BUS 309_01_FA09 Study Guide Last Half of Semester – Final Exam Chapters 8-9, 11-17, & Toyota Production System Suggested Topics

of Focus for Final Understand what “RESOURCES” mean, & how VALUE is created Principles of inventory management-But, inventory can improve reliability of delivery, response time, and therefore sales! Inventory’s can stabilize a production operation or a supply chain. Inventory can be both an asset and a liability Inventory turns- A measure of inventory productivity computed by dividing sales by the average value of inventory Inventory carrying costs- insurance costs, storage costs, facilities cost associated with the storage space used and the opportunity cost of the dollar invested in inventory. The “cash-to-cash cycle”- The amount of time between the cash outlay required for purchasing direct materials or inventory consumed during the production of the product or service and the actual receipt of the payment when the product or service is sold. Customer service levels/ measurements- Keep customers busy. Keep customers informed. Treat customers fairly. Start the service as soon as possible. Exceed the customer’s expectation. Approaches to scheduling (forward, backward)- Forward Scheduling When a start date is known, & a completion date must be determined Backward Scheduling- When a due date or completion date is known, & a start date must be set Distribution strategies (e.g. – direct, via warehouse, cross- docking)FTL shipments- Transporting goods in a truck that is full LTL shipments- Transporting goods in a truck that is not completely full Meaning of 3PL- Third party logistics service can warehouse, ship, consult etc. Bullwhip effect- The increasing variability of demand as one moves upstream in a supply chain Quality Function Deployment- a widely used approach that translates customer needs into product and service designs that guide the corresponding process requirements.0 Effect of Globalization on business-

The level of productive output of an organization in a specified period of time Protective capacity. Defective Production Value-added vs non value-added activities. Dependent demand. unnecessary walking.is . or faster than required). using less space. etc).adding activities do not create customer value. effort.A buffer of inventory that will keep a resource busy for a specified amount of time Constraint buffers. equip.added activities & other forms of waste. Value. Approaches to smoothing demand for servicesAggregate demand.The total demand for all products or services Constraints & non.production Types. but no value Examples: Overproduction (more. Extra inventory at any stage. Dependent demand items usually are components and raw materials. downtime. etc).Capacity. using less cycle time. & is willing to pay for.Lean Manufacturing is a production strategy based upon the identification and reduction of non value. Motion (wasted steps. sooner. Non value.inventory whose demand is determined by the production schedule for finished products.A time buffer place immediately prior to constraint Idle time.. or categories. avoiding over.A period of time during a regular work cycle when a worker is not active because of waiting for materials or instruction Work center utilization & activationPrinciples & goals of Lean Manufacturing. using less materials.adding activities transform the product closer to what the customer wants.Anything that inhibits a system’s progress towards its goal Time buffers. providing the firm with the ability to handle occasional problems and enabling them to handle special requests.A layer of capacity above that which is absolutely required to meet known demand. people. and are therefore considered “waste” or “wasteful” “Pull production”.constraints. Inefficient production.Those elements of production that add time. & cost. parts. of “waste”. Movement of materials. Waiting (for materials.The value of a product or service is defined solely by the customer. Independent demand.Inventory whose demand is dictated by the marketplace. To get more done with less by: using less direct and support labor.

where each type is used. etc. • • • Line balancing.A system used to link production rate to demand mean “visible record” or signal Types of facility layouts. e.A process used to balance the times among work centers in a productoriented layout to reduce balance delay C= production time available per day/ units of outputs required per day .g.. “One piece flow”Kaizen.layout – May want a flexible flow – like a Process layout – May want to expose customers to additional products to increase sales opportunities – May want the layout to be most supportive of the service provider. efficient flow – like a Product.a process that aims to arrange an organization so that customer preference or orders are what cause materials to be "pulled" through a system.Oriented Layouts – In form of assembly or production lines in manufacturing operations – Little flexibility – for high volume production & low cost/ unit – Production lines limited by their “bottlenecks” or “constraints” – Production can be optimized by “line balancing” Cellular Layouts – Compromise between Product. or • Organize to reduce total transit time Product.Oriented Layouts – Requires a family of products be produced in a “cell” – Each “cell” has all the resources needed to produce the family of products assigned – Resources in close proximity for low transport costs & high flexibility Service Layouts – objectives may vary: – May want smooth.Japanese word the means “continuous improvement” Kanban.Oriented & Process.Oriented Layouts – Ability to use the functional departments in any sequence desired – for customer services or products – The arrangement of departments dictate the costs with transporting customers & products thru the system • Place together those with most interaction. etc.• Process.with shortest order picking distances.

Dependability of Delivery. Can also cause problems with training & resentment if pay & benefits are not equal Personnel productivity measures (what they are.  Four Stages of a Teams Project Life Cycle – Project identification stage – Analysis of current situation – Creation of the action plan – Implementation The “learning curve”. etc. They help achieve “buy. Increases contribution to the organization.They bring in different perspectives.Labor that can be traced directly to the product or service Indirect LaborCross training (reasons for. etc)Principles of employee teams.Shows the reduction in time it takes to complete a task as the number of times it has been completed increases . why they’re used. Technology. Convenience.in” Used for management of an innovation and management of continuous improvement Initiatives. Ethical issues.Basis for facility location & layout decisions. Quality.Cost. Flexibility. Allows firm to deal with fluctuations in demand. etc. Style/fashion. pros & cons. knowledge. Tasks can be assigned to various members & project time reduced. etc).Allows employees to do a variety of jobs. impact on competitive strategy How employees contribute to value. Creates an expanded perspective for workforce Contingent workers. pros & cons. Personalization Sound Decisions Direct labor.Can be either temporary or contract workers. Employees find their work more interesting. Response time. & expertise. definition of.

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