Chapter Definitions Flashcards
(223 cards)
1
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Operations management
A
The management of activities and resources that create goods and or provide services
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Efficiency
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Operating at the minimum cost and time
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Effectiveness
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Achieving quality and timeliness
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Lead time
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The time between ordering a good or service and receiving it
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Model
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An abstraction of reality, a simplified representation of something
6
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System
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A set of interrelated parts that must work together
7
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Pareto phenomenon
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A few factors account for a high percentage of results achieved
8
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Craft production
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Highly-skilled workers using simple, flexible tools to produce small quantities of customized goods
9
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Division of labour
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Breaking up a production process into small tasks so that each worker performs a small portion of the overall job
10
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Interchangeable parts
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Parts of a product made to such precision that they do not have to be custom-fitted
11
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Mass production
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System in which lower skilled workers use specialized machinery to produce high volumes of standardized goods
12
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Total quality management
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A system of management based on the principle that every staff member must be committed to maintaining high standards of work in every aspect of a company’s operations.
13
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Lean production
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System that uses minimal amounts of resources to produce a high volume of high-quality goods with some variety
14
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E-commerce
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Use of the internet to buy and sell goods and services
15
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Supply chain
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A sequence of organizations involved in producing and delivering a product
16
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Competitiveness
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ability and performance of an organization in the market compared to other organizations that offer similar goods or services
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Strategy
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The long-term plans that determine the direction and organization takes to become, or remain, competitive
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Strategic planning
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The managerial process that determines a strategy for the organization
19
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Key purchasing criteria
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The major elements influencing a purchase, price, quality, variety, and timeliness
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Order qualifiers
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Purchasing criteria that customers perceive as minimum standards of acceptability to be considered for purchase
21
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Order winners
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Purchasing criteria that causes selling organization to be perceived as better than the competition
22
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Competitive priorities
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Importance given to operations characteristics, cost, quality, flexibility and delivery
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Mission
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Where the organization is going now, its products and markets
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Vision
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Where the organization desires to be in the future
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Values
Shared beliefs of the organization's stakeholders
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Tactics
Medium-term plans used as components of a strategy
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Action plan
medium or short-term project to accomplish a specific objective, assigned to an individual, with a deadline and the resources needed
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Operations strategy
comprises a set of well-coordinated policies, objectives, and action plans, directly affecting the operations function, which is aimed at securing a long-term sustainable advantage over the competition
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Quality based strategy
Strategy that focuses on quality of an organization's goods and services
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Time based strategy
Strategy that focuses on reduction of time needed to accomplish tasks
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Productivity
A measure of productive use of resources usually expressed as a ratio of output to input
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Value added
The difference between the costs of inputs and the value or price of outputs
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Demand forecast
The estimate of expected demand during a specified time period
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CPFR
Collaborative Planning, Forecasting and Replenishment
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Forecast horizon
The range of periods we are forecasting for
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Elements of a good forecast
1) Timely
2) Accurate
3) Reliable
4) Meaningful Units (dollars and units)
5) In Writing
6) Simple to understand and use
7) Cost effective
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Judgmental methods
use non quantitative analysis of historical data and analysis of subjective inputs from consumers, sales staff, managers, executives, similar products, and experts to help develop a forecast
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Time series models
Extend the pattern of data into the future
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Associative models
Use explanatory variables to predict future demand for the variable of interest
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Delphi method
Experts complete a series of questionnaires, each developed from the previous one, to achieve a consensus forecast
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Time series
A Time ordered sequence of observations taken at regular intervals of time
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Level (average)
Horizontal pattern of Time series
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Trend
A persistent upward or downward movement in data
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Seasonality
Regular wave-like variations related to the calendar, weather, or recurring events
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Cycles
Wave-like variations lasting more than one year
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Irregular variations
Caused by unusual one-time explainable circumstances not reflective of typical behavior
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Random variations
Residual variations after all other behaviours are accounted for, also called noise
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Naive forecast
For a stable series, the next forecast equals the previous periods actual value
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Moving average
Technique that averages a number of recent actual values as forecast for current period. It is updated as new values become available
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Weighted moving average
a variation of moving average were more recent values in the time series are given larger weight in calculating forecast
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Exponential smoothing
weighted averaging method based on previous forecast plus a percentage of the difference between that forecast and the previous actual value
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Adaptive (or variable responsive) exponential smoothing
a version of exponential smoothing where the smoothing constant is automatically modified in order to prevent large forecast errors from occurring
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Linear trend equation
Yt=a+bt, used to develop forecast when linear trend is present
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Trend adjusted exponential smoothing
Variation of exponential smoothing used when a Time series exhibits trend
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Seasonal variations
Regularly repeating wave-like movements and series values that can be tied to recurring events, weather, or calendar
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Seasonal relatives
Proportion of average or trend for a season in the multiplicative model
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Centered moving average CMA
Moving average position at the centre of the data that were used to compute it
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Predictor variables
Variables that can be used to predict values of the variable of interest
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Regression
Technique for fitting a line to a set of points
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Least-squares line
Minimizes the sum of the squared deviations around the line
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Forecast error
Difference between the actual value in the forecast value for a given period
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Mean absolute deviation MAD
The average of absolute value of forecast errors
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Mean squared error MSE
The average of square of forecast errors
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Mean absolute percentage error MAPE
The average absolute percent forecast error
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Bias
The sum of forecast errors
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Control chart for forecast errors
A Time series plot of forecast errors that has limits for individual forecast errors
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Tracking signal
A measure used to control the forecasting process, sum of forecast errors divided by mean absolute forecaster
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Product design
Determining the form and function of the product
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Reverse engineering
dismantling and inspecting a competitor's product to discover what is composed of and how the components work, searching for own product improvements
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Research and development r&d
Organized efforts that are directed toward increasing scientific knowledge and product or process innovation
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Life cycle
Incubation, growth, maturity, saturation, and decline
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Standardization
Extent to which there is absence of variety in a product or part
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Mass customization
Producing basically standardized goods or services but incorporating some degree of customisation
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Delayed differentiation
Producing but not quite completing a product until customer preferences are known
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Modular design
Parts are grouped into modules that are easily replaced or interchanged. The product is composed of a number of modules or components instead of a collection of individual parts
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Reliability
The ability of a product, part, or system to perform its intended function under normal conditions
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Failure
Situation in which a product, part, or system does not perform as intended
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Robust design
Design that can function over a broad range of conditions
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Product liability
A manufacturer is liable for any injuries or damages caused by a faulty product
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Remanufacturing
Refurbishing used products by replacing worn out or defective components
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Design for disassembly
Design so that used products can be easily taken apart
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Recycling
Recovering materials for future use
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Concurrent engineering
bridging engineering design, manufacturing engineers, and staff from marketing, manufacturing, and purchasing together early in the design phase
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Computer aided design CAD
Product design using computer graphics
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Design for manufacturing DFM
Takes into account the organization's manufacturing capabilities when designing a product
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Design for assembly DFA
Focuses on reducing the number of parts in a product and an assembly methods and sequence
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Quality function deployment QFD
A structured approach that integrates the "voice of the customer" into product design
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Capacity
The upper limit on the workload that it operating unit can handle. Capacity is usually measured as maximum production rate or throughput. Alternatively, a major input is used, example size
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Strategic capacity planning
systematic determination of facility and major machine equipment requirements to meet long-term demand for goods and services
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Design capacity
The maximum output rate under ideal conditions
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Effective capacity
a maximum of a trait that can be sustained given to work breaks, product mix, scheduling difficulties unexpected delays, machine and equipment maintenance, excetera. Also known as standard output rate
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Efficiency
The ratio of actual output rate to effective capacity
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Utilization
The ratio of uptime to available time
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Factors influencing effective capacity
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Facilities and machines
Product mix
Workers
Planning an operational factors
External factors
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Capacity cushion
The excess of capacity over the average demand
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Optimal operating level
The level of production that has the lowest average unit cost
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Economies of scale
the economic conditions that favour larger plants and machine equipment by causing minimum average unit cost to decrease as size increases
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Break Even point BEP
The quantity of output at which total cost and total revenue are equal
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Payoff table
Table showing the payoff for each alternative under each state of nature of a one random variable problem
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Decision tree
Graphical representation of the decisions, random variables and their probabilities and payoffs
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Risk profile
The probability distribution of payoff of the best alternative
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Expected value of perfect information EVPI
The difference between the expected payoff with perfect information on the expected payoff without the information
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Expected value of sample information EVSI
the difference between the expected payoff with samples imperfect information and the expected payoff without sample information i.e. under risk
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Sensitivity to probability
Terminating the range of probability for which an alternative has the best expected payoff
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Process design
Determining the form and function of how goods and services are produced ie the sequence of operations
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Make or buy
Decide whether to make a part or product in house or to buy it or a segment of production process from another company
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Job shop
A process type used when a low quantity of high variety customized goods or services is needed
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Batch process
What type of process used when a moderate quantity and variety of goods or services is desired
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Repetitive process
A type of process used when higher quantities of more standardized goods or services are needed
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Production line
A sequence of machines, work stations that perform operations on a part, product
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Assembly line
A production line where parts are added to a product sequentially
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Continuous process
Used when a high volume of highly standardized output is required
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Technology
applications of scientific discoveries to the development and improvement of goods and services and or the processes that produce or provide them
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Automation
Using machinery, equipment with sensing and control devices that enable it to operate automatically
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American controlled machines NC
Machines that perform operations by following mathematical processing instructions
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Robot
Machine consisting of a mechanical arm, a power supply, and a controller
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Flexible manufacturing system FMS
a group of machining centres controlled by computer, with automatic material handling, robots or other automated equipment
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Computer integrated manufacturing CIM
A system for linking a broad range of manufacturing and other activities through an integrating computer system
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Process flow diagram
Shows the operations and movement of material between the operations
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Product layout
Arrangement of production resources linearly according to the progressive steps by which a product is made
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Process layout
Arrangement of production resources according to similarity of function
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Cellular layout
Layout in which different machines are arranged in a cell that can process items that have similar processing requirements
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Group technology
Grouping items with similar design or manufacturing characteristics into part families
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Line balancing
Assigning tasks to workstations in such a way that the workstations have approximately equal time requirements
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Precedence Network
Diagram that shows the tasks and their precedence requirements
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Cycle time
The maximum time allowed at each workstation to complete its set of tasks on a unit
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Percentage idle time
100 X sum of idle X per unit / actual number of workstation X cycle time
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Decision variables
Choices in terms of amounts of either input or output
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Objective function
A mathematical expression involving the decision variables that represent the objective example profit, cost
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Constraints
Represent the requirements or limitations that restrict the available choices
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Feasible solution space
The set of all feasible combinations of values of decision variables as defined by the constraints
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Parameters
Coefficients of decision variables in the objective function and constraints
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Graphical solution
solution method that involves drawing the feasible solution space and contras of the objective function on paper, finding the optimal solution by observation. This method applies to only two variable linear programs
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Redundant constraint
A constraint that does not form a unique boundary of the feasible solution space
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Multiple optimal solutions
when you're active function line is parallel to the constraint line that forms a boundary of the feasible solution space, all points on that boundary are optimal
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Binding constraint
A constraint that forms the optimal corner point of the feasible solution space
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Surplus
Will be optimal very values of decision variables are substituted into the left side of a ≥ constrained, surplus is the amount the left side exceeds the right side
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Slack
The optimal values of a decision variables are substituted into the left side of a ≤ constrained, slack is the amount the left side is less than the right side.
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Sensitivity analysis
Assessing the impact of potential changes of the parameters, numerical values, of an LP model on its optimal solution
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Range of optimality
range of values for an objective function coefficient over which the optimal solution values of the decision variables remain the same
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Shadow price
amount by which the value of the objective function would change as a result of a one-unit change in the rhs value of a constraint
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Range of feasibility
Range of values for its RHS of a constraint over which its shadow price remains the Same
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3 Types of Automation
Fixed Automation - Most rigid (mass production)
Programmable Automation - CNC (Mechanical, Power Supply, Controller)
Flexible Automation - CAD, FMS, CIM
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4 Types of Process Designs
1) Job Shop - Low volume high variety, skilled workers (small bakery)
2) Batch Processing - Moderate volume, moderate variety, moderate skill, equipment less flexible (books, paint, etc)
3) Repetitive (Assembly Line) - High volume, standardized, low skill (TV's, Computers, Automotive)
4) Continuous - High volume, high standard equipment, doesn't turn off, high fixed cost (paper mill, nuclear power plants, oil rig)
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Work/job design
Specifying the content and method of the work or job
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Specialization
Focussing the work or job to a narrow scope
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Job enlargement
Giving a worker a larger portion of the total activity
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Job rotation
Workers periodically exchange jobs
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Job enrichment
Increasing employee responsibilities for planning, execution, and control of job
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Self-directed team
A group of employees who perform the same function and are empowered to make certain decisions and changes in their work
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Methods analysis
Breaks down the job into a sequence of tasks elements motions and improves it
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Flow process chart
Chart used to examine the sequence of steps, tasks, element by focusing on movements of the worker or flow of material
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Worker machine process chart
Used to determine portions of a work cycle during which a worker and his or her machine are busy or idle
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Motion study
Systematic study of the human emotions used to perform a task element
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Motion economy principles
Guidelines for designing motion efficient work procedures
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Slow motion study
use of motion pictures and slow motion to study motions that otherwise would be too rapid to analyze
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Simo chart
A chart that shows the motions performed by each hand, side-by-side, over time
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Ergonomics
Fitting the job to the workers capability and size
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Time study
Determining how long it should take to do a task. Also called work measurement
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Standard Time
amount of time it should take a qualified worker to complete a specified task, working at a sustainable rate, and using given methods, tools and equipment, raw materials, and workplace arrangement.
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Stopwatch Time study
Development of a standard time based on timing one worker over a number of cycles
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Predetermined time standards
Publish data based on extensive research on element motion times
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Work sampling
Technique for estimating the proportion of time that a worker spends on each activity or task or is idle
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Time based pay
Compensation based on length of time an employee works
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Output based pay
Compensation based on amount of output an employee produces
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Skills/knowledge based pay
Rewarding workers who undergo training to increase their skills and knowledge
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Locational breakeven analysis
Identifies the least fixed and variable cost location choice based on quantity to be produced
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Factor rating
involves scoring the factors both quantitative and qualitative and determining the weighted score for each location, and choosing the location with the highest weighted score
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Centre of gravity method
Method for locating a distribution centre or Warehouse that minimizes total distribution cost
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Geographic information system GIS
A computer-based tool for collecting, storing, retrieving, and displaying location dependant demographic data on maps
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Quality
The ability of a good or service to consistently meet or exceed customer expectations
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Quality control
Monitoring, testing, and correcting quality problems after they occur
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Quality assurance
Providing confidence that a product's quality will be good by preventing defects before they occur
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Continuous improvement
NeverEnding improvements to key processes as part of total quality management
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Dimensions of quality of goods
Performance, aesthetics, special features, conformance, reliability, durability, perceived quality, and serviceability
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Conformance to design specifications during production
The degree to which produced goods or services conform to the specifications of the designers
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Failure costs
Cost caused by defective parts or products
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Internal failures
Failures discovered during production
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External failures
Failures discovered after delivery to the consumer
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Appraisal (detection) costs
Cost of inspection and testing
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Prevention cost
Cost of preventing defects from occurring
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Quality at the source
Every employee is responsible for his own work
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Zero defects
The philosophy that any level of defects is too high
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ISO 14000
Set of international standards for assessing a company's environmental performance
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ISO 9001
International standard for quality management system, critical to international business
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HACCP
Quality management system designed for food processors
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Total quality management tqm
an approach to quality management on involves everyone in an organization and quality management and continued effort to improve quality and customer satisfaction
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Poka-yoke (fail-safeing)
incorporating process design elements that prevent mistakes
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Plan do study act pdsa cycle
A problem solving and quality improvement methodology used in the continuous improvement
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Six Sigma
a more sophisticated statistical approach to problem-solving and quality improvement then used in the pdsa cycle of the continuous improvement
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Process flow diagram
A diagram of the steps in a process
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Check sheet
sheet of paper that provides a format for recording and organizing data in a way that facilitates collection and analysis
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Histogram
A chart of the frequency distribution of observed values
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Pareto analysis
Techniques for focussing attention on the most important problem, or opportunity for improvement
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Scatter diagram
A plot of pairs of observations of two variables that can show the correlation between the two variables
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Control chart
A line plot of time ordered values of a sample statistic with control limits
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Cause and effect diagram
A diagram used to organize categorize and possible causes of a problem the effect, also called a fishbone diagram
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Brainstorming
technique for generating a free flow of ideas on finding causes and solutions and implementing the solutions and a group of people
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Quality circle
Group of workers who meet to discuss ways of improving the products or processes
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Benchmarking
Process of measuring and organizations performance against the best in the same or another industry
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Run chart
What time plot that can be used to track the values of a variable over time
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5w2h approach
I'm outside of asking questions about a problem that begins with
What, why, where, when, who, how, and how much
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Statistical quality control
Use of statistical techniques and sampling and monitoring and testing of quality of goods and services
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Inspection
Appraisal of a good or service against standard
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Statistical process control SPC
Statistical evaluation of the product in the production process
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Random variation
Natural variation in the output of a process, created by countless minor factors
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Assignable variation
Non random variability in process output, a variation whose cause can be identified
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Central limit theorem
The distribution of sample averages tends to be normal regardless of shape of the process distribution
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Control chart
A time order plot of a sample statistic with limits
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Control limits
The dividing lines between random and a sign of all deviations from the mean of the distribution
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Type 1 error
Concluding that a process has shifted (an assignable variation is present) when it has not (only random variation is present)
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Type 2 error
Concluding that a process has not shifted (only random variation is present) when it has (an assignable variation is present)
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Sample mean (x) control chart
The control chart for sample mean, used to monitor the process mean
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Simple range (R) control chart
Control chart for sample range, used to monitor process dispersion or spread
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Individual unit (X) control chart
Control chart for individual unit, used to monitor single observations (n=1)
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Moving range (MR) control chart
Control chart for moving range, the difference between consecutive observations, used to monitor their dispersion or spread. When n=1
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P-chart
Control chart for sample proportion of defectives, used to monitor the proportion of defective items generated by a process
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C-chart
Control chart for sample number of defects per unit product, used to monitor the number of defects per unit product
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Design specification
A range of acceptable values established by engineering design or customer requirements
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Process variability
Actual variability in a process for a product
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Process capability
The ability of a process to meet the design specification
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Six Sigma quality
the more advanced version of problem solving, continuous improvement. It also refers to the goal of achieving process variability so small that the half width of design specification equals 6 standard deviations of the process
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Design of experiments
performing experiments by changing levels of factors to measure their influence auto put and identifying best levels for each factor
