Operations Management Quiz Review Flashcards

A comprehensive set of vocabulary flashcards derived from the Chapter 1, 3, 5, 5S, and 6 quizzes regarding operations management, capacity planning, and decision theory.

Customer Involvement

A factor in operations where a greater degree of involvement makes the design and management of operations more challenging.

Manufacturability

The ease with which a product can be produced, often best judged by operations personnel during the development of new product designs.

Transformation Process

The method used by operations to convert inputs into outputs, including activities such as transporting, storing, analyzing, and cutting.

System Design Decisions

Key strategic decisions that include product design and process selection.

Systems Approach

A viewpoint in decision-making that emphasizes interrelationships among subsystems and is essential for redesigns or improvements.

Service Operations

Operations characterized by high customer contact, intangible output, high labor content, and low uniformity of input.

Models in Decision Making

Tools that provide a standardized format, consistency for evaluation, and insights into fundamental issues, though they do not typically account for qualitative issues like personalities.

Exponential Smoothing

A forecasting method where an alpha of $1.0$ will generate the same forecast as a naive forecast.

Moving Average Responsibility

The adjustment where the number of data points in the average should be decreased to increase the responsiveness of the forecast.

Good Forecast Elements

Critical components of a forecast including meaningful units, estimates of accuracy, timeliness, and being in written form.

Forecasting Continuity Assumption

The general assumption that there is a continuity of some underlying causal system.

Simple Linear Regression Analysis

A statistical method used in forecasting that assumes deviations around the line are normally distributed.

Effective Capacity

The maximum possible output given a product mix, scheduling difficulties, personal time, and equipment maintenance.

Design Capacity

The maximum output rate that can be achieved under ideal conditions.

Service Capacity Limitation Strategies

Methods to manage capacity including using part-time workers, hiring extra workers, pricing, and subcontracting, but excluding storing inventories of the service.

HIV Blood Analysis Profit

The calculated profit of $\$40,000$ based on $5,000$ analyses, a machine cost of $\$60,000$, a charge of $\$25.00$, and a variable cost of $\$5.00$ per visit.

Maximin

A decision-making approach that determines the worst payoff for each alternative and chooses the alternative with the 'best worst' payoff.

Decision Tree

A schematic representation of alternatives used in decision theory.

States of Nature

Possible future conditions that may occur within the context of decision theory.

Risk

A decision environment where certain parameters have probabilistic outcomes.

Uncertainty

A decision-making environment characterized by a total lack of knowledge regarding the likelihood of possible future events.

Expected Value of Perfect Information

The difference between the expected payoff under certainty and the expected payoff under risk.

Intermittent Processing

A type of processing system that can take the form of batch processing or a job shop.

Job Shop

A processing system that tends to produce the most variety in products.

Line Balancing

The goal of assigning tasks to workstations so they have approximately equal time requirements.

Fixed-Position Layout

A layout where workers, materials, and equipment are moved to the product as needed, such as when constructing a large cruise ship.

Continuous Processing

A system used for highly standardized products, such as producing gasoline from crude oil.

Process Layout Characteristics

Compared to product layouts, these feature higher in-process inventories, lower output rates, and a lower span of supervision.

Customer Involvement leads to easier design and management of operations.

False

Manufacturability is judged by operations personnel during new product design development.

True

Transformation Process includes only the transporting and storing of inputs.

False

System Design Decisions include process selection and product design.

True

A Systems Approach is essential for redesigns or improvements.

True

Service Operations are characterized by low customer contact and tangible output.

False

Models in Decision Making account for qualitative issues like personalities.

False

An alpha of 1.0 in Exponential Smoothing generates a forecast equal to a naive forecast.

True

Decreasing the number of data points in a Moving Average increases the responsiveness of the forecast.

True

Good Forecast Elements do not include estimates of accuracy.

False

The Forecasting Continuity Assumption states there is a continuity in underlying causal systems.

True

Simple Linear Regression Analysis assumes that deviations around the line are uniformly distributed.

False

Effective Capacity is the maximum possible output given scheduling difficulties and maintenance.

True

Design Capacity is the maximum output rate achievable under ideal conditions.

True

Service Capacity Limitation Strategies include storing inventories of the service.

False

HIV Blood Analysis Profit calculation takes into account the number of analyses and costs involved.

True

Maximin is a decision-making approach that seeks the best worst payoff.

True

A Decision Tree is a representation of alternatives in decision theory.

True

States of Nature are future conditions that are certain and known.

False

Risk involves probabilistic outcomes in decision environments.

True

Uncertainty in decision-making is characterized by a lack of knowledge about future events.

True

Expected Value of Perfect Information refers to the expected payoff under risk.

False

Intermittent Processing refers to a processing method that only uses continuous flow systems.

False

A Job Shop process system produces the most variety in products.

True

Line Balancing aims to assign tasks to workstations of equal time requirements.

True

A Fixed-Position Layout moves the product as needed during construction.

True

Continuous Processing is used for highly standardized products.

True

Process Layout Characteristics often feature higher output rates compared to product layouts.

False