Fast-reading version, 7 chapters on 18 pages

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Fast-reading version, 7 chapters on 18 pages

Chapter 1: Supply chain management and logistics

Cycle time: equals the total time required to complete the total process from

raw materials to the delivery of the finished product to the customer

Logistics: part of the supply chain process that plans, implements, and

controls the efficient, effective flow and storage of goods, service and related information from the point of origin to the point of consumption in order to meet customer’s requirements -Planning of transport -Planning of production -Selecting third logistics party -Estimation of number of returned goods -Estimation of number of goods to be produced -Estimation of inventory of products necessary

Objective: expression that maximises or minimises some goal

-Maximise quantity to be produced -Maximise profit -Minimise costs -Minimise cycle times Constraints: restrictions that limit the degree to which an manager can pursue an objective -Total waiting time < 1 hour -Total inventory < 100 units -Occupancy degree > 0.90

Efficiency: do the job right at;

-Minimal investments and costs -And utilisation rates and throughput times

Effectiveness: do the job right;

-Right products -Right time -Right customers -Right quality -Right quantity

Single factor productivity:

Input factor: labour, capital, management

Multi factor productivity: 2 / 3

Chapter 2: Process analysis

If a production/service time follows a normal distribution Normal(µ,σ) then -The mean equals µ -The standard deviation equals σ -The probability that a production time falls between µ-σ and µ+σ is 68% -The probability that a production time falls between µ-2σ and µ+2σ is 95% Alternatives to find an estimate for a certain performance measure (such as production speed, or waiting time of customers) -Educated guess (deterministic performance estimation) -Experimentation with the real system -Experimentation with physical models (on scale or full-size) -Experimentation (or calculating) with analytical models (mathematical, statistical, etc.) -Experimentation with simulation models Mean

Interarrival time: time between two subsequent arrivals of products at their

entrance in the process Arrival rate: number of products that arrive per time

unit (e.g. number of products that arrive per hour)

Throughput time: time that passes between the moment at which the

customer/product enters the system and the moment at which the customer/product is ready -Deterministic throughput times can be estimated by adding up the expected processing times of the different processes Step to solve a question with multiple paths 1.Estimate deterministic throughput time for one of the paths 2.Multiply resulting deterministic throughput time with probability that the path will be followed 3.Repeat 1 and 2 until all paths are handled 4.Total deterministic throughput time is sum of results of step 2 for all paths Design capacity: theoretical maximum output of a system or process in a given period

Effective capacity: capacity that can be expected given the product mix,

methods of scheduling, maintenance and standards of quality Is design capacity sufficient to handle the expected number of products that arrive at the various processes?

1.Calculate design capacity of each process 2.Calculate the expected number of products arriving at that process (use percentages in systems with multiple paths) 3.Compare answers step 1 and 2 S t a n d a r d

d e v i a t i

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