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- 1ProcessAny activity or group of activities that takes one or more inputs, transforms them and provides one or more outputs for its customers.
- 2OperationsA group of resources performing all or part of one or more processes
- 3Supply ChainAn interrelated series of processes within and across firms that produces a service or product to the satisfaction of customers
- 4GoodsPhysical items that include raw materials,
parts, subassemblies, and final products - 5ServicesActivities that provide some combination of
time, location, form or psychological value
e.g. air travel, education, haircut, etc. - 6Manufacturing process characteristics*Physical, durable output
*Output can be inventoried
*Low customer contact
*Long response time
*Capital intensive
*Quality easily measured - 7Service process characteristics*Service process characteristics
- 8Products are typically neither purely service- or purely goods-basedTrue
- 9Inputs*Land
•Labor
•Capital
•Information - 10Outputs*Goods
•Services - 11ProductivityA measure of the effective use of resources, usually expressed as the ratio of output to input
- 12Productivity measures are useful forTracking an operating unit’s performance over time
- 13Productivity EquationOutput/ Input
- 14Partial measures equations
- 15Multifactor measures equationOutput/Multiple Inputs; output/ labor + machine; Output/ Labor + Capital + Energy
- 16Total measure equationGoods or services produced/ All inputs used to produced them
- 17Determine the productivity for these cases: 1) Four workers installed 720 square yards of carpeting in eight hours. What is labor productivity?ANSWER: 22.5
EXPLANATION= 720/ (4*8)= 22.5 - 18Determine the productivity for these cases: 2) A machine produced 70 pieces in two hours. However, two pieces were unusable. What is the machine productivity?ANSWER: 34
EXPLANATION: 70-2= 68
70/68= 34 pieces per hour - 19Determine the productivity for these cases: 3) A machine produced 7040 units with consumption of labor ($1000), Materials ($520) and overhead ($2000). What is the multifactor productivity?ANSWER: 2
EXPLANATION: 7040/ (1,000 + 520 + 2,000)= 2 - 20Productivity growth[(Current Productivity - previous productivity) / previous productivity] X 100%
- 21CompetitivenessHow effectively an organization meets the wants and needs of customers relative to others that offer similar goods or services.
- 22Hierarchical PlanningMission--> Goals--> Organizational strategies--> Function strategies--> Tactics
- 23MissionThe reason for an organization's existence
- 24Mission statement*States the purpose of the organization
*The mission statement should answer the question of “What business
are we in?” - 25Goals*Provide details and the scope of the mission
*Goals can be viewed as organizational destinations - 26StrategyA plan for achieving organizational goals
- 27Organizations haveOrganizational strategies:
*Overall strategies that relate to the entire organization
*Support the achievement of organizational goals and mission
Functional level strategies:
* Strategies that relate to each of the functional areas and that support achievement of the
organizational strategy - 28Tactics* The methods and actions taken to accomplish strategies
* The “how to” part of the process - 29OperationsThe actual “doing” part of the process
- 30Effective strategy formulation requires taking into account:1. Core competencies
2. Environmental scanning
3. Order qualifiers
4. Order winners - 31Core CompetenciesThe special attributes or abilities that give an organization a competitive edge
e.g.Flexibility, Time, Cost, Quality, Service - 32To be effective core competencies and strategies need to be alignedT
- 33Environmental scanningis necessary to identify SWOT
- 34Internal FactorsStrengths and weaknesses:
1. Human resources
2. Facilities and equipment
3. Financial resources
4. Customers
5. Products and services
6. Technology
7. Suppliers - 35External FactorsOpportunities and Threats:
1. Economic conditions
2. Political conditions
3. Legal environment
4. Technology
5. Competition
6. Markets - 36Forecast*a statement about the future value of a
variable of interest
*We make forecasts about such things as weather, demand, and resource availability - 37Forecasting ApproachesQualitative Forecasting (subjective inputs):
*Qualitative techniques permit the inclusion of soft information such as:
* Human factors
* Personal opinions
Quantitative forecasting:
*These techniques rely on hard data
* Quantitative techniques involve either the projection of historical data or
the development of associative methods that attempt to use causal
variables to make a forecast - 38Time Series ForecastsForecasts that project patterns identified in recent time-series observations
- 39Time-Series Behaviors* Trend
* Seasonality
* Cycles
* Irregular variations
* Random variation - 40Naïve forecastUses a single previous value of a time series as the basis for a forecast
- 41Forecasting methods:1. Moving average
2. Weighted moving average
3. Exponential smoothing - 42Moving AverageTechnique that averages a number of the most recent actual
values in generating a forecast
*Fewer data points used—more responsive*
* More data points used—less responsive* - 43Moving Average EquationF6 = (A3+A4+A5)/3
Fx= (adding last 3) / by 3 - 44Weighted Moving AverageThe most recent values in a time series are given more weight in computing a forecast
- 45Compute a weighted average forecast for the Week 6 using a weight of .40 for the most recent period, .30 for the next most recent, .20 for the next, and .10 for the nextF6 = A5*w5+A4*w4+A3*w3+A2*w2 = 41*0.4+40*0.3+43*0.2+40*0.1 = 41
- 46Exponential SmoothingA weighted averaging method that is based on the previous forecast plus a percentage of the forecast error.
- 47Exponential smoothing equationFt= Ft-1+ α (At-1 - Ft-1)
Ft= Forcast for period t
Ft-1= Forcast for the previous period
α= Smoothing constant
At-1= Sales from the previous period - 48According to the demand table above, forecast the demand of Week 6 using exponential smoothing method (α = 0.1)F3 = F2+0.1*(A2-F2)= 42+0.1*(40-42)=41.8
F4 = F3+0.1*(A3-F3)= 41.8+0.1*(43 41.8)=41.92
F5 = F4+0.1*(A4-F4)= 41.92+0.1*(40-41.92)=41.728
F6 = F5+0.1*(A5-F5)=41.728+0.1*(41-41.728)=41.6552 - 49Linear TrendA simple data plot can reveal the existence and nature of a trend
- 50Linear Trend EquationFt= a+bt
Ft= Forcast for period t
a= value of Ft at t=0
b= slope of the line
t=specified number of time periods fromt=0 - 51Forecasts are not perfect because random variation is always presentT
- 52Forcast Accuracy EquationError = Actual − Forecast
- 53Forecast Accuracy Metrics* Mean Absolute Deviation (MAD): the average absolute error, weights all errors evenly
* Mean Squared Error (MSE): weights errors according to
their squared values
LOOK AT CHEAT SHEET FOR ACTUAL EQUATIONS
* Mean Absolute Percent Error (MAPE):
weights errors according
to relative error - 54Strategic Product and Service Design*The essence of an organization is the goods and services it offers
* Every aspect of the organization is structured around them - 55Manufacturabilitythe capability of an organization
to produce an item at an acceptable profit - 56Serviceabilitythe capability of an organization to
provide a service at an acceptable cost or profit - 57Idea generation for product designStep 1: Idea Generation:
-Supply chain-based
Competitor based
-Research based
Step 2: Legal Considerations:
*Product liability
Step 3: Sustainability
Considerations:
*Sustainability
Step 4: Reliability:
*The ability of a product, part, or system to perform its intended function under a prescribed set of conditions
*Robust design
Step 5: Quality Management:
*Quality Function Deployment (QFD)
* An approach that integrates the “voice of the customer” into both product and service development - 58Product or Service Life StagesIntroduction, Growth, Maturity, Decline
- 59ReliabilityThe ability of a product, part, or system to perform its intended function under a prescribed set of conditions
- 60Reliability is expressed as a probabilityT
The probability that the product or system will function
when activated - 61Rule 1 of ReliabilityIf two or more events are independent and success is defined as the probability that all of the events occur, then the probability of success is equal to the product of the probabilities of the events
- 62A machine has two buttons. In order for the machine to function, both buttons must work. One button has a probability of working of .95, and the second button has a probability of working of .88. What is the machine reliability?P (Bottom 1 works) x P (Button 2 works)
=.95 x .88 =.836 - 63RedundancyThe use of backup components to increase reliability
- 64Rule 2If two events are independent and success is defined as the probability that at least one of the events will occur, the probability of success is equal to the probability of either one plus 1.00 minus that probability multiplied by the other probability
- 65A restaurant located in area that has frequent power outages has a generator to run its refrigeration equipment in case of a power failure. The local power company has a reliability of .97, and the generator has a reliability of .90. The probability that the restaurant will have power is?P (Power CO.) + (1-P(Power Co.)) x P(generator)
=.97 + (1-.97) (90)
ANSWER=.997 - 66Rule 3If two or more events are involved and success is defined as the probability that at least one of them occurs, the probability of success is 1 - P(all fail)
- 67A factory has three machines (with reliabilities of .85, .80, and .75). Only one of them needs to function for the company to be able to produce the product. What is the probability that the factory will have a functioning machine?FORMULA: [1- (1-P1) x (1- P2) x (1-P3)]
[1-(1-.85) x (1-.80) x (1-.75)]=
ANSWER =.9925 - 68A production system has 5 machines. Machine 1, 2, 3 must be functioning together to complete a product. Machine 4 is a backup for machine 2 if machine 2 stops working. Machine 5 is a backup for machine 3 if machine 3 stops working. The reliability of each machine is given in the figure. What is the reliability of this operating system?A: 0.98
B: 0.9+(1-0.9)*0.9 = 0.99
C: 0.95+(1-0.95)*0.92 = 0.996
System reliability = A*B*C = 0.98*0.99*0.996 = 0.9663192 - 69CapacityThe upper limit or ceiling on the load that an operating unit can
handle - 70Capacity needs include Equipment
Space
Employee skills - 71Goal of strategic Capacity planningTo achieve a match between the long-term supply capabilities of an organization and the predicted level of long -term demand:
• Overcapacity: operating costs that are too high
• Undercapacity : strained resources and possible loss of
customers - 72Two useful definitions of capacity Design capacity: The maximum output rate or service capacity an operation, process, or facility is designed for
Effective capacity: Design capacity minus allowances such as personal time and
maintenance - 73Measure capacity in units that require updatingF
- 74Measuring System Effectiveness (MEASURED AS A PERCENTAGE)Efficiency= actual output/ effective capacity
Utilization: actual output/ design capacity - 75• Design Capacity = 50 cars per day • Effective Capacity = 40 cars per day • Actual Output = 36 cars per dayEfficiency= 36/ 40= 90%
Utilazation: 36/ 50= 72% - 76Break-Even Point (BEP)The volume of output at which total cost and total revenue are equal
- 77BEP EQUATION= Q(R – v) – FC
= FC/R-v - 78CAPACITY CUSHION Extra capacity used to offset demand uncertainty
Capacity cushion = 100% - utilization
Capacity cushion strategy
Organizations that have greater demand uncertainty typically have greater capacity cushion - 79CAPACITY STRATEGIESLeading:
Build capacity in anticipation of future demand increases
Following:
Build capacity when demand exceeds current capacity
Tracking:
Similar to the following strategy, but adds capacity in relatively small increments to keep pace with increasing demand - 80Constraint ManagementSomething that limits the performance of a process or system in achieving its goals
* Categories:
Market: Insufficient demand
Resource: Too little of one or more resources (e.g., workers,
equipment, space etc. - 81Cost-Volume AnalysisFocuses on the relationship between cost, revenue, and volume of output
Total Cost:= FC + VC
Total Revenue: Revenue per unit (R) x Q - 82Process Selection:Refers to deciding on the way production of goods or services will be organized
* It has major implications for:
Capacity planning
Layout of facilities
Equipment
Design of work systems - 83Process strategy*Capital intensity:
The mix of equipment and labor that will be used by the organization
*Process flexibility:
The degree to which the system can be adjusted to changes in
processing requirements - 84Process Types*Job Shop
* Batch
* Repetitive
* Continuous
* Project - 85Job Shop*High variety, Low volume
* A job shop usually operates on a relatively small scale
* Processing is intermittent
* Work includes small jobs, each with a somewhat different processing requirements
e.g. repair shop, hospital - 86BatchModerate variety, Moderate volume
The equipment need not be as flexible as in a job shop, but processing is still intermittent.
The skill level of workers doesn’t need to be as high as in a job shop
because less variety in products and services.
Example:
Bakeries
Airlines - 87RepetitiveLow variety, High volume
Higher volumes of more standardized goods or services
Repetitive processing
Only slight flexibility of equipment is needed
The skills of workers are low
Example:
Production lines for computers
Assembly lines for automobiles - 88ContinuousLow variety, very High volume
Non-discrete, highly standardized output
No need for equipment flexibility
Example:
Petroleum products
Steel
Sugar
Flour
Services: air monitoring, supplying electricity, internet - 89Projectvariety and volume range from low to high
Non-routine, with a unique set of objectives to be accomplished in a
limited time frame.
Example:
Consulting
Launching a new product
Publishing a book - 90Product layout The layout uses standardized processing operations to achieve
smooth, rapid, high-volume flow - 91Facilities Layout The configuration of departments, work centers, and equipment, with
particular emphasis on the movement of work (customers or materials)
through the system - 92Cycle timeThe maximum time allowed at each workstation to complete
its set of tasks on a unit. - 93Designing Process Layout• The main issue in designing process layouts concerns the relative placement of the departments
- 94Measuring DPL Effectiveness A major objective in designing process layouts is to minimize transportation cost, distance, or time
- 95EXAMPLE
- 96Output rate equationOutput Rate = Operating time per task / Cycle time
IF THEY ARE SEPARATED THEN PICK THE HIGHEST TASK RATE - 97EQUATION FOR MINIMUM NUMBER OF STATIONS
- 98Measuring Line Balancing Effectiveness
- 99Location Decision: General ProcedureSteps:
1. Decide on the criteria to use for evaluating location alternatives
2. Identify important factors, such as location of markets or raw materials
3. Develop location alternatives
4. Evaluate the alternatives and make a decision - 100Evaluating Location Alternatives Locational cost-volume-profit analysis
Factor rating
Center of gravity method - 101Locational Cost-Profit-Volume Analysis1. Determine the fixed and variable costs for each alternative
2. Plot the total-cost lines for all alternatives on the same graph
3. Determine the location that will have the lowest total cost (or highest
profit) for the expected level of output - 102Locational Cost-Profit-Volume Equation
- 103EXAMPLE
- 104Factor Rating A general approach to evaluating locations that include quantitative and qualitative inputs
- 105Center of gravity method Method for locating a distribution center that minimizes distribution costs
- 106CENTER OF GRAVITY METHODCenter of gravity method
- 107a.Single factor b.Multifactor c. Growth rate
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- Fichas sobre Sin título, creado por alexandra ortiz el 12/03/2024.
- Creado por
- alexandra ortiz · mar 2024
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- 13 mar 2024
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