Midterm 2 Flashcards
(91 cards)
1
Q
The pattern of decisions made in managing processes so that they will achieve their competitive priorities
A
Process Strategy
2
Q
The management of processes that transform inputs into
products and services for internal and external customers
A
Operations Management
3
Q
Deciding on the ways in which production
of goods or services will be organized
A
Process Choice:
4
Q
- Small scale, low volume, high variety.
- Intermittent processing.
- Small jobs with different processing requirements.
- High flexibility using general-purpose equipment and skilled workers.
A
Job
5
Q
- 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).
A
Batch
6
Q
- High volume, low variety: more standardized goods/services.
- Repetitive processing.
- Equipment – slight flexibility needed.
- Worker skills – generally low.
A
Line
7
Q
- Each worker is free to work at his own speed
- Inventory between workstations due to different capacity of workers
- Example: BMW Motorcycle production
A
Worker-Paced Assembly Line
8
Q
- All workstations must work at the same speed
- If one workstation stops working, the whole assembly line stops
- Example: Toyota Prius assembly line
A
Machine-Paced Assembly Line
9
Q
- 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)
A
Continuous-flow
10
Q
A matrix that shows the relationship between different types of production
processes and their respective volume and variety requirements.
A
Product – Process Matrix
11
Q
More customer involvement can mean
better quality, faster delivery, greater
flexibility, and sometimes even lower
cost.
A
Improved Competitive Capabilities
12
Q
Mix of equipment and human skills in the process
A
Capital Intensity
13
Q
The physical arrangement of operations
(or departments) relative to each other
A
Layout
14
Q
The systematic study of the activities and flows of each
process to improve it
A
Process Improvement
15
Q
The fundamental rethinking and radical redesign of
processes to improve performance dramatically in terms of
cost, quality, service, and speed
A
Process Reengineering
16
Q
• A strategy that involves designing new products that currently don’t exist • Typically a job process is employed to create highly customized product
A
Design-to-Order
17
Q
• 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
A
Make-to-Order
18
Q
• 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.
A
Assemble-to-Order
19
Q
• 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.
A
Make-to-Stock
20
Q
A characteristic of processes that are meeting humanity’s
needs without harming future generations
A
Sustainability
21
Q
Prison labor, debt bondage labor etc.
A
Forced Labor
22
Q
Employing underage workers, usually taken to be under 15 years of age
A
Child Labor
23
Q
Working more than 48 hours per week, not enough break etc.
A
Working hours
24
Q
Using corporal punishment, mental or physical coercion, or
verbal abuse
A
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
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respect of human
and workers’ rights – child labour,
forced labour, health and safety,
working conditions, gender
equality, poverty alleviation,
minority support
```
Social issues
35
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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)
