WGU C215 Operations Management -Objective Assessment & Terminologies latest updated version with expert solutions + rationales (GUARANTEED SUCCESS)

1. customer focus

2. continuous improvement

3. employee empowerment

4. use of quality tools

5. product design

6. process management

7. managing supplier quality

Total Quality Management (TQM) Philosophy

Basic function of Six Sigma. Measures the process potential and performance of processes. The higher the range of Cpk, the improved is the ability of the process to complete its necessities. Uses both the process variability and the process specifications to determine whether the process is "capable."

Process Capability Index (Cpk)

A disciplined, data-driven approach and methodology for eliminating defects (driving toward six standard deviations between the mean and the nearest specification limit) in any process - from manufacturing to transactional and from product to service.

Six Sigma

The theoretical maximum output of a system in a given period under ideal conditions.

Design Capacity

The capacity a firm expects to achieve given its current operating constraints.

Effective Capacity

proximity to customers, transportation, source of labor, community attitude, proximity to suppliers, and many other factors.

Location Analysis

A type of process used to produce a large volume of a standardized product.

Line Processes

A type of process used to produce a small quantity of products in groups or batches based on customer orders or specifications.

Batch Processes

A type of process used to make a one-at-a-time product exactly to customer specifications.

Project Processes

A type of process that operates continually to produce a high volume of a fully standardized product.

Continuous Processes

Longest task in the process.

Bottleneck

A type of automated system that combines the flexibility of intermittent operations with the efficiency of continuous operations.

Flexible Manufacturing System (FMS)

A technique for monitoring the flow of jobs between work centers.

Output/Input Control

The net increase created during the transformation of inputs into final outputs.

Value-Added

Layouts that combine characteristics of process and product layouts.

Hybrid Layouts

Table that reflects opinions of managers with regard to the importance of having any two departments close together.

Relationship Chart (REL)

The shortest distance between two locations using north-south and east-west movements.

Rectilinear Distance

Table that gives the number of trips or units of product moved between any pair of departments.

From-To Matrix

Schematic showing the placement of resources in a facility.

Block Plan

The average of the observation times for each of the work elements.

Mean Observed Times

The mean observed time multiplied by the performance rating factor by the frequency of occurrence.

Normal Time

The length of time it should take a qualified worker using appropriate process and tools to complete a specific job, allowing time for personal fatigue and unavoidable delays.

Standard Time

A philosophy designed to achieve high-volume production through elimination of waste and continuous improvement. Based on a "pull" system rather than a "push" system. The three elements are just-in-time manufacturing, total quality management, and respect for people.

Just-in-Time (JIT)

A card that specifies the exact quantity of product that needs to be produced.

Kanban card

A philosophy of neverending improvement.

Continuous Improvement

Supplies materials or services directly to the processing facility.

Tier One Suppliers

Directly supplies materials or services to a tier one supplier in the supply chain.

Tier Two Suppliers

Directly supplies materials or services to a tier two supplier in the supply chain.

Tier Three Suppliers

Management of the flow of materials from suppliers to customers in order to reduce overall cost and increase responsiveness to customers.

Supply Chain Management (SCM)

Determines the labor and machine resources needed to fill the open and planned orders generated by the MRP.

Capacity Requirements Planning (CRP)

A system that uses the MRP, inventory record data, and BOM to calculate material requirements.

Material Requirements Planning (MRP)

Large software programs used for planning and coordinating all resources throughout the entire enterprise.

Enterprise Resource Planning (ERP)

Includes the budgeted levels of finished products, inventory, backlogs, workforce size, and aggregate production rate needed to support the marketing plan.

Aggregate Plans

Businesses to outsource elements of the company's distribution and fulfillment services. specialize in integrated operation, warehousing and transportation services customized to customers' needs based on the demands and delivery service requirements for their products and material

Third-Party Logistics (3PL)

the world's leading supply chain framework, linking business processes, performance metrics, practices and people skills into a unified structure. The goals are to increase the speed of system implementations, support organizational learning goals, and improve inventory turns.

Supply Chain Operations Reference model (SCOR)

Initiation, Planning, Execution and Closure.

Project Life Cycle Phases

A plan for produced in each time period such as production, staffing, inventory, etc.

linked to manufacturing where the plan indicates when and how much of each product will be demanded.

It gives production, planning, purchasing, and top management the information needed to plan and control the manufacturing operation.

Master Production Schedule (MPS)

The meaning of quality as defined by the customer.

Total Quality Management (TQM)

network diagramming notation that places activities in the nodes and arrows to signify precedence relationships

activity-on-node

provides users with information on services and products and provides an opportunity for suppliers to advertise

advertising revenue model

companies receive a referral fee for directing business to an affiliate

affiliate revenue model

includes the budgeted levels of finished products, inventory, backlogs, workforce size, and aggregate production rate needed to support the marketing plan

aggregate plan

computer software packages for designing process layouts

ALDEP and CRAFT

the amount of time the analyst allows for personal time, fatigue, and unavoidable delays

allowance factor

brings work to the worker rather than the worker to the workplace

alternative workplace

inventory built in anticipation of future demand

anticipation inventory

sets up and runs ERP systems

application service provider (ASP)

costs incurred in the process of uncovering defects

appraisal costs

produces standard components that can be combined to customer specifications

assemble-to-order strategy

causes that can be identified and eliminated

assignable causes of variation

a method using telephone models to send digital orders to suppliers

automated order entry system

unfilled customer orders

back orders

starts with the due date for an order and works backward to determine the start date for each activity

backward scheduling

scheduling method that determines when the job must be started to be done on the due date

backward scheduling

a type of process used to produce a small quantity of products in groups or batches based on customer orders or specifications

batch process

degree to which the job is intrinsically satisfying to the employee

behavioral feasibility

studying the business practices of other companies for purposes of comparison

benchmarking

the volume of output that results in the lowest average unit cost

best operating level

typically represents project activities

beta probability distribution

lists all the subassemblies, component parts, and raw materials that go into an end item and shows the usage quantity of each required

bill of material (BOM)

schematic showing the placement of resources in a facility

block plan

longest task in the process

bottleneck

technique used to compute the amount of goods that must be sold just to cover costs

break-even analysis

a philosophy that encompasses the entire organization

broad view of JIT

tasks and procedures are important only if they meet the company's overall goals

broad view of the organization

inaccurate or distorted demand information created in the supply chain

bullwhip effect

a long-range plan for a business

business strategy

electronic commerce between businesses

business-to-business (B2B)

businesses selling to and buying from other businesses

business-to-business e-commerce

on-line businesses sell to individual consumers

business-to-consumer e-commerce (B2C)

electronic commerce between businesses and their customers

business-to-customers (B2C)

the maximum output rate that can be achieved by a facility

capacity

additional capacity added to regular capacity requirements to provide greater flexibility

capacity cushion

the process of establishing the output rate that can be achieved by a facility

capacity planning

a rough-cut capacity planning technique. MPS items are multiplied by historically determined planning factors for key resources

capacity planning using overall planning factors (CPOPF)

determines the labor and machine resources needed to fill the open and planned orders generated by the MRP

capacity requirements planning (CRP)

percentage measure of how well available capacity is being used

capacity utilization

a group of options that allow the firm to change its current operating capacity

capacity-based options

a chart that identifies potential causes of particular quality problems

cause-and-effect diagram

placement of dissimilar machines and equipment together to produce a family of products with similar processing requirements

cell manufacturing

a planning approach that varies production to meet demand each period

chase aggregate plan

a list of common defects and the number of observed occurrences of these defects

checklist

random causes that cannot be identified

common causes of variation

capabilities that the operations function can develop in order to give a company a competitive advantage in its market

competitive priorities

parts or subassemblies used in the final product

components

how well a product or service meets the targets and tolerances determined by its designers

conformance to specifications

a mathematical model in which one is trying to maximize or minimize some quantity, while satisfying a set of constraints

constrained optimization problem

limitations or requirements that must be satisfied

constraints

a philosophy of never-ending improvement

continuous improvement

a philosophy of never-ending improvement

continuous improvement (kaizen)

a type of process that operates continually to produce a high volume of a fully standardized product

continuous process

charts used to evaluate whether a process is operating within set expectations

control charts

the unique strengths of a business

core competencies

a competitive priority focusing on low cost

cost

the longest sequential path through the network diagram

critical path

network planning technique, with deterministic times, used to determine a project's planned completion date and identify the project's critical path

critical path method (CPM)

the coordinated interaction and decision making that occur among the different functions of the organization

cross-functional decision making

software solutions that enable the firm to collect customer-specific data

customer relationship management (CRM)

the ability to satisfy customer requirements

customer service

the meaning of quality as defined by the customer

customer-defined quality