Operations Management (Fach) / Definitions (Lektion)

definitions

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• Capacity the maximum level of value-added activity over a period of time that the process can achieve under normal operating conditions
• long-term capacity management the set of decisions that determine the level of physical capacity of an operation in whatever the operation considers to be long-term; this will vary between industries but is usually in excess of one year
• aggregated planning and control a term used to indicate medium-term capacity planning that aggregates different products and services together in order to get a broad view of demand and capacity
• Design capacity a theoretical capacity determined by maximum capability (e.g. of technology), often greater than effective capacity.
• Effective Capacity residual capacity when taking into account losses (setups, maintenance etc)
• Efficiency ratio of actual output to effective capacity
• Utilization ratio of actual output against design capacity
• Overall Equipment Effectiveness (OEE) A method of judging the effectiveness of operations equipment based on time (availability rate a), quality (quality rate q) and speed (performance rate p). It is calculated by multiplying a, p and q.
• Loading Time (LT) Duration planned to run
• Total Operating Time (TOT) Loading time less availability loss (setups, changeover, breakdown, failure)
• Net Operating Time (NOT) Total operating time less speed losses (idling equipment, slow running equipment)
• Valuable Operating Time (VOT) Net operating time less quality losses
• availability rate (a) total operating time (TOT) divided by loading time (LT)
• performance rate (p) Net operating time (NOT) divided by Total operating time (TOT)
• quality rate (q) valuable operating time (VOT) divided by Net operating time (NOT)
• Level Capacity Plan An approach to medium-term capacity management that attempts to keep activitty levels constant, irrespective of fluctuations in demand
• Chase Demand Plan An approach to medium-term capacity management that attempts to adjust capacity to reflect fluctuations in demand
• Demand management An approach to medium-term capacity management that attempts to change demand to fit available capacity
• Arrival Variability Customers do not all want service at the same time or at times necessarily convenient for the company
• Request Variability Customers want different things
• Capability Variability Customers don't have the same skills, knowledge and physical abilities
• Effort Variability Customers don't have the same willingness or motivation to perform tasks.
• Personal Preference variability customers evaluate things differently, have different opinions on the service experience.
• Service Strategy Triad containing target market, service concept and service delivery system design with service experience in the middle
• project process Processes that deal with highly customised products, have long time scales (with a defined start and end), activities may change and transforming resources are organised for each product
• Jobbing Processes Processes that deal with highly customised products, low repetition may occur, products share the operation's resources, higher volume  than project processes and although products need the same kind of attention, each differs in terms of exact processing needs.
• Batch Processes Processes that treat batches of products together which may have a wide range of volume and variety, in some periods operations may be repetitive
• Mass Process Processes that produce goods in high volume and a narrow variety, operations are repetitive and predictable
• Continuous process Processes that have higher volume and less variety than mass processes, they operate for longer periods of time, products may be inseparable (continuous flow), associated with inflexible capital intensive technologies
• Professional services Service processes that involve high customer contact and high customisation, customers spend a long time in the process, front office staff is given a high degree of discretion, as it usually is knowledge- or advice-based, it is people-based and not equipment based.
• Mass Services Service processes that have high volume and little customisation, that are product oriented and predominantly equipment based and staff have set procedures or a division of labour
• Service Shops Service processes that are positioned between professional and mass services and that include a mix of front and back office, a mix of people and equipment and a mix of process and product.
• Systems thinking the process of understanding how things, regarded as systems, influence one another within a whole. a system is something composed of parts but which adds up to more than just these parts
• Lean the endless transformation of waste into value from the customer's perspective
• lean thinking accelerating the velocity of any process by doing only the things that add customer value and eliminating other activities that don't (waste)
• value-adding activity an activity that the customer is willing to pay for, that increases the form or function of the product or service and that must be done correctly the first time
• Ohno's 7 wastes over-production, transportation, motion, waiting, extra-processing, inventory and defects
• Lean 5 S sort, straighten, scrub, standardise, sustain
• DMAIC define, measure, analyse, improve, control
• capacity lagging the strategy of planning capacity levels such that they are always less than or equal to forecast demand
• capacity leading the strategy of planning capacity levels such that they are always greater or equal to forecast demand
• Theory of Constraints (TOC) philosophy of operations management that focused attention on capacity constraints or bottleneck parts of an operation, uses software known as optimized production technology (OPT)
• materials requirement planning (MRP) a set of calculations embedded in a system that helps operations make volume and timing calculations for planning and control purposes
• Layout concerned with the physical location of transforming resources (machines, equipment, staff)
• Flow determines the way transformed resources (materials, information, customers) flow through the operation
• Fixed Position Layout transformed resources do not move between transforming resources, meaning that the product is stationary and the resources move to the product.
• Process Layout based on the convenience of the transofmring resources, meaning the products are grouped together and transformed resources flow through the operation according to their needs while similar transforming resources are located together. however, flow patterns may be very complex.
• Cell layout transformed resources are pre-selected or pre-grouped and all transforming resources are located to meet the processing needs. products move from cell to cell, which simplifies the complexities of flow
• product layout transforming resources are located for the convenience of the transformed resources which have predetermined routes and flow along a line.
• supply chain a linkage or strand of operations that provides goods and services through to end customers

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