This is a glossary of the chapters 4 capacity planning, H7 project management, Supplement B waiting lines, H9 inventory management, H10 operations planning and scheduling and H11 resource planning.
Begrippenlijst OPM
H4 Capacity Planning
Begrip Omschrijving/betekenis
Capacity Maximum rate of output of a process or system
Utilization The degree to which equipment, space, or the workforce is
currently being used, and is measured as the ratio of
average output rate to maximum capacity.
(expressed as a percentage)
Economies of scale A concept that states that the average unit cost of a service
or good can be reduced by increasing its output rate
Occurs when the average cost per unit increases as the
Diseconomies of scale facility’s size increases
The amount of reserve capacity a process uses to handle
Capacity cushions sudden increases in demand or temporary losses of
production capacity
Capacity requirement What a process’s capacity should be for some future time
period to meet the demand of customers (extern of intern),
given the firm’s desired capacity cushion.
Setup time The time required to change a process or an operation
from making one service or product to making another
Capacity gap Positive or negative difference between projected demand
and current capacity
Base case The act of doing nothing and losing orders from any
demand that exceeds current capacity, or incur costs
because capacity is too large
Cash flow The difference between the flows of funds into and out of
an organization over a period of time, including revenues,
costs, and changes in assets and liabilities
Supplement B Waiting Lines
Begrip Omschrijving/betekenis
Customer population An input that generates potential customers
Service facility A person (or crew), a machine (or group of machines), or
both, necessary to perform the service for the customer
Priority rule A rule that selects the next customer to be served by the
service facility
Service system The number of lines and the arrangement of the facilities
Channel One or more facilities required to perform a given service
Phase A single step in providing service
Preemptive discipline A rule that allows a customer of higher priority to interrupt
the service of another customer
Interarrival times The time between customer arrivals
Litte’s law Relates the number of customers in a waiting-line system to
the arrival rate and the waiting time of customers
Waiting line One ore more “customers” waiting for service
1
, Begrip Omschrijving/betekenis
Project Interrelated set of activities with a definite starting and
ending point, which results in a unique outcome for a
specific allocation of resources
Project management A systemized, phased approach to defining organizing,
monitoring, and controlling projects
WBS A statement of all work that has to be completed
Activity Smallest unit of work effort consuming both time and
resources that the project manager can schedule and
control
Precedence A relationship that determines a sequence for undertaking
relationship activities
Diagraming the network A visual display designed to depict the relationship between
activities, that consist of hodes (circles) and arcs (arrows)
PERT Program evaluation and review technique
CPM Critical path method,
The sequence of activities between a project’s start and
finish that takes the longest time to complete
Path The sequence of activities between a project’s start and
finish
Earliest start time (ES) Earliest finish time of the immediately preceding activity
Earliest finish time (EF) Activity’s earliest start time + estimated duration
Latest finish time (LF) The latest start time of the activity that immediately follows
Latest start time (LS) The latest finish time – estimated duration
Activity Slack Maximum length of time that an activity can be delayed
without delaying the entire project
Project crashing shortening some activities within a project reduce overall
project completion time and total project costs
Normal time (NT) Tijd die nodig is om een activiteit te doen onder normale
condities
Normal costs (NC) Activity cost gerelateerd met de normale tijd
Crash time (CT) Kortst mogelijke tijd om een activiteit te doen
Crash cost (CC) Activity cost gerelateerd met crash time
Minimum-cost schedule A schedule determined by starting with the normal time
schedule and crashing activities along the critical path, in
such way that the costs of crashing do not exceed the
savings in indirect and penalty costs
Risk-management plan A plan that identifies the key risks to a project success and
prescribes ways to circumvent them
Optimistic time (a) The shortest time in which an activity can be completed, if all
goes exceptionally well
Most likely time (m) The probable time required to perform an activity
Pessimistic time (b) The longest estimated time required to perform an activity
Close-out an activity that includes writing final reports, completing
remaining deliverables, and compiling the team’s
recommendations for improving the projects process
H7 Project Management
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