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scheduling
establishing the timing of the use of equipment, facilities, and human activities in an organization; if done effectively it can yield cost savings & increases in productivity; objective= minimize customer waiting time, inventories, & process times
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flow systems
high-volume systems (for personal computers, tvs, toys, appliances, mining, cafeteria lines) in which jobs all follow the same sequence
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flow-shop or system scheduling
scheduling for flow systems; goal= to achieve a smooth rate of flow of goods or customers through the system in order to get high utilization of labor & equipment
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intermediate-volume systems
output falls between the standardized type of output of high-volume systems & the make-to-order output of job shops; intermittent production, not continuous; work centers periodically shift from one product to another; run (batch) sizes=relatively lare; products= canned foods, baked goods, paint, & cosmetics
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job-shop scheduling
scheduling for low-volume systems with many variations in requirements; products are made to order; orders usually differ in terms of processing requirements, materials needed, processing time, & processing sequence and setups; complex scheduling environment b/c impossible to do so before actual job orders received
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loading
the assignment of jobs to processing (work) centers; specific jobs to work centers & various machines in the work centers; seek arrangements that will minimize processing & setup costs, idle time among work centers, or job completion time
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gantt charts
used a visual aid for loading & scheduling purposes; purpose= to organize & visually display the actual or intended use of resources in a time framework; managers may use for trial-and-error schedule development to get an idea of what different arrangements would involve
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load chart
a Gantt chart that shows the loading and idle times for a group of machines or list of departments;
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sequencing
determining the order in which jobs at a work center will be processed
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priority rules
simple heuristics used to select the order in which jobs will be processed
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job time
time needed for setup and processing of a job
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FCFC
first come first serve; jobs are processed in the order in which they arrive at a machine or work center
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SPT
shortest processing time; jobs are processed according to processing time at a machine or work center, shortest first
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EDD
earliest due date; jobs are processed according to due date, earliest first
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CR
critical ratio; jobs are processed according to smallest ratio of time remaining until due date to processing time remaining; lowest ratio goes 1st; negative= late
- due date - current date
- processing time
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job flow time
the amount of time from when a job arrives until it is finished; the length of time a job is at a particular workstation or work center; includes processing time AND any time waiting to be processed
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job lateness (tardiness)
the difference between the actual completion date & the due date; the length of time the job completion time is expected to exceed the job due date or the date promised to a customer
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makespan
the total time needed to complete a group of jobs, from the beginning of the first job in the group to the completion of the last job in the group; sum of all the flow times
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schedule chart
a Gantt chart that shows the orders or jobs in progress and whether they are on schedule; needs to be repeatedly updated to keep it current; doesn't directly reveal costs associated with alternative loadings
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infinite loading
jobs are assigned to work centers without regard to the capacity of the work center
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finite loading
jobs are assigned to work centers taking into account the work center capacity and job processing times; capacity is not exceeded; may have to be updated often
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forward scheduling
scheduling ahead from a point in time; used when the question is: how long will it take to complete the job; enables scheduler to determine the earliest possible completion time for each job & the amount of lateness or slack
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backward scheduling
scheduling backward from the due date; used when the question is: when is the latest this job can be started and still be completed on time
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local priority rules
focus on information pertaining to a single workstation when establishing a job sequence
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global priority rules
incorporate information from multiple workstations when establishing a job sequence; require more effort
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Johnson's rule
technique for minimizing makespan (completion time) for a group of jobs to be processed on 2 machines or at 2 work centers; minimizes idle time at work centers
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lean operation
a flexible system that uses minimal resources (activities, people, inventory, floor space) & produces high-quality goods or services; tends to achieve greater productivity, lower costs, shorter cycle times, & higher quality; 3 elements= demand driven, focused on waste reduction from every aspect of the process, & has a culture dedicated to excellence & continuous improvement
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just-in-time (JIT)
a high coordinated processing system in which goods move through the system, & services are performed, just as they are needed; sometimes lean systems are referred to as this
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pull system
a workstation pulls output from the preceding station as it is needed; replacing material or parts based on demand; produce only what is needed; require fairly steady flow of repitive work; not good for large variations in volume, product mix, or product design
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inventory, overproduction, waiting time, unnecessary transporting, processing waste, inefficient work methods, & product defects
the 7 sources of waste
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Kanban
a manual system that signals the need for parts or materials; result= delivery of a steady stream of a small supply of parts throughout the workday to the factory & each workstation
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single-minute exchange of die (SMED)
a system for reducing changeover time; setup tools & equipment & setup procedures must be simple & standardized; multi-purpose equipment or attachments can help reduce setup time
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autonomation (jidoka)
automatic detection of defects during production, sometimes used to minimize them; then human stops production to correct the cause of the defects
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takt time
the cycle time needed in a production system to match the pace of production to the customer demand rate for the final product; sometimes referred to as the heartbeat of a lean production system; often set for a work shift; can be used to determine the time that should be allotted to each workstation in the production process
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poka-yoke (mistake proofing or fail safing)
safeguards built into a process to reduce the possibility of errors; ex= an alarm that sounds to indicate when packages are missing components & designing parts that can only be attached in the correct position
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activity-based costing (ABC)
allocation of overhead to specific jobs based on their percentage of activities; designed to more closely reflect the actual amount of overhead consumed by a particular job or activity
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push system
work is pushed to the next station as it is completed; used in traditional production environments; has no regard for the next station's readiness for the work= work may pile up at workstations that fall behind schedule
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Kanban
card or other device that communicates demand for work or materials from the preceding station; Japanese for signal or visible record; authorization to move or work on parts; can also be a signal to produce or deliver parts; major benefit= its simplicity; goals= to improve customer service, reduce inventories, & increase productivity
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preventive maintenance
maintaing equipment in good operating condition & replacing parts that have a tendency to fail before they actually do fail; maintain supplies of critical spare parts for emergency situations, maintain a small force of repair ppl, or train workers to do certain repairs themselves
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value stream mapping
a visual tool to systematically examine the flow of materials & info. involved in bringing a product or service to a consumer; provides an overview of the activities that comprise a process; identifies waste & opportunities for improvement; can lead to uncovering factors related to poor quality & mgmt problems
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supply chain (a.k.a. value chains)
a sequence of orgs-their facilities (warehouses, factories, retail outlets, distribution centers, offices), functions, & activities- that are involved in producing & delivering a product or service; begins w/ basic suppliers of raw materials & extends all the way to the final customer; F&A= purchasing, inventory mgmt, info. mgmt, quality assurance, scheduling, customer service
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supply chain management
the strategic coordination of business functions within a business organization and throughout its supply chain for the purpose of integrating supply & demand management
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logistics
the part of a supply chain involved with the forward and reverse flow of goods, materials, services, cash, and information; mgmt of this includes mgmt of inbound & outbound transportation, material handling, warehousing, inventory, order fulfillment, & the return of goods from customers
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e-business (e-commerce)
the use of electronic technology to facilitate business transactions; applications include internet buying & selling, e-mail, order & shipment tracking, product & service promotion, & providing info. about them
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vendor analysis
evaluating the sources of supply in terms of price, quality, reputation, & service; also flexibility, location, financial stability, & on-time delivery are factors that could be included
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strategic partnering
2 or more business organizations that have complementary products or services that would strategically benefit the others agree to join so that each may realize a strategic benefit
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inventory velocity
the speed at which goods move through a supply chain; the greater this is, the lower the inventory holding costs & the faster orders are filled & goods turned into cash
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bullwhip effect
inventory oscillations (fluctuations can be caused by periodic ordering, reactions to shortages, forecast, inaccuracies, order batching, sales incentives & promotions) become progressively larger looking backward through the supply chain; cause ripple= higher costs & lower customer satisfaction
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traffic management
overseeing the shipment of incoming and outgoing goods; handles schedules & decisions on shipping method & times, taking into account costs of various shipping alternatives, gov't regulations, the needs of org. relative to quantities & timing, & potential shipping delays or disruptions
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Third Party Logistics (3PLs)
the outsourcing of logistics management; companies are turning over warehousing & distribution to companies that specialize in these areas
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strategic sourcing
a systematic process for analyzing the purchase of products and services to reduce costs by reducing waste & non-value-added activities, increase profits, reduce risks, & improve supplier performance
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information velocity
the speed at which information is communicated in a supply chain; the faster it flows two-way, the better
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event management
the ability to detect & respond to unplanned events such as delayed shipment or a warehouse running low on a certain item
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cross-docking
a technique whereby good arriving at a warehouse from a supplier are unloaded from the supplier's truck and immediately loaded onto outbound trucks, thereby avoiding warehouse storage
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disintermediation
reducing one or more steps in a supply chain by cutting out one or more intermediaries
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