Operations Management Test 2 Flashcards
(117 cards)
1
Q
Introductary
A
Heavy investment in Research, Product Development, Process modification and enhancement, supplier development.
2
Q
Growth
A
Stabalized product design, capacity forecasting required to meet demand of customers.
3
Q
Maturity
A
Competitors established, innovation required, cost control and reduction in options.
4
Q
Decline
A
: If the product does not provide high contribution or is not significant to the reputation of the company, drop the product. Management must be ruthless.
5
Q
Product Development Stages 9
A
1) Ideas
2) Does firm have the ability to carry out the idea ?
3) Customer requirements to win orders
4) Functional specifications: How will the product work ?
5) Product Specifications: How the product will be made
6) Design Review: Are these specifications the best way to meet customer requirements?
7) Test Market: Does product meet expectations ?
8) Introduction to market
9) Evaluation ( Success?)
6
Q
Quality Function Development (QFD)
A
Determine the needs and requirements of customers and translating those requirements into target product design.
7
Q
House of Quality – 7 steps to build house of quality
A
1) Identify customer wants
2) Identify how the good/service will satisfy customer wants
3) Relate customer wants to product hows
4) Identify relationship between the firms hows
5) Develop Importance ratings
6) Evaluate competing products
7) Determine desirable technical attributed, your performance and competitors peformance against these attributes.
8
Q
Time-based competition:
A
Competition based on time; rapidly developing products and moving them to the market.
9
Q
Product development continuum; External and Internal
A
External Alliances Joint Ventures Acquire developer Internal Migrations of existing products Ehnance existing products New internally developed products
10
Q
Documents needed for production
A
- Assembly drawing: An exploded view of the product
- Assembly chart: A graphic means of identifyting how components flow into subassemblies and final products.
- Route sheet: A listing of the operations necessary to produce a compenent with the material specified in the bill of material.
- Work order: An instruction to make a particular quantity of an item.
11
Q
- Assembly drawing:
A
An exploded view of the product
12
Q
- Assembly chart:
A
A graphic means of identifyting how components flow into subassemblies and final products.
13
Q
- Route sheet:
A
A listing of the operations necessary to produce a compenent with the material specified in the bill of material.
14
Q
- Work order:
A
An instruction to make a particular quantity of an item.
15
Q
To form a decision tree:
The objective is to determine the expected value of each course of action
A
1) Be sure that all possible alternatives are included in the tree
2) Payoffs are entered at the end of the appropriate branch
3) Calculate values and compare alternatives.
16
Q
Six guidelines for ethical and environmentally friendly designs:
A
1) Use recycled material
2) Use less energy
3) Use recycled materials
4) Use less material
5) Use less harmful ingrediants
6) Use lighter components
17
Q
Benefits of Value engineering and manufacturability:
A
1) Reduced product complexity
2) Reduced environmental impact
3) Standardization of components
4) Improvement of product functional aspects
18
Q
Computer Aided Design (CAD):
A
Interactive use of a computer to develop and document a product
19
Q
Computer Aided Manufacturing (CAM)
A
The use of information technology to control machinery
20
Q
Benefits of CAM/CAD:
A
1) Product Quality
2) Shorter design time
3) Production cost reductions
4) Database availability
5) New range of capabilities
21
Q
Robust Design:
A
The product is designed so that small variations in production or assembly do not affect the production.
22
Q
New product Opportunities 5
A
1) Understanding the customer
2) Sociocultural change
3) Technological change
4) Economical Change
5) Political/Legal change
23
Q
The ability of a product or service to meet customer needs.
A
Quality
24
Q
Activities needed to accomplish TQM:
A
1) Organizational Practices: Leadership, Mission Statement, Training
2) Quality Principles: Customer Focus, JIT, Benchmarking, Continuous Improvement
3) Employee Fulfilment: Empowerment, Organizational Commitment
4) Customer Satisfaction: Winning orders, repeat customers
25
TQM 1) Organizational Practices
Leadership, Mission Statement, Training
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TQM 2) Quality Principles
: Customer Focus, JIT, Benchmarking, Continuous Improvement
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TQM 3) Employee Fulfilment
Empowerment, Organizational Commitment
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TQM 4) Customer Satisfaction
Winning orders, repeat customers
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Implications of Quality 3
1) Company Reputation
2) Product Liability
3) Global Implications
30
The cost of Quality (Cost of doing things wrong) 4
1) Prevention Costs: Costs associated with reducing the potential for defective parts or services ( Training, Quality Improvement Programs )
2) Appraisal Costs: Costs related to evaluation the products, processes, parts and services ( Testing, labs, inspectors )
3) Internal Failure: Costs that result from production before delivery to customer. (Downtime, Scrap)
4) External costs: Costs that occur after delivering the product to the customer. ( Reputation, liabilities, cost to society)
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1) Prevention Costs:
Costs associated with reducing the potential for defective parts or services ( Training, Quality Improvement Programs )
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2) Appraisal Costs:
Costs related to evaluation the products, processes, parts and services ( Testing, labs, inspectors )
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3) Internal Failure:
Costs that result from production before delivery to customer. (Downtime, Scrap)
34
4) External failure costs
Costs that occur after delivering the product to the customer. ( Reputation, liabilities, cost to society)
35
ISO9000
A set of quality standards developed by the International Organization of Standardization
36
ISO9000 focuses on:
Quality management procedures, leadership, detailed documentation, work instructions and record keeping.
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ISO14000
A series of environmental management standards evaluated by the International Organization of Standardization
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5 Elements of ISO14000
Environmental Management, Auditing, Performance evaluation, Labelling and life cycle assessment.
39
Total Quality Management
Management of an entire organization so that it excels in all aspects of products and services that are important to the customer.
40
7 Concepts of TQM:
1) Benchmarking
2) Continuous Improvement
3) Just in Time
4) Six Sigma
5) Employee Empowerment
6) Taguchi Concepts
7) Knowledge of TQM tools
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Continuous Improvement (Steps) 4
1. Plan; Identify the problem and make a plan
2. Do; Test the plan
3. Check; is the plan working?
4. Act; Implement the plan and document
42
Six Sigma
A program to save time, improve quality and lower costs by reducing defects.
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DMAIC
```
Define: Projects purpose
Measure: The process and collect data
Analyze: The data
Improve: By modifying and redesigning
Control: The new process
```
44
Employee Empowerment:
Enlarging employee jobs so that the added responsibility and authority is moved to the lowest level possible in an organization.
45
Techniques for Employee Empowerment:
1) Building communication networks that include employees
2) Developing open and supportive supervisors
3) Moving responsibility from managers to production employees
4) Building high morale
5) Formal organizational structures
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Benchmarking
Selecting a demonstrated standard of performance that represents the very best performance for a process or activity.
47
Steps for developing benchmarks: 5
1) Determine what to benchmark
2) Gather benchmarking team
3) Identify benchmarking partners
4) Collect and analyze benchmarking information
5) Take action to match/exceed the benchmark
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Performance measures of benchmarking: 5
1) Customer Satisfaction
2) Product defects
3) Cost per unit
4) Processing time
5) ROI
49
Just in Time advantages:
1) Cuts the cost of quality
2) Improves quality
3) Less inventory
50
Quality robust:
Products are consistently built around customer needs in spite of adverse conditions in the production process.
51
7 Tools of Total Quality Management
1) Check Sheet: An organized method of recording data
2) Scatter diagram: A graph of the value of one variable vs. another variable. ( Shows relationship between 2 measurements )
3) Cause and effect diagram: A tool that identifies process elements that may affect an outcome
4) Pareto Charts: A graph that identifies and plots problems or defects in descending order of frequency
5) Flowchart: Block diagrams that graphically describe a process/system
6) Histogram: A distribution that shows the frequency of occurrences of a variable
7) Statistical process control chart: A process used to monitor standards, make measurements and take corrective action as a product/service is being produced.
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1) Check Sheet:
An organized method of recording data
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2) Scatter diagram
A graph of the value of one variable vs. another variable. ( Shows relationship between 2 measurements )
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3) Cause and effect diagram
A tool that identifies process elements that may affect an outcome
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4) Pareto Charts:
A graph that identifies and plots problems or defects in descending order of frequency
56
5) Flowchart
Block diagrams that graphically describe a process/system
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6) Histogram
A distribution that shows the frequency of occurrences of a variable
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7) Statistical process control chart:
A process used to monitor standards, make measurements and take corrective action as a product/service is being produced.
59
Production Processes: 4
1) Process Focus: A production facility organized around processes to facilitate low-volume high-variety production. ( Surgery )
2) Repetitive process: A product-oriented production process that uses modules. ( Example Harley Davidson)
3) Product Focus: A production facility organized around products; product oriented and high-volume low variety production. ( Example Lays )
4) Mass customization: Rapid, low-cost production that caters to constantly changing unique customer desires. (Example Dell )
60
1) Process Focus:
A production facility organized around processes to facilitate low-volume high-variety production. ( Surgery )
61
2) Repetitive process:
A product-oriented production process that uses modules. ( Example Harley Davidson)
62
3) Product Focus:
: A production facility organized around products; product oriented and high-volume low variety production. ( Example Lays
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4) Mass customization:
Rapid, low-cost production that caters to constantly changing unique customer desires. (Example Dell )
64
Tools of Process Analysis
Flowchart: A drawing used to analyze movement of people and materials
Time-function mapping: A flowchart with time added on the horizontal axis
Process charts: Charts that use symbols to analyze the movement of people and materials
Automatic Identification Systems: A system for transforming data into electronic form (Example: Bar Codes)
Vision systems: Systems that use video cameras and computer technology in inspection roles.
ASAR Systems (Automated Storage and Retrieval Systems):
Computer controlled warehouses that provide for the automatic placement of parts into and from designated places within the warehouse.
Automatic Guided Vehicle: Electronically guided and controlled cart used to move materials
Computer Integrated Manufacturing:
A manufacturing system where CAD,FMS, Inventory Control, Warehousing and shipping are integrated.
65
Flowchart
A drawing used to analyze movement of people and materials
66
Time-function mapping
A flowchart with time added on the horizontal axis
67
Process charts:
Charts that use symbols to analyze the movement of people and materials
68
Automatic Identification Systems:
A system for transforming data into electronic form (Example: Bar Codes)
69
Vision systems
Systems that use video cameras and computer technology in inspection roles.
70
ASAR Systems (Automated Storage and Retrieval Systems):
Computer controlled warehouses that provide for the automatic placement of parts into and from designated places within the warehouse.
71
Automatic Guided Vehicle
Electronically guided and controlled cart used to move materials
72
Computer Integrated Manufacturing:
A manufacturing system where CAD,FMS, Inventory Control, Warehousing and shipping are integrated.
73
4 Rs of Sustainability
Recycle
From production creating from recycled materials and creating recyclable products
Reputation
It is rewarding to be a leader in sustainability
Regulations
Must abide by legal requirements
Resources
Used by the production process, reducing resources lowers cost. Positive force for sustainability
74
Layout design must consider achieving:
1) Higher utilization of equipment, people and space
2) Improved flow of information and materials
3) Improved employee morale and safer working conditions
4) Improved customer interaction
5) Flexibility ( Layout will eventually need to change)
75
Types of Layouts:
Office Layout: Positions workers, their equipment, and spaces/offices to provide for movement of information.
Retail Layout: Allocates shelf space and responds to customer behaviour
Warehouse Layout: Addresses trade-offs between space and materials handling
Fixed-position Layout: Addresses the layout requirements of large, bulky projects ( Like Ships and buildings)
Process oriented Layout: Deals with low volume and high variety production
Work-cell layout: Arranges machinery and equipment to focus on production of a single product or group of related products
Product-oriented layout: Seeks the best personnel and machine utilization in repetitive or continuous production
76
Office Layout
: Positions workers, their equipment, and spaces/offices to provide for movement of information.
77
Retail Layout:
Allocates shelf space and responds to customer behaviour
78
Warehouse Layout
Addresses trade-offs between space and materials handling
79
Fixed-position Layout
Addresses the layout requirements of large, bulky projects ( Like Ships and buildings)
80
Process oriented Layout
Deals with low volume and high variety production
81
Work-cell layout:
Arranges machinery and equipment to focus on production of a single product or group of related products
82
Product-oriented layout
Seeks the best personnel and machine utilization in repetitive or continuous production
83
Important issues in Office Layout:
1) Importance placed on flow of information
2) Comfort, safety, working conditions, teamwork, authority
3) Relationship chart: Office layout tool used to achieve most employee effectiveness
4) Trends in Office Layout: Technology allows layout flexibility by moving information electronically
5) Modern firms create dynamic needs for space/services
84
3) Relationship chart:
Office layout tool used to achieve most employee effectiveness
85
4) Trends in Office Layout
: Technology allows layout flexibility by moving information electronically
86
Five ideas for determining arrangement of Retail Layouts:
1) Locate high draw items around the periphery of the store
2) Use prominent locations for high impulse and high margin items
3) Distribute power items to both sides of the aisle and disperse them to increase viewing of other items.
4) Use end aisle locations due to their high exposure rate
5) Select the position of the lead-off department carefully.
87
Modern Warehouse Management Objectives:
1) Utilizes its full volume while maintaining low material handling costs
2) Minimize spoilage and damage of warehouse materials
88
ASRS (Automated Storage and retrieval Systems):
Computer controlled warehouses that provide for the automatic placement of parts into and from designated places within a warehouse.
89
Cross docking:
Avoiding the placement of materials or supplies in storage by processing them as they are received for shipment.
90
Random Stocking
Used in warehousing to locate stock wherever there is an open location
- Allows rapid item identifications (Usually VIA bar codes
91
Random Stocking Systems include the following tasks:
1) Maintaining a list of “open” locations
2) Maintaining record of existing inventory and its locations
3) Sequencing items to minimize the travel times to “pick orders”
4) Combining orders to reduce picking time
5) Minimizing total distance travelled by arranging items
92
Fixed Position Layout:
Project remains in one place and workers and equipment come to that one area.
93
Fixed Position Layout factors:
- Limited space
- Different materials needed at different stages
- Volumes of materials needed is dynamic
- An alternate strategy is to complete as much of the project offsite (Example; Houses/Ships)
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Process Oriented Layout:
A layout that deals with low-volume high-variety production in which like machines and equipment are grouped together
95
Process Oriented Layout most effective when:
- Making products with different requirements
| - When handling customers or patients with different needs.
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Work Cell
An arrangement of machines and personnel that focuses on making a single product or family of related products
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Work Cell Requirements:
1) Identification of families of products
2) High level of training, flexibility and employee empowerment
3) Self-contained with its own equipment and resources
4) Test at each station in the cell
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Labour Planning Policies: 2
1) Follow Demand exactly:
- Matches direct labour costs to production
- Labour is treated as a variable cost
- Incurs cost in hiring, termination and unemployment
2) Hold Employment Constant
- Maintain trained workforce
- Minimize hiring, termination and unemployment costs
- Employees may be underutilized during slack periods
- Labor is treated as a fixed cost
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1) Follow Demand exactly:
- Matches direct labour costs to production
- Labour is treated as a variable cost
- Incurs cost in hiring, termination and unemployment
100
2) Hold Employment Constant
- Maintain trained workforce
- Minimize hiring, termination and unemployment costs
- Employees may be underutilized during slack periods
- Labor is treated as a fixed cost
101
Constraints of Human Resources Strategy 6
1) Schedules: Time of day and stability of schedules
2) Product Strategy: Skills needed, Safety
3) Location Strategy: Light, Temperature, Noise
4) Process Strategy: Technology, Machinery and equipment used
5) Individual Differences: Strength and fatigue, Information processing
6) Layout Strategy: Process, Assembly line, work cell
102
5 components of job design:
1) Job Specialization: The division of labour into unique “special” tasks
2) Job Enlargement: The grouping of a variety of tasks about the same skill level; horizontal enlargement.
3) Job Rotation: A system in which an employee is moved from one specialized job to another
4) Job Enrichment: A method of giving an employee more responsibility that includes some of the planning and control necessary for job accomplishment; Vertical expansion.
5) Employee Empowerment: Enlarging employee jobs so that the added responsibility and authority is moved to the lowest possible level.
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1) Job Specialization:
The division of labour into unique “special” tasks
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2) Job Enlargement:
The grouping of a variety of tasks about the same skill level; horizontal enlargement.
105
3) Job Rotation
A system in which an employee is moved from one specialized job to another
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4) Job Enrichment:
A method of giving an employee more responsibility that includes some of the planning and control necessary for job accomplishment; Vertical expansion.
107
5) Employee Empowerment
Enlarging employee jobs so that the added responsibility and authority is moved to the lowest possible level.
108
Benefits of Standardization: 3
1) Development of dexterity
2) Less loss of time
3) Development of specialized tools
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Ergonomics
The study of human interface with the environment and machines
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- Ergonomics includes 3
Operator inputs to machines, feedback to operators, the work environment (illumination, noise, temperature)
111
Core job characteristics:
1) Skill variety
2) Job identity
3) Job significance
4) Autonomy
5) Feedback
112
Methods Analysis
An analysis focused on how the task is performed
113
Methods Analysis used to analyze:
- Movement of individuals and materials: Flow diagrams and process charts
- Activities of human and machine and crew activity: Activity Charts
- Body movement: Operations charts
114
Labour Standards set in 4 ways:
- Historical Experience (How the task was performed last time)
- Time studies (Involves timing a sample of worker’s performance and using it to set a standard)
- Predetermined time standards (Divide manual work into small basic elements that has established times.)
- Work sampling (Estimates percentage of time a worker spends on various tasks)
115
How to use time studies to compute standard time
1) Gather all information and organize it
2) Remove outliers in each job element
3) Average the observations
4) Multiply by % ( Performance rating )
5) Add all
6) Divide added number over 1 minus the fatigue allowance
116
Benefits of Teams and Expanded Job designs
1) Improved quality of life
2) Improved job satisfaction
3) Increased motivation
4) Allows employee to accept more responsibility
5) Improved productivity and quality
117
Motivations and Incentive Systems
1) Bonuses
2) Profit sharing
3) Gain sharing
4) Incentive plans
5) Knowledge based systems
