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Operations Management ch. 9
Key terms for the chapter
27
Business
Undergraduate 4
07/13/2010

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Term
Lean systems
Definition
are operations systems that maximize the value added by each of a company’s activities by paring unnecessary resources and delays from them.
Term
Just-in-time (JIT) philosophy
Definition
The belief that waste can be eliminated by cutting unnecessary capacity or inventory and removing non-value-added activities in operations.
Term
JIT system
Definition
A system that organizes the resources, information flows, and decision rules that enable a firm to realize the benefits of JIT principles.
Term
Push method
Definition
A method in which production of the item begins in advance of customer needs.
Term
Pull Method
Definition
A method in which customer demand activates production of the service or item.
Term
Quality at the source
Definition
is an organization-wide effort to improve the quality of a firm’s products by having employees act as their own quality inspectors, and never pass defective units to next stage.
Term
poka-yoke
Definition
mistake-proofing methods aimed at designing fail safe systems that minimize human error.
Term
jidoka, and andon
Definition
which gives machines and machine operators the ability to detect when an abnormal condition has occurred.
Term
Lot
Definition
A quantity of items that are processed together.
Term
Setup
Definition
The group of activities needed to change or readjust a process between successive lots of items.
Term
Single-digit setup
Definition
The goal of having a setup time of less than 10 minutes.
Term
Uniform Workstation Loads
Definition
A lean system works best if the daily load on individual workstations is relatively uniform.
Service processes can achieve uniform workstation loads by using reservation systems (e.g., scheduled surgeries) and differential pricing to manage the demand.
For manufacturing processes, uniform loads can be achieved by assembling the same type and number of units each day, thus creating a uniform daily demand at all workstations.
Term
Mixed-model assembly
Definition
produces a mix of models in smaller lots.
Term
Line Flows
Definition
Managers of hybrid-office and back-office service processes can organize their employees and equipment to provide uniform work flows through the process and, thereby, eliminate wasted employee time.
Term
one-worker, multiple-machines (OWMM)
Definition
approach, which essentially is a one-person line.
Term
Automation
Definition
plays a big role in lean systems and is a key to low-cost operations.
Term
Five S (5S)
Definition
A methodology consisting of five workplace practices conducive to visual controls and lean production
Sort: Separate needed from unneeded items (including tools, parts, materials, and paperwork), and discard the unneeded.
Straighten: Neatly arrange what is left, with a place for everything and everything in its place. Organize the work area so that it is easy to find what is needed.
Shine: Clean and wash the work area and make it shine.
Standardize: Establish schedules and methods of performing the cleaning and sorting. Formalize the cleanliness that results from regularly doing the first three S practices so that perpetual cleanliness and a state of readiness is maintained.
Sustain: Create discipline to perform the first four S practices, whereby everyone understands, obeys, and practices the rules when in the plant. Implement mechanisms to sustain the gains by involving people and recognizing them via a performance measurement system.
Term
Kanban
Definition
means “card” or “visible record” in Japanese & refers to cards used to control the flow of production through a factory.
General Operating Rules:
Each container must have a card.
The assembly line always withdraws materials from fabrication (pull system).
Containers of parts must never be removed from a storage area without a kanban being posted on the receiving post.
The containers should always contain the same number of good parts. The use of nonstandard containers or irregularly filled containers disrupts the production flow of the assembly line.
Only nondefective parts should be passed along.
Total production should not exceed the total amount authorized on the kanbans in the system.
Term
Value stream mapping (VSM)
Definition
is a qualitative lean tool for eliminating waste (or muda) that involves a current state drawing, a future state drawing, and an implementation plan.
Term
Value stream mapping (VSM)
Definition
spans the entire value chain, from the firm’s receipt of raw materials to the delivery of finished goods to the customer.
Term
The human costs
Definition
Lean system implementation requires a high degree of regimentation, and sometimes it can stress the workforce.
Term
Cooperation & Trust
Definition
Workers and first-line supervisors must take on responsibilities formerly assigned to middle managers and support staff.
Term
Reward systems and labor classifications
Definition
must often be revamped when a lean system is implemented.
Term
Existing layouts
Definition
may need to be changed.
Term
Schedule Stability
Definition
Daily production schedules in high-volume, make-to-stock environments must be stable for extended periods.
Term
Setups
Definition
If the inventory advantages of a lean system are to be realized, small lot sizes must be used.
Term
Purchasing and Logistics
Definition
If frequent, small shipments of purchased items cannot be arranged with suppliers, large inventory savings for these items cannot be realized.
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