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ISQS 3344 Exam 2
Stack #101867
| Question | Answer |
|---|---|
| Capacity (2 definitions) | Max output rate of a production or service facility/ Units of resource availibility |
| Capacity Planning | Proccess of establishing the output rate that may be needed at a facility |
| Theoretical Capacity | Maximum output rate under ideal conditions |
| Effective Capacity | Maximum output rate under normal (realistic) conditions |
| Capacity Utilization | Measure of how much of the availible capacity is actually being used. (actual output rate/capacity)*100% |
| Safety Capacity | An amount of capacity reserved for unanticipated events such as demand surges, material shortages and equiptment breakdowns |
| Average Safety Capacity (Formula) | 100%-Average Resource Utilization % |
| Best Operating Level | Output that results in the lowest average unit cost |
| Economics of Scale | Cost per unit drops as volume of output increases |
| Diseconomics of Scale | Cost per unit rises as volume increases |
| Focused Factory | A way to achieve Economics of Scale by focusing on a narrow range of goods/services without extensive investments in facilities and capacity |
| Process Layout | Equiptment is general purpose and inexpensive |
| Ways to manage Short Term C apacity (5) | Add or Share Equiptment, Sell Unused Capacity, Change Labor Capacity and scedules, Change labor skill mix, Shift work to slack periods |
| 4 Services that are most amenable to Revenue Management Systems (RMS)(also known as yield management) | Perishability, Segmented Markets, Advance Sales of the Service, High Fixed costs relative to variable costs. |
| Theory of Constraints | Set of Principles that focuses on increasing total process throughput by maximizing the utilization of all bottleneck work activities and work stations |
| Throughput | Amount of money generated per time period through actual sales |
| Constraint | Anything that limits an organization from moving towards or achieving its goal |
| Bottleneck Work activity | Effectively limits capacity of entire proccess |
| Non-Bottleneck work activity | Idle Capacity Exists |
| Physical constraint | Associated with the capacity of a resource |
| Non-Physical Constraint | Environmental or organizational policy or proceedure |
| "Traditional" or Cost World | Focuses on decreasing cost: Decreasing Overhead Expense is #1 priority, Increasing T ranks #2 |
| "Throughput" World | Increating Throughput is #1 priority, Decreasing the incentory portion of I is #2 |
| Lean/JIT Enterprise | Approaches that focus on the elimination of waste in all forms and the smooth efficient flow of materials and info through the value chain to obtain faster customer response (Just In Time) (First Developed by Toyota in mid 70's) |
| 5 Basic Lean Principles (Continuous) | Eliminating Waste, Increasing Speed and Response, Improving Quality, Reducing Cost, Maintaining Respect for ALL WORKERS |
| Waste | Anything that DOESN'T add value (includes: time, excess inventory and unneccessary material handling) |
| Reducing Inventory has what effect? | Exposes problems |
| Visual Controls | Indicators for operating activities that are placed in plain sight of all employees so that everyone can quickly understand the status and performance of the work system. |
| Examples of Visual Controls | Electronic scoreboards in production processes, employee pull cords to stop production, signal lights on machines and KANBAN CARDS |
| Push System | Produces finished goods in advance of customer demand by using FORECAST OF SALES |
| Pull System | Employees at a given operation (work station) go to the source of the required parts and withdraw the units as they need them. (Finished goods are made to coincide with ACTUAL RATE OF CUSTOMER DEMAND) |
| Kanban | Related to JIT production: Pull System-> Signals that indicate material needs of different levels of production |
| JIT Production | Intended to improve return on investment by minimizing 'in-process' Inventory: Driven by signals (KANBANS) that tell workers when to make the next part. |
| "Level" Schedule | Same mix of products is made everyday in small quantities as per customer requirements |
| Empowerment | Quality at the source |
| Continuous Improvement (JIT) | If its not perfect make it better |
| TQM | Total Quality Management: Management Approach centered on QUALITY of (Return to Stockholders, Products to consumers and Life of employees:Aiming at long-term success through customer satisfaction |
| Kaizen | "change for the better" or "improvement"; the common English usage is "continuous improvement" (Toyota Philosophy) |
| Jidoka | Autonomation: "Automation with a human touch": Prevents defective products and overproduction |
| 4 Principals of Jidoka | Detect Abnormality, Stop, Fix or Correct the immidiate contition, Investigate the root cause and develop a countermeasure |
| Poka-Yoke | "Fail-Safing"/ Mistake-Proofing: Focuses on making stupid mistakes impossible (Ex: You cannot remove key from ignition unless vehicle is in Park) |
| Priorities of Traditional Production | Accept all customer orders, many options |
| Priorities of JIT | Low cost/high quality within limited market |
| Capacity of Traditional Manufacturing | Excessive (accounts for potential problems), highly utilized, inflexible |
| Capacity of JIT Manufacturing | Minimize waste of having extra capacity, flexible, moderately utilized |
| Transformation System (Traditional) | Job Shop, Materials handling equiptment, lots of space to store inventory |
| Transformation System (JIT) | Mostly used in REPETITIVE PRODUCTION situations, job shops often converted to hybrid cellular manufaturing |
| Reasons for Transformation System | Smooth Work flows, Convert to mixed-model assembly, minimize lead times (shorter batch sizes & more accurate forcasts), employing kanban |
| JIT Hybrid Cellular Manufacturing | Product Focused cells, Flexible equiptment, high visibility, easy to schedule, short cycles |
| Job Shop (Traditional) Manufacturing | Jumbled Flows, Long Cycles, Difficult to Schedule |
| Product Layout | Designed to produce a SPECIFIC product efficiently |
| Hybrid Layouts | Conbine elements of both product and process layouts: Maintain some of the efficiencies of product layouts while simultaneously maintaining some of the flexibility of process layouts--> Uses GROUP TECHNOLOGY |
| Group Technology | Organizing Parts by the technology that makes them to achieve higher level of integration between the design and manufacturing functions. |
| Batch Flow | process an ENTIRE BATCH or lot at each operation before moving it to the next operation. |
| One Piece Flow | Concept of moving ONE WORKPIECE AT A TIME between operations in a workcell |
| Advantages of one piece flow | Eliminate Operations that customer is unwilling to pay for, decrease amount of product that costomer must stock, INCREASE JIT (flexibility, quality, lead times), Decrease need for WIP (decrese cost) |
| Traditional Workforce | Competitive attitude between workers and managers, status symbols and privilages given as rewards |
| JIT Workforce | Broadly skilled flexible workers, workteams, emphasis on COOPERATION |
| Traditional Scheduling | Long Setups and Runs, Computerized MRP system |
| MRP | Material Requirements Planning: software based production planning and inventory control system used to manage manufacturing processes. |
| JIT Scheduling | Manual Kanban System replaces computerized MRP, Quick changeovers, mixed-model runs |
| Traditional Inventories | Large WIP buffers, stockrooms |
| JOP Inventories | Small WIP buffers, Floor Stock only (no stockrooms) |
| Traditional Suppliers | Treated as adversaries, Multiple Sourcing |
| JIT Suppliers | Considered Part of the team, single-sourcing agreements, Co-located facilities (PARTNERSHIP) |
| Traditional Maintainance | Corrective, Done by experts, equiptment is run FAST |
| JIT Maintainance | Scheduled PREVENTATIVE maintainance, Total Productive Maintainance (TPM), equiptment is run SLOW |
| TPM | Total Productive Maintainance: Focused on ensuring that operating systems will perform their intended function RELIABLY by working to prevent equiptment failures and maximizing equiptment effectiveness through accurate prediction of failure rates |
| Benefits of JIT | Improved Quality, Lower Production costs, Increased Productivity, GREATER NET PROFIT |
| Potential Problems of JIT Implementation | Requires discipline, Based on Cooperation and trust, Requires change of philosophy (especially from mid-level managers) |
| Factors to Consider in Facility Location (3) | Proximity to Suppliers, Proximity to customers, Proximity to Labor |
| 3 Most important factors in Real Estate | LOCATION LOCATION LOCATION |
| Potential Advantages and Disadvantages of GLOBALIZATION | ADV: Cheap Labor, Avoid Trade Barriers:: DIS: Loss of control of proprietary technology, potential inadaquacy of local infastructure (roads and utilities) |
| Fixed-Condition Layout | Product is TOO LARGE to move (i.e. A building) |
| Aspects of Process Layouts | Higher worker Satisfaction, Higher Labor Costs, Lower Capital/Equiptment Costs, HIGHER Production #s (LABOR INTENSIVE) |
| Aspects of Product Layouts | Higher Capital/Equiptment Costs, Lower Labor Costs, LOWER production #s, Lower Flexibility (CAPITAL INTENSIVE) |
| Assembly Line Balancing | Technique to group tasks among workstations so that each station ideally has the same ammount of work. |
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derekabc123