Forecasting, Product & Service Design, Capacity Planning, Process Selection

Flashcards covering key vocabulary and definitions related to forecasting, product and service design, capacity planning, and process selection.

What are the key characteristics of a good forecast?

1. Timely 2. Accurate 3. Reliable 4. Meaningful units 5. In writing 6. Simple to understand 7. Cost efficient

What is the primary risk associated with overly optimistic forecasts?

Can lead to excesses of materials and capacity throughout the supply chain.

Define 'Forecast Accuracy'.

The degree to which a forecast prediction reflects the actual future outcomes.

What are the stages in the forecasting process?

1. Determine purpose 2. Establish time horizon 3. Obtain, clean and analyze data 4. Select forecasting technique 5. Make the forecast 6. Monitor forecast errors.

What is the difference between qualitative and quantitative forecasting?

Qualitative forecasting uses subjective inputs, while quantitative forecasting utilizes historical data and statistical models.

Describe the Delphi method in forecasting.

An iterative process where experts answer a series of questionnaires to achieve a consensus forecast.

What is the 'Naive forecast'?

A prediction that the next period's value will equal the previous period's actual value.

What is 'Manufacturability'?

The capability of an organization to produce an item at an acceptable profit.

What does 'Serviceability' refer to?

The ability of an organization to provide a service at an acceptable cost or profit.

What are the three types of research in product design?

1. Basic research 2. Applied research 3. Development.

Define 'Product Liability'.

The responsibility of a manufacturer for injuries or damages caused by a faulty product due to poor design or workmanship.

What are the key factors in strategic capacity planning?

Design capacity, effective capacity, efficiency, and utilization.

What is 'Utilization' in capacity planning?

The ratio of actual output to design capacity, expressed as a percentage.

Explain 'Capacity Cushion'.

Extra capacity above expected demand used to offset uncertainty, calculated as Capacity − Expected Demand.

What are the main types of process layouts?

1. Product Layout 2. Process Layout 3. Fixed-Position Layout.

What is the purpose of 'Design for Recycling'?

To design products that facilitate the recovery and reuse of materials and components.

What are the benefits of remanufacturing?

Products can be sold at lower costs, require unskilled labor, and reduce waste and resource depletion.

What is 'Creeping Featurism'?

The tendency to add too many features to a product, which can increase complexity and reduce usability.