Study Guide - University of Phoenix



Week 1 Study Guide: Introduction to Process Design

Readings and Key Terms

• Ch. 3 of Operations and Supply Chain Management

o Core competency

o House of Quality

o Value analysis/value engineering (VA/VE)

o Quality function deployment (QFD)

o Ecodesign

• Ch. 6

o Lead time

o Customer order de-coupling point

o Make-to-stock

o Assembly-to-order

o Make-to-order

o Engineer-to-order

o Lean manufacturing

o Workcenter

o Manufacturing cell

o Assembly line

o Continuous process

o Product-process matrix

o Breakeven analysis

• Ch. 7

o Service Triangle

o Service package

o High and low degree of customer contact

o Service blueprint

o Poka-yoke

o Service guarantee

o Pure virtual customer contact

o Mixed virtual and actual customer contact

Content Overview

• The product design process

o Core competency

• Provides potential access to a wide variety of markets

• It increases perceived customer benefits

• It is hard for competitor to imitate

o Product development process

• Phase 0: Planning

• Phase 1 Concept development

• Phase 2: System level design

• Phase 3: Design detail

• Phase 4: Testing and refinement

• Phase 5: Production ramp-up

o Economic analysis of product development projects

• Build a base-case financial model

• Understanding trade-offs

o Designing for the customer

• Quality function deployment (QFD)

• Value Analysis/Value Engineering

o Designing service products

• Service experience fit

• Operational fit

• Financial fit

• Production Processes

o Make-to-stock

• Shortest customer lead time

• Inventory may be used to buffer demand uncertainty

o Assembly-to-Order

• Have sub-assemblies in stock but postpone final assembly until receive order

• Relatively short leadtimes due to postponement strategy

o Make-to-Order

• Do not start assembly until receive order; may have components or piecepart in stock.

• Inventory held at component or piecepart level

o Engineer-to-Order

• Longest lead-times

• No inventory is able to be stored as engineering design may require components or pieceparts not yet identified.

• Production process organization

o Project layout

• Manufacturing equipment is moved to product rather than vice versa.

• Examples include construction of homes or movie shoting lots.

o Workcenter

• Sometimes referred to as job shop

• Product travels from workcenter to workcenter; where the proper machines are located for each operation

o Manufacturing cell

• Dedicated areas where products that are similar in processing requirements are produced.

• Are dedicated to a limited range of products

o Assembly line

• Work processes are arranged according to the progressive steps by which the product is made

• The path for each par tis a straight line.

• Discrete products are made by moving from workstation to workstation at a controlled rate.

o Continuous process

• Flow process is continuous, for example, liquids.

• Usually highly automated constituting one integrated “machine which may operate 24 hours per day to avoid expensive shutdowns and start-ups.

• Manufacturing Process Flow Design

o Assembly (or Gozinto) chart

• Exploded view of the product showing its component parts

o Operations and route sheet

• Specifies operations and process routing for a particular part.

• Conveys such information as the type of equipment, tooling and operations required to assemble the complete part.

o Process flowchart

• Outlines what happens to the product as it progresses through the productive facility.

• Process flowchart is analyzed; searching to identify any activities that can be minimized or eliminated to save time and resources.

• Service package

o Supporting facility

• Physical resources that must be in place before service can be offered

• Examples include golf course, ski lift, airline and auto repair facility

o Facilitation goods

• Materials purchased by buyer or brought in by customer

• Examples include golf clubs, skis, beverages and auto parts.

o Information

• Operations data or information that is provided by the customer.

• Examples include tee off times, weather reports, and medical records.

o Explicit services

• Benefits are readily observable.

• Examples are the response time of an ambulance, air conditioning in a hotel room and a smoother running car after a tune up.

o Implicit services

• Psychological benefits that the customer may sense only vaguely or in extrinsic features of the service.

• Examples include status of the degree from an Ivy League school, the privacy of a loan office or worry-free auto repair.

• Service System Design Matrix

o Degree of customer contact

• Buffered core

o Physically separated from customer

o Examples include mail contact or internet contact

• Permeable system

o Pena ratable by the customer

o Examples include phone or face-to-face (tight specs) contact

• Reactive system

o Both penatratable and reactive

o Examples include face-to-face with loose specs or total customization

o Sale opportunity

• High

• Low

o Production efficiency

• High

• Low

• Service Blueprinting and Fail-safing

o Service process design

• Service blueprint flowchart

• Describes features of the service design

• Applies poka-yoke (or fail-safing) in services – the three T’s

o Apply poka-yoke (or fail-safing) in services – the three T’s

• Task to be done

• Treatment of customer

• Tangible features

• Service designs

o Production-Line Approach

• Treats delivery of the product as a manufacturing product rather than a service

• Examples include fast food such as McDonald’s, local car wash.

o Self-Service Approach

• Customer takes on a great role and is part of the process

• Examples include automatic teller machines, salad bar, self-serve gas stations.

o Personal Attention Approach

• Develop relationship with the customer

• Examples include Nordstrom’s, Ritz- Carlton.

• Strategies for managing customer-introduced variability

o Classic accommodation

• Make sure plenty of employees are on hand

• Make sure employees on hand can adapt to customers varied skill levels

o Low Cost accommodation

• High low cost labor; automate the process; outsource; self-serve options

• Create self-serve options which require no skills

o Classic Reduction

• Require reservations; provide off peak pricing; limit service availability

• Require customers to increase their level of capability before they use the service

o Uncompromised Reduction

• Create complementary demand to smooth arrivals without requiring customers to change their behavior.

• Target customers based on their capability

Week 2 Study Guide: Process Design

Readings and Key Terms

• Ch. 4 and 4 A of Operations and Supply Chain Management

o Strategic capacity planning

o Capacity

o Best operating level

o Economies of scale

o Focused factory

o Economies of scope

o Capacity cushion

o Learning curve

o Individual learning curve

o Organizational learning curve

• Ch. 5

o Process

o Cycle time

o Utilization

o Buffering

o Blocking

o Staving

o Bottleneck

o Make-to-order

o Make-to-stock

o Pacing

o Productivity

o Efficiency

o Run time

o Setup time

o Operation time

o Flow time

o Throughput rate

o Process velocity or throughput ratio

o Value-added time

o Total average value of inventory

o Inventory turn

o Days-of-supply

o Little’s Law

• Ch. 12

o Logistics

o International logistics

o Third party logistic

o Cross-docking

o Hub-and-spoke systems

o Free trade zone

o Trading bloc

o Transportation method

o Centroid method

• Ch. 13

o Lean Production

o Customer value

o Value stream

o Value stream mapping

o Quality at the source

o Backflush

o Kanban and the kanban pull system

o Level schedule

o Group technology

o Kaizen

Content Overview

• Capacity Planning Concepts

o Economies and diseconomies of scale

o Capacity focus

• Focus on limited set of production activities

• Consider corporate objective which focus on competitive advantage

o Capacity flexibility

• Flexible plants with quick change over times

• Flexible processes with easy equipment setup.

• Flexible, cross-trained workers

o Capacity Planning

• Considerations in changing capacity

• Maintaining system balance

• Frequency of capacity additions

• External sources of operations and supply capacity

• Decreasing capacity

• Determining capacity requirements

• Using decision tree to evaluate capacity alternatives

o Planning service capacity

• Capacity planning in service versus manufacturing

o Time

o Location

o Volatility of demand

• Capacity utilization and service quality

• Process Analysis

o Types of process

• Multi-stage versus single stage

• Make to Stock versus Make to Order

o Process performance metrics

• Understand how company calculates metrics before making decisions

• Performance metrics show trends in productivity and sales

• Understand metric application and industry standards

o Process flowcharting

o Production Process Mapping and Little’s Law

o Process Flow Time Reduction

• Perform activities in parallel

• Change the sequence of activities

• Reduce interruptions

• Logistics/Distribution

o Logistics Decision Matrix

o Factory location

• Factory location issues

• Factory location decision methods

o Service facilities location considerations

• Lean Supply Chain

o How lean applies

• Lean production

• Lean logic

• Lean suppliers

• Lean procurement

• Lean manufacturing

• Lean warehousing

• Lean logistics

• Lean customers

o Toyota Production System (TPS)

• Elimination of Waste

• Respect for People

o Lean supply chain principles

• Lean layouts

o Group technology

o Quality at the source

o JIT Production

• Lean Production schedules

o Uniform plant loading

o Kanban production control system

o Determination of number of Kanbans needed

o Minimize setup times

• Lean supply chains

o Specialized plants

o Work with suppliers

o Build a lean supply chain

o Lean services

• Organize problem-solving groups

• Upgrade housekeeping

• Upgrade quality

• Clarify process flows

• Revise equipment and process technologies

• Level the facility load

• Eliminate unnecessary activities

• Reorganize physical configuration

• Introduction demand-pull scheduling

• Develop supplier networks

• Value Stream Mapping

o Flowcharting tool

o Creation of lean process

• Full understanding of business

• Production process

• Materials flow

o Current state

o Future state

• Cost Impact and Payoff Analysis

o Decision trees

o Stakeholder analysis

o Balanced scorecard

o Process dashboards

• Business Process Re-engineering

o Organize around outcomes, not tasks.

o Have those who use the output of the process perform the process

o Merge information processing work into real work that produces information

o Link parallel activities

o Put the decision point where the work is performed

o Capture information once – at the source

Week 3 Study Guide: Supply Chain Design

Readings and Key Terms

• Ch. 11 of Operations and Supply Chain Management

o Strategic sourcing

o Vendor managed inventory.

o Bullwhip effect

o Functional products

o Innovative products

o Outsourcing

o Logistics

o Total cost of ownership (TOC)

o Inventory turnover and weeks of supply

o Cost of goods sold

o Average aggregate inventory value

o Weeks of supply

• Ch. 15

o Strategic forecasts

o Tactical forecasts

o Dependent demand

o Independent demand

o Tracking signal

o Causal relationship

o Exponential smoothing

• Ch. 16

o Aggregate operations plan

o Sales and operations planning

o Inventory on hand

o Yield management

o Production rate

o Long-range planning

o Intermediate-range planning

o Short-range planning

• Ch. 17

o Inventory

o Independent demand

o Dependent demand

o Safety stock

o Cycle counting

• Ch. 18

o Materials requirement planning (MRP)

o Master resource planning (MRPII)

o Master production schedule (MPS)

o Available to promise (ATP)

o Bill of Materials (BOM)

Content Overview

• Capacity Utilization

o Capacity Utilization Rate

• Effective capacity = Design capacity x Utilization

o Capacity Planning

• Workforce scheduling

• Quality management and process improvement

o Gap errors and bottlenecks

o Service quality

o Performance Dashboards

• Customer service

• Operations

• Key processes

• Supplier Management Relationships and Performance

o Strategic sourcing

• The bullwhip effect

• Demand and supply uncertainty characteristics

o Outsourcing

• Financial reasons

• Improvement reasons

• Organizational reasons

• Trade reasons

• Green reasons

• Sourcing performance metrics

o Measuring sourcing performance

• Inventory turnover

• Average aggregate inventory value

• Demand Management and Forecasting

o Demand management

• Independent demand

• Dependent demand

o Types of forecasting methods

• Linear regression

• Simple moving average

• Weighted moving averag4e

• Simple exponential smoothing

• Exponential smoothing with trend

o Forecast errors

• Sources of errors

• Measurement of errors

• Sales and Operations Planning

o Sales and Operations Planning

• Long-range planning

• Intermediate range planning

• Short-range planning

• Aggregate production planning

o Production Planning Strategies

• Chase strategy

• Stable workforce – variable hours

• Level strategy

o Relevant costs

• Basic production costs

• Costs associated with changes to production rate

• Inventory holding costs

• Backordering costs

o Aggregate production planning and services

o Yield Management

• Inventory Control

o Purpose of inventory

• Maintain independence of operation

• Meet variation in product demand

• Allow flexibility in production scheduling

• Safeguard for variation in raw materials delivery time

• Take advantage of economic purchase order size

o Inventory costs

• Holding or carrying costs

• Set up costs

• Ordering costs

• Shortage costs

o Inventory Systems

• Single –period inventory model

• Multi-period inventory system

• Fixed order quantity models

• Fixed order quantity with safety stock

• Fixed time period with safety stock

o Inventory control and Supply Chain Management

• Price break models

• ABC inventory planning

• Inventory accuracy and cycle counting

• Materials Requirements Planning

o Master Production Scheduling (MPS)

• Time fences

• Available to promise

o Material Requirements Planning (MRP)

• Industry applications

• Product hierarchy (product tree)

• MRP example

• Forecasting Demand

• Developing master production schedule (MPS)

• Bill of Material (Product Structure)

• Inventory Records

• Materials Requirements Plan

o Lot sizing

• Lot-For-Lot

• Economic order quantity

• Least total cost

• Least unit cost

• Choosing the best lot size

Week 4 Study Guide: Project Management

Readings and Key Terms

• Ch. 10 of Operations and Supply Chain Management

o Project

o Project management

o Pure project

o Functional project

o Matrix project

o Work breakdown structure

o Earned value management

o Critical path

o Slack time

o Early start schedule

o Late start schedule

o Time-cost models

• Ch. 12 of Survival Guide for Project Managers

o Project plan

o Initiation phase

o Planning phase

o Work breakdown structure (WBS)

o Project team

• Ch. 13 of Survival Guide for Project Managers

o Implementation/Execution phase

o Monitoring and controlling

o Variance

o Scope

o Risk

o Risk Management

• Ch. 14 of Survival Guide for Project Managers

o Termination/Closing phase

o Project audit

o Project audit report

Content Overview

• Implementation

o Responsibility charts

o Project management tools and techniques

• Project Management

o Right mix of projects to support company’s strategy

• Breakthrough

• Platform

• Derivative

o Structuring Projects

• Pure project

• Functional project

• Matrix project

• Project planning

o Initiation

• Project starts as a statement of work (SOW)

• Project RASIC (roles/responsibilities)

• Project kickoff

o Planning

• SOW is broken down into tasks, sub-tasks, work packages and milestones

• Work breakdown structure outlines the hierarch of the tasks, sub-tasks, work packages and milestones

• Risk management

• Communication plan

• Quality plan

o Execution

o Monitoring and Control

• Control charts, referred to as Gantt charts, are used to monitor progress of the project

• Earned Value Management

• Critical Path Method

• Time cost models and Project Crashing

o Closing

• Get signoff from customer

• Close accounts and reassign project team members

Week 5 Study Guide: Introduction to Process Improvement

Readings and Key Terms

• Ch. 9 of Operations and Supply Chain Management

o Total Quality Management (TQM)

o Design Quality

o Conformance quality

o Quality at the source

o Dimensions of Quality

o Cost of Quality

o Six Sigma

o DMAIC.

o PDCA cycle

o Continuous Improvement

o Kaizen

o Lean Six Sigma

o Fail-safe or Poka-yoke procedures

o ISO-9000

o External benchmarking

Content Overview

• International Standards

o ISO 9000

o ISO 14000

o Three forms of certification

• First party

• Second party

• Third party

• Total Quality Management

o Quality specifications

• Conformance quality

• Quality at the source

• Dimensions of quality

o Cost of quality

• Appraisal costs

• Prevention costs

• Internal failure costs

• External failure costs

• Six Sigma

o Methodology

• DMAIC

• PDCA cycle

o Analytical tools

• Flow charts

• Run charts

• Pareto charts

• Check sheets

• Cause and effect diagrams

• Opportunity flow diagram

• Control charts

• Failure mode and effect analysis

• Design of Experiments (DOE)

o Shingo System: Fail-safe design (poka yoke)

Week 6 Study Guide: Process Improvement

Readings and Key Terms

• Ch. 9 of Operations and Supply Chain Management

o Total Quality Management (TQM)

o Design Quality

o Conformance quality

o Malcolm Baldrige National Quality Award

o Quality at the source

o Dimensions of Quality

o Cost of Quality

o Six Sigma

o DMAIC

o PDCA cycle

o Continuous Improvement

o Kaizen

o Lean Six Sigma

o Fail-safe or Poka-yoke procedures

o ISO-9000

o External benchmarking

• Ch. 20

o Synchronous manufacturing

o Throughput

o Operating Expenses

o Productivity

o Bottleneck

o Nonbottleneck

o Capacity-constrained resource (CCR)

Content Overview

• Total Quality Management

o Quality specifications

• Conformance quality

• Quality at the source

• Dimensions of quality

o Cost of quality

• Appraisal costs

• Prevention costs

• Internal failure costs

• External failure costs

• Six Sigma

o Methodology

• DMAIC

• PDCA cycle

• Continuous improvement

• Kaizen

o Analytical tools p293

• Flow charts

• Run charts

• Pareto charts

• Check sheets

• Cause and effect diagrams

• Control charts

• Failure mode and effect analysis

• Design of Experiments (DOE)

o Shingo System: Fail-safe design (poka yoke)

• Constraint Management

o Performance Measurements

• Financial Measurements

• Net profit

• Return on Investment (ROI)

• Cash flow

• Operational Measurements

• Throughput

• Inventory

• Productivity

o Bottlenecks and Capacity Constraints

• Time components

• Finding the bottleneck

• Saving time

• Batch sizes

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