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Definition
| A functional strategy that should be guided by the business strategy and should result in a consistent pattern in decisions. |
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| Generic Types of Business Strategies |
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Definition
| Cusomer intimacy, product leadersip, operational excellence |
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| Something operations does better than anyone else. |
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| Four Common Objectives of Operations |
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Definition
| Cost, Quality, Delivery, and Felxibility |
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| Found in a mature, price sensitive market with a standarized product. Operations should strive to emphasize cost as its main objective. |
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| New product introduction: typical of emerging markets where advantage can be gained by bringing out superior quality. |
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| An objective that will win orders from the customers in a particular segment. |
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| Flexibility, quality, and delivery can be considered order qualifiers that the company must have acceptable levels of. |
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| Should be aimed at achieving a sustainable competitive advantage for the entire supply chain. |
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| The customers needs are determined, and then the firm organizes the resources and processes needed to supply the customer. |
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| Firm pursues a technology based advantage and the products are then pushed into the market, and marketing's job is to create demand for it. |
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| The prodcut should not only fit the needs of the market but have a technical advantage too. |
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| Phases of Product Development |
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Definition
| Concept development, product design, and pilot production/testing. |
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Definition
| Needs to be done cross functionally and needs to take place at the same time as the product design. |
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| Quality Function Deployment |
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Definition
| Toll used for linking customer requirements as defined by the customer to technical specifications. |
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Definition
| Consists of two things: 1. simplification of products and 2. manufacturing of multiple products using common parts, processes, and modules. |
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| A process used for improving the usefulness of a product without increasing its cost or reducing the cost without reducing the usefulness of the product. |
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Definition
| Develop a series of basic components or modules that can be assembled into a large number of different products. |
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Term
| Process Selection Decisions |
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Definition
| determine the type of process used to make the product or service, generlly speaking highvolume products that are standarized will be made on an assembly line while low volume products will be made in a batch process. |
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Definition
| Products tend to be made in a continuous fashion and are highly standarized and automated with very high volumes of production. |
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Definition
| The flow is characterized by a linear sequence of operations. The product moves form one step in the process to the next in a sequential manner. |
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Definition
| Chraracterized by production of products in batches or lots. Each batch of the product flows from one operation or work center to another. |
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Definition
| A batch operation results in considerable production scheduling and inventory problems. When loaded near full capacity, the batch operation will have high inventories, as jobs wait in line to be processed. |
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Term
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Definition
| TR= Total processing time/total time in operations, most batch operations have TRs between 10-20%. Assembly lines have TRs of 90-100% |
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Definition
| A batch process uses a process layout because the machines are organized by the process types into work centers. |
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Definition
| The assembly line uses this because the machines and labor are organized according to the product flow itself. |
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Definition
| Make products only to customer order in batches using a process layout. The product is made in batches but is made to the customer order. |
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Definition
| Used for unique or creative products like building a stadium or a large aircraft. |
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Definition
| Company produces a product to replenish inventory, does not satisfy the individual customer's specifications but rather their need. |
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Definition
| Defined by its extreme flexibility and ability for high customization. |
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Definition
| Builds up subassemblies in advance of demand and then puts them together at the last minute to satisfy customer demand. |
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Definition
| The point in the supply chain where the product is linked to a specific customer order. |
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| Factors that influence process selection from among the six processes |
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Definition
| Market conditions, Capital requirements, Labor, Technology |
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Definition
| It is essential for factories to arrange each product as a plant within a plant in order to increase efficiency. this may sacrifice some economies of scale. |
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Definition
| Product focus, process type, technology, volume of sales, Make to stock or make to order, New products and mature products |
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Definition
| Traditional mass production is built on economies of scale by means of high volume standarized products with few options. |
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Definition
| A high variety of products from a single process. Mass Customization depends on this |
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Definition
| Can provide a variety of options using an assemble to order process. |
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Definition
| The form of mass customization that Motorola pagers use. Production should be computer controlled it is also essential to have nearly zero changeover time on equipment so that a lot size of one can be achieved. |
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Definition
| Defer a portion of the production process until the point of delivery. |
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Definition
| The ability to make a customized product at approximately the same cost as a mass-produced product. |
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Definition
| The simultaneous production and consumption, the customer must be in the production system while it is taking place. |
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Definition
| The tangible service (explicit service), The psychological benefits of the service (implicit service), The physical goods (facilitating goods) |
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Definition
| Services in which the customers want a unique, highly customized experience. Examples: Personal trainers, internet shopping, and museums. |
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Definition
| Offer a moderate number of choices to customers, using a moderately standarized service system. Example: Medical and stockbroker services. |
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Definition
| Characterized by service systems that allow few options during service delivery, and are matched with customers whose needs are very similar to one another. |
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| Uncertaintity Related to customers |
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Definition
| Arrival Variability, Request Variability, Capability Variability, Effort Variability, Subjective preference variability |
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Term
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Definition
| =f(degree of customer contact) High levels of contact may be costly in terms of efficiency but can increase the opportunity for sales. |
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| Production line approach to service |
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Definition
| Services should be standardized and delivered in an efficient manner. |
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Definition
| Customer loyalty is the key to revenue growth and profitability. |
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Term
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Definition
| Benefit customers receive less the cost incurred in obtaining the service |
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Definition
| Low employee turnover helps drive productivity and customer value. The greatest cost of turnover is the lost productivity and decreased customer satisfaction associated with new employees. |
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Definition
| Anything that does not contribute value to the product. |
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Definition
| The elimination of waste in all production processes by providing exactly what the customer needs and no more. |
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Definition
| in manufacturing systems the master schedule, or final assembly schedule, is planned for a fixed time period, say one to three months. |
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Definition
| A simple parts withdrawal system, parts are kept in small containers and only a specific number of these containers are available. When the containes are filled the machines are shut off and no more parts are produced. |
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Definition
| Essential to lean so that workers can switch from one machine to the next and so that they can perform their own setup and maintenance. |
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Term
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Definition
| To increase the ROI, a lean system can improve profitability by improving quality or by giving better delivery service. |
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Definition
| The time between successive units of production; this represents the speed of output. The takt time of production should be set equal to the average demand rate of the market. |
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Term
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Definition
Used to control the sequencing of jobs through a sequential process. A subsystem of lean. The system is visual in nature. n=dt/c. N=number of containers D= demand rate of the using workcenter C= container size in number of parts, usually less than 10% of daily demand. T= time for a container to complete an entire circuit: filled, wait, moved, used, and returned to be filled again. |
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Term
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Definition
| Important because it increases available capacity, increases flexibility to meet schedule changes, and reduces inventory. |
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Term
| Single Setups & One touch stups |
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Definition
| Single setup refers to a setup time that has a single digit in minutes. One touch setups have a setup time of less than one minute. |
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Term
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Definition
| Lean has turned into a group technology, or cellular manufacturing layout. Used so that parts can flow smoothly from one work center to the next. |
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Term
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Definition
| Since parts are not produces unles they are needed the workers must be able to set uo machines, do routine maintenance, and inspect the parts. |
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Term
| Integrated Supplier Program |
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Definition
| 1. Early Supplier Selection, 2. Family of parts sourcing, 3. Long-term relationships, 4. Paperwork reduction in receiving and inspection |
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Term
| Facilitate implementation of Lean |
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Definition
| 1. Obtain commitment from top management 2.Gain the cooperation of the workforce 3. Start with the final assembly line 4. Working backward from final assembly to reduce setup times and lot sizes 5. Balance fabrication rates with final assemly production rates 6. Extend lean production to suppliers. |
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Definition
| Identify waste in the current value stream and to specify a future value stream that eliminates waste from the customer's point of view. |
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Term
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Definition
| Basically the Value Stream Mapping process, usually takes anywhere from two days to a week. |
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Term
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Definition
| The boundaries should encompass all the important interacting elements for purposes of the analysis or decision being made. |
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Term
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Definition
I=TxR I= average number of things in the system T= average throughput time R= average flow rate into the process |
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Definition
| The maximum rate of output of a process or the maximum flow rate that can be sustained over a period of time. "Maximum capacity" is a redundant term. |
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Definition
| The most constraining resource in a process, the process that defines the capacity amount. |
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Term
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Definition
1.Selec a relevant productive process 2. Form a team, or designate an individual 3. Decide on the objectives of the analysis 4. Define the customers and suppliers
5. Descrube the existing transformation process 6. Develop an improved process design 7. Gain management approval 8. Implement |
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Term
| Manufacturing throughput time |
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Definition
| The total time to order, manufacture, and distribute a product from beginning to the end. |
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Term
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Definition
| Used to separate those parts of the service process that come in direct contact with the customer from those that don't |
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| Business Process Reengineering |
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Definition
| As a result, major business processes are redesigned and integrated to better serve the customer. |
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Definition
1. Organize around outcomes, not tasks 2. Have the people who do the work process their own information 3. Put the decision point where the work is performed, and build control into the process. 4. Eliminate the unnecessary steps in the process |
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Definition
| The process for determining the customer needs and market opportunities |
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Definition
| A new product that plans new products around a small number of basic product designs called platforms that allow for many different models. |
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Definition
| The process of identifying and preventing the likely causes of failure within a process. |
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Definition
| The principle of delaying the customization of a product as long as possible in order to minimize the complexity and inventory. |
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Definition
| The process of dismantling a competitor's products to understand the strengths and weaknesses of the designs. |
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Definition
| Hard to break or applicable in many situations. |
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Definition
| The stated and unstated requirements of the customers. It is important to understand their needs and desires as they evolve overtime. |
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Definition
| The scientific discipline concerned with the understanding of interactions among humans and other elements of a system, also called human factors. |
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Definition
| A model that realtes a performance variable to the number of units produced, where the performance variable decreases as the cumulative production increases, but decreases at a slower rate; also called experience curve. |
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Definition
| Anytime that a firm touches its customers or employees. A moment of truth is an opportunity for a customer to find who the firm "really is" |
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Definition
1. Clearly identify the targeted customer 2. Develop a process map from the customer's point of view 3. Map employees' actions both onstage and backstage 4. Link customer and contact person activities to needed support functions 5. Add evidence of service at each customer action setup |
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Definition
A simple but effective, lean manufacturing methodology that helps organizations to simplify, clean, and sustain a work environment. Sort, set in order, shine, standardize, sustain |
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Definition
| Not allowing a process to produce when the output storage area is full. |
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Definition
| Movement of workers between different jobs in an organization. The policy can be an effective method for crosstraining and can imporve efficiency while reducing boredom |
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Definition
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Definition
| Dividing a job into small, simple, standard steps and assigning one worker to each step. |
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Definition
| Adding steps to a worker's load |
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Definition
| The percent of the available worktime that a resource is working |
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