Term
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Definition
| The maximum output rate that can be achieved by a facility |
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Term
|
Definition
| The process of establishing the output rate that can be achieved by facility |
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Term
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Definition
| The maximum output rate that can be achieved by a facility under ideal conditions |
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Term
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Definition
| The maximum output rate that can be sustained under normal conditions |
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Term
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Definition
| Percentage measure of how well available capacity is being used |
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Term
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Definition
| The volume of output that results in the lowest average costs |
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Term
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Definition
| A condition in which the average cost of the unit produced is reduced as the amount of output increases |
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Term
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Definition
| A condition in which the cost of each additional unit made increases |
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Term
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Definition
| Facilities that are small specialized, and focused on a narrow set of objectives |
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Term
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Definition
| Developing an large network of subcontractors and suppliers to perform a number of tasks...to help alleviate the cost of keeping inventory |
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Term
| Steps to capacity planning decision |
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Definition
1) Identify capacity requirements
2) Develop capacity alternatives
3) Evaluate capacity alternatives |
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Term
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Definition
| Capacity requirements identified on the basis of forecasts of future demand |
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Term
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Definition
| Companies can often add capacity cushions which is the amt of capacity needed to increase flexibility |
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Term
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Definition
1) Do nothing
2) Expand large now
3) Expand small now, with option to add later |
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Term
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Definition
| Modeling tool used to evaluate independent decisions that must be made in sequence |
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Term
| Procedure to draw a decision tree |
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Definition
1) Draw a decision tree from left to right. Use squares to indicate decisions and circles to indicate chance events
2) Write the probability of each chance event in parenthesis
3) Write out the outcome for each alternative in the right margin |
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Term
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Definition
| A weighted avg of chance events, where each chance event is given a probability of occurrence |
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Term
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Definition
| Techniques for determining location decisions |
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Term
| What is facility location? |
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Definition
| Facility location is determining the best geographic location for a company's facility |
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Term
| Factors affecting location |
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Definition
| Proximity to sources of supply , proximity to customers, proximity to source of labor, Community considerations, site considerations, quality of life issues |
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Term
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Definition
| The process of locating facilities around the world |
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Term
| Advantages of globalization |
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Definition
| Take advantage of foreign markets (new competition), reduction of trade barriers, cheap labor |
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Term
| Disadvantages of globalization |
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Definition
| Political risks, might need to share some of its technology, do you use local employees? |
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Term
| Steps for making location decisions |
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Definition
1) Identify dominant location factors
2) Develop location alternatives
3) Evaluate location alternatives |
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Term
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Definition
| A procedure that can be used to evaluate multiple alternative locations based on a number of selected factors |
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Term
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Definition
| A procedure for evaluating location alternatives based on distance |
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Term
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Definition
| The shortest distance between two points measured by using only north-south and east-west movements |
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Term
| Calculating the load distance model |
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Definition
1) Identify distances
2) Identify loads
3) Calculate the load distance score for each location |
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Term
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Definition
| Technique used to compute that amount of goods that must be sold to cover costs |
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Term
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Definition
| Deciding on the best physical arrangement of all resources that consume space within a facility |
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Term
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Definition
| Layouts that group resources based on similar processes or functions |
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Term
|
Definition
| Layouts that arrange resources in sequence to allow for an efficient buildup of a product |
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Term
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Definition
| Layouts that combine characteristics of process and product layouts |
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Term
| Group technology or cell layouts |
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Definition
| Hybrid layouts that create groups of products based on similar processing requirements |
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Term
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Definition
| A layout in which the product cannot be moved due to its size and all the resources have to come to a production site |
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Term
| Designing a process layout |
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Definition
1) Gather information
2) Develop a block plan or a schematic of the layout
3) Develop a detailed layout |
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Term
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Definition
| Schematic showing the placement of resources in the facility |
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Term
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Definition
| Table that gives the number of trips or units of product moved between any pair of departments |
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Term
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Definition
| Table that reflects opinions of managers with regard to the importance of having any two departments close together |
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Term
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Definition
| Model used to compare the relative effectiveness of different layouts |
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Term
|
Definition
| The shortest distance between two locations using north-south and east-west movements |
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Term
|
Definition
| Layouts remain desirable many years into the future or can be easily modified to meet changing demand |
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Term
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Definition
| Proximity vs privacy is something you need to keep into perspective |
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Term
| Designing product layouts |
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Definition
1) Identify tasks and their immediate predecessors
2) Determine output rate
3) Determine cycle time
4) Find the minimum number of stations
5) balance the line
6) Compute efficiency, idle time and balance delay |
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Term
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Definition
| The process of assigning tasks to workstations in a product layout in order to achieve a desired output and balance the workload among stations |
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Term
|
Definition
| A task that must be performed immediately before another task |
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Term
|
Definition
| A visual representation of the precedence relationships between tasks |
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Term
|
Definition
| The number of units we wish to produce over a specific period of time |
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Term
|
Definition
| The maximum amount of time each workstation has to complete its assigned tasks |
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Term
|
Definition
| The longest task in the process |
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Term
| Theoretical min number of stations |
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Definition
| The number of workstations needed on a line to achieve 100 percent efficiency |
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Term
|
Definition
| The ratio of total productive time divided by total time, given as a percentage |
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Term
|
Definition
| The amount by which the line efficiency falls short of 100 percent |
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Term
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Definition
| A system in which the product being worked is physically attached to the line and automatically moves to the next station |
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Term
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Definition
| A line designed to produce only one version of a product |
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Term
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Definition
| A line designed produce many versions of a product |
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Term
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Definition
| Brings efficiencies of a product layout to a process layout |
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Term
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Definition
| Items in process throughout the plant |
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Term
|
Definition
| Products sold to customers |
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Term
|
Definition
| Finished goods in the distribution system |
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Term
|
Definition
| Inventory built in anticipation of future demand |
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Term
|
Definition
| Provides a cushion against unexpected demand |
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Term
|
Definition
| A result of the quantity ordered or produced |
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Term
|
Definition
| Inventory in movement between locations |
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Term
|
Definition
| Used to protect against some future event |
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Term
| Maintenance, repair, and operating inventory |
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Definition
| Items used in support of manufacturing and maintenance |
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Term
|
Definition
| The ability to satisfy customer requirements |
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Term
| Percentage of orders shipped on schedule |
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Definition
| A customer service measure appropriate for use when orders have similar value |
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Term
| Percentage of items shipped on schedule |
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Definition
| A customer service measure appropriate when customer orders vary in number of line items ordered |
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Term
| Percentage of dollar volume shipped on schedule |
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Definition
| A customer service measure appropriate when customer orders vary in value |
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Term
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Definition
| Costs such as scrap costs, calibration costs, and downtime costs associated with preparing the equipment for the next product being produced |
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Term
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Definition
| A measure of inventory policy effectiveness |
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Term
|
Definition
| A measure of inventory policy effectiveness |
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Term
|
Definition
| Includes price paid for the item plus other direct costs associated with the purchase |
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Term
|
Definition
| Include the variable expenses incurred by the plant related to the volume of inventory held |
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Term
|
Definition
| The higher of the cost of capital or the opportunity cost for the company |
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Term
|
Definition
| Include variable expenses for space, workers, and equipment related to the volume of inventory held |
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Term
|
Definition
| Include obsolescence, damage or deterioration, theft all associated with holding a high volume of inventory |
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Term
|
Definition
| The fixed costs associated with either placing an order with a supplier or setup costs incurred for in-house production |
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Term
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Definition
| Incurred when demand exceeds supply |
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Term
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Definition
| Delaying delivery to the customer until the item becomes available |
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Term
|
Definition
| Occurs when a customer is not willing to wait for delivery |
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Term
|
Definition
| Implies that about 20 percent of the inventory items will account for about 80 percent of the inventory value |
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Term
|
Definition
| A method for determining lvl of control and frequency of review of inventory items |
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Term
|
Definition
| Updates inventory balances after each inventory transaction |
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Term
|
Definition
| Requires regular periodic reviews of the on-hand quantity to determine the size of the replenishment order |
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Term
|
Definition
| One bin with enough stock to satisfy demand during replenishment time is kept in the storeroom; the other bin is placed on the manufacturing floor |
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Term
|
Definition
| Time from order placement to order receipt |
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Term
|
Definition
| A physical inventory is taken periodically, usually annually |
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Term
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Definition
| Prespecified items are counted daily |
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Term
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Definition
| The supplier maintains an inventory at the customers facility |
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Term
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Definition
| An item in a particular geographic location |
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Term
|
Definition
| The company orders exactly what is needed |
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Term
|
Definition
| Specifies the number of units to orderw hen an order is placed |
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Term
|
Definition
| Places a replenishment order when the on-hand inventory falls below the predetermined minimum lvl. An order is placed to bring the inventory back up to the maximum level |
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Term
|
Definition
| The order quantity is determined by total demand for the item for the next n periods |
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Term
|
Definition
| Demand is known and is constant, lead time is known and is constant, quantity discounts not considered, ordering costs and setup costs are fixed and constant, all demand is met, the quantity ordered arrives together at once |
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Term
| Economic production quantity |
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Definition
| A model that allows for incremental product delivery |
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Term
| Perpetual inventory record |
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Definition
| Provides an up-to-date inventory balance |
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Term
|
Definition
| Modifies the EOQ process to consider cases where quantity discounts available |
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Term
|
Definition
| The probability that demand during lead time will not exceed on hand inventory |
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Term
|
Definition
| Used in determining order quantity in the periodic review system. Target inventory less on hand inventory equals order quantity |
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Term
|
Definition
| Designed for use with products that are highly perishable |
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Term
|
Definition
| A statement of long-range strategy and revenue cost, and profit objectives |
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Term
| Sales and operations planning |
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Definition
| The process that brings together all the functional business plans into one integrated plan |
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Term
|
Definition
| Includes the budgeted levels of finished products, inventory, backlogs, workforce size, and aggregate production rate needed to support the marketing plan |
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Term
|
Definition
| Identifies the sources and uses of funds; projects cash flows, profits, return on investment; and provides budgets in support of the strategic business plan |
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Term
|
Definition
| Identifies new products or modifications to existing products that are needed to support the marketing plan |
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Term
| Master production schedule |
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Definition
| The anticipated production schedule for the company expressed in specific configurations, quantities and dates |
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Term
|
Definition
| A planning approach that produces the same quantity each time period. Inventory and back orders are used to absorb demand fluctuations |
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Term
|
Definition
| A planning approach that varies production to meet demand each period |
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Term
|
Definition
| A planning approach that uses a combination of lvl and chase approaches while developing the aggregate plan |
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Term
|
Definition
| A group of options that respond to demand fluctuations through the use of inventory or back orders, or by shifting the demand pattern |
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Term
|
Definition
| A group of options that allow the firm to change its current operating capacity |
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Term
|
Definition
| Products available for shipment to the customer |
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Term
|
Definition
|
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Term
|
Definition
| A marketing strategy that attempts to shift demand from peak periods to smooth out the demand pattern |
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Term
|
Definition
| Work beyond normal established operation hours that usually requires a premium be paid to the workers |
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Term
|
Definition
| Sending production work outside to another manufacturer or service provider |
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Term
|
Definition
| The percentage of normal capacity the company is currently using |
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Term
| Developing an aggregate plan |
|
Definition
1) Identify the aggregate plan that matches your company's objectives (level, chase or hybrid)
2) Based on that plan determine the production rate
3) Calculate the size of the workforce
4) Test the aggregate plan
5) Evaluate the plans performance in terms of cost, customer service, hr and operations |
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Term
|
Definition
| Allocates scarce resources to maximize yield |
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Term
|
Definition
| Starts with the due date for an order and works backward to determine the start date for each activity |
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Term
| Enterprise resource planning |
|
Definition
| An information system designed to integrate internal and external members of the supply chain |
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Term
|
Definition
| Designed to improve decision making in supply chain |
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Term
| Supply chain intelligence |
|
Definition
| Enables strategic decision making along the supply chain |
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Term
| Application service provider |
|
Definition
| Sets up and runs ERP systems |
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Term
|
Definition
| An MRP system that includes production planning, master production scheduling, and capacity requirements planning |
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Term
| Manufacturing resource planning |
|
Definition
| A method for the effective planning and integration of all internal resources |
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Term
| Material requirements planning |
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Definition
| A system that uses the MRP, inventory record data, and BOM to calculate material requirements |
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Term
| Capacity requirements planning |
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Definition
| Determines the labor and machine resources needed to fill the open and planned orders generated by the MRP |
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Term
|
Definition
| Lists all the subassemblies component parts, and raw materials that go into an end item and shows the usage quantity of each required |
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Term
|
Definition
| The demand for an item is unrelated to the demand for other items |
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Term
|
Definition
| Demand for component parts is based on the number of end items produced |
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Term
|
Definition
| Expressing future demand, supply, and inventories by time period |
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Term
|
Definition
| The total period demand for an item |
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Term
|
Definition
| Factors include the lot size rules, replenishment lead times and safety stock requirements |
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Term
|
Definition
| The span of time needed to perform an activity or a series of activities |
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Term
|
Definition
| The visual representation of the BOM, clearly defining the parent-child |
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Term
|
Definition
| A product sold as a completed item or repair part |
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Term
|
Definition
| An item produced from one or more children (components) |
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Term
|
Definition
| Output from an MRP system that identifies the need for an action to be taken |
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Term
|
Definition
|
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Term
|
Definition
| Released manufacturing orders |
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Term
|
Definition
| Processes designed to handle high-volume, standard products |
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Term
|
Definition
| Provides info about the operations to be performed, their sequence, the work centers, and the time standards |
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Term
|
Definition
| A facility, department, or resource whose capacity is less than the demand placed on it |
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Term
|
Definition
| Planning and control chart designed to graphically show workloads or to monitor job progress |
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Term
|
Definition
| A chart that visually shows the workload relative to the capacity on a resource |
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Term
|
Definition
| A chart that visually shows the planned schedule compared to the actual performance |
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Term
|
Definition
| Scheduling that calculates the capacity needed at work centers in the time period needed without regard to the capacity available to do the work |
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Term
|
Definition
| Scheduling that loads work centers up to a predetermined amt of capacity |
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Term
|
Definition
| Schedule that determines the earliest possible completion date for a job |
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Term
|
Definition
| Time when the job is supposed to be finished |
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Term
|
Definition
| Scheduling method that determines when the job must be started to be done on the due date |
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Term
|
Definition
| The amount of time a job can be delayed and still be finished by its due date |
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Term
|
Definition
| A technique for monitoring the flow of jobs between work centers |
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Term
|
Definition
| A short term plan of actual jobs to be run in each work center based on available capacity and priorities |
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Term
|
Definition
| Determines the priority of jobs at a work center |
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Term
|
Definition
| Makes a priority decision based on jobs currently at that work center |
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Term
|
Definition
| Makes a priority decision based on information that includes the remaining work centers a job must pass through |
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Term
|
Definition
| Jobs are processed in the order win which they arrive at a machine or work center |
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Term
|
Definition
| The last job into the work center or at the top of the stack is processed first |
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Term
|
Definition
| The job due the earliest has the highest priority |
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Term
|
Definition
| The job that requires the least processing time has the highest priority |
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Term
|
Definition
| The job that requires the most processing time has the highest priority |
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Term
|
Definition
| Measurement of the time a job spends int eh shop before its finished |
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Term
|
Definition
| The amount of time it takes to finish a batch of jobs |
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|
Term
| Average number of jobs in the system |
|
Definition
| Measures work in process inventory |
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Term
|
Definition
| Measures whether the job is done ahead of, on or behind schedule |
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Term
|
Definition
| Measures how long after the due date the job is completed |
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Term
|
Definition
| A technique for minimizing makespan in a two stage undirectional process |
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Term
|
Definition
1) List the jobs and the processing time for each activity
2) Find the shortest activity processing time. Organize it last and move forward
3) Repeat step 2 until you have organized all jobs |
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Term
| Optimized production technology |
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Definition
| A technique used to schedule bottleneck systems |
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Term
|
Definition
| A work center with more capacity than demand |
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|
Term
| Capacity constrained resource |
|
Definition
| Bottleneck caused by inefficient usage |
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Term
|
Definition
| The quantity of finished goods that can be sold |
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Term
|
Definition
| The quantity of items moved at the same time from one resource to the next |
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Term
|
Definition
| The quantity produced at a resource before the resource is switched over to produce another product |
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Term
|
Definition
| A management philosophy that extends the concepts of OPT |
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Term
| Internal resource constraint |
|
Definition
|
|
Term
|
Definition
| The condition that results when market demand is less than production capacity |
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Term
|
Definition
| The condition that results when a specific policy dictates the rate of production |
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Term
|
Definition
| Endeavor with a specific objective, multiple activities, and defined precedence relationships, to be completed in a specified time period |
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|
Term
| Program evaluation and review technique |
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Definition
| Network planning technique used to determine a projects planned completion date and identify the projects critical path |
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|
Term
| Critical path method (CPM) |
|
Definition
| Network planning technique with determined times, used to determine a project's planned completion date and identify the projects critical path |
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Term
|
Definition
| Establishes the sequencing of activities to ensure that all necessary activities are completed before a subsequent activity is begun |
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Term
|
Definition
1) Describe the project
2) Diagram the network
3) Estimate the projects completion time
3a) Deterministic time estimates
3b) Probabilistic time estimates
4) Monitor the projects progression |
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Term
|
Definition
| Network diagramming notation that places activities in the nodes and arrows to signify precedence relationships |
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Term
|
Definition
| The longest sequential path through the network diagram |
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|
Term
| Probabilistic time estimate |
|
Definition
| Process that uses optimistic, most likely, and pessimistic time estimates |
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|
Term
| Deterministic time estimate |
|
Definition
| Assumption that the activity duration is known with certainty |
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Term
|
Definition
| The amt of time an activity can be delayed without affecting the projects planned completion time |
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Term
|
Definition
| The shortest time period in which the activity can be completed |
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|
Term
|
Definition
| The shortest time period in which the activity can be completed |
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|
Term
| Most likely time estimate |
|
Definition
| The normal time that the activity is expected to take |
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|
Term
| Pessimistic time estimate |
|
Definition
| The longest time period in which the activity will be completed |
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|
Term
| Beta probability distribution |
|
Definition
| Typically represents project activities |
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Term
|
Definition
| Reducing the completion time of the project |
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Term
|
Definition
| Focus on the final due date that is based on the theory of constraints |
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Term
|
Definition
| Safety time placed at the end of the critical path |
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