Busi 411 Final Exam

Tier 1 Suppliers

Suppliers that directly provide materials or components to the company.

Tier 2 Suppliers

Suppliers that provide materials or components to Tier 1 suppliers.

Supply Chain Auditing

The process of evaluating supplier practices for compliance with standards, including ethics and sustainability.

Integrated Supplier Scorecards

Tools used to evaluate and rank suppliers based on performance metrics such as quality and delivery.

Qualitative Forecasting Methods

Techniques based on judgment and opinions, including the Delphi method, market research, and panel consensus.

Naïve Forecasting

Using the most recent actual data as the forecast for the next period.

Moving Average (MA)

Forecasting by averaging a specific number of past periods.

Weighted Moving Average (WMA)

A moving average where weights are applied to prioritize recent data points.

Exponential Smoothing

Forecasting method using weighted averages where recent data has more weight.

Linear Trend Forecasting

Using regression to identify a straight-line trend in data.

Time-Adjusted Forecast (TAF)

Adjusted forecast incorporating seasonal indices and trends.

Forecast Error Measures include

MAD (Mean Absolute Deviation), MSE (Mean Squared Error), and MAPE (Mean Absolute Percentage Error).

Delphi Technique

A structured method of gathering expert opinions to reach a consensus forecast.

Simple Productivity

Measures output per input unit, such as units per labor hour.

Multifactor Productivity

Measures output relative to combined inputs, such as labor, materials, and capital.

Productivity Increase %

(New Productivity - Old Productivity) / Old Productivity × 100.

Control Chart

A tool for monitoring process stability; shows control limits, sample means, and data trends.

Cp

measures process capability

Cpk

adjusts for process centering.

Six Sigma methodology aiming for

3.4 defects per million opportunities (DPMO).

DMAIC is Six Sigma process for improving existing processes that stands for:

Define, Measure, Analyze, Improve, Control.

DMADV is Six Sigma process for designing new processes that stands for:

Define, Measure, Analyze, Design, Verify.

Kano Model

Customer satisfaction framework categorizing needs as basic, performance, and excitement.

Kano Model - Basic Needs

Features or services customers take for granted; their absence causes dissatisfaction. Example: a functioning seatbelt in a car.

Kano Model - Performance Needs

Features customers explicitly want and measure satisfaction against. Example: fuel efficiency in a car.

Kano Model - Excitement Needs

Features that delight customers and create competitive differentiation. Example: built-in wireless charging in a car.

Kano Model in Practice

Helps prioritize product development efforts by identifying which customer needs to address and their impact on satisfaction.

Break-Even Quantity (Qbep)

The point where total revenue equals total costs, ensuring no profit or loss.

Payback Time

The time it takes to recover an investment through net cash inflows.

Equipment Capacity Planning

Ensuring adequate resources (machines, labor) to meet demand without over or under-utilization.

3D Printing

A manufacturing technology creating objects layer-by-layer, known for customization and rapid prototyping.

RFID

Radio-frequency identification technology for tracking inventory and assets.

GIS (Geographic Information Systems)

used for location planning and logistics.

Cost-Volume-Profit Analysis

Determines the break-even point and the relationship between costs, sales volume, and profits.

Center of Gravity Method

Location planning technique minimizing transportation costs by balancing loads at coordinate points.

ABC Analysis

Inventory classification into three categories: A (high value), B (moderate value), C (low value).

EOQ

Economic Order Quantity; minimizes total inventory costs by balancing ordering and holding costs.

EPQ

Economic Production Quantity; considers production rate versus demand rate to optimize batch sizes.

ROP with Variability

Reorder Point considering demand variability and lead time, ensuring stock availability.

FOI

Fixed Order Interval model for replenishment at regular intervals.

5S Lean Principles

Sort, Straighten, Shine, Standardize, Sustain.

TPS

Toyota Production System, emphasizing efficiency and waste reduction.

In lean, how many forms of waste are there?

8

Empirical Rule

68% of data falls within 1 standard deviation, 95% within 2, and 99.7% within 3.

Value Stream Map

A tool for identifying inefficiencies in production processes, different from organizational charts.

Inventory Costs includes:

ordering, holding, stockout

typically the largest inventory costs are

holding costs

What is the Center of Gravity Method?

A quantitative technique used in location planning.

What is the purpose of the Center of Gravity Method?

To find the optimal geographic position for a facility that minimizes transportation costs.