Chapter 28 - Operations Strategy Flashcards
Lean Production
Producing goods and services with the minimum of wasted resources while maintaining high quality.
Strategic Decisions
- Expanding or reducing capacity
- Locating a business or relocating it
- Offshoring and restoring
- Outsourcing
- Changing operations/productions methods
Computer-Aided Design
The use of computer programs to create 2 or 3 dimensional graphical representations of physical objects.
Benefits of CAD
- Lower product development costs
- Increases productivity
- Improved product quality
- Quicker development of new products and reduced time to intro to the market.
- Visualization of the product
- Greater accuracy, therefore errors are reduced
Limitations of CAD
- Complexity and cost of the program
- Extensive employee training
- Large amounts of processing power which can be expensive.
Computer Aided Manufacturing
The use of computer software to control machine tools and related equipment in the manufacturing of components or complete products.
Benefits of CAM
- Precise Manufacturing and reduced quality problems
- Faster production and increase labor productivity
- More flexible production operations
- Integration of CAD and CAM allows design variants of products to be produced. Niche products can be produced.
Limitations of CAM
- Costs of hardware, programs and employee training
- Hardware failure and breakdowns
- Quality assurance is needed
- Errors in programs can produce faults.
Operational Flexibility
The ability of a business to vary both the level of production and the range of products following changes in customer demand.
Process Innovation
The use of new or much improved production methods or service delivery methods.
Enterprise Resource Planning
The use of a single computer application to plan the purchase and use of resources in an organization in order to improve operations efficiency.
Lean Productions Techniques
- Kaizen
- Quality Circles
- Simultaneous engineering
- Cell Production
- JIT
- Waste Control
Kaizen
A Japanese term meaning continuous improvement.
Quality Circles
A group of employees who meet regularly to consider ways of resolving problems and improving production in their organization.
Simultaneous Engineering
Product development organized so that different stages are done at the same time instead of in sequence.
