Shared Flashcard Set

Details

INFO 364 TEST 2
tibodeau
129
Business
Undergraduate 3
02/26/2011

Additional Business Flashcards

 


 

Cards

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