ADM3301 Strategy & Process Analysis Lecture Notes

Flashcards for key terminology and concepts from the ADM3301 Strategy & Process Analysis lecture notes.

Process Strategies

Methods for producing a product or providing a service that meet or exceed customer requirements and managerially set goals.

Capacity

The maximum number of units a facility can hold, receive, store, or produce in a given timeframe.

Throughput (R)

The rate at which units are produced or processed, often measured in units per hour.

Utilization

The percentage of designed capacity that is actually achieved: Utilization = Actual Output / Design Capacity.

Efficiency

The percentage of effective capacity that is achieved: Efficiency = Actual Output / Effective Capacity.

Bottleneck

A limiting factor or constraint in a process that reduces the system's capacity.

Little’s Law

Mathematical formula that relates inventory, throughput, and cycle time: R = I / T.

Bullwhip Effect

The phenomenon where small changes in demand at the retail level lead to large fluctuations in demand at the wholesale, distributor, manufacturer, and supplier levels.

Just-In-Time (JIT)

A production strategy that strives to improve return on investment by reducing in-process inventory and associated carrying costs.

Statistical Process Control (SPC)

A method of quality control that uses statistical methods to monitor and control a process.

Six Sigma

A set of techniques and tools for process improvement, aiming for near perfection in product quality.

Queuing Theory

The mathematical study of waiting lines or queues, used to predict queue lengths and waiting times.

ABC Analysis

A method for categorizing inventory into three categories (A, B, and C) based on their importance and annual dollar volume.

Total Quality Management (TQM)

An approach focused on continuous improvement, optimizing all operations, and satisfying customer requirements.

Quality Cost Categories

Costs associated with quality are divided into conformance costs (prevention and appraisal) and non-conformance costs (internal and external failures).