Term
| Elements of supply chain managements |
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Definition
Customers – what products/services do customers want
Forecasting – predicting timing and volume of customer demand
Design – incorporating customer wants, manufacturability, and time to market
Capacity planning – matching supply and demand
Processing – controlling quality, scheduling work
Inventory – meeting demand requirements while managing costs
Purchasing – evaluating potential suppliers, supporting the needs of operations on purchased goods and services
Suppliers – monitoring supplier quality, on-time delivery, and flexibility; maintaining supplier relations
Location – determining the location of facilities
Logistics – deciding how to best move information and materials |
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Term
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Definition
Tactics
The methods and actions taken to accomplish strategies
The “how to” part of the process
Operations
The actual “doing” part of the process |
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Term
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Definition
Effective strategy formulation requires taking into account:
Core competencies
Environmental scanning
SWOT
Successful strategy formulation also requires taking into account:
Order qualifiers
Order winners |
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Term
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Definition
A measure of the effective use of resources, usually expressed as the ratio of output to input
Productivity measures are useful for
Tracking an operating unit’s performance over time
Judging the performance of an entire industry or country |
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Term
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Definition
Strategy that focuses on quality in all phases of an organization
Pursuit of such a strategy is rooted in a number of factors:
Trying to overcome a poor quality reputation
Desire to maintain a quality image |
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Term
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Definition
Strategies that focus on the reduction of time needed to accomplish tasks
It is believed that by reducing time, costs are lower, quality is higher, productivity is higher, time-to-market is faster, and customer service is improved |
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Term
| Agile Operations strategies |
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Definition
A strategic approach for competitive advantage that emphasizes the use of flexibility to adapt and prosper in an environment of change
Involves the blending of several core competencies:
Cost
Quality
Reliability
Flexibility |
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Term
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Definition
Develop productivity measures for all operations
Determine critical (bottleneck) operations
Develop methods for productivity improvements
Establish reasonable goals
Make it clear that management supports and encourages productivity improvement
Measure and publicize improvements
Don’t confuse productivity with efficiency |
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Term
| productivity VS effectivemess VS efficiency |
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Definition
Effectiveness = doing the "right" thing
productivity: more for less
efficiency: speed (getting most of same) |
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Term
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Definition
| Unique, one-time operations designed to accomplish a specific set of objectives in a limited time frame |
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Term
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Definition
A hierarchical listing of what must be done during a project
Establishes a logical framework for identifying the required activities for the project
Critical Activities – those that if delayed with make the project late/ over budget
Three tools to manage projects : Gantt charts, CPM PERT |
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Term
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Definition
CPM – one exact time
PERT – allows for more accurate calculations
T o = time optimistic
T m = time most likely
T p = time pessimistic |
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Term
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Definition
Draw the project network using nodes and arrows
Use forward pass (left to right) to determine ES & EF times
Use backward pass (right to left) LS & LF
Calculated slack for each activities and determine critical path |
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Term
| Probabilistic Time Estimates |
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Definition
Measure of variance away from average line = standard deviation
Mean +/- 1 sd = 68% of output
Mean +/- 2 sd = 95.5% of output
Mean +/- 3 sd = 99.7% (~100%)
Z Table = lists % for in between sd’s
sd and mean = fully describe data, what percent of data fall within what values. |
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Term
| Determining the critical Path |
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Definition
| A critical path is a path of activities, from the Start node to the Finish node, with 0 slack times. |
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Term
| definitiaon of Crashing a project |
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Definition
Shortening activity durations
Typically, involves the use of additional funds to support additional personnel or more efficient equipment, and the relaxing of some work specifications
The project duration may be shortened by increasing direct expenses, thereby realizing savings in
indirect project costs |
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Term
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Definition
Crash the project one period at a time
Crash the least expensive activity that is on the critical path
When there are multiple critical paths, find the sum of crashing the least expensive activity on each critical path
If two or more critical paths share common activities, compare the least expensive cost of crashing a common activity shared by critical paths with the sum for the separate critical paths |
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Term
| Potential sources of error in project management |
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Definition
The project network may be incomplete
Precedence relationships may not be correctly expressed
Time estimates may be inaccurate
There may be a tendency to focus on critical path activities to the exclusion of other important project activities
Major risk events may not be on the critical path |
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Term
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Definition
| Linear programming involves choosing a course of action when the mathematical model of the problem contains only linear functions. |
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Term
| Process for linear programming |
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Definition
Define decision variables
Define objective functions in terms of decision variables
Define constraints in terms of decision variables
Write non-negativity constraint |
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Term
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Definition
| limit the degrees to which the obejctive can be pursued |
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Term
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Definition
| satisfies all the problems' constraints |
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Term
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Definition
| feasible solution that results in th largest possible objective vlaue when maximinzing (or smallest when minimising). |
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Term
| Range of Optimality and 100% rule |
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Definition
| The 100% rule states that simultaneous changes in objective function coefficients will not change the optimal solution as long as the sum of the percentages of the change divided by the corresponding maximum allowable change in the range of optimality for each coefficient does not exceed 100%. |
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