OPS/571 Version 5 / 1
Week TwoStudy Guide: Process Design
Readings andKey Terms
- Ch. 4and 4 Aof Operations and Supply Chain Management
- Strategic capacity planning
- Capacity
- Best operating level
- Economies of scale
- Focused factory
- Economies of scope
- Capacity cushion
- Learning curve
- Individual learning curve
- Organizational learning curve
- Ch. 5
- Process
- Cycle time
- Utilization
- Buffering
- Blocking
- Staving
- Bottleneck
- Make-to-order
- Make-to-stock
- Pacing
- Productivity
- Efficiency
- Run time
- Setup time
- Operation time
- Flow time
- Throughput rate
- Process velocity or throughput ratio
- Value-added time
- Total average value of inventory
- Inventory turn
- Days-of-supply
- Little’s law
- Ch. 12
- Logistics
- International logistics
- Third party logistic
- Cross-docking
- Hub-and-spoke systems
- Free trade zone
- Trading bloc
- Transportation method
- Centroid method
- Ch. 13
- Lean production
- Customer value
- Value stream
- Value stream mapping
- Quality at the source
- Backflush
- Kanban and the kanban pull system
- Level schedule
- Group technology
- Kaizen
Content Overview
- Capacity planning concepts
- Economies and diseconomies of scale
- Capacity focus
- Focus on a limited set of production activities.
- Consider corporate objectives, which focus on competitive advantage.
- Capacity flexibility
- Flexible plants with quick change over times
- Flexible processes with easy equipment setup
- Flexible, cross-trained workers
- Capacity planning
- Considerations in changing capacity
- Maintaining system balance
- Frequency of capacity additions
- External sources of operations and supply capacity
- Decreasing capacity
- Determining capacity requirements
- Using a decision tree to evaluate capacity alternatives
- Planning service capacity
- Capacity planning in service versus manufacturing
- Time
- Location
- Volatility of demand
- Capacity utilization and service quality
- Process analysis
- Types of process
- Multistage versus single stage
- Make-to-stock versus make-to-order
- Process performance metrics
- Understand how the company calculates metrics before making decisions.
- Performance metrics show trends in productivity and sales.
- Understand metric application and industry standards.
- Process flowcharting
- Production process mapping and Little’s law
- Process flow time reduction
- Perform activities in parallel.
- Change the sequence of activities.
- Reduce interruptions.
- Logistics and distribution
- Logistics decision matrix
- Factory location
- Factory location issues
- Factory location decision methods
- Service facilities location considerations
- Lean supply chain
- How lean applies
- Lean production
- Lean logic
- Lean suppliers
- Lean procurement
- Lean manufacturing
- Lean warehousing
- Lean logistics
- Lean customers
- Toyota production system (TPS)
- Elimination of waste
- Respect for people
- Lean supply chain principles
- Lean layouts
- Group technology
- Quality at the source
- JIT production
- Lean production schedules
- Uniform plant loading
- Kanban production control system
- Determination of number of kanbans needed
- Minimizing setup times
- Lean supply chains
- Specialized plants
- Working with suppliers
- Building a lean supply chain
- Lean services
- Organize problem-solving groups.
- Upgrade housekeeping.
- Upgrade quality.
- Clarify process flows.
- Revise equipment and process technologies.
- Level the facility load.
- Eliminate unnecessary activities.
- Reorganize physical configuration.
- Introduce demand-pull scheduling.
- Develop supplier networks.
- Value stream mapping
- Flowcharting tool
- Creation of lean process
- Full understanding of business
- Production process
- Materials flow
- Current state
- Future state
- Cost impact and payoff analysis
- Decision trees
- Stakeholder analysis
- Balanced scorecard
- Process dashboards
- Business process reengineering
- Organize around outcomes, not tasks.
- Have those who use the output of the process perform the process.
- Merge information processing work into real work that produces information.
- Link parallel activities.
- Put the decision point where the work is performed.
- Capture information once, at the source.
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