Terms

Question 1

OPERATIONS MANAGEMENT

Answer 1

The set of activities that creates value in the form of goods and services by transforming inputs into outputs

Question 2

Productivity

Answer 2

The ratio of outputs (goods and services) divided by the inputs (resources, labor & capital)

Question 3

Mission

Answer 3

Tells an organization where it is going

Question 4

Strategy

Answer 4

Tells the organization how to get where its going

Question 5

Competitive advantage

Answer 5

Implies the creation of a system that has a unique advantage over competitors

Question 6

Delphi method

Answer 6

Uses an interactive group process that allows experts to make forecasts

Question 7

Jury of executive opinion

Answer 7

Takes the opinion of a small group of high-level managers and results in a group estimate of demand

Question 8

Sales force composite

Answer 8

Based on salespersons’ estimates of expected sales

Question 9

Market survey

Answer 9

Solicits input from customers or potential customers regarding future purchasing plans

Question 10

Time series

Answer 10

Uses a series of past data points to make a forecast

Question 11

Malcolm Baldrige Award

Answer 11

National quality award after a former secretary of commerce

Question 12

ISO 9000

Answer 12

Set of quality standards developed by the International Organization for Standardization

Question 13

Quality

Answer 13

The ability of a product or service to meet customer needs

Question 14

Prevention costs

Answer 14

Costs associated with reducing the potential for defective parts or services I.e training

Question 15

Appraisal costs

Answer 15

Costs related to evaluating products, processes, parts,and services I.e inspectors

Question 16

Internal failure costs

Answer 16

Costs that result from production of defective parts or services before delivery to customers I.e rework

Question 17

External failure costs

Answer 17

Costs that occur after delivery of defective parts or services I.e returned goods

Question 18

Six Sigma

Answer 18

A program to save time, improve quality, and lower costs

Question 19

D-M-A-I-C

Answer 19

Defines
Measures
Analyzes
Improves
Controls

Question 20

TQM Tools

Answer 20

Check sheets, flow charts, scatter plots, cause-and-effect diagrams, Pareto charts, histogram, and statistical process control

Question 21

Inspection

Answer 21

A means of ensuring that an operation is producing at the quality level expected

Question 22

Employee empowerment

Answer 22

Involving employees in every step of the production process

Question 23

Quality circle

Answer 23

A group of employees who meet regularly to solve work-related problems

Question 24

Benchmarking

Answer 24

Selecting a demonstrated standard of performance that represents the very best performance for a process or an activity

Question 25

Natural vs. assignable variation

Answer 25

Natural- expected variability; common cause | Assignable- variation that can be traced to a specific cause

Question 26

X-bar control chart

Answer 26

Tells us whether changes have occurred in the central tendency (the mean) of a process

Question 27

R-chart

Answer 27

Tracks the "range" within a sample; it indicates that a gain or loss in uniformity has occurred in dispersion of a production process

Question 28

P-chart

Answer 28

A quality control chart that is used to control attributes

Question 29

Eliminate waste

Answer 29

Waste is anything that doesn't add value from the customer point of view I.e strange, inspection,delay

Question 30

Seven wastes

Answer 30

Overproduction, queues, transportation, inventory, motion, over processing and defective products

Question 31

Just-in-time

Answer 31

Focuses on continuous and forced problem solving via throughput and reduced inventory

Question 32

5Ss

Answer 32

A lean production checklist - sort - simplify - shine - standardize - sustain

Question 33

Cycle time

Answer 33

The time between the arrival of raw materials and the shipping of finished products

Question 34

Pull system

Answer 34

Results in materials being produced only when requested and moved to where it is needed just as it is needed

Question 35

MAD

Answer 35

Mean absolute average | = sum(errors)/count(errors)

Question 36

Seasonal index

Answer 36

Seasonal average / overall average

Question 37

Errors

Answer 37

= abs(actual-forecast)