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Midterm Study Guide

by: Emily McIlhattan

Midterm Study Guide MGMT 361

Marketplace > Purdue University > Music > MGMT 361 > Midterm Study Guide
Emily McIlhattan
GPA 3.72
Operational Management
Pengyi Shi

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About this Document

This study guide would be super helpful for the conceptual questions and I have included relevant questions that were asked on exams in the past!
Operational Management
Pengyi Shi
Study Guide
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This 4 page Study Guide was uploaded by Emily McIlhattan on Thursday March 5, 2015. The Study Guide belongs to MGMT 361 at Purdue University taught by Pengyi Shi in Winter2015. Since its upload, it has received 670 views. For similar materials see Operational Management in Music at Purdue University.


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Date Created: 03/05/15
MGMT 361 Module 1 Three Major Parts of Operations 1 All business create a salable product 2 Product is made by transforming inputs into outputs nal product 3 Operations function manages this transformation process 0 Operations manages people technology equipment materials and information to producedeliver goods and services impacts performance 0 Core competencies essential capabilities that create a rms sustainable competitive advantage built up over time and can not easily be imitated Relevant Question A key difference between the production of goods and performance of services is Services generally can t be stored 1 Job shop process production of small batches of a large number of different products most of which require a unique set of sequence of processing steps Products may be customized High varietyvery low volume Relevant Question Which of the following is most likely to be a job shop process Surgery on patients 2 Batch process process which has a relatively stable line of products each of which is produced in periodic batches either to customer order or to forecast Routings are usually standardized Medium variety medium volume Relevant Question Which of the following is most likely to be a batch process 0 Baking cookies also seen answer be Kristen s cookie 3 Assembly line Process production of discrete units in high volume xed routings Product may be standard or made from standard modules low variety high volume 4 Continuous process production in which products ow continuously rather than being divided Equipment is sequences according to the steps involved in producing the product and set ups are seldom changed super low variety super high volume Relevant Question Process can be classi ed as 0 Job shop batch assembly or continuous Time Series Forecasts past history is best predictor of the future 1 Na39ive Method actual demand from period 1 forecast for period 2 when you don t have a lot of data 2 Simple Average uses all the history of demands to generate the forecast for the next period Relevant Question Which of the following is the least useful sales forecasting model to use when sales are increasing Simpe Average 3 Simple Moving Average uses only the n MOST recent period demands to generate forecast for the next period treats each of the n most recent demands equally in generating the forecast 4 Weighted Average weights each of the n most recent demands possibly differently in generating the forecasts for the next period biggest weight to most recent month 5 Exponential Smoothing tells you how to assign the weight importance of data declines smoothly Responsiveness ability of forecast to respond quickly to a true change in mean level demand permanent because you have to put more value on the most recent event small n for Moving Average large alpha for exponential 0 Stability ability of forecast to ignore random variation large n small alpha Forecasting FAQs 1 Individuals create too much variation so harder to predict forecasting than as a whole group 2 Forecasting demands for a month is more accurate than forecasting demand for a week 3 More recent data is easier to predict 4 Sales does not equal demand Process Flows lnputs raw materials and customers used in process but NOT incorporated into the outputs o WP work in process un nished inventories still cant be delivered to customers Relevant Question Which of the following would not generally be considered a reason for holding inventories Reducing ow rate SO reasons to hold inventories decoupling the dependent operation meeting anticipated demand hedging the risk of demand uncertainty 0 Resource stage capacity how many units a resource or stage can produce in a given time 0 Process capacity how many units can the entire process produce in a given time smallest resourcestage capacity 0 Capacity max number of units the resources can produce in a given time 1activity time 0 Activity time time it takes to process one unit by one resource 1process capacity Bottleneck resource with the smallest capacity or longest processing time process capacity 0 Designed CT 1process capacity measure how fast can a product be pop up form process 0 Minimum throughput time TPT how fast a unit goes through the entire process when the process is empty Two students 1 task 1 Find capacity of each student 2 add capacities together Stage capacity 0 Stage CT 1stage capacity Line balancing increase the process capcity with the same number of workers by reaocating tasks from bottleneck resources to non bottleneck resources grouping tasks so that the activity time for each resource will be more or less the same Q4 HW2 Direct labor cost total wages process capacity 0 ldle time cycle time activity time Q3 HW 2 Demand rate how many customers will arrive in one hour 0 Supply constrained process capacity lt demand rate not enough to meet demand Relevant Question For a supplyconstrained process that produces a single type of product we can always claim that The actual CT designed CT If the demand rate of a process is greater than the capacity The number ofjobs will keep increasing 0 Demand constrained process gt demand more than what the customer needs 0 Flow rate smaller between process capacity or demand rate 0 Actual CT 1FR Utilization measures how busy each stage or resource is can never be more than 100 0 Stage utilization FRstage capacity 0 Process utilization FR process capacity Design parameters what a process can achieve Run Time parameters current process performance under a speci c customer demand schedule values change demand GAN39IT CHART 0 FR arrival rate 0 Actual CT interarrival time how long you need to wait average between two customer departures Flow time average time to go through the entire process average throughput time can maintain waiting time quothow long a customer spends in the systemquot Little s Formula demand rate ltor process capacity 0 WlP FT Actual CT or FTFR WlP work in process number of ow units contained within the process ie number of customers waiting for service Batch Production Baking Cookies 0 Production batch collection of units products customers etc that are processed before the resource needs to go through another setup 0 Cookies 0 Finish multiple units during a batch 0 Start of a new batch needs new setup Capacity given batch size set up time time per unit Capacity of resourceprocess increases with batch size Largest possible capacity can be achieved When setup time 0 or is eliminated 1activity time Other Question A key difference between the production of goods and the performance of services is Services can not be stored is when the activities in the stage must stop because there is not place to deposit the item job just completed Blocking


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