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Operations Management Test 3 (From Ahston)
Terms in this set (73)
key concepts of JIT
1. elimination of waste
2. continuous improvement
3. removed variability
a philosophy of continuous and forced problem solving via a focus on throughput and reduced inventory
- emphasizes forced problem solving
What is TPS (Toyota Production System)
emphasizes continuous improvement, respect for people, and standard work practices
- emphasizes employee learning and empowerment in an assembly-line environment
supplies the customer with their exact wants when the customer wants is without waste
- emphasizes understanding the customer
What is waste? and what are some examples of it?
anything that does not provide value from the customer point of view
ex) storage, inspection time, delay, waiting in lines, and defective products
What are Ohno's 7 wastes?
6. over processing
7. defective products
Besides Ohno's 7 wastes, what other resources are often wasted?
-energy, water, air
What are the 5 S's to eliminating waste?
5. sustain/ self-discipline (self discipline= people following the rules)
(7.) support/maintenance (reduce variability and unplanned downtime)
What is variability? and what are its characteristics?
- variability= any deviation from the optimum process
- you want to reduce variation as much as possible
- remove variability caused by both internal and external factors
- inventory hides variability
- less variability results in less waste
What are 3 sources of variability?
1. incomplete or inaccurate specifications/ drawings
2. poor production processes resulting in incorrect quantities, late, or non-conforming units
3. unknown customer demands
(4.) changes in demand or specifications
What are two effective tools for identifying the causes of variability?
- inventory reduction
7 JIT inventory tactics
1. use a pull system to move inventory
2. reduce lot sizes
3. develop JIT delivery systems with suppliers
4. deliver directly to point of use
5. perform to schedule
6. reduce setup time
7. use group technology
What are JIT parnerships and what are the 4 goals of JIT partnerships?
- they exist when a supplier and purchaser work together to remove waste and drive down costs
- four goals:
1. removal of unnecesary activities (ex: expecting materials that came from a supplier)
2. removal of in-plant inventory
3. removal of in-transit inventory
4. improved quality and reliability
8 JIT layout tactics
1. build work cells for families of products
2. include a large number of operations in a small area
3. minimize distance
4. design little space for inventory
5. improve employee communication
6. use poka-yoke devices
7. build flexible of moveable equipment
8. cross-train workers to add flexibility
- a card that authorizes the next container of material to be produced
- a sequence of kanbans pulls material through the process
How are JIT and quality related?
- JIT cuts the cost of obtaining good quality because JIT exposes poor quality
- because lead times are shorter, quality problems are exposed sooner
- better wuality means fewer buffers and allows simpler JIT systems to be used
poka yoke devices
this is idiot proofing your processes so people can't make mistakes if they're properly trained
5 JIT quality tactics
1. use statistical process control
2. empower employees
3. build fail-safe methods (poka-yoke, checklists, etc.)
4. expose poor quality
5. provide immediate feedback
- externally focused on the customer
- starts with understanding what the customer wants
- optimize the entire process from the customer's perspective
- in practice, JIT, lean systems, and TPS are essentially the same
What JIT techniques are used in services?
computerized database management system used to determine the quantity and timing for dependent demand inventories (manage dependent demand inventories)
dependent demand inventory
inventories used to manage operations. The demand comes from within the company
- the demand comes from internal requirements to produce an "end item" (finished good)
What are the 3 key components to an MRP system?
1. master production schedule
2. bill of materials
3. inventory status file
master production schedule
contains timing and quantity of finished goods to be produced over time
bill of materials (BOM)
-receive this from the product engineers/designers
-gives a listing of all needed materials to make the end item
inventory status file
contains two documents: item master file and open orders file
item master file
-part of the inventory status file
-a listing of current on-hand balances for all materials
-lets you net demand against inventory so you know how much to produce
open orders file
-part of the inventory status file
-a listing of the quantity and timing of materials that have been ordered but not yet received
planned order releases report
- this is the outcome of an MRP database
- provides the timing and quantity for all needed materials
What are the two forms of a bill of materials (BOM)?
1. product structure tree
2. indented bill of materials
characteristics of a project (5)
1. distinct start and finish
2. specific time frame for completion
3. unique undertaking
4. limited resources available
5. precedence relationships of individual tasks
benefits of project management (4)
responsibilities of project managers
responsibilities of project managers: organizing
-define objectives (scope of project, cost, timing, quality)
-organize the work:create an organizational structure, "matrix organization"
pros of having a matrix organization
- job variety for employees
-personal growth/development of employees
-networking opportunities for employees
- efficiency of HR use
cons of having a matrix organization
-have to set priorities for what to work on
-loss of efficiency in work
-work longer hours
-burn out employees
responsibilities of project managers: planning
develop a project plan- estimate the cost and time requirements for overall project and each task to be completed in the sequence
responsibilities of project managers: scheduling
-authorize work when it should be done
-assess the progress of the project with project networks
-revise the plan if necessary
responsibilities of project managers: controlling
-exercise control over timing, labor, materials, performance
-timing: expediting if needed (crashing)
- labor & materials: give supervision
- performance: quality assurance should be built into the process
2 ways to terminate a project
project is successfully completed and becomes part of ongoing operations
project is terminated before successfully completed (for whatever reason)
Why would you do a post-project audit? (2)
- to create documentation of what went well and what went poorly
work break-down structure
a hierarchichal description of a project into more and more detailed components
-may include estimates of time for completion of these tasks.
2 project management techniques:
-critical path method (CPM)
-program evauation and review technique (PERT)
critical path method (CPM)
-used in instances when task times are well known and is typically drawn using the activity on a node representation
-developed by DuPont corporation
-estimate the amount of time required to complete a project task
program evaluation and review technique (PERT)
-used in situations where task times are assumed to be random and is typically drawn using the activity on an arrow representation
-developed by US Navy
-we must use probabilities to estimate the completion time for project tasks
What are the two goals of project network analysis?
1. find the critical path
2. determine the project completion time
The path that determines project completion time!
2 characteristics of critical path?
1. Always the longest path in the network
2. All the activities have no slack.
What is Slack?
Amount of time an activity can be delayed without affecting project completion time
How do you find slack?
LF-EF or LS-ES
Goal of Crashing Analysis?
To reduce activity duration time so that we can reduce overall project completion time
2 rules of crashing a project
1. Only Crash activities on the critical path
2. Crash the activity with lowest per period crashing cost first
Objective of HR strategy
to manage labor and design jobs so people are working effectively and efficiently
What is a good HR Strategy?
Reasonable quality in work life
Employees are effectively utilized
6 Constraints of HR strategy?
1. Product Strategy
3. Location strategy
4. Process Strategy
5. Individual Differences
6. Layout Strategy
2 policies of labor planning? and their characteristics?
1. Follow Demand Exactly (chase)
- matches labor costs to production
- incurs extra costs like hiring and severance costs
- Labor is treated as a variable cost
2. Hold Employment Constant (Level)
- Maintain trained workforce
- low hiring and firing costs
- employees underutilized during slack periods
- Labor is treated as fixed cost
4 types of work schedule?
1. Standard Work schedule: 5 8-hour days
2. Flex time: Let them make their own schedule
3. Flexible Work week: fewer but longer day
4. Part-time: fewer and irregular hours
5 Key Elements of Job Design
1. Job Specialization
2. Job expansion
3. Psychological components
4. Self-Directed Teams
5. Motivation and incentive systems
Division of labor into unique tasks
First suggested by Adam Smith in 1776
Charles Babbage compensated employees based on their skills
Problems with Job specialization?
1. Workers don't know how they fit into the big picture
2. employees lose focus and less effective
3. employees become less productive
4. employee not challenged and is BORED MAN
What does Job Expansion do?
Add variety to the jobs
reduce boredom at work
expand people's horizons
2 main ways of Job Expansion?
1. Enlargement - Take core job and make it bigger
2. Enrichment - Do something in addition to your job
5 Core job characteristics?
1. Skill Variety - prevents boredom
2. Job identity - promotes pride and increase productivity
3. Job Significance - promotes awareness employee's impact on the company
4. Autonomy - promotes confidence and trust
5.Feedback - promotes motivation
What are Self-Directed Teams?
Group of empowered people that works towards a goal
Can be short or long-term
Why are self-directed teams effective?
Provide employee empowerment
Ensure core job characteristics
Meets psychological needs
What should managers do to ensure effectiveness of self-directed teams?
1. choose people who will contribute
2. provide management support
3. Train them
4. Give them goals
6. Release Control
5 ways to provide incentives to employees
1. Bonuses - cash money
2. Profit sharing - distribute profits
3. Gain sharing - rewards for impovements
4. Incentive plans - based on production rate
5. knowledge-based - rewards for being smart
What is ergonomics?
study of interface between man and machine
4 part of the work environment that you can apply ergonomics to?
what does methods analysis analyze?
1. Movement of individuals or material
2. activities of human and machine
3. Body Movement
What is a visual workplace?
1. use cheap devices to share information (flags and light)
2. displays and graphs over handouts and paperwork
3. timely information
4. Focus on improvement