Vocab
Terms
undefined, object
copy deck
- how to implement prinicple 4
- 1 capture quality data at the source 2 share data via IT to minimizw data re entery 3 Use error prood ahah poka yok devices or procedures
- total slack
- clack shared by other activities calculated as S=LS - ES
- Time between orders
- The average elapsed time between receivig replenishment order of Q units for a particular lot size---(EOQ/D*) where D* is the uni of period
- five s
- a method consisting of the workplace practives sorting straightening shining standardizing and sustaining that are conductive to visual controls and lean production
- P systems two key parameters
- order recieved and orders placedmso ntot that the order quanity caries while the TBO is fixed
- other things that should be taken in effect when making cp
- budget and cash flow, balancing due date and cost, priority which should be crashed first
- two bin
- a visual system version of Q i which an inters inventory is stored at two different locations
- repeatability
- the degree to which the same work can done again
- Method to enable 1 peice flow
- 1 qucik step (3 factors in the EOQ formula) ///single mintue exchange of dies (SMED) ////insert examples 2 Level ro Even lading "Heijunka" loading 3 Kanban pull for materials
- product proliferation
- caused by competition--more variety lower volume and short life cycles
- economic order quantity
- the lot size that minimizes total annual inventory holding and ordering costs a simple rule to determine the optimal batch size for cycle inventory--so the formula is sqr rt of 2 *Demand per year*Set up costs or ordering costs / Holding costs per one unit
- is it possible to have more then one critical path?
- yes!!!
- normal time
- the time necessary to complete an activity under normal conditions
- sort
- two thinds 1 categorize for frequency of use 2 determine and mark a location
- uniform load
- load smoothing production--spread out volume and mixture evenly and use small batch size-->instead of producing in large batches AAAAAA, BBBB., CC change to mixed mofel assembly AABBC
- lot
- a quantity of items that are processed together
- operations
- design and operates processes that transform inputs to outputs (products or services)
- examples of poka yoke devices in the real world
- airplane restroom doors camera battery light--learn from Amazon and Expedia on their user entry must do **--how the line stop cord at H2 and Toyota planets empowered workers
- Gantt Chart
- A project schedule usually created by the project manager using computer software that superimposes project activities with their precedence relationships and estimated duration times on time line
- activity on node
- aon an approach used to create a network diagram in which nodes represent activities and arcs represent the precedence relationship between them
- what are typical inventory costs?
- fixed and variable
- stream
- includes all the processes and flows of materials and information
- what are some examples of notorious project delays
- Bostons Big Dig, Airbus 380, Boeing 787
- value stream mapping
- a qualitative lean tool for eliminating waste or muda that inolves a current state drawing a future state drawing and an implentation plan
- shift or straigten
- is the first of the five ss it is also known as orderliness a place for everythign and everything has a place
- 7 wasts
- the "muda" in manufactoring and the more in services processes---> 1 excesss inventory and storage 2 defects 3 waiting / delay 4 excess motion (for people) 5 excess transportation (of the job) 6 over processing 7 over production
- IP
- Inventory Position and it is a measurement of an iteams ability to satisfy furter items
- JIT/Lean Manufacturing/Lean Retailing
- the suppliers are keeping inventory for customers
- project management
- a systematized phased approach to defining organizing planning monitoring and controlling projects
- free slack
- the amount of time that an activity's earliest finish time can be delayed without delaying the earliest start time of any activity that immediately follows
- Two basic inventory control systems for uncertain demand
- since demand us now uncertain we can estimate the distribution mean and standard dev based on past records the two systems to do this is the Q system and P system
- shrinkage
- damaged goods, lost goods or misplaced
- what do the 5 s enable
- visual workplace or visual control
- program evaluation and review technique PERT
- A network planning method created for the us navy plaris missile project in the 1950s which involved 3000 separate contracts and suppliers
- poka yoke
- mistake proofing methods aimed at designing fall safe systems that minimize human error
- what has to be moveable in order to reduce inventory
- supply and demand must be variances that are reducable s if not not then inventory can only be moved around not eliminated
- Project
- An interrelated set of activities with a definite starting and ending point which results in a unique outcome for a specific allocation of resources
- activity slack
- the maximum length of time that an activity can be delayed without delaying the entire project
- reorder point
- average demand (aka the middle line) plus the saftey stock
- cirtical path method
- CPM a network planning method developed in the 1950s as a means of scheduling maintenance shutdowns at chemical processing plants
- Why is EOQ still popular after 50 years
- the simple formula gives wuick ad not so dirty estimates//the insensitivity effect///works in the real world almost all the time if off by 20% doesnt matter because of the bathtub effect
- inventroy holding cost
- the sum of the cost od capital and the variable cost of keeping items on hand such as storage and handling taxes insurance and shrinkage
- just in time JIT philosophy
- the belief that waste can be eliminated by cutting unnecessary capacity or inventory and removing non value added activities in operations
- mixed model assembly
- a type of assembly that produces a mix of models in smaller lots
- q system
- aka fixed order quantity...continuous or preptual review...reorder point system this is like putting in a 3/4 of a tank everytime
- process
- is a set of actions steps wach of which must be done in the proper sequence to create value
- push method
- a method in which production of the item begins in advance of customer needs
- Inventory management
- the planning and controlling of inventories in order to meet the competitive priorities of the organization
- what are the relationshops between these factors
- production set up costs, inventory carrying costs, lot / batch size, average inventory level--->EOQ equation
- kanban system
- each container must have a card//assembly always withdraws from fabrication (pull system)//containers cannot be moved without kanban//containser should contain the same number of parts//only good parts are passed along//production should not exceed authorization
- Special
- an item made to order if purchased it is bought to order
- work breakdown structure (wbs)
- a statement of all work that has to be complete
- principle 4 of value stream
- error proof the process
- P system
- fixed order Period--you always fill up on Tuesday
- reorder point system
- same as continuous review
- fixed inventory costs
- set up or change over if produce in house/ ordering if produced from the outside/ transporting
- set up
- the group of activites needed to change or readjust a process between successive lots of items
- the product processes matrix
- highest up the more customized
- Annual Dollar Usage
- Unit Value * volume is very common way to classify inventory
- safety stock inventory
- surplus inventory that a compan holds to protect against uncertainty in demand lead time and supply changes
- activity
- the smallest unit of work effort consuming both time and resources that the project manager can schedule and control
- critical path
- the sequence of activities between a project's start and finish that takes the longest time to complete
- what are come common tools used to describe the value stream
- flow chart (macro level) oricess chart(micro level) and value stream map
- Pipeline inventory
- inventory moving from point to point in the materials flow system
- principle 2 of the value stream
- indentify 7 wastes and ask 5 whys (ask a person five times and they think more about it)
- Cycle Inventory
- the time period and amount are the same (is both P and Q)
- process chart
- 5 types of activities and symbols, operate, transport, inspect, delay, store aka they track one time entry
- inventory driven cost
- the total operating margin-->is ordering cost and set up cost transportation aka all the fixed costs
- what is a real world example of the EOQ
- SBC Ameritech warehouse in south bend
- if lay out by job shop
- its organized by job but less can get done-->more FLEXIBLE
- group technology cells
- each cell is independent seperated by parts so allows-->quicker but workers have to mutli task
- Critical path
- consists of all the activites that have no slack--so cp is the longest path through a network diagram that determine the earliest completion of a project--critical path =no margin of error
- single digit set up
- the goal of having a set up time of less than 10 minutes
- network diagram
- a network planning method designed to depict the relationships between activities that consists of nodes (circles) and arcs (Arrows)
- lot sizing
- the determination of how frequently and in what quanity order inventory
- ABC analysis
- the process of dividing items into three clases according o their dollar usage so that managers can docus on items that have the highest dollar value so this uses the 80 /20 rule so its only 20% of total quanity but 80% of profits B is 15% profits and 30% of quantity C is the rest 50% of Q and 5% of $ (this is subjective isnt always the same)
- why is inventory control still so challenging
- JIT/Lean Manufacturing/Lean Retailing and Competition drives product proliferation
- continuous review system
- a system designed to track the remainign inventory of an item each time a withdrawl is made to determine whether it is time to reorder
- lay changes may be necessary to be more productive
- U shape lines manufacturing cells
- what is principle 1 of the value stream?
- walk the value stream
- Principle 5 of value stream
- Enable one piece flow aka EOQ
- Earliest Finish Time EF
- an activity's earliest start time plus its estimated duration
- ordering cost
- the cost of preparing a purchase order for the supplier or a production order for the shop
- Earliest Start Time ES
- an earliest finish time of the immediately preceding activities
- program
- an interdependent set of projects that have a common strategic purpose
- Real world implentation of Q an P system
- many hybrid systems suech as min-max system or the two bin system //inventory is a resule of symptom of process design and flow effects on inventory///cycle count to verify discrepancy
- manufacturing cells
- 1 one worker with multi machines cells for short process 2 group technology cells
- standard normal variate
- has a mean of 0 and a standard dev of 1
- Three things to consider when making a project
- operations to compete-->managing processes-->managing value chains
- lean system
- operations systems that maximize the value added by each of a company's activities by paring unnecessary resources and delays from them
- using operations to compete
- operations as a competitive weapon operations strategy and project management
- u shape lines
- sace space than a straight line and co locate team members
- what must be impmace to make mixed model scedule
- flexible cross trained workers to react to deamnd fluctuation
- kanban
- a japanese word meaning card or visable record that refers to cards used to control the flow of production through a factory
- path
- the sequence of activities between a project's start and finish
- what are the two key control parameters of the Q system?
- EOQ can be first guesses and can you realistic constraints to settle the EOQ then determine the reorder point
- JIT System
- a system that organizes the resources information flow and decisions rules that enable a firm to realize the benefits of JIT principles
- set up cost
- the cost involved in changing over a machine to produce a different item
- who defines value in the value stream?
- the customer
- standard
- develop rules for the first three ss (straighten sort shine) and monitor their progress
- sustain
- the 5th s self discipline sollow the rules and continue to improve
- flow charts
- show you the process showing handoffs between departments (with in production/finace/sales/and customer)
- minimum cost schedule
- a schedule determined by starring with the normal time schedule crashing activities long the critical path in such a way that the costs of crashing do not exceed the savings in indirect and penalty costs
- What is inventory like
- the water bed effect
- independent demand items
- items for which demand is influenced by maket condition and is not relatted to inventory decisions for any other item held in stock
- variable inventory costs
- aka storage costs--interest storage handling taxes insurance...loss of value(if high tech)...shrinkage
- Standard
- an item that is made to stcok or ordered to stock and normally is available upon request
- principle 3 of the value stream
- be productive via the 5 s's straighten sort shine standardize sustaing
- latest start time LS
- the latest finish time minus its estimated duration
- precedence relationship
- a relationship that determines a sequence for undertaking activities it specifies that one activity cannot start until a preceding activity has been completed
- How do we find the best Q
- in the simplest case we assume that there is uniform demand rate..fixed delivery or manufacturing lead time...no quanity discount...no constraints on truck sixe or storage size...and only consider two major costs (setup and holding costs)
- normal cost
- the activity cost associated with the normal time
- pull method
- a method in which customer demand activates production of the service or item
- group technology cells
- are when each cell is dedicated to a product family or a part family with similar processing needs a cell tends to be self suddicient with minimal inter cell movement
- latest finish time LF
- the latest start time of the activitiy that immediately follows
- base stock
- every time you sell something you replace it
- Cycle inventory
- the portion of total inventory that varies directly with lot sizes
- safty stock
- extra stock just to make sure you dont run out-->its the amount under curve between .5 and the reorder point
- balancing due date and cost
- a penalty for completing the project after certain day or reward for completing due date early overhead or fixed costs per day
- crash time
- the shortest possible time to complete an activity
- why is inventory refered to as a double edged sword
- inventory driven costs (fixed) and then inventory carrying cost estimates (variable)--its balancing the two because of fixed costs you want to order the most inventory so only pay once varaible want to but least amount so dont have to pay high variable costs
- min max
- like the p system but only check it occasionally