Chapter 5 Flashcards
(22 cards)
Production Capacity
maximum product rate of an organization
Sustainable Practical Capacity
greatest level of output that a plant can maintain
Aggregate Unit of Capacity
establishes using a common unit of output (sales dollars per week)
Best Operating Level
least average unit cost
Economies of Scale
average cost per unit decreases as volume increases to the best operating level
Diseconomies of Scale
average cost per unit increases as volume increases beyond best operating level
All at once
build the ultimate facility and grow into it
Incrementally
build incrementally as capacity demand grows
National Decision
political, social, economic stability, currency exchange rates
Regional Decision
climate, customer concentrations, unions
Community Decision
transportation system availability, preference of management
Sit Decision
site size, cost, environmental impact, zoning restrictions
Facility Layout
planning, location of machines, utilities, workstations etc…
Layout Decision
Are infrequent, expensive, evaluated extensively, long term commitment
Materials-Handling System
network of transportation that receives materials, stores, moves, and deposits
Process Layout
similar processes are group together, general purpose equipment, flexible, operators are skilled, requires technical supervision, and production time is long
Product Layout
narrow variety, but high volume, special equipment, expensive, continuous, operators dont need to be skilled
Cellular Layout
group of parts arranged in sequence, moderate variety and volume, general purpose, made and shipped faster
Fixed Layout
fixed position, bulky or large items,
New Trends
designed for quality, flexibility, cellular layout within larger process layout, automated, U-Shaped lines
Incremental Utilization Method
add tasks to workstations in order of task precedence until 100% or is observed to fall
Long Task Time Method
tasks to workstation one at a time in order of task precedence
