Operations Management: Exam Review

Define the elements of capacity

FIxed Capacity: The total amount of products that we can make given the equipment in the buildings we have i.e.) 3D printers

Operating Capacity: How much production we’re going to schedule in our plans(schedule planning), how much we’re going to make using our fixed capacity to meet demand. OC=Demand

Explain how these factors correlate with demand

1.) D>OC, stock out, ill will with customers

2.) D<OC, overproduction, excessive capacity cost

3.) Demand can be higher or lower than fixed capacity

4.) variation in demand can be due to factors like competitors or seasonality

Inventory Management

1.) Inventory: A buffer for variation in demand, can be provided for the customers to make profit if demand spikes.

-pros: take advantage of high demand, cons: carrying cost and/or spoilage

2.) Carrying Cost: The cost associated with carrying inventory in storage

a.) warehouse building cost

b.) pay workers to build it

c.) insurance of warehouse

d.) excessive inventory can be bad if there is too much, it adds to the carrying cost and can “spoil” (literally or just in value)

Research & Development

QFD: Quality Function Deployment (see graph)

Scenario Analysis

Exploring risks and returns, yo9u ne3ed to do it properly or else you’ll run out of cash.

[Run analysis in the simulation]

Ending Cash Balance:

Demand Problem Solving Process

A3 process: [see graph]

Balance Scorecard

How you win or lose the simulation

1.) Shows organizational performance within the key measures

a.) balance=measure will be across 4 dimensions (finance, operational performance, knowledge and learning,)

2.) Identify most relevant key measure

a.) product design/brand judgement

b.) be able to write the formula. “how can I manipulate this?” (re-design features that correlate with customer benefits)

Conduct a Operational Analysis

1.) Define and understand the stages of it

2.) Add how it is relevant/relates to your company