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WGU C215 Textbook Questions with complete solutions
One common definition of quality is ________, which focuses on measuring how well the product or service meets targets and tolerances determined by its des... [Show More] igners. Conformance to specification. What is fitness for use? It evaluates how well the product performs for its intended use. The cost of defect correction is less costly the earlier defects are found. Costs of quality inspections, testing, auditing, and test equipment are examples of __________ costs. Appraisal Warranty claims, customer complaints, and costs of litigation are examples of ________ costs. External failure According to Dr. Taguchi's view of quality as conformance values move away from the target, loss increases as a quadratic function _______ is the philosophy that seeks to improve quality by eliminating the causes of product defects. Total quality management Who coined the saying "quality is free"? Philip Crosby A chart used in TQM that identifies potential causes of particular quality problems is called a Cause-and-effect diagram. The purpose of the ISO 9000 is to establish international quality standards. ISO 14000 provides tools to identify and report on the adverse impacts of business, including systems and standards for promoting environmental responsibility What is a common cause for TQM failure? Lack of top management support. Companies that have attained the benefits of TQM have developed a process to identify the meaning of customer-defined quality. TQM is a complete philosophy that has to be embraced with true belief. The chance that a lot containing an acceptable quality level will be rejected. Producers risk The amount by which the line efficiency falls short of 100 percent. Balance delay Statistics used to describe quality characteristics and relationships. Descriptive statistics What is the term for inspecting a random sample of an output from a process and determining if it produces products within a predetermined range? Statistical process control What are the two causes of variation? Common and assignable Which of the following is an example of common causes of varitation? Slight differences in machines What are assignable causes of variation? Causes that can be identified and eliminated What happens when a plot of data falls outside preset control limits? The process is out of control. A control chart for ______________ is used to monitor characteristics that can be measured and have a continuous scale. variables A control chart for _________ is used to monitor characteristics that have discrete values and can be counted. attributes What process width is typically used when computing the process capability index Cp? 6 standard deviations What does a Cp = 1 tell us? It means that the process variability just meets specifications; the process is minimally capable. The six sigma approach is organized around what plan Define, Measure, Analyze, Improve, Control Six Sigma quality implies how many average defects per million? 3.4 What makes acceptance sampling different from statistical process control? Acceptance sampling is done before or after the process. What is the process of randomly inspecting a certain number of items from a lot or batch in order to decide whether to accept or reject the entire branch? Acceptance sampling Which of the following is true with regard to implementing SPC? How often to inspect depends on product cost and product volume. Which of the following is true with regard to quality inspection? Processes that do not change frequently do not need to be inspected often. Which of the following is an issue that complicates quality control in service organizations? The presence of the customer during service delivery. What is a reason that services have lagged behind manufacturing in the use of statistical process control? It is difficult to measure the quality of a service. The ease with which the product can be made is its manufacturability What is reverse engineering? Acquiring a competitor's product and studying its design features. Which of the following are the steps in the product design process? Idea development, product screening, preliminary design & testing, and final design. Which one of these refers to reducing the number of parts and features of the product whenever possible? Design simplification What refers to the use of common and interchangeable parts? Design standardization _________ is a series of guidelines to follow in order to produce a product easily and profitably. Design for manufacture What are the stages of the product life cycle? introduction, growth, maturity, decline Building a bridge over the Mississippi river for a new highway uses a ________ process. project Which of the following choices of process types shows the degree of product standardization from lowest to highest? Project, batch, line, continuous. What processes are used to produce a variety of products with different processing requirements in lower volumes? Intermittent Which strategy produces products to customer specification after an order has been recieved? Make-to-order Throughput time is the average amount of time a product takes to move through the system. Productivity is a measurement of how well a company uses its resources. Efficiency is a measurement of performance relative to a standard. What type of operations focus on products in the late stage of the life cycle? Repetitive Intermittent operations are designed to focus on producing lower volumes of products with differing characteristics. [Show Less]
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WGU C215 Operations Management question and answer 2023 rated A+
3D Printing 3D Printing is three-dimensional printing technology that deposits materials like plastics and metals in thick layers one atop the other with ... [Show More] the process gradually building up one layer at a time until the object is produced. A broad view of JIT A philosophy that encompasses the entire organization. lean production/lean systems 00:39 01:24 ABC classification A method for determining level of control and frequency of review of inventory items. A - Typically 20% of the items accounting for 80% of the inventory value. (continuous review) B - Typically an additional 30% of the items accounting for 15% of the inventory value. (periodic review) C - Typically the remaining 50% of the items accounting for only 5% of the inventory value. (two-bin system) Acceptable quality level (AQL) The small percentage of defects that consumers are willing to accept. Acceptance sampling The process of randomly inspecting a sample of goods and deciding whether to accept the entire lot based on the results. Used where inspection is expensive, volume is high, or inspection is destructive. ٭ Action bucket The current time period. Action notices Output from an MRP system that identifies the need for an action to be taken. activity-on-node network diagramming notation that places activities in the nodes and arrows to signify precedence relationships advertising revenue model provides users with information on services and products and provides an opportunity for suppliers to advertise affiliate revenue model companies receive a referral fee for directing business to an affiliate aggregate plan (also called the production plan) includes the budgeted levels of finished products, inventory, backlogs, workforce size, and aggregate production rate needed to support the marketing plan (during the next six to eighteen months) ALDEP and CRAFT computer software packages for designing process layouts allowance factor the amount of time the analyst allows for personal time, fatigue, and unavoidable delays alternative workplace brings work to the worker rather than the worker to the workplace anticipation inventory inventory built in anticipation of future demand application service provider (ASP) sets up and runs ERP systems appraisal costs costs incurred in the process of uncovering defects assemble-to-order strategy produces standard components that can be combined to customer specifications assignable causes of variation causes that can be identified and eliminated Attribute A product characteristic that has a discrete value and can be counted. automated order entry system a method using telephone models to send digital orders to supplier Automation Using machinery to perform work without human operators. Average number of jobs in the system Measures work-in-process inventory. Average outgoing quality (AOQ) The expected proportion of defective items that will be passed to the customer under the sampling plan. Back order Delaying delivery to the customer until the item becomes available. back orders unfilled customer orders Backward integration Owning or controlling sources of raw materials and components. ٭ backward scheduling starts with the due date for an order and works backward to determine the start date for each activity; scheduling method that determines when the job must be started to be done on the due date Balance delay The amount by which the line efficiency falls short of 100 percent. Balance delay (%) = 100 − efficiency batch process a type of process used to produce a small quantity of products in groups or batches based on customer orders or specifications (bakeries, education, and printing shops) behavioral feasibility degree to which the job is intrinsically satisfying to the employee benchmarking studying the business practices of other companies for purposes of comparison best operating level the volume of output that results in the lowest average unit cost beta probability distribution typically represents project activities bill of material (BOM) lists all the subassemblies, component parts, and raw materials that go into an end item and shows the usage quantity of each required block plan schematic showing the placement of resources in a facility; Table that gives the number of trips or units of product moved between any pair of departments. Bottleneck longest task in the process Bottom-round management Consensus management by committees or teams. break-even analysis technique used to compute the amount of goods that must be sold just to cover costs broad view of JIT a philosophy that encompasses the entire organization broad view of the organization tasks and procedures are important only if they meet the company's overall goals bullwhip effect inaccurate or distorted demand information created in the supply chain Business strategy A long-range plan for a business. Business-to-business (B2B) Electronic commerce between businesses. business-to-business e-commerce businesses selling to and buying from other businesses; on-line businesses sell to individual consumers Business-to-consumer (B2C) e-commerce Online businesses sell to individual consumers. Business-to-customers (B2C) Electronic commerce between businesses and their customers. Capacity the maximum output rate that can be achieved by a facility capacity cushion additional capacity added to regular capacity requirements to provide greater flexibility capacity planning the process of establishing the output rate that can be achieved by a facility ٭ capacity planning using overall planning factors (CPOPF) a rough-cut capacity planning technique. MPS items are multiplied by historically determined planning factors for key resources capacity requirements planning (CRP) determines the labor and machine resources needed to fill the open and planned orders generated by the M RP capacity utilization percentage measure of how well available capacity is being used capacity-based options a group of options that allow the firm to change its current operating capacity Capacity-constrained resources Bottleneck caused by inefficient usage. Capital costs The higher of either the cost of the capital or the opportunity cost for the company. Causal models Based on the assumption that the variable being forecast is related to other variables in the environment. cause-and-effect diagram a chart that identifies potential causes of particular quality problems ٭ C-chart A control chart used to monitor the Number of defects per unit. ٭ cell manufacturing placement of dissimilar machines and equipment together to produce a family of products with similar processing requirements Cells Hybrid layouts that create groups of products based on similar processing requirements. chase aggregate plan a planning approach that varies production to meet demand each period checklist a list of common defects and the number of observed occurrences of these defects ٭ Closed-loop MRP An MRP system that includes production planning, master production scheduling, and capacity requirements planning. common causes of variation random causes that cannot be identified ٭ Competitive priorities Capabilities that the operations function can develop in order to give a company a competitive advantage in its market. 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C215 WGU Operations Mgmt- Post Exam already passed
Demand-Based Options includes two reactive options and one proactive option Reactive option the operations department uses inventories and back or... [Show More] ders to react to demand fluctuations Proactive option marketing tries to shift the demand patterns to minimize demand fluctuations Capacity-Based Options changes output capacity to meet demand finished goods inventory used to absorb demand fluctuations; allows your company to develop a stable work environment Shifting demand proactive marketing approach to leveling demand in which your company tries to change consumer buying patterns by offering incentives level aggregate plan maintains a constant workforce and produces the same amount of product in each time period of the plan The level plan is often used with make-to-stock products such as... stereos, kitchen appliances, and hardware To calculate the number of employees needed... divide the number of units needed per month by the monthly output per employee chase aggregate plan produces exactly what is needed to satisfy demand during each period This may be a better option when a company produces make-to-order products such as custom cabinets, special-purpose equipment, one-of-a-kind items, or highly perishable products chase aggregate plan hybrid aggregate plan uses a combination of options. With this plan, your company might maintain a stable workforce supplemented by an inventory buildup and some overtime production to meet demand. Sales and operations planning integrates the medium-range functional plans developed by marketing, operations, engineering, and finance aggregate plan Includes the budgeted levels of finished products, inventory, backlogs, workforce size, and aggregate production rate needed to support the marketing plan Also called production plan Aggregate plan Supports marketing plan Aggregate plan master production schedule The anticipated production schedule for the company expressed in specific configurations, quantities, and dates point of departure the percentage of normal capacity your company is currently operating at Duration of the change the length of time you expect to need the different level of capacity Steps to Develop an Aggregate Plan Step 1 Identify the type of aggregate plan Step 2 Based on the aggregate plan, determine the aggregate production rate. Step 3 Calculate the size of the workforce. Step 4 Test the aggregate plan. Step 5 Evaluate the plan's performance Psychological criteria a subjective definition that focuses on the judgmental evaluation of what constitutes product or service quality support services how the quality of a product or service is judged Value for price paid a definition of quality that consumers often use for product or service usefulness Conformance to specifications measures how well the product or service meets the targets and tolerances determined by its designers Fitness for use focuses on how well the product performs its intended function or use continuous improvement A philosophy of never-ending improvement. benchmarking Studying the business practices of other companies for purposes of comparison. plan-do-study-act (PDSA) cycle describes the activities a company needs to perform in order to incorporate continuous improvement in its operation external customers those that purchase the company's goods and services internal customers employees of the organization who receive goods or services from others in the company quality circle A team of volunteer production employees and their supervisors who meet regularly to solve quality problems. fishbone diagrams cause and effect diagrams cause and effect diagrams A chart that identifies potential causes of particular quality problems. flowchart a schematic diagram of the sequence of steps involved in an operation or process. It provides a visual tool that is easy to use and understand checkists a list of common defects and the number of observed occurrences of these defects control chart used to evaluate whether a process is operating within expectations relative to some measured value such as weight, width, or volume scatter diagram graphs that show how two variables are related to one another. What diagram? as production speed increases, so does the number of defects. Scatter diagram Pareto Analysis a technique used to identify quality problems based on their degree of importance Histograms a chart that shows the frequency distribution of observed values of a variable quality function deployment (QFD) A tool used to translate the preferences of the customer into specific technical requirements. Quality at the source the belief that it is far better to uncover the source of quality problems and correct it than to discard defective items after production. Malcolm Baldrige National Quality Award An award given annually to companies that demonstrate quality excellence and establish best practice standards in industry. Deming prize A Japanese award given to companies to recognize efforts in quality improvement ISO 9000 A set of international quality standards and a certification demonstrating that companies have met all the standards specified ISO 14000 A set of international standards and a certification focusing on a company's environmental responsibility. Technical Feasibility the degree to which an individual or group of individuals is physically and mentally able to do the job Economic Feasibility the degree to which the value a job adds and the cost of having the job done create profit for the company Behavioral Feasibility the degree to which an employee derives intrinsic satisfaction from doing the job job enlargement A horizontal expansion of the job through increasing the scope of the work assigned. job enrichment A vertical expansion of the job through increased worker responsibility. job rotation Workers shift to different jobs to increase understanding of the total process. methods analysis Process concerned with the detailed process for doing a particular job. work measurement Determines how long it should take to do a job. standard time the time it should take a qualified operator, working at a sustainable pace and using the appropriate tools and process, to do the job periodic counting usually annually; satisfies auditors that the inventory records accurately reflect the value of the inventory on hand cycle counting Prespecified items are counted daily. Which continuous improvement method does C pk measure? How close one is to a target and how consistent one is with the average performance What are two important aspects of Six Sigma? People involvement, technical tools Which capacity planning measurement tells how much capacity a company is using? Capacity utilization A manufacturing company decides to open a new distribution center location in order to minimize distribution costs to warehouses or stores. What tool should the manufacturing company use to determine where the new distribution center should be located? By using the center-of-gravity approach In which organizational layout would one expect to see items arranged by type? Process Which design work system minimizes repetitiveness in tasks by assigning employees the role of planning and scheduling? Job enrichment Which work system acknowledges the benefits of employee proficiency? Labor specialization Which concept takes a total system approach to creating an efficient operation and combines concepts such as just-in-time (JIT), total quality management (TQM), and continuous improvement? lean systems [Show Less]
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WGU C215 Pre-assessment PVDC question and answer 100% correct
Which definition used for quality evaluates how well a product performs its intended function? Fitness for use Which total quality management (TQM)... [Show More] process was developed to stress management's responsibility for quality? 14 points for quality improvement 00:01 01:24 Which total quality management (TQM) process consists of 13 published standards and guidelines? ISO 9000 A company manufactures shoes using a quality management system. The company needs to put a process in place to measure any defects. The company would like to measure the number of defects and observe the number of occurrences to isolate the particular defect. Which quality tool should the company use to focus on correcting this particular issue? Checklist Which quality control tool should be used to monitor the current status or end result of a process? Control chart Which group of keywords or phrases describes the critical role that marketing plays in the total quality management (TQM) process? Enhance competition; understand consumer preferences; maintain communication with operations What is the common them in total quality management (TQM) across all functions in an organization? To satisfy customer needs Which concept of variation measures the central tendency of a set of data? Mean What do assignable causes of variation indicate? Out-of-control signals were found in the process Which continuous improvement method does Cpk measure? How close one is to a target and how consistent one is with the average performance What are two important aspects of Six Sigma? Technical tools People involvement Which strategy is used by some emergency rooms to overcome customer frustrations about long waiting times? Screen patients and fast-track those with minor ailments 00:02 01:24 Which two factors affect a service location decision? Proximity to customers Quality-of-life issues What is a key factor of a location analysis for a service company? Proximity to customers What helps an organization identify and plan the actions necessary to meet current and future customer demands? Capacity planning Which capacity planning measurement tells how much capacity a company is using? Capacity utilization Which two statements are true about effective capacity? An effective capacity is lower than design capacity. An effective capacity is a permanent measure used to achieve design capacity. When is capacity measurement at the best operating level? When the average unit cost is minimized Which two capacity measurement concepts should a firm consider when conducting a location analysis? Proximity to sources of supply Site considerations What is a major factor in the decision to locate a business near its primary market territory? Proximity to customers A manufacturing company decides to open a new distribution center location in order to minimize distribution costs to warehouses or stores. What tool should the manufacturing company use to determine where the new distribution center should be located? By using the center-of-gravity approach Which two types of operations include repetitive processes? Line process Continuous process A comprehensive automobile collision shop offers body and engine repair as well as custom vehicle paint options. Which two operational processes would suit this shop? Project process Batch process What is a bottleneck in a flowchart? The longest task in the process Which formula would compute process velocity? Throughput time/value-added time Which formula would indicate that a fast-food restaurant was performing at, above, or below its benchmark? Actual output/standard output In which organizational layout would one expect to see items arranged by type? Process A construction company produces furnished pre-fabricated manufactured homes. The production manager has discovered the following challenges within one of the facilities: - Production qualities are low and only a small number of homes are built efficiently - The facility space allows for low handling of materials - There is limited space available for employees to operate Which hybrid layout should be used to address the company's needs? Group technology Which instrument would use an allocation process for space requirements in an industry scenario? Block plan What would be an organization's next step after it has revised or implemented new operations? Follow up to make sure the new operation resolves quality problems Why is it beneficial for an organization to designate employees to communicate alternative ways to complete a job in a methods analysis? They may have suggestions for improving the operation. Which factor determines how long it takes a qualified operator to perform a duty of the job requirements under the assumption that the operator is working at a sustainable pace with the proper tools for the process? Standard time Which design work system minimizes repetitiveness in tasks by assigning employees the role of planning and scheduling? Job enrichment Which work system acknowledges the benefits of employee proficiency? Labor specialization Which term means to schedule a job that starts immediately, regardless of the due date? Forward scheduling What is the third basic element in the just-in-time (JIT) system if the first element is total quality management (TQM) and the second is JIT manufacturing? Respect for people How of just-in-time (JIT) and lean systems add value? By reducing waste Which concept takes a total system approach to creating an efficient operation and combines concepts such as just-in-time (JIT), total quality management (TQM), and continuous improvement? Lean systems Why is Kanban significant to the "pull" system? It specifies the exact quantity of a product that needs to be produced What are two product system differences between the push and pull process? Push moves the product forward in anticipation for demand. Pull eliminates excess inventory. Which function does marketing play in a just-in-time (JIT) organization? JIT marketing focuses on customer-driven quality. How does a just-in-time (JIT) system influence all functional areas within a company? Companies are able to reduce waste. Companies develop new ways to generate revenue. What are two ways management can assist employees' focus in a just-in-time (JIT) processing environment? Ensure that workers receive multifunctional training Develop an incentive system to reward workers for their efforts Which tier-level supplier directly supplies materials or services to a processing and packaging plant? Tier three suppliers Which role do third-party logistics providers play in the supply chain? External distributors A company manufactures and distributes its own products. When should the company consider outsourcing its distribution? When the company determines that distribution is no longer a core function What is the measure of how much supply chain is owned or operated by the manufacturer? Vertical integration Which two areas should managers consider in order to adapt to the business dynamics affecting their company? Their control over internal operations Their influence and leverage over suppliers What are two basic strategic objectives for every member of the supply chain? Increasing cost effectiveness Being more efficient How does the status of overall customer satisfaction support supply chain objectives? It measures efficiency What is the name of the model that has been created to examine the four different supply chain perspectives of reliability, flexibility, expenses, and assets/utilization? SCOR (Supply Chain Operations Reference) The annual cost of goods sold for a company is $8,400,000 and the average inventory is $1,200,000. What is the number of weeks of supply? 7 A manufacturing firm uses warehouses and shippers in their supply chain. At which stage of the firm's inventory management system would the statement "percentage of line items shipped on schedule" be used? Finished goods How does inventory management differ for manufacturing organizations compared to service organizations? Manufacturing organ [Show Less]
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WGU C215 Ch 6 question and solutions 2023
Statistical Quality Control (SQC) The general category of statistical tools used to evaluate organizational quality descriptive statistics Statist... [Show More] ics used to describe quality characteristics and relationships Statistical Process Control (SPC) A statistical tool that involves inspecting a random sample of the output from a process and deciding whether the process is producing products with characteristics that fall within a predetermined range Acceptance sampling The process of randomly inspecting a sample of goods and deciding whether to accept the entire lot based on the results Common causes of variation the purely random, unidentifiable sources of variation that are unavoidable with the current process Assignable causes of variation any variation-causing factors that can be identified and eliminated Process Capability The ability of a production process to meet or exceed preset specifications Product specifications Preset ranges of acceptable quality characteristics Process Capability Index An index used to measure process capability Cp=1 process variability just meets specifications Cp<1 process variability is outside the range of specification Cp>1 process variability is tighter than specifications and the process exceeds minimal capability Six Sigma quality A high level of quality associated with approximately 3.4 defective parts per million Define Step 1: quality problem of the process Measure Step 2: current performance of the process Analyze Step 3: process to identify root causes of the quality problem Improve Step 4: process by eliminating the root causes of the problem Control Step 5: process to ensure improvements continue Statistical Quality Control (SQC) The general category of statistical tools used to evaluate organizational quality descriptive statistics Statistics used to describe quality characteristics and relationships Statistical Process Control (SPC) A statistical tool that involves inspecting a random sample of the output from a process and deciding whether the process is producing products with characteristics that fall within a predetermined range Acceptance sampling The process of randomly inspecting a sample of goods and deciding whether to accept the entire lot based on the results Common causes of variation the purely random, unidentifiable sources of variation that are unavoidable with the current process Assignable causes of variation any variation-causing factors that can be identified and eliminated Process Capability The ability of a production process to meet or exceed preset specifications Product specifications Preset ranges of acceptable quality characteristics Process Capability Index An index used to measure process capability Cp=1 process variability just meets specifications Cp<1 process variability is outside the range of specification Cp>1 process variability is tighter than specifications and the process exceeds minimal capability Six Sigma quality A high level of quality associated with approximately 3.4 defective parts per million Define Step 1: quality problem of the process Measure Step 2: current performance of the process Analyze Step 3: process to identify root causes of the quality problem Improve Step 4: process by eliminating the root causes of the problem Control Step 5: process to ensure improvements continue Statistical Quality Control (SQC) The general category of statistical tools used to evaluate organizational quality descriptive statistics Statistics used to describe quality characteristics and relationships Statistical Process Control (SPC) A statistical tool that involves inspecting a random sample of the output from a process and deciding whether the process is producing products with characteristics that fall within a predetermined range Acceptance sampling The process of randomly inspecting a sample of goods and deciding whether to accept the entire lot based on the results Common causes of variation the purely random, unidentifiable sources of variation that are unavoidable with the current process Assignable causes of variation any variation-causing factors that can be identified and eliminated Process Capability The ability of a production process to meet or exceed preset specifications Product specifications Preset ranges of acceptable quality characteristics Process Capability Index An index used to measure process capability Cp=1 process variability just meets specifications Cp<1 process variability is outside the range of specification Cp>1 process variability is tighter than specifications and the process exceeds minimal capability Six Sigma quality A high level of quality associated with approximately 3.4 defective parts per million Define Step 1: quality problem of the process Measure Step 2: current performance of the process Analyze Step 3: process to identify root causes of the quality problem Improve Step 4: process by eliminating the root causes of the problem Control Step 5: process to ensure improvements continue Statistical Quality Control (SQC) The general category of statistical tools used to evaluate organizational quality descriptive statistics Statistics used to describe quality characteristics and relationships Statistical Process Control (SPC) A statistical tool that involves inspecting a random sample of the output from a process and deciding whether the process is producing products with characteristics that fall within a predetermined range Acceptance sampling The process of randomly inspecting a sample of goods and deciding whether to accept the entire lot based on the results Common causes of variation the purely random, unidentifiable sources of variation that are unavoidable with the current process Assignable causes of variation any variation-causing factors that can be identified and eliminated Process Capability The ability of a production process to meet or exceed preset specifications Product specifications Preset ranges of acceptable quality characteristics Process Capability Index An index used to measure process capability Cp=1 process variability just meets specifications Cp<1 process variability is outside the range of specification Cp>1 process variability is tighter than specifications and the process exceeds minimal capability Six Sigma quality A high level of quality associated with approximately 3.4 defective parts per million Define Step 1: quality problem of the process Measure Step 2: current performance of the process Analyze Step 3: process to identify root causes of the quality problem Improve Step 4: process by eliminating the root causes of the problem Control Step 5: process to ensure improvements continue Statistical Quality Control (SQC) The general category of statistical tools used to evaluate organizational quality descriptive statistics Statistics used to describe quality characteristics and relationships Statistical Process Control (SPC) A statistical tool that involves inspecting a random sample of the output from a process and deciding whether the process is producing products with characteristics that fall within a predetermined range Acceptance sampling The process of randomly inspecting a sample of goods and deciding whether to accept the entire lot based on the results Common causes of variation the purely random, unidentifiable sources of variation that are unavoidable with the current process Assignable causes of variation any variation-causing factors that can be identified and eliminated Process Capability The ability of a production process to meet or exceed preset specifications Product specifications Preset ranges of acceptable quality characteristics Process Capability Index An index used to measure process capability Cp=1 process variability just meets specifications Cp<1 process variability is outside the range of specification Cp>1 process variability is tighter than specifications and the process exceeds minimal capability Six Sigma quality A high level of quality associated with approximately 3.4 defective parts per million Define Step 1: quality problem of the process Measure Step 2: current performance of the process Analyze Step 3: process to identify root causes of the quality problem Improve Step 4: process by eliminating the root causes of the problem Control Step 5: process to ensure improvements continue [Show Less]
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C215 Ops Mgmt WGU question and answer (2023) already passed
Total Quality Management (TQM) Philosophy that seeks to improve quality by eliminating causes of product defects and by making quality the responsibility ... [Show More] of everyone in the organization. Supply Chain Management (SCM) Management of the flow of materials from suppliers to customers in order to reduce overall cost and increase responsiveness to customers. Operations Management The business function responsible for planning, coordinating, and controlling the resources needed to produce a company's goods and services. Sustainability A trend in business to consciously reduce waste, recycle, and reuse products and parts. Cross Functional Decision Making The coordinated interaction and decision making that occur among the different functions of the organization CRM (Customer Relationship Management) Software solutions that enable the firm to collect customer-specific data. ERP (Enterprise Resource Planning) Large, sophisticated software systems used for identifying and planning the enterprisewide resources needed to coordinate all activities involved in producing and delivering products. Role of Operations Management To transform organizational inputs into outputs Human Relations Movement A philosophy based on the recognition that factors other than money can contribute to worker productivity. Industrial Revolution An industry movement that changed production by substituting machine power for labor power. Just-in-time (JIT) A philosophy designed to achieve high-volume production through elimination of waste and continuous improvement. Lean Systems A concept that takes a total system approach to creating efficient operations. A number of historical milestones have shaped operations management into what it is today. Some of the more significant of these are: Industrial Revolution, scientific management, the human relations movement, management science, and the computer age. OM is a highly important function in today's dynamic business environment. Among the trends that have had a significant impact on business are: just-in-time, total quality management, reengineering, flexibility, time-based competition, supply chain management, a global marketplace, and environmental issues. Every business is managed through what three major functions? Finance, Marketing, OM Which business function is responsible for sales, generating customer demand, and understanding customer wants and needs? Marketing Inputs: Managers, Buildings, technology, info What are companies that have low customer contact and are capital intensive, yet provide a service, called? Quasi-manufacturing organizations Hawthorne Studies The studies responsible for creating the human relations movement, which focused on giving more consideration to workers' needs. What is it called when the production of a good is broken down into a series of small tasks, each performed by a different worker? Division of Labor What was Frederick W. Taylor's background? Engineering Which of the following operations management concepts did not evolve from scientific management? Interchangable parts Which of the following operations management concepts did Evolved from scientific mgmt Moving assembly lines, stopwatch time studies, piece rate incentives, setting time standards for task performance What term describes the approach of giving workers a larger portion of the total task to do? Job enlargement What is a philosophy that aggressively seeks to improve product quality by eliminating causes of product defects and making quality an all-encompassing organizational philosophy? TQM Electronic Commerce is the use of Internet to conduct business activities Enterprise Resource Planning systems can be described as? large sophisticated software Of all the business functions, operations is? Most diverse in terms of tasks performed Decisions within the OM function must? must be linked to the other business functions To meet customer needs, Marketing managers need to understand and know what operations can produce and what due dates it can and cannot meet The seven most notable individuals who shaped today's concept of quality are Walter A. Shewhart, W. Edwards Deming, Joseph M. Juran, Armand V. Feigenbaum, Philip B. Crosby, Kaoru Ishikawa, and Genichi Taguchi. Seven features of TQM customer focus, continuous improvement, employee empowerment, use of quality tools, product design, process management, and managing supplier quality Quality function deployment (QFD) a tool used to translate customer needs into specific engineering requirements. Seven problem-solving tools are used in managing quality. Often called the seven tools of quality control, they are cause-and-effect diagrams, flowcharts, checklists, scatter diagrams, Pareto analysis, control charts, and histograms Reliability The probability that the product will function as expected. Computed as the product of the reliabilities of the individual components. The Malcolm Baldrige Award given to companies to recognize excellence in quality management. Companies are evaluated in seven areas, including quality leadership and performance results. These criteria have become a standard for many companies that seek to improve quality. Evolution of TQM: 1900's focus Inspection, old concept of quality Evolution of TQM: 1940s focus Statistical Sampling Old concept of quality Evolution of TQM: 1960s focus Organizational quality focus Old concept of quality Old Concept of TQM to inspect for quality after production Evolution of TQM: 1980's and beyond Customer Driven Quality New concept of TQM: Build quality into the processes. Identify and correct causes quality problems. Conformance to specifications How well a product or service meets the targets and tolerances determined by its designers. Fitness for use focuses on how well the product performs its intended function or use. Value for price paid Quality defined in terms of product or service usefulness for the price paid. combines economics with consumer criteria. Support services how the quality of a product or service is judged Psychological criteria focuses on the judgmental evaluation of what constitutes product or service quality. Quality Definitions for Manufacturing Conformance to specifications Performance Reliability Features Durability Serviceability Quality definitions for Service organizations Intangible factors Consistency Responsiveness to customer needs Courtesy/Friendliness Timeliness/Promptness Atmosphere Cause and Effect Diagrams (fishbone) A chart that identifies potential causes of particular quality problems. Problem-solving tools commonly used by quality control teams. The "head" of the fish is the quality problem, such as damaged zippers on a garment or broken valves on a tire. The diagram is drawn so that the "spine" of the fish connects the "head" to the possible cause of the problem. Flowcharts A schematic diagram of the sequence of steps involved in an operation or process. It provides a visual tool that is easy to use and understand. By seeing the steps involved in an operation or process, everyone develops a clear picture of how the operation works and where problems could arise. Checklist A list of common defects and the number of observed occurrences of these defects. It is a simple yet effective fact-finding tool that allows the worker to collect specific information regarding the defects observed. Control Charts Charts used to evaluate whether a process is operating within set expectations relative to some measured value such as weight, width or volume. Scatter Diagram Graphs that show how two variables are related to each other. Good for detecting the amount of correlation, or the degree of linear relationship between two variables. Greater correlation, the more linear the observations. Pareto Analysis A technique used to identify quality problems based on their degree of importance. Also called 80-20 rule. In Quality management logic, it is that most quality problems are a result of a few causes. Histogram A chart that shows the frequency distribution of observed values of a variable. We can see from the plot what type of distribution a particular variable displays, such as whether it has a normal distribution and whether the distribution is symmetrical. Benchmarking Studying business practices of companies considered "best in class" The strength of the relationship between customer requirements and product characteristics is shown in the __________ matrix. Relationship The last step in constructing the house of quality includes Setting targets for our own product The Baldrige Award is intended to Reward and stimulate quality initiatives Juran stressed that quality improvement should be continuous as well as breakthrough Product tolerances are often called product specifications the way to reduce the ppm defective is to change product specifications Which company is known for coining the term "six-sigma?" Motorola If capacity is excessive, a company may have to ______________________. decide how to use a partially empty facility factors of capacity -approach used to measure capacity -economies of scale -prepare to deal with capacity in "chunks" -identify the best operating level The ratio of actual output rate to capacity is ___________________________ utilization Last month TMJG Co. started producing a new product called Thingamajigs from its new plant. Sales were quite good for the first couple of weeks. Unfortunately, a technological innovation was then announced by a competitor. This innovation will almost completely eliminate the demand for Thingamajigs. As a result, TMJG has decided to shut down and dismantle the plant next week. The average cost per unit will be highest if the plant was _________________________ In a large facility Long-term capacity requirements are identified on the basis of _____________________. forecasts of future demand The center of gravity approach may identify a location that may not be feasible to locate to Intermittent operations used to produce a variety of products with different processing requirements in lower volumes. Labor intensive. -volume of goods produced directly tied to number of customer orders -general purpose equipment -workers need to be able to perform different tasks depending on the processing needs of the product -produce many different products with varying processing requirements Examples are an auto body shop, a tool and die shop, or a healthcare facility. Repetitive operations Used to produce one or a few standardized products in high volume. Examples are a typical assembly line, cafeteria, or automatic car wash. Capital intensive Project Process Make one-of-a-kind products exactly to customer specifications. high customization and low product volume. (construction, shipbuilding, medical procedures, creation of artwork, custom tailoring, and interior design) Batch processes Used to produce small quantities of products in groups or batches based on customer orders or product specifications. (bakeries, education, and printing shops. ) Small volume, high customization Line processes designed to produce a large volume of a standardized product for mass production. High volume, no customization (assembly line that produces everything from cars, computers, television sets, shoes, candy bars, even food items.) Continuous processes operate continually to produce a very high volume of a fully standardized product. ( oil refineries, water treatment plants, and certain paint facilities.) high capital intensive and automated. The classes that you are taking at the university use a ___________ process. Batch Which is a tool for evaluating an operation in terms of the sequence of steps from inputs to outputs with the goal of improving its design? Process Flow Analysis Why is a process flowchart useful? for seeing the totality of the operation and for identifying potential problem areas process layout Layouts that group resources based on similar processes or functions. Found in intermittent processing systems. (Arrange items by type) Production of many products with different characteristics. EX: Hospitals, universities, Product Layout layouts that arrange resources in a straight-line fashion to promote efficient production. Found in repetitive processing systems. Provide efficiency. Examples: Assembly lines, cafeterias, car wash Hybrid layout Layouts that combine characteristics of process and product layouts. Retail stores, grocery stores Fixed position layout A layout in which the product cannot be moved due to its size and all the resources have to come to the production site. EX: building construction, dam or bridge construction, group technology (GT) or cell layouts Hybrid layouts that create groups of products based on similar processing requirements. Block Plan schematic showing the placement of resources in a facility. helps visualize the available space and evaluate whether we can meet space needs Which of the following is more like a product layout as compared to a process layout? Processing rates are faster When developing a detailed layout, what tools would be used? 3-D models and CAD software For the general warehouse layout problem, which department should be located furthest from the dock? smallest ratio of trips needed to area needed Infinite loading A scheduling approach that ignores capacity constraints. Finite loading Scheduling that loads work centers up to a predetermined amount of capacity. Forward Scheduling Schedule that determines the earliest possible completion date for a job. Starts immediately regardless of due date. Backward Scheduling begin scheduling the job's last activity so that the job is finished right on the due date. [Show Less]
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WGU C215 Study Guide question and answer (2023) correctly solved
Total Quality Management (TQM) Philosophy 1. customer focus 2. continuous improvement 3. employee empowerment 4. use of quality tools 5. product desig... [Show More] n 6. process management 7. managing supplier quality Process Capability Index (Cpk) Basic function of Six Sigma. Measures the process potential and performance of processes. The higher the range of Cpk, the improved is the ability of the process to complete its necessities. Uses both the process variability and the process specifications to determine whether the process is "capable." Six Sigma A disciplined, data-driven approach and methodology for eliminating defects (driving toward six standard deviations between the mean and the nearest specification limit) in any process - from manufacturing to transactional and from product to service. Design Capacity The theoretical maximum output of a system in a given period under ideal conditions. Effective Capacity The capacity a firm expects to achieve given its current operating constraints. Location Analysis proximity to customers, transportation, source of labor, community attitude, proximity to suppliers, and many other factors. Line Processes A type of process used to produce a large volume of a standardized product. Batch Processes A type of process used to produce a small quantity of products in groups or batches based on customer orders or specifications. Project Processes A type of process used to make a one-at-a-time product exactly to customer specifications. Continuous Processes A type of process that operates continually to produce a high volume of a fully standardized product. Bottleneck Longest task in the process. Flexible Manufacturing System (FMS) A type of automated system that combines the flexibility of intermittent operations with the efficiency of continuous operations. Output/Input Control A technique for monitoring the flow of jobs between work centers. Value-Added The net increase created during the transformation of inputs into final outputs. Hybrid Layouts Layouts that combine characteristics of process and product layouts. Relationship Chart (REL) Table that reflects opinions of managers with regard to the importance of having any two departments close together. Rectilinear Distance The shortest distance between two locations using north-south and east-west movements. From-To Matrix Table that gives the number of trips or units of product moved between any pair of departments. Block Plan Schematic showing the placement of resources in a facility. Mean Observed Times The average of the observation times for each of the work elements. Normal Time The mean observed time multiplied by the performance rating factor by the frequency of occurrence. Standard Time The length of time it should take a qualified worker using appropriate process and tools to complete a specific job, allowing time for personal fatigue and unavoidable delays. Just-in-Time (JIT) A philosophy designed to achieve high-volume production through elimination of waste and continuous improvement. Based on a "pull" system rather than a "push" system. The three elements are just-in-time manufacturing, total quality management, and respect for people. Kanban card A card that specifies the exact quantity of product that needs to be produced. Continuous Improvement A philosophy of neverending improvement. Tier One Suppliers Supplies materials or services directly to the processing facility. Tier Two Suppliers Directly supplies materials or services to a tier one supplier in the supply chain. Tier Three Suppliers Directly supplies materials or services to a tier two supplier in the supply chain. Supply Chain Management (SCM) Management of the flow of materials from suppliers to customers in order to reduce overall cost and increase responsiveness to customers. Capacity Requirements Planning (CRP) Determines the labor and machine resources needed to fill the open and planned orders generated by the MRP. Material Requirements Planning (MRP) A system that uses the MRP, inventory record data, and BOM to calculate material requirements. Enterprise Resource Planning (ERP) Large software programs used for planning and coordinating all resources throughout the entire enterprise. Aggregate Plans Includes the budgeted levels of finished products, inventory, backlogs, workforce size, and aggregate production rate needed to support the marketing plan. Third-Party Logistics (3PL) Businesses used to outsource elements of the company's distribution and fulfillment services. They typically specialize in integrated operation, warehousing and transportation services which can be scaled and customized to customers' needs based on market conditions, such as the demands and delivery service requirements for their products and materials. Supply Chain Operations Reference model (SCOR) the world's leading supply chain framework, linking business processes, performance metrics, practices and people skills into a unified structure. The goals are to increase the speed of system implementations, support organizational learning goals, and improve inventory turns. Project Life Cycle Phases Initiation, Planning, Execution and Closure. [Show Less]
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C215 WGU Operations Mgmt question and answers aready passed
Demand-Based Options includes two reactive options and one proactive option Reactive option the operations department uses inventories and back or... [Show More] ders to react to demand fluctuations Proactive option marketing tries to shift the demand patterns to minimize demand fluctuations Capacity-Based Options changes output capacity to meet demand finished goods inventory used to absorb demand fluctuations; allows your company to develop a stable work environment Shifting demand proactive marketing approach to leveling demand in which your company tries to change consumer buying patterns by offering incentives level aggregate plan maintains a constant workforce and produces the same amount of product in each time period of the plan The level plan is often used with make-to-stock products such as... stereos, kitchen appliances, and hardware To calculate the number of employees needed... divide the number of units needed per month by the monthly output per employee chase aggregate plan produces exactly what is needed to satisfy demand during each period This may be a better option when a company produces make-to-order products such as custom cabinets, special-purpose equipment, one-of-a-kind items, or highly perishable products chase aggregate plan hybrid aggregate plan uses a combination of options. With this plan, your company might maintain a stable workforce supplemented by an inventory buildup and some overtime production to meet demand. Sales and operations planning integrates the medium-range functional plans developed by marketing, operations, engineering, and finance aggregate plan Includes the budgeted levels of finished products, inventory, backlogs, workforce size, and aggregate production rate needed to support the marketing plan Also called production plan Aggregate plan Supports marketing plan Aggregate plan master production schedule The anticipated production schedule for the company expressed in specific configurations, quantities, and dates point of departure the percentage of normal capacity your company is currently operating at Duration of the change the length of time you expect to need the different level of capacity Steps to Develop an Aggregate Plan Step 1 Identify the type of aggregate plan Step 2 Based on the aggregate plan, determine the aggregate production rate. Step 3 Calculate the size of the workforce. Step 4 Test the aggregate plan. Step 5 Evaluate the plan's performance Psychological criteria a subjective definition that focuses on the judgmental evaluation of what constitutes product or service quality support services how the quality of a product or service is judged Value for price paid a definition of quality that consumers often use for product or service usefulness Conformance to specifications measures how well the product or service meets the targets and tolerances determined by its designers Fitness for use focuses on how well the product performs its intended function or use continuous improvement A philosophy of never-ending improvement. benchmarking Studying the business practices of other companies for purposes of comparison. plan-do-study-act (PDSA) cycle describes the activities a company needs to perform in order to incorporate continuous improvement in its operation external customers those that purchase the company's goods and services internal customers employees of the organization who receive goods or services from others in the company quality circle A team of volunteer production employees and their supervisors who meet regularly to solve quality problems. fishbone diagrams cause and effect diagrams cause and effect diagrams A chart that identifies potential causes of particular quality problems. flowchart a schematic diagram of the sequence of steps involved in an operation or process. It provides a visual tool that is easy to use and understand checkists a list of common defects and the number of observed occurrences of these defects control chart used to evaluate whether a process is operating within expectations relative to some measured value such as weight, width, or volume scatter diagram graphs that show how two variables are related to one another. What diagram? as production speed increases, so does the number of defects. Scatter diagram Pareto Analysis a technique used to identify quality problems based on their degree of importance Histograms a chart that shows the frequency distribution of observed values of a variable quality function deployment (QFD) A tool used to translate the preferences of the customer into specific technical requirements. Quality at the source the belief that it is far better to uncover the source of quality problems and correct it than to discard defective items after production. Malcolm Baldrige National Quality Award An award given annually to companies that demonstrate quality excellence and establish best practice standards in industry. Deming prize A Japanese award given to companies to recognize efforts in quality improvement ISO 9000 A set of international quality standards and a certification demonstrating that companies have met all the standards specified ISO 14000 A set of international standards and a certification focusing on a company's environmental responsibility. Technical Feasibility the degree to which an individual or group of individuals is physically and mentally able to do the job Economic Feasibility the degree to which the value a job adds and the cost of having the job done create profit for the company Behavioral Feasibility the degree to which an employee derives intrinsic satisfaction from doing the job job enlargement A horizontal expansion of the job through increasing the scope of the work assigned. job enrichment A vertical expansion of the job through increased worker responsibility. job rotation Workers shift to different jobs to increase understanding of the total process. methods analysis Process concerned with the detailed process for doing a particular job. work measurement Determines how long it should take to do a job. standard time the time it should take a qualified operator, working at a sustainable pace and using the appropriate tools and process, to do the job periodic counting usually annually; satisfies auditors that the inventory records accurately reflect the value of the inventory on hand cycle counting Prespecified items are counted daily. Which continuous improvement method does C pk measure? How close one is to a target and how consistent one is with the average performance What are two important aspects of Six Sigma? People involvement, technical tools Which capacity planning measurement tells how much capacity a company is using? Capacity utilization A manufacturing company decides to open a new distribution center location in order to minimize distribution costs to warehouses or stores. What tool should the manufacturing company use to determine where the new distribution center should be located? By using the center-of-gravity approach In which organizational layout would one expect to see items arranged by type? Process Which design work system minimizes repetitiveness in tasks by assigning employees the role of planning and scheduling? Job enrichment Which work system acknowledges the benefits of employee proficiency? Labor specialization Which concept takes a total system approach to creating an efficient operation and combines concepts such as just-in-time (JIT), total quality management (TQM), and continuous improvement? lean systems [Show Less]
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WGU C215 Operations Management(2023)CORRECTLY ANSWERED
Which definition is used for quality evaluates how well a product performs its intended function? -Statistical Quality Control Charts -Fitness quality ... [Show More] for use -Product design quality -14 points for quality improvement Fitness for use Which total quality management (TQM) process was developed to stress management's responsibility for quality? -Statistical Quality Control Charts -Fitness quality for use -Product design quality -14 points for quality improvement 14 points for quality improvement Which total quality management (TQM) process consists of 13 published standards and guidelines? -ISO 9002 -ISO 9001 -ISO 9000 -ISO 1400 ISO 9000 A company manufactures shoes using a quality management system. The company needs to put a process in place to measure any defects. The company would like to measure the number of defects and observe the number of occurrences to isolate the particular defect. Which quality tool should the company use to focus on correcting this particular issue? -Control Chart -Flowchart -Scatter Diagram -Checklist checklist Which quality control tool should be used to monitor the current status or end result of a process? -Control Chart -Flowchart -Scatter Diagram -Checklist Flowchart Which group of keywords or phrases describes the crucial role that marketing plays in the total quality management (TQM) process? -Baseline for managing quality process; investment in preventative costs, budgeting -Enhance competition, understand consumer preferences, maintain communication with operations -Reward employees; motivate staff performance; manage operations planned changes -Review and recommend product changes, satisfy customer needs; open communication Review and recommend product changes, satisfy customers needs, open communication What is the common theme in total quality management (TQM) across all functions in an organization? -To enhance management software -To ensure profit from product changes -To satisfy customer needs -To reward people rather than teams To satisfy customer needs Which concept of variation measures the central tendency of a set of data? -Range -Variable -Mean -Standard deviation mean What do assignable causes of variation indicate? -Equipment was found to be out of control -Human resources found an operator was at fault -Out of control signals were found in the process -A computer virus was found in the system Equipment was found out of control Which continuous improvement method does Cpk measure? -What a process is capable of and how long it will take to conclude -How close one is to a target and how consistent one is with the average performance -Parts per million on the capability index -The most common measurement process How close one is to a target and how consistent one is with the average performance What are two important aspects of Six Sigma? -People involvement -Facility location -Technical tools -Job design people involvement technical tools Which strategy is used by some emergency rooms to overcome customer frustrations about long waiting times? -See each patient in the order they arrived -Screen patients and fast track minor ailments -Screen and schedule follow up appts for serious injuries -Screen and send the last 25 to another facility Screen patients and fast-track those with minor ailments Which two factors affect a service location decision? -Warehouse storage -Proximity to customers -Closeness to manufacturing facilities -Quality of life issues Proximity to customers Quality of life issues Which is a key factor of a location analysis for a service company? -Best operation level -Relations with community -Proximity to customers -Effective capacity Proximity to customers What helps an organization identify and plan the actions necessary to meet current and future customer demands? -Software development -Production capacity -Current economic conditions -Capacity planning capacity planning Which capacity planning measurement tells how much capacity a company is using? -Design Capacity -Capacity Focus -Capacity Utilization -Effective Capacity Capacity utilization Which two statements are true about effective capacity? An effective capacity: -Maintains a minimum output rate under normal conditions -is a temporary measure used to achieve design capacity -is a permanent measure used to achieve design capacity -is lower than design capacity An effective capacity maintains a minimum output rate under normal conditions. An effective capacity is lower than design capacity When is capacity measurement at the best operating level? -At maximum capacity -at the minimum point of the cost curve -When the total cost is minimized -When the average unit cost is minimized When the average unit cost is minimized Which two capacity measurement concepts should a firm consider when conducting a location analysis? -Proximity to sources of supply -site considerations -building employee relations -throughput time proximity to sources of supply site considerations What is a major factor in the decision to locate a business near its primary market territory? -Proximity to labor -Proximity to customers -Proximity to parks -Proximity to a community center proximity to customers A manufacturing company decides to open a new distribution center location in order to minimize distribution costs to warehouses or stores. What tool should the manufacturing company use to determine where the new distribution center should be located? -By using the break-even analysis -By using the load-distance model -by using the center-of-gravity approach -By using the transportation method by using the load-distance model Which two types of operations include repetitive processes? -Continuous process -Batch process -Line process -Project process continuous process line process A comprehensive automobile collision shop offers body and engine repair as well as custom vehicle paint options. Which two operational processes would suit this shop? -Continuous Process -Batch process -Project proces -Line process batch process project process What is a bottleneck in a flowchart? -multiple storage areas -The longest task in the process -two stages operation independently -The point where production is evened out The longest task in the process Which formula would compute process velocity? -Time a resources is used/time a resource is available -Throughput time/value-added time -Output/input -Actual output/standard output throughput time/value-added time Which formula would indicate that a fast-food restaurant was performing at, above, or below its benchmark? -Time a resources is used/time a resource is available -Throughput time/value-added time -Output/input -Actual output/standard output actual output/standard output In which organizational layout would one expect to see items arranged by type? -Fixed -Process -Hybrid -Product process A construction company produces pre-fabricated homes. The manager has discovered the following challenges within one of the facilities: -production qualities are low and only a small number of homes are built efficiently -the facility space allows for low handling of materials -there is limited space available for employees to operate Which hybrid layout should be used to address the company's needs? -Statistical reduction control -Process performance metrics -Group technology -Manufacturing technology group technology [Show Less]
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WGU C215 Operations Management question and answer rated A+
Advertising revenue model Provides users with information on services and products and provides an opportunity for suppliers to advertise Affiliate... [Show More] revenue model Companies receive a referral fee for directing business to an affiliate 00:03 01:24 Appraisal cost The cost associated with uncovering defects Automated order entry systems A method using telephone models to send digital orders to suppliers. Backwards integration Owning or controlling sources of raw materials and components. Benchmarking Studying other companies business practices for comparison. Bullwhip effect Inaccurate or distorted demand information created in the supply chain. Business to Business commerce Businesses buying and selling to other businesses. Business to consumer commerce Businesses selling to individual consumers. Cause and effect diagrams A chart that identifies potential causes of particular quality problems. Checklist A list of common defects and the number of observed occurrences of each. Conformance to specifications how well a product or service meets the targets and tolerances set by designers. 00:03 01:24 Continuous improvement A philosophy of never ending improvement. Control charts Charts used to evaluate whether a process is operating within expectations. Crossdocking Eliminates storage and order picking functions of a distribution warehouse. Customer defined quality an integrated effort designed to improve quality performance at every level of the organization. Deming Prize Japanese award for companies to recognize efforts in quality improvement. Distribution management Responsible for the movement of material from the manufacturer to the customer. Distribution warehouse Used for short term storage, consolidation, and product mixing. Distributor crossdocking the receiving and consolidating of inbound products from different vendors into a multi-SKU pallet. E-commerce Using the internet and web to do business. E-distributors Independently owned net marketplaces having catalogs representing thousands of suppliers and designed for spot purchases. E-purchasing Companies that connect onlone MRO suppliers to businesses that pay fees to join the market, usually for long term contractual purchasing. Early supplier involment (ESI) Involvement of critical suppliers in new product design. Electronic data interchange (EDI) A form of computer to computer communications that enables sharing business documents. Electronic requests for quotes (eRFQs) An electronic request for a quote on goods and services. Electronic storefront online catalogs of products made available to the general public by a single supplier Exchanges Marketplaces that focus on spot requirements of larger firms in a single industry External Failure costs Costs associated with failures that occur at the customer site. Extranets intranets that are linked to the internet so that suppliers and customers can be included in the system. Fitness for use How well the product performs its intended purpose. Flowchart A schematic of the sequence of steps involved in a process. Forward integration Owning or controlling the channels of distributions General warehouse used for long term storage Green supply chain management Focucses on the role of the supply chain with regard to its impact on the environment. Histogram A chart that shows frequency distribution of observed values of a variable. Incoming inspection verifies the quality of incoming goods Industry consortia Industry owned markets for purchase of direct inputs from limited number of suppliers. Insourced processes and activities completed in house Internal failure costs costs associated with discovering poor quality product before it reaches customers. Intranets networks internal to the organization ISO 14000 Set of standards & certification focused on environmental responsiblity ISO 9000 Set of quality standards & certification indicating companies have met that standard. Kaizen Japanese term for continuous improvement through learning and problem solving. Logistics Obtaining, producing an distributing materials and products. Malcolm Baldridge Award Award for demonstrating quality excellence and establishing best practices. Manufacturing crossdocking receiving and consolidating inbound supplies and materials for JIT manufacturing. Net Marketplaces suppliers and buyers conduct trade in a single internet based environment. Outsourced Processes/activities completed by suppliers. Pareto Analysis A technique used to identify quality problems based on their degree of importance. Partnering A process of developing long term relationships with a supplier based on trust, shared vision, and shared information, and shared risk. Plan-do-study-act (PDSA) cycle a diagram that describes the actvities that need to be performed to incorporate continuous improvement. Postponement Strategy shifts production differentiation closer to the consumer by postponing final configuration Prevention costs Costs associated with preventing poor quality/defects from occurring. Price and availability Current prices and whether the quantity is available when needed. Psychological criteria way of defining quality, focuses on judgement of what constitutes product or service excellence. Purchase order legal document committing to buy goods and providing details of purchase. Quality at the source best to uncover problems at source and correct it. Quality Circle Team of volunteer production workers and supervisors who meet regularly to solve quality issue. Quality function deployment (QFD) tool to translate preferences of the customer into specific technical requirements. Radio frequency identificaion (RFID) unpowered microchips used to transmit encoded info through antennae Reliability probability of part, product or services will perform as intended. Requisition request indicates the need for an item. Retail crossdocking sorting product from multiple vendors onto outbound trucks headed for specific stores. Robust design A design that results in a product that can perform over a wide range of conditions. Sales revenue model a means of selling goods, information, or services directly to consumers. Scatter diagram Graphs that show how two variables relate. Sourcing strategy A plan indicating suppliers to be used when making purchases. Subscription revenue model a web site that charges a subscription fee for access to its contents and services. Supply Chain All the activities involved in delivering a finished product or service to customer Supply chain management Coordinates and manages all the activities of the supply chain Supply chain management The speed at which product moves through a pipeline from the manufacturer to the customer Supply chain velocity The speed at which product moves through a pipeline from manufacturer to the customer. Support Serviecs Quality defined in terms of the support provided after the product services is purchased. Taguchi loss function costs of quality increase as a quadratic function as conformance values move away from target. Tier one suppliers Supplies materials directly to processing facility Tier three suppliers Directly supplies materials or services to a tier two supplier in the supply chain. Tier two suppliers directly supplies tier one suppliers Total quality management The meaning of quality as defined by the customer Transaction fee model A company receives a fee for executing a transaction Transportation crossdocking Consideration of LTL shipments to gain economics of scale. Value for price paid Quality defined in terms of consumer's perception of usefulness of service or product related to prices paid. Vertical integration A measure of how much of the supply chain is owned by the manufacturing company. Virtual private network (VPN) A private internet based communications environment that is used by the company, its suppliers, and its customers for day to day activities. Best Operating level the output volume that results in lowest average unit cost. Break even analysis used to compute the amount of goods that must be sold just to cover costs. Capacity maximum output rate that can be achieved by a facility. Capacity cushions additional capacity added to regular capacity requirements for greater flexibility. Capacity planning The process of establishing the output rate that can be achieved by a facility Capacity utilization Percentage measure of how well available capacity is being used. Decision tree Modeling tool used to evaluate independent decisions that must be made in sequence. Design capacity the maximum output rate that can be achieved under ideal conditions Diseconomies of scale A condition in which the cost of each additional unit made increases. Economies of scale A condition in which the cost of each additional unit made decreases. Effective capacity maximum output rate under normal conditions, lower than design capacity. Expected value a weighted average of chance events, where each chance event is given a probability of occurrence. Factor rating a procedure that can be used to evaluate multiple alternative locations based on a number of selected factors. Focused factories Facilities that are small specialized and focused on narrow set of objectives. Globalization the process of locating facilities around the world. Load-distance model a procedure for evaluating location alternatives based on distance. [Show Less]
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