DEFINITION OF TERMS

❖ AUTOMATION - machinery that has sensing and control devices that enable it to operate automatically.
❖ ASSEMBLY LINE - standardized layout arranged according to a fixed sequence of assembly tasks.
❖ AGGREGATE PLANNING - intermediate range capacity planning usually covering 2 to 12 months
- is a broad approach to planning that focuses on groups of similar products or
services rather than individual items.
❖ BACKLOGGING - can result in lost sales and lower customer service levels.
❖ BOTTLENECK OPERATION - an operation in a sequence of operations whose capacity is lower than that of
the other operations.
❖ BREAK-EVEN POINT - the volume of output at which total cost and total revenue are equal.
❖ CAPACITY - the upper limit or ceiling on the load that an operating unit can handle.
❖ COMPENSATION - significant issue for the design of work system.
❖ CLUSTERING - similar types of businesses locate near each other.
❖ CONSTRAINT - something that limits the performance of a process or system in achieving its goals.
❖ CASH FLOW - difference between cash received from sales and other sources.
❖ CAPACITY CUSHION - extra capacity used to offset demand uncertainty.
❖ CYCLE TIME - the maximum time allowed at each workstation to complete its set of tasks on a unit.
❖ CYCLICAL SCHEDULING - this method involves assigning employees to work shifts and days off on a
repeating cycle
❖ CLOSE DEMAND STRATEGY - ability and willingness on the part of managers to be flexible in adjusting to
demand
❖ DELAYED DIFFERENTATION - the process of producing but not quite completing, a product/service until
customer preferences are known.
❖ DESIGN CAPACITY - the maximum designed service capacity or output rate.
❖ ERGONOMICS - incorporation of human factors in the design of the workplace.
❖ EFFECTIVE CAPACITY - design capacity minus personal and other allowances.
❖ FINITE LOADING - schedules jobs based on actual capacity, ensuring that limits aren’t exceeded but often
requiring frequent updates.
❖ FLOW PROCESS CHART - used to examine the overall sequence of an operation by focusing on movements
of the operator or flow of materials.
❖ INVENTORIES - ties up capital, incurs storage costs and is often unsuitable for service organizations.
❖ INFINITE LOADING - assign jobs without considering the center’s capacity, potentially leading to overloads
and queues.
❖ JOB DESIGN - act of specifying the contents and methods of jobs.
❖ JOB TIME - time needed for setup and processing of a job.
❖ JOB LATENESS - the difference between the actual completion date and the due date.
❖ JOB SHOP - it usually operates on a relatively small scale; it is used when a low volume of high variety goods
or service will be needed.
❖ JOHNSON’S RULE - is a technique for minimizing makespan for a group of jobs to be processed on two
machines or at two work centers.
❖ JOB FLOW TIME - the amount of time from when a job arrives until it is finished.
❖ JUST IN TIME (JIT) - A process of scheduling materials used in production to arrive at the time they are
needed and in the right quantity
❖ JOB SHOP SCHEDULING - scheduling for low volume systems with many variations in requirements.
❖ LOADING - assigning of jobs to work centers and machines.
❖ LINEAR PROGRAMMING - methods for obtaining optimal solutions to problems involving the allocation of
scarce resources in terms of cost minimization or profit maximization.
❖ MOTIVATION - is a key factor in many aspects of work life.
❖ MICROFACTORY - small factory with a narrow product focus located near major markets.
❖ MASS CUSTOMIZATION - a strategy of producing basically standardized goods, but incorporating some
degree of customization.
❖ MOTION STUDY - systematic study of the human motions used to perform an operation.
❖ MASTER SCHEDULE - heart of production planning and control; shows product quantities and anticipated
delivery periods but not planned production
❖ MASTER PRODUCTION SCHEDULE - inventory management planning tool that plans what will be
produced, the quantity to be produced, how production will be carried out and when production will occur
❖ NORMAL OPERATING CONDITION - set of conditions under which an item’s reliability is specified.
❖ OFFICE LAYOUT - a layout that seeks to maximise productivity through efficient movement of information
and proximity to resources
❖ PROJECT - a nonrepetitive set of activities directed toward a unique goal within a limited time frame.
❖ PRESENT VALUE - the sum in current value of all future cash flows of an investment proposal.
❖ PRIORITY RULES - are simple heuristics used to select the order in which the jobs will be processed.
❖ PROCESS SELECTION - deciding on the way production of goods or services will be organized.
❖ PRODUCT LAYOUT - layout that uses standardized processing operations to achieve smooth, rapid, high
volume flow.
❖ PRODUCTION LINE - standardized layout arranged according to a fixed sequence of production tasks.
❖ PART TIME WORKERS - they can be a viable option depending on job nature, required skills, and union
agreements.
❖ RELIABILITY - ability of a product, part or system to perform its intended function under a prescribed set of
condition.
❖ ROBOT - machine consisting of a mechanical arm, power supply and a controller.
❖ REPETITIVE - used when a moderate volume of goods or services is desired and it can handle a moderate
variety in products or services.
❖ REDUNDANCY - the use of backup components to increase reliability.
❖ RETAIL LAYOUT - a layout that aims to display stock in such a way as to maximise business sales
❖ SCHEDULING - pertains to establishing the timing of the use of specific resources of that organization; it
relates to the use of equipment, facilities and human activities.
❖ SPECIALIZATION - work that concentrates on some aspect of a product or service.
❖ STANDARDIZE - documenting a process.
❖ SEQUENCING - determining the order in which jobs at a work center will be processed.
❖ SUBCONTRACTING - involves evaluating suppliers, potential cost increase and quality control challenges; it
provides temporary capacity but offers less control over output and may lead to higher costs and quality
issues.
❖ SEASONAL VARIATIONS - regularly repeating movement in series values that can be tied to recurring
events.
❖ SLACK TIME - provides opportunities for problem solving and retraining skilled workers.
❖ STANDARD TIME - the amount of time it should take a qualified worker to complete a specified task.
❖ TEAMS - the efforts of business organizations to become more productive, competitive and customer
oriented have caused them to rethink how work is accomplished.
❖ TECHNOLOGY - the application of scientific discoveries to the development and improvement of products
and services and operations processes.
❖ THERBLIGS - basic elemental motions that make up a job
 ❖ TREND - a long term upward or downward movement in data
❖ TECHNOLOGICAL INNOVATION - discovery and development of new or improved products, services or
processes for producing or providing them.
❖ VARIABILITY - changes in demand complicate scheduling efforts
❖ WORKSTATION - area where one or few workers or machines perform similar work.
❖ WORK MEASUREMENT - is concerned with determining the length of time it should take to complete the
job.
❖ YIELD MANAGEMENT - application of pricing strategies to allocate capacity among various categories of
demand.

TRUE OR FALSE (check is true)

Every set of activities represents a process that needs to be managed

“If you can’t measure it, you can’t manage it”
Competitive benchmarking involves comparing an organization’s performance with that of its best
competitors.
Reengineering means literally starting from the beginning with a clean sheet of paper.
Services can be produced to inventory to ensure availability.
Outdated process technology improves efficiency.
Lack of sales volume sustains plant operation.
The focus of work design is to simplify the work and eliminate wasted motions.
Error difference between the actual value and the value that predicted for a given period.
Operations Strategy can be divided into two major categories: structural elements and infrastructural
elements.
Warehousing OM transformation are referred to as exchange transformations.
Design capacity is just another term used to indicate effective capacity.
A job shop is similar to an assembly line in that both produce products or services to meet the customers
specifications.
When a very high volume of non-discrete, highly standardized output is desired, a continuous system is used.
Process selection is determined by the organization’s process strategy.
The maximum cycle time in an assembly line is equal to the time for the one longest task.
Batch processing is used when a high volume of goods or services is desired and it can handle a variety in
products or services.
The standard time for an activity is usually less than its normal time which allows for breaks and lunch.
Time study results in less detail about the time taken for a given task than work sampling.
A flow process chart reveals the overall sequence of operations by focusing on the movement of materials on
an assembly line.
Most manufacturing organization have a master scheduler.
The aggregate plan must be disaggregated to be useful for production.
Outsourcing is another option involving regular contracts with other organizations to supply goods or
services.
Slack time during low demand can be used for training and process improvement.
Some union contracts allow workers to refuse overtime.
Highly skilled workers are harder to find and more costly to recruit.
Organizations often face uneven demand for products or services during peak time.
Manufacturing firms with seasonal products may promote complementary products to better utilize labor and
equipment.
Aggregate plans are updated regularly, often monthly, to reflect new forecasts and changes.
High volume systems are characterized by standardized and repetitive operations that aim for a smooth flow
of goods or services.
Product and process design play a crucial role in enabling smooth system operations.
Sequencing jobs in a way that minimizes setup time can reduce these costs.
Low volume systems (job shops) are characterized by made to order products.
Establishing firm schedules is difficult until job orders are received.
Jobs that are in a shop are considered to be work in process inventory.
Work Safety is one of the most basic issues in job design.
Product and Service Profiling can be used to avoid any inconsistencies by identifying key product or service
dimensions and selecting appropriate processes.
Business Organizations are facing increasing pressure from a variety of sources to operate sustainable
production processes.
The goal of strategic capacity planning is to achieve a match between the long term supply capabilities of an
organization and the predicted level of long term demand.
Scheduling is primarily concerned with the timing and assignment of operations.
Job Shop schedule by priority rules is inherently deterministic in nature; the scheduler must plan as if both the
order of processing and the amount of time each job would take in each work center were known exactly.
The assignment method will solve a wide variety of problems that have to do with flow systems because of
the optimization of working sequencing.
Aggregate Planning is long range planning (2 years or more) for large products.
A level strategy involves matching demand and capacity in each period.
Scheduling involves assigning tasks to employees at specific times for completion.
Just in time (JIT) scheduling focuses on completing tasks as close to their deadlines as possible.
Rolling wave planning is a scheduling technique where the project plan is continuously updated and adjusted
based on new information.
Parallel Scheduling involves running multiple tasks simultaneously to speed up project completion.
Master Scheduling creates a detailed timetable for production that specifies when each individual unit will be
produced.
Forward Scheduling starts from the project's end date and works backward to determine task start dates.
The objective of lean service is a purposeful flow of satisfied customers.
Benchmarking measures a firm's quality performance by comparing it to the performance of other companies
that are known for being “best in class”.
Pareto chart is an arrangement of data where the causes of a problem are arranged in ascending frequency of
occurrence in order to highlight the most likely cause.
Continuous Improvement is a valuable concept, but it lacks measurement techniques.
MULTIPLE CHOICE

➢ A business process is a logical set of tasks or activities that are interdependent with other processes
➢ Performance measures concerned with specific work processes that are virtually the same for all industries
refers to generic benchmarks
➢ Relative productivity increases only if your productivity goes up faster than your competitions
➢ Analysis of therbligs is most closely related to motion study
➢ Giving workers responsibility for quality improvements and authority to make changes is known as employee
➢ Quality Function Development (QFD) starts with voice of the customer
➢ High customer contact systems would most commonly be found in front office operations
➢ Computer software are example of a nondurable good
➢ Capacity management might include inventory level adjustments
➢ Term that most closely associated with the term disaggregation Master Schedule
➢ One option for altering the capacity available in aggregate planning is Overtime or Slack Time
➢ One option in aggregate planning that shifts the pattern of demand from one period to another is Backorders
➢ The output of aggregate operations planning is The Production Plan
➢ A facility layout that must allow for trade offs between space and material handling would be Warehouse
Layout
➢ Breaking up process clusters into cells that make up a family of products with similar process flows describes
A Group Technology Layout
➢ A product layout would facilitate the concept of Service Interest
➢ Example of Process Layout: Hospital
➢ A batch type of service process has the characteristics of A Group of Customers treated Simultaneously
➢ One of the advantages of a product layout approach to service design is Achieving Equal Division of Labor
➢ Facility layout is discussed with attention to traffic low, space planning and Need to avoid unnecessary travel
➢ Rush Order Flow Time is the time it takes to complete a process from time of arrival to time of departure.
➢ Reliability is the dimension of service quality that is most important to customers.
➢ Unconditional Guarantee is not an approach to service recovery
➢ Responsiveness is the willingness to help customers and to provide prompt service
➢ Bar Chart are quality tools for analysis and problem solving
➢ Site selection considerations includes the Weather
➢ Movie Presentation has the lowest goods content; Medicine Prescription has the highest goods content
➢

ENUMERATION

5 BASIC PROCESS TYPES:

1. Job Shop 3. Repetitive
2. Batch 4. Continuous
5. Project
BEHAVIORAL APPROACHES TO JOB DESIGN
1. Job Enlargement 2. Job Rotation
3. Job Enrichment

DEMAND OPTIONS
1. Pricing 3. Back Orders
2. Promotion 4. New Demand

SUPPLY OPTIONS
1. Hire and Lay off Workers 3. Part-time Workers
2. Overtime / Slack Time 4. Inventories
5. Subcontracting

DETERMINANTS OF EFFECTIVE CAPACITY

1. Facilities 5. Policy Factors
2. Products and Service Factors 6. Operational Factors
3. Process Factors 7. Supply Chain Factors
4. Human Factors 8. External Factors

IMPORTANCE OF CAPACITY ALTERNATIVES

1. Flexibility 3. Customer Satisfaction
2. Cost Management 4. Risk Mitigation

APPROACHES TO COMPENSATE EMPLOYEES

1. Time based System 2. Output based System
3. Knowledge Based System

CHALLENGES IN SCHEDULING
1. Complexity 2. Variability
3. Different Patterns

3 INPUTS IN MASTER SCHEDULE

1. Starting Inventory 2. Predictions for each Period
3. Client Orders

HIRING COSTS
1. Recruitment 3. Training
2. Screening 4. Potential Quality Issues

STRATEGIES TO MANAGE VARIATIONS:

1. Excess Capacity 3. Design Strategies
2. Flexibility 4. Delayed Commitment
CONSTRAINTS IN WORKFORCE SCHEDULING
1. Legal Constraints 3. Behavioral Constraints
2. Technical Constraints 4. Technical Constraints
5. Budget Constraints

TOOLS AND TECHNIQUES IN SCHEDULING

1. Scheduling Software 3. Critical Path Method (CPM)
2. Gantt Charts 4. Resource Leveling

WORKING CONDITIONS
1. Temperature and Humidity 4. Noise and Vibrations
2. Ventilation 5. Work Time and Work Breaks
3. Illumination 6. Occupational Health Care
7. Safety

PROCESS CHART SYMBOLS

1. Operation 3. Storage
2. Transportation 4. Delay
5. Inspection

DIFFERENT TECHNIQUES IN MOTION STUDY

1. Motion Study Principles
2. Analysis of Therbligs
3. Micromotion Study
4. Charts

HIERARCHY OF DECISIONS IN PRODUCTION OPERATIONS

1. Long-term Capacity Planning
2. Aggregate Planning
3. Material Requirements Planning
4. Capacity Requirements Planning
5. Scheduling