OPERATIONS AND SUPPLY CHAIN MANAGEMENT – WGU WITH WITH BEST SOLUTIONS

OPERATIONS AND SUPPLY CHAIN
MANAGEMENT – WGU WITH WITH BEST
SOLUTIONS
Throughput - the maximum rate of output possible in the current system
Theory of Constraints 5-step thinking process: - a. Identify the system's constraints
b. Exploit the system's constraint
c. Subordinate everything else to the above decision
d. Elevate the system's constraint
e. If a constraint has been broken, go back to step 1. Do not allow inertia to cause a
systems constraint
Facility location - the placement of a facility with regards to a company's customers,
suppliers, and other facilities with which the company interacts.
Quantitative factors - are easily measurable and are usually assigned a numerical value
Process selection - determining the most appropriate method of completing a task. It is
a series of decisions that include technical or engineering issues and volume or scale
issues. There is a strong relationship among process selection and volume, cost, and
profit.
Capacity - is a measure of an organization's ability to sustainably provide customers
with the demand services or goods in the amount requested and in a timely manner.
Capacity planning - very important because large amounts of capital are usually
required to build the facilities and purchase the equipment to build capacity
System capacity - the ability of an overall organization to produce a sufficient number of
goods and services to meet the demands of customers, considering both its strongest
and weakest production points
Product oriented layout - characterized by high demand for the same or similar product.
Few, if any, product variations, and the layout fits the dominant flow of the product
Process-oriented layout - characterized by the production of many different products
with the same equipment and low volume of any individual product
Design capacity - the maximum achievable output of a process or system
Effective capacity - the maximum capacity given the product mix, equipment
changeovers, and scheduled downtime of the production schedule.
Capacity utilization - is a metric used to determine how much capacity is actually being
used on an average basis. Actual speed/design capacity
Efficiency - actual output/effective capacity
Qualitative factors - are more subjective and are usually not enumerated
Regional facility strategy - requires that each production facility has a defined marketing
area and each facility produces a complete line of products for that area.
Product facility strategy - one facility is responsible for producing one product or product
line and shipping that product throughout the country and world.