Exam May Flashcards
(48 cards)
5 elements of process view
Input/Outtput
Flow Unit
Network of activities/buffers
Resources
Info structure
Customer Value Proposition
A set of benefits that the firm offers to customers
Process competencies
4 examples
Determines the product attributes that the process is good at supplying
Cost = total cost of producing and delivering
Flexibility = Scope and volume, coping with fluctuation of demand
Quality = Delivering quality
Flow Time = total time needed to transform a flow unit from in to ouput
Describe Job Structure
Where small batches of a variety of custom products are made
tex: general hospitals or consultancy firms
- High adaptablility
- Produces a wide range
- High quality
- High variable cost
- Difficult product tracing
Describe Flow Shop Structure
Where there is a small variety produced in large amounts. Mass Production.
- Standardised
- Sequential workflow
- Automated
-Low VC
If input rate > output rate…
Inventory accumulates
If input rate < output rate
No inventory accumulates
Stable Process
In the long run, the average inflow rate=average outflow rate
Theoretical Flow Time
Sum of all activity times
Flow Time Process
Sum of all flow times
How can you reduce flow time via activity time
restructuring activities
reduce non contributing activities
Work faster
Do it right first time
Throughput.
How do you calc it?
Average number of flow units that flow through a stable process
Observe process over time
Measure number of units processed over the selected period
Compute average number of units per unit of time
Capacity
Maximum Sustainable Throughput
Resource pool
A collection of interchangeable resources that can perform an identical set of activities
Unit load
The average amount of time required for processing
Effective capacity
the realistic output a process can achieve under normal operating conditions, factoring in downtime, inefficiencies, and variations.
Resource Pooling
Combining separate resource pools into a single more flexible pool that is able to perform several activities
Pros of keeping inventory
Economies of scale
Production and capacity smoothing
Stock out protection
Cons of keeping inventory
Cost of it
Opportunity costs
Delayed Differentiation
Where a product remains generic for as long as possible in the manufacturing process.
Service Level
The probability that demand during the lead time will not exceed the inventory on hand.
What are three key factors affecting safety inventory
- Required service level
- The uncertainty in demand
- The lead time
Levers for reducing safety inventory
Reducing lead time
* Reducing demand uncertainty
* Better forecasting
* Demand aggregation
* Shortening forecast horizon
Name features of quality
Performance
➢ Features
➢ Reliability
➢ Conformance
➢ Durability
➢ Serviceability
➢ Aesthetics
➢ Perceived Quality
