KEY TERMS EXAM 1

Question 1

bill of materials

Answer 1

A description of all raw materials and intermediate assemblies required to create a finished product

Question 2

biomimicry

Answer 2

The imitation of natural processes and systems.

Question 3

business analytics

Answer 3

Continuous investigation of business performance using large volumes of data

Question 4

business unit

Answer 4

A segment of a larger organization, usually managed as a profit-and-loss center.

Question 5

business-to-business (B2B)

Answer 5

Commercial transactions between organizations.

Question 6

business-to-consumer (B2C)

Answer 6

Commercial transactions between an organization and individual

Question 7

concurrent engineering

Answer 7

Integration of a product’s design and process development phases, to enhance manufacturability.

Question 8

core competency

Answer 8

Specific ability that distinguishes a business from its competitors.

Question 9

correlation coefficient

Answer 9

A measure of the strength of any linear relationship between two sets of observations.

Question 10

cradle-to-cradle

Answer 10

Planning sustainability as a perpetual cycle of transformation, in which the

Question 11

cradle-to-gate

Answer 11

Planning sustainability from the procurement of raw materials through the production of the product.

Question 12

cradle-to-grave

Answer 12

Planning sustainability from the procurement of raw materials through the final disposal of the product.

Question 13

cyclic variation

Answer 13

Seasonality with a cycle time longer than 1 year; generally associated with

Question 14

Delphi method

Answer 14

A qualitative forecasting technique in which experts achieve consensus through a blind process via a facilitator.

Question 15

diseconomies of scale

Answer 15

Increasing average unit cost by increasing volume.

Question 16

e-commerce

Answer 16

Buying and selling product through electronic transactions.

Question 17

economies of scale

Answer 17

Decreasing average unit cost by increasing volume.

Question 18

enterprise resource planning (ERP)

Answer 18

A strategic information system that integrates all functional areas of an organization.

Question 19

exogenous variation

Answer 19

A nonrepeating deviation in a time series created by a distinct, identifiable external influence.

Question 20

extrapolation

Answer 20

Projecting existing data into the future.

Question 21

fishbone diagram

Answer 21

Visual model to clarify cause-and-effect relationships.

Question 22

forecast bias

Answer 22

A tendency to create errors that are predominantly positive or negative.

Question 23

green

Answer 23

Assures sustainability.

Question 24

histogram

Answer 24

A bar chart illustrating the relative frequency of occurrences in different categories.

Question 25

ISO 9000

Answer 25

A certification of compliance with an internationally recognized set of quality management standards.

Question 26

Kendall notation

Answer 26

A labeling system for classifying waiting line models according to their initial assumptions.

Question 27

lean

Answer 27

Operating without waste.

Question 28

mission

Answer 28

An organization’s statement about what it’s doing to meet its vision.

Question 29

naïve forecast

Answer 29

Assuming a future value equals the most recent actual value available.

Question 30

natural variation

Answer 30

he randomness inherent in a process; also known as random variation.

Question 31

order qualifiers

Answer 31

Minimum competitive characteristics necessary to be considered for a customer’s order.

Question 32

order winners

Answer 32

Those characteristics that give a product competitive advantage.

Question 33

Pareto analysis

Answer 33

The use of statistics to identify the factors most influential in a particular outcome of interest.

Question 34

planning horizon

Answer 34

The farthest point in the future considered in decision making.

Question 35

Poisson distribution

Answer 35

A discrete probability distribution describing the likelihood of a particular number of independent events within a particular interval.

Question 36

processes

Answer 36

Activities that transform inputs into outputs.

Question 37

product life cycle

Answer 37

Generalized pattern of phases in product demand over time, from incubation to decline.

Question 38

productivity

Answer 38

a measurement of value creation, calculated as a ratio of the values of output to input

Question 39

quality circle

Answer 39

A group of employees that meets regularly to discuss and develop

Question 40

quality of conformance

Answer 40

he degree to which the output of an operation meets the producer’s expectations.

Question 41

quality of design

Answer 41

The degree to which the output of an operation meets the customer’s expectations.

Question 42

queue discipline

Answer 42

A rule or rules determining the order in which waiting individuals will be served.

Question 43

queuing theory

Answer 43

The mathematical modeling of waiting lines.

Question 44

rapid prototyping

Answer 44

Creating physical examples of a design as quickly as possible, to allow further assessment and improvement.

Question 45

responsiveness

Answer 45

The degree to which a technique modifies forecasts to reflect recent

Question 46

reverse engineering

Answer 46

Disassembling and evaluating a competitor’s product.

Question 47

risk

Answer 47

The possibility of loss or the source of such a possibility.

Question 48

scientific management

Answer 48

A methodology stressing the use of data collection and analysis to redesign processes and improve efficiency.

Question 49

seasonal relatives

Answer 49

A set of numerical values that describe a seasonal pattern.

Question 50

seasonality

Answer 50

A repeating pattern within a time series.

Question 51

Six Sigma

Answer 51

A quality management program emphasizing the application of analytical tools and widespread involvement of employees across the organization.

Question 52

serpentine line

Answer 52

A single queue of customers waiting in a line that must bend one or more times to fit within the service facility.

Question 53

strategy

Answer 53

A methodology and resulting plan that identifies the long-term goals of an organization.

Question 54

subcontract

Answer 54

To engage a third party in the provision of value to a customer.

Question 55

supply chain

Answer 55

A system consisting of all organizations that play some role in supplying a particular product to a customer.

Question 56

tactics

Answer 56

Means to pursue strategic goals with available resources.

Question 57

total quality management (TQM)

Answer 57

Simultaneous and continuous pursuit of improvement in both the quality of design and conformance through the involvement of the entire organization.

Question 58

trend

Answer 58

A sustained period of growth or decline.

Question 59

value-added

Answer 59

The difference between the total value of the outputs and the total value of the inputs associated with an operation.

Question 60

vision

Answer 60

An organization’s defining statement about the future.