Final Flashcards
(165 cards)
1
Q
Implications for Ops. Mgt for Low Price organization strategy?
A
Requires low variation in products and high volume, steady flow of goods
2
Q
Implications for Ops. Mgt for High Quality organization strategy?
A
Entails higher initial cost for product design, and more emphasis on assuring supplier quality
3
Q
Implications for Ops. Mgt for Quick Response organization strategy?
A
Requires:
- flexibility
- extra capacity
- Higher levels of some inventory items
4
Q
Implications for Ops. Mgt for Newness/innovation organization strategy?
A
Entails large investments in R&D for new products
5
Q
Implications for Ops. Mgt for Product Variety organization strategy?
A
Requires:
- high variation in resource
- Most emphasis on product design
- More complexity
- Higher work skills needed
6
Q
Implications for Ops. Mgt for Sustainability organization strategy?
A
Affects:
- Location planning
- Product design
- Outsourcing decisions
- Waste mngt
7
Q
____ is a top-down management system that organizations use to clarify their vision/ strategy and transform them into action
A
Balanced Scorecard (BSC)
8
Q
What are the 4 perspectives of the Balanced Scorecard?
A
1) Financial Performance
2) Efficiency of Internal Business Processes
3) Organizational Knowledge/ Innovation
4) Customer/Stakeholder Satisfaction
9
Q
What are the 5 factors of the Suppliers Focal Point?
A
- Delivery Performance
- Quality Performance
- Number of Suppliers
- Supplier Locations
- Duplicate Activities
10
Q
What are the 3 factors of the Internal Processes Focal Point?
A
- Bottlenecks
- Automation potential
- Turnover
11
Q
What are the 3 factors of the Employees Focal Point?
A
- Job Satisfaction
- Learning Opportunities
- Delivery Performance
12
Q
What are the 3 factors of the Customers Focal Point?
A
- Quality performance
- Satisfaction
- Retention Rate
13
Q
_____ is an index that measures output (goods/services) relative to the input (labor, materials, resources) used to produce it
A
Productivity
14
Q
_____ is the increase in productivity from one period to the next relative to the productivity in the proceeding period
A
Productivity growth
15
Q
Productivity growth is a key factor in a country’s _____
A
Rate of inflation and standard living of its people
16
Q
What are productivity measures used to judge the performance of an entire industry or the productivity of a country as a whole?
A
Aggregate Measures
17
Q
What is defined as the ratio of output of goods to the quantity of raw material input?
A
Process yield
18
Q
Dismantling and inspecting a competitor’s product to discover product improvements is called ______
A
Reverse Engineering
19
Q
____ refers to organized efforts that are directed toward increasing scientific knowledge and product innovation
A
Research and Development (R&D)
20
Q
____ has the objective of advancing the state of knowledge about a subject, without any near-term expectation of commercial applications
A
Basic research
21
Q
___ has the objective of achieving commercial application
A
Applied research
22
Q
____ converts the results of applied research into useful commercial applications
A
Development
23
Q
What are the two critical human factor issues that often arise in the design of consumer products?
A
Safety and liability
24
Q
“Too much of a good thing” can be a source of ____
A
Customer dissatisfaction
25
____ means bringing design and manufacturing engineering people together early in the design phase to develop the product/ design process
Concurrent engineering
26
Concurrent engineering is also known as _____
Simultaneous development
27
___ uses computer graphics for product design. Benefit of increased productivity of designers
Computer-aided design (CAD)
28
_____ is used to indicate the designing of products that are compatible with an organization's capabilities
Design for Manufacturing (DFM)
29
____ is design that focuses on reducing the number of parts in a product and on assembly methods and sequence
Design for Assembly (DFA)
30
___ is the capability of an organization to produce an item at an acceptable profit
Manufacturability
31
System design involves development/refinement of the overall _____
Service Package
32
Explicit Services = _____
Essential/core features of a service (tax preparation)
33
Implicit Service = _____
Extra features (Friendliness)
34
____ is a method for describing and analyzing a service process
Service blueprint
35
What are the 4 steps of service blueprinting?
1) Establish boundaries for the service
2) Identify/ determine the sequence of actions
3) Develop time estimates for phases
4) Identify potential failure points
36
Capacity decisions have a real impact on the ability of the organization to _____
Meet future demands for products and services
37
How do capacity decisions affect operating costs?
Capacity and demand requirements will be matched, which will tend to minimize operating costs
38
How is capacity usually a major determinant of initial cost?
The greater the capacity of a production unit, the greater the cost
39
How can capacity decisions gain competitive advantages?
If a firm has excess capacity/ quickly add capacity, that fact may serve as a barrier to entry by other firms
Can increase delivery speed
40
____ is the maximum output rate an operation, process, or facility is designed for.
Design Capacity
41
____ = Design capacity - allowances
Effective Capacity
42
Personal time and preventative maintenance are examples of ______
Allowances
43
_____ is the ratio of actual output to design capacity
Capacity Utilization
44
_____ is the ratio of actual output to effective capacity
Efficiency
45
_____ cannot exceed effective capacity, and is often less because of machine breakdowns, absenteeism, shortages, or quality problems
Actual output
46
What 4 Facility factors determine effective capacity?
1) Design
2) Location
3) Layout
4) Environment
47
What 2 Product/service factors determine effective capacity?
1) Design
2) Product/service mix
48
What 2 Process factors determine effective capacity?
1) Quantity capabilities
2) Quality capabilities
49
What 7 Human Factors determine effective capacity?
1) Job content
2) Job design
3) Training/experience
4) Motivation
5) Compensation
6) Learning rates
7) Labor turnover/ absenteeism
50
What 5 Operational factors determine effective capacity?
1) Scheduling
2) Material maintenance
3) Quality Assurance
4) Maintenance policies
5) Equipment breakdowns
51
What 4 External factors determine effective capacity?
1) Product standards
2) Safety Regulations
3) Unions
4) Pollution Control Standards
52
______ needs require forecasting demand over a time horizon and then converting those forecasts into capacity requirements
Long-term capacity needs
53
____ needs are less concerned with cycles/trends than with seasonal variations or other variations from average
Short-term capacity needs
54
_____ are important because they can place a severe strain on a system's ability to satisfy demand at times or result in idle capacity
Deviations
55
The link between _____ and _____ is crucial to a realistic determination of capacity requirements
Marketing and operations
56
Are the following steps a reasonable approach to determining capacity requirements?
1) Obtain a forecast of future demand
2) Translate demand into both the quantity and timing of capacity requirements
3) Decide what capacity changes are needed
Yes
57
What are 6 reasons to outsource?
1) Lack of capacity
2) Lack of expertise
3) Low Costs to outsource
4) Risks of producing in-house
5) Low demand
6) Inability to meet quality standards in-house
58
____ is an operation in a sequence whose capacity is lower than the capacities of other operations in the sequence
Bottleneck Operation
59
Capacity of the bottleneck operation ______
Limits the system capacity to the amount of the bottleneck operation
60
Frederick Winslow Taylor =
Father of Scientific Management
61
_____ gave new emphasis to quality by including product inspection and gauging in his list of fundamental areas of manufacturing management
Frederick Winslow Taylor
62
During the 1950's, total quality control efforts enlarged the realm of quality efforts from its primary focus on manufacturing to include:
Product design and incoming raw materials
63
During the 1960's, the concept of ______ gained favor.
"Zero defects"
64
The evolution of quality took a dramatic shift from quality assurance to ______ in the late 1970's.
A strategic approach
65
Walter Shewhart =
"Father of Statistical Quality Control"
66
_____ developed control charts for analyzing the output of processes to determine when corrective action was necessary
Walter Shewhart
67
____ compiled a famous list of 14 points he believed were the prescription needed to achieve quality in an organization
W. Edwards Deming
68
_____ was established by the Japanese to annually award firms that distinguish themselves with quality management programs
Deming Prize
69
____ described quality management in terms of a trilogy consisting of quality planning, quality control, and quality improvement
Joseph M. Juran
70
Joseph Juran is credited as one of the first to ______
Measure the cost of quality
71
_____ was instrumental in advancing the "cost of nonconformance" approach as a reason for management to commit to quality
Armand Feigenbaum
72
______ developed the the concept of "zero defects" and popularized the phrase "Do it right the first time"
Philip B. Crosby
73
____ developed the cause-and-effect diagram for problem solving and the implementation of quality circles
Kaoru Ishikawa
74
____ is known for the Taguchi loss function, which involves a formula for determining the cost of poor quality - deviation from a standard causes a loss
Genichi Taguchi
75
_____ and ____ both developed the philosophy and methods of kaizen (continuous improvement)
Taiichi Ohno and Shigeo Shingo
76
____ identifies and recognizes role-model organizations, establish criteria for evaluating improvement efforts, and disseminate/share best practices
Baldrige Award
77
_____ is Europe's most prestigious award for organizational excellence. Sits at the top of regional and national quality awards
European Quality Award
78
_____ is the conceptual basis for problem solving activities. The process is represented in a circle to underscore its continuing nature and contains four basic steps.
Plan-Do-Study-Act (PDSA) Cycle
79
____ is a systematic approach to improving a process. Involves documentation, measurement, and analysis for the purpose of improving the functioning of a process
Process Improvement
80
What are the 7 basic steps in problem solving?
1) Define Problem
2) Develop measures
3) Analyze Problem
4) Generate Solutions
5) Choose Solution
6) Implement Solution
7) Monitor Solution
81
___ is a business process for improving quality, reducing costs, and increasing customer satisfaction
Six Sigma
82
What are the 4 management components of Six Sigma?
1) Strong Leadership
2) Defining performance metrics
3) Quality Project Selection
4) Selecting/Training appropriate people
83
What are the 4 technical components of Six Sigma?
1) Improving process performance
2) Reducing variation
3) Utilizing statistical methods
4) Designing a structured improvement strategy
84
_____ is a formalized problem-solving process of Six Sigma
DMAIC (Define-Measure-Analyze-Improve-Control)
85
In a ____, a physical count of items in inventory is made a fixed intervals (weekly, monthy) in order to decide how much to order
Periodic System
86
______ keeps track of removals from inventory in a continuous basis, so the system can provide information on the current level of inventory for each item
Perpetual Inventory System
87
____ is an elementary system that uses containers to determine the need for reordering. Reorder when the first bin is out, and the second bin covers the expected demand until the new material arrives.
Two-bin system
88
____ is the bar code that is printed on an item tag/packaging that is read by a laser scanning device. Code contains information about the item.
Universal product code (UPC)
89
_____ electronically record actual sales. Enable management to make any necessary changes to restocking decisions
Point-of-sale (POS) systems
90
______ are particularly helpful in retail businesses to track inventory items and sales. These are alphanumerical codes unique to each business
Stock Keeping Units (SKUs)
91
____ is the cost to carry an item in inventory for a length of time
Holding (carrying) costs
92
Holding costs include these 6 examples:
Interest
Taxes
Insurance
Depreciation
Spoilage
Warehouse costs
93
Ordering Costs include:
Determining how much is needed
Preparing invoices
Inspecting goods upon arrival
Moving goods to storage
94
Ordering costs are typically a _____
Fixed charge per order, regardless of size
95
____ is the amount paid to a vendor to buy the inventory; can include shipping costs
Purchasing Costs
96
____ are the costs of preparing equipment for a job by making adjustments or changing out tools
Setup costs
97
When a firm produces its own inventory, machine setup costs are ______
analogous to ordering costs = expressed as a fixed dollar amount per order
98
____ costs result from when demand exceeds supply of inventory on hand
Shortage costs
99
4 examples of Shortage costs include:
1) Opportunity cost of not making a sale
2) Loss of customer goodwill
3) Late charges
4) Backorder costs
100
_____ classifies inventory according to some measure of importance and allocating control efforts accordingly
A-B-C Approach
101
One purpose of cycle counting is ________.
To reduce discrepancies between the amounts reported and the actual amounts on hand
102
____ models identify the optimal order quantity by minimizing the sum of certain annual costs that vary with order size/frequency
Economic Order Quantity (EOQ) model
103
_____ is used to identify a fixed order size that will minimuze the sum of the annual costs of holding/ordering inventory
Basic EOQ
104
The assumptions of the EPQ are similar to the EOQ model, except that
Units are received incrementally during production
105
____ are price reductions are larger orders offered to customer to induce them to buy in large quantities
Quantity Discounts
106
____ is when the quantity on hand drops below this amount signaling it's time for the item to be reordered
Reorder Point (ROP)
107
____ is the amount of inventory needed to meet expected demand
Cycle Stock
108
_____ is the extra inventory carried to reduce the probability of a stockout due to demand/ lead time variability
Safety Stock
109
Order cycle _____ can be defined as the probability that demand will not exceed supply during lead time
Service Level
110
____ is the percentage of demand filled by the stock on hand
Fill Rate
111
____ a flexible system of operation that uses considerably fewer resources than traditional systems
Lean Operation Systems
112
Lean Operation Systems = ________
Just-in-time systems
113
Lean operation systems were developed by ______
Toyota
114
Five characteristics of Lean Operations:
1) Waste Reduction
2) Continuous Improvement
3) Work Cells
4) Output tied to demand
5) High Quality
115
What are three risks of Lean Operations?
1) Increased stress on workers due to increased responsibility
2) Fewer resources available
3) High chance of production shutdown when supply chain disruptions occur
116
Muda = ____
Waste and inefficiency
117
Kanban = _____
A manual system that signals the need for parts
118
Heijunka = ______
Workload leveling
119
Kaizen = ______
Continuous improvement
120
Jidoka = ______
Quality at the source/ Autonomation
121
What are 5 benefits of Lean Operations?
1) Reduced waste
2) Lower costs
3) Increased quality
4) Reduced cycle time
5) Increased flexibility/productivity
122
What are 3 supporting goals of Lean systems?
1) Eliminate disruptions
2) Make the system Flexible
3) Eliminate waste (excess inventory)
123
What are the 8 wastes?
1) Excess inventory
2) Overproduction
3) Waiting time
4) Unnecessary transporting
5) Processing waste
6) Inefficient methods
7) Defects
8) Underused people
124
What 2 elements of product design relate to speed and simplicity?
1) Standard parts
2) Modular design
125
_____ is a system for reducing change-over time
Single-minute exchange of die (SMED)
126
______ activities are those that can only be done while a machine is stopped
Internal
127
_____ activities are those that do not involve stopping the machine; can be done before or after the changeover
External
128
____ involves the automatic detection of defects during production
Autonomation
129
_____ is the cycle time needed in a production system to match the pace of production to demand rate
Takt time
130
Takt time is often set for _______
A work shift
131
Poka-yoke = ______
"Mistake proofing" or "fool-proofing"
132
_____ are safeguards built into a process to reduce the possibility of errors
Poka-yoke
133
____ is a system of lights used of each workstation to signal problems or slowdowns
Andon
134
______ is a method used to calculate the allocation of overhead to specific jobs based on their percentage of activities
Activity-based costing
135
In a ____, work moves on in response to demand from the next stage in the process
Pull systems
136
In a _____, work moves on as it is completed, without regard to the next station's readiness for the work. May cause work to pile up because of machine failures or quality defects.
Push Systems
137
Kanban = ______
"signal" or "visible record"
138
_____ is a card or other devise that communicates demand for work/ materials from the preceding station
Kanban
139
Production kanban (p-kanban) = _______
Signals the need to produce parts
140
Conveyance kanban (c-kanban) = _______
Signals the need to deliver parts to the next station
141
List the 5 S's, which are the behaviors intended to make the workplace effective.
1) Sort
2) Straighten
3) Sweep
4) Standardize
5) Self-discipline
142
____ emphasize maintaining equipment in good operating condition and replacing parts that have a tendency to fail before they fail
Preventive Maintenance
143
____ is the movement of goods, services, cash, and information in a supply chain
Logistics
144
_____ is the strategic coordination of business functions within a business organization and through out its supply chain for the purpose of integrating supply and demand management
Supply Chain Management
145
Demand chain = _____
The sales and distribution portion of the value chain
146
Product flow = _____
Movement of goods or services from suppliers to customers
147
Financial flow = ____
Involves credit terms
Payments
Consignment
Ownership arrangements
148
Information flow = ______
Involves sharing forecast and sales data
Transmitting orders
Tracking shipments
Order Status
149
_____ is the ability of a business to recover from an event that negatively impacts the supply chain
Resiliency
150
____ is a function of the severity of the impact and the plans that are in place to cope with the event
Recovery
151
Risk avoidance = ______
Not dealing with suppliers in a certain area
152
Risk reduction = _____
Replacing unreliable suppliers
153
Risk sharing = ____
Contractual arrangements with supply chain partners that spread the risk
154
______ means that a major trading partner can connect to any part of its supply chain to access data in real time
Supply chain visibility
155
_____ is the capability to deter and respond to unplanned events such as delayed shipment or low stock levels
Event-response capability
156
A major risk of unethical behavior in supply chain is that when it is exposed in the media, _____
Customers tend to blame the major company with the ethical infractions that were actually committed by the other independent company in the supply chain
157
Steps to reduce the risk of damages due to an unethical supplier:
1) Choose suppliers with good reputations
2) Incorporate compliance with labor standards in contracts
3) Develop direct, long-term relationships with ethical suppliers
4) Address problems quickly
158
______ includes evaluating the sources of supply in terms of price, quality, reputation, and service
Vendor Analysis
159
____ is perhaps the most widely used international certification
ISO 9000
160
____ occurs when two or more organizations that have complementary products join so that each may realize a strategic beneft
Strategic partnering
161
The rate at which material moves through a supply chain is referred to as _____
Inventory velocity
162
The greater the inventory velocity = ______
The lower the inventory holding costs are and the faster orders are fulfilled
163
_____ is when inventory fluctuations become progressively larger looking backward through the supply. chian
Bullwhip effect
164
Good supply chain management can overcome the bullwhip effect by ______
Strategic buffering of inventory, information sharing, and inventory replenishment based on needs
165
____ lets companies reduce overhead by shifting responsibility for owning, managing, and replenishing inventory to vendors
Vendor Managed Inventory (VMI)
