Test 2 Flashcards

(55 cards)

1
Q

Capacity

A

The upper limit on the load an operating unit can handle.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
2
Q

What affects capacity needs?

A

Equipment
Space
Employee skills

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
3
Q

What is the goal of strategic capacity planning?

A

To match long-term supply capabilities and predicted levels of long-term demand.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
4
Q

Overcapacity

A

Operating costs that are too high.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
5
Q

Undercapacity

A

Strained resources and possible loss of customers.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
6
Q

Key questions for capacity planning

A

What kind of capacity is needed?
How much is needed to match demand?
When is it needed?

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
7
Q

Three capacity strategies

A

Leading
Following
Tracking

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
8
Q

Leading capacity strategy

A

Build capacity for future demand increases

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
9
Q

Following capacity strategy

A

Build capacity when demand exceeds current capacity

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
10
Q

Tracking capacity strategy

A

Similar to following but in smaller increments.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
11
Q

Design (Theoretical) Capacity

A

Maximum output rate or service capacity an operation is designed for

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
12
Q

Effective Capacity

A

Design capacity minus inefficiencies.

Cannot exceed design capacity.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
13
Q

Actual output

A

rate of output actually achieved - cannot exceed effective capacity

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
14
Q

Efficiency equation

A

Actual output/effective capacity x 100%

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
15
Q

Utilization equation

A

Actual output/design capacity x 100%

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
16
Q

Determinants of effective capacity

A
Facilities (size, layout, transportation)
Product and service factors (non-uniformity of output, product mix)
Process Factors (productivity, quality)
Human factors (Tasks, skills, turnover)
Policy (Overtime)
Operational (Materials, Breakdowns)
Supply chain (Distributors)
External (Regulations)
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
17
Q

Bottleneck operation

A

an operation whose capacity is lower than other operations in a sequence.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
18
Q

What determines service capacity?

A

The need to be near customers
Degree of demand volatility
The inability to store services

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
19
Q

Capacity cushion/ safety capacity

A

Extra capacity used to offset demand uncertainty

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
20
Q

Capacity cushion equation

A

Capacity - expected demand

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
21
Q

Demand Management Strategies

A

Strategies to shift demand from peak periods to slower periods.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
22
Q

How to calculate processing requirements

A

Add up total processing time for each product.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
23
Q

Economies of scale

A

If output rate is less than optimal level, increasing the output rate results in decrease average unit costs.

24
Q

Diseconomies of scale

A

If output rate is more than optimal level, increasing the output rate results in increasing average unit costs.

25
What problems might diseconomies of scale cause?
Congestion (transportation) Complexity Inflexibility Additional levels of management
26
Break Even Point
Fixed Costs/(Rev-Variable cost)
27
Indifference point
The quantity at which two competing alternatives would be the same.
28
Process Selection
decides the way production of goods or services will be organized
29
What drives Process Choice?
demand: - variety (how much) - volume (expected output) - flexibility
30
Implications of Process Selection
Capacity planning Layout of facilities Equipment Design of work systems
31
Job Shop
small scale, highly customized ie. eye glasses
32
Batch Processing
Moderate volume, high flexibility ie. bakery
33
Assembly Line
high volume, high standardization
34
Continuous
high volume of non-discrete goods (gasoline)
35
Product-Process Matrix
variety (x) v volume (y) diagonal represents ideal match above diagonal --> opportunity costs below diagonal --> out of pocket costs
36
Project
used for work that is none routine with a unique set of objective to be accomplished in a limited time frame ie. plays, movies
37
Product/Service Profiling
Linking key product/service requirements to process capabilities
38
Layout
the configuration of departments, work centers, and equipment, with particular emphasis on movement of work (customers or materials) through the system
39
Layout Design Objectives
Facilitate a smooth flow of work, material, and information through the system
40
Product Layout
Layout that uses standardized processing operations to achieve smooth, rapid, high-volume flow
41
Process Layout
Layout that can handle varied processing requirements | -intermittent processing, job shop, batch
42
Fixed Position Layout
Layout in which the product or project remains stationary, and workers, materials, and equipment are moved as needed
43
Designing process layouts
- -A list of work stations (departments) to be arranged and their dimensions - -A projection of future work flows between the pairs of work centers - -The distance between locations - and the cost per unit of distance to move loads between them - -The amount of money to be invested in the layout - -A list of any special considerations - -The location of key utilities, access and exit points
44
Heuristic for process layout
Assign departments with the greatest interdepartmental work flow first -> to locations that are closet to each other
45
Muther's Grid
- considers multiple qualitative criteria | - Indicates the relative importance of each combination of department pairs.
46
Computerized Layout Solutions
CRAFT, CORELAP, PROMODEL and EXTEND, THREE-D MODELING and CAD
47
Process Layout Advantages
- Can handle a variety of processing requirements - Not vulnerable to equipment failures - General-purpose equipment is cheaper
48
Process Layout Disadvantages
- routing and scheduling - equipment utilization is low - material handling is slow - complicates supervision - special attention needed for each product - accounting, inventory control, and purchasing more complex
49
Bottleneck Operation
An operation in a sequence of operations whose capacity is lower than that of the other operations
50
Line Balancing
The process of assigning tasks to workstations in such a way that the workstations have approximately equal time requirements
51
Precedence Diagram
A diagram that shows elemental tasks and their precedence requirements
52
Cycle Time
The maximum time allowed at each workstation to complete its set of tasks on a unit Minimum Cycle Time = longest task time Maximum Cycle time = Σt = sum of task time
53
Heuristics to assigning tasks to workstations
- Assign tasks in order of most following tasks | - Assign tasks in order of greatest positional weight
54
Balance Delay
% of idle time of a line
55
Efficiency
% of busy time of a line