Term
| 3 types of goods and services |
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Definition
| Make-to-order, Assemble-to order, Make-to-stock |
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Term
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Definition
| aka Custom, custom products, one of a kind, ex wedding, suits, surgery |
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Definition
| aka Option, parts are finished, but not put together, ex dell computers, subway sandwich |
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Definition
| aka Standard, goods and services made for everyone, generally by machine, ex shoes, credit cards, soap |
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Term
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Definition
| Projects, Job shop processes, Flow shop, Continuous flow |
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Term
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Definition
| large-scale, one time tasks such as complex, custome jewelry, airplanes |
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Term
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Definition
| equipment for product or service is separated into areas based on their specific task, ex hospital has xray room, surgery room, and waiting room |
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Term
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Definition
| an assembly line used to make a variety of similar goods, ex automobiles, appliances, insurance policies |
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Term
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Definition
| very standardized goods and services that are made constantly in high volumes ex, gasoline, soda, chips |
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Term
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Definition
| for order processes: used to determine if tasks add value or not, value adding tasks are determined by the customer |
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Term
| Value stream calculations |
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Definition
| Time= value adding tasks + nonvalue adding, Cost = value adding costs + nonvalue adding |
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Term
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Definition
| throughput * flow time to explain work in process relationship between units made over time |
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Term
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Definition
| output rate of process, ex 100 units/hours |
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Term
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Definition
| work activity that limits throughput of the entire process, ex preparing side dishes slows down process |
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Term
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Definition
| management of all activities that facilitate the fulfillment of a customer order for a manufactured good |
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Term
| 3 views of value/supply chains |
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Definition
| Input/Output View, Pre and Post Services View, Typical Goods-Producing Supply Chain Structure |
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Term
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Definition
| supplier to consumer (what goes in to make the product and what comes out) |
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Term
| Pre and Post services view |
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Definition
| gaining a customer and keeping the customer (before and after product) |
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Term
| Typical Goods-Producing supply chain structure |
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Definition
| supplier to manufacturer to consumer |
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Term
| SCOR (Supply Chain Operations Reference Model) |
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Definition
| 1) Plan, 2) Source, 3) Make, 4) Deliver, 5) Return |
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Term
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Definition
| firm specializes in certain types of goods-producing activities, such as customized design or manufacturing |
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Term
| EMS (Electronic Manufacturing System) |
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Definition
| term used for companies that design services for electronic components of a product |
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Term
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Definition
| delaying product customization until product is closer to customre at the end of the supply chain |
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Term
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Definition
| process of managing geographically dispersed service-providing facilities |
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Term
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Definition
| managing the flow of finished goods that may be unusable or discarded through the supply chain from customers aka returns |
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Term
| Sustainable supply chains |
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Definition
| green supply chain that uses environmentally friendly inputs |
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Term
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Definition
| order amplification in the supply chain where each member of a supply chain "orders up" to buffer their own inventory ex. Diapers at walmart |
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Term
| 4 main locations for supply chains |
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Definition
| global, regional, community, local |
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Term
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Definition
| best place to place a warehouse using X and Y coordinates, and remember there are limitations ex. Mountain, ocean, railroad |
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Term
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Definition
| efficient distribution system allowing a company to operate with lower inventory levels |
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Term
| VMI (Vendor Managed Inventory) |
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Definition
| becoming popular where the seller manages inventory for the customer and tells the supplier |
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Term
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Definition
| production volume of a manufacturer over a certain time period determined by resources |
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Term
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Definition
| Short term ex have overtime, increase number of on call workers, Long term ex construct a new plant, expand number of branches |
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Term
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Definition
| average unit cost of a good decreases as the volume of sales increases |
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Term
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Definition
| average cost of a good increases as the volume of sales increases |
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Term
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Definition
| to achieve economies of scale without extensive investments by focusing on narrow range of goods or target market segments |
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Term
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Definition
| aka Capacity Cushion, is the amount of capacity reserved for unanticipated events |
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Term
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Definition
| Percent = 100% - Average resource utilization % |
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Term
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Definition
| seasonal products should have complementary products to sell during off seasons |
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Term
| Short term capacity adjustments |
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Definition
| change labor capacity and schedules, hire more/overtime |
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Term
| TOC (Theory of Constraints) |
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Definition
| principles used to increase total process maximization by constantly using all bottleneck stations |
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Term
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Definition
| amount of money generated per time period in sales |
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Term
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Definition
| anything that limits an organization from moving forward |
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Term
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Definition
| associated with the capacity ex machine or employee |
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Term
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Definition
| limits capacity for entire process of a product |
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Term
| CPFR (Collaborative Planning, Forecasting, and Replenishment) |
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Definition
| sharing info with a selling company ex, Colgate does a promotion and tells Walmart so they know to order more products earlier |
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Term
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Definition
| length of time where a forecast is based, short range are more accurate than long range because there are less variables |
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Term
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Definition
| 1) Trend, 2) Seasonal patterns, 3) Cyclical patterns, 4)/5) Random variation or noise and one time variation or error |
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Term
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Definition
| aka Noise, unexplained deviation of a time series or trend because forecasts are never accurate |
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Term
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Definition
| one time variation that is explainable, ex hurricane causes increase in demand for food and water |
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Term
| Judgemental forecasting (Qualitative) |
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Definition
| relies on opinions and expertise of forecasts when no historical data is available |
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Term
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Definition
| forecasting through expert opinion by getting a bunch of experts to talk about ideas individually |
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Term
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Definition
| sample size is larger than delphi method but is costly |
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Term
| Statistical forecasting (Quantitative) |
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Definition
| using numbers to assume that the future is correlated to the past |
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Term
| MAPE (Mean Absolute Percentage Error) |
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Definition
| dividing absolute error by time series data to make it easier to interpret (a percentage of error) |
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Term
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Definition
| method to quantiy bias by getting the average absolute deviation (MAD) |
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Term
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Definition
| planning and controlling everything that affects creating, storing, and transporting products |
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Term
| Primary fuctions of inventory |
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Definition
| to have enough for demand and not lose profits while they are not available |
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Term
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Definition
| partially finished goods in various stages of completion |
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Term
| MRO (Maintenance, Repair, and Operating |
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Definition
| supplies used in operations but not part of finished goods |
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Term
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Definition
| inventory resulted from purchasing larger quantities than needed for immediate sale (normally high turnover products) |
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Term
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Definition
| costs to place an order/cost to prepare machines |
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Term
| Inventory-holding/carrying costs |
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Definition
| both are same: cost of storing inventory (price of units not being used) |
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Term
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Definition
| demand for a product SKU (individual product) which is unrelated to demand of other SKUs (individual products) |
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Term
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Definition
| demand of one product is directly related to demand of another ex, tires to a car |
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Term
| ABC inventory (80/20 rule or Pareto) |
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Definition
| used to check on-hand inventory and sales of each item: A items sell for a lot but few are sold ex, car 20% of product but 80% of profit, C items sell for low prices but in large numbers 80% of product but 20% of profit |
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Term
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Definition
| when inventory falls below a certain value, a new order is automatically placed, sometimes by using the "average demand during the lead time" |
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Term
| EOQ (Economic Order Quantity) Model |
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Definition
| determines order size to minimize annual total cost: setup costs + carrying costs, but must meet all 8 assumptions |
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Term
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Definition
| constantly checking inventory ex, 7-11 |
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Term
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Definition
| checking invnetory at specific points in time- higher chance of going out of stock, theft, etc |
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Term
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Definition
| all products go to a warehouse from suppliers to be separated and redistributed to various locations |
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Term
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Definition
| specific arrangement of physical facilities used to minimize delay, maintain flexibility, use labor and space effectively |
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Term
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Definition
| aka Auto Assembly Line, arrangement based on sequence of operations, ex credit card processing, subway shops, auto assembly lines |
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Term
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Definition
| aka Job Shop, grouping equipment or activities that do similar work |
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Term
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Definition
| aka Flexible Manufacturing Systems, grouping equipment together by the need for a set of equipment ex, need for a legal group: labor law, bankruptcy, divorce |
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Term
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Definition
| aka Project, uses resources needed o make a good in one location (normally location it needs to be used) |
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Term
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Definition
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Term
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Definition
| when a work center completes a unit but cannot release it because the in process storage at the next stage is full (first operation is faster than second) |
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Term
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Definition
| when one stage completes work and no unit from previous stage is awaiting processing (second operation is faster in production than first) |
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Term
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Definition
| grouping tasks among workstations so each workstation has the same amount of work, to minimize idle time |
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Term
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Definition
| interval between two successive outputs, A/R (available time to produce output/output or demand forecast in units) but A and R need the same units of measure* |
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Term
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Definition
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Term
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Definition
| longest task time out of all operations |
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Term
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Definition
| must be taken into consideration: longest task time first (because shortest task time is easier to fit in a line), and shortest task time first (so that idle time is minimized) |
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Term
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Definition
| to give more workers responsibility |
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Term
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Definition
| process layout software program in textbook |
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Term
| Reducing number of work stations in an assembly line while maintaining desired output rate |
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Definition
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Term
|
Definition
| management of all activities that facilitate the fulfillment of a customer order for a manufactured good |
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|
Term
| 3 views of value/supply chains |
|
Definition
| Input/Output View, Pre and Post Services View, Typical Goods-Producing Supply Chain Structure |
|
|
Term
|
Definition
| supplier to consumer (what goes in to make the product and what comes out) |
|
|
Term
| Pre and Post services view |
|
Definition
| gaining a customer and keeping the customer (before and after product) |
|
|
Term
| Typical Goods-Producing supply chain structure |
|
Definition
| supplier to manufacturer to consumer |
|
|
Term
| SCOR (Supply Chain Operations Reference Model) |
|
Definition
| 1) Plan, 2) Source, 3) Make, 4) Deliver, 5) Return |
|
|
Term
|
Definition
| firm specializes in certain types of goods-producing activities, such as customized design or manufacturing |
|
|
Term
| EMS (Electronic Manufacturing System) |
|
Definition
| term used for companies that design services for electronic components of a product |
|
|
Term
|
Definition
| delaying product customization until product is closer to customre at the end of the supply chain |
|
|
Term
|
Definition
| process of managing geographically dispersed service-providing facilities |
|
|
Term
|
Definition
| managing the flow of finished goods that may be unusable or discarded through the supply chain from customers aka returns |
|
|
Term
| Sustainable supply chains |
|
Definition
| green supply chain that uses environmentally friendly inputs |
|
|
Term
|
Definition
| order amplification in the supply chain where each member of a supply chain "orders up" to buffer their own inventory ex. Diapers at walmart |
|
|
Term
| 4 main locations for supply chains |
|
Definition
| global, regional, community, local |
|
|
Term
|
Definition
| best place to place a warehouse using X and Y coordinates, and remember there are limitations ex. Mountain, ocean, railroad |
|
|
Term
|
Definition
| efficient distribution system allowing a company to operate with lower inventory levels |
|
|
Term
| VMI (Vendor Managed Inventory) |
|
Definition
| becoming popular where the seller manages inventory for the customer and tells the supplier |
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