Ch 6-8

Question 1

Assembly line balancing

Answer 1

assign tasks to series of workstations so that the required cycle time is met, idle time minimized

Question 2

What are the three main steps in production processes?

Answer 2

1. Source the parts needed
2. Make the product
3. Deliver the product

Question 3

Define lead time in production processes.

Answer 3

The time needed to respond to a customer order

Question 4

What is the customer order decoupling point?

Answer 4

Inventory is positioned to allow entities in the supply chain to operate independently (the transition from producing goods based on forecasts to producing based on actual customer demand)

Question 5

What is lean manufacturing?

Answer 5

A means of achieving high levels of customer service with minimal inventory investment

Question 6

Describe a Make-to-Stock production environment.

Answer 6

A production environment where the customer is served ‘on-demand’ from finished goods inventory

Question 7

What is the primary task in an Assemble-to-Order production environment?

Answer 7

Defining a customer’s order in terms of alternative components carried in inventory

Question 8

What does Make-to-Order production entail?

Answer 8

The product is built directly from raw materials and components in response to a specific customer order

Question 9

What characterizes Engineer-to-Order production?

Answer 9

The firm works with the customer to design and then make the product

Question 10

What is the essential issue in Make-to-Stock environments?

Answer 10

Balancing the level of inventory against the level of customer service

Question 11

What is production process mapping?

Answer 11

Developing a high-level map of a supply chain process to understand material flows and inventory holding

Question 12

What are the components of total average value of inventory?

Answer 12

1. Raw materials
2. Work-in-process
3. Finished goods

Question 13

What does Little’s Law state?

Answer 13

Inventory = Throughput rate × Flow time

Question 14

“project” layout in production system design?

Answer 14

product remains in a fixed location; equipment is moved to the product

Question 15

Define a work center layout.

Answer 15

Arranging work centers in a way that optimizes the movement of material

Question 16

What is an assembly line design characterized by?

Answer 16

A fixed sequence of workstations designed to achieve a specific production rate

Question 17

What is workstation cycle time?

Answer 17

A uniform time interval in which a moving conveyor passes a series of workstations

Question 18

List the five features of a service package.

Answer 18

1. Supporting facility
2. Facilitating goods
3. Information
4. Explicit services
5. Implicit services

Question 19

What is the significance of service blueprinting?

Answer 19

It distinguishes between high customer contact aspects and unseen activities

Question 20

What are poka-yokes?

Answer 20

Procedures that block inevitable mistakes from becoming service defects

Question 21

What is the central problem in many service settings?

Answer 21

Management of waiting time

Question 22

What are the factors affecting waiting lines?

Answer 22

1. Number of arrivals
2. Customers demand varying amounts of service
3. Control over arrivals
4. Service time

Question 23

What is the purpose of segmenting customers in queue management?

Answer 23

To optimize service delivery and customer satisfaction

Question 24

Define the aggregate operation plan.

Answer 24

A plan for labor and production for the intermediate term to minimize the cost of resources needed to meet demand

Question 25

What is the main goal of sales and operations planning?

Answer 25

To help firms provide better customer service, lower inventory, and stabilize production rates

Question 26

What is long-range planning?

Answer 26

Planning focusing on a horizon greater than one year, usually performed annually

Question 27

What does the chase strategy in production planning entail?

Answer 27

Hiring and laying off employees as the order rate fluctuates

Question 28

What is the formula for production?

Answer 28

Production = Production rate × Workforce level

Question 29

What is the intermediate-range planning period for production planning?

Answer 29

3 to 18 months

Question 30

What are the key trade-offs involved in production planning strategies?

Answer 30

* Workforce size * Work hours * Inventory * Backlogs

Question 31

Define the chase strategy in production planning.

Answer 31

Hire and lay off employees as the order rate varies

Question 32

What characterizes a stable workforce strategy?

Answer 32

Variable work hours

Question 33

What is the level strategy in production planning?

Answer 33

Maintain a stable workforce working at a constant output rate

Question 34

What is a pure strategy in production planning?

Answer 34

Uses just one of the planning approaches

Question 35

What is a mixed strategy in production planning?

Answer 35

Uses two or more planning approaches

Question 36

What are relevant cost types in production planning?

Answer 36

* Basic production costs * Costs associated with changes in production rate * Inventory holding costs * Backorder costs

Question 37

What do operations managers need to submit to receive funding?

Answer 37

Annual or quarterly budget requests

Question 38

What does an aggregate plan provide?

Answer 38

Justification for the requested budget amount

Question 39

What does accurate medium-range planning increase the likelihood of?

Answer 39

* Receiving the requested budget * Operating within the limits of the budget

Question 40

What is the cut-and-try approach in aggregate planning?

Answer 40

Costing out various production planning alternatives and selecting the best one

Question 41

What is linear programming in aggregate planning?

Answer 41

Use of mathematical analysis to determine an optimal plan

Question 42

What is simulation in aggregate planning?

Answer 42

What-if analysis using simulated demand to evaluate effectiveness of alternative plans

Question 43

Define yield management.

Answer 43

Allocating the right type of capacity to the right type of customer at the right price and time to maximize revenue(hotels, airlines)

Question 44

What are characteristics of demand in yield management?

Answer 44

* Demand can be segmented by customer * Fixed costs are high and variable costs are low * Inventory is perishable * Product can be sold in advance * Demand is highly variable

Question 45

What is a key requirement for pricing structures in yield management?

Answer 45

Must appear logical to the customer and justify different prices

Question 46

What are some management strategies for operating yield management systems?

Answer 46

* Scheduling additional personnel to meet peak demand * Increasing customer self-service * Creating adjustable capacity * Utilizing idle capacity for complementary services * Cross-training employees to create reserves for peak periods

Question 47

Project (Org of Production Processes)

Answer 47

remains in fixed location, equipment is moved to the product

Question 48

Work Centre "Job Shop" (Org of Production Processes)

Answer 48

Similar equipment or functions grouped together

Question 49

Manufacturing Cell (Org of Production Processes)

Answer 49

dedicated area where products w similar processing requirements are produced

Question 50

Assembly line (Org of Production Processes)

Answer 50

work process arranged according to progressive steps which the product is made

Question 51

Continuous Process (Org of Production Processes)

Answer 51

flow is continuous, like liquids