How can performance cycle variance be controlled




















Element d is machine The continuous stopwatch timing method was used to obtain the observed times for a worker-machine task. The data are recorded in the table below.

The times listed indicate the stopwatch reading at the end of the element For a worker-machine task, the continuous-timing method was used to obtain the times indicated in the table below. Element c is a machine-controlled element and the time is constant. Elements a, b, d, and e are operator-controlled and were The work element times for a repetitive work cycle are listed in the table below, as determined in a direct time study using the snapback timing method.

Elements a and b are operator-controlled. Element c is a machine-controlled element and its time Create an Account and Get the Solution.

Log into your existing Transtutors account. Have an account already? Click here to Login. No Account Yet? Click here to Sign Up. Sign in with Facebook. Copy and paste your question here Well designed and operated logistical system can help firms to achieve competitive advantage.

Describe the fundamental similarities and differences between procurement, manufacturing support and customer-accommodation performance cycles as they relate to logistical control. Procurement performance cycles consist of the many activities that maintain the flow of materials, parts, or finished goods into a manufacturing or distribution facility.

The scope of procurement activities is limited. Although similar to the customer order processing cycle, shipments are generally larger and cycles often require much more time. Maintaining raw materials inventory is sometimes less expensive relative to finished goods, since time of delivery and material security is often less sensitive into facility than out to the customer.

Another difference is that the number of suppliers of a firm is generally less than the number of customers, making the procurement cycle more direct. Manufacturing support performance cycles serve as the logistics of production. These functions maintain orderly and economic flow of materials and work-in-process inventory to support production schedules. The goal is to support manufacturing requirements in the most efficient manner.

These are internal cycles to the firm, thus they are rarely affected by behavioral uncertainty. Customer-accommodation performance cycles are those associated with processing and delivering customer orders. They link the customers through timely and economical product availability. Physical distribution integrates marketing and manufacturing efforts.

To improve the effectiveness of the distribution system, forecast accuracy must improve to reduce uncertainty. In addition to the value of sound forecasting methods, the firm must emphasize flexibility and responsiveness to deal with the uncertainty of customers in the physical distribution cycle.

Discuss uncertainty as it relates to the overall logistical performance cycle. Discuss and illustrate how performance cycle variance can be controlled. One of the major objectives of logistical management is to reduce the uncertainty in performance cycles. To control variance, the firm must conform expected cycle time to actual cycle time. If cycle time is less than expected, the delivered product becomes inventory to be stored. If the cycle time is longer than expected, then the firm must rely on safety stocks to satisfy customer demand.

In either case there are costs associated with variance. The ides is to eliminate variance by equating actual cycle time to the expected cycle time.

This may require adjustments in product flows into or out of the organization. Challenge questions 1. How has transportation cost, as a percentage of total logistics cost, tracked since , when transportation was deregulated? How did you explain this trend? The transportation costs as a percentage of total logistics costs in US have increased over the last 20 years. In , the percentage was approximately 47 percent and this has increased to over 63 percent in Therefore transportation represents a significant portion of the overall logistics cost.

Students should recognize that during this time companies have made significant improvements in managing inventories and thus inventory as a percentage of total cost has decreased dramatically.

Why is least total cost performance not always what a customer prefers? Illustrate a situation that supports your answer? With the increase in the global nature of the business today, the complexity of the logistics network and expectation from customer have increased tremendously. Cost is only one of the several parameters for evaluating the logistics options.

Some of the other factors are speed of delivery, consistency, reliability and flexibility.



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