OPERATIONS AND SUPPLY CHAIN MANAGEMENT – WGU WITH WITH BEST SOLUTIONS

OPERATIONS AND SUPPLY CHAIN MANAGEMENT – WGU WITH WITH BEST SOLUTIONS Throughput - the maximum rate of output possible in the current system Theory of Constraints 5-step thinking process: - a. Identify the system's constraints b. Exploit the system's constraint c. Subordinate everything else to the above decision d. Elevate the system's constraint e. If a constraint has been broken, go back to step 1. Do not allow inertia to cause a systems constraint Facility location - the placement of a facility with regards to a company's customers, suppliers, and other facilities with which the company interacts. Quantitative factors - are easily measurable and are usually assigned a numerical value Process selection - determining the most appropriate method of completing a task. It is a series of decisions that include technical or engineering issues and volume or scale issues. There is a strong relationship among process selection and volume, cost, and profit. Capacity - is a measure of an organization's ability to sustainably provide customers with the demand services or goods in the amount requested and in a timely manner. Capacity planning - very important because large amounts of capital are usually required to build the facilities and purchase the equipment to build capacity System capacity - the ability of an overall organization to produce a sufficient number of goods and services to meet the demands of customers, considering both its strongest and weakest production points Product oriented layout - characterized by high demand for the same or similar product. Few, if any, product variations, and the layout fits the dominant flow of the product Process-oriented layout - characterized by the production of many different products with the same equipment and low volume of any individual product Design capacity - the maximum achievable output of a process or system Effective capacity - the maximum capacity given the product mix, equipment changeovers, and scheduled downtime of the production schedule. Capacity utilization - is a metric used to determine how much capacity is actually being used on an average basis. Actual speed/design capacity