C215 - Chp 9: Capacity Planning & Facility Location//Chp 3: Product Design and Process Selection

Best operating level

The volume of output that results in the lowest average unit cost.

Break-even analysis

A technique used to compute the amount of goods that must be sold just to cover costs.

Capacity

The maximum output rate that can be achieved by a facility.

Capacity cushion

Additional capacity added to regular capacity requirements to provide greater flexibility.

Capacity planning

The process of establishing the output rate that can be achieved by a facility

Capacity utilization

Percentage measure of how well available capacity is being used.

Decision tree

Modeling tool used to evaluate independent decisions that must be made in sequence.

Design capacity

The maximum output rate that can be achieved by a facility under ideal conditions

Diseconomies of scale

A condition in which the cost of each additional unit made increases.

Economies of scale

A condition in which the average cost of a unit produced is reduced as the amount of output is increased.

Effective capacity

The maximum output rate that can be sustained under normal conditions.

Expected value (EV)

A weighted average of chance events, where each chance event is given a probability of occurrence

Factor rating

A procedure that can be used to evaluate multiple alternative locations based on a number of selected factors

Focused factories

Facilities that are small, specialized, and focused on a narrow set of objectives.

Globalization

The process of locating facilities around the world

Load-distance model

A procedure for evaluating location alternatives based on distance.

Location analysis

Techniques for determining location decisions.

Rectilinear distance

The shortest distance between two points measured by using only north-south and east-west movements

3D Printing

three-dimensional printing technology that deposits materials like plastics and metals in thick layers one atop the other with the process gradually building up one layer at a time until the object is produced.

Assemble-to-order strategy

Produces standard components that can be combined to customer specifications.

Automation

Using machinery to perform work without human operators.

Batch process

A type of process used to produce a small quantity of products in groups or batches based on customer orders or specifications

Benchmarking

The process of studying the practices of companies considered "best-in-class" and comparing your company's performance against theirs.

Bottleneck

Longest task in the process.

Break-even analysis

A technique used to compute the amount of goods a company would need to sell to cover its costs.

Computer-aided design (CAD)

A system that uses computer graphics to design new products.

Computer-integrated manufacturing (CIM)

A term used to describe the integration of product design, process planning, and manufacturing using an integrated computer system.

Concurrent engineering

An approach that brings together multifunction teams in the early phase of product design in order to simultaneously design the product and the process.

Continuous process

A type of process that operates continually to produce a high volume of a fully standardized product.

Design for manufacture (DFM)

A series of guidelines to follow in order to produce a product easily and profitably.

Early supplier involvement (ESI)

Involving suppliers in the early stages of product design.

Efficiency

Ratio of actual output to standard output.

Fixed costs

Costs a company incurs regardless of how much it produces.

Flexible manufacturing system (FMS)

A type of automated system that combines the flexibility of intermittent operations with the efficiency of repetitive operations.

Global positioning systems (GPS)

A type of wireless technology that uses satellite transmission to communicate exact locations.

Information technology (IT)

Technology that enables storage, processing, and communication of information within and between firms.

Intermittent operations

Processes used to produce a variety of products with different processing requirements in lower volumes.

Line process

A type of process used to produce a large volume of a standardized product.

Make-to-order strategy

Produces products to customer specifications after an order has been received.

Make-to-stock strategy

Produces standard products and services for immediate sale or delivery.

Manufacturability

The ease with which a product can be made.

Numerically controlled (NC) machine

A machine controlled by a computer that can perform a variety of tasks.

Process flow analysis

A technique used for evaluating a process in terms of the sequence of steps from inputs to outputs with the goal of improving its design.

Process flowchart

A chart showing the sequence of steps in producing the product or service.

Process performance metrics

Measurements of different process characteristics that tell how a process is performing.

Process velocity

Ratio of throughput time to value-added time.

Product design

The process of defining all of the product's characteristics.

Product life cycle

A series of stages that products pass through in their lifetime, characterized by changing product demands over time.

Productivity

Ratio of outputs over inputs.

Project process

A type of process used to make a one-at-a-time product exactly to customer specifications.

Radio frequency identification (RFID)

A wireless technology that uses memory chips equipped with radio antennas attached to objects used to transmit streams of data.

Remanufacturing

The concept of using components of old products in the production of new ones.

Repetitive operations

Processes used to produce one or a few standardized products in high volume.

Reverse engineering

The process of disassembling a product to analyze its design features.

Service design

The process of establishing all the characteristics of the service, including physical, sensual, and psychological benefits.

Service package

A grouping of physical, sensual, and psychological benefits that are purchased together as part of the service.

Throughput time

Average amount of time it takes a product to move through the system.

Utilization

Ratio of time a resource is used to time it is available for use.

Variable costs

Costs that vary directly with the amount of units produced.