SCHM2301 Quiz 1 Slides

supply chain

Operations Management (OM)

Management of processes used to design, supply, produce, and deliver valuable goods and services to customers.

Supply Chain Management (SCM)

Design and execution of relationships and flows that connect the parties and processes across the supply chain.

Juran’s Law

85% of operational problems are caused by process errors, while 15% are due to human errors.

Theory of Constraints

Every process has a constraint (bottleneck) that limits the system’s overall performance.

Little’s Law

Flow time = Inventory ÷ Throughput Rate.

Takt Time

The maximum time allowed to meet customer demand. Formula

Line Balancing

Assigning tasks to workstations to meet a desired output rate while minimizing idle time.

Economies of Scale

The reduction in per-unit cost as production volume increases.

Process Thinking

Viewing activities in an organization as a collection of processes to improve efficiency and effectiveness.

Process Mapping

A technique for documenting and analyzing activities in a process to identify areas for improvement.

Cellular Manufacturing

Production system with small assembly lines for similar process characteristics, increasing flexibility.

Mass Customization

Production of high-volume products with variations tailored to customer preferences using standard modules.

Supply Chain Partners

Customers, suppliers, and stakeholders involved in the supply chain.

Capacity Management

Adjusting resources and processes to handle demand effectively.

Emerging Technologies in SCM

Innovations like IoT, AI, blockchain, and automation that enhance supply chain operations.

What is the primary goal of Operations Management?

To create and enhance the value of goods and services by designing, executing, and improving processes.

How does Supply Chain Management link major business functions?

By integrating functions and processes into a cohesive and high-performing business model.

What are the main differences between goods and services in operations?

Goods are tangible, can be inventoried, and involve little customer contact. Services are intangible, cannot be inventoried, and often require extensive customer contact.

What is Juran’s Law, and why is it important?

It states that 85% of operational problems are due to process errors. This highlights the need for focusing on process improvement.

How is takt time calculated, and what does it indicate?

Takt Time = Available production time ÷ Customer demand. It indicates the pace of production needed to meet demand.

What is a bottleneck in the Theory of Constraints?

A bottleneck is a step in a process where demand exceeds capacity, limiting the overall output.

Give an example of using Little’s Law in a process.

A bakery processes 100 cakes/day and keeps 50 cakes in inventory. Flow time = 50 ÷ 100 = 0.5 days.

What are the steps in process mapping?

Determine desired outcomes, identify critical processes, document the current state, analyze improvements, create a future state, implement and monitor.

How does cellular manufacturing improve flexibility?

By training workers in all activities and creating small assembly lines, reducing processing time and setup times.

What are the key components of capacity management?

Adjusting resources, using subcontracting, managing seasonal demand, and varying prices to match capacity with demand.

What is the importance of emerging technologies in SCM?

Technologies like IoT and AI enhance connectivity, automate processes, improve accuracy, and provide real-time data insights.

What is the purpose of line balancing in production layouts?

To minimize idle time and ensure tasks are distributed evenly across workstations to meet production goals.

What is the difference between functional and innovative products in supply chains?

Functional products have predictable demand and long life cycles, while innovative products have unpredictable demand and short life cycles.

What is the role of performance metrics in operations?

Metrics help measure performance, align processes with strategy, and support continuous improvement.

What is the difference between front-office and back-office processes?

Front-office processes interact directly with customers, while back-office processes operate behind the scenes.