Chapter 6: Manufacturing Processes Flashcards
Define Lead time and Customer order decoupling point
Lead time: The time needed to respond to a customer order. (order recieved - order delievered)
Customer order decoupling point: Where inventory is positioned in the supply chain.
For example, if a product is stocked at a retailer, the customer pulls the item from the shelf and the manufacturer never sees a customer order.
Define Make-to-stock, Assemble-to-order, Make-to-order, Engineer-to-order
Make-to-stock: A production environment where the customer is served “on-demand” from finished goods inventory.
* Inventory is kept in stock due to anticipation of demand
Assemble-to-order: A production environment where preassembled components, subassemblies, and modules are put together in response to a specific customer order.
Make-to-order: A production environment where the product is built directly from raw materials and components in response to a specific customer order.
Engineer-to-order: Here the firm works with the customer to design the product, which is then made from purchased material, parts, and components.
Define Lean manufacturing
Lean manufacturing: To achieve high customer service with minimum levels of inventory investment.
Define Total average value of inventory
Total average value of inventory: The total investment in inventory at the firm, which includes raw material, work-in-process, and finished goods.
- Good to know for how much inventory you have on hand
Define Inventory turn
Inventory turn: An efficiency measure where the cost of goods sold is divided by the total average value of inventory.
* COGS/Avg. Value Inventory
* Better measure of total value in inventory
Define Days-of-supply
Days-of-supply: A measure of the number of days of supply of an item.
- Ex. if a firm turns inventory six times per year, the days of supply is equal to one-sixth times per year, or approximately every 61 days (this is calculated as 1/6 year x 365 days/year = 60.8 days).
Define Throughput, Flow time, Little’s law
Throughput: The average rate (e.g., units/day) that items flow through a process.
Flow time: The time it takes one unit to completely flow through a process.
Little’s law: Mathematically relates inventory, throughput, and flow time.
Define Project layout and Work-center
Project layout: For large or massive products produced in a specific location, labour, material, and equipment are moved to the product rather than vice versa.
* Ex. construction sites (houses and bridges) and movie shooting lots
* Equipment is moved to the product
Work-center: A process with great flexibility to produce a variety of products, typically at lower volume levels.
* is where similar equipment or functions are grouped together, such as all drilling machines in one area and all stamping machines in another.
define Manufacturing cell
Manufacturing cell: Dedicated area where a group of similar products are produced.
* These cells are designed to perform a specific set of processes, and the cells are dedicated to a limited range of products
* These cells typically are scheduled to produce “as needed” in response to current customer demand.
define Assembly line, Continuous process, Product–process matrix
Assembly line: Area where an item is produced through a fixed sequence of workstations, designed to achieve a specific production rate.
Continuous process: A process that converts raw materials into finished product in one contiguous process.
Product–process matrix: A framework depicting when the different production process types are typically used, depending on product volume and how standardized the product is.
Define Workstation cycle time, Assembly-line balancing, Precedence relationship
Workstation cycle time: The time between successive units coming off the end of an assembly line.
- the maximum duration a job takes for completion at each workstation
Assembly-line balancing: The problem of assigning tasks to a series of workstations so that the required cycle time is met and idle time is minimized.
Precedence relationship: The required order in which tasks must be performed in an assembly process.
