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SCMS331 exam 2
Terms in this set (102)
to develop and implement a product strategy that meets the demands of the marketplace with a competitive advantage.
This is the objective of:
the product decision
What are the 3 product strategy options?
2. cost leadership
What is the product life cycle?
1. introduction (R&D)
2. growth (strengthen niche)
3. maturity (defend market position)
4. decline (cost control)
what is the cash flow like in each stage of the product life cycle?
1. introduction - negative decreasing
2. growth - negative increasing
3. maturity - positive increasing
4. decline - positive decreasing
in this type of product design, product is designed so that small variations in production do not adversely affect the product
robust design results in __ costs and ___ quality
lower ; higher
in this type of product design, products are designed in easily segmented components to offer customization
which kind of product design adds flexibility to both production and marketing
using computers to design products and prepare engineering documentation is known as
computer aided design (CAD)
____ results in shorter development cycles, improved accuracy and lower costs
computer aided design (CAD)
what are the 5 main benefits of CAD/CAM?
1. product quality
2. shorter design time
3. production cost reductions
4. database availability
5. new range of capabilities
this seeks improvements in product design leading to a better product or a product which can be produced more economically
this means meeting the needs of the present without compromising the ability of future generations to meet their needs
this is a formal evaluation of the environmental impact of a product throughout its life cycle
life cycle assessment (LCA)
this lists the components and quantities of a product; shows product structure
bill of materials
this shows dimensions, tolerances and materials of a product
what are the 5 documents needed for production?
1. assembly drawing
2. assembly chart
3. route sheet
4. work order
5. engineering change notices
this type of document shows an exploded view of the product with details of locations of parts
this document identifies the point of production where components flow into subassemblies and ultimately fit into the final product
this document lists operations and times required to produce a component
this document gives instructions to produce given a quantity of a particular item, usually set to a schedule
this document specifies corrections or modifications to a productions definition or documentation; may include engineering drawings and bill of materials
engineering change notice
in services process design, this analysis focuses on how processes can be designed to optimize interaction between firms and their customers
what are the 3 types of interaction in a process-chain-network analysis?
1. independent processing
2. surrogate interaction
3. direct interaction
this part of the PCN analysis includes steps in which the supplies and/or the customer is acting on resources where each has maximum control
this part of the PCN analysis includes process steps that involve interaction between participants
this part of the PCN analysis includes process steps in which one participant is acting on another participant's resources
this is useful when there is a series of decisions to be made, along with random outcomes, which can lead to other decisions and outcomes
a decision tree
in a decision tree, what do they squares, circles and branches represent?
squares: decisions to be made
circles: random events
branches: alternative/ possible outcomes
what are the 2 ways that quality improves profitability?
1. increased sales
2. reduced costs
this describes the level of customer satisfaction;
the totality of features and characteristics of a product or service that bears on its ability to satisfy stated or implied customer needs is known as
any instance when a process fails to satisfy a customer is known as
the philosophy for achieving continuous high levels of process performance and quality company wide is known as
total quality management (TQM)
this concept of TQM requires a never-ending process of continual improvement through people, equipment, materials and procedures
this concept of TQM is a statistical definition of a process that is 99.9997% capable, and a comprehensive system for achieving and sustaining business success
this concept of TQM gets employees involved in product and process improvements
this concept of TQM sets up a group trained employees who meet regularly to solve problems; led by a facilitator
this concept of TQM requires selecting the best practices to use as a standard for performance
this concept of TQM is a pull system of production scheduling that reduces inventory levels
this concept of TQM has engineering and experimental design methods used to improve product and process design
what factors do the taguchi concepts identify ?
Factors that affect product variation
what are the 3 key Taguchi concepts in TQM?
1. quality robustness
2. quality loss function
3. target-oriented quality
the ability to produce products uniformly even in adverse manufacturing and environmental conditions is known as
this taguchi concept shows how costs (dissatisfaction, warranty, repair) increase as product moves away from what the customer wants
quality loss function
this TQM tool is a graph that identifies and plots problems or defects in descending order of frequency
this TQM tool is a chart that describes the steps in a process
this type of control chart tracks changes in the central tendency/mean of variables
this type of control chart indicates increases or decreases in the variation of variables
a measure of the relationship between natural variation of a process and the design specifications is known as
being in statistical control does not guarantee:
that the process meets design specifications
to create a process to produce g/s that meet customer requirements within cost and other managerial constraints.
this is the objective of what?
the process strategy
what are the four basic process strategies?
1. process focus
2. repetitive focus
3. product focus
4. mass customization
this process strategy focuses on making low volume/ high variety with general purpose equipment and personnel
which process strategy has a high degree of product flexibility?
process focus (hospital services)
this process strategy focuses on medium volume/ medium variety, often through assembly lines
repetitive focus (HD motorcycles)
this process strategy focuses on high volume/ low variety; typically requires less skilled labor
product focus (potato chips)
which process strategy has high fixed costs but low variable costs?
this process strategy is a rapid, low-cost production of g/s that satisfies unique customer desires
mass customization (dell laptops)
which process strategy combines the flexibility of the process focus with the efficiency of the product focus?
this type of mass customization produces in response to a customer order, rather than to a forecast, and keeps stock of only components
this type of mass customization delays customization of a product as long as possible
this process strategy tends to have low fixed costs but high variable cost; preferred with low volume levels
this process strategy tends to have medium fixed costs and medium variable costs; preferred with medium volume levels
this process strategy has high fixed costs but low variable costs; preferred with high volume levels
the throughput, or the number of units a facility can hold, receive, store or product in a given period of time is known as
capacity determines what 2 things:
1. fixed costs
2. demand satisfaction
the maximum theoretical output of a system, normally expresses as a rate, is known as
design capacity (ex. units per day)
the capacity that a firm expects to achieve given operating constraints is known as
when increases in volume cause a decrease in the AVERAGE cost per unit, this is known as achieving
economies of scale
raising prices, scheduling longer lead times and increasing capacity are solutions to which demand/capacity problem?
when demand exceeds capacity
stimulating the market through advertising is a solution to which demand/capacity problem?
when capacity exceeds demand
the ____ has the lowest effective capacity in a system (the slowest step)
what determines the system output rate of a capacity analysis?
___ is the time to complete the slowest work-station (one that takes the longest) in a production system
___ is the time is takes a unit to go through production from start to end, if no waiting
to maximize the benefit of location to the firm
this is the objective of
transportation from warehouse to customer is known as
as the number of facilities of a business increase, outbound transportation costs ___ because facilities become closer to customer
transportation from manufacturer to the warehouse is known as
as number of facilities increase, inbound transportation costs ___ because they must ship goods to many warehouses across country
as number of facilities increase, costs to operate and mange those facilities ____
to develop an effective and efficient layout that will meet the firm's competitive requirements is the objective of
the layout strategy
this type of layout positions workers, their equipment and spaces to provide for movement of info
this type of layout allocates shelf space and responds to customer behavior; maximizes profitability per square foot of floor space
this type of layout addresses trade-offs between space, material handling, and movement of goods; minimize costs and maximize volume
this type of layout is used for large, bulky projects such as constructing ships, aircraft and buildings; products stay in one place and workers/equipment come to site
this type of layout is used for low-volume, high-variety production (also called job shop or intermittent production);
this type of layout arranges people and equipment to focus on production of a single product or group of related products
work cell layout
this type of layout maximized personnel and machine utilization in a repetitive or continuous production line; high volume low variety products
functional products require a ____ supply chain design
innovative products require a ____ supply chain design
this supply chain sourcing strategy is commonly used for commodity products and purchasing is based on price
this supply chain sourcing strategy is when a buyer forms long term relationships with suppliers to create value thru economies of scale; cost of changing suppliers can be quite high
this supply chain sourcing strategy develops the ability to produce goods or services that had been previous purchased; may be forward or backward
this supply chain sourcing strategy is a formal collaboration between firms to share expertise, secure supply and reduce costs
this supply chain sourcing strategy is a middle ground between having few suppliers and vertical integration
what are the 3 steps in risk mitigation in the supply chain?
1. IDENTIFY potential risks
2. PREVENT potential for disruption
3. PREPARE to respond to negative events
when demand/order variability increases as one moves up the supply chain; when variablity of orders places by retailer is greater than variability of demand from consumers, this is known as
the bullwhip effect
what are the four steps in building the supply base?
1. supplier eval
2. supplier development
3. supplier negotiation and setting prices
in supplier negotiation and setting prices, this model sets prices to a percentage over costs, to cover costs.
cost-based price model
this model sets prices based on published on idexed prices
market-based price model
this model sets prices by having suppliers bid against each other, which does NOT foster long term supplier relationships
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