OPMT Chapt.1, 2,4, & 5

the upper limit or ceiling (maximum) on the load that an operating unit can handle; ex. # of bicycles produced per hour or # of computer upgrader per hour; need include equipment, space, & employee skills

the maximum output rate or service capacity an operation, process, or facility is designed for; what it was made to produce under ideal conditions

design capacity minus allowances, such as personal time, maintenance, and scrap; ex. lunch & coffee breaks; increase by correcting quality problems, keep equipment in good condition, & fully train employees

build capacity in anticipation of future demand increases

build capacity in response to demand exceeding current capacity

build capacity in response to and at pace with increasing demand, but in relatively small increments

extra capacity used to offset demand uncertainty; amount in excess of expected demand; capacity - expected demand equals this; greater uncertainty, greater this needs to be

an operation in a sequence of operations whose capacity is lower than that of the other operations; evidence of an unbalanced system; reduces capacity of the system

if the output rate is less than the optimal level, increasing the output rate results in decreasing average unit costs; ex. standardization reduces unit costs

if the output rate is more than the optimal level, increasing the output rate results in increasing average unit costs; can be from worker fatigue, equipment breakdowns, the loss of flexibility

something that limits the performance of a process or system in achieving its goals; market (insufficient demand), resource (too little of workers, equipment, space, etc.), material (too little of them), financial (insufficient funds), supplier (unreliable), knowledge/competency (missing or incomplete skills), & policy (interference of laws & regulations

the volume output at which total cost and total revenue are equal; no loss, no gain

the management of systems or processes that create goods and/or provide services

a set of interrelated parts that must work together; a bus. org. is composed of marketing, operations, & finance subsystems; emphasizes interrelationships among subsystems; the whole is greater than the sum of its parts; outputs & objectives of the organization more important than any one subsystem

one or more actions that transform inputs into outputs

Frederick Winslow Taylor

Henry Ford

system in which low-skilled workers use specialized and often costly machinery to produce high volumes of standardized goods

the effectiveness of an organization in the marketplace relative to other organizations that offer similar products/services

the plan/map that determines how an organization pursues it's goals; basic businesses ones are low cost, responsiveness, and differentiation

characteristics that customers perceive as minimum standards of acceptability for a product or service to be considered as a potential for purchase; necessary for me to even consider purchasing needs

characteristics of an organization's goods or services that cause it to be perceived as better than competition; wants

a measure of the effective use of resources, usually expressed as the ratio output to input; a direct impact on competitiveness; makes higher standards of living (you can do more with less), its a competitive advantage in the marketplace, & it makes things less likely to be replaced/removed; tracks performance over time

the difference between the cost of inputs and the value or price of outputs; for non-profit orgs. its their value to society; for profit orgs. its measured by the prices customers are willing to pay for goods/services; firms use profits to invest in R&D, new facilities & equipment, and workers salaries

the capability of an organization to produce an item at an acceptable profit

the capability of an organization to provide a service at an acceptable cost or profit

dismantling and inspecting a competitors product to discover product improvements

the responsibility a manufacturer has for any injuries or damages caused by a faulty product; companies can lose reputation, customers, and loyalty

the evaluation of the environmental impact of a product or service throughout its useful life; factors like global warming, oxygen depletion, and solid waste generation

examining the function of parts and material to reduce cost and/or improve performance; reduce of the 3 R's

refurbishing used products by replacing worn-out or defective components and reselling them; reuse of the 3 R's

a strategy of producing basically standardized goods or services, but incorporating some degree of customization in the final product or service; individuality, cost may take longer to receive

the process of producing, but not quite completing a product or service until customer preferences are known; one way to provide mass customization; products still basically standardized; postponement tactic; hold in inventory; quickly add customers choice and speedy delivery

component parts are grouped into modules that are easily replaced or interchanged; second way to provide mass customization; easier & simpler to diagnosis & remedy failure, repair & replacement, & quick manufacture & assembly; there's a limited # of possible product configurations (low variety); to repair a faulty module the entire module must often be scrapped (higher cost)

consistently; the ability of a product, part, or system to perform its intended function under a prescribed set of conditions

results in products or services that can function over a broad range of conditions

bringing engineering design and manufacturing personnel together early in the design phase; marketing, engineering, and operations working all at one time and together; departments are communicating