Term
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Definition
| the ability to hold, receive, store, or accommodate |
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Term
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Definition
| greater than one year; requires top management participation and approval |
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Term
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Definition
| monthly or quarterly plans for the next 6 to 18 months |
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Term
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Definition
| less than one month; tied into the daily or weekly scheduling process and involves making adjustments to eliminate the variance between planned and actual output |
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Term
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Definition
| Overtime, personnel transfers, and alternative production routings would be alternatives included in what capacity planning time duration? |
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Term
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Definition
| Hiring, layoffs, new tools, minor equipment purchases, and subcontracting would be alternatives included in what capacity planning time duration? |
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Term
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Definition
| the amount of resource inputs available relative to output requirements over a particular period of time |
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Term
| objective of strategic capacity planning |
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Definition
| to provide an approach for determining the overall capacity level of capital-intensive resources that best supports the company's long-range competitive strategy |
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Term
| facilities, equipment, and overall labor force size |
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Definition
| Examples of capital-intensive resources |
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Term
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Definition
| the level of capacity for which the process was designed and thus is the volume of output at which average unit cost is minimized |
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Term
| capacity utilization rate |
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Definition
| reveals how close a firm is to its best operating level |
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Term
| [formula for] capacity utilization rate |
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Definition
| (capacity used)/(best operating level) |
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Term
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Definition
| as a plant gets larger and volume increases, the average cost per unit of output drops |
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Term
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Definition
| holds that a production facility works best when it focuses on a fairly limited set of production objectives |
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Term
| cost, quality, deliver speed and reliability, changes in demand, fexiblity to adapt to new products |
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Definition
| aspects of manufacturing performance |
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Term
| plant within a plant (PWP) |
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Definition
| permits finding the best operating level for each department of the organization and thereby carries the focus concept down to the operating level |
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Term
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Definition
| having the ability to rapidly incrase/decrease production levels, or to shift production capacity quickly from one product/service to another |
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Term
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Definition
| exist when multiple products can be combined and produced at one facility, at a lower cost than they can be produced separately |
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Term
| maintaining system balance, frequency of capacity additions or reductions, and the use of external capacity |
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Definition
| three important issues that must be considered when adding or decreasing capacity |
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Term
| cost of upgrading too frequently and cost of upgrading too infrequently |
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Definition
| two types of costs to consider when adding capacity |
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Term
| outsourcing; sharing capacity |
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Definition
| two common external sources of capacity |
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Term
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Definition
| an amount of capacity in excess of expected demand |
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Term
| negative capacity cushion |
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Definition
| when a firm's design capacity is less than the capacity required to meet its demand |
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Term
| service capacity is more time and location dependent, is subject to more volatile demand fluctuations, and utilization directly impacts service quality |
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Definition
| Differences between capacity planning service versus manufacturing |
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Term
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Definition
| a concept that can be sued to operationalize a focused factory by designating a specific area in a larger plant |
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Term
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Definition
| a line displaying the relationship between unit production time and the cumulative number of units produced |
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Term
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Definition
| improvement that results when people repeat a process and gain skill or efficiency from their own experience |
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Term
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Definition
| results from practice, but it also comes from changes in administration, equipment, and product design |
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Term
1. the amount of time required to complete a given task/unit will be less each time the task is undertaken
2. the unit time will decrease at a decreasing rate
3. the reduction in time will follow a predictable pattern |
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Definition
| the three assumptions that the Learning Curve Theory is based on |
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Term
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Definition
| In what industry were learning curves first applied? |
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Term
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Definition
| shows the decrease in time required for each successive unit |
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Term
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Definition
| shows the cumulative average performance times as the total number of units increases |
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Term
| time per unit and cumulative average times |
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Definition
| progress curves or product learning; useful for complex products or products with longer cycle time |
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Term
| units of output per time period |
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Definition
| also called industry learning; generally applied to high volume production/short cycle time |
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Term
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Definition
| any part of an organization that takes inputs and transforms them into outputs that, it is hoped, are of greater value to the organization than the original inputs |
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Term
| cycle time of a repetitive process |
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Definition
| the average time between completions of successive units |
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Term
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Definition
| the ratio of the time that a resource is actually activated relative to the time that it is available for use |
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Term
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Definition
| refers to a storage area between stages (in a multiple stage process) where the output of a stage is placed prior to being used in a downstream stage |
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Term
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Definition
| allows stages to operate independently |
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Term
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Definition
| occurs when the activities in the stage must stop because there is no place to deposit the item just completed |
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Term
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Definition
| occurs when the activities in a stage must stop because there is no work |
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Term
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Definition
| limits the capacity of the process |
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Term
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Definition
| activated only in response to an actual order, keeping inventory to a minimum |
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Term
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Definition
| processes that produce standard products that can be delivered quickly to the customer |
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Term
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Definition
| combine the features of both make to order and make to stock |
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Term
| a generic product is made and stocked at some point in the process, and these generic units are then finished in the final process based on actual orders |
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Definition
| what happens in the most common hybrid form? |
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Term
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Definition
| refers to the fixed timing of the movement of items through the process |
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Term
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Definition
| comparing the metrics of one company to another |
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Term
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Definition
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Term
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Definition
| possibly the most common process metric |
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Term
| average time for a unit to move through the system |
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Definition
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Term
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Definition
| flow time divided by value added time |
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Term
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Definition
| average time between completion of units |
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Term
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Definition
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Term
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Definition
| actual output/standard output |
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Term
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Definition
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Term
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Definition
| time activated/time availble |
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Term
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Definition
| the ratio of the time that a resource is actually being used relative to the time that it is available for use |
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Term
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Definition
| a ratio of the actual output of a process relative to some standard |
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Term
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Definition
| used to measure the loss or gain in a process |
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Term
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Definition
| the time required to produce a batch of parts |
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Term
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Definition
| calculated by multiplying the time required to produce each unit by the batch size |
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Term
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Definition
| time required to prepare a machine to make a particular item |
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Term
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Definition
| sum of the setup time and run time for a batch of parts that are run on a machine |
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Term
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Definition
| the elapsed time between starting and completing a job |
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Term
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Definition
| includes the time that the unit spends actually being worked on together with the time spent waiting in a queue |
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Term
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Definition
| the output rate that the process is expected to produce over a period of time |
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Term
| process velocity (aka throughput ratio) |
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Definition
| ratio of the total throughput time to the value added time |
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Term
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Definition
| time in which useful work is actually being done on the unit |
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Term
| total average value of inventory |
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Definition
| sum of the value at cost of inventory |
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Term
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Definition
| cost of goods sold divided by the average inventory value |
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Term
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Definition
| states that there is a long term relationship between the inventory, throughput, and flow time of a production system in steady sate |
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Term
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Definition
| inventory = throughput rate x flow time |
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Term
1. perform activities in parallel
2. change the sequence of activities
3. reduce interruptions |
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Definition
| ways to reduce the flow time of a process without purchasing new equipment |
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Term
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Definition
| firms that serve customers from finished goods inventory |
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Term
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Definition
| firms that combine a number of preassembled modules to meet a customer’s specifications |
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Term
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Definition
| firms that make the customer’s product from raw materials, parts, and components |
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Term
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Definition
| firm that will work with the customer to design and then make the product |
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Term
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Definition
| production process organized so that the product remains in a fixed location |
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Term
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Definition
| production process is organized so that similar equipment or functions are grouped together |
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Term
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Definition
| a dedicated area where products that are similar in processing requirements are produced |
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Term
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Definition
| work processes are arranged according to the progressive steps by which the product is made |
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Term
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Definition
| assembly line only the flow is continuous such as with liquids |
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Term
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Definition
| a high standardized commodity product with high product volume would be best organized in what time of production process |
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Term
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Definition
| A standard approach to choosing among alternative processes or equipment |
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Term
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Definition
| seeks to determine the point in units produced where we will start making profit on the process |
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Term
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Definition
| seeks to determine the point in units produced where total revenue and total cost are equal |
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Term
1. sourcing
2. making
3. sending the item to customer |
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Definition
| high level view of what is required to make something (3 steps) |
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Term
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Definition
| the time needed to respond to a customer order |
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Term
| customer order decoupling point |
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Definition
| key concept in production process which determines where inventory is positioned to allow processes or entities in the supply chain to operate independently |
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Term
| customer order decoupling point |
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Definition
| a strategic decision that determines customer lead times and can greatly impact inventory investment |
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Term
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Definition
| firms that serve customers from finished goods inventories |
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Term
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Definition
| combine a number of preassembled modules to meet a customer's specifications |
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Term
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Definition
| make the customer's product from raw materials, parts, and components |
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Term
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Definition
| works with the customer to design the product, and then make it from purchased materials, parts, and components |
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Term
| balance level of finished inventory against level of service to customer |
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Definition
| essential issue in satisfying customers in make to stock environment |
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Term
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Definition
| help make to stock firms achieve higher service levels for a given inventory investment |
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Term
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Definition
| customer order decoupling point in assemble to order firms |
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Term
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Definition
| refers to the strategic decision of selecting which kind of production processes to use to produce a product or provide a service |
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Term
| project, workcenter, manufacturing cell, assembly line, continuous process |
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Definition
| five basic structures for facility arrangement |
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Term
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Definition
| the product remains in a fixed location; manufacturing equipment is moved to the product |
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Term
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Definition
| Houses and bridges would be examples of what type of production process layout? |
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Term
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Definition
| aka job shop; similar equipment or functions are grouped together |
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Term
| manufacturing cell layout |
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Definition
| a dedicated area where products that are similar in processing requirements are produced |
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Term
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Definition
| designed to perform a specific set of processes, and dedicated to a limited range of products |
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Term
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Definition
| typically scheduled to produce "as needed" in response to current customer demand |
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Term
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Definition
| where work processes are arranged according to the progressive steps by which the product is made |
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Term
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Definition
| discrete products are made by moving from workstation to workstation at a controlled rate, following a sequence needed to build the product |
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Term
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Definition
| similar to an assembly line in that production follows a predetermined sequence of steps, but the flow is continuous rather than discrete (i.e. liquids) |
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Term
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Definition
| petroleum, chemicals, and drugs would be good examples of what type of production process? |
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Term
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Definition
| depicts the relationship between layout structures; product volume dimension and product standardization dimension |
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Term
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Definition
| refers to variations in the product that is produced |
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Term
| less specialized/general purpose |
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Definition
| equipment that can be used easily in many different ways if it is set up in the proper way |
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Term
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Definition
| a standard approach to choosing among alternative processes or equipment |
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Term
| manufacturing process flow design |
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Definition
| a method to evaluate the specific processes that raw materials, parts, and sub assemblies follow as they move through the plant |
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Term
| customer order decoupling point |
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Definition
| the place where inventory is positioned to allow processes or entities in the supply chain to operate independently |
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Term
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Definition
| a production environment where the customer is served on demand from finished goods inventory |
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Term
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Definition
| a production environment where presassembled components, sub assemblies, and modules are put together in response to a specific customer order |
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Term
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Definition
| a production environment where the product is built directly from raw materials and components in response to a specific customer order |
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Term
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Definition
| here the firm works with the customer to design the product, which is then made from purchased materials, parts and components |
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Term
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Definition
| a process structure suited for low volume production of a great variety of nonstandard products; sometimes referred to as departments; focused on a particular type of operation |
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Term
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Definition
| an area where simple items that are similar in processing requirements are produced |
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Term
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Definition
| an often automated process that converts raw materials into a finished product in one continuous process |
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Term
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Definition
| the use of a diagram to present the major elements of a process |
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Term
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Definition
| a single path for all stages of production |
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Term
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Definition
| Some of production has alternative paths where two or more machines are used to increase capacity |
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Term
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Definition
| the movement of things such as materials, people, or finished goods |
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Term
| total average value of inventory |
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Definition
| Sum of the value of raw materials, work-in-process, and finished goods inventory |
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Term
| Inverse of inventory turns scaled to days |
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Definition
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