WGU C215 Study Guide - FINAL latest updated version with expert solutions + rationales (GUARANTEED SUCCESS)

Total Quality Management (TQM) Philosophy

1. customer focus

2. continuous improvement

3. employee empowerment

4. use of quality tools

5. product design

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.

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.

Location Analysis

proximity to customers, transportation, source of labor, community attitude, proximity to suppliers, and many other factors.

The technique for determining location decisions.

Line Processes

A type of process used to produce a large volume of a standardized product.

■ Limited customization and high volume

Batch Processes

A type of process used to produce a small number of products in groups or batches based on customer orders or specifications.

■ High customization moderate volume

Project Processes

A type of process used to make a one-at-a-time product exactly to customer specifications.

■ Most custom and lowest volume

Continuous Processes

A type of process that operates continually to produce a high volume of a fully standardized product.

- No customization and as high a volume as possible

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.

- Group technology layouts.

- Cell technology layouts.

- Grocery stores use hybrid 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.

Tier One Suppliers

Supplies materials or services directly to the processing facility.

These are the suppliers that put products in specific containers or packages.

Internal Functions companies

Tier Two Suppliers

Directly supplies materials or services to a tier-one supplier in the supply chain.

Suppliers of the specialty materials for the tier one suppliers to be able to produce the packaging necessary for different products.

Think cardboard, plastic, glass, chemicals.

Tier Three Suppliers

Directly supplies materials or services to a tier two supplier in the supply chain.

These are companies that extract raw materials.

Oil, raw chemical materials, wood.

Capacity Requirements Planning (CRP)

Determines the labor and machine resources needed to fill the open and planned orders generated by the MRP.

Basically, checking if there is enough work scheduled for operations

Enterprise Resource Planning (ERP)

Large software programs used for planning and coordinating all resources throughout the entire enterprise.

Aggregate Plans - IN A BROAD SENSE

Includes the budgeted levels of finished products, inventory, backlogs, workforce size, and aggregate production rate needed to support the marketing plan.

Marketing Plan, TO, Operating and engineering Plans, TO, Start or revision of the strategic business 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

Conception, Feasibility/Study analysis, Planning, Execution, Termination

Master Production Schedule (MPS)

A plan for individual commodities to be produced in each time period.It is usually linked to manufacturing where the plan indicates when and how much of each product will be demanded. It gives production, planning, purchasing, and top management the information needed to plan and control the manufacturing operation.

Total Quality Management (TQM)

The meaning of quality as defined by the customer.

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

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 - TQM

how well a product or service meets the targets and tolerances set by designers.

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 - TQM

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 - TQM

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.