Flashcards
Productions
Cards in this deck (89)
- 1Advantages of Focused factory1. Efficiency
2. Increase in Quality
3. Reduce Inventory
4. Lower quality costs - 2Disadvantages of Focused Factory1. Cannot increase capacity
2. Possible not selling all inventory
3. Distance to customers - 3Advantages of Buffers• Decoupling of subsequent work stations allows for better scheduling
• Before a bottleneck it ensures that such bottleneck is busy all the time, thus maximising capacity
• Provide flexibility, specially for processes with variance in time required to complete them. - 4Disadvantages of Buffer• Decoupling can lead to lax standards that could result in quality defects
• Increase in working capital
• Quality problems result in more scrap
• Longer throughput time - 5Why car assembly line is structured?• Products have little differentiation between themselves and go through the same work stations in the same order
• A high level of specialisation is required in each work station (putting engine in, painting, putting wheels on, etc)
• High volume allows for stations to be designed for specific platform - 6Describe Craft production1. Qualified personnel
2. Flexible
3. Low volume - 7Describe Mass Production1. Non-qualified personnel
2. Specialized
3. High Volume - 8What is a bottleneckA bottleneck is the activity in a process with the smallest throughput rate ((longest cycle time)
A bottleneck is an activity in the process for which capacity is less that demand. - 9Why is it important to know your bottlenecks?1. It determines the capacity of your process
2. The capacity of the bottleneck determines the output rate
3. It helps you determine your work-in-process inventory - 10What are actions that you can take to handle a buffer?1. Create a buffer before it to ensure it works at maximum capacity
2. Invest resources to ensure its reliability (no break-downs)
3. Invest in reducing setup time as it influences total capacity.
4. Hire someone else to work at buffer stage - 11What is risk pooling?Pooling risk of few products into one - eg: heating up corn & flower tortille in one mechanism
- 12Mercadona innovation process1. Less variety -> lower inventory costs
2. Smallers stores -> higher turnover per square meter - 13What is cross-docking?Think about Walmart example: when supplier and distributors exchange goods in one dock
Benefits:
1. Decrease in working capital
2. Just-in-time model - 14Describe Make-to-Order1. Speed is not a constrain
2. Low volume
3. Goods are perishable
4. Costs of stocking are high
5. Customers believe in quality - 15Describe Make-to-Stock1. High speed
2. High volume
3. Predictable demand
4. Stocking costs are lower than loss of potential sale
5. Goods are not perishable - 16How would you act regarding buffers / operations in Make-to-StockDecrease cycle time in order to increase capacity
eg: McDonalds - 17How would you act regarding buffers / operations in Make-to-OrderDecrease throughput time in order to increase satisfaction for each customer
eg: Goiko - 18Overall Utilization RateTime in all stations / (Bottleneck * amount of stations) = x%
- 19Best Operating LevelCapacity at which process runs optimally (average costs are minimised, maximum capacity is reached)
eg: how engineers designed the process to be, not utilization - 20Why having unbalanced system might be good?You can adapt production based on the demand (increase/decrease in some stations)
- 21Frequent Upgrades1. Cost of buying equipemnt
2. Installing and removing old equipment
3. Training workers - 22Infrequent Upgrades1. Lost revenue during high demand
2. Unhappy customers
3. Higher cost/unit - 23Layout: Fixed-Position+: high mix and flexibility, product is not disturbed, high variety of tasks
-: high unit costs, scheduling at space and activities , a lot of movement
eg: Construction of a building - 24Layout: Functional+: mix and product flexibility, robust in case of disruptions, relatively easy to supervise
-: low facility utilization, high WIP or customer queueing, complex flow can be difficult to control
eg: Hospital - 25Layout: Cell+: Good compromise between cost and flexibility, fast throughput rate, group work can be good for motivation
-: costly to arrange the layout, need more space for plant and equipment, lower plant utilization
eg: Victoria Secret - 26Layout: Product+: Low unit costs for high volumes, specialization of force, materials movement is convenient
-: low mix of flexibility, not very robust in case of disruption, work can be repetitive
eg: Cars, Coca Cola - 27Risk pooling options1. Inventory management
2. Warehouse location
3. Postponement
4. Product design - 285 principles of behaviour science (HOW)1. Finish strong
2. Get bad experience out of the way early
3. Segment the pleasure, combine the pain
4. Build commitment through choice
5. Give people rituals, stick to them - 29Designing for ETC (WHAT)1. Emotions influence what we remember
2. Trust builds engagement
3. Control is achieved through Trust and Emotion - 30Service error: Good Delivery, Bad DeliverorOffer a different service
- 31Service error: Bad delivery, Good deliverorRefund or offer free service
- 32Service Error: Customer just unhappyApologise
- 33General Service Errors Principles1. Clear communication (not too hard, not too easy)
2. Follow up
3. Active involvement (let them know whatsup)
4. Likeability (good staff)
5. Willingness to take high road (don't cheat them)
6. Knowing your
customers - 34How to reduce queues? Some options1. More employees
2. Serve the ones who require less time
3. Reduce the time an individual is being served (eg: doctors 20mins appointment) - 35Advantages of Single Queue1. Guarantees fairness
2. No anxiety in choosing the queue
3. No "cutting in"
4. Line switchin avoided - 36Advantages of Multiple Queues1. Different services for different lanes (express lane)
2. Labour specialization
3. Customer has more flexibility
3. Balking behavour dettered - 37Examples of queue disciplines1. LIFO
2. FIFO
3. Processor Sharing - 38Quality - defineAbility to produce constantly a product according to set specifications
- 39Types of Qualities1. Conseptual (its hot - people need skiing holidays)
2. Design - people want adrenaline, car that drives 20km/h)
3. Specification (similar to design)
4. Manufacturing (fuck up in the manufacturing process)
5. Client - your client has a defect (service is too complex for normal clients to get it) - 40Total Cost of QualityPrevention cost + appraisal cost + internal failure + external failure
- 41Prevention cost- Identify causes of defect
- corrective action
- train personnel
- redesign - 42Appraisal cost- inspect the good for defects
- test the goods
- test the equipment - 43Internal failure costwhile product is in the cycle:
- scrap (throw aways)
- rework the product
- re-inspect
-retest - 44External failure cost- customer returns
- complaints
- products recalls
(eg: Volkswagen) - 45Poka-yoke and advantagesProcedure that blocks mistakes from becoming a service defect
+ cheap, simple, easy to implement, immediate effect, corrective action - 46Examples of Poka-yokeSim cards, IKEA, cars (beeping, signals, breaks)
- 47Employee Operated Industry1. More Operators
2. Operators are skilled
3. Ability of operators is important
4. Discretion of operators limited
eg: Bank Teller - 48Customer Operated Industry1. Little operators
2. Anybody who walks in can be an operator
3. Ability of operators is not important
4. Less Limited discretion - 49Controls of Behaviour: Instrumental- Explicit rewards and penalties
- Individual focused
- Rewards or discounts
- Charges
- Expensive to implement
eg: Car rental fees - 50Controls of Behaviour: Normative- Social approval/dissaproval
- Community focused
- Pride/belonging
- Shame/Rejection
- Cheap to implement
eg: UBER ratings - 51Capacity management: Long Range- High investment costs
- Might need managerial approval
- Hard to reverse - 52Capacity management: Short Range- Meets short demand fluctuation
- Can be implemented by lower employees
- Difficult to sustain over long period of time - 53Advantages of Economies of Scale- Lower operating costs
- Cost of equipment / unit drops
- Higher degree of labour specialisation - 54How to make sure you have capacity flexibility1. Flexible Plants
2. Flexible Processes
3. Flexible Workers - 55Factors that tend to increase base level of capacity- Low fixed costs
- Need for high levels of customer service
- High perishability
- Inexpensive fixed capacity - 56Factors that tend to decrease base level of capacity- High fixed costs
- Need for high-capacity utilization
- Ability to store output
- Expensive ficed capacity - 57Constraints between viariety and volume- Qualification of workers
- Volume
- Variety and flexibility
- Set-up time - 58Process Types1. Job Shop (wedding cake)
2. Mass production (cars)
3. Batches (cookies)
4. Project (offshore oil plant) - 59Designing for Control (ETC)- Outcome information (you are sick/healty)
- Process information (flight delays)
- Control & Decision making (which table you wannt sit in restaurant) - 60Advantages of JIT- High quality
- Less waste
- Flexibility
- Low inventory costs
- Low setup costs - 61Disadvantages of JIT- Time-consuming
- No spare products
- High risk
- Cannot meet supply / demand shocks - 62Different types of possible wastes- Overproduction waste
- Waiting waste
- Transportation waste
- Underutilization of employees waste
- Inventory waste
- MOtion waste
- Making defective products waste - 63Objectives of JIT regarding wasteZero breakdowns
Zero stocks
Zero wasted time
Zero bureaucracy - 64Possible solutions to defect waste1. Repeat items in order before taking them to cook
2. Introduce poka yoke
3. Invest in preventive quality measures - 65Possible solutions for waiting waste1. Implement a “call waiter button”
2. Increase number of waiters (luxury restaurant) - 66Possible inventory waste solutions1. Rationalise menu to reduced variation by using common ingredients
2. Use postponement for differentiation
3. Implement inventory tracking mechanisms for rich companies - 67Possible motion waste solutionsSet up a small drawer cabinet in each space of the restaurant with often- demanded items (silverware, napkins, salt and pepper shakers, etc)
- 68Possible overproduction solutions1. Ask to pay in advance
2. Implement a “call waiter button” to reduce annoying (do you need anything?) - 691. What is a bottleneck? Why is it important to identify? What actions should be taken to manage a bottleneck?Bottleneck is a stage whose Capacity is less than the Demand placed on it.
It is important to identify the bottleneck because it can help you determine the output of the system. You can then invest resources in improving the capacity of the bottleneck, thereby increasing the output of the system.
You can make sure the bottleneck produces at its maximum capacity by having a buffer before it, so that it always has work to do.
Perform regular maintenance so that it never breaks down or produces defective products.
Ensure it works on defect-free parts.
Increase capacity by adding workers or equipment. - 70Describe the focus (or objectives) of a process design for the High-end luxury retail storeHigh-end luxury retail store:
a. Have Idle capacity to comfortable meet peak demand
b. Diverse/complex jobs require highly trained employees capable of addressing different customer requests: task based
c. Layout based around the client and his/her needs
d. Low scale - 71Describe the focus (or objectives) of a process design for Back-end office for processing insurance claimsBack-end office for processing insurance claims
a. Focus on efficiency
b. Specialized jobs and high repetition: process-based
c. Use of technology when possible to improve efficiency and throughput
d. Layout based around the processing of claims
e. High volume - 72In Just-in-Time, inventories are brought to zero between stages of the process. What are the consequences: • For two stages that follow each other?o Need for synchronisation between the two
o High dependence between them - 73In Just-in-Time, inventories are brought to zero between stages of the process. What are the consequences: For the throughput time of the whole process?o Reduced throughput time as explained by Little’s Law if I=R*T then T= I/R
- 74In Just-in-Time, inventories are brought to zero between stages of the process. What are the consequences: That quality problems can bring to the process?o It can stop the whole process until the problem is fixed as different stages cannot continue to work with the reduced WiP inventory.
- 75It is normal practice to have a safety stock in inventory management. Why is it needed? List two factors that make them necessary1. An increase in demand (over forecast) could not be met without safety stock. This needs to be enough at least to cover potential demand variability for the lead time period.
2. The ability to operate would be compromised with any delay on the supply side (i.e. suppliers have logistic problems, manufacturing delays, etc) - 76Explain how to determine the size of the safety stock.The main factors are
1. Lead time: the amount of time between placing and order and have delivery of a product, as well as the possible variation in the same lead time,
2. Demand variability: possible changes in demand that can affect the stock’s depletion rate (how fast we run out of it)
3. Process speed and flexibility, that allow us to make-to-order
4. Logistics, that allow us to reduce the lead time. - 77Advantages of reducing high Inventory
- 78Steps in JIT process1. Introduce speed
2. Reduce or eliminate stock
3. Introduce Kanban as a way to replenish 4. WIP inventory
5. Design the plant for efficiency
6. Reduce and avoid setups
7. Introduce preventive maintenance
8. Reduce or eliminate defects
9. Problem solving methodologies
10. Simplify the planning
11. Involve suppliers and customers
12. Minimise accounting transactions
13. Develop workers
14. Visibility, order and cleanliness
15. Measure the results - 795 stages in production amangement steps (PSMDR)Planning: The processes needed to operate an existing supply chain strategically
Sourcing: The selection of suppliers that will deliver the goods and services needed to create the firm’s product
Making: The processes needed to produce goods or provide services
Delivering: Movement of products to warehouses and customers
Returning: The processes for receiving worn-out, defective, and excess products back from customers - 80Issues with High Inventory (table)
- 81What does effective Poka Yoke do?An effective poka-yoke:
Simple
Inexpensive
Easy to implement
Immediate feedback
Corrective action - 825 Ss of JITSort (Seiri): organisation
Set in order (Seiton): keep in order
Shine (Seiso): cleanliness
Standardize (Seiketsu): Maintaining the three above
Sustain (Shitsuke): always obey rules correctly so they become a habit. - 83Constrain Management: Goals of the Firm in respect to Opertional Measurements
- 84Difference between breakthrough improvement and continious improvement
- 85Where should you invest in quality management?BEFORE the bottleneck, defect in bottleneck or after is time loss for entire system, but before bottleneck it is only loss of the material (not capacity)
- 86When you have unbalanced capacities what shall you do?Don’t balance capacities,
Balance Flow - 87Principles to make operation flow balanced (not balancing the capacities)1. Don't change non-bottleneck to bottleneck
2. Decrease idle time before bottleneck (inventory)
3. Don't pay attention to idle time before non-bottleneck - 88Advantages of Long-thin1. More controlled flow
2. Simpler handling of materials
3. Lower capital requirements (less machinery and ppl)
4. More efficiency from each person at one specialized stage - 89Advantages of Short-Fat1. Higher mix flexibility (different products in different setups)
2. Higher volume flexibility (you can open or close stations depending on the demand)
3. If one station breaks, you can use another one
4. Less monotonous work
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- Flashcards on Productions, created by Em Ber on 24/10/2018.
- Created by
- Em Ber · Oct 2018
- Updated
- Dec 19, 2018
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