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49 Cards in this Set
- Front
- Back
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Examples of Projects
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Constructing facilities and buildings, developing a military weapons system, constructing an oil pipeline.
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Characteristics of Projects
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Non repetitive, one of a kind, subject to high uncertainty.
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key person involved in Project Management
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Project Manager
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Project Team Characteristics
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Cross functional team, consisting of a group of individuals selected from other areas in the organization or from outside the organization because of their special skills.
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What is Work Breakdown structure (WBS)
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A tool for Project Planning.
Project - Modules/components - activites - individual tasks. Project categories - Hardware, software/system, personnel |
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Gantt Chart
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Also called the "bar chart"
Is a graph with a bar representing time for each activity in the project being analyzed. |
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Slack definition, Advantage of slack
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Allows resources to be temporarily diverted from activities with slack towards more critical activities / activities being delayed.
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CPM/PERT
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Critical Path - longest path in the N/W, project cannot be completed in less time than the time required by the critical path, minimum completion time of the project.
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EF=ES+t ; LS+LF-t
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Forward pass
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Is used to calculate earliest started and finish times
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Backward Pass
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Is used to calculate latest start and finish times
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ES = Max of EF immediate predecesors
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LF = Minimum of LS immediate successor activities
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For activities on critical path ES = EF and LS = LF and Slack = 0
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Activities on critical path cannot be delayed at all. If any activity on critical path delayed, overall project is delayed
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Probabilistic activity times can be described by beta distribution
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Mean Beta Distribution
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(A+4m+B)/6
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Total Project Variance
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Sum of Variances of activities on critical path
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Project crashing definition
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-Indirect Cost increases as project duration increases
-Crashing cost increases as project duration is reduced -Optimal project time is the one at minimum cost |
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Objective / Role of inventory
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Is to keep enough inventory to meet customer demand and also be cost effective.
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What is ordering cost?
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Dollars to place one order increases with the number of orders
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What is carrying cost?
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Is the dollars per unit per year which increase with the number of units stored or carried
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Components of ordering cost and carrying cost
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Facility storage, material handling, labor, record keeping, borrowing to purchase inventory, Product deterioration, spoilage, breakage, obsolescence, pilferage
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Ordering cost react inversely to carrying costs
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As the size of orders increases, fewer orders are required, reducing ordering costs. However, ordering larger amounts results in higher inventory levels and higher carrying costs. In general, as the order size increases, ordering costs decrease and carrying costs increase.
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Uncertainty in inventory is caused due to..
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Poor Quality on the part of the company or its suppliers or both. This is seen in delivery times, uncertain production schedules caused by late deliveries, or a large number of defects that require higher levels of production or service than what should be necessary, large fluctuations in customer demand or poor forecasts or customer demand.
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Types of Inventory
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Raw Material
Work In Progress (WIP) Finished Goods Pipeline |
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Purpose of Inventory Management
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How much inventory to keep in stock.
How much to order and when to replenish or order |
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Dependent demand items?
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Are typically component parts or materials used in the process of producing a final product.
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Independent Demand Items?
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Are final or finished products that are not a function of, or dependent on, internal production activity.
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Inventory Control System
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Continuous - a continual record of inventory levels for every item is maintained. When ever the inventory on hand decreases to a certain predetermined level (reorder point) a new order is placed to replenish the stock of inventory
Periodic Inventory System The inventory on hand is counted at specific time intervals (week, month), After that amount is determined each order brings it back to that level. There is much less control of inventory in this method |
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ABC Classification
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Is a method for classifying inventory in which a small percentage of (A) items (10%) account for most of the inventory value (80%).
B Items - 30% of inventory / 15% of value C Items - 50-60% of inventory / 5-10% of value |
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What is EOQ? Where is it used?
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Economic Order Quantity - is used to determine the optimal order size that minimizes the sum of carrying costs and ordering costs.
P.g 536 |
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Quantity Discounts
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Is a price discount on an item if predetermined numbers of units are ordered.
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Reorder Point
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The determinant of when to order in a continuous inventory system
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Importance and advantages of Accurate forecasting
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More stable and uniform production, less inventory needed, less uncertainty, higher quality, more responsiveness, reduced bull whip effect
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Bull whip effect
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Occurs when a slight variation to demand activity becomes magnified up the supply chain.
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Short to medium Forecasting
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Daily, weekly, monthly, yearly, up to two years
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Long Term Forecasting
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For more than two years
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Demand Behavior
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Random Variations - are not predictable and have no pattern.
Seasonality - an oscillating movement in demand that occurs periodically, sometimes weather related. Trend - a gradual, long term up or down movement of demand. Cycle - and up and down movement in demand that repeats itself over a lengthy time span. |
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Short to medium Forecasting
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Daily, weekly, monthly, yearly, up to two years
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Long Term Forecasting
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For more than two years
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Demand Behavior
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Random Variations - are not predictable and have no pattern.
Seasonality - an oscillating movement in demand that occurs periodically, sometimes weather related. Trend - a gradual, long term up or down movement of demand. Cycle - and up and down movement in demand that repeats itself over a lengthy time span. |
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Quantitative Forecasting Method
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Qualitative Forecasting Method
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Time Series Forecasting
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Moving Average, Weighted Moving Average, Exponential smoothing forecasts
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What is adjusted exponential smoothing forecast
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Exponential smoothed forecasting adjusted for trend
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Six Elements of Lean Manufacturing
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Flexible Resources
Cellular Layouts Pull systems Kanbans Small Lots Quick setups Uniform production levels Quality at the source Total productive maintenance Supplier Networks |
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Kanbans
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Contains basic information such as part number, brief description, unit load ect.
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Pull System
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Is an inventory in which workers only take the parts they need and can process immediately. There is no excess output
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Cellular Layouts
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Cells group dissimilar machines together to process a family of parts with similar shapes or processing requirements. It resembles a small assembly line and is usually in a U-Shape.
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