Operations and Supply Chain Management Flashcards
1
Q
What is operations management?
A
The systematic design, direction and control of processes that transform inputs in to products and services for internal and external customers.
2
Q
What is supply chain management?
A
The synchronization of a firms processes and suppliers and customer that match the flow of materials & information with customer demand.
3
Q
What is a process?
A
Activities/group of activities that takes inputs and transforms them in to one or more outputs for its customers.
4
Q
Explain Supply chain point of view?
A
Each process should add value to the proceeding one (Waste should be eliminated)
5
Q
What are competitive priorities?
A
Critical dimensions a supply chain must complete to satisfy all customers now and future
6
Q
What are competitive capabilities?
A
Cost, Quality, time, flexibility actual processes in a supply chain
7
Q
What are order winners?
A
How customers differentiate the service/product of a firm from another
8
Q
What are order qualifiers?
A
minimum level required from a set of criteria.
9
Q
Explain low cost operation
A
Lowest possible cost for a customer e.g. Costco
10
Q
Explain Top quality?
A
Quality with no compromise e.g. Rolex
11
Q
Explain Consistent Quality
A
A service or product that = design specifications consistently e.g. McDonalds
12
Q
Explain Delivery Speed
A
Ability to quickly fill orders e.g. Dell
13
Q
Explain On Time Delivery
A
Meeting agreed time delivery’s e.g. UPS
14
Q
Explain Development Speed
A
Fast introduction of a new product e.g. Zara
15
Q
What is productivity?
A
Outputs/Inputs
16
Q
What is the Labor productivity equation?
A
of products sold / # of employee hours
17
Q
What is the multi factor productivity equation?
A
Value of output / labor costs + materials + overheads
18
Q
What are projects?
A
Interrelated set of activities with a definite starting and end point. Results in a unique outcome from specific resources.
19
Q
What are two attributes of projects?
A
- The are temporary
- They are unique
- Projects can be called a program
20
Q
What is the main goal of a project?
A
- Complete on time
- On budget
- Meet specifications
21
Q
What is project management?
A
Systemised, phased approach to defining, organisation, planning, monitoring and controlling projects
22
Q
What makes a good project manager?
A
The can facilitate, communicate and make decisions
23
Q
What makes a good project team?
A
- Technical competence
- Sensitivity
- Dedication
24
Q
Explain a Work break down structure?
A
- Break down of all required tasks that must be completed
- Each activity has an owner
25
What is PERT?
(Program Evaluation Review Technique)
| - The process of reviewing the WBS to make sure everything is running to plan
26
What is planning?
What needs to be done
27
Explain scheduling
The timing aspect
28
Explain Strategic Fit
- Are we conducting the right process for this organization to get what we want?
29
What is project team capability?
Do we have the right people for the job?
30
Risk management plan in operations.
What are the potential risks?
31
What are the 4 T's of Risk management?
- Tolerance, How much can we absorb?
- Transfer, can we give the risk to someone else?
- Treat, how can we increase/decrease exposure?
- Terminate, what is the exit strategy?
32
What are the 6 reasons projects fail?
- Poorly defined requirements
- Poor control
- Inadequate testing
- Failure to kill
- Unrealistic
- Scope Creep
33
What is process strategy?
A pattern of decisions made in managing processes, so that the processes will achieve their competitive priorities.
34
What is Job Process?
- Produce wide varieties of products
- Large quantities
- has large divergence in steps performed
35
What is Batch Process?
- Only manufactures when a reasonable number of orders come in
- Only a few products
- Not very large quantity
36
What is Line Process?
- Products are standardized
- High volumes
- Resources can be organized around product
37
What is Continuous Process?
- Extreme High volume
- Highly standardized
- ridged line flows
- doesn't stop
38
What are the negatives of customer involvement?
- Can be disruptive
- hard to manage timing and volume
- Quality measurement can be difficult
- Requires interpersonal skills
- Office layouts might have to be revised
- multiple locations might be necessary
39
How to construct a new layout?
1. Gather information
2. Develop a block plan
3. Design a detailed layout
40
What are two types of automation in manufacturing/
- Flexible
| - Fixed
41
What are the elements to process analysis
- Define scope
- Establish boundaries
- Should match available resources
- Beware of scope creep
- May involve a team
- Must be agreed upon
42
What are some ways of documenting the process?
1. FlowChart
2. Service Blueprints
3. Process Charts
4. Walk Through
43
What is TQM?
Total quality management is made up of 3 elements
1. Customer Satisfaction
2. Employee Involvement
3. Continuos Improvement
44
What is the KAIZEN method?
The idea that a process must be continuously improved.
45
What is the JIDOKA method?
Finding a problem and correcting it.
46
What are the 7 tools in Quality?
1. Checklists
2. Histograms
3. Prato Charts
4. Scatter diagrams
5. Cause and effect diagrams
6. Flow Chart
7. Control Charts
47
Explain 6 sigma
system for controlling and minimising defects and variability in a process.
48
What some types of constraints?
- Physical (capacity workstation)
- Managerial (policy metrics, mindset)
- Market - Demand
49
What is a bottle neck?
A capacity constraint resource whose available capacity limits the organizations ability to meet product volume or mix
50
What is the Theory of Constraints?
Management approach, profit maximisation, through effective use of resources.
51
What is the drum buffer approach?
Drum - sets the beat for the production rate
Buffer - time buffer that plans early flows into the bottle neck and thus protects
Rope - Feedback loop sync's with the drum.
52
Explain JIT
Just in time - production that happens once the order has been made.
53
What are some problems with JIT?
- Material shortage
- Machine Breakdowns
- workers absent
- quality problems
- workload imperfections
54
What are the 8 types of MUDA?
1. Overproduction
2. Inappropriate production
3. Waiting
4. Transportation
5. Motion
6. Defects
7. Underutilisation
8. Inferior
55
What are the 5 best workplace practices Model?
```
Sort
Straighten
Sustain
Shine
Standardise
```
56
What is TPM?
Total production maintenance - Having resources regularly checked for functionality (Worker are responsible for maintenance, better performance, prevents unplanned down time)
57
The KanBan System
Works with containers & cards that have the instruments on what needs to be complete to make the product
58
What is the value stream?
Qualitative lean tool for eliminating waste
| - Creates a visual map of every process involved in the flow of materials and information in products value chain.
59
What are some types of decision making tools?
- Break-even analysis
- Preference matrix
- Decision theory
- Decision tree
60
What is the break even analysis?
At what point do we sell enough products to cover our variable and fixed costs (C+F=Q)
61
What is a preference matrix?
Uses a weighted score against various performance criteria.
62
What is maximin?
The best of the worst Pessimistic
63
What is Maximax?
The best of the best Optimistic
64
What is Laplace?
Best weighted score
65
What is the minimax regret?
Minimizing your regret Pessimistic
66
What are the pressures of small inventories?
- Cost, storage, holding, capital
- Shrinkage
- Insurance
- Taxes
67
What are some pressures of large inventories?
- Customer service
- Ordering cost
- Setup cost
- Labor and equipment utilization
- Transportation cost
- Payments to suppliers
68
What are some types of inventory?
Cycle inventory - Varies with lot size
Safety stock inventory - Protects against supply uncertainties
Anticipation Inventory - Protects against uneven supply or demand
Pipeline inventory - Orders placed by not received
69
What is economic order quantity five assumptions?
- Demand rate is constant
- No constraints are place on the size of each lot
- The only two relevant costs are the inventory holding cost and the foxed cost per lot for ordering setup
- decisions for one item can be made independently of decisions for other items
- Lead time is constant and known with certainty
70
Use the EOQ strategy
- make to stock
| - Carrying and setups costs are known and stable
71
Modify the EOQ strategy
- Quantity discounts
| - Replenishment not instantaneous
72
Don't use the EOQ
- Make to order
| - Order size is constrained
73
Explain ABC Classification
Determine level of control and frequency of review of inventory items (SKU, Pareto Chart,Cycle counting)
74
How to calculate weeks supply?
Average aggregated inventory value / Weekly sales at cost
75
how to calculate inventory turnover?
Annual sales/ average aggregate inventory value
76
What is mass customization?
A strategy where processes generate a wide variety of customised services or products at reasonably low costs
77
What is backward integration?
Upstream integration of supply side activities: Raw materials and supplies
78
What is Forward Integration?
Integration of distribution side activities. e.g. transport ware house stores
79
What is supply chain integration?
The effective coordination of supply chain processes through the seamless flow of information up and down the supply chain.
80
What are the dominant location factors in manufacturing?
- Favorable labor climate
- Proximity to markets
- Impact on environment
- Quality of life
- Proximity to suppliers and resources
- Utilities, taxes, and real estate costs
81
What are the dominate location factors in services?
- impact of location on sales and customer satisfaction
- Proximity to customers
- Transportation costs and proximity to markets
- Location of competitors
- Site-specific factors
82
The bullwhip effect?
Each time a supply chain requests a quality of a product they are adding a % on top of the last person who looked at the order. Slowly causing the quantity to be exaggerated.
83
What is the SCOR Model?
```
Plan
Source
Make
Delivery
Return
```
84
What is sustainability?
A characteristic of processes that are meeting humanity's needs without harming future generations
85
Explain the Triple bottom line
The idea that we have three added costs at the bottom of our balance sheet. Social, Environmental, Financial
86
What are reverse logistics?
The process of planning implementating and controlling the efficient, cost-effective flow of products, materials and information from the point of consumption back to the point of origin for returns, repair, remanufacture or recycling.
87
What is a forecast?
A prediction of future events used for planning purposes
88
What are the steps in forecasting?
- Decide what needs to be forecast
- Evaluate and analyse appropriate data
- Select and test the forecasting model
- Generate the forecast
- Monitor forecast accuracy over time
89
What are the three types of forecasting models?
Informal (intuitive)
Qualitative (educated guess)
Quantitative (mathematical)
90
What is exponential smoothing?
The emphasis given to the most recent demand levels can be adjusted by changing the smoothing parameter.
91
Explain forecast error
For any forecasting method, it is important to measure the accuracy of its forecasts
92
Forecasting process
1. Adjust history file
2. Prepare initial forecasts
3. Consensus meetings and collaboration
4. Revise forecasts
5. Review by operating committee
6. Finalise and communicate
93
What is CPFR (Collaborative planning, forecasting and replenishment)?
A process for supply chain integration that allows a supplier and its customers to collaborate on making the forecast by using the internet
94
What is operations palling and scheduling?
The process of balancing supply with demand, from the aggregate level down to the short term scheduling level.
95
What is demand management?
The process of changing demand patterns using one or more demand options.
96
Explain Yield (Revenue) Mangement
Varying price for different customer segments to maximize revenue of existing supply capacity
97
What are three planning strategies?
- Chase, Hiring and firing employees to mach forecast
- Level, Keep workforce constrant but varies utilisation
- Mixed, Considers both options
98
What is FCFS, LCFS, EDD?
- First come first served
- Last come first served
- Earliest Due date
