WGU C215 Operations Management exam questions and answers ( PASSED )

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

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

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.