Productions Operations Management Final Exam Review

Primary Characteristics of Project Management [Ch. 8]
1) well defined goal
2) interrelated activities
3) beginning/end time
4) budget
5) uniqueness
Project Management [Ch. 8]
application of knowledge necessary to complete a project
5 Categories of Project Management[Ch. 8]
1) project initiation
2) project planning
3) project execution
4) project control
5) project closure
Figure 8.1 3 Interrelated Constraints [Ch. 8]
defines a project in terms if its (sub)projects, tasks, activities
Project Risk Management Categories (4)[Ch. 8]
1) Financial resource risk
2) Human resource risk
3) Supply risk
4) Quality risk
Table 8.7 Critical Factors in Project Failure (5) [Ch. 8]
1) change in expectations
2) change in importance
3) change in need for the project
4) change in complexity
5) change in user needs
Capacity Strategy – Wait-And-See [Ch. 10]
cancelling commitments to build until demand has already exceeded capacity
Capacity Strategy – Aggressive[Ch. 10]
capacity is added in large leaps w expectations that demand will eventually catch up
Capacity Cushion [Ch. 10]
the difference between average utilization and 100 percent capacity
Future Capacity Needs[Ch. 10]
1) estimate future capacity requirements
2) ID gaps b/w existing and projected requirements
3) develop alternative strategies
4) Choose most appropriate alternatives
Capacity Alternatives [Ch. 10]
1) incorporating flexibility
2) looking at the big picture
3) dealing w capacity increments
4) moving out capacity requirements
5) accounting for life cycle stages
Systematic Capacity Planning[Ch. 10]
1) estimating future capacity requirements
2) ID capacity gaps
3) developing capacity strategies
4) choosing alternatives
Service Capacity[Ch. 10]
1) Time
2) Location
3) Volatility of Demand
4) Capacity Utilization and Service Quality
Sources for Quality Improvement [Ch. 11]
1) Customer Feedback
2) Benchmarking
3) Employee Feedback
Qualitative Improvement Tools[Ch. 11]
1) Brainstorming
2) Affinity Diagram
3) Tree Diagram
Brainstorming[Ch. 11]
method for generating problem solving ideas in a short amount of time from a lot of different individuals
Affinity Diagram[Ch. 11]
visual tool used to organize generated ideas into natural groups based on wisdom of participants
Tree Diagram[Ch. 11]
diagram used to describe how ideas turn into sub ideas
Quantitative Improvement Tools [Ch. 11]
1) Sampling
2) Histogram
3) Scatter Diagram
Sampling[Ch. 11]
selecting a few observations to represent an entire population
Histogram[Ch. 11]
a graph used to show how often different values in a set of data occur
Scatter Diagram[Ch. 11]
a graph used to look for the relationship between two variables to identify their correlations
Lean Production [Ch. 12]
a production system that is designed to eliminate waste by reducing supplier, customer, and internal variability
Lean Principle 1[Ch. 12]
the production system should be defined from the customer’s POV
Lean Principle 2 [Ch. 12]
each step should be evaluated based on value contribution
Lean Principle 3[Ch. 12]
the value creating sequence should be organized in a tight and integrated sequence to flow easier to the customer
Lean Principle 4 [Ch. 12]
products pulled by customers should be the driver for planning, organizing, and scheduling upstream production activities
Lean Principle 5[Ch. 12]
pursue production through continuous improvement
Waste Elimination – Muda[Ch. 12]
Japanese term for production activities that are wasteful and do not add value
Waste Elimination – Mura [Ch. 12]
wastes associated with the unevenness of the process
Waste Elimination – Muri [Ch. 12]
the waste resulting for overburden or unreasonableness [Ch. 12]
Components of Lean Production Systems – Pull System [Ch. 12]
production system that uses customer demand as the primary driver for production planning
Components of Lean Production Systems – Push System [Ch. 12]
production system that is based on estimated customer demand
5 S’s[Ch. 12]
1) sort
2) straighten
3) shine
4) standardize
5) sustain
Lean Six Sigma
management approach that combines lean production and six sigma concepts
Lean Six Sigma Laws [Ch. 12]
1) Law of the market
2) Law of of flexibility
3) Law of focus
4) Law of velocity
5) Law of complexity of cost
Product Technology [Ch. 13]
features and characteristics of a particular product or service
Process Technology [Ch. 13]
the methods, procedures, and equipment associated with goods or services
Information Technology [Ch. 13]
the use of computers ad other electronic equipment to collect, store, process ,and send information
Back Office Activities[Ch. 13]
activities that customers do not directly interact with
Front Office Activities [Ch. 13]
activities that directly involve the customer and require their presence
Manufacturing Technology – Processing Technologies [Ch. 13]
technologies that physically move shape, form, cut, or assemble products
Manufacturing Technology – Design Technologies [Ch. 13]
technologies that assist in developing plans for producing products
Manufacturing Technology – Administrative Technologies [Ch. 13]
technologies that assist in tracking information related to the manufacturing process
Bullwhip Effect [Ch. 13]
situation in which variance in demand increases from downstream to upstream in a supply chain
External Causes[Ch. 13]
1) Variable Delivery Times
2) Incorrect Shipment Quantities
3) Volume Changes
4) Service and Product Mix Changes
Internal Causes [Ch. 13]
1) Service/Product Promotions
2) Information Errors
3) New Service /Product Introductions
4) Engineering Changes
5) Internally Generated Shortages
Minimizing the Bullwhip Effect[Ch. 13]
1) Coordinating Information
2) Inventory Policies
3)Cooperation Among Supply Chain Members
Typical Benefits of New Technologies[Ch. 13]
1) Cost Reductions
2) Increased Product Variety
3) Improved Quality
4) Faster Cycle Times
Automating[Ch. 13]
an approach to technology that seeks to replace workers and preserve the stats quo
Informating[Ch. 13]
an approach to technology that focuses on learning as a continuous process
Globalization [Ch. 14]
the process of making everyday life standardized of cultural expressions around the world
Why Should You Globalize?[Ch. 14]
1) Access to cheaper labor and operating costs
2) Knowledge and skills
3) Resources
4) New Markets
5) Tax and financial incentives
Adaptation[Ch. 14]
boosting revenue and market share by maximizing local presence in a country
Aggregation[Ch. 14]
achieving economies of scale by creating regional or global operations
Arbitrage[Ch. 14]
the exploitation of differences among national or regional markets
5 Stages of Global Restructuring[Ch. 14]
1) Enter new Markets
2) Move production abroad
3) Disaggregate the value chain
4) Reengineer the value chain
5) Create new Markets
Multinational Corporation MNC [Ch. 14]
business enterprise that manages production establishments or delivers services in at least two countries
Horizontally Integrated MNC[Ch. 14]
corporations that use production located in different countries to produce the same or similar product
Vertically Integrated MNC[Ch. 14]
corporations that use plants in certain countries to produce input products
Diversified MNC[Ch. 14]
corporations that use production plants in different countries, but are neither horizontally or vertically integrated
Globalized Production Functions[Ch. 14]
1) Manufacturing
2) Procurement
3) Maintenance and Monitoring
4) Customer Service
Classification of International Production Facilities[Ch. 14]
1) Offshore Factory
2) Source Factory
3) Server Factory
4)Contributor Factory
Outsourcing[Ch. 14]
turning over all or part of an organizational activity to an outside vendor
Offshoring[Ch. 14]
transferring production from one country to another w or w/o outsourcing to a supplier orgainization
Business Process Outsourcing BPO[Ch. 14]
outsourcing financial services to another country