1. 5-1a What is the objective of S&OP?
    A repetitive mgt process to efficiently match S&D.
  2. 5-1b How frequently should S&OP be performed?
    Usually monthly but can be updated more grequently
  3. 5-1c What are the ouputs of the S&OP process?
    • Sales Plan
    • Master production schedule
  4. 5-2a What is the objective of aggregate planning?
    Achieve rough equality demand and power over the entire planning scope
  5. 5-2b What can you do to stimulate demand with aggregate planning?
    • pricing and financing
    • promotions
    • back orders
    • new demand
  6. 5-2c What can you do to adjust capacity?
    • Open or close plants
    • hire or layoff workers
    • subcontracting
    • create overtime or slack-time
  7. 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.
  8. 5-4a which demand forecasting would you use to support S&OP?
    • moving average
    • expnential smoothing
    • analogy
  9. 5-4b which forecasting technique woudl you use to support aggregate planning?
    • Trend
    • Seasonal
    • Analogy
  10. 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
  11. 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
  12. 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
  13. 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
  14. 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
  15. 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)
  16. 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
  17. 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
  18. 6-3b how much is the typical annual carrying cost?
    10-30% of cost of sales
  19. 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.
  20. 6-4b MRP answers 3 questions:
    • What is needed?
    • How much is needed?
    • When is it needed?
  21. 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
  22. 6-5a what is manufacturing resource planning (MRPII)?
    it is the process of determining short-term capacity requirements.
  23. 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.
  24. 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.
  25. 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
  26. 6-6c Why is it important?
    because it automates the business process such as order entry, production, shipping, billing, and payment.
  27. 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
  28. 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.
  29. 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
  30. 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
  31. 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
  32. 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
  33. 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
  34. 6-13a What is third-party logistics?
    • -ouytsourcing logistics mgt
    • services include:
    • -transportation
    • -warehousing
    • -packaging
    • -customized final assembly
  35. 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
  36. 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
  37. 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."
  38. 7-3 what is the 'kanban' principle?
    A system of cards or signals that communicates demand and provides authorzation to move or work parts
  39. 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.
  40. 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.
  41. 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.
  42. 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.
  43. 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)
  44. 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
  45. 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
  46. 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
  47. 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.
  48. 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
  49. 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
  50. 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.
  51. 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.
  52. 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
  53. 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
    • -customer returns
    • -warranty claims
    • -field service adjustments
    • -product recall
    • -loss of good will
    • -lawsuits
  54. 8-3 How much is the typical cost of quality?
    10-30% of revenue
  55. 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.
  56. 8-5 what are the seven analytical tools of total quality management?
    • -flow charts
    • -check sheets
    • -histograms
    • -pareto charts
    • -scatter diagrams
    • -control charts
  57. 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.
  58. 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.
  59. 8-9 what are the five steps in the 6 sigma problem-solving methodolgy?
    • -define
    • -measure
    • -analyze
    • -improve
    • -control
  60. 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.
  61. 9-1 what are the types of opportunities for innovation?
  62. - Products and services – apple, P&G
    • - business models – Dell, SW
    • - business processes – Wal-mart
    • - experiences - Disney
    • - marketing – Anheuser-Busch
    • - organization and culture - Google
    • - sustainability –
  63. 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?
  64. 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.
  65. 9-4 What are the steps in the innovation process?
    • -recognize
    • -investigate
    • -observe
    • -visualize
    • -design
    • -implement
    • -refine
  66. 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
  67. 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.
  68. 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".
Card Set
Op Mgt Final notes