question

defect

answer

any instance when a process fails to satisfy its customer

question

prevention costs

answer

costs associated with preventing defects before they happen

question

appraisal costs

answer

costs incurred when the firm assesses the level of performance of its processes

question

internal failure costs

answer

costs resulting from defects that are discovered during the production of a service or product

question

external failure costs

answer

costs tht arise when a defect is discovered after the customer receives the service or product

question

warranty

answer

a written guarantee that the producer will replace or repair defective parts or perform the service to the customer's satisfaction

question

total quality management

answer

philosophy stresses 3 principles for achieving high levels of process performance and quality. 1. customer satisfaction 2. employee involvement 3. continuous improvement in performance

question

quality

answer

term used by customers to describe their general satisfaction with a service or product

question

quality at the source

answer

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

question

teams

answer

small groups of people who have a common purpose, set their own performance goals and approaches, and hold themselves accountable for success

question

employee empowerment

answer

an approach to teamwork that moves responsibility for decisions further down the organizational chart-to the level of the employee actually doing the job

question

quality circles

answer

another name for problem-solving teams, small groups of supervisors and employees who meet to identify, analyze, and solve process and quality problems

question

special-purpose teams

answer

groups that address issues of paramount concern to management, labor, or both

question

self-managed team

answer

a small group of employees who work together to produce a major portion, or sometimes all, of a service or product

question

continuous improvement

answer

the philosophy of continually seeking ways to improve processes based on a japanese concept called KAIZEN

question

plan-do-study-act cycle

answer

cycle used by firms actively engaged in continuous improvement to train their work teams in problem solving

question

six sigma

answer

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

question

green belt

answer

employee who achieved first level of training in a six sigma program and spends part of his or her time teaching and helping teams with their projects

question

black belt

answer

an employee who reached who reached the highest level of training in a six sigma program and spends all of his or her time teaching and leading teams involved in six sigma projects

question

master black belt

answer

full-time teachers and mentors to several black belts

question

acceptable quality level

answer

the quality level desired by the consumer

question

acceptance sampling

answer

application of statistical techniques to determine whether a quantity of material should be accepted or rejected based on the inspection or test of a sample

question

statistical process control

answer

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

question

variables

answer

service or product characteristics ex. weight length volume or time that can be measured

question

attributes

answer

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

question

sampling plan

answer

plan that specifies a sample size, the time between successive samples, and decision rules that determine when action should be taken

question

sample size

answer

quantity of randomly selected observations of process outputs

question

common causes of variation

answer

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

question

assignable causes of variation

answer

any variation-causing factors that can be identified and eliminated

question

control chart

answer

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

question

type 1 error

answer

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

question

type 2 error

answer

error occur when the conclusion is that the process is in control and only randomness is present, when actually is out of statistical control

question

r-chart

answer

chart used to monitor process variability

question

x-bar chart

answer

used to see whether the process is generating output, on average, consistent with a target value set by management for the process or whether its consistent with its past performance

question

p-chart

answer

chart used for controlling the proportion of defective services or products generated by the process

question

c-chart

answer

chart used for controlling the number of defects when more than one defect can be present in a service or product

question

nominal value

answer

target for design specifications

question

process capability

answer

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

question

tolerance

answer

allowance above or below the nominal value

question

process capability index

answer

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

question

process capability ratio

answer

the tolerance width divided by six standard deviations

question

quality engineering

answer

approach combining engineering and statistical methods to reduce costs and improve quality to optimizing product design processes

question

quality loss function

answer

rationale that a service or product that barely conforms to the specifications is more like a defective service or product that a perfect one

question

ISO 9001:2008

answer

set of standards governing documentation of a quality program

question

ISO 14000:2004

answer

documentation standards that require participating companies to keep track of their raw materials use and their generation, treatment, and disposal of hazardous wastes

question

ISO 26000:2010

answer

international guidelines for organizational social responsibility

question

baldridge performance excellence program

answer

award promotes, recognizes, and publicizes quality strategies and achievements

question

process analysis

answer

documentation and detailed understanding of how work is performed and how it can be redesigned.

question

suggestion system

answer

voluntary system by which employees submit their ideas on process improvements

question

design team

answer

group of knowledgeable, team oriented individuals who work at one or more steps in the process, conduct the process analysis, and make the necessary changes

question

metrics

answer

performance measures that are established for a process and the steps within it

question

swim lane flowchart

answer

groups functional areas responsible for different sub-processes into lanes, appropriate when business process spans several department boundaries

question

service blueprint

answer

special flowchart of a service process that shows which steps have high customer contact

question

time study

answer

4 steps in setting a time standard for a job or process 1. selecting work elements 2. timing the elements 3. determining sample size 4. final standard

question

elemental standard data

answer

database of standards compiled by a firms analysts for basic elements that they can draw on later to estimate the time required for a particular job

question

predetermined data approach

answer

divides each work element into a series of micromotions

question

work sampling

answer

process estimates the proprtion of time spent by people or machines on different activities based on observations randomized over time

question

learning curve

answer

line displays the relationship between processing time and the cumulative quantity of a product or service produced

question

process chart

answer

way of documenting all the activitied performed by a person or group of people, at a workstation, with a customer, or on materials

question

checklist

answer

form used to record the frequency of occurence of certain process failures

question

process failure

answer

performace shortfall ex. error, daley, environmental waste, rework

question

histogram

answer

summarizes data measured on a continuous scale

question

pareto chart

answer

bar chart on which factors are plotted along the horizontal axis in decreasing order of frequency

question

scatter diagram

answer

plot of 2 variables shwoing whether they are related

question

cause-and-effect diagram

answer

diagram relates a key performance problem to its potential causes

question

benchmarking

answer

systematic procedure that measures a firms processes, services, and products against those of industry leaders

question

lean systems

answer

operations systems that maximize the value added by each of a company's activities by removing waste and delays from them

question

just in time philosophy

answer

waste can be eliminated by cutting unnecessary capacity or inventory and removing non-value added activities in operations

question

JIT system

answer

organizes the resources, information flows, and decision rules that enable a firm to realize the benefits of JIT principles

question

lot

answer

a quantity of items that are processed together

question

single-digit setup

answer

goal of having a setup time of less than 10 minutes

question

push method

answer

production of the item begins in advance of customer needs

question

pull method

answer

customer demand activates production of the service or item

question

jidoka

answer

automatically stopping the process when something is wrong and then fixing the problems on the line itself as they occur

question

poka-yoke

answer

mistake-proofing methods aimed at designing fail-safe systems that minimize human error

question

takt time

answer

cycle time method to match the rate of production to the rate of sales or consumption

question

heijunka

answer

leveling of production load by both volume and product mix

question

mixed-model assembly

answer

type of assembly that produces a mix of models in smaller lots

question

5s

answer

5 workplace practices: sorting, straightening, shining, standardizing, and sustaining- that are conductive to visual controls and lean production

question

group technology

answer

option for achieving line-flow layouts with low volume processes, creates cells not limited to just one worker and has a unique way of slecting work to be done by the cell

question

value streaming mapping

answer

qualitative lean tool for eliminating waste (mud a) that involves a current state drawing, a future state drawing, and an implementation plan

question

kanban

answer

"card" "visible record" refers to cards used to control the flow of production through a factory

question

supply chain design

answer

designing a firms supply chain to meet the competitive priorities of the firms operations strategy

question

average aggregate inventory value

answer

total average value of all items held in inventory for a firm

question

weeks of supply

answer

inventory measure obtained by dividing the average aggregate inventory value by sales per week at cost

question

inventory turnover

answer

annual sales at cost divided by average aggregate inventory value maintained during the year

question

centralized placement

answer

keeping all inventory of a product at a single location such as a firms manufacturing plant or a warehouse and shipping directly to each of its customers

question

inventory pooling

answer

reduction in inventory and safety stock because of the merging of variable demands from customers

question

forward placement

answer

locating stock closer to customers at a warehouse, dc, wholesaler, or retailer

question

channel assembly

answer

process of using members of the distribution channel as if they were assembly stations in the factory

question

outsourcing

answer

paying suppliers and distributors to perform processes and provide needed services and materials

question

make or buy decision

answer

managerial choice between whether to outsource a process or do it in house

question

backward integration

answer

firms movement upstream toward the sources of raw materials, parts and services through acquisitions

question

forward integration

answer

aquiring more channels of distribution, suh as distribution centers and retail stores, or even business customers

question

offshoring

answer

supply chain strategy that involves moving processes to another country

question

supply chain integration

answer

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

question

bullwhip effect

answer

ordering patterns experience increasiing variance as you proceed upstream in the chain

question

SCOR model

answer

framework that focuses on a basic supply chain of plan, source, make, delivery, and reutnr processes, repeated again and agin along the supply chain

question

concurrent engineering

answer

brings product engineers, process engineers, marketers, buyers, information specialists, quality specialists, and suppliers together to design a product and the processes that will meet customer expectations

question

purchasing

answer

activity that decides which suppliers to use, negotiates contracts, and determines whether to buy locally

question

green purchasing

answer

identifying, assessing and managing the flow of environmental waste and finding ways to reduce it and minimize its impact on the environment

question

early supplier involvement

answer

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

question

presourcing

answer

suppliers are selected early in a products concept development stage and are given significant responsibility for the design of certain components or systems of the product

question

value analysis

answer

systematic effor to reduce the cost or improve the performance of services or products, either purchased or produced

question

competitive orientation

answer

supplier relation that views negotiations between buyer and seller as a zero-sum game. one side loses, the other side gains, short term advatanes are prized over long-term commitments

question

cooperative orientation

answer

supplier relation in which the buyer and seller are partners, each helping the other as much as possible

question

sole sourcing

answer

awarding of a contract for a service or item to only one supplier

question

electronic data interchange

answer

technology that enables the transmission of routine business documents having a standard format from computer to computer over telephone or direct leased lines

question

catalog hubs

answer

system whereby suppliers post their catalog of items of the internet and buyers select what they need and purchase them electronically

question

exchange

answer

electronic marketplace where buying firms and selling firms come together to do business

question

auction

answer

marketplace where firms place competitive bids to buy something

question

radio frequency identification

answer

method for identifying items through the use of radio signals from a tag attached to an item

question

vendor-managed inventories

answer

system in which the supplier hsa access to the customers inventory data and is responsible for maintaining the inventory on the customer's site

question

cross-docking

answer

packing of products on incoming shipments so that they can be easily sorted at intermediate warehouses for outgoing shipments based on their final destinations

question

electronic commerce

answer

application of information and communication technology anywhere along the supply chain of business processes

Operations Management Final – Flashcards with Answers

Unlock all answers in this set

Haven't found what you were looking for?

Search for samples, answers to your questions and flashcards