Opma 3306 - Exam 2(with solved solutions)
Production Process correct answers Used to make any manufactured item
Step 1- Source the parts needed
Step 2- Make the product
Step 3- Deliver the product
Lead Time correct answers The time needed to respond to a customer order
Customer Order Decoupling Point correct answers Where inventory is positioned to allow entities in the
supply chain to operate independently
Lean Manufacturing correct answers A means of achieving high levels of customer service with minimal
inventory investment
Types of Firms correct answers 1. Make-to-Stock
2. Assemble-to-Order
3. Make-to-Order
4. Engineer-to-Order
Make-to-Stock correct answers Serve customers from finished goods inventory
Televisions, clothing, packaged food products
Essential issue in satisfying customers is to balance the level of inventory against the level of customer
service (easy with unlimited inventory but inventory costs money; trade-off between the cost of inventory
and level of customer service must be made)
Use lean manufacturing to achieve higher service levels for a given inventory investment
,Assemble-to-Order correct answers Combine a number of preassembled modules to meet a customer's
specifications
A primary task is to define a customer's order in terms of alternative components since these are carried in
inventory
One capability required is a design that enables as much flexibility as possible in combining components
Make-to-Order correct answers Make the customer's product from raw materials, parts, and components
Customer order decoupling point could be in either raw materials at the manufacturing site or the supplier
inventory
Depending on how similar the products are, it might not even be possible to pre-order parts
Engineer-to-Order correct answers Work with the customer to design and then make the product
Boeing's process for making commercial aircraft
Customer order decoupling point could be in either raw materials at the manufacturing site or the supplier
inventory
Depending on how similar the products are, it might not even be possible to pre-order parts
Production Process Mapping correct answers Develop a high-level map of a supply chain process
Useful to understand how material flows and where inventory is held
First step in analyzing the flow of material through a production process
Little's Law correct answers The flow of items through a production process can be described through this
, Inventory = (Throughput Rate)(Flow Time)
Throughput- Long term average rate of flow through the process
Flow Time- Time for a single unit to traverse the entire process
Inventory- Materials held by the firm for future use
Total Average Value of Inventory correct answers The sum of the value (at cost) of the raw material,
work-in process, and finished goods inventory
Commonly tracked in accounting systems and reported in financial statements
Inventory Turns correct answers The cost of goods sold divided by the average inventory value
Not particularly useful for evaluating the performance of a process
Days of Supply correct answers The inverse of inventory turns scaled to days
Layout Analysis correct answers Seeks to maximize the efficiency or effectiveness of operations
Basic Forms of Transportation Systems correct answers 1. Continuous Process
2. Assembly Line
3. Job Shop
4. Cellular
5. Project
Continuous Process correct answers Highly standardized products in large volumes
Production Process correct answers Used to make any manufactured item
Step 1- Source the parts needed
Step 2- Make the product
Step 3- Deliver the product
Lead Time correct answers The time needed to respond to a customer order
Customer Order Decoupling Point correct answers Where inventory is positioned to allow entities in the
supply chain to operate independently
Lean Manufacturing correct answers A means of achieving high levels of customer service with minimal
inventory investment
Types of Firms correct answers 1. Make-to-Stock
2. Assemble-to-Order
3. Make-to-Order
4. Engineer-to-Order
Make-to-Stock correct answers Serve customers from finished goods inventory
Televisions, clothing, packaged food products
Essential issue in satisfying customers is to balance the level of inventory against the level of customer
service (easy with unlimited inventory but inventory costs money; trade-off between the cost of inventory
and level of customer service must be made)
Use lean manufacturing to achieve higher service levels for a given inventory investment
,Assemble-to-Order correct answers Combine a number of preassembled modules to meet a customer's
specifications
A primary task is to define a customer's order in terms of alternative components since these are carried in
inventory
One capability required is a design that enables as much flexibility as possible in combining components
Make-to-Order correct answers Make the customer's product from raw materials, parts, and components
Customer order decoupling point could be in either raw materials at the manufacturing site or the supplier
inventory
Depending on how similar the products are, it might not even be possible to pre-order parts
Engineer-to-Order correct answers Work with the customer to design and then make the product
Boeing's process for making commercial aircraft
Customer order decoupling point could be in either raw materials at the manufacturing site or the supplier
inventory
Depending on how similar the products are, it might not even be possible to pre-order parts
Production Process Mapping correct answers Develop a high-level map of a supply chain process
Useful to understand how material flows and where inventory is held
First step in analyzing the flow of material through a production process
Little's Law correct answers The flow of items through a production process can be described through this
, Inventory = (Throughput Rate)(Flow Time)
Throughput- Long term average rate of flow through the process
Flow Time- Time for a single unit to traverse the entire process
Inventory- Materials held by the firm for future use
Total Average Value of Inventory correct answers The sum of the value (at cost) of the raw material,
work-in process, and finished goods inventory
Commonly tracked in accounting systems and reported in financial statements
Inventory Turns correct answers The cost of goods sold divided by the average inventory value
Not particularly useful for evaluating the performance of a process
Days of Supply correct answers The inverse of inventory turns scaled to days
Layout Analysis correct answers Seeks to maximize the efficiency or effectiveness of operations
Basic Forms of Transportation Systems correct answers 1. Continuous Process
2. Assembly Line
3. Job Shop
4. Cellular
5. Project
Continuous Process correct answers Highly standardized products in large volumes
