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5-1a What is the objective of S&OP?
A repetitive mgt process to efficiently match S&D.
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5-1b How frequently should S&OP be performed?
Usually monthly but can be updated more grequently
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5-1c What are the ouputs of the S&OP process?
- Sales Plan
- Master production schedule
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5-2a What is the objective of aggregate planning?
Achieve rough equality demand and power over the entire planning scope
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5-2b What can you do to stimulate demand with aggregate planning?
- pricing and financing
- promotions
- back orders
- new demand
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5-2c What can you do to adjust capacity?
- Open or close plants
- hire or layoff workers
- subcontracting
- create overtime or slack-time
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5-3 Explane exponential smoothing forecasting technique.
It's based on the previous forecast plus a precentage of the differenb etween that forecast and the actual value of the series at that point. The key is to select an appropriate smoothing factor.
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5-4a which demand forecasting would you use to support S&OP?
- moving average
- expnential smoothing
- analogy
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5-4b which forecasting technique woudl you use to support aggregate planning?
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5-5 Your company is considering a strategice capacity addition. Explain how you would go about planning for the new facility.
- set a goal and targe date
- extablish two planning teams
- -external
- -facility design team
- select a location
- define layout and workflow
- identify equipment and select technology
- create a desing for the facility
- obtain regulatory approvals
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what are some things that an Op Mgr can do to protect against a down-turn to protect the business?
- Develop preliminary cost estimate for the facility
- verify financial viability
- make go-no go decisions
- perform design
- construct the building
- purchase and install equipment and information systems
- recruite and train staff
- dry run the operations
- launch operation
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What are opportunities and threats for globalizing a business?
- Oppoirtunities are:
- -exports products and service into internatial markets
- -out-source products, parts and services from lower cost countries
- -direct investment in foreign countries to manufacture products for sale in international markets and/or the U.S.
- -sell products and services to foregin companies that are investing in operations in the U.S.
- Threats
- -Competition in U.S. markets from imports of low cost products, parts and services
- -when key customers invest in offshore production, suppliers may need to follow to stay in the game
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5-8 discuss strategies for effective global operation management
- -achieve better understanding of emerging markets
- -partner with local companies
- -create custom features for local tastes
- -pay attention to details
- -secure low cost labor and material sources
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5-9 what did you learn from the Siemens-Yazake joint venture at Ford's supplier campus?
- -joint venture between German and Japanese company
- -SY supports ford and other tier-1 suppliers
- -supports JIT
- -co-location improves response to changing demand
- -lead-time for delivery from Asia exceeds S&OP planning horizon
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6-1 what are the different types of inventory?
- -raw materials and purchased parts
- -work in progress (materials that have gone through change but are not yet ready.)
- -Finished products (manufacturing fimrs)
- -merchandise available for sale (retail firms)
- -pipeline (supply chain) product in transit
- -spare parts
- -maintenace/repair.operating supplies (MRC)
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6-2 what is an inventory management system?
- A set of policies and controls that:
- -monitor levels of inventory
- -establish wht levels should be maintained
- -decide when stock should be replenished
- -determine how large orders should be
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6-3a what are some of the costs of carrying inventory?
- Inventory Holding Costs:-interest
- -storage
- -magerial handling
- -insurance, taxes
- -depreciation
- Ordering Costs Include:-placing the order
- -shipping costs
- -receiving and inspecting the order
- -moving the order to storage
- -payment of invoice
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6-3b how much is the typical annual carrying cost?
10-30% of cost of sales
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6-4 what does a material requirment planning (MRP) system do?
It is a computer-based informaiton system that translates master schedule requirements into time-phased requirements for sub-assemblies, components, and raw materials.
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6-4b MRP answers 3 questions:
- What is needed?
- How much is needed?
- When is it needed?
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6-4c The 3 inputes are:
- Master production schedule-what products to use
- -when thy are needed
- -what qty's
- Bill of materials:-a listing of all assemblies and parts to produce one unit of the finishe dproduct
- Primary data includes:gross requirments, scheduled receipts, expected amount on hand at the beginning of th etime period, safety stock, and net requirements.
- Additional data includes:-supplier
- -lead time
- -lot size policy
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6-5a what is manufacturing resource planning (MRPII)?
it is the process of determining short-term capacity requirements.
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6-5b How does MRPII work?
Apply MRPII to determine materials requirements then calculate resources to produce material at each work center. Verify probability and adjust schedule and capacity as necessary.
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6-6a what is an ERP system?
ERP is software that provides a system to caputre and make data available in real-time to decision makers and other uses in the organizaiton.
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6-6b what are some of the functional modules?
- -forecasting
- -master production
- -scheduling-material requirement planning
- -inventory
- -purchasing and receiving
- -order entry and sales mgt
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6-6c Why is it important?
because it automates the business process such as order entry, production, shipping, billing, and payment.
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6-7 what are the essential practices for making ERP successful?
- -standardize and improve business processes
- -integrate company's infomration systems
- -make sure everyone has the same, current information
- -integrate the supply chain
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6-8 what did you learn about implementing ERP and H&B?
- -implementing ERP required a culture change
- -H&B now ships 80% of orders on time compared to 40% preciously.
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6-9 what are some of the factors you should consider to qualify a supplier as certified supplier?
- -supplier rating is based on performance record
- -if supplier has a gold rating, they do not require receiving inspecitons
- -if a supplier falls below a bronze rating, they require corrective action
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6-10a what is a supply chain?
- A supply chian is the sequence of organizations
- -facilities
- -purchasing
- -inventory mgt
- -scheduling
- -productions
- -distribution
- -delivery
- -customer service
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6-10b what are the factors you need to consider to optimize a supply chain?
- -facilities
- -funtions and activities
- -optimizing a supply chian which include:
- -supply chain network design
- -logistics design
- -inventory and servide level optimization
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6-11 what are the benefits of effective supply chain mgt?
- -higher levels of order fulfillment
- -greater flexibility and agility
- -shorter lead times
- -lower inventory and carrying costs
- -higher productivity
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6-12 what are some principles and practices you would use to create a "lean" supply chain?
- -Demand drive supply chain
- -level master prodution schedule and level supply chain schedules
- -lean processes used throughout hte supply chain
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6-13a What is third-party logistics?
- -ouytsourcing logistics mgt
- services include:
- -transportation
- -warehousing
- -packaging
- -customized final assembly
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6-13b what are the benefits of third-party logistics?
- -supply chain logistics is a core competency for 3PL providers
- -3PL's can have economies of scale for various operations
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7-1 Lean is a disciplined approach to eliminating waste in all processes. What are some exemples of waster from a lean perspective?
- 1. over-production
- 2. time spent waiting
- 3. excessive inventory
- 4. Excessive motion
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7-2 toyota production system was established on two important concepts. What are they and how do they work?
- 1. JIT "right part, right amount, right time".
- 2. Jidoka; (in-station quality) "stop to fix problems."
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7-3 what is the 'kanban' principle?
A system of cards or signals that communicates demand and provides authorzation to move or work parts
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7-4 what are some of the important lean principles? Do these principles apply in a service business?
- 1. JIT
- 2. Jidoka - stop the line if a defective unit is produced
- 3. Six-sigma quality - designed into the produciton process
- 4. Kaizem: (continuous improvement_ Operators involved in process improvement.
- Yes.
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7-5 what is the fundamental difference between MRP and a lean system (JIT) for production planning and control?
MRP is push while JIT is a pull system.
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7-5 are there circumstances where MRP and JIT are compatible or can coexist? Explain
- 1. MRP can be used for planning while
- 2. Jit can be used on the shop floor for production.
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7-6 what is a value stream?
The collection of steps (both value and non-valued added_ involved in producing and delivering a product or service to a customer.
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7-6b what are the 3 types of process steps ina value stream?
- 1. Value creators (create value)
- 2. Enables (don't create value but are required_
- 3. Waste (don't create value but can be eliminated)
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7-6c What are the measurable benefits of eliminating non-value added steps?
- 1. reduce overall cycle time
- 2. increase profitability
- 3. increase customer satisfation
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7-7 you have the opportunity to transform your company's operations to a "lean" model. How would you go about it?
- 1. analyze value stream
- 2. design flow process
- 3. Level production schedule
- 4. Implement Kanban pull
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7-8 the article "no satisfaction at toyota? described Toyota's philosophy of continuous improvment. How did they describe the content of everyone's work?
- 1. Changed from painting with common applicator to cartridge.
- 2. changed from racks to totes
- 3. boss job is to find way sto do work better
- 4. need to talk about problems together
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7-9 the article "toyota's experiment at NUMMI described the turnaround of a failed GM plant. How did they do it?
- 1. Toyota provided a new socal context for work. UAW's hundred job descriptions were replaced by one team member.
- 2. Management hierarchy was flattened from fourteen levels to three
- 3. Spent over $3M to sen dnew group and team leaders for training in the Toyota production system.
- 4. Workers were empowered to make things better.
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What are soem of the dimesnions of sustainable operations? What are some key environmental impact metrics?
- 1. Resources
- -energy resources
- -water resources
- 2. Environmental impacts
- -climate change
- -water pollution
- -air pollution
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7-11 identify some sustainable operations strategies designed to increase revenue, to reduce cost and risk and to enhance reputation.
- 1. Develp new products and services which are more nergy efficient.
- 2. comply with government mandates
- 3. obtrain certification to environmental standards
- 4. implement recycling
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7-12 What is ISO 14001
it is a standard for environmental management systems it provides a template for setitng up an environmental management system.
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7-12 would it be a good idea for your company to seek ISO 14001 certification and why?
yes. It requires an organization to: control and reduce its impact on the environment.
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8-1 the american society for quality has identified four primary determinants of quality for products and services. What are they? give examples
- 1. Desing - which include
- -aesthetics
- -performance
- -features and funtions
- 2. conformance
- -compliance with maufacturing specifications, reliabilith, durability
- 3. base of use
- -user-friendly
- 4. serviceabiltiy
- -service after sale
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8-2 the cost of quality includes prevention and assurance costs and failure costs. What are some prevention costs? Whare sre some assurance costs? What are some failure costs?
- Preventive Costs-quality planning
- -quality training
- -quality improvement
- -supplier certification
- -PM's
- Assurance Costs-inspection and testing
- -process control
- -acquiring special test equipment
- -calibrating test equipment
- -quality audits
- -quality reporting
- Failure cost internal-scrap
- -rework
- re-inspeciton
- -labor and machine downtime
- External Failure
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customer returns - -warranty claims
- -field service adjustments
- -product recall
- -loss of good will
- -lawsuits
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8-3 How much is the typical cost of quality?
10-30% of revenue
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8-4 What is the fundamental difference between traditional quality assurance and modern total quality management?
- TQM is mgt approach that involves everyone in an organizaiton in an effort to achieve excellence in all that you do.
- Traditional
- Quality by inspections - find and correct defects. Resulting in quality goes up and cost goes up.
- Total Quality management (TQM)
quality by defect prevention - -proactive mgt - design quality into the product and the process
- -greater emphasis on customer satisfaction resulting in quality goes up and costs go down.
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8-5 what are the seven analytical tools of total quality management?
- -flow charts
- -check sheets
- -histograms
- -pareto charts
- -scatter diagrams
- -control charts
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8-6 what is a control chart? how is it used? What is the key to achieving hight quality?
- A control chart is a time-ordered plot of sample statistics, used to distinquish between random and nonrandom variability.
- How is it used? it monitors the variation of a critical to quality measure.
- What is the key to achieivng high quality?
- High quality is achieved by reducing variability.
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8-7 what is process capability analysis?
it is to determine the 6 sigma range of a process' inherent variation, where sigma is the standard deviation of the measured parameter.
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8-9 what are the five steps in the 6 sigma problem-solving methodolgy?
- -define
- -measure
- -analyze
- -improve
- -control
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8-10 does it make sense for a company to pursue both lean and 6 sigma principles and practices? Explain?
Yes but 6 sigma is a busness process where lean is a quality measurement.
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9-1 what are the types of opportunities for innovation?
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- Products and services – apple, P&G
- - business models – Dell, SW
- - business processes – Wal-mart
- - experiences - Disney
- - marketing – Anheuser-Busch
- - organization and culture - Google
- - sustainability – Amazon.com
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9-2 The “blue ocean strategy” is a methodology for business model innovation that “creates uncontested market space that makes the competition irrelevant.” What are the four key questions in this methodology?
- 1. Which factors that an industry takes for granted should be eliminated?
- 2. Which factors should be reduced well below the industry’s standard?
- 3. Which factors should be raised well above the industry’s standard?
- 4. Which factors should be created that the industry has never offered?
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9-3 describe how a product can become a commodity?
A product becomes a commodity within a specific market division when market needs for each attribute or dimesnion of performance have been fully satisified by more than one available product.
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9-4 What are the steps in the innovation process?
- -recognize
- -investigate
- -observe
- -visualize
- -design
- -implement
- -refine
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9-5 what are the five managemetn disciplines which can encourage more innovation in your company?
- 1. set challenging growth targets
- 2. establish an innovation-centerd budget
- 3. create enabling structures
- 4. allocate employee time
- 5. link management compensation
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9-6 what is immersion/ explain how it is used to foster innovation?
Immersion is creating new concepts and solutions. You would use it by crating a compelling picture of the future, telling a powerful story. use imagery to describe a challenging goal.
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9-7 what are some of the operations strategies Jong_yong Yn used to turn around Samsung?
- -right sized work force
- -stop production until inventory sold
- -increase DRAM production capacity
- -improve productivity - train employees on industrial engineering principles
- -create work class "Samsung productions system".
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