Test 2 Operations Management

Flashcard maker : Lily Taylor
process strategy
an organization’s approach to transforming resources into goods and services
Process Focused
they provide a high degree of product flexibility as products move intermittently between processes. Each process is designed to perform a wide variety of activities and handle frequent changes. Also called intermittent processes
repetitive process
classic assembly line. Widely used in the assembly of virtually all automobiles and household appliances. A product-oriented production process that uses modules
modules
parts or components of a product previously prepared, often in a continuous process
product focused
high-volume, low-variety. organized around products. They are also called continuous processes, because they have very long, continuous production runs.
Mass customization
the rapid, low-cost production of goods and services that fulfill increasingly unique customer desires.
Build-to-order
producing to customer orders, not forecasts
postponement
product and process design that allow customization to be scheduled late in the production process also contribute to efficient mass customization
crossover chart
the comparison of processes can be further enhanced by looking at the point where the total cost of the processes changes
flow diagram
a schematic or drawing of the movement of material, product, or people
time-function mapping (process mapping)
a flow diagram, but with time added on the horizontal axis
value-stream mapping (VSM)
takes an expanded look at where value is added (and not added) in the entire production process, including the supply chain
Process charts
use symbols, time, and distance to provide an objective and structured way to analyze and record the activities that make up a process
Service blueprinting
a process analysis technique that focuses on the customer and the provider’s interaction with the customer
flexibility
the ability to respond with little penalty in time, cost, or customer value
computer numerical control (CNC)
Machinery with its own computer and memory
Automatic identification systems (AISs)
Making data digital is done via computer keyboards, bar codes, radio frequencies, optical characters on bank checks, and so forth. Help us move data into electronic form, where it is easily manipulated
radio frequency identification (RFID)
integrated circuitry with its own tiny antennas that use radio waves to send signals a limited range- usually a matter of yards
Process control
the use of information technology to monitor and control a physical process
Vision systems
combine video cameras and computer technology and are often used in inspection roles
Robots
mechanical devices that may have a few electronic impulses stored on semiconductor chips that will activate motors and switches
automated storage and retrieval systems (ASRSs)
provide for the automatic placement and withdrawal of parts and products into and from designated places in a warehous
Automated guided vehicles (AGVs)
electronically guided and controlled carts used in manufacturing to move parts and equipment
flexible manufacturing system (FMS)
When a central computer provides instructions to each workstation and to the material-handling equipment, the system is known as an automated work cell
computer-integrated manufacturing (CIM)
integrated with inventory control, warehousing, and shipping as part of a flexible manufacturing system
Process redesign
the fundamental rethinking of a business processes to bring about dramatic improvements in performance
Capacity
the “throughput,” or the number of units a facility can hold, receive, store, or produce in a period of time
Design capacity
the maximum theoretical output of a system in a given period under ideal conditions
Effective capacity
the capacity a firm expects to achieve given the current operating contraints
Utilization
simply the percent of design capacity actually achieved
Efficiency
the percent of effective capacity actually achieved
break-even analysis
to find the point, in dollars and units, at which costs equal revenue
Fixed costs
costs that continue even if no units are produced
Variable costs
those that vary with the volume of units produced
Contribution
the difference between selling price and variable cost
Revenue function
revenue begins at the origin and proceeds upward to the right, increasing by the selling price of each unit
net present value
a means of determining the discounted value of a series of future cash receipts
Office layouts
require the grouping of workers, their equipment, and spaces to provide for comfort, safety, and movement of information
Retail layouts
based on the idea that sales and profitability vary directly with customer exposure to products
Slotting fees
fees manufacturers pay to get their goods on the shelf in a retail store or supermarket chain
servicescape
the physical surroundings in which the service is delivered and how the surroundings have a humanistic effect on customers and employees
warehouse layout
to find the optimum trade-off between handling cost and costs associated with warehouse space
Cross-docking
to avoid placing materials or supplies in storage by processing them as they are received
random stocking
used in warehousing to locate stock wherever there is an open location
fixed-position layout
the project remains in one place and workers and equipment come to that one work area
Process-oriented layout
can simultaneously handle a wide variety of products or services
job lots
groups or batches of parts processed together
work cell
reorganizes people and machines that would ordinarily be dispersed in various departments into a group so that they can focus on making a single product or a group of related products
CRAFT
A computer program that systematically examines alternative departmental rearrangements to reduce total material handling costs
Takt time
pace of production to meet customer demands
focused work center
moves production from a general-purpose, process-oriented facility to a large work cell that remains part of the present plant
focused factory
A facility designed to produce similar products or components
fabrication line
builds components, such as automobile tires or metal parts fro a refrigerator, on a series of machines
assembly line
puts the fabricated parts together at a series of workstations
assembly-line balancing
obtaining output at each workstation on a production line so delay is minimized
cycle time
The maximum time that a product is allowed at each workstation
heuristics
problem solving using procedures and rules rather than mathematical optimization
Forecasting
the art and science of predicting future events
Economic forecasts
planning indicators that are valuable in helping organizations prepare medium-to long-range forecasts
Technological forecasts
Long-term forecasts concerned with the rates of technological progress
Demand forecasts
Projections of a company’s sales for each time period in the planning horizon
Quantitative forecasts
forecasts that employ one or more mathematical models that rely on historical data and/or causal variables to forecast demand
Qualitative forecasts
forecasts that incorporate such factors as the decision maker’s intuition, emotions, personal experiences, and value system
Jury of executive opinion
A forecasting technique that takes the opinion of a small group of high-level managers and results in a group estimate of demand
Delphi method
A forecasting technique using a group process that allows experts to make forecasts
Sales force composite
A forecasting technique based on salespersons’ estimates of expected sales
Consumer market survey
A forecasting method that solicits input from customers or potential customer regarding future purchasing plans
Time series
A forecasting technique that uses a series of past data points to make a forecast
Naive approach
A forecasting technique that assumes demand in the next period is equal to demand in the most recent period
Moving averages
A forecasting method that uses an average of the n most recent period of data to forecast the next period
Exponential smoothing
A weighted-moving-average forecasting technique in which data points are weighted by an exponential function
Smoothing constant
The weighted factor used in an exponential smoothing forecast, a number between 0 and 1
Mean absolute deviation (MAD)
A measure of the overall forecast error for a model
Mean squared error (MSE)
The average of the squared differences between the forecasted and observed values
Mean absolute percent error (MAPE)
The average of the absolute differences between the forecast and actual values, expressed as a percent of actual values
Trend projection
A time-series forecasting method that fits a trend line to a series of historical data points and then projects the line into the future for forecasts
Seasonal variations
Regular upward or downward movements in a time series that tie to recurring events
Cycles
patterns in the data that occur every several years
Linear-regression analysis
A straight-line mathematical model to describe the functional relationships between independent and dependent variables
Standard error of the estimate
A measure of variability around the regression line- its standard deviation
Coefficient of correlation
A measure of the strength of the relationship between two variables
Coefficient of determination
A measure of the amount of variation in the dependent variable about its mean that is explained by the regression equation
Multiple regression
An associative forecasting method with more than one independent variable
Tracking signal
A measurement of how well the forecast is predicting actual values
Bias
A forecast that is consistently higher or consistently lower than actual values of a time series
Adaptive smoothing
An approach to exponential smoothing forecasting in which the smoothing constant is automatically changed to keep error to a minimum
Focus forecasting
Forecasting that tries a variety of computer models and selects the best one for a particular application
D) Forecasting is exclusively an objective predication
Which of the following is NOT true regarding forecasting?
A) Forecasting may involve taking historical data and projecting them into the future with a mathematical model
B) Forecasting is the art and science of predicting future events
C) A forecest is usually classified by the future time horizon that it covers
D) Forecasting is exclusively an objective prediction
C) Short Range
The forecasting time horizon that would typically be easiest to predict for would be the
A) long range
B) medium range
C) Short Range
D) Intermediate range
A) An economic forecast
A forecast that addresses the business cycle by predicting planning indicators is
A) an economic forecast
B) an environmental forecast
C) a technological forecast
D) a demand forecast
D) a demand forecast
A forecast that projects a company’s sales is
A) an environmental forecast
B) a technological forecast
C) an economic forecast
D) a demand forecast
B) collaborative, planning, forecasting, and replenishment
CPER is
A) complete, planning, forecasting, and replenishment
B) collaborative, planning, forecasting, and replenishment
C) collaborative, partner, forecasting, and replenishment
D) complete, partner, forecasting, and replenishment
D) create significantly more accurate information that can power the supply chain
The goal of CPFR is to
A) ensure product innovation
B) determine which model needs to be used to predict future events
C) Create good relations with suppliers
D) create significantly more accurate information that can power the supply chain
B) When excess capacity exists, cost can decrease
Which of the following statements is NOT true?
A) when capacity is inadequate, market share can shrink
B) when excess capacity exists, cost can decrease
C) when excess capacity exists, cost can increase
D) when capacity is inadequate, customer can be lost
D) Determine the use of the forecast
Which of the following is the FIRST step in a forecasting system?
A) select the forecast model(s)
B) select the items to be forecasted
C) Determine the time horizon of the forecast
D) Determine the use of the forecast
A) Validate and implement the results
Which of the following is the FINAL step in a forecasting system?
A) Validate and implement the results
B) Make the forecast
C) Gather the data needed to make the forecast
D) Select the forecast model(s)
D) Outside factors that we cannot predict or control often impact the forecast
Which of the following is a reality each company faces regarding its forecasting system?
A) product family forecast are less accurate than individual product forecasts
B) After automating their predictions using computerized forecasting software, firms closely monitor only the product items whose demand is stable
C) Most forecasting techniques assume there is no underlying stability in the system
D) Outside factors that we cannot predict or control often impact the forecast
D) select the forecasting model(s)
Which of the following forecasting steps comes directly after determining the time horizon of the forecast?
A) Gather the data
B) Select the items to be forecasted
C) make the forecast
D) select the forecasting model(s)
C) Sales force composite
Which forecasting model is based upon salespersons’ estimates of expected sales?
A) Delphi method
B) Jury of executive opinion
C) Sales force composite
D) market survey
A) exponential smoothing
Which of the following is a quantitative forecasting method?
A) exponential smoothing
B) market survey
C) jury of executive opinion
D) sales force composite
D) Delphi method
Which of the following is a qualitative forecasting method?
A) trend projection
B) naive approach
C) linear regression
D) Delphi method
B) Linear regression
Which of the following is NOT a time-series model?
A) moving averages
B) linear regression
C) naive approach
D) exponential smoothing
To build a production process that meets customer requirements and product specifications within cost and other managerial constraints
What is the objective of a process strategy?

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