COB 300 Operations Chp 4 Summaries
Process **** Any set of activities performed by an organization that takes inputs and
transforms them into outputs ideally of greater value to the organization than the original
inputs. The output of many processes are services.Converts investment in resources to
value for which customers pay.
A good process: Adds value, keep costs as low as possible
Process: Basic performance Measures **** Cycle time: average time between
completions of successive units. Determined by bottleneck. Determined by bottleneck!
Utilization: The ratio of the time that a resource is actually used/activated relative to the
time that it is available for use.
Flowcharting **** Use a diagram to present the major elements of a process. An ideal
methodology to be used to being analyzing a process.
Drawing a picture is always the first step in analyzing a process, a diagram showing the
basic elements of a process.
Tasks or operations are shown as rectangles.
Flows of material or customers as arrows.
Storage areas of queues (waiting lines) inverted triangles.
Decision points are diamonds.
Separating the different horizontal or vertical bands sometimes is useful because it
allows the separation of tasks that are part of the process. Large buffers allow the
process to operate independently, whereas small buffers require more attention. These
items have a value, so they also represent money.
Analysing a process **** Step 1. Analyze the current process
Step 2. analyze the new process
Step 3. Compare
Step 4. Consider other processes from other companies.
Suppose the whole process takes 6 minutes: Lead time.
What's useful about categorizing a process? **** can show similarities and differences
between the process
,Single stage vs. multiple-stage process **** Multiple: multiple group of activities that
are linking through the flow.
Stage: Used to indicate that multiple activities have been pulled together for analysis
purposes.
Single: Stage 1 ->
Multi:
Stage 1 -> Stage 2 -> Stage 3
Buffering **** a storage area between stages where the output of a stage is placed
prior to being used in a downstream stage.
Allows the stages to operate independently. If one stage feeds a second stage with no
intermediate bugger, the assumption is that the two stages are directly linked.
Waiting area for the jobs.
Problems with directly linked processes **** blocking and starving
blocking **** the activities in the stage must stop because there is no place to deposit
the item just completed. Activities in a stage must stop because there is no place to
deposit the item.
Two-stage process, 1 has a cycle time of 30 seconds 2 has a cycle time of 45 seconds.
Over time the 1st process would have to wait 15 seconds to go to the 2nd process, this
is called blocking.
Starving **** The activities in a stage must stop because there is no work.
Two-stage process, 1 has a cycle time of 30 seconds 2 has a cycle time of 45 seconds.
If you were to produce 100 units, you could do so this way:
1st process: 30 seconds * 100 units= 3,000 seconds
2nd process: 45 * 100 units= 4,500 seconds.
OR ....
If stage 2 is very fast but stage 1 is very slow, stage 2 will be starved for work.
bottleneck **** a resource that little the capacity of maximum output of the process.
Stage that limits the capacity of the process.
Example: If the first stage takes longer then the second stage, the first stage would be
the bottleneck.
, Serial flow process **** a single path for all stages of production
Parallel process **** Some of the operations has alternative paths where two or more
resources are used to increase capacity.
Logistics Process **** movement of things such as materials, people or finished goods.
Not as important right now.
In practice, often __________ is not included in the utilization of the process. **** Set
up and machine time.
Make-To-Stock (MTS) vs. Make-To-Order (MTO) **** Make-To-Stock: Process that
produces standard products that can be delivered quickly to the customer, quick
process, ends with finished goods inventory; customer orders are then served from this
inventory. Made to meet expected/forecasted demand. Served from target stocking
level, shorter lead time for stocked items. Much longer for out of stock items, risk of
obsolesce, shrink. Suitable for items with high and stable demand. Required when
customer lead time is less than manufacturing lead time. Make-to-stock processes can
be controlled based on the actual or anticipated amount of finished goods inventory.
Make-to-stock process is also used when demand is seasonal and the firm does not
have enough capacity to keep up during the peak season
Make-To-Order: Process is activated only in response to an actual order. Inventory is
kept to a minimum (both work-in-process and finished goods). Services by their nature
often use make-to-order processes. Process activated in response to an actual order,
may either standard or custom product. WIP and finished goods inventory kept to a
minimum, tends to have longer response time, suitable for items with low-medium and
variable demand.
Assemble-to-order ATO/ Hybrid **** Partially manufactured and held in unfinished
states. Customer order dictates final configuration, quicker response than MTO and
more flexible than MTS.
Combines the features of both make-to-order and make-to-stock.
The most common hybrid, generic product is made and stock at some point in the
process, then finished in a final process based on actual orders.
Example: Make cheeseburger, but do not add toppings till you find out what customer
wants.
paced vs. nonpaced **** Pacing is the movement of items through a process is
coordinated through a timing mechanism
Process **** Any set of activities performed by an organization that takes inputs and
transforms them into outputs ideally of greater value to the organization than the original
inputs. The output of many processes are services.Converts investment in resources to
value for which customers pay.
A good process: Adds value, keep costs as low as possible
Process: Basic performance Measures **** Cycle time: average time between
completions of successive units. Determined by bottleneck. Determined by bottleneck!
Utilization: The ratio of the time that a resource is actually used/activated relative to the
time that it is available for use.
Flowcharting **** Use a diagram to present the major elements of a process. An ideal
methodology to be used to being analyzing a process.
Drawing a picture is always the first step in analyzing a process, a diagram showing the
basic elements of a process.
Tasks or operations are shown as rectangles.
Flows of material or customers as arrows.
Storage areas of queues (waiting lines) inverted triangles.
Decision points are diamonds.
Separating the different horizontal or vertical bands sometimes is useful because it
allows the separation of tasks that are part of the process. Large buffers allow the
process to operate independently, whereas small buffers require more attention. These
items have a value, so they also represent money.
Analysing a process **** Step 1. Analyze the current process
Step 2. analyze the new process
Step 3. Compare
Step 4. Consider other processes from other companies.
Suppose the whole process takes 6 minutes: Lead time.
What's useful about categorizing a process? **** can show similarities and differences
between the process
,Single stage vs. multiple-stage process **** Multiple: multiple group of activities that
are linking through the flow.
Stage: Used to indicate that multiple activities have been pulled together for analysis
purposes.
Single: Stage 1 ->
Multi:
Stage 1 -> Stage 2 -> Stage 3
Buffering **** a storage area between stages where the output of a stage is placed
prior to being used in a downstream stage.
Allows the stages to operate independently. If one stage feeds a second stage with no
intermediate bugger, the assumption is that the two stages are directly linked.
Waiting area for the jobs.
Problems with directly linked processes **** blocking and starving
blocking **** the activities in the stage must stop because there is no place to deposit
the item just completed. Activities in a stage must stop because there is no place to
deposit the item.
Two-stage process, 1 has a cycle time of 30 seconds 2 has a cycle time of 45 seconds.
Over time the 1st process would have to wait 15 seconds to go to the 2nd process, this
is called blocking.
Starving **** The activities in a stage must stop because there is no work.
Two-stage process, 1 has a cycle time of 30 seconds 2 has a cycle time of 45 seconds.
If you were to produce 100 units, you could do so this way:
1st process: 30 seconds * 100 units= 3,000 seconds
2nd process: 45 * 100 units= 4,500 seconds.
OR ....
If stage 2 is very fast but stage 1 is very slow, stage 2 will be starved for work.
bottleneck **** a resource that little the capacity of maximum output of the process.
Stage that limits the capacity of the process.
Example: If the first stage takes longer then the second stage, the first stage would be
the bottleneck.
, Serial flow process **** a single path for all stages of production
Parallel process **** Some of the operations has alternative paths where two or more
resources are used to increase capacity.
Logistics Process **** movement of things such as materials, people or finished goods.
Not as important right now.
In practice, often __________ is not included in the utilization of the process. **** Set
up and machine time.
Make-To-Stock (MTS) vs. Make-To-Order (MTO) **** Make-To-Stock: Process that
produces standard products that can be delivered quickly to the customer, quick
process, ends with finished goods inventory; customer orders are then served from this
inventory. Made to meet expected/forecasted demand. Served from target stocking
level, shorter lead time for stocked items. Much longer for out of stock items, risk of
obsolesce, shrink. Suitable for items with high and stable demand. Required when
customer lead time is less than manufacturing lead time. Make-to-stock processes can
be controlled based on the actual or anticipated amount of finished goods inventory.
Make-to-stock process is also used when demand is seasonal and the firm does not
have enough capacity to keep up during the peak season
Make-To-Order: Process is activated only in response to an actual order. Inventory is
kept to a minimum (both work-in-process and finished goods). Services by their nature
often use make-to-order processes. Process activated in response to an actual order,
may either standard or custom product. WIP and finished goods inventory kept to a
minimum, tends to have longer response time, suitable for items with low-medium and
variable demand.
Assemble-to-order ATO/ Hybrid **** Partially manufactured and held in unfinished
states. Customer order dictates final configuration, quicker response than MTO and
more flexible than MTS.
Combines the features of both make-to-order and make-to-stock.
The most common hybrid, generic product is made and stock at some point in the
process, then finished in a final process based on actual orders.
Example: Make cheeseburger, but do not add toppings till you find out what customer
wants.
paced vs. nonpaced **** Pacing is the movement of items through a process is
coordinated through a timing mechanism
