OPM-NOTES-MIDTERMS

Capacity

An upper limit or ceiling on the load that an operating unit can handle.

Strategic Capacity Planning

Capacity decisions that have a significant impact on an organization's ability to meet future demands and operate costs.

Design Capacity

The maximum output rate or service capacity an operation, process, or facility is designed for.

Effective Capacity

Design capacity minus allowances such as personal time and preventive maintenance.

Leading Strategy

A capacity strategy that builds capacity in anticipation of future demand increases.

Following Strategy

A strategy that builds capacity when demand exceeds current capacity.

Tracking Strategy

A strategy that adds capacity in relatively small increments to keep pace with increasing demand.

Capacity Cushion

An amount of capacity in excess of expected demand, used when there is uncertainty about demand.

Location Decisions

Choices regarding the placement of a facility that can impact market expansion and operational efficiency.

Supply Chain Factors

Considerations that must be accounted for in capacity planning, particularly for substantial capacity changes.

Costs of Quality

Costs associated with activities to ensure and control quality, such as prevention and failure costs.

Quality Assurance

The department responsible for monitoring processes and solving quality-related problems.

Deming Prize

An award recognizing companies that distinguish themselves with quality management programs.

Baldrige Award

An award administered by the Baldrige Performance Excellence Program to recognize role-model organizations.