BADM 275 Midterm 1

Cycle time: average time between completion of outputs

________ _____: average time between completion of outputs

inputs outputs

Input process output view of operations: _______ are converted into ____________

order qualifier

minimum selection criteria that permits products to be considered by potential customers. Screening criteria.

order winner

a criterion customers use to differentiate the services or products of one firm from those of another, creating products that makes a business unique. Differentiating criteria

winners qualifiers

Highly competitive industries result in order __________ becoming order ______________ quickly

tradeoffs

the inability to achieve one capability without sacrificing another

mass customization

a strategy that uses technology to deliver customized services on a mass basis, challenges the tradeoffs notion

Manufacturing

_______________ process: customer expectation easily defined, low consumer contact, can inventory, able to replace defective unit

Service

__________ process: customer expectation varies, high consumer contract, no inventory, defective units cannot be replaced

Project

________: output of 1, fully customizable features. Constructing a building or catering a party

Job Shop

___ ___: produces small customizable batches, things built to order, artisanship

Batch Manufacturing

______ _____________________: producing periodic batches of the same product

Assembly Line

____________ ____: production where parts are assembled in controlled environment and controlled rate

Continuous

_________________: high volume, automated, standardized production

bottleneck

Capacity of a process is equal to the capacity of the ____________

capacity

If input rate > capacity rate, then the output rate is the _________ rate

input

If input rate < capacity rate, then the output rate is the ______ rate

variation

Higher _____________ lowers ability to maximize utilization

utilization

When there is more variability, the system is more sensitive to an increase in capacity _________________

Qualitative

______________ forecast: sales force intelligence, market research. Subjective, can incorporate expertise, hard to codify

Quantitative

_______________ forecast: numeric forecasts that are objective, easy to codify, difficult to incorporate expertise

Naïve

______ forecast: using previous period's actual level of demand

Average

__________ forecast: using the mean of all the previous periods' actual level of demand

Moving Average

____________ ___________ forecast: using the mean of n most recent periods of actual demand

Mean Absolute Error

________ ___________ ______: average of the absolute values of (Actual Demand - Forecasted Demand)

Mean Squared Error

_____ ________ _______: average of the squares of (Actual Demand - Forecasted Demand)

standardized

As production moves from project to batch to continuous, products become more ___________________

Crossover Point

______________ ________: (Process 2 FC - Process 1 FC) / (Process 1 VC - Process 2 VC)

Poisson Arrival

__________ __________: arrival of new event is independent of prior event

Utilization

______________: Arrival rate / Service Rate

system

Average Number of Customers in _________: Arrival rate / (service rate - arrival rate)

time

Average wait _____ in system: 1 / (Service Rate - Arrival Rate)

idle

____ time: 1 - (Arrival rate / service rate)

Service rate

_________ ____: 1 / service time

input rate

_______ _____: demand rate, rate at which demand/orders/inventory come into system

output rate

______ ______: flow rate, throughput rate, sum of all the processing times

capacity rate

_____________ ______: the maximum that can go through a system, identifies maximum revenue rate

flow time

______ ____: time required to go through process

cycle time

______ ____: average time between completion of outputs

capacity rate

____________ ____: number of resources / processing time

processing time

____________ _____: time required to complete each activity

Little's Law

The average amount of inventory in a system is equal to the product of the average demand rate and the average time a unit is in the system. Or for services: arrival rate x flow time

flow time

Increasing the capacity of non bottleneck activities reduces the _____ ____, which can hopefully lower costs

parallel

For _________ workers: only count the higher processing time when calculating the overall flow time since they can work at the same time

Stable

_______ forecasts: used throughout company, more for long term decisions

Responsive

___________ forecasts: decisions based on real time accuracy and market conditions

new

For a ___ product, you want forecasting to be based on long term projections

mature

For a _______ product, you can generally be more responsive with forecasts

decreases

As forecast horizon increases, forecast accuracy ___________

Error

______: actual demand - forecasted demand

Services

_________: package of features that affect the 5 senses

unique

The process type of a project in services is ______ for each customer

Supply Chain

_______ ____: flow of goods and services to transform inputs into outputs

recent

Exponential smoothing requires the most ______ forecast

economies of scale

As volume increases, average cost per unit of output drops

low

___ rates of capacity utilization in service organizations may be appropriate

Value

Refers to the relationship between quality and the price paid by the consumer

customer

More __________ involvement is more likely for offering a wide variety of customized services

hard

For services, good quality in the eyes of the customer is _____ to specify

steady

Little's Law applies when a system is in a ______ state