SCT-3 Chapter 3

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SCT-3 Chapter 3
2012-12-10 22:11:07
Chapter SCT

SCT-3 Chapter 3
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  1. Capacity Decion
    Places each capital investment request
  2. Capacity Strategy
    Triggered by a request for capital investment
  3. Operations Strategy Is
    A set of goals, policies, and self-imposed restrictions
  4. Operations management
    Is an area of management concerned with overseeing, designing, controlling the process
  5. Capacity can sometimes be stored
    Is often difficult to determine how much of a facilities total output
  6. Capacity is technologically based
    The process technology
  7. Capacity is mixed dependent
    Different products/services consume different amounts of various resources
  8. Capacity is affected by the degree of variability of demand and processing time
    Operation also depends on the variability
  9. Capacity depends on management policies
    policies such as Floor space or machine hours can affect capacity
  10. Capacity is dynamic
    as a facility gains experience in producing a product or service
  11. Capacity is location specific
    Excess labor, materials,machinery and for space in the wrong location are not usable capacity
  12. Diseconomies of Bureaucratization
    as the scale of a facility increases
  13. The actual cost of changing over to a different product
    Such as resetting fixtures, dies, computer programs, and instruction modules
  14. Diseconomies of distribution
    if the density of its customers decreases rapidly as their distance
  15. Dynamic economies of scale
    Refers to the improvement in the total operating cost per unit
  16. Optimal economic size
    as the size of this facility increases it can exploit more
  17. Intermediate–term economies of scale
    a company can increase the size of the batches being processed
  18. Static economies of scale
    Economies that arise from using one large facility or piece of equipment
  19. Run–in and run–out cost
    The cost of higher–then–Normal errors or defects
  20. Diseconomies of vulnerability
    Should a company experiencing natural disaster the company's performance as a whole may seriously be impaired.
  21. Economies of scale
    • A facilities total
    • capital and operating costs generally increases
  22. Short-term economies of scale
    • In the short term, many
    • of the cost of operating a facility are relatively independent
  23. The cost of lost output
    • The time lost during
    • changeovers
  24. Diseconomies of confusion
    • The tendency for a
    • facility to be assigned

    more and more products
  25. Creating work cells can facilitate more or less
    continuous processing, thereby reducing the need for changeovers.

    True or False
  26. Which is not a reason managers give for
    preferring smaller facilities:
    Making too much money