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Exam 2 OM
Chap 5, 7, 7s
| Question | Answer |
|---|---|
| ____:electronically guided and controlled cart used to move materials | Automated guided vehicle (AGV): |
| ____:computer-controlled warehouses that provide automatic placement of parts into and from designated places within a warehouse | Automated storage and retrieval system (ASRS): Automated placement and withdrawal of parts and products Reduced errors and labor Particularly useful in inventory and test areas of manufacturing firms |
| ____:a system for transforming data into electronic form, for example, barcodes | Automatic identification system (AIS): |
| ____:produced to a customer order rather than to a forecast | Build-to-order (BTO): |
| ____:machinery with its own computer and memory | Computer numerical control (CNC): |
| ____:a manufacturing system in which CAD, FMS, inventory control, warehousing, and shipping are integrated | Computer-integrated manufacturing (CIM): |
| ____:a chart of costs at the possible volumes for more than one process | Crossover chart: |
| ____:the ability to respond with little penalty in time, cost, or customer value | Flexibility: |
| ____:a system that uses an automated work cell controlled by electronic signals from a common centralized computer facility | Flexible manufacturing system (FMS): |
| ____:a drawing used to analyze movement of people or material | Flow diagram: |
| ____:parts or components of a product previously prepared, often in continuous processes | Modules: |
| ____:charts that use symbols to analyze the movement of people or material | Process charts: |
| ____:the use of information technology to control a physical process | Process control: |
| ____:a production facility organized around processes to facilitate low-volume, high-variety production. Facilities are organized around specific activities or processes. | Process focus: General purpose equipment and skilled personnel.High degree of product flexibility.Typically high costs and low equipment utilization. Product flows may vary considerably making planning and scheduling a challenge |
| ____:the fundamental rethinking of business processes and bring about dramatic improvements in performance | Process redesign: |
| ____:an organization's approach to transforming resources into goods and services | Process strategy: The objective of a process strategy is to build a production process that meets customer requirements and product specifications within cost and other managerial constraints |
| ____:a facility organized around products; a product-oriented, high-volume, low-variety process | Product focus: Facilities are organized by product.High volume but low variety of products. Long, continuous production runs enable efficient processes.Typically high fixed cost but low variable cost.Generally less skilled labor. |
| ____:a product-oriented production process that uses modules | Repetitive process: Facilities often organized as assembly lines.Characterized by modules with parts and assemblies made previously.Modules may be combined for many output options. Less flexibility than process-focused facilities but more efficient |
| ____:a flexible machine with the ability to hold, move, or grab items. It functions through electronic impulses that activate motors and switches. | Robot: Perform monotonous or dangerous tasks Perform tasks requiring significant strength or endurance Generally enhanced consistency and accuracy |
| ____:a process analysis technique that lends itself to a focus on the customer and the provider's interaction with the customer | Service blueprinting: Focuses on the customer and provider interaction. Defines three levels of interaction. Each level has different management issues. Identifies potential failure points. |
| ____:a flow diagram with time added on the horizontal axis | Time-function mapping (process mapping): |
| ____:a process that helps managers understand how to add value in the flow of material and information through the production process | Value-stream mapping (VSM): |
| ____:systems that use video cameras and computer technology in inspection roles | Vision systems: |
| 4 basic Process Strategies: | 1) Process Focus 2) Repetitive Focus 3)Product Focus 4)Mass Customization process |
| 5 types of Process Analysis and Design: | 1)Flow Diagrams 2) Time-function mapping 3)Value-stream mapping 4)Process Charts 5)Service Blueprinting |
| 9 types of Production Technology: | 1)Machine Tech 2)Automatic ID Systems and RFID 3)Process Control 4)Vision Systems 5)Robots 6)Automated Storage and Retrieval Systems (ASRSs)7)Automated Guided Vehicles (AVGs)8)Flexible Manufacturing Systems (FMSs) 9)Computer-Integrated Manufacturing (CIM) |
| 4 Types of Sustainability: | A. Resources B. Recycling C. Regulations D. Reputation |
| ____:an extension of CAD that enables the analyst to visualize products better and contributes to building small prototypes | 3-D object modeling: |
| ____:cooperative agreements that allow firms to remain independent, but that pursue strategies consistent with their individual missions | Alliances: |
| ____:a graphic means of identifying how components flow into subassemblies and ultimately into a final product | Assembly chart: |
| ____:an exploded view of the product, usually via a three-dimensional or isometric drawing | Assembly drawing: Details relative locations to show how to assemble the product |
| ____:a listing of the components, their description, and the quantity of each required to make one unit of a product | Bill of material (BOM): |
| ____:interactive use of a computer to develop and document a product.Using computers to design products and prepare engineering documentation. | Computer-aided design (CAD): Shorter development cycles, improved accuracy, lower cost. Information and designs can be deployed worldwide. |
| ____:the use of information technology to control machinery | Computer-aided manufacturing (CAM): Utilizing specialized computers and program to control manufacturing equipment. Often driven by the CAD system (CAD/CAM) |
| ____:use of participating teams in design and engineering activities | Concurrent engineering: |
| ____:a system by which a product’s planned and changing components are accurately identified and for which control and accountability of change are maintained. The system helps with the complexity found in dynamic design environments. | Configuration management: The need to manage Engineering Change Notices (ECNs) has led to the development of configuration management systems. |
| ____:software that allows designers to look at the effect of design on manufacturing of the product | Design for manufacture and assembly (DFMA): |
| ____:a correction or modification of the engineering drawings or bill of material | Engineering change notice (ECN ) or Engineering Change Order (ECO): A correction or modification to a product’s definition or documentation.Quite common with long product life cycles, long manufacturing lead times, or rapidly changing technologies. |
| ____:a drawing that shows the dimensions, tolerances, materials, and finishes of a component | Engineering drawing: |
| ____:a product and component coding system that specifies the type of processing and the parameters of the processing; it allows similar products to be grouped | Group technology: Parts grouped into families with similar characteristics. Coding system describes processing and physical characteristics. Part families can be produced in dedicated manufacturing cells. |
| ____:a part of the quality function deployment process that utilizes a planning matrix to relate customer “wants” to the firm’s “hows” of meeting those “wants” | House of quality: |
| ____:Part of ISO 14000; assesses the environmental impact of a product from material and energy inputs to disposal and environmental releases | Life cycle assessment: |
| ____:the choice between producing a component or a service and purchasing it from an outside source | Make-or-buy decision: |
| ____:activities that help improve a product's design, production, maintainability, and use | Manufacturability and value engineering: |
| ____:a design in which parts or components of a product are subdivided into modules that are easily interchanged or replaced | Modular design: Products designed in easily segmented components.Adds flexibility to both production and marketing.Improved ability to satisfy customer requirements. |
| ____:the selection, definition, and design of products | Product decision: |
| ____:teams charged with moving from market requirements for a product to achieving product success | Product development teams: |
| ____:software programs that ties together many faces of product design and manufacture | Product life-cycle management (PLM): Integrated software that brings together most, if not all, elements of product design and manufacture: Product design CAD/CAM, DFMA Product routing Materials Assembly Environmental |
| ____:a listing of products in descending order (biggest to smallest) of their per unit dollar contribution to the firm, as well as the total annual dollar contribution of the product | Product-by-value analysis: |
| ____:a process for determining customer requirements (customer “wants”) and translating them into the attributes (the “how”) that each functional area can understand and act on | Quality function deployment (QFD): |
| ____:Product is designed so that small variations in production or assembly do not adversely affect the product. Typically results in lower cost and higher quality | Robust design: |
| ____:a listing of the operations necessary to produce a component with the material specified in the bill of materials | Route sheet: Lists the operations and times required to produce a component |
| ____:a standard that provides a format allowing the electronic transmittal of three-dimensional data | Standard for the exchange of product data (STEP): |
| ____:A production system that supports conservation and renewal of resources | Sustainability: |
| ____:competition based on time; rapidly developing products and moving them to market | Time-based competition: |
| ____:a review of successful products that takes place during the production process | Value analysis: Focuses on design improvement during production. Seeks improvements leading either to a better product or a product which can be produced more economically with less environmental impact. |
| ____:a visual form of communication in which images substitute for reality and typically allow the user to respond interactively | Virtual reality: Computer technology used to develop an interactive, 3-D model of a product from the basic CAD data. Allows people to ‘see’ the finished design before a physical model is built. Very effective in large-scale designs such as plant layout |
| ____:an instruction to make a given quantity of a particular item, usually to a given schedule | Work order: |
| 7 stages of House of Quality (Quality Function Deployment): i. What customer wants? ii. How product satisfies wants? iii. Which capabilities are linked to the wants? iv. Identify relationships among the org’s capabilities to find processes & solutions | v. Rank customer wants according to importance & link to the org’s capabilities vi. Evaluate the competition’s products vii. Determine best strategy to follow in light of customer needs and competitor strategy |
| 8 parts of Manufacturability and Value Engineering | 1. Cost reduction 2. Reduce product complexity 3. Reduce environmental impact 4. Standardize components 5. Improve product’s functionality 6. Improve job design and safety 7. Improve serviceability/maintainability 8. Insure robust design |
| The objective of the ___ is to develop and implement a product strategy that meets the demands of the marketplace with a competitive advantage | product decision |
| 3 Product Strategy Options | Differentiation Low cost Rapid response |
| Product Life Cycle-Introductory Phase | Fine tuning may warrant unusual expenses for: 1)Research 2)Product development 3)Process modification & enhancement 4)Supplier development |
| Product Life Cycle-Growth Phase | 1)Product design begins to stabilize 2)Effective forecasting of capacity becomes necessary 3)Adding or enhancing capacity may be necessary |
| Product Life Cycle-Maturity Phase | 1)Competitors now established 2)High volume, innovative production may be needed 3)Improved cost control, reduction in options, paring down of product line |
| Product Life Cycle-Decline Phase | Unless product makes a special contribution to the organization, must plan to terminate offering |
| 6 New Product Opportunities | 1)Understanding the customer 2)Economic change 3)Sociological and demographic change 4)Technological change 5)Political/legal change 6)Market practice, professional standards, suppliers, distributors |
| What is the 4 part House of Quality Sequence? (Deploying resources through the org in response to customer requirements) | House 1)Customer Requirements => Design Characteristics House 2)Design Characteristics => Specific Components House 3)Specific Components => Production Process House 4)Production Process => Quality Plan |
| Product manager drives the product through the product development system and related organizations | A Champion |
| America uses _1__. Japan uses _2__. | 1)Team approach: Cross functional – representatives from all disciplines or functions.Product development teams, design for manufacturability teams, value engineering teams 2)Japanese “whole organization” approach.No organizational divisions |
| 7 Benefits of Manufacturability and Value Engineering | 1)Reduced complexity of products 2)Reduction of environmental impact 3)Additional standardization of products 4)Improved functional aspects of product 5)Improved job design and job safety 6)Improved maintainability of the product 7)Robust design |
| 4 Extensions of CAD: | 1)Design for Manufacturing and Assembly (DFMA)-solve manufacturing problems during the design stage 2)3-D Object Modeling- Small prototype development 3) CAD through the internet 4) International data exchange through STEP |
| 5 benefits of CAD/CAM | 1)Product quality 2)Shorter design time 3)Production cost reductions 4)Database availability 5)New range of capabilities |
| Ethics, Environmentally Friendly Designs, and Sustainability: | It is possible to enhance productivity and deliver goods and services in an environmentally and ethically responsible manner. In OM, sustainability means ecological stability. Plan for:DESIGN, PRODUCTION & DESTRUCTION |
| 5 goals of the Ethical Approach: | 1)Developing safe end environmentally sound practices 2)Minimizing waste of resources 3)Reducing environmental liabilities 4)Increasing cost-effectiveness of complying with environmental regulations 5)Begin recognized as a good corporate citizen |
| 6 Guidelines for Environmentally Friendly Designs | Make products recyclable Use recycled materials Use less harmful ingredients Use lighter components Use less energy Use less material |
| Laws and Industry Standards for DESIGN (4) | 1)Food and Drug Administration 2)Consumer Products Safety Commission 3)National Highway Safety Administration 4)Children’s Product Safety Act |
| Laws and Industry Standards for MANUFACTURE and ASSEMBLY (4) | 1)Occupational Safety and Health Administration 2)Environmental Protection Agency 3)Professional ergonomic standards 4)State and local laws dealing with employment standards, discrimination, etc. |
| Laws and Industry Standards for DISASSEMBLY & DISPOSAL (2) | 1)Vehicle Recycling Partnership 2)Increasingly rigid laws worldwide |
| Time-Based Competition: Product life cycles are becoming shorter and the rate of technological change is ___. Developing new products faster can result in a ___. | increasing, competitive advantage |
| 3 External Strategies: | 1)Alliances 2)Joint Ventures 3)Purchase technology or expertise by acquiring the developer |
| 3 Internal Development Strategies: | 1)Migrations of existing products 2) Enhancements to existing products 3)New internally developed products |
| 5 Group Technology Benefits: | 1)Improved design 2)Reduced raw material and purchases 3)Simplified production planning and control 4)Improved layout, routing, and machine loading 5)Reduced tooling setup time, work-in-process, and production time |
| 5 Documents for Production | Assembly drawing Assembly chart Route sheet Work order Engineering change notices (ECNs) |
| ____:a means of finding the point, in dollars and units, at which costs equal revenues | Break-even analysis: |
| ____:the “throughput” or number of units a facility can hold, receive, store, or produce during a given period of time | Capacity |
| ____:the difference between selling price and variable costs | Contribution: |
| ____:the theoretical maximum output of the system in a given period under ideal conditions | Design capacity: |
| ____:the capacity a firm can expect to achieve, given its product mix, methods of scheduling, maintenance, and standards of quality | Effective capacity: |
| ____:actual output as a percent of effective capacity | Efficiency: |
| ____:costs that continue even if no units are produced | Fixed costs: |
| ____:a means for determining the discounted value of a series of future cash receipts | Net present value: |
| ____:a function that increases by the selling price of each unit | Revenue function: |
| ____:actual output as a percent of design capacity | Utilization: |
| ____:costs that vary with the volume of units produced | Variable costs: |
| 1. Process time of a ___ = time to produce a given # of units at a workstation 2. Process time of a ___ = time of longest process in system aka the bottleneck 3. Process ___ = the time it takes for a unit to go through entire empty system | station,system,cycle time |
| THEORY OF CONSTRAINTS: 1. Identify the constraints. 2. Develop a plan for overcoming the identified constraints. 3. Focus resources on accomplishing step 2. | 4. Reduce effects of the constraint of offloading work or by expanding capability. Make sure that the constraints are recognized by all those who can have impact on them. 5. When one set of constraints is overcome, go back and identify new constraints. |
| 4 principles of Bottleneck Management: a. Release work orders to the system at the pace set by the bottleneck’s capacity. | b. Lost time at the bottleneck represents lost capacity for the whole system. c. Increasing capacity of a non-bottleneck station is a mirage. d. Increasing the capacity of the bottleneck increases capacity for the whole system. |
| Break-Even Analysis :Single-Product Case | 1. Must recover variable costs in the price. 2. The difference between price and variable cost is what you have to recover fixed costs. 3. How many units must be sold to recover fixed costs? |
| Break-Even Analysis :Multi-Product Case | 1. When selling multiple products, the difference between selling price and variable cost will equal different percentages. 2. Using a weighted average of contribution margin ratios will help determine a breakeven in dollars. |
| Net Present Value 1. Initial investment to be recovered 2. Annual cash flows from the investment | 3. A required rate of return 4. Discount the future values of cash flow to the present 5. Compare to the initial investment 6. If present value of the cash flows exceeds cost of the investment, then the rate of return has been obtained |
| Capacity interacts with all of the 10 operations decisions faced by managers. In addition, four special considerations occur: 1. Forecasting demand accurately. 2. Understanding technology & capacity increments that are possible to adjust capacity. | 3. Finding optimum operating size based on microeconomic principles that involve marginal, fixed, and average cost scenarios. 4. Building for change and allowing flexibility. |
| It is likely that demand will not equal capacity. Various strategies may balance the imbalance, including: 1. Making staffing changes (increasing or decreasing the number of employees or shifts). 2. Adjusting equipment | 3. Improving processes to increase throughput . 4. Redesigning products to facilitate more throughput. 5. Adding process flexibility to better meet changing product preferences. 6. Closing facilities. |
| Utilization is the percent of design capacity achieved. | Utilization = Actual output/Design capacity |
| Efficiency is the percent of effective capacity achieved | Efficiency = Actual output/Effective capacity |
| Expected Output = | Expected Output = (Effective Capacity)x(Efficiency) |
| The process time of a ___ is the time to produce a unit at that single workstation The process time of a ___ is the time of the longest process in the system … the bottleneck | station,system |
| The process ___ is the time it takes for a product to go through the production process with no waiting | cycle time |
| The ___ time is the process time of the bottleneck after dividing by the number of parallel operations | system process |
| The ___ is the inverse of the system process time. 1/45seconds The ___ is the total time through the longest path in the system | system capacity, process cycle time |
| Breakeven analysis formulas | BE is Total Cost=Total Revenue TC is FC + (x)(VC) aka FC + (# units)(Variable Cost) TR is (x)(P) aka (# units)(Price per unit) |
| How to figure out the number of units from the Break even formula (BEPx)= Fc/[P-Vc] | TC=TR can be expressed as: FC+(X)Vc=(X)P Fc=x(P-Vc) x= Fc/[P-Vc] |
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