Operations Management Review Flashcards

Flashcards for key concepts and terminology in Operations Management, providing definitions and explanations for comprehensive exam preparation.

Scholastic

The world’s largest publisher and distributor of children's books and educational materials.

Operations Management (OM)

The management of processes and systems that create goods and/or services by transforming inputs into outputs.

Core Processes

Processes that directly create goods and/or services.

Support Processes

Processes that support core processes.

Managerial Processes

Processes that govern the organization.

Supply Chain Management (SCM)

Managing flows of materials, goods, finances, and information upstream and downstream.

Just-in-Time (JIT)

An approach focusing on continuous problem-solving by improving throughput and reducing inventory.

Quality Function Deployment (QFD)

Translates voice of customer into technical attributes using the House of Quality.

Economic Order Quantity (EOQ)

A formula used to minimize total inventory holding and ordering costs.

Inventory Turnover

Cost of Goods Sold divided by Inventory Investment.

Critical Path

The longest sequence of dependent tasks that determines the minimum project duration.

Six Sigma

A statistical process capable of achieving 99.9997% quality, focused on reducing defects and improving customer satisfaction.

Pareto Diagram

A tool used to identify the most significant contributors to a quality problem.

Control Chart

A statistical tool used to monitor and control processes over time.

Mean Time Between Failures (MTBF)

Average time between failures of a system.

Learning Curve

A graphical representation showing how the time to perform a task decreases with repetition.

Maintenance

Activities to keep equipment in working order.

Reliability

The probability that equipment will function properly for a specified time under set conditions.

Layout Strategy

Organizing workers and equipment for efficiency and comfort.

Process Strategy

The method used to produce goods or services that varies from job shop to mass production.

Product Design

The process of creating a new product to be sold by a business.

Facility Location

The process of selecting a geographical location for a company.

Inventory Costs

Costs associated with storing and managing inventory.

Demand Forecasting

The process of predicting future consumer demand for a product.

Project Management

The application of knowledge, skills, tools, and techniques to project activities to meet project requirements.

Project Scheduling

Listing activities and milestones with intended start and finish dates.

Work Breakdown Structure (WBS)

A hierarchical breakdown of the project scope into smaller tasks.

Vendor Managed Inventory (VMI)

An inventory management strategy where the vendor manages the inventory of the buyer.

Types of Inventory

Raw Materials, Work-in-Process (WIP), Finished Goods, Goods in Transit, Maintenance, Repair, and Operating (MRO) materials.

Failure Rate (FR)

The frequency of system or component failure.

Service Level

The percentage of customer demand that is met without stockouts.

Return on Investment (ROI)

A measure used to evaluate the efficiency of an investment.

Transportation Costs

Costs directly associated with transporting goods.

Production Order Quantity Model

A model used when units are produced and sold simultaneously.

Types of Processes

Include job shop, batch, repetitive, and continuous.

Total Quality Management (TQM)

An approach to long-term success through customer satisfaction.

Customer Satisfaction

The measurement of how products and services meet or exceed customer expectations.

Safety Stock

Extra inventory to prevent stockouts.

Inventory Turnover Ratio

A ratio showing how many times a company's inventory is sold and replaced over a period.

Class A Inventory

High importance inventory with significant value but small percentage of items.

Class B Inventory

Moderate importance inventory.

Class C Inventory

Low importance inventory with large number of items but small total value.

Forecast Accuracy

The accuracy of predicting future demand.

Statistical Process Control (SPC)

The use of statistical methods to monitor and control a process.

Cost Leadership

A competitive strategy to become the lowest cost producer.

Differentiation Strategy

A strategy to offer unique products and services.

Lean Manufacturing

An approach to production that minimizes waste while maximizing productivity.

Kanban

A scheduling system that uses visual signals to trigger the movement of materials in a manufacturing process.

Quality Loss Function

Measuring the costs associated with quality deviations.

Forecasting

The process of predicting future events to guide business planning.

Job Design

The process of organizing work into tasks to improve productivity.

Supplier Selection

Choosing suppliers based on certain criteria.

Supply Chain Strategy

Long-term plan to optimize the supply chain to achieve competitive advantage.

Risk Assessment

The identification and evaluation of risks.

Outsourcing

The practice of obtaining goods or services from an external supplier.

Supply Chain Integration

The coordination of all supply chain stakeholders.

Variance

The measure of how much a set of values differs from the average.

Cost of Quality

The total cost of efforts to achieve product quality.

Reliability Engineering

Field of engineering that focuses on the reliability of products.

Project Scope

The work that needs to be accomplished to deliver a product or service.

Inventory Management

Overseeing and controlling orders, storage, and supply of products.

Production Scheduling

The process of planning the production process.

Break-even Analysis

The determination of how many units must be sold to cover fixed and variable costs.

Operational Efficiency

The ability to deliver products or services in the most cost-effective manner.

Lead Time Reduction

Decreasing the time from the initiation of a process to its completion.

Cost-Benefit Analysis

A process of comparing the costs and benefits of a decision.

Quality Audit

An examination of a quality system to determine its effectiveness.

Supplier Relationship Management (SRM)

Strategies and tools to manage the relationships with suppliers.

Changeover Time

The time required to switch from one production run to another.

Inventory Valuation

The method of valuing inventory on hand.

Bill of Materials (BOM)

A comprehensive list of raw materials, parts, and components required to manufacture a finished product.

Heuristic Method

A problem-solving approach employing a practical method.

Material Requirements Planning (MRP)

A production planning and inventory control system.

Capacity Planning

The process of determining the production capacity needed to meet changing demands.

Equilibrium Price

The price at which the quantity of goods supplied is equal to the quantity of goods demanded.

Supply Chain Visibility

The ability to track and view inventory and other supply chain activities in real time.

Resource Planning

The process of identifying and allocating resources to tasks.

Scope Creep

The uncontrolled change or continuous growth in a project’s scope.

Production Capacity

The maximum amount of work that an organization is capable of completing in a given period.

Backward Integration

A strategy where a company acquires its suppliers.

Forward Integration

A strategy where a company acquires its distributors.

Benchmarking

Comparing business processes and performance metrics to industry bests.

Collaborative Forecasting

A forecasting process that involves multiple stakeholders.

Net Present Value (NPV)

The calculation of the present value of future cash flows.

Project Milestones

Specific points in the project timeline that signify significant progress.

Forecasting Techniques

Methods used to predict future demand such as qualitative and quantitative methods.

Order Processing

The method used to track customer orders from initiation through completion.

Dead Stock

Inventory that cannot be sold or used.

Marketing Mix

The combination of factors that can be controlled by a company to influence consumers.

Supplier Risk Assessment

Methodology for evaluating potential risks posed by suppliers.

Inventory Accounting

Method of tracking inventory valuation and cost flow.

Freight Costs

Costs related to the transportation of goods.

Sales Forecasting

An estimation of future sales.

Supply Chain Collaboration

Working jointly with supply chain partners to achieve benefits.

Continuous Improvement Process (CIP)

Ongoing efforts to improve products, services, or processes.

E-commerce Logistics

The process of managing logistics and supply chain operations for online retail.

Environmental Sustainability

Responsible interaction with the environment to avoid depletion of natural resources.

Strategic Sourcing

An ongoing process of evaluating and selecting suppliers to meet purchasing needs.

Production Line Efficiency

The effectiveness of the production line in terms of output.

Factory Automation

The use of control systems for operating equipment in manufacturing and other industries.