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48 Cards in this Set

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Service-system design matrix
defines the relationship between sales opportunity and production efficiency measured against the amount of human interactivity. Along top there is buffered core, permeable system, reactive system.
arrival rate (lambda)
events / hour
service rate (mu)
service time / unit
Process
any part of an organization that takes inputs and transforms them into outputs
Cycle time
the average successive time between completions of successive units
Utilization
the ratio of the time that a resource is actually activated relative to the time that it is available for use
Process flowcharting
the use of a diagram to present the major elements of a process
The basic elements can include tasks or operations, flows of materials or customers, decision points, and storage areas or queues
It is an ideal methodology by which to begin analyzing a process
Square, Diamond, Triangle, Arrow
Tasks/Ops, Decision Points, Storage areas/Queues, flows of materials/customers
Buffer
a storage area between stages where the output of a stage is placed prior to being used in a downstream stage
blocking
occurs when the activities in a stage must stop because there is no place to deposit the item
starving
occurs when the activities in a stage must stop because there is no work
bottleneck
stage that limits the capacity of the process
Serial vs. Parallel process
either single path or some of production has alternative paths where two or more machines are used to increase capacity
logistics processes
the movement of things such as materials, people, or finished goods
logistics processes
the movement of things such as materials, people, or finished goods
Make-to-order vs. make-to-stock
activated in response to an order vs. activated to meet expected demand.
Make-to-order vs. make-to-stock
activated in response to an order vs. activated to meet expected demand.
Inventory turnover
COGS / average inventory value
Inventory turnover
COGS / average inventory value
Little's Law
There is a long-term relationship between inventory, throughput, and flow time -
Inventory = Throughput rate X Flow time
Little's Law
There is a long-term relationship between inventory, throughput, and flow time -
Inventory = Throughput rate X Flow time
Lead time
the time needed to respond to a customer order
Customer order decoupling point
where inventory is positioned to allow entities in the supply chain to operate independently
Make to stock firms
firms that serve customers from finished goods inventory. ex: Tv, clothing, packaged food
Assemble to order firms
firms that combine a number of preassembled modules to meet a customer’s specifications. ex: Dell computers - flexible design
make to order firm
firms that make the customer’s product from raw materials, parts, and components. ex: boeing
engineer to order firm
firm that will work with the customer to design and then make the product
product-process matrix
project, workcentre, manufacturing cell, assembly line, continuous process. low to high for both product standardization and product volume.
breakeven analysis
fixed costs / (unit price - variable cost per unit)
Pure project
project manager has full authority, team reports to one boss, short comm lines, team pride, motivation etc. BUT duplication of resources, lack of technology transfer, org goals are ignored
Gantt
a bar chart showing both the amount of time involved and the sequence in which activities can be performed
Earned Value Management (EVM)
A technique for measuring project progress in an objective manner. Measure relative success of a project at a point in time
Schedule Variance
BCWP - BCWS
SchedulePI
BCWP/BCWS
Cost Variance
BCWP - AC
CostPI
BCWP/AC
Activity Time (ET)
a+4m+b/6
Variance
[(b-a) / 6]^2
Z-Score
(D-Te) / sum(variance)
extent of contact
the percentage of time the customer must be in the system relative to service time
Creation of the service
the work process involved in providing the service itself
Diff. between service design and product design
The process and the product must be developed simultaneously
The process is the product
A service operation lacks the legal protection commonly available to products
The service package constitutes the major output of the development process
Many parts of the service package are defined by the training individuals receive
Many service organizations can change their service offerings virtually overnight
strategic uses of service-system design matrix
Enabling systematic integration of operations and marketing strategy
Clarifying exactly which combination of service delivery the firm is providing
Permitting comparison of how other firms deliver specific services
Indicating life cycle changes as the firm grows
Poka-yokes
Fail-safes. Prevent mistakes from becoming service defects.
infinite vs. finite populations
infinite: so large that additions and subtractions to pool don't make a difference. Finite: when one person leaves the size of the group is reduced by one.
Arrival rate
can be constant or variable
Exponential distribution
When arrivals at a service occur in a purely random fashion
Poisson distribution
where one is interested in the number of arrivals over a certain period of time (T)