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Flashcards in Midterm 2 Deck (91):
1

The pattern of
decisions made in
managing processes
so that they will
achieve their
competitive priorities

Process Strategy

2

The management of processes that transform inputs into
products and services for internal and external customers

Operations Management

3

Deciding on the ways in which production
of goods or services will be organized

Process Choice:

4

•Small scale, low volume, high variety.
• Intermittent processing.
• Small jobs with different processing requirements.
• High flexibility using general-purpose equipment and skilled workers.

Job

5

• Moderate volume, moderate variety.
• Intermittent processing.
• Equipment – need not be as flexible as in a job shop (more volume).
• Worker skills – need not be as high as in a job shop (less variety).

Batch

6

• High volume, low variety: more standardized goods/services.
• Repetitive processing.
• Equipment – slight flexibility needed.
• Worker skills – generally low.

Line

7

• Each worker is free to work at his own speed
• Inventory between workstations due to different capacity of workers
• Example: BMW Motorcycle production

Worker-Paced Assembly Line

8

• All workstations must work at the same speed
• If one workstation stops working, the whole assembly line stops
• Example: Toyota Prius assembly line

Machine-Paced Assembly Line

9

• Very high volume, very low (almost no) variety: highly standardized output.
• Continuous processing.
• Equipment – no flexibility needed.
• Worker skills – low to high depending on the complexity of the system.
• If equipment is highly specialized, worker skills can be lower (and vice versa)

Continuous-flow

10

A matrix that shows the relationship between different types of production
processes and their respective volume and variety requirements.

Product – Process Matrix

11

More customer involvement can mean
better quality, faster delivery, greater
flexibility, and sometimes even lower
cost.

Improved Competitive Capabilities

12

Mix of equipment and human skills in the process

Capital Intensity

13

The physical arrangement of operations
(or departments) relative to each other

Layout

14

The systematic study of the activities and flows of each
process to improve it

Process Improvement

15

The fundamental rethinking and radical redesign of
processes to improve performance dramatically in terms of
cost, quality, service, and speed

Process Reengineering

16

• A strategy that involves
designing new products that
currently don’t exist
• Typically a job process is
employed to create highly
customized product

Design-to-Order

17

• A strategy used by
manufacturer that makes
small quantities according to
customers’ specification
• This strategy provides a high
degree of customization and
typically uses Job or small
batch processes

Make-to-Order

18

• A strategy for producing a wide
variety of product from relatively
few subassemblies and components
• This strategy often involves a line
process for assembly and a batch
process for fabrication
• Numerous possible options make
forecasting inaccurate.
• Often used for mass customization.

Assemble-to-Order

19

• A strategy that involves holding
items in stock for immediate
delivery.
• This strategy is feasible for
standardized products with high
volumes and reasonably accurate
forecasts.
• Typically Line of continuous flow
processes are used.
• Often used for mass production.

Make-to-Stock

20

A characteristic of processes that are meeting humanity’s
needs without harming future generations

Sustainability

21

Prison labor, debt bondage labor etc.

Forced Labor

22

Employing underage workers, usually taken to be under 15 years of age

Child Labor

23

Working more than 48 hours per week, not enough break etc.

Working hours

24

Using corporal punishment, mental or physical coercion, or
verbal abuse

Disciplinary practices

25

Providing unhealthy and unsafe work environment to workers

Worker health & safety

26

A large, industrial operation that raises large numbers of animals for
food. Over 99% of farm animals in the U.S. are raised in factory farms, which focus on
profit and efficiency at the expense of animal welfare.

Factory farm

27

Using unnatural, inhumane conditions to farm animals for food.

Animal cruelty

28

the action of clearing a wide area of trees.

Deforestation

29

a gradual increase in the overall temperature of the earth's
atmosphere generally attributed to the greenhouse effect caused by increased levels
of carbon dioxide, chlorofluorocarbons, and other pollutants.

Global warming

30

The total amount
of greenhouse
gasses produced
to support
operations,
usually expressed
in equivalent tons
of carbon dioxide
(CO2)

Carbon footprint

31

The process of planning, implementing and controlling the efficient,
cost-effective flow of products, materials, and information from the point of
consumption back to the point of origin for returns, repair, remanufacture, or recycling

Reverse Logistics

32

A supply chain that integrates forward logistics with reverse
logistics, thereby focusing on the complete chain of operations from the birth to the
death of a product

Closed-Loop Supply Chain

33

Some original equipment manufacturers (OEMs) sell “remanufactured”,
“refurbished”, or “factory reconditioned” products

Remanufacturing

34

respect of human
and workers’ rights – child labour,
forced labour, health and safety,
working conditions, gender
equality, poverty alleviation,
minority support

Social issues

35

pollution, climate change,
decline in ecosystems &
biodiversity, deforestation,
soil degradation, resource
depletion and fresh water
crisis

Environmental issues

36

Cost, quality, time,
flexibility, resource
utilization, visibility
and innovation

Financial issues

37

an organization that uses the market mechanism
(i.e., commercial strategies) to simultaneously achieve improvements in
financial, social and environmental well-being

social enterprise

38

The effective coordination of supply chain processes though
the seamless flow of information up and down the supply chain

Supply Chain Integration

39

increasing swings in inventory in response to
shifts in customer demand as one moves further up the supply chain

Bullwhip Effect

40

Trying to buy more than what is
currently needed to take advantage of low price (known as
forward buying)

Promotions and special pricing

41

Trying to place large orders due to high ordering
costs, transportation economics etc.

Order batching

42

Retailers inflate order sizes to counteract
rationing when demand exceeds supply in the market

Shortage gaming

43

pricing strategy in which a retailer offers
its customers consistently low prices on every product,
without running sales or price promotions

Everyday Low Price

44

a system in which the supplier has access to the customer’s
inventory data and is responsible for maintaining the inventory on the
customer’s site

Vendor Managed Inventory (VMI)

45

a program that includes suppliers in the design
phase of a service or product

Early Supplier Involvement (ESI)

46

a multi-channel sales
approach that provides the customer with an integrated
customer experience

Omni-channel retailing

47

The degree to which PERFORMANCE of a product or service meets or exceeds customer
EXPECTATIONS.
A term used by customers to describe their general satisfaction with a service or product.

Quality

48

Meeting certain advertised or
implied performance standards.

Conformance to Specifications

49

How well the service or product serves its
intended purpose.

Fitness for Use

50

How efficiently and effetely the company offers help
when problem occurs or to maintain the product or service.

Support

51

Appearance of the product or service
offering.

Psychological Impressions

52

Costs associated with preventing defects before they happen.

Prevention costs

53

Costs associated with assessing the level of performance of current processes.

Appraisal costs

54

Costs caused by defective parts or products or by faulty services.

Failure costs

55

Costs resulting from defects that are discovered during the
production process.

Internal failures

56

Costs resulting from defects discovered by the customers.

External failures

57

Societal and monetary costs associated with deceptively passing defective
goods/services to customers such that it jeopardizes the wellbeing of stakeholders

Ethical failure costs

58

A philosophy that stresses three key principles (customer
satisfaction, employee involvement and continuous improvement)
for achieving high level of process performance and quality

Total Quality Management (TQM)

59

Suppliers
must be included in the
quality assurance. Extend the
quality concepts throughout
the supply chain

Supplier quality

60

Identifying organizations that
are the best and studying how they do it to learn how to improve your organization

Competitive benchmarking

61

Employees must be trained in the use of quality tools

Problem-solving tools

62

The philosophy whereby
defects are caught and
corrected where they were
created

Quality at the source

63

The philosophy of
continually seeking ways to
improve processes

Continuous improvement
(Kaizen)

64

A comprehensive and flexible system for achieving, sustaining, and
maximizing business success by minimizing defect and variability in processes

Six Sigma

65

Inspect each service or product at each stage of the process for
quality

Complete Inspection

66

Selecting of a subset of items (a sample) from the total
population to estimate characteristics of the whole population

Sampling

67

Service or product characteristics that
can be measured

Variables

68

Service or product characteristics
that can be quickly counted for acceptable
performance

Attributes

69

The application of statistical techniques to determine whether a process
is delivering what the customer wants.

Statistical Process Control (SPC)

70

The purely random,
unidentifiable sources of
variation that are unavoidable
with the current process

Common Variation

71

A variation whose cause can be
identified (assigned to specific
causes). A non-random
variation.

Assignable Variation

72

Time-ordered diagram that is used to determine
whether observed variations are abnormal

Control Chart

73

control chart used to monitor the
central tendency of a process

average x -chart:

74

control chart used to monitor
process variability

R-chart

75

control chart used to monitor the
proportion of defects generated
by the process

p-chart

76

control chart used to monitor the
number of defects generated by
the process

c-chart

77

An error that occurs when the employee concludes that the
process is out of control based on a sample result that fails
outside the control limits, when it fact it was due to pure
randomness

Type I error

78

An error that occurs when the employee concludes that the
process is in control and only randomness is present, when
actually the process is out of statistical control

Type II error

79

the ability of the process to meet the design specification for a service or product

process capability

80

increases astronomically as process
performance increases linearly

process quality

81

An index that measures the potential for a process to generate defective
outputs relative to either upper or lower specifications.

Process Capability Index (Cpk)

82

The tolerance width divided by six standard deviations.

Process Capability Ratio (Cp)

83

The maximum rate of output of a process or a system

Capacity

84

Process of determining capacity for production
or service needed by an organization to the
meet customer demand

Capacity Planning

85

The degree to which equipment, space, or the workforce is currently
being used, and is measured by the following

Utilization

86

The amount of reserve capacity a process uses to handle sudden
increases in demand or temporary losses of production capacity

Capacity Cushion

87

Positive or negative difference between projected demand and current capacity

Capacity Gap

88

An abstract
representation of the queue that enables
us to predict waiting times and other
performance measures

Queuing Model

89

A decision support tool that uses a tree-like graph or model of decisions and their
possible consequences, including chance event outcomes, resource costs, and utility

Decision Tree

90

-Economies and diseconomies of scale
-Capacity timing and sizing strategies
-Systematic approach to capacity decisions

Capacity Planning (Long-Term)

91

-Theory of constraints
-Identification and management of bottlenecks
-Product mix decisions using bottlenecks
-Managing constraints in a line process

Capacity Management (Short-Term)