Differentiate among product layout, process layout, cellular layout, and fixed-position layout. State the advantages and disadvantages of each.
A Process layout refers to a design in which companies group similar activities within a workstation irrespective of the products that come out of the work stations. The main advantage of this layout is that it makes use of economies of scale. It creates specialization, is highly flexible, and improves human resources. Its disadvantages include resource inefficiency and increased material handling costs. Product layouts refer to the arrangement of activities in line with the sequence of operations needed to make a certain product.
The advantages include efficiency in resource use and extensive usability while the disadvantages include inflexibility and handling of small amounts of products. The fixed-position layout refers to an arrangement in which administrators take the workers, equipment, and materials to a location. Its advantages include low fixed-costs, preservation of delicate or heavy tools, and specialization of workers while the disadvantages include high variable costs during movement of resources and inflexibility.
Lastly, cellular layouts refer to arrangements in which individuals place different machines in cells that contain parts with similar processing requirements. The advantages of such an approach are the ease of control and reduced transit and handling time. Its disadvantages include the need for high investments in capital and extensive training among workers.
Differentiate between a “flow blocking delay” and a “lack of work delay.” How can each be reduced?
The lack of work delay occurs when a certain production stage has already completed the processing of certain units and has sent it to the next unit, but no other unit is available to engage it. This can be reduced by providing a buffer capacity for every stage. On the other hand, a flow blocking delay occurs when a production stage has already completed a servicing process but cannot work on another product because it is unable to release the completed product to the next work stage. This occurs when the next work stage has another item. It can be reduced by increasing storage capacity for each stage of work (Tempelmeier, 2006).
Explain assembly line balancing. Discuss the three types of information needed to balance an assembly line.
Assembly-line balancing refers to the technique of grouping tasks within workstations such that every workstation has equal amounts of work. The aim is to have an amount of throughput that can meet sales commitments and reduce operating costs. It can be done by reducing workstation numbers or maximizing production rates. The three types of information needed to balance assembly lines include the tasks to be carried out and the time needed to perform each. Secondly, the sequence and precedence that each of the tasks should be given are crucial, and their relationship to each other. Lastly, one must know the output rate or the forecasted demand for the concerned assembly line.
Explain the role of ergonomics in job design
Ergonomics is indispensable in job design because it assists in the removal of psychological, physiological, biological, and anatomical conditions that may lead to poor health, fatigue, and discomfort among the workers. For instance, one might consider the number of times one worker may need to perform repetitive tasks and thus think of ways to reduce that in the job design. He or she may redistribute tasks to other employees or substitute human effort with machines. Alternatively, one may think about the safety conditions that can be instated to minimize these challenges.
Explain the difference between a supply chain and a value chain
The main difference between the supply chain and the value chain is that the former focuses on the movement of materials or processes from the supply base to the customer; in other words, there is an upstream trend. On the other hand, a value chain focuses on adding value through the customer’s perspective; the customer is the apex of the system and it has a downstream trend. Other differences include the fact that a value chain is part of a supply chain but not vice versa. Additionally, value chains use systematic approaches to competitive advantage while supply chains allocate different roles to dissimilar organizational departments such as purchasing, warehousing, and distribution (Collier & Evans, 2010).
Explain the difference between an efficient and a responsive supply chain, and the business context for which each works best
A responsive supply chain is one that easily adjusts to market demands through low set up costs, short lead times, and small batches. An efficient supply chain is one that helps organizations to create pieces inexpensively through extended lead times, bulk production, and sometimes elevated system rates. The responsive supply chain is suitable for industries that have high growth rates or those that are just starting. It is also appropriate for those companies that have large varieties of products and high uncertainty in product demand or technological use. An efficient supply chain would be appropriate for those firms with low industry growth rates and low uncertainty of technological use. They also work for firms that have low product variety and low demand.
Explain the importance of the bullwhip effect. What can managers do to reduce it?
The bullwhip effect refers to greater swings in inventory owing to alterations in demand of the product within the supply chain. The bullwhip effect necessitates the need for greater safety stocks. It causes inefficiencies in the distribution channel utilization as well as excessive inventory, which emanates from the need to meet the demands of predecessors within the supply chain. The bullwhip effect may also create a stock-outs and thus dissatisfied clientele.
Sometimes a company may have to hire and dismiss employees based on these demand fluctuations. Organizations must work on managing their supply chains in a way that helps them to meet the demands of every period. The aim should be the minimization of variability, lead times, and uncertainty through better information sharing, smoothening product flows, elimination of regular incentives such as daily low prices, just in time management, and the use of vendor-managed inventory.
Differentiate between a push system and a pull system. Include the advantages of each
The pull system focuses on the customer’s order as the guiding point of inventory control. For instance, in the just-in-time system, individuals keep just enough stock to meet consumer demand. In the push system, businesses forecast customer demand and use it as a basis for inventory control. The organization then sells or pushes the forecasted products to the customer. The main advantage of the pull system is that it reduces excess inventory. Companies do not need to have excess storage capacities or they do not incur costs in handling and storage of unnecessary goods. In the push system, companies can enjoy the advantage of always having enough inventory to meet consumer demands (Dettmer & Patterson, 1999).
Define the Theory of Constraints (TOC). How does TOC view throughput differently from the traditional OM perspective?
The theory of constraints is a decision-making technique in which a company determines the performance of its system through its constraints. Constraints may be market-based, resource-based, policy-based, or dummy-based. It differs from the traditional perspective because throughput consists of the sold units in TOC while, in the traditional dimension, only output matters; no focus is given to unsold products.
References
Collier, D. & Evans, J. (2010). Operations management. NY: McGraw-Hill.
Dettmer, E. & Patterson, J. (1999). Supply chain management at warp speed. Boca Raton: CRC press.
Tempelmeier, H. (2006). Inventory management in supply networks: problems, models, solutions. Norderstedt: Books on Demand.