operations
the part of a business/organization that is responsible for producing goods and/or services--planning, coordinating, controlling assets to create goods and services
value-added
the difference between the cost of inputs and the value/price of outputs
primary supply chain
those who actually touch the good or service
secondary supply chain
not directly interacting with the product, supporting the primary chains (ex. HR, Finance)
Transformation process
inputs -> transformation adds value -> outputs (goods/services)
Inputs
Land, labor, capital, technology, energy
Operations impacts...
all financial statements
competitiveness
how effectively an organizations meets the wants and needs of customers relative to other that offer similar goods
mission
the reason for the existence of an organization
goals
provide detail and scope of the mission, foundation of the development for strategies
strategies
plans for achieving organizational goals
tactics
the methods and actions taken to accomplish strategies
core competencies
the special attributes or abilities that give an organization a competitive edge
order qualifiers
characteristics that customers perceive as minimum standards of acceptability to be considered as a potential for purchase
order winners
characteristics of an organizations goods or services that cause it to be perceived as better than the competition
external factors
economic conditions, political conditions, legal environment, technology, competition, markets
internal factors
HR, facilities and equipment, financial resources, customers, products and services, technology, suppliers, etc.
the Balanced Scorecard
used to clarify vision, link departmental objectives to strategy and transform to action
-financial
-customer
-internal business processes
-learning and growth focus
productivity
a measure of effective use of resources
ratio of output to input
output/input
productivity growth
current productivity - previous productivity/previous productivity
distinctive competency
better competencies than anyone else in the industry
forecast
an estimate about the future value of a variable such as demand
better estimates = better informed decisions
1. expected level of demand
2. accuracy
steps in forecast process
1. determine the purpose
2. establish a time horizon
3. obtain, clean, and analyze appropriate data
4. select a forecasting technique
5. make the forecast
6. monitor the forecast errors
7. additional action
error =
actual - forecast
forecast accuracy tools
MAD, MSE, MAPE
MAD
mean absolute deviation;
average absolute forecast error
weights all errors evenly, easiest, least useful
MSE
mean squared error;
weights errors according to squared values
squares will magnify the errors and make a positive value
MAPE
mean absolute percent error;
weights according to relative error, puts errors in perspective and allows for comparison
qualitative
consist mainly of subjective inputs (soft data)
quantitative
involve project of historical data or the development of associative models that attempt to utilize causal variables to make a forecast
judgmental forecasts
use subjective inputs such as opinions from consumer surveys, sales staff, managers, etc. provides insights.
time-series forecasts
project patterns identified in recent time-series observations, use historical data of trend, seasonality, cycles, irregular variations, random variations
Naive method
forecast for any period that equals the previous periods actual value, the last data point becomes the forecast for the next period
moving average
uses a number of recent, actual values, updated as new values become available
weighted moving average
typically assigns more weight to the most recent values in a time series, more reflective of the most recent occurrences
exponential smoothing
each new forecast is based on a previous forecast + a % of the difference between that forecast and the actual value of the series at that point
next forecast = previous + (% of error)(actual - previous)
The function that is part of every business organization that produces products and/or delivers services is the ___ function
operations
Which of the following is a key difference between the production of goods and the delivery of services?
the feasibility of using inventory
operations and sales are ___ functions; all other functions are ___ functions
line; support
one thing that must be managed in all processes is
variability
viewing decisions in the context of the big picture is a key element of this approach
systems approach
measurements taken at various point in the transformation process for control purposes are called
feedback
a key difference between the production of goods and the performance of services is
service workers require less training than manufacturing workers
operations management includes all of these activities except:
assessing consumer wants and needs
which type of variation is the result of a deliberate choice of a business?
variety
the fact that improvements in a few key factors will have a major impact on operations is associated with this name:
Pareto
The 'father of scientific management' was
Taylor
Which one of these is not one of the ethical principles?
utilization
which of the following is not true about the systems approach?
focuses on achieving efficiency within subsystems
the needs for supply chain management is increasing for all of the following reasons except
labor laws
a key reason that companies resort to outsourcing is to
reduce costs
a mission statement should answer the question
what business are we in?
two factors that tend to have almost universal strategic operations importance are:
time and quality
productivity measures output relative to
inputs
The _____ helps managers focus their attention on strategic issues and strategy implementation
Balanced Scorecard
Balanced Scorecard componets
Financial, customers, internal business processes, learning and growth
an order winner is:
a superior factor
order qualifier
minimal standards
what are an organization's goals based on
its mission
special attributes or abilities that give organizations a competitive edge are
core competencies
which is a useful contributor to a strategy of mass customization?
modular design and delayed differentiation
one of the disadvantages of standardization is
early freezing of product designs
robust design
Taguchi
which of these specifies that a product must be suitable for its intended use?
the Uniform Commercial Code
voice of the customer
quality function deployment
the term associated with incorporating customer ideas in product design is
quality function deployment
modular design creases product variety
false, it reduces it
what term closely relates to remanufacturing?
recycling
the process of dismantling and examining a competitor's product to get design ideas
reverse engineering
service design often differs from product design how?
customer interface and interaction
the ability of a product, part or service to perform its intended function under an appropriate set of conditions is
reliability
production design and manufacturing personnel being brought together early in the design process is
concurrent engineering
describing and analyzing a proposed service is often done by using a
service blueprint
exponential smoothing
accounts for error
next forecast = previous forecast + (smoothing constant percentage)(actual - previous)
quickness of forecast adjustment to error is determined by the smoothing constant. the closer its value is to zero, the slower the forecast will be t
Delphi method
managers and staff complete a series of questionnaires for forecasting, qualitative forecasting technique
tracking signal
the ratio of cumulative forecast error to the corresponding value of MAD, used to monitor a forecast.
If an analyst wants to make a moving average more responsive to change, the analyst should
decrease the number of data points in the average
MAD
mean absolute deviation, sum of all absolute errors/number of data points(or periods)
MSE
mean squared error
sum of all errors squared/number of data points(or periods) - 1
MAPE
(sum of all absolute errors/actual data) X 100/number of periods
which term is most closely associated with a tracking signal?
MAD
what is a good reason to use a sales force composite forecast?
they are often aware of customers future plans
one feature common to good forecasting is that a good forecast's ____ outweigh its ____.
benefits; costs
which is not typically accounted for in time-series forecasting?
random variation
in monitoring forecasts, bias is commonly assessed with ____ while nonrandomness is commonly assessed with ____.
tracking signals; control charts
The first step in location planning and analysis is:
determine the criteria upon which the decision will be made
which statement about location decisions is not true?
the goal is to find the optimal location
multiple plant manufacturing strategies include all of these except:
core plant
which reason would not generally be cited for locating in a third world country?
nearness to markets
which one is not usually listed as a regional factor in location decisions?
taxes
the tool that provides demographic information for location analysis is the:
geographic information system
location planning for a secondary school would most likely focus on factors of a:
site
which of the following considerations would not typically enter into location decisions regarding services?
proximity to raw materials
locating manufacturing plans such that they serve particular geographic segments is a ______ plant strategy
market area
effective capacity cannot be:
in excess of design capacity
the max output rate or service rate that is possible is called the ___ capacity
design
the ratio or actual output to effective capaity is called the
efficiency ratio
the actual output to design capacity is called the
utilization ratio
the capacity cushion is the difference between ___ and ___.
capacity and expected demand
when an economy of scale is in play, if the _____ is less than ideal, increasing it will result in lower ____.
output; avg unit costs
which is not a determinant of effective capacity?
product life cycle
which does not enhance developing capacity alternatives?
staying focused on quantitative factors
which is the primary input in capacity planning?
demand forecasts
which is not necessarily a special factor in planning service capacity?
demand volatility
which is not a reason for diseconomies of scale?
fixed costs are spread over more units
deciding to pay another organization to produce a good or provide a service is an example of:
outsourcing
which processing system would be least likely to have special-purpose equipment?
job shop
2 key factors in service layout design are :
customer contact; customization
a malfunctioning cable tv converter would most likely be repaired in what type of layout?
process
wich system has the least flexibility?
continuous
which type of operation would be most closely associated with division of labor?
assembly
the type of layout that would be used to build a submarine is:
fixed-position
which processing system would be the least efficient choice for producing a standrd pair of shoes?
job shop
which type of processing system would most likely be used to produce smart phones?
assembly
product or service profiling links key product or service requirements to:
process capabilities
which of these does not relate to design process layouts?
equalizing times of workstations
in a Muther closeness grid, which symbol is used for a location if closeness is not important?
U
In a Muther closeness grid, which symbold reflects the greatest importance for closeness?
A
which one of the following involves a group of machines that involve supervisory computer control and automatic material handling?
flexible manufacturing system
group technology is often related to:
cellular manufacturing
in a statistical process control, attributes are characteristics that can be
counted
narrowing control limits from 3 to 2s will increase the probability of making a ____ error
Type II error
a point which is outside of the lower control limit on a c-chart
should be investigated because an assignable cause of variation might be present
the ____ the sample size, the ____ the sampling distibution
larger, less variable
which type of control chart would be appropriate if the variable being monitored is the number of students absent from section 1 of a statistics class?
P-chart
We are monitoring a process that has an outcome that is normally distributed with a mean of 100 and a standard deviation of 10. we would use ____ to evalute whether this process's average is remaining in control
x-bar charts
We are monitoring a process that has an outcome that is normally distributed with a mean of 100 and a standard deviation of 10. We would use ___ to evaluate whether this process's variability is remaining in control
R-charts
we are monitoring a process that has an outcome that falls into one of two categories. We would use a __ to evaluate whether this process is remaingin in control
p-charts
If a process that falls out of statistical control continues to produce a very large proportion of output that is acceptable, that process must be highlly
capablle
the ratio of a centered process's specification width to its process width is called the
capability index
if a process is not centered within its specification interval, use of the basic capability index, Cp, will lead to an assessment of capability that is:
inflated
aggregate planning typically covers a time interval of
eighteen months
in aggregate planning, planners avoid focusing on individual products or services because
focusing on a group of similar products or services tends to be more accurate
which of the following is not a "supply option" for aggregate planning?
adjusting pricing
keeping producting at essentially a constant rate is known as a
level plan
which of the following is true about a chase strategy?
labor utilization costs tend to be higher
which of the following is an advantage of a level approach?
less hiring
which of the following would make a chase approach more attractive than a level one?
an increase in back order costs
the feasibility of the proposed master schedule is assessed using the
rough-cut capacity plan
disaggregating the aggregate plan relates to
master scheduling
which of these is not considered to be a capacity option?
use of backorders
which of these is not a disadvantage of a level approach as compared to a chase approach?
varying workforce levels
the terms frozen, slushy, and liquid are most closely associated with
time fences
the term available-to-promise is most closely associated with
master production scheduling
which one of these is not related to the master scheduling process?
yield management