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MGT 302
Quiz 2
104
Management
Undergraduate 3
07/18/2013

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Term
Assembly Line Balancing Step 1
Definition
1. Specify sequential relationships among tasks
Term
Assembly Line Balancing Step 2
Definition
Determine required workstation cycle time
C=production time per day/units per day (throughput rate)
Term
Assembly Line Balancing Step 3
Definition
Determine the theoretical minimum number of workstations. N=Sum of task times/cycle time
Term
Assembly Line Balancing Step 4
Definition
Assign tasks, one at a time, until the sum of the tasks is equal to the workstation cycle time. Prioritize tasks in order of largest number of following tasks. Break ties with a secondary rule like longest task time
Term
Assembly Line Balancing Step 5
Definition
Evaluate the efficiency of the balance. E=Sum of task times/C*N
Term
Assembly Line Balancing Step 6
Definition
Rebalance if needed
Term
Lead Time
Definition
the time needed to respond to a customer order
Term
Customer Order Decoupling Point
Definition
where inventory is positioned to allow entities in the supply chain to operate independently
Term
Make-to-Stock Firms
Definition
firms that serve customers from finished goods inventory (tvs, clothes, balance inv against level of cust service)
Term
Assemble-to-Order Firms
Definition
firms that combine a number of preassembled modules to meet a customer's specifications (dell comp)
Term
Make-to-Order Firms
Definition
firms that make the customer's product from raw materials, parts, and components
Term
Engineer-to-Order Firms
Definition
firms that will work with the customer to design and then make the product
Term
Little's Law
Definition
Inventory=throughput rate*flow time
Term
Throughput Rate
Definition
the average rate that items flow through a process (units/day)
Term
Flow Time
Definition
the time it takes one unit to completely flow through a process
Term
λ
Definition
Arrival Rate
Term
μ
Definition
Service Rate
Term
Single Channel, Single Phase
Definition
You go in and only one person is there, and go through one phase. Like a one man barbershop
Term
Single Channel, Multiphase
Definition
There is only one person you interact with, but you go through multiple steps. Just like the drive thrus in the old days
Term
Multichannel, Single Phase
Definition
You have the option of talking to multiple people, but there is still only one step until you leave. Bank tellers windows is an example
Term
Multichannel, Multiphase
Definition
Deal with multiple people, and go through different steps with the different people. Just like hospital admissions.
Term
Average Time Between Arrivals
Definition
1/λ
Term
Average Service Time
Definition
1/μ
Term
P (conceptual)
Definition
Percent of the time the worker will be busy
Term
P (equation)
Definition
λ/μ
Term
Lq (conceptual)
Definition
Average number of people waiting in line
Term
Lq (equation)
Definition
(λ*λ)/(μ(μ-λ))
Term
Ls (conceptual)
Definition
average number in system (including those being served)
Term
Ls (equation)
Definition
(λ)/(μ-λ)
Term
Wq (conceptual)
Definition
average waiting time in line
Term
Wq (equation)
Definition
Lq/λ
Term
Ws (conceptual)
Definition
average total time in system
Term
Ws (equation)
Definition
Ls/λ
Term
Pn (conceptual)
Definition
Probability of exactly n units in the system
Term
Pn (equation)
Definition
(1-(λ/μ))(λ/μ)^N
Term
Assembly Line Balancing
Definition
the method of assigning tasks to workstations so that the amount of idle time is minimized
Term
Continuous Process
Definition
very few product types and high volume. Individual products can not be distinguished until packaging. Ex. brewery
Term
Assembly Line
Definition
a single path through the process. All products follow the same path. Workflow is sometimes paced with a conveyor or belt. Ex. car manufacturing
Term
Workcenter
Definition
focused on a particular type of operation. Place workscenters with a high degree of inter deparmental traffic close to one another. Ex. toy factory
Term
Manufacturing Cells
Definition
dissimilar machines are grouped together. Used to make products requiring similar production sequences and steps. Products are manufactured in bunches. Ex. computer chip manufacturing
Term
Project
Definition
Product is usually stationary. Material brought to the product. Ex. OCC
Term
How to determine idle time in assembly lines
Definition
The sum of each difference between the bottleneck and each other process
Term
Total Quality Management
Definition
managing the entire organization so that it excels on all dimensions of products and services that are important to the customer
Term
Two fundamental goals of TQM
Definition
1. Careful design of the product or service
2. Ensuring that the organization's systems can consistently produce the design
Term
Design Quality
Definition
inherent value of the products in the marketplace
Term
Conformance Quality
Definition
the degree to which the product or service specifications are met
Term
Dimensions of Design Quality
Definition
1. Performance
2. Features
3. Reliability/Durability
4. Serviceability
5. Aesthetics
6. Perceived Quality
Term
Performance
Definition
Primary product or service characteristics
Term
Features
Definition
Added touches, bells and whistles, secondary characteristics
Term
Reliability/Durability
Definition
Consistency of performance over time, probability of failing, useful life
Term
Serviceability
Definition
Ease of repair
Term
Aesthetics
Definition
Sensory characteristics (sound, feel, look, and so on)
Term
Perceived Quality
Definition
Past performance and reputation
Term
Process Control
Definition
monitoring quality while the product or service is being produced
Term
Control Charts (what to look for)
Definition
1. Points above/below UCL/LCL
2. Points near UCL/LCL
3. Run of 5 above/below central line
4. Trend in either direction
5. Erratic behavior
Term
Two types of quality characteristics that can be tracked
Definition
1. Variables
2. Attributes
Term
Variables
Definition
weight, length, etc.
Term
Attributes
Definition
good or bad, works or doesnt
Term
Types of charts for variable measures
Definition
X-bar charts and R charts
Term
Types of charts for attribute measures
Definition
P charts
Term
Step 1 in creating P charts
Definition
Calculate the sample proportions p for each sample
Term
Step 2 in Creating p Charts
Definition
Calculate the average of the sample proportions
Term
Step 3 in Creating p Charts
Definition
Calculate the standard deviation of the sample proportion
Term
Step 4 in Creating p Charts
Definition
Calculate the control limits
Term
Step 5 in Creating p Charts
Definition
Plot the individual sample proportions, the average of the proportions, and the control limits
Term
p bar
Definition
Total number of defectives/total number of observations
Term
Sp
Definition
Square root((p bar(1-pbar)/n)
Term
UCL
Definition
pbar+ZSp
Term
LCL
Definition
pbar-ZSp
Term
Process Capability
Definition
when the mean and standard deviation of the process are operating such that the upper and lower control limits are acceptable relative to the upper and lower specification limits
Term
Capability Index
Definition
the ratio of the range of values produced by a process divided by the range of values allowed by the design specification
Term
Cpk (equation)
Definition
Cpk= min((xbar-LTL)/3sigma or (UTL-xbar)/3sigma)
Term
What the desirable Cpk
Definition
1.3
Term
Taguchi's View of the Cost of Variability
Definition
1. From the customer's view, there is often practically no difference between a product just inside specifications and a product just outside. Conversely, there is a far greater difference in the quality of a product that is the target and the quality of one that is near a limit.
2. As customers get more demanding, there is pressure to reduce variability. However, the traditional view doesn't reflect this logic.
Term
Traditional View of the Cost of Variability
Definition
Any part falls within the allowed range is equally good, whereas any part falling outside the range is totally bad.
Term
Supply Chain & Operations Management
Definition
an integrated approach to strategic sourcing, logistics, and operations management.
Term
Differences between Services and Goods (5)
Definition
1. Services are intangible
2. Services require some interaction with the customer
3. Services are inherently heterogeneous
4. Services are perishable and time dependent
5. Services are defined and evaluated as a package of features
Term
Pure Goods
Definition
One time goods Ex. food products, chemicals, book publishing
Term
Core Goods
Definition
Goods with a service element/repeated use Ex. appliances, data storage system, whips
Term
Core Services
Definition
Services with a goods element Ex. hotels, airlines, internet service providers
Term
Pure Services
Definition
services that provide no element of goods Ex. teaching, medical advice, financial consulting
Term
Triple Bottom Line
Definition
1. Economic-the firms obligation to compensate shareholders who provide capital via competitive returns on investment
2. Environmental
3. Social-fair and beneficial business practices toward labor, the community, and the region in which the firm conducts business
Term
Order Qualifiers
Definition
the basic criteria that permit the firms products to be considered for purchase by customers
Term
Order Winners
Definition
the criteria that differentiates the products and services of one firm from another
Term
Competitive Dimensions (5)
Definition
Price, Quality, Delivery Speed, Delivery Reliability, Flexibility/New Product Information Speed
Term
Risk Management Framework
Definition
1. Identify sources of potential disruption
2. Assess the potential impact and probability of risk
3. Develop plans to mitigate the risk
Term
Productivity (definition)
Definition
how well an organization is using its resources
Term
Productivity (equation)
Definition
outputs/inputs
Term
Profit Margin
Definition
net income/sales
Term
Asset Turnover
Definition
sales/total assets
Term
Return on Assets
Definition
net income/assets
Term
Return on Equity
Definition
net income/owners equity
Term
Inventory Turnover
Definition
COGS/inventory
Term
Capacity
Definition
the amount of output that a process is capable of achieving over a specific period of time
Term
Capacity Utilization Rate
Definition
Rate of output actually achieved/capacity for which the process was designed
Term
Capacity Cushion
Definition
the amount of capacity in excess of expected demand
Term
Economies of Scale
Definition
as a plant gets larger, the average cost per unit drops
Term
Diseconomies of Scale
Definition
When shit goes awry because the plant got to be too fuggin big. Often has to do with shipping
Term
Economies of Scope
Definition
when a single company can jointly produce multiple products at a lower cost than if multiple companies produced these products separately
Term
Focused Factory
Definition
production facilities work best when they focus on a fairly limited set of production objectives
Term
Plants Within Plants
Definition
multiple plants under same roof
Term
Capacity Flexibility
Definition
the ability to rapidly increase or decrease production levels or to shift production capacity quickly from one product/service to another
Term
Considerations in Changing Capacity
Definition
1. Maintaining system balance, want similar capacities at each operation, and deal with bottlenecks
2. Frequency of capacity additions (cost)
3. External sources of capacity like outsourcing
Term
How do you determine capacity requirements?
Definition
1. Forecasting to predict sales for individual products
2. Calculate equipment and labor requirements
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