skill set available |
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financial impact |
new service is costly and should be financially jusitified |
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complexity |
the number of steps involved in a service and possible actions that can be taken at each step |
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divergence |
the number of ways a customer/service interaction can vary at each step according to the needs or abilities of each |
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SIPOC |
suppliers, inputs, process, outputs, customers |
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process flowchart |
shows the operations of your business as well as how you interact with your customers |
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oval on process flow |
start/end point |
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square on process flow |
task/operation |
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diamond on process flowchart |
decision point |
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--> on process flowchart |
flow of materials |
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---- on process flowchart |
line of visibility |
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efficiency |
actual output/efficient capacity |
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productivity |
output/input |
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utilization |
actual output/design capacity |
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how to reduce process flow time |
perform activities in parallel, change sequence of activities, and reduce interruptions |
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customer order decoupling point |
a key concept in manufacturing which determines where inventory is positioned to allow processes or entities in the supply chain to operate independently - inv. acts as a buffer |
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3 basic steps of manufacturing process |
sourcing the parts we need, making the item, sending the item to the customer |
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ways to organize production processes |
project (construction site), work centers (similar functions are performed in one area), assembly line (sequence of work stations), and continuous process (raw materials to finish goods in 1 process) |
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_____ is the focal point of all decisions or actions |
customers |
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services cannot be placed in inventory for later use |
true |
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true |
process is the product |
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service is not a _____ item |
tangible |
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supporting facility |
physical resource that must be in place before a service is performed |
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facilitating goods |
material purchased by the buyer or the items provided to the customer |
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information |
data provided by the customer |
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explicit service |
benefits that are observable by the sense |
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implicit services |
psychological benefits the customer may sense only vaguely |
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mail contact |
low sales opportunity, high production efficiency |
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face to face customization |
high sales opportunity, low production efficiency |
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5 basic types of variability |
arrival (late or early), request (special request), capability (ability to communicate), effort (customers not returning their things to the right place), subjective preference (way people are addressed) |
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4 ways to deal with variability |
classic, low cost, classic reduction (lowering expectation), uncompromised |
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3 customer perceptions |
flow of the service experience, flow of time, and encountered performance |
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how to design the service encounter |
1) front and back end are not created equal 2)segment pleasure, combine pain 3)let the customer control the process 4)pay attention to norms 5)people are easier to blame than systems 6)let the punishment fit the crime |
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3 types of service designs |
1) product line approach 2)self service approach 3) the personal attention approach |
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characteristics of a well designed service system |
consistency with operating focus, user friendly, robust, consistent performance easily maintained, effective links between back and front office, managers evidence of service quality well, cost effective |
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capacity |
upper limit or ceiling on the load that an operating unit can handle |
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goal of capacity |
achieve a match between the long term supply capabilities of an org and the predicted level of long term demand |
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over capacity |
operating costs are too high |
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under capacity |
strained resources and possible loss of customers |
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effective capacity |
the design capacity minus personal and other allowances |
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long term considerations for capacity |
forecasting demand over time - and converting the needs into capacity requirements |
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short term considerations for capacity |
probably relate to variation in capacity requirements |
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yield management is appropriate when |
service can be sold in advance, demand fluctuates, resource is fixed, demand can be segmented, variable costs are low and fixed costs are high |
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aggregate planning |
intermediate range capacity planning- usually covering 2-12 months- useful for seasonal fluctuations in demand |
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Chase Demand |
matching capacity to demand; the planned output for a period is set at the expected demand for that period- investment in inventory is low and labor utilization is high- the cost of adjusting output rates and work force levels |
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level output |
maintaining a steady rate of regular time output while meeting variations in demand by a combination of options - stable output rates and workforce but greater inventory cost |
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quality of a product |
performance, aesthetics (appearance feel), special feature, conformance, reliability, durability, perceived quality, serviceability |
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dimensions of quality for service |
convenience, reliability, responsiveness, time, assurance, courtesy, tangibles, and consistency |
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what quality is relevant for services and goods? |
reliability |
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consequences of poor quality |
loss of business, liability, productivity, costs |
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appraisal costs |
costs related to measuring, evaluating, and auditing materials, parts, products, and services to assess conformance with quality standards (ex is testing, inspecting) |
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prevention costs |
examples- training, monitoring, data collection |
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internal failure costs |
costs related to defective products or services before they are delivered to the customers |
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external failure costs |
returned goods, reworking costs, warranties, loss of goodwill |
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benchmarking |
process focused, industry focused |
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Total Quality Management |
a philosophy that involves everyone in an organization in a continual effort to improve quality and achieve customer satisfaction |
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lean system |
with no waste and no excess inventory |
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six sigma |
a business process for improving quality, reducing costs, and increasing customer satisfaction |
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acceptance sampling |
this is inspection before and after productions |
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process control |
this is inspection during production; his make sure inputs and outputs are proceeding in the correct manner |
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common cause variation |
natural variation in the output of a process, created by countless minor factors |
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assignable variation |
in a process output, a variation whose cause can be identified, non random- tool wear, adjusting equiptment, and defective material |
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why is statistical process control important for managers |
it can determine if a process is in control or if corrective action is needed |
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steps of effective process control |
define- measure- compare - evaluate- correct- monitor results |
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x bar charts |
tell us on average how our performance is |
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r bar charts |
tell us the range of our performance |
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p charts |
monitor the percentage of items defective in a sample |
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c charts |
count how often something happened- use only when the number of occurences per unit of measure can be counted- non occurences cannot be counted |
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run tests |
tests for non random investigate patters, they test a pattern in a sequence- running both control charts and tests together allow analysts to do a better job detecting abnormalities |
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process capability |
variability of process output relative to the variation allowed by design |
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Cp |
centered - a process is centered when the mean of the process output is at the target for the variable of interest, which is centered between the customers specifications |
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Cpk |
not centered |
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reliability |
the ability of a product, part, or system to perform its intended function under a prescribed set of conditions- dimension of qulity |
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how to increase reliability |
overdesign (higher quality materials), design simplification, build redundancy into design (back up plan) |
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systems reliability |
CR1 x CR2 |
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systems reliability when redundancy is included in a system |
(reliability of 1st component) + (reliability of 2nd component) x (1- relability of 1st component) |
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functions of inventory |
meet customer demand, smooth production, decouple operations, protect against stock outs, take advantage of order cycles, hedge against price increases, permit operations, take advantage of quantity discounts |
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littles law |
the average amount of inventory in a system is equal to the product of the average demand rate and the average time a unit is in a system |
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cost of fucntions of inventory |
holding costs |
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inventory |
typically a firm has 30% of its current assets and 90% of its working capital invest in inventory |
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dependent demand inventory |
those demand is determind by the production scheudle for finished products- components of finished products rather than acutal finials products |
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independent demand |
items that are ready to be sold for use |
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decouple |
to reduce the direct dependency of a process step on its predeccsor natural disasters, strikes or recalls can disrupt the continuous flow of goods |
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too much inventory |
high carrying costs |
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too little inventory |
stock out |
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reorder point |
when the quantity on hand of an item drops to this amount the item is reordered |
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EOQ- economic order quantity |
the order size that minimizes total annual costs that vary that size and order frequency- with discounts larder orders costs less per unit |
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Production Order Quantity |
batches |
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Periodic review system |
an independent demand management system that order inventory in fixed time intervals |
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ABC analysis |
classifies inventory items according to measure of importance and allocate control efforts accordingly- a being most important |
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two bin system |
two container of inventory- reorder when first is empty |
