C215 > Terms/Definitions > Flashcards

Terms/Definitions Flashcards

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1
Q

What process was developed to stress management’s responsibility for quality?

A

Total Quality Management (TQM) process

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2
Q

What is a chase aggregate plan preferable for?

A

Producing custom or special purpose equipment, one-of-a-kind items, or highly perishable products

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3
Q

What does a chase aggregate plan do?

A

Changes workforce levels so that production matches demand

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4
Q

When should a company consider outsourcing its distribution?

A

When distribution is no longer a core function

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5
Q

What are two options for a company facing a sudden demand increase to 140%?

A
  • Hire temporary workers
  • Subcontract a portion of production capacity
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6
Q

What is a hybrid aggregate plan?

A

Combination of the level and chase strategies

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7
Q

What does a level aggregate plan maintain?

A

A constant workforce

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8
Q

What is the disadvantage of a level aggregate plan?

A

Builds inventory and/or uses back orders

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9
Q

What do appraisal costs include?

A
  • Quality inspections
  • Product testing
  • Audits to ensure quality standards
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10
Q

What are assignable causes of variation?

A

Causes that can be identified and resolved

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11
Q

What is backward scheduling?

A

Determines when the job must be started to be completed by the due date

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12
Q

What is a batch process?

A

Used to produce a small quantity of products in groups based on customer orders

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13
Q

What does behavioral feasibility of a job refer to?

A

Intrinsic satisfaction an employee derives from doing the job

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14
Q

What is a Bill of Material (BOM)?

A

A file used to determine the materials needed to build a product

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15
Q

What does a block plan show?

A

The placement of resources in a facility

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16
Q

What is a bottleneck in a flowchart?

A

The longest task in the process

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17
Q

What are budget projections?

A

Elements of a financial plan

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18
Q

What do Just-in-time (JIT) and lean systems aim to reduce?

A

Waste

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19
Q

What does C pk measure?

A

How close one is to a target and how consistent one is with average performance

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20
Q

What are capacity-based options?

A
  • Overtime
  • Undertime
  • Subcontracting
  • Hires
  • Fires
  • Part-timers or temps
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21
Q

What is the purpose of capacity planning?

A

To identify and plan actions necessary to meet current and future customer demands

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22
Q

What does capacity utilization measure?

A

How much of the available capacity is actually being used

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23
Q

What is the center-of-gravity approach used for?

A

To determine the optimal location for a new distribution center

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24
Q

What does breakeven analysis determine?

A

The units needed to manufacture in order to breakeven

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25
What does a checklist in quality management track?
Common defects and the number of observed occurrences
26
What does process velocity compute?
Throughput time/value-added time
27
What is conception in the project life cycle?
The first stage that identifies the need for a project
28
What factors are considered in conducting a location analysis?
* Proximity to sources of supply * Site consideration * Conformance to specifications
29
What is a control chart?
Graph that shows whether a sample of data falls within the common range of variation
30
What is the Delphi method?
A qualitative forecasting method to reach consensus among a group of experts
31
What are demand-based options?
Options that respond to demand fluctuations using inventory or back orders
32
What is dependent demand?
The demand for component parts based on the number of end items being produced
33
What is design capacity?
Maximum output rate attainable under ideal conditions
34
What is the difference between push and pull processes?
* Push: Moves product forward in anticipation of demand * Pull: Eliminates excessive inventory
35
What does economic feasibility of a job assess?
The value a job adds versus the cost of having the job done
36
What is effective capacity?
Maximum output rate under normal conditions, usually lower than design capacity
37
What does ERP stand for?
Enterprise Resource Planning
38
What is execution in the project life cycle?
Carrying out the activities that make up the project
39
What are external failure costs?
Costs associated with quality problems at the customer site
40
What is a feasibility analysis?
Evaluation of expected costs, benefits, and risks of a project
41
What are finished goods?
Completed goods from the manufacturing process that have not yet been sold
42
What is finite loading?
Scheduling that loads work centers up to a predetermined amount of capacity
43
What is fitness for use?
How well the product performs its intended function
44
What is a fixed-position layout?
A layout where the product cannot be moved due to its size
45
What does a flowchart show?
The sequence of steps in producing the product or service
46
What does forward scheduling determine?
The earliest possible completion date for a job
47
What is group technology in manufacturing?
Facilities responsible for specific processes
48
What do hiring and firing affect?
Long-term capacity adjustments
49
What is horizontal integration?
Acquiring another company in the same industry
50
What is a hybrid layout?
Combines characteristics of process and product layouts
51
What is group technology?
A company has a number of facilities, each responsible for a particular process. ## Footnote Example: one facility manufactures, and another provides servicing.
52
What does hiring and firing refer to in capacity management?
A long-term option for increasing or decreasing capacity by changing the size of the workforce.
53
What is horizontal integration?
A company acquires another company in the same industry. ## Footnote Example: Facebook acquisition of Instagram; T-Mobile merged with Sprint.
54
What is a hybrid layout?
Combines characteristics of process and product layouts, used in facilities where operations include both intermittent and repetitive processing systems.
55
What is independent demand?
The demand for finished products that does not depend on the demand for other products.
56
What is infinite loading?
Scheduling that calculates the capacity needed at work centers without regard to the capacity available.
57
What are internal failure costs?
Costs associated with discovering poor product quality before the product reaches the customer.
58
What is insourcing?
Processes or activities completed in-house, often critical to the company’s success.
59
What is ISO 9000?
Standards developed to establish agreement on international quality standards.
60
What does TQM stand for?
Total Quality Management, a process aimed at improving quality by eliminating causes of product defects.
61
What are the three major areas of ISO 14000?
* Management systems standards * Operations standards * Environmental systems standards
62
What is job design?
Specifies the work activities or contents of the job, independent of people.
63
What is job enlargement?
A horizontal expansion of the job through increasing the scope of the work assigned.
64
What is job rotation?
Workers shift to different jobs to increase understanding of the total process.
65
What is a Just-in-time (JIT) system?
A system that controls inventory levels to eliminate excess inventory.
66
What does Kaizen mean?
A Japanese term describing a company continually striving to improve through learning and problem solving.
67
What is a Kanban system?
A scheduling system for lean manufacturing that specifies the exact quantity of a product to be produced.
68
What is labor specialization?
A work system that acknowledges the benefits of employee proficiency.
69
What is layout planning?
Deciding on the best physical arrangement of all resources that consume space within a facility.
70
What are lean systems?
A business approach that applies lean principles to minimize waste without sacrificing productivity.
71
What does MRP stand for?
Material Requirements Planning, a system that calculates material requirements using MPS, inventory records, and BOM.
72
What is the objective of MRP?
To determine the quantity and timing of material requirements and keep schedule priorities updated.
73
What is outsourcing?
Processes or activities completed by suppliers, often for services not core to the company.
74
What is overtime in a work context?
Work beyond normal operation hours, typically requiring a wage premium.
75
What is the difference between a periodic review system and a perpetual review system?
* Periodic: physical verification at set intervals * Perpetual: constant updates after every transaction
76
What is the Plan–Do–Study–Act (PDSA) cycle?
Activities a company performs to incorporate continuous improvement in its operation.
77
What are prevention costs?
Costs incurred in preventing poor quality from occurring, including quality planning and employee training.
78
What is a process layout?
Groups similar activities together in departments based on the function they perform.
79
What is a product layout?
Arranges activities in a line according to the sequence of operations needed to assemble a product.
80
What is a project process?
Used to make a one-at-a-time product exactly to customer specifications.
81
What is the significance of proximity to customers in location decisions?
A major factor in deciding to locate a business near its primary market territory.
82
What does psychological criteria refer to in quality definition?
A subjective evaluation of what constitutes product or service excellence.
83
What are repetitive processes?
Used to produce one or few standardized products in high volume.
84
What does respect for people mean in JIT?
Considers human resources as an essential part of the JIT philosophy.
85
What is a scatter diagram?
Graphs that show how two variables are related to each other.
86
What is Six Sigma?
A methodology using technical tools to identify and eliminate quality problems.
87
What is the empirical rule in Six Sigma?
3 standard deviations represent 3 Sigma; 6 Sigma means almost 100% quality.
88
What is standard time?
The length of time to finish a task or complete work under optimal conditions.
89
What is subcontracting?
Letting another company do some work for you to provide additional output capacity.
90
What is the role of marketing in JIT?
Focuses on customer-driven quality and manages inventory levels to satisfy customer needs.
91
What is throughput time?
The time it takes from raw material to finished goods.
92
What are tier one suppliers?
Suppliers that provide materials directly to the processing facility.
93
What is the purpose of the master production schedule (MPS)?
To manage the demand for promised deliveries.
94
What is a tier three supplier?
A lumber company that provides wood to the paper mill and a chemical extraction plant supplying raw materials to the chemical processing plant ## Footnote Tier three suppliers typically provide materials to tier two suppliers.
95
What do tier two suppliers do?
They supply directly to tier one suppliers and serve many non-automotive customers ## Footnote Tier two suppliers do not produce automobile parts.
96
What is the primary purpose of using the master production schedule (MPS)?
To manage the demand for promised deliveries ## Footnote MPS outlines what and when to build.
97
What are the two areas managers should consider to adapt to business dynamics?
* Their control over internal operations * Their influence and leverage over suppliers
98
What are two common drawbacks of implementing an enterprise resource planning (ERP) solution?
* It takes a long time to implement and see benefits * It requires extensive, often complex, training
99
What are two reasons a company might hesitate to provide overtime as a capacity-based option?
* Overtime is not a long-term solution * Overtime typically incurs a 50% wage premium
100
What are two strategic objectives for every member of the supply chain?
* Increasing cost effectiveness * Becoming more efficient
101
How can management assist employees' focus in a just-in-time (JIT) processing environment?
* Ensure that workers receive multifunctional training * Develop an incentive system to reward workers
102
What is undertime?
A condition occurring when there are more people on the payroll than needed to produce the planned output ## Footnote It results when a company does not need an employee to produce at 100 percent capability.
103
What is vertical integration?
A company acquires another company that is not in the same industry or purchases one of its suppliers ## Footnote Examples include Google purchasing Motorola and Ikea purchasing forests in Africa.
104
What is the role of capacity requirements planning (CRP)?
It provides the ability to compare available production capabilities to the planned workload ## Footnote CRP also compares the actual workload.
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