BA 341 1st EditionExam # 1 Study Guide Lectures: 1 - 5Lecture 1 (August 25th)Chapter 1 – IntroductionWhat is the difference between services and goods?- Services are intangible, produced and consumed simultaneously, unique, high customer interaction, inconsistent product definition, often knowledge based, the services are dispersed, quality may be hard to evaluate, and reselling is unusual. - Goods are tangible, product can usually be kept in inventory, similar products produced, limited customer involvement in production, product standardized, standard tangible product tends to make automation feasible, product typically produced at a fixed facility,many aspects of quality for tangible products are easy to evaluate and product often has some residual value.Lecture 2 (August 27th)Chapter 1Production – is the making of goods and servicesA fundamental measure of performance is productivity measures.- Partial productivity measures - - Total productivity measures - - Multifactor productivity measures - Lecture 3 (September 3rd)Chapter 7(S) - Capacity and Constraint Management & The GoalWhat is the goal of an organization?The goal of an organization is to make money.What are the concepts of bottleneck and constraint and their implications on system performance?A constraint is a variable where a significant improvement in local performance causes significant improvement in global performance. A bottleneck is any resource whose capacity isless than the demand placed on it. Improvement on the bottleneck for a system improves the entire systems performance because bottlenecks limit the systems output.What are the process performance metrics?- Process Time of a Station – the time needed to produce a single unit or a batch of units; the reciprocal of capacity- Process Time of a System – the time of the longest process in a system.- Process Cycle Time – the time it takes the product to go through the entire system from start to finish.- Utilization = Actual output/Design capacity- Efficiency = Actual output/Effective capacityLecture 4 (September 8th)Chapter 7(S)What are the performance measures?- Throughput which is the rate at which sales dollars (money) are entering the organization.- Inventory and investment which is all the money currently tied up inside the system. - Operating Expense which is all the money the system spends to turn inventory into throughputWhat is the Theory of Constraints and its 5 steps?The theory of constraints is a body of knowledge that deals with anything that limits an organizations ability to achieve its goals. The steps for the process of ongoing improvement are identify the constraint, decide how to exploit the constraint, subordinate all other decisions to the necessity to exploit the constraint, if after #2 and #3 more capacity is needed to meet demand then elevate the constraint, and lastly go back to #1, and don’t let inertia become the system’s constraint.Lecture 5 (September 10th)Go over the P&Q exercise example to fully understand the theory of
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