Exam 1 study guide
Exam 1 study guide MGSC 395
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This 5 page Study Guide was uploaded by Joe Wise on Wednesday February 17, 2016. The Study Guide belongs to MGSC 395 at University of South Carolina taught by Ahire in Summer 2015. Since its upload, it has received 48 views. For similar materials see Operations Management in Business, management at University of South Carolina.
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Date Created: 02/17/16
Chapter 1 GSCOM involves designing products and services to support business and marketing strategy while implementing and improving processes to maximize efficiency. Really GSCOM is just about giving the customers what they want as best as possible. Operations management is the design and control of the processes, both internal and external, that turn raw materials into products and services and get them into the hands of the customers. A process is any activity or combination of activities that turns inputs into outputs for customers. An operation is a group of resources that performs an activity or part of an activity. Supply chain management is the synchronization of the flow of materials and information with customer demand. The operations of a business work in collaboration with the marketing and finance to get the inputs needed and get the outputs to customers. The inputs that go into operations can include all the labor, raw materials, land, equipment, and energy required to make outputs. Every process and person in a business has customers and suppliers. Customers and suppliers can be internal or external to the business. Processes exist on a spectrum between manufacturing and service. Manufacturing process produce physical outputs that can be measured and inventoried. Manufacturing process have less contact with customers and longer response times. Service processes are more intangible are harder to measure the quality of. They have more contact with customers and shorter response times. Manufacturing process are capital intensive while service processes are labor intensive. Supply chain processes are business processes that deal with external customers and suppliers. Market analysis is the process by which businesses find out what the customers want and figure out how to supply it. Competitive priorities are the vital aspects that a process must possess to satisfy its customers. Competitive capabilities are the cost, quality, time, and flexibility that processes can actually deliver. Order winners are the criteria that customers use to determine which product or service to purchase. These include Product cost Consistency quality Level of quality Delivery speed Delivery timing Research and development speed Customizability Variety The maximization of productivity is one of the goals of GSCOM. Productivity is calculated as output/input. So to calculate multifactor productivity just divide total output by total input. Labor productivity is calculated as (units produced)/(labor hours). Crayola video Operations and supply chain management is important at Crayola for ensuring that Crayola produces quality products efficiently without harm to the environment. The five principles of sourcing, manufacturing, and distributing products at Crayola are Cost Innovation Quality and ethical responsibility Sustainability Resilience and agility These principles allow Crayola to compete in an increasingly global economy. Crayola prides itself in its superior color selection, innovation, and quality. Chapter 2 Process strategy is the strategy that with which processes are managed to achieve competitive priorities. Processes involve taking inputs, transforming the resources into outputs. Service processes involve contact with customers. To improve customer contact a business must consider Contact intensity Personal attention Method of delivery Physical presence Service processes can also alter customization and flow of the process to improve it. Customer contact decreases as you move from the front office to the back office of a business, meaning customization and interaction with customers also decreases. Manufacturing process structure is the way and amount of products that are produced. Job process is a type of process with high customization potential but low volume of production where products are produced on a job by job basis. This process is for products that need flexible and customizable production. Batch process is where batches of products are produced at a time. These batches can vary in size, but there is little to no variation within a single batch. Line process is where products are produced continuously by stage, usually in an assembly line. Continuousflow process is where there is a continuous flow of products being produced at any given time. This process allows less customization and variation but also very high volumes to be produced quickly. Process strategy decides the levels of customer involvement, resource flexibility, and capital intensity that a process will contain. Process analysis is how business assess their process and how they can be improved. The six sigma process improvement model is made up of 5 steps 1. Define 2. Measure 3. Analyze 4. Improve 5. Control A flowchart is a chart that tracks the flow of information, customers, equipment, and resources through processes at each step. Flow charts also help track individual parties and resources throughout a process to identify which steps can be collapsed and executed simultaneously. Annual costs of a process can be calculated by multiplying (time to perform process)(variable costs per hour)(number of times process is performed per year). Chapter 3 Quality and a reputation of quality come with many costs. There are costs for preventing defects, for detecting defects, for fixing defects, for reaching and responding to customers in a timely manner, and many other processes that must be executed for quality products and services to be produced. The six sigma process model seeks to keep accuracy high and variability low. A common way of tracking this is with R charts and xx charts. These charts track the variability and accuracy of a process, respectively. On both charts the x axis is time so the processes can be traced over time. In an R chart the range of a sample of data from the process is on the y axis. For the xx chart the y axis is the actual value of whatever is being measured about the process. In the xx chart the values are based on the average vale, or xx. There is also an upper and lower range showing whether the sample taken is good or not. The upper range is found by multiplying the xx by the average range and adding it to xx while the lower range is found by multiplying xx by the average range and subtracting it from xx. The R chart is similar but the variability is being measured instead of the average. Upper range of the R chart is found by multiplying the average range by the D value found in the chart below in the “factor for UCL for Rchart” column (the D value depends on the sample size). The lower range is found by doing the same thing with the D value from the “factor for LCL for Rchart” column. Chapter 7 Recall project mapping at the beginning of the semester where a flow chart is drawn with a circle for every activity with arrows pointing from predecessors to successors. With each circle containing the following information Where EST stands for earliest start time, EFT is earliest finish time, LST is latest start time, and LFT is latest finish time. These are found by going through the flow chart forwards to find the earliest start and finish times for each activity and then going through backwards to find the latest start and finish times for each activity it be finished on time. Every critical activity will have the same earliest and latest start times and the same earliest and latest finish times. The slack of an activity is the difference between the earliest and latest start times. Slack represents how much time can be wasted on a certain activity without adding time to the completion of the entire process. Activities with 0 slack are critical tasks. Some activities can be crashed sometimes, meaning they can be completed faster at an additional cost. When crashing activities, only activities that are critical should be crashed, and the critical task with the smallest crash cost per time should be crashed first. When crashing projects, the following should be done 1. Find critical path 2. Calculate crash cost per time for each critical activity. This is found by taking (decrease in time from normal to crash time)/(increase in price from normal to crash price) or (normal timecrash time)/(crash costnormal cost) 3. Calculate how much money will be saved by shortening the total process map by one unit of time. This is found by (variable cost per day)+(penalty for taking one more day). This penalty for taking one more day may be framed as a reward for taking one less day, but this is the same idea and should be applied in the same way. 4. Compare the money saved from shortening the process by one unit of time in the cheapest way possible with the amount of money spent crashing the process down one unit of time. If the cost of crashing is less than the money saved by crashing, continue crashing by one unit of time using this process until the cost of crashing is greater than the savings of crashing. Make sure to draw out the process map each step. 5. Calculate the total cost of the process. This should be the minimum total cost schedule that the process can be performed with if the above steps were done correctly.
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