It's based on the previous forecast plus a precentage of the differenb etween that forecast and the actual value of the series at that point. The key is to select an appropriate smoothing factor.
5-4a which demand forecasting would you use to support S&OP?
5-4b which forecasting technique woudl you use to support aggregate planning?
5-5 Your company is considering a strategice capacity addition. Explain how you would go about planning for the new facility.
set a goal and targe date
extablish two planning teams
-facility design team
select a location
define layout and workflow
identify equipment and select technology
create a desing for the facility
obtain regulatory approvals
what are some things that an Op Mgr can do to protect against a down-turn to protect the business?
Develop preliminary cost estimate for the facility
verify financial viability
make go-no go decisions
construct the building
purchase and install equipment and information systems
recruite and train staff
dry run the operations
What are opportunities and threats for globalizing a business?
-exports products and service into internatial markets
-out-source products, parts and services from lower cost countries
-direct investment in foreign countries to manufacture products for sale in international markets and/or the U.S.
-sell products and services to foregin companies that are investing in operations in the U.S.
-Competition in U.S. markets from imports of low cost products, parts and services
-when key customers invest in offshore production, suppliers may need to follow to stay in the game
5-8 discuss strategies for effective global operation management
-achieve better understanding of emerging markets
-partner with local companies
-create custom features for local tastes
-pay attention to details
-secure low cost labor and material sources
5-9 what did you learn from the Siemens-Yazake joint venture at Ford's supplier campus?
-joint venture between German and Japanese company
-SY supports ford and other tier-1 suppliers
-co-location improves response to changing demand
-lead-time for delivery from Asia exceeds S&OP planning horizon
6-1 what are the different types of inventory?
-raw materials and purchased parts
-work in progress (materials that have gone through change but are not yet ready.)
-Finished products (manufacturing fimrs)
-merchandise available for sale (retail firms)
-pipeline (supply chain) product in transit
-maintenace/repair.operating supplies (MRC)
6-2 what is an inventory management system?
A set of policies and controls that:
-monitor levels of inventory
-establish wht levels should be maintained
-decide when stock should be replenished
-determine how large orders should be
6-3a what are some of the costs of carrying inventory?
Inventory Holding Costs:-interest
Ordering Costs Include:-placing the order
-receiving and inspecting the order
-moving the order to storage
-payment of invoice
6-3b how much is the typical annual carrying cost?
10-30% of cost of sales
6-4 what does a material requirment planning (MRP) system do?
It is a computer-based informaiton system that translates master schedule requirements into time-phased requirements for sub-assemblies, components, and raw materials.
6-4b MRP answers 3 questions:
What is needed?
How much is needed?
When is it needed?
6-4c The 3 inputes are:
Master production schedule-what products to use
-when thy are needed
Bill of materials:-a listing of all assemblies and parts to produce one unit of the finishe dproduct
Primary data includes:gross requirments, scheduled receipts, expected amount on hand at the beginning of th etime period, safety stock, and net requirements.
Additional data includes:-supplier
-lot size policy
6-5a what is manufacturing resource planning (MRPII)?
it is the process of determining short-term capacity requirements.
6-5b How does MRPII work?
Apply MRPII to determine materials requirements then calculate resources to produce material at each work center. Verify probability and adjust schedule and capacity as necessary.
6-6a what is an ERP system?
ERP is software that provides a system to caputre and make data available in real-time to decision makers and other uses in the organizaiton.
6-6b what are some of the functional modules?
-scheduling-material requirement planning
-purchasing and receiving
-order entry and sales mgt
6-6c Why is it important?
because it automates the business process such as order entry, production, shipping, billing, and payment.
6-7 what are the essential practices for making ERP successful?
-standardize and improve business processes
-integrate company's infomration systems
-make sure everyone has the same, current information
-integrate the supply chain
6-8 what did you learn about implementing ERP and H&B?
-implementing ERP required a culture change
-H&B now ships 80% of orders on time compared to 40% preciously.
6-9 what are some of the factors you should consider to qualify a supplier as certified supplier?
-supplier rating is based on performance record
-if supplier has a gold rating, they do not require receiving inspecitons
-if a supplier falls below a bronze rating, they require corrective action
6-10a what is a supply chain?
A supply chian is the sequence of organizations
6-10b what are the factors you need to consider to optimize a supply chain?
-funtions and activities
-optimizing a supply chian which include:
-supply chain network design
-inventory and servide level optimization
6-11 what are the benefits of effective supply chain mgt?
-higher levels of order fulfillment
-greater flexibility and agility
-shorter lead times
-lower inventory and carrying costs
6-12 what are some principles and practices you would use to create a "lean" supply chain?
-Demand drive supply chain
-level master prodution schedule and level supply chain schedules
-lean processes used throughout hte supply chain
6-13a What is third-party logistics?
-ouytsourcing logistics mgt
-customized final assembly
6-13b what are the benefits of third-party logistics?
-supply chain logistics is a core competency for 3PL providers
-3PL's can have economies of scale for various operations
7-1 Lean is a disciplined approach to eliminating waste in all processes. What are some exemples of waster from a lean perspective?
2. time spent waiting
3. excessive inventory
4. Excessive motion
7-2 toyota production system was established on two important concepts. What are they and how do they work?
1. JIT "right part, right amount, right time".
2. Jidoka; (in-station quality) "stop to fix problems."
7-3 what is the 'kanban' principle?
A system of cards or signals that communicates demand and provides authorzation to move or work parts
7-4 what are some of the important lean principles? Do these principles apply in a service business?
2. Jidoka - stop the line if a defective unit is produced
3. Six-sigma quality - designed into the produciton process
4. Kaizem: (continuous improvement_ Operators involved in process improvement.
7-5 what is the fundamental difference between MRP and a lean system (JIT) for production planning and control?
MRP is push while JIT is a pull system.
7-5 are there circumstances where MRP and JIT are compatible or can coexist? Explain
1. MRP can be used for planning while
2. Jit can be used on the shop floor for production.
7-6 what is a value stream?
The collection of steps (both value and non-valued added_ involved in producing and delivering a product or service to a customer.
7-6b what are the 3 types of process steps ina value stream?
1. Value creators (create value)
2. Enables (don't create value but are required_
3. Waste (don't create value but can be eliminated)
7-6c What are the measurable benefits of eliminating non-value added steps?
1. reduce overall cycle time
2. increase profitability
3. increase customer satisfation
7-7 you have the opportunity to transform your company's operations to a "lean" model. How would you go about it?
1. analyze value stream
2. design flow process
3. Level production schedule
4. Implement Kanban pull
7-8 the article "no satisfaction at toyota? described Toyota's philosophy of continuous improvment. How did they describe the content of everyone's work?
1. Changed from painting with common applicator to cartridge.
2. changed from racks to totes
3. boss job is to find way sto do work better
4. need to talk about problems together
7-9 the article "toyota's experiment at NUMMI described the turnaround of a failed GM plant. How did they do it?
1. Toyota provided a new socal context for work. UAW's hundred job descriptions were replaced by one team member.
2. Management hierarchy was flattened from fourteen levels to three
3. Spent over $3M to sen dnew group and team leaders for training in the Toyota production system.
4. Workers were empowered to make things better.
What are soem of the dimesnions of sustainable operations? What are some key environmental impact metrics?
2. Environmental impacts
7-11 identify some sustainable operations strategies designed to increase revenue, to reduce cost and risk and to enhance reputation.
1. Develp new products and services which are more nergy efficient.
2. comply with government mandates
3. obtrain certification to environmental standards
4. implement recycling
7-12 What is ISO 14001
it is a standard for environmental management systems it provides a template for setitng up an environmental management system.
7-12 would it be a good idea for your company to seek ISO 14001 certification and why?
yes. It requires an organization to: control and reduce its impact on the environment.
8-1 the american society for quality has identified four primary determinants of quality for products and services. What are they? give examples
1. Desing - which include
-features and funtions
-compliance with maufacturing specifications, reliabilith, durability
3. base of use
-service after sale
8-2 the cost of quality includes prevention and assurance costs and failure costs. What are some prevention costs? Whare sre some assurance costs? What are some failure costs?
Preventive Costs-quality planning
Assurance Costs-inspection and testing
-acquiring special test equipment
-calibrating test equipment
Failure cost internal-scrap
-labor and machine downtime
-field service adjustments
-loss of good will
8-3 How much is the typical cost of quality?
10-30% of revenue
8-4 What is the fundamental difference between traditional quality assurance and modern total quality management?
TQM is mgt approach that involves everyone in an organizaiton in an effort to achieve excellence in all that you do.
Quality by inspections - find and correct defects. Resulting in quality goes up and cost goes up.
Total Quality management (TQM)
quality by defect prevention
-proactive mgt - design quality into the product and the process
-greater emphasis on customer satisfaction resulting in quality goes up and costs go down.
8-5 what are the seven analytical tools of total quality management?
8-6 what is a control chart? how is it used? What is the key to achieving hight quality?
A control chart is a time-ordered plot of sample statistics, used to distinquish between random and nonrandom variability.
How is it used? it monitors the variation of a critical to quality measure.
What is the key to achieivng high quality?
High quality is achieved by reducing variability.
8-7 what is process capability analysis?
it is to determine the 6 sigma range of a process' inherent variation, where sigma is the standard deviation of the measured parameter.
8-9 what are the five steps in the 6 sigma problem-solving methodolgy?
8-10 does it make sense for a company to pursue both lean and 6 sigma principles and practices? Explain?
Yes but 6 sigma is a busness process where lean is a quality measurement.
9-1 what are the types of opportunities for innovation?
- Products and services – apple, P&G
- business models – Dell, SW
- business processes – Wal-mart
- experiences - Disney
- marketing – Anheuser-Busch
- organization and culture - Google
- sustainability – Amazon.com
9-2 The “blue ocean strategy” is a methodology for business model innovation that “creates uncontested market space that makes the competition irrelevant.” What are the four key questions in this methodology?
1. Which factors that an industry takes for granted should be eliminated?
2. Which factors should be reduced well below the industry’s standard?
3. Which factors should be raised well above the industry’s standard?
4. Which factors should be created that the industry has never offered?
9-3 describe how a product can become a commodity?
A product becomes a commodity within a specific market division when market needs for each attribute or dimesnion of performance have been fully satisified by more than one available product.
9-4 What are the steps in the innovation process?
9-5 what are the five managemetn disciplines which can encourage more innovation in your company?
1. set challenging growth targets
2. establish an innovation-centerd budget
3. create enabling structures
4. allocate employee time
5. link management compensation
9-6 what is immersion/ explain how it is used to foster innovation?
Immersion is creating new concepts and solutions. You would use it by crating a compelling picture of the future, telling a powerful story. use imagery to describe a challenging goal.
9-7 what are some of the operations strategies Jong_yong Yn used to turn around Samsung?
-right sized work force
-stop production until inventory sold
-increase DRAM production capacity
-improve productivity - train employees on industrial engineering principles