Page 226 - DMGT501_OPERATIONS_MANAGEMENT

Operations Management

Notes Engineer to Order (ETO): Engineer to order is to provide unique products that have not been
previously engineered.
Flexible Manufacturing System: Flexible manufacturing system is a manufacturing system that
consists of a number of CNC machine tools and a materials handling system that is controlled by
one or more dedicated computers.
Lead Time: It is the interval between the start and end of an activity or series of activities. It
measures the firm’s responsiveness, quickness, and reliability.

Make to Order (MTO): Make to order products are made from previously engineered designs,
but only are made after an order has been received.

Make to Stock (MTS): Make to Stock is when a seller stocks inventories of previously made
products for purchase whenever the customer arrives.

Manufacturing Cell: Manufacturing cell is a self-sufficient unit, in which all operations to make a
‘family’ of parts, components or complete products can be carried out.

Manufacturing Flexibility: Manufacturing flexibility is the ability of a manufacturing system to
respond, at a reasonable cost and at an appropriate speed, to planned and unanticipated changes
in external and internal environments.
Modifying Processes: These processes modify the physical characteristics of materials upon
which labor or operations are performed.

Process Improvement: Process improvement is the systematic study of the activities and flows of
each process to improve it.
Process: A process is any part of an organization that takes inputs and transforms them into
outputs.
Synthetic Processes: A synthetic process combines basic parts into larger products e.g.
manufacture of automobiles, radios, televisions, etc.

7.9 Self Assessment

Fill in the blanks:
1. A ..................... is any part of an organization that takes inputs and transforms them into
outputs.

2. ..................... refers to a storage area where the output of a stage is placed before being used
in a downstream stage.
3. ..................... is when a seller stocks inventories of previously made products for purchase
whenever the customer arrives.
4. ..................... products are standard items that are assembled from in-stock subassemblies.
5. Engineer to order is to provide ..................... that have not been previously engineered.
State whether the following statements are true or false:

6. Lead Time is the interval between the start and end of an activity or series of activities. It

measures the firm’s responsiveness, quickness, and reliability.
7. Buffering allows the stages to operate independently

8. A single-stage process normally requires to be buffered internally if the processes are not
continuous.

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