question

balance delay

answer

the total idle time of an assembly line

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best operating level

answer

the percent of capacity utilization at which unit costs are lowest

question

block diagram

answer

a schematic layout diagram that includes that size of each work area

question

capacity

answer

the maximum capacility to produce

question

capacity cushion

answer

a percent of capacity held in reserve for unexpected occurences

question

capacity planning

answer

a long-term strategic decision that establishes the overall level of productive resources for a firm

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cellular layout

answer

a layout that creates individual cells to process parts or customers with similar requirements

question

cycle time

answer

the maximum amount of time an item is allowed to spend at each workstation if the targeted production rate is to be achieved; also, the time between successive product completions

question

diseconomies of scale

answer

when higher levels of output cost more per unit to produce

question

economies of scale

answer

when it costs less per unit to product higher levels of output

question

facility layout

answer

the arrangement of machines, departments, workstations, and other areas within a facility

question

fixed-position layout

answer

a layout in which the product remains at a stationary site for the entire manufacturing cycle

question

flexible manufacturing system (FMS)

answer

programmable equipment connected by an automated material-handling system and controlled by a central computer

question

line balancing

answer

a layout technique that attempts to equalize that amount of work assigned to each workstation on an assembly line

question

mixed-model assembly line

answer

an assembly line that processes more than one product model

question

Muther's grid

answer

a formate for displaying manager preferences for department locations

question

precedence requirements

answer

physical restrictions on the order in which operations are performed

question

process layout

answer

a layout that groups similar activities together into work centers according to the process or function they perform

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product layout

answer

a layout that arranges activities in a line according to the sequence of operations that are needed to assemble a particular product

question

production flow analysis (PFA)

answer

a group technology technique that reorders part routing matrices to identify families of parts with similar processing requirements

question

relationship diagram

answer

a schematic diagram that denotes location preference with different line thicknesses

question

unit load

answer

the quantity in which material is normally moved, such as a unit at a time, a pallet, or a bin of material

question

contraints

answer

linear relationships of decision variables representing the restrictions placed on the decision situation by the operating environment

question

decision variables

answer

mathematical symbols that represent levels of activity of an operation

question

extreme points

answer

corner points, or protrusions, on the boundary of the feasible solution space in a linear programming model

question

feasible solution space

answer

an area that satisfies all contraints in a linear programming model simultaneously

question

graphical solution method

answer

a method for determining the solution of a linear programming problem using a two-dimensional graph of the model

question

linear programming

answer

a technique for general decision situations in which the decision is to determine a level of operational activity in order to achieve an objective, subject to restrictions

question

objective function

answer

a linear mathematical relationship that describes the objective of an operation in terms of decision variables

question

optimal solution

answer

the single best solution to a problem

question

simplex method

answer

a series of mathematical steps conducted iwhtin a tabular structure for solving a linear programming model

question

slack variable

answer

a variable added to a linewar programming less than or equal to contraint to make it an equality

question

surplus variable

answer

a variable subtracted from a greater than or equal to model contraint in a linear programming model in order to make it an equality

question

ABC system

answer

a method for classifying inventory items according to their dollar value to the firm based on the principle that only a few items account for the greatest dollar value of total inventory

question

carrying costs

answer

the cost of holding an item in inventory, including lost opportunity costs, storage, rent, colling, lighting, interest on loans, and so on

question

continuous inventory system

answer

a system in which the inventory level is continually monitored; when it decreases to a certain level, the reorder point, a fixed amount is ordered

question

dependent demand

answer

typically, component parts or materials used in the process to produce a final product

question

economic order quantity (EOQ)

answer

a fixed-order quantity that minimizes total inventory costs

question

fixed-time-period system

answer

also known as a periodic system; an inventory system in which a variable amount is ordered after a predetermined, constant passage of time

question

independent demand

answer

final or finished products whose demand is not a function of, or dependent on, internal production activity

question

inventory

answer

a stock of items kept by an organization to meet internal or external customer demand

question

order cycle

answer

the time between the receipt of orders in an inventory system

question

ordering costs

answer

the cost od replenishing the stock of inventory including requisition cost, transportation and shipping, receiving, inspection, handling, and so forth

question

production quantity model

answer

also know as the production lot-size model; an inventory system in which an order is received gradually and the inventory level is depleted at the same time it is being replenished

question

quantity discount

answer

a pricing schedule in which lower prices are provided for specific (higher) order quantities

question

reorder point

answer

a level of inventory in stock at which a new order is placed

question

safety stock

answer

an amount added to the expected amound demanded during the lead time (the reorder point level) as a hedge against a stockout

question

service level

answer

the probability that the amount of inventory on hand during the lead time is sufficient to meet expected demand

question

shortage costs

answer

temporary or permanent loss of sales that will result when customer demand cannot be met

question

stockout

answer

an inventory shortage occurring when demand exceeds the inventory in stock

question

assemble-to-order

answer

a manufacturing environment in which major subassemblies are produced in advance of a customer's order and are then configured to order

question

backward scheduling

answer

scheduling backward from a due date to determine when to begin a job

question

best-of-breed

answer

the selection of ERP modules from different vendors

question

bill of material (BOM)

answer

a list of all the materials, parts, and assemblies that make up a product, including quantities, part-component relationships, and order of assembly

question

capacity

answer

the maximum capability to produce

question

capacity requirements planning (CRP)

answer

a computerized system that projects the load from a given material plan onto the capacity of a system and identifies underloads and overloads

question

cloud computing

answer

on-demand IT services usually delivered over the internet

question

cumulative lead time

answer

the total length of time required to manufacture a product; also, the longest path through a product structure

question

customer relationship management (CRM)

answer

software that plans and executes business processes that involved customer interaction, such as sales, marketing, fulfillment, and customer service

question

cycle counting

answer

a method for auditing inventory accuracy that counts inventory and reconciles errors on a cyclical schedule rather than once a year

question

efficiency

answer

how well a machine or worker performs compared to a standard output level

question

enterprise resource planning (ERP)

answer

software that organizes and manages a company's business processes by sharing information across functional areas

question

expedite

answer

to speed up orders so that they are completed in less than their normal lead time

question

explosion

answer

the process of determining requirements for lower-level items by multiplying the planned orders of parent items by the quantity per assembly of component items

question

forward scheduling

answer

scheduling forward from today's date to determine the earliest time a job can be completed

question

item master file

answer

a file that contains inventory status and descriptive information on every item in inventory

question

load

answer

the standard hours of work assigned to a facility

question

load leveling

answer

the process of balancing underloads and overloads

question

load percent

answer

the ration of load to capacity

question

load profile

answer

a chart that compares released orders and planned orders with the capacity of a facility

question

lot sizing

answer

determining the quantities in which items are usually made or purchased

question

master production schedule (MPS)

answer

a schedule for the production of end items (usually final products). It drives the MRP process that schedules the production of component parts

question

material requirements planning (MRP)

answer

a computerized inventory control and production planning system for generating purchase orders and work orders of materials, components, and assemblies

question

modular bill of material

answer

a special bill of material used to plan the production of products with many optional features

question

netting

answer

the process of subtracting on-hand quantities and scheduled receipts from gross requirements to produce net requirements

question

periodic order quantity

answer

a lot sizing technique that orders at set time intervals

question

product lifecycle management (PLM)

answer

software that manages the product development process, product lifecycles, and design collaboration with suppliers and customers

question

product structure file

answer

a file that contains computerized bills of material for all products

question

software as a service (SaaS)

answer

on-demand access of software from a provider's site

question

SOA

answer

service oriented architecture; a software architecture that bundles together stand-alone services

question

supply chain management (SCM)

answer

software that plans and executes business processes related to supply chains

question

time fence

answer

a date specified by management beyond which no changes in the master schedule are allowed

question

time-phased bill of material

answer

an assembly chart shown against a time scale

question

time phasing

answer

the process of subtracting an item's lead time from its due date to determine when an order should be released

question

utilization

answer

the percentage of available working time that a worker spends working or a machine operating

question

XML

answer

extensible markup language; used to help different ERP systems communicate over the Internet

question

appraisal costs

answer

costs of measuring, testing, and analyzing materials, parts, products, and the productive process to make sure they conform to design specifications

question

benchmark

answer

a level of quality achievement established by one company that other companies seek to achieve

question

Black Belt

answer

in a Six Sigma program, the leader of a quality improvement project; a full-time position

question

breakthrough strategy

answer

in Six Sigma, a five-step process for improvement projects: define, measure, analyze, improve, and control

question

cause-and-effect diagrma or fishbone diagram

answer

a graphical description of the elements of a specific quality problem

question

cause-and-effect matrix

answer

a grid used to prioritize causes of quality problems

question

champion

answer

a member of top management who is responsible for project success in a Six Sigma program

question

cost index

answer

the ratio of quality cost to manufacturing cost

question

designed for Six Sigma (DFSS)

answer

a systematic methodology to design products and processes that meet customer expectations and can be produced at Six Sigma quality levels

question

external failure costs

answer

costs of poor quality incurred after the product gets to the customer; that is, customer service, lost sales, and so on.

question

fitness for use

answer

a measure of how well a product or service does what the consumer things it is supposed to do and wants it to do

question

Green Belt

answer

in a Six Sigma program, a project team member, a part-time position

question

index numbers

answer

ratios that measure quality costs relative to some base accounting values such as sales or product units

question

internal failure costs

answer

costs of poor-quality products discovered during the production process - that is, scrap, rework, and the like

question

kaizen

answer

involving everyone in the workplace, in a process of gradual, organized, and continuous improvement

question

labor index

answer

the ratio of quality cost to direct labor hours

question

Lean Six Sigma

answer

integrating Six Sigms and lean systems

question

Master Black Belt

answer

in a Six Sigma program, a teacher and mentor for Black Belts; a full-time position

question

Pareto analysis

answer

a method for identifying the causes of poor quality, which usually shows that most quality problems result from only a few causes

question

participative problem solving

answer

involving employees directly in the quality-management process to identify and solve problems

question

partnering

answer

a relationship between a company and its supplier based on mutual quality standards

question

prevention costs

answer

costs incurred during product design and manufacturing that prevent nonconformance to specifications

question

process flowchart

answer

a diagram of the steps in a job, operation, or process

question

production index

answer

the ratio of quality cost to final product units

question

productivity

answer

a meaure of effectiveness in converting resources into products, generally computed as output divided by input

question

quality circles

answer

a small, voluntary group of workers and supervisors formed to address quality problems in their area

question

quality impact on productivity

answer

fewer defects increase output and quality improvement reduces inputs

question

quality management system (QMS)

answer

a system to achieve customer satisfaction that complements other company systems

question

quality of conformance

answer

the degree to which the product or service meets the specifications required by design during the production process

question

quality of design

answer

the degree to which quality characteristics are designed into a product or service

question

quality-productivity ratio (QPR)

answer

a productivity index that includes productivity and quality costs

question

sales index

answer

that ratio of quality cost to sales

question

Six Sigma

answer

a measure of how much a given product or process deviates from perfection, or zero defects; the basis of a quality-improvement program

question

Siz Sigma process

answer

inclues four basic steps - align, mobilize, accelerate, and govern

question

total quality management (TQM)

answer

the management of quality throughout the organization at all management levels and across all areas

question

yield

answer

a measure of productivity; the sum of good-quality and reworked units

question

aggregate planning

answer

the process of determining the quantity and timing of production over an intermediate time frame

question

available-to-promise

answer

the quantity of iteams that can be promised to the customer; the difference between planned production and customer orders already received

question

backlog

answer

accumulated customer orders to be completed at a later date

question

backordering

answer

ordering an item that is temporarily out-of-stock

question

capable-to-promise

answer

the quantity of items that can be produced and made available at a later date

question

chase demand

answer

an aggregate planning strategy that schedules production to match demand and absorbs variations in demand by adjusting the size of the workforce

question

collaborative planning

answer

sharing information and synchronizing production plans across the supply chain

question

disaggregation

answer

the process of breaking down the aggregate plan into more detailed plans

question

level production

answer

an aggregate planning strategy that produces units at a constant rate and uses inventory to absorb variations in demand

question

lost sales

answer

forfeited sales for out-of-stock items

question

management coefficients model

answer

a regression technique for aggregate planning

question

mixed strategy

answer

varying two or more capacity factors to determine a feasible production plan

question

peak demand

answer

staffing for high levels of customer service

question

pure strategy

answer

varying only one capacity factor in aggregate planning

question

sales and operations planning (S&OP)

answer

a process for coordinating supply and demand

question

search decision rule (SDR)

answer

a pattern dearch technique for aggregate planning

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