Relates to the manufacturing or putting together of parts in a specific way time and time again.
Consists of Tangible goods.
What is Operations?
Service functions. Fastest growing sector in the U.S. accounting for 80% of the GDP.
Consists of intangible output
Labor intensive
Define POM/SCM
Management of an organization's production system which converts/transforms inputs into the orgnization's outputs.
Describe the Production system model.
Three functions that must be accomplished without exception.
Marketing, Production/Operations, Marketing
What are the two types of Operations Decisions?
1. System Design
2. System Operations
Describe System Design.
1. Made by top management
2. Long-term Decisions
3. Difficult to reverse once made
4. Requires scanning external environment
Describe System Operations
1. Short to mid-term decisions
2. Made by middle to lower management
3. Easier to recover and less critical decisions
4. Mostly internal decisions
What is the Pareto Analysis (80/20 rule)?
5% of the worlds population owned 95% of the worlds wealth.
Pareto Analysis is based on ABC Inventory analysis. Describe ABC Inventory Analysis.
A category Items: Very expensive and significant
B category Items: Middle value
C category Items: Lowest value/unimportant
What is a model?
Abstraction/representation of some reality or phenomenon. It represents something that is not easily describable.
What are 3 forms of models?
1. Physical
2. Schematic/Graphical
3. Mathematical
Describe a physical model.
The least abstract and most expensive type of model.
Describe a schematic/graphical model.
Represented by graphs, tables, illustrations, charts and pictures. More abstract and less expensive than physical models.
Describe Mathematical Models
Most abstract and least expensive of the 3 models.
Which of the 3 models is most widely used by POM/SCM?
Schematic/graphical
What are the 3 types of production systems?
1. Assembly/Mass Production
2. Lean Production
3. Craft Production
Describe Assembly/Mass Production.
High Volume
Low variety/design
Low skilled labor
Describe Lean Production.
Large Volumes
Some Variety
Skilled Labor
Describe Craft Production
Low volume
High Variety
Very high labor skills
What is e-business?
Conducting business online.
What does the Supply Chain consist of?
Set of independent firms, functions, or activities that advance materials and information forward in the chain while adding value to the products/services.
What is SCM?
Management of the Chain and processes within it.
What does the SCM Chain consist of?
What does Sourcing include?
in-bound, transportation, purchasing, supplier relationships and development, early supplier involvement
What does Production include?
product and process design, production planning and control, inventory management, quality control, facilities layout and material handling...
What does Marketing, Distribution and Logistics include?
Outbound transportation and distribution, traffic, reverse logistics, packaging, e-logistics.
How much waste is there in the entire POM/SCM chain?
95% wasteful activites.
What did the industrial revolution bring to POM/SCM?
Steam Engine
Cottage System - machine power replaced human power.
Interchangeable parts were created by Eli Whitney
What did the Post Civil War Era bring to POM/SCM?
Capacity expansion,
Influx of cities,
Westward expansion,
Immigration,
What did Scientific Management bring to POM/SCM?
Taylor- Father of Scientific Management
-Time and motion studies
-Ergonomics
What did the Human Relations/Behavioral School of Management bring to POM/SCM?
Mayo- Hawthorne Studies- Human worth and dignity
What did Operations Research bring to POM/SCM?
Uses mathematics and computers to allocate scarce resources to competing needs
What did the Service Revolution (1970's) bring to POM/SCM?
Decline in manufacturing, service jobs created
What did Automation/Computers bring to POM/SCM?
Automation/Robotics became common. Widespread use of computers
What is Productivity?
How efficiently Resources are used by an organization. P= O/I
Which of the following is not a type of conversion or transformation used in a production system model?
E. Organizing
T/F System Decisions and Operational Decisions require the same time horizons for implementation.
F.
T/F Mathematical models are the least abstract and most costly of all three models used in POM/SCM.
T
Who was the father of Scientific Management?
E. Taylor
What is Single Factor Productivity?
Measures productivity with only one input.
What is Multi-factor productivity?
Measures productivity with more than one input.
(DL, DM, FO)
T/F Direct Labor, Direct Material and Factory Overhead are all Inputs.
T
What are the 8 factors that affect productivity?
MaMe
TeQuCa
SoE
WESS
1. Management
2. Method
3. Technology
4. Quality
5. Capital
6. State of Economy
7. Work Environment
8. Safety and Security
What is Productivity Growth and the formula for PG?
Shows the rate of productivity change from one period to another.
PG= Current peiod productivity-Previous period productivity/Previous Period Productivity
What is Efficiency?
Doing things right/resources wisely and without unneccessary waste.
What are the rules for evaluating productivity and quality measures?
E. All of the Above
T/F CCV occurs randomly
F
T/F SCV can be ignored
T
T/F CCV is not random
What are the 5 factors of competitiveness at market level?
PQF
StM
PSS
1. Price
2. Quality
3. Flexibility
4. Speed to Market
5. Post-Sales Service
What are the 6 Determinants of competitiveness?
P/SQ
R
PF
PC
CI
SB
1. Product/Service Quality
2. Responsiveness
3. Process Flexibility
4. Process Control
5. Continuous Improvement
6. Skill Base
What are the 4 Barriers to Competitiveness?
1. Inflexible Organizations
2. Inadequate Technology
3. Innapropriate Performance Measures
4. Lack of Career Esteem
What are Order Winners?
Features/Aspects of products or services that encourage customers to buy the products.
-Low Cost, High Quality, Ease of Use
What are Order Qualifiers?
Features/Aspects of products/services that allow the organization to compete in the market.
-Dependability, Reliability, Performance
What are Order Losers?
Features/Aspects of the Product/Service that cause customers to reject the company's products/services.
-Lack of Dependability/Reliability
-Poor Safety
Which are true and which are false about Operations/Manufacturing Strategy?
1. Part of the Business Strategy
2. Must be done by Top Managament
3. Cover a strategic period of time
4. Must scan external environment
5. Create a niche/competitive advantage
6. Assists to bring a focus to a company's operations.
1-6. All true
T/F There are at least two ways of describing quality. One is descriptive or a direct definition for quality. The other one is to define the dimensions of quality.
T
Which of the following is a correct statement about quality?
B. Poka Yoke is a kind of prevention cost.
T/F Prevention costs are the lowest cost of quality because they incorporate the external failure costs in them.
F.
T/F Deming is the most important quality pioneer. He advocated the involvement of top management in quality. Deming also developed the concept of Quality Trilogy.
F.
Which of the following is NOT a correct statement about quality?
A. Quality status is a constant and should not be changed over time
T/F Tangible dimensions of service quality is least important among all dimensions of service quality because physical facility and appearance of the surroundings have very little to do with the service delivery.
F
Which of the following is NOT a correct statement about cause-effect diagrams:
A. Poke Yoke is a part of the diagram
T/F Check sheets do not generally provide much useful information for decision makers in the field of quality.
F.
T/F x-control charts are used for proportional data while p-control charts are used for data such as time.
F.
Whic of the following is NOT a quality tool:
A. TQM
T/F One of Deming's 14 points is:
Create constancy of purpose towards improvement.
T
T/F One of Deming's 14 points is:
Cease dependence on inspection
T
T/F One of Deming's 14 points is:
Improve constantly and forever.
T
T/F One of Deming's 14 points is:
Drive out fear
T
T/F One of Deming's 14 points is:
Break down barriers between departments
T
T/F One of Deming's 14 points is:
Eliminate slogans
T
T/F One of Deming's 14 points is:
Eliminate management by objective
T
T/F One of Deming's 14 points is:
Institute education and self-improvement
T
T/F One of Deming's 14 points is:
The transformation is everyone's job
T
T/F Product/Service design is the most imporatnt activity that any organization undertakes.
T
Which of the following is NOT a correct statement about product design?
B. Product design is so powerful that it can improve the organizational
efforts equally at any stage in the product/service design process
T/F Concurrent engineering and sequential design are both equally useful in improving product design.
F
T/F Mass customization and delayed differentiation are basically the same except for timing of the customization.
T
Which of the following is NOT a stage of product life cycle?
E. Adolescence
T/F Reliability is measured in terms of time because time is the enemy of reliability.
T.
Which of the following is NOT a correct statement about nomal probability distribution:
E. It is between 0 and 1.
T/F One potential way to improve reliability is to improve user education.
