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The optimal strategy for functional products is to utilize a responsive supply-chain.
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Complex projects are often subdivided into a series of tasks that are typically
configured to be not longer than several months in duration.
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In the fixed-time period model it is necessary to determine the inventory currently on
hand to calculate the size of the order to place with a vendor.
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Facility location decisions are made using analytical techniques that are able to weigh a
large number of different variables equally.
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Effective management of services requires a clear focus on understanding operations, so
much so, that it may even require the exclusion of consideration of marketing or
personnel.
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Trying to maximize effectiveness and efficiency at the same time can create conflict.
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A typical manufacturing QC department has a variety of functions to perform including
preparing the firm's annual application for the Malcolm Baldrige National Quality
Award.
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Designing a new product for aesthetics and for the user is generally termed industrial
design.
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If demand for an item is normally distributed we plan for demand to be twice the
average demand and carry 2 standard deviations worth of safety stock inventory.
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Since MRP systems focus on batch or lot-sized orders and JIT is focused on individual
item production, the two systems are incompatible and cannot work together.
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A master production schedule is an essential input to a material requirements planning
(MRP) system.
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Because little or no inventory is carried in a service operation, it is easy to separate the
operations management functions from marketing in services.
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One of the biggest complaints by users of MRP systems is that MRP is too flexible in
making changes in schedules when the need arises.
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Kanban means 'symbol" or "box" in Japanese.
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Longest waiting time in line is a queue discipline discussed in the textbook.
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The point at which the scale economy curve and the experience curve intersect is called
the capacity optimum.
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Work measurement and standards have proven ineffective because management
regularly sets standards that cannot be achieved.
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The Gantt chart is an example of a project control chart.
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