Operations Midterm 5

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  1. To accomplish operations management and transforming inputs to outputs, firms must have an understanding of:
    Corproate Strategy, Ops Strategy, Processes, Planning, supply chains
  2. Focused Strategy Example 2
    Hundai saying no to big trucks. Sticking to fuel efficiency instead of big trucks
  3. Strategic Position
    Establishes what product attributes a firm will provide
  4. Operational Effectiveness
    Measures how well processes perform
  5. Process Flow Measures effect:
    Process cost & Response time and are affected by process flexibility and process quality
  6. Flow Time
    On Average, how much time does a typical flow unit spend within the process boundaries

  7. Flow Rate
    On Average, how many flow units pass through process per unit of time

    How many seats per hour
  8. Inventory
    On Average, how many flow units are within the process boundaries at any point in time
  9. Theoretical Flow Time
    The minimum amount of time required for a flow unit to move through the process from entry to exit with NO waiting or disruption. - baseline process time
  10. ThroughPUT
    Average Flow Rate of a stable process
  11. Capacity
    Maximum sustainable throughput

    How much can you sustain running through your process - the scale of the process
  12. Scale of Process
    Throughput combined with Capacity - how big the process is
  13. Capacity is dependent on:
    Level of resources deployed and the effectiveness of the resources (2 types of resources)
  14. Each activity may require 1 or more resources and each resource may be allocated to one or more activities

    making bread example:
    Baker - Mixing, Kneading, Forming activities

    Activity - baker, oven, oven mitts (resources)
  15. Resource Pool
    Collection of interchangeable resources that can perform same activities
  16. Bottleneck
    Output is limited to slowest resource pool
  17. Bottleneck is external
    Throughput is less than capacity
  18. Bottleneck is internal
    Throughput is equal to capacity
  19. Effective Capacity of aprocess =
    effective capacity of bottleneck
  20. Increasing theoretical capacity (5)
    • 1. Increase resource units
    • 2. Increase size of resource units
    • 3. Increase time of operation
    • 4. Subcontract or outsource
    • 5. Increase rate of activities
  21. Increasing theoretical capacity - increase resource units
    Add people - have to compare value of added throughput versus cost of more resources
  22. Increasing theoretical capacity - increase size of reasource units
    bigger oven
  23. Increasing theoretical capacity - increase time of operation
    1. overtime hours or additional shifts (1st, 2nd, etc)
  24. Increasing theoretical capacity - subcontract/outsource
    may require long term commitment or upfront investment
  25. Increasing theoretical capacity - speed up rate of activities
    may require incentives/bonuses/investement in faster machines
  26. Reducing capacity waste on bottleneck increases capacity (6)
    • 1. Eliminate non-value added activities
    • 2. Avoid defects/re-work
    • 3. Reduce time availability loss
    • 4. Reduce set up loss (batch process)

Card Set Information

Operations Midterm 5
2012-02-16 01:17:16
Operations Midterm

Operations Midterm 5 and Review
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