Sustainability Concepts Quiz
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Questions and Answers

What is the main goal of sustainable development?

  • Focus on industrial growth over environmental health
  • Maximize resource consumption for immediate needs
  • Meet current needs without compromising future generations (correct)
  • Minimize costs while increasing profits

Which of these practices represents 'True Sustainability'?

  • Offering a green product line without operational changes
  • Reducing emissions to net-zero and enforcing fair labor practices (correct)
  • Using greenwashing techniques to boost public image
  • Promoting recyclable packaging while relying on fossil fuels

What is a key feature of the circular economy?

  • Producing more goods with lower costs
  • Designing products for reuse, recycling, and repair (correct)
  • Moving from modular to disposable product designs
  • Prioritizing profits over reducing waste

What is a primary focus of social sustainability?

<p>Ensuring fair labor practices and community support (D)</p> Signup and view all the answers

What does a Life Cycle Assessment (LCA) evaluate?

<p>A product’s environmental impact from raw material extraction to disposal (A)</p> Signup and view all the answers

What strategy has Apple implemented for a low-carbon economy?

<p>Shifting transport from air to sea and rail freight (B)</p> Signup and view all the answers

Which area of sustainability does Apple’s Supplier Code of Conduct focus on?

<p>Employee rights and labor practices (C)</p> Signup and view all the answers

Which of the following is NOT a goal associated with sustainability?

<p>Maximizing resources for immediate corporate profit (B)</p> Signup and view all the answers

What is the primary benefit of laser welding in manufacturing?

<p>It improves quality beyond customer expectations. (D)</p> Signup and view all the answers

Which principle is core to the Kanban system in Lean Management?

<p>Reducing waiting time by controlling material flow. (D)</p> Signup and view all the answers

What is necessary for an accurate comparison of the environmental impacts of different vehicles?

<p>Examining the full life cycle from sourcing to disposal. (A)</p> Signup and view all the answers

Which statement best defines the concept of 'Circular Economy'?

<p>Efforts to extend the life of materials and products. (A)</p> Signup and view all the answers

Which of the following is NOT a logistics decarbonization strategy?

<p>Splitting loads into more trips for increased speed. (A)</p> Signup and view all the answers

What is least likely to effectively reduce CO2 emissions in personal transportation?

<p>Walking rather than cycling to nearby locations. (A)</p> Signup and view all the answers

Which of the following describes the embedded view on sustainability?

<p>Businesses must operate within the limits of societal and environmental constraints. (B)</p> Signup and view all the answers

Which economic sector produced the lowest greenhouse gas emissions in 2020 according to U.S. data?

<p>Agriculture. (A)</p> Signup and view all the answers

What characterizes a firm that outsources production to developing countries?

<p>It is profitable but not sustainable. (D)</p> Signup and view all the answers

How can companies and societies enhance sustainability?

<p>By ensuring efficient operations. (D)</p> Signup and view all the answers

Which of the following defines a value-added activity?

<p>Installing iOS software on iPhones (D)</p> Signup and view all the answers

What is the primary goal of implementing a Just-In-Time (JIT) production system?

<p>To produce only what is needed, when it’s needed (B)</p> Signup and view all the answers

Identifying and minimizing which type of activity is crucial in Lean Management?

<p>Non-value-added activities (B)</p> Signup and view all the answers

Which of the following is an accurate representation of Cycle Time in Lean Management?

<p>Time taken to produce a single unit (B)</p> Signup and view all the answers

What best describes throughput time in a production system?

<p>Time taken to complete a process from start to finish (B)</p> Signup and view all the answers

Which approach best reduces excess inventory in production?

<p>Implementing a Just-In-Time (JIT) system (A)</p> Signup and view all the answers

Which challenge is commonly associated with Just-In-Time (JIT) production?

<p>Increased reliance on suppliers and timing accuracy (C)</p> Signup and view all the answers

What is the primary purpose of process flow charting in production?

<p>To reveal production steps and identify inefficiencies (D)</p> Signup and view all the answers

What does a high inventory turnover rate best signify?

<p>Effective management of supply chain dynamics (C)</p> Signup and view all the answers

Which formula is representative of Little’s Law?

<p>WIP = Throughput Rate × Throughput Time (B)</p> Signup and view all the answers

Which of the following actions is NOT considered one of the 7 wastes in Lean Management?

<p>Excessive repairs (C)</p> Signup and view all the answers

What does the concept of continuous improvement in Business Process Management (BPM) prioritize?

<p>Ongoing, incremental enhancements (D)</p> Signup and view all the answers

What is a common consequence of implementing a JIT system?

<p>Production delays due to supply issues (B)</p> Signup and view all the answers

What is the net benefit of on-demand production?

<p>Minimizing excess production and storage (B)</p> Signup and view all the answers

What is the primary benefit of implementing fair labor practices in sustainability?

<p>Ensuring long-term social equity (A)</p> Signup and view all the answers

Which of the following is a primary goal of clean production?

<p>Reducing consumption of natural resources (D)</p> Signup and view all the answers

What is a significant advantage of adopting circular economy initiatives?

<p>Promoting long-term resource efficiency (D)</p> Signup and view all the answers

What defines carbon neutrality?

<p>Achieving net-zero carbon emissions (C)</p> Signup and view all the answers

Which practice is essential for enhancing supplier collaboration in sustainability?

<p>Joint strategy development for sustainable practices (D)</p> Signup and view all the answers

What represents a key challenge in achieving social sustainability?

<p>Balancing profit maximization with social equity (A)</p> Signup and view all the answers

What is the main focus of demand management in a low-carbon economy?

<p>Reducing transportation requirements (A)</p> Signup and view all the answers

What does modular design primarily aim to achieve?

<p>Facilitating easy component replacement (C)</p> Signup and view all the answers

Why is it important to address emissions in relation to profitability?

<p>Long-term sustainability requires balancing current profits with reduced emissions (B)</p> Signup and view all the answers

Which phase of the product lifecycle typically contributes the most to carbon emissions?

<p>Raw material extraction (C)</p> Signup and view all the answers

What is a critical factor in achieving energy-efficient product designs?

<p>Utilizing sustainable materials (C)</p> Signup and view all the answers

Which concept does ‘dematerialization’ support in sustainability?

<p>Reducing material usage without sacrificing quality (D)</p> Signup and view all the answers

What role does Value-Stream Mapping play in Lean Management?

<p>Identifying unnecessary workflows (C)</p> Signup and view all the answers

What is a common misconception about profitability in relation to sustainability?

<p>Profitability absolves companies from environmental responsibilities (C)</p> Signup and view all the answers

What is the primary goal of optimizing processes in Operations Management?

<p>Creating value for customers and stakeholders (B)</p> Signup and view all the answers

What does a 'Push System' primarily focus on in operations?

<p>Forecasting demand and producing in advance (C)</p> Signup and view all the answers

Which concept in the 4V principle primarily relates to production efficiency?

<p>Volume (B)</p> Signup and view all the answers

In the context of Operations Performance, which dimension is most closely associated with reliability?

<p>Dependability (C)</p> Signup and view all the answers

Which of the following is an example of an input in the Input-Transformation-Output model in operations?

<p>Raw materials (B)</p> Signup and view all the answers

What does the term 'diminishing marginal returns' imply in the context of operations?

<p>Declining efficiency after a certain point of production (A)</p> Signup and view all the answers

Which operational strategy prioritizes reducing excess inventory to improve efficiency?

<p>Just-in-Time (JIT) (C)</p> Signup and view all the answers

Which method is considered a non-value-adding activity in production?

<p>Transporting goods between stages (D)</p> Signup and view all the answers

What does the concept of 'flexibility' in operations indicate?

<p>The capability to adjust production based on market demand (D)</p> Signup and view all the answers

Which stage is crucial in the early process of improving operations?

<p>Eliminating inefficiencies (A)</p> Signup and view all the answers

What does 'Quality' measure within Operations Performance?

<p>Consistency of production over time (C)</p> Signup and view all the answers

What principle is employed to balance costs with performance in operations?

<p>Cost-Performance Trade-Off (D)</p> Signup and view all the answers

What does the term 'systemized' imply in high-volume production?

<p>Production is repetitive and consistent (B)</p> Signup and view all the answers

What is a possible outcome when operations exhibit low flexibility?

<p>Inability to meet changing demand (B)</p> Signup and view all the answers

What is the primary reason for maintaining a buffer against demand fluctuations in production?

<p>To ensure a buffer against demand fluctuations and prevent stockouts. (C)</p> Signup and view all the answers

How is 'Cycle Time' fundamentally defined?

<p>The successive time between the completion of two units. (B)</p> Signup and view all the answers

What does a 'Value Stream Map' primarily facilitate in lean management?

<p>To visualize all stages of production and identify areas of waste. (A)</p> Signup and view all the answers

What does 'Throughput Rate' indicate in a production context?

<p>The maximum rate at which a process delivers outputs. (C)</p> Signup and view all the answers

What is 'Set-up Time' related to in production processes?

<p>The time needed for machine adjustments when switching products. (D)</p> Signup and view all the answers

How is 'Work-in-Process Inventory' (WIP) best described?

<p>The number of units currently being processed. (C)</p> Signup and view all the answers

What aspect does 'Throughput Time' measure in lean management?

<p>The total time required from start to finish of a unit. (D)</p> Signup and view all the answers

Which statement best characterizes 'Lean Management'?

<p>Eliminating waste while ensuring value-added activities flow smoothly. (D)</p> Signup and view all the answers

What is the main goal of Poka-Yoke in lean practices?

<p>To use methods that prevent errors or make them obvious. (A)</p> Signup and view all the answers

What does SMED (Single Minute Exchange of Die) aim to achieve?

<p>To minimize tool changeover time and reduce delays. (C)</p> Signup and view all the answers

What advantage does reducing batch sizes offer in lean management?

<p>It allows for increased flexibility and reduced cycle times. (C)</p> Signup and view all the answers

What is the key focus of line balancing in lean management?

<p>Ensuring workstations meet the required takt time. (D)</p> Signup and view all the answers

What does layout improvement in lean management facilitate?

<p>Reducing transportation time between operational stations. (B)</p> Signup and view all the answers

Which of the following are effective waste-reduction approaches in lean management?

<p>Working with local suppliers to reduce transportation time. (A), Inspecting quality during production to minimize rework efforts. (B), Producing multiple vehicles on the same line to deliver flexibility. (C)</p> Signup and view all the answers

Which characteristic is most representative of a product layout in a manufacturing environment?

<p>It arranges workstations and equipment in a linear sequence to facilitate the production of standardized products. (A)</p> Signup and view all the answers

Which situation is likely to result in an expansion of the efficient frontier in operations management?

<p>Adoption of more flexible manufacturing processes. (C)</p> Signup and view all the answers

What are the commonly recognized objectives in operations management?

<p>Cost, Quality, and Flexibility. (D)</p> Signup and view all the answers

What is a notable disadvantage of a functional (process) layout?

<p>It often results in higher material handling costs and lower facility utilization due to the movement of products between different departments. (C)</p> Signup and view all the answers

Which statement best describes the concept of cross-docking in supply chain management?

<p>Receiving goods, sorting them, and immediately shipping them out without long-term storage. (C)</p> Signup and view all the answers

Which of the following is not a recognized method for forecasting in operations management?

<p>Trial and Error (D)</p> Signup and view all the answers

Which scenario best illustrates the principle of postponement in operations management?

<p>A clothing manufacturer delays dyeing garments until customer orders specify the desired color. (D)</p> Signup and view all the answers

How can one differentiate between planning and control in operations management?

<p>Planning sets long-term objectives, while control ensures those objectives are met in real-time. (D)</p> Signup and view all the answers

What is a common challenge associated with forecasting in operations management?

<p>Forecasts are often subject to variability and uncertainty, especially when relying on historical data. (A)</p> Signup and view all the answers

Which strategy is commonly used to reconcile capacity and demand in operations management?

<p>Using flexible labor to align workforce capacity with production needs. (A)</p> Signup and view all the answers

Which potential effect can arise from inaccurate forecasting in operations management?

<p>Excess inventory, leading to higher holding costs and potential obsolescence. (A)</p> Signup and view all the answers

What is a key reason companies maintain inventory in their supply chain?

<p>To ensure a buffer against demand fluctuations and prevent stockouts. (C)</p> Signup and view all the answers

Which layout is best suited for a manufacturing environment that requires high customization?

<p>Functional layout. (D)</p> Signup and view all the answers

Which method is effective for improving forecast accuracy?

<p>Incorporating both quantitative and qualitative approaches. (B)</p> Signup and view all the answers

What is the best approach to improve production efficiency?

<p>Cutting non-essential processes (B)</p> Signup and view all the answers

What is production lead time primarily concerned with?

<p>The duration from order placement to product delivery (C)</p> Signup and view all the answers

Which scenario illustrates stochastic demand?

<p>Ice cream sales fluctuating due to weather (C)</p> Signup and view all the answers

Which of the following is a key benefit of demand-driven production?

<p>Customized production reduces waste (B)</p> Signup and view all the answers

What does inventory turnover specifically measure?

<p>The ratio of total demand to average inventory (B)</p> Signup and view all the answers

What defines a 'Level Capacity' strategy in capacity management?

<p>Using inventory to handle demand peaks while maintaining steady production (A)</p> Signup and view all the answers

What is the main function of safety stock?

<p>To protect against demand variability and supply delays (C)</p> Signup and view all the answers

What does the EOQ model help to determine?

<p>Optimal order quantity to minimize total costs (C)</p> Signup and view all the answers

What does low inventory turnover typically suggest?

<p>Inventory is moving slowly or overstocked (A)</p> Signup and view all the answers

How is the Customer Order Decoupling Point (CODP) best described?

<p>The point separating forecast-driven production from demand-driven production (B)</p> Signup and view all the answers

What is the consequence of high variation in demand?

<p>Increased unpredictability and higher costs (A)</p> Signup and view all the answers

Which metric is most suitable for assessing the operational performance of a hospital?

<p>Average patient waiting time in the emergency department (A)</p> Signup and view all the answers

Which scenario represents a conflict between operations management objectives?

<p>A company increases the speed of production, which results in a higher defect rate (A)</p> Signup and view all the answers

Which of the following best illustrates a fixed-position layout?

<p>The construction of a ship where workers and equipment are brought to the ship, which remains stationary (D)</p> Signup and view all the answers

How is the efficient frontier represented in operations management?

<p>A curve representing the optimal combination of cost and performance achievable given resources (C)</p> Signup and view all the answers

Flashcards

Sustainable Development

Meeting the needs of the present without compromising the ability of future generations to meet their own needs.

True Sustainability

Combines environmental protection, social equity, and economic viability for long-term well-being.

Circular Economy

A model where resources are kept in use for as long as possible, minimizing waste and pollution.

Social Sustainability

Focuses on fair labor practices, community well-being, and equitable access to resources.

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Life Cycle Assessment (LCA)

Evaluates the environmental impact of a product throughout its entire lifecycle, from raw material extraction to disposal.

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Low-Carbon Economy

Aims to reduce greenhouse gas emissions, often through transportation and energy efficiency improvements.

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Supplier Code of Conduct

A set of ethical guidelines dictating how companies expect their suppliers to operate, often covering labor conditions and environmental standards.

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Apple's Transportation Strategy

Shifting from air to sea and rail transport for goods movement to lower carbon emissions.

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Clean Production

Manufacturing processes that minimize waste and environmental impact by reducing harmful chemicals and emissions.

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Demand Management

Strategies to influence consumer behavior and reduce transportation needs by shortening supply chains.

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Triple Bottom Line

A framework for sustainability that considers economic, environmental, and social performance.

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Carbon Neutrality

A state where a company or activity offsets its carbon emissions with actions like planting trees or investing in renewable energy.

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Modular Design

Creating products with interchangeable components that can be easily repaired or upgraded.

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Supplier Collaboration

Working with suppliers to align their practices with your company's sustainability goals, ensuring ethical sourcing and environmental responsibility.

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Dematerialization

Reducing material usage in products without compromising quality or performance.

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Product Lifecycle

All stages of a product's journey, from raw material extraction to disposal, including manufacturing, distribution, and use.

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Lean Management

A philosophy that aims to minimize waste and maximize value for customers by streamlining processes and eliminating unnecessary activities.

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Little's Law

A formula (WIP = TH * CT) relating work-in-process (WIP), throughput (TH), and cycle time (CT) in a production system.

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Value Stream Mapping

A tool that visually identifies all steps involved in a product's journey, helping to spot unnecessary activities and waste.

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Waste Reduction

Identifying and eliminating any unnecessary activities or materials in a production process, including overproduction, defects, and waiting time.

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Just-in-Time (JIT)

A production strategy that focuses on ordering and receiving materials only when needed, reducing inventory costs and waste.

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Value-added activity

A process that directly contributes to the value of a product or service from the customer's perspective.

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Non-value-added activity

A process that consumes resources but doesn't add value for the customer.

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Just-In-Time (JIT) production

A production system where goods are produced only when needed, minimizing waste and inventory.

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Over-processing

Performing unnecessary or excessive work on a product, adding cost without value.

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Bottlenecks in production

Points in the production process that slow down the overall flow due to limitations.

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Cycle time

The time taken to produce one unit of a product from start to finish.

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Throughput time

The total time a product spends in the entire production system, from raw material to finished goods.

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Process flow charting

A visual representation of the steps involved in a process, highlighting potential bottlenecks and inefficiencies.

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Inventory turnover

A measure of how quickly inventory is sold and replaced within a specific period.

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Continuous improvement

An ongoing process of making incremental changes and improvements to processes and workflows.

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7 wastes in Lean Management

Overproduction, waiting, transportation, inventory, motion, defects, and over-processing.

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Production on demand

Producing goods only when a customer order is received, minimizing excess inventory.

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Risks of JIT production

Increased dependency on suppliers, potential delays due to disruptions, and difficulty in handling demand fluctuations.

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Operations Management (OM)

The process of optimizing and managing resources to produce goods or services efficiently and effectively.

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Input-Transformation-Output (ITO) model

Represents the flow of raw materials, processes, and finished goods in production.

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4V Principle

Describes four key factors influencing operations: Volume, Variety, Variation, and Visibility.

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Operations Performance

Measures how well an operation is performing based on factors like cost, speed, quality, and dependability.

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Cost-Performance Trade-Off

Balancing effort (cost) and achievement (performance) to find the optimal outcome.

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Diminishing Marginal Returns

As more effort or resources are added, the gains in performance decrease.

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High-Volume Production

Production of large quantities of standardized products using highly repetitive and predictable processes.

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Flexibility in Operations

The ability to adapt to changes in customer demands and adjust production accordingly.

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Operations Performance Evaluation

A process of measuring various dimensions of operations performance to identify strengths and areas for improvement.

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Streamline Stage in Process Improvement

Focusing on simplifying and streamlining processes to eliminate wasteful non-value-adding activities.

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Just-in-Case (JIC)

A production strategy that keeps extra inventory on hand to avoid potential disruption to production.

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Economic Order Quantity (EOQ)

A calculation that determines the optimal quantity of inventory to order to minimize overall inventory costs.

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Push System

A production strategy that involves pushing products through the production process based on forecasts and planned demand.

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Production Lead Time

The time it takes from when an order is placed to when the product is delivered to the customer.

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Stochastic Demand

Demand that is unpredictable and varies randomly over time.

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Demand-Driven Production

A production method where products are only made when they are ordered.

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Level Capacity Strategy

Maintaining a steady production rate while using inventory to handle demand peaks.

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Safety Stock

Extra inventory held to protect against unpredictable demand or supply delays.

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EOQ (Economic Order Quantity)

The optimal order quantity that minimizes total costs related to ordering and holding inventory.

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Low Inventory Turnover

Indicates that inventory is moving slowly or there is overstocking.

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CODP (Customer Order Decoupling Point)

The point in the production process where the company shifts from producing based on forecasts to producing based on customer orders.

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High Demand Variation

Frequent and unpredictable changes in demand, leading to increased costs and unpredictability.

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Operations Management Performance

Evaluating how well a company's operational processes meet its goals.

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Conflict in Operations Management Objectives

When pursuing one objective compromises another, creating a trade-off.

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Fixed-Position Layout

A layout where the product or service remains in a fixed location while workers and equipment move around it.

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Efficient Frontier in Operations Management

A curve representing the best possible combination of cost and performance that a company can achieve.

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Improving Production Lead Time

Reducing the time it takes for a product to be delivered from order placement.

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Laser Welding in Manufacturing

A technique used to reinforce manual welding, improving product quality beyond customer expectations.

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Kanban System in Lean Management

A system focused on controlling the flow of materials to reduce waiting time and improve efficiency.

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Full Life Cycle Assessment (LCA)

Evaluating a product's environmental impact from raw material extraction to final disposal.

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Logistics Decarbonization Strategy

Strategies to reduce carbon emissions in transportation by shifting to more sustainable modes.

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Embedded View on Sustainability

Recognizing that businesses must operate within social and environmental limits.

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Outsourcing Production: Profit vs. Sustainability

Outsourcing production to developing countries can be profitable but unsustainable.

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Operating More Efficiently for Sustainability

Improving efficiency in business operations leads to more sustainable practices.

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Key Principle of Kanban System

Reducing waiting time by controlling the flow of materials.

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Why Full Life Cycle Assessment is Important

To ensure a fair comparison between products by considering their entire environmental impact.

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Product Layout

A manufacturing layout where workstations and equipment are arranged in a linear sequence for efficient production of standardized products. This layout focuses on minimizing movement and maximizing efficiency for high-volume, repetitive tasks.

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Efficient Frontier in Operations

The optimal combination of operational goals, such as cost, quality, and flexibility, that maximizes overall performance. Expanding the frontier means finding new ways to achieve better results across these goals.

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Common Objectives in Operations Management

Primary goals in operations management include flexibility (adapting to changes), cost (minimizing expenses), and quality (meeting standards).

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Functional Layout Disadvantage

While flexible for handling diverse products, a functional layout (grouping similar activities) can lead to increased material handling costs and lower facility utilization due to products moving between departments.

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Cross-Docking in Supply Chain

A distribution strategy where incoming goods are immediately sorted and shipped to their final destinations without long-term storage. This aims to reduce lead times and inventory holding costs.

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Forecasting Methods in Operations

Common techniques for predicting future demand include moving average (averaging past data), exponential smoothing (weighing recent data more), and Delphi method (expert consensus). 'Trial and Error' is not a valid forecasting method.

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Postponement in Operations

Delaying product customization or finalization until customer orders are received, allowing for greater responsiveness to specific needs and reducing inventory risks.

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Planning vs. Control in Operations

Planning involves setting long-term goals and strategies, while control focuses on ensuring those goals are achieved through monitoring and adjustments in real-time.

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Forecasting Challenges

Forecasts are inherently uncertain and subject to variability, especially when relying on historical data. Unexpected events can significantly affect accuracy.

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Reconciling Capacity and Demand

Common strategies for matching production capacity with fluctuating demand include using flexible labor (e.g., temporary workers) to adjust workforce size.

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Inaccurate Forecasting Impacts

Overestimating demand can result in excess inventory, leading to higher holding costs and potential obsolescence.

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Inventory Maintenance Purpose

Companies hold inventory to create a buffer against demand fluctuations and prevent stockouts, ensuring product availability for customers.

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Buffer Stock

Extra inventory kept on hand to handle unexpected demand fluctuations and avoid stockouts.

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Average Calls Handled

The number of customer service calls being actively worked on at any given time.

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What is Cycle Time?

The time between completing two consecutive units in a production process.

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Value Stream Map Purpose

To visually track the entire production process, identifying waste and opportunities for improvement.

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What is Setup Time?

The time needed to prepare machines for switching between different product types.

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Work-in-Process Inventory

The number of units currently being processed in the production system.

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What is Throughput Time?

The total time it takes for a unit to go from start to finish in the production system.

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What is Lean Management?

A philosophy focused on maximizing value for the customer by eliminating waste and streamlining production.

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Poka-Yoke Objective

To prevent errors from happening or make them instantly obvious when they occur.

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Goal of SMED

To drastically minimize the time needed to switch between making different products.

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Benefit of Smaller Batches

Reduced cycle times and increased flexibility in the production process.

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Line Balancing in Lean

Ensuring all workstations work at the same pace, avoiding bottlenecks and delays.

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Layout Improvement Purpose

To reduce transportation time and waste by optimizing the layout of production stations.

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Waste Reduction Approaches (Multiple)

Various strategies aimed at minimizing waste in production, such as working with local suppliers, producing multiple vehicles on the same line, inspecting for quality during production (preventing rework), and using small batches.

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Study Notes

Sustainable Development

  • Goal: Meet current needs without compromising future generations.

Sustainability Practices

  • True Sustainability: Reducing emissions to net-zero and enforcing fair labor practices.

Circular Economy

  • Feature: Designing products for reuse, recycling, and repair.

Social Sustainability

  • Focus: Ensuring fair labor practices and community support.

Life Cycle Assessment (LCA)

  • Evaluation: A product's environmental impact from raw material extraction to disposal.

Apple's Sustainability Strategies

  • Low-carbon economy strategy: Shifting transport from air to sea and rail freight.
  • Supplier Code of Conduct: Focuses on fair labor practices and worker rights.

Clean Production

  • Benefit: Reducing harmful chemicals and emissions during manufacturing.

Demand Management (Low-Carbon Economy)

  • Aim: Reducing shipment needs by shortening supply chains.

Profitability and Sustainability

  • Tension: Balancing short-term profits with long-term environmental goals.

Triple Bottom Line

  • Components: Economic, environmental, and social performance.

Environmental Sustainability

  • Alignment: Shifting to renewable energy sources for production.

Carbon Neutrality

  • Meaning: Producing as much carbon as is removed from the atmosphere.

Circular Economy Challenges

  • Difficulty: Balancing long-term resource efficiency with initial costs.

Modular Design

  • Feature: Ensuring components can be replaced or upgraded.

Supplier Collaboration

  • Importance: Aligning production processes with sustainability goals.

Social Sustainability (Example)

  • Action: Improving working conditions for employees.

Dematerialization

  • Aim: Reducing material usage without compromising product quality.

Product Lifecycle (Carbon Intensity)

  • Most Carbon-intensive phase: Raw material extraction.

Apple's Supply Chain Sustainability

  • Strategy: Investing in renewable energy projects for suppliers.

Lean Principles

  • Focus: Minimizing waste while delivering value to customers.

Little's Law

  • WIP: Work-in-Process.

Value-Stream Mapping

  • Purpose: Identifying non-value-added and value-added activities.

Value-Added Activities

  • Example: Installing iOS software on iPhones.

Just-In-Time (JIT) Production

  • Goal: Producing only what is needed, when it's needed.

Lean Challenges and Measurement

  • JIT Challenges: Higher dependency on suppliers and precise timing.

Cycle Time

  • Measurement: The time taken to produce a single unit.

Process Flow Charting

  • Purpose: Visualizing production steps and identifying bottlenecks.

On-Demand Production

  • Advantage: Reducing overproduction and excess inventory.

Lean Production (Primary Objective)

  • Focus: Continuous improvement and customer value.

Overproduction Waste

  • Example: Producing more units than currently demanded.

Throughput Time

  • Measurement: The total time taken to complete a process from start to finish.

Seven Wastes

  • Examples: Overproduction, waiting, transportation ; not Cost Of Goods Sold

Just-in-Time (JIT) Benefit

  • Benefit: Ensures production based on actual customer demand.

Little's Law Formula

  • Formula: WIP = Throughput Rate × Throughput Time.

High Inventory Turnover

  • Indication: Products are moving quickly through the supply chain.

Continuous Improvement (BPM)

  • Focus: Incremental, ongoing enhancements to processes and workflows.

Just-in-Time (JIT) Risk

  • Risk: Production delays due to supply disruptions.

Minimal Holding Costs

  • Inventory Management Method: Just-in-Time (JIT)

Operations Management (OM)

  • Objective: Optimizing processes to create value.

OM Functions

  • Key functions: Planning, organizing, staffing.

Input-Transformation-Output (ITO) Model

  • Representation: Flow of materials and resources in production.

4V Principle

  • Variety: Range of products/services offered.

Operations Performance

  • Dimension: Quality.

Input Example

  • Example: Raw materials.

Volume (4V Principle)

  • Description: Quantity of goods/services produced.

High Variety

  • Description: Wide range of customized products.

Low Visibility in Operations

  • Advantage: Reduced production costs.

Dependability (Operations Performance)

  • Definition: Delivering products/services on time.

Cost-Performance Trade-Off

  • Definition: Balancing effort (cost) and achievement (performance).

Effort Example

  • Example: Investing in skilled labor and materials.

Diminishing Marginal Returns

  • Description: Gains reduce as more effort/resources are added after a certain point.

Process Improvement Stages

  • First stage: Eliminating inefficiencies.

Flexibility (Operations Performance)

  • Measurement: Adapting range, mix, and volume to customer needs.

Operations Performance Evaluation

  • Purpose: Measuring dimensions like cost, speed, and dependability.

Non-Value-Adding Activity

  • Example: Transportation between production stages.

Systemized Production

  • Characteristic: Highly repetitive and predictable production processes.

Low Flexibility in Operations

  • Effect: Inability to adapt to demand changes.

Production Lead Time

  • Definition: Duration from order placement to product delivery.

stochastic demand

  • Example; ice cream sales fluctuating due to weather.

Demand-Driven Production

  • Advantage: Customized production reduces waste.

Inventory Turnover

  • Measurement: Ratio of total demand to average inventory.

Level Capacity Strategy

  • Action: Using inventory to handle demand peaks.

Safety Stock

  • Purpose: Protecting against demand variability and supply delays.

Economic Order Quantity (EOQ)

  • Calculation: Optimal order quantity to minimize total costs.

Low Inventory Turnover indication

  • Indication: Inventory is moving slowly or overstocked.

Customer Order Decoupling Point (CODP)

  • Definition: Point separating forecast-driven from demand-driven production.

High Demand Variation Effect

  • Effect: Increased unpredictability and higher costs.

Hospital Operations Metrics

  • Relevant Metric: Average patient waiting time in the emergency department.

Operations Management Conflicts

  • Example: Increased production speed leading to a higher defect rate.

Fixed-Position Layout

  • Example: Ship construction.

Efficient Frontier

  • Definition: Optimal combination of cost and performance given resources.

Product Layout

  • Arrangement: Linear sequence of workstations for standardized products.

Efficient Frontier Expansion

  • Factor: Adoption of more flexible manufacturing processes.

Operations Management Objectives

  • Objectives: Flexibility, cost, quality.

Functional (Process) Layout Disadvantage

  • Disadvantage: Higher material handling costs and lower facility utilization due to movement between departments.

Cross-Docking

  • Description: Receiving, sorting, and shipping goods without storage.

Forecasting Methods

  • Examples: Moving Average, Exponential Smoothing, Delphi Method ; not Trial and Error.

Postponement

  • Example: Dyeing garments until order received.

Planning vs. Control

  • Distinction: Planning sets objectives, control ensures they are met.

Forecasting Challenges

  • Issue: Variability and uncertainty in forecasts.

Capacity-Demand Reconciliation

  • Strategy: Using flexible labor (e.g., labor agencies).

Inaccurate Forecasting Effects

  • Effect: Excess inventory, leading to higher holding costs and potential obsolescence.

Inventory Reasons

  • Purpose: Buffer against demand fluctuations and stockouts.

Call Center Average Handling Time

  • Calculation: Average handling time = (simple calls time * percentage simple + complex calls time * percentage complex).

Value Stream Map Purpose

  • Purpose: Visualizing production stages and waste identification.

Throughput Rate

  • Definition: Maximum rate of output from a process.

Set-up Time

  • Definition: Time to prepare machines for different products.

Work-in-Process (WIP)

  • Definition: Units currently being processed in the production system.

Throughput Time (Production Lead Time)

  • Measurement: Time a unit takes from start to finish.

Lean Management Definition

  • Definition: Eliminating waste and ensuring value-added activities smooth.

Poka-Yoke

  • Purpose: Error-proofing processes.

SMED

  • Goal: Reducing tool changeover time.

Reduced Batch Size Benefits

  • Benefits: Reduced cycle times, more flexibility.

Line Balancing

  • Purpose: Ensuring all workstations meet takt time in Lean.

Layout Improvement

  • Aim: Reducing transportation time between workstations.

Kanban System

  • Principle: Controlling material flow to reduce waiting time.

Environmental Impact Comparison

  • Requirement: Full life cycle assessment from raw materials to disposal.

Circular Economy Definition

  • Definition: Extending the life of materials and products.

Logistics Decarbonization Strategies

  • Examples: Shifting freight from air to road; localizing systems; phasing out fossil fuels.

Personal Transportation CO2 Reduction

  • Examples: Train travel, public transport, carpooling.

Embedded View on Sustainability

  • Description: Business within societal, and societal within environmental limitations.

Low CO2 Emissions Sector

  • Sector: Agriculture.

Unsustainable Profitable Outsourcing

  • Example: Outsourcing to developing countries.

Sustainable Actions

  • Approach: Operating more efficiently.

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Description

Test your knowledge on key concepts and practices related to sustainable development. This quiz covers essential topics such as true sustainability, circular economy, and social sustainability. Explore how major companies, like Apple, approach sustainability through their practices.

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