OPMT Chapt.1, 2,4, & 5

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  1. capacity
    the upper limit or ceiling (maximum) on the load that an operating unit can handle; ex. # of bicycles produced per hour or # of computer upgrader per hour; need include equipment, space, & employee skills
  2. design capacity
    the maximum output rate or service capacity an operation, process, or facility is designed for; what it was made to produce under ideal conditions
  3. effective capacity
    design capacity minus allowances, such as personal time, maintenance, and scrap; ex. lunch & coffee breaks; increase by correcting quality problems, keep equipment in good condition, & fully train employees
  4. leading strategy
    build capacity in anticipation of future demand increases
  5. following strategy
    build capacity in response to demand exceeding current capacity
  6. tracking strategy
    build capacity in response to and at pace with increasing demand, but in relatively small increments
  7. capacity cushion
    extra capacity used to offset demand uncertainty; amount in excess of expected demand; capacity - expected demand equals this; greater uncertainty, greater this needs to be
  8. bottleneck operation
    an operation in a sequence of operations whose capacity is lower than that of the other operations; evidence of an unbalanced system; reduces capacity of the system
  9. economies of scale
    if the output rate is less than the optimal level, increasing the output rate results in decreasing average unit costs; ex. standardization reduces unit costs
  10. diseconomies of scale
    if the output rate is more than the optimal level, increasing the output rate results in increasing average unit costs; can be from worker fatigue, equipment breakdowns, the loss of flexibility
  11. constraint
    something that limits the performance of a process or system in achieving its goals; market (insufficient demand), resource (too little of workers, equipment, space, etc.), material (too little of them), financial (insufficient funds), supplier (unreliable), knowledge/competency (missing or incomplete skills), & policy (interference of laws & regulations
  12. break-even point (BEP)
    the volume output at which total cost and total revenue are equal; no loss, no gain
  13. operations management
    the management of systems or processes that create goods and/or provide services
  14. systems (and the systems approach)
    a set of interrelated parts that must work together; a bus. org. is composed of marketing, operations, & finance subsystems; emphasizes interrelationships among subsystems; the whole is greater than the sum of its parts; outputs & objectives of the organization more important than any one subsystem
  15. process
    one or more actions that transform inputs into outputs
  16. Who is the father of scientific management?
    Frederick Winslow Taylor
  17. Who employed scientific management techniques to his factories, such as moving assembly line and mass production
    Henry Ford
  18. mass production
    system in which low-skilled workers use specialized and often costly machinery to produce high volumes of standardized goods
  19. competitiveness
    the effectiveness of an organization in the marketplace relative to other organizations that offer similar products/services
  20. strategy
    the plan/map that determines how an organization pursues it's goals; basic businesses ones are low cost, responsiveness, and differentiation
  21. order qualifiers
    characteristics that customers perceive as minimum standards of acceptability for a product or service to be considered as a potential for purchase; necessary for me to even consider purchasing needs
  22. order winners
    characteristics of an organization's goods or services that cause it to be perceived as better than competition; wants
  23. productivity
    a measure of the effective use of resources, usually expressed as the ratio output to input; a direct impact on competitiveness; makes higher standards of living (you can do more with less), its a competitive advantage in the marketplace, & it makes things less likely to be replaced/removed; tracks performance over time
  24. value added
    the difference between the cost of inputs and the value or price of outputs; for non-profit orgs. its their value to society; for profit orgs. its measured by the prices customers are willing to pay for goods/services; firms use profits to invest in R&D, new facilities & equipment, and workers salaries
  25. maufacturability
    the capability of an organization to produce an item at an acceptable profit
  26. serviceability
    the capability of an organization to provide a service at an acceptable cost or profit
  27. reverse engineering
    dismantling and inspecting a competitors product to discover product improvements
  28. product liability
    the responsibility a manufacturer has for any injuries or damages caused by a faulty product; companies can lose reputation, customers, and loyalty
  29. cradle-to-grave assessment (Life-Cycle assessment, LCA)
    the evaluation of the environmental impact of a product or service throughout its useful life; factors like global warming, oxygen depletion, and solid waste generation
  30. value analysis
    examining the function of parts and material to reduce cost and/or improve performance; reduce of the 3 R's
  31. remanufacturing
    refurbishing used products by replacing worn-out or defective components and reselling them; reuse of the 3 R's
  32. mass customization
    a strategy of producing basically standardized goods or services, but incorporating some degree of customization in the final product or service; individuality, cost may take longer to receive
  33. delayed differentiation
    the process of producing, but not quite completing a product or service until customer preferences are known; one way to provide mass customization; products still basically standardized; postponement tactic; hold in inventory; quickly add customers choice and speedy delivery
  34. modular design
    component parts are grouped into modules that are easily replaced or interchanged; second way to provide mass customization; easier & simpler to diagnosis & remedy failure, repair & replacement, & quick manufacture & assembly; there's a limited # of possible product configurations (low variety); to repair a faulty module the entire module must often be scrapped (higher cost)
  35. reliability
    consistently; the ability of a product, part, or system to perform its intended function under a prescribed set of conditions
  36. robust design
    results in products or services that can function over a broad range of conditions
  37. concurrent engineering
    bringing engineering design and manufacturing personnel together early in the design phase; marketing, engineering, and operations working all at one time and together; departments are communicating

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OPMT Chapt.1, 2,4, & 5
2012-04-30 05:37:22

OPMT Chapt. 1,2,4,& 5
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