SOM 306 Midterm 1

Flow Chart

A schematic of the sequence of steps involved in an operation or process.

iso 14000

A set of international standards and a certification focusing on a company's environmental responsibility.

Mission

A statement defining what business an organization is in, who its customers are and how its core beliefs shape its business.

Break-even analysis

A technique used to compute the amount of goods a company would need to sell to cover its costs.

Pareto Analysis

A technique used to identify quality problems based on their degree of importance.

Sustainability

A trend in business to reduce waste, recycle, and reuse products.

Line Process

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

Repetitive Operations

Processes used to produce one or a few standardized products at high volume.

Manufacturing Organizations

Produce a tangible product, low customer contact

Service Organizations

Produce an intangible product such as ideas, assistance, or information. Higher customer contact.

Assemble to order strategy

Produces standard components that can be combined to customer specification

Scientific Management

approach to management that focused on improving output by redesigning jobs and determining acceptable levels of worker output.

Concurrent Engineering

brings together multi-functioning teams in the early stages of product design in order to simultaneously design the product and process.

Control Charts

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

Prevention Costs

costs incurred preventing poor quality from occurring; preparing and implementing a quality plan.

Appraisal Costs

costs of uncovering defects; testing evaluating and inspecting quality

Just-in-time

designed to achieve high-volume production through elimination of waste and continuous improvement.

Plan do study act cycle

diagram that describes the activities that need to be performed to incorporate continuous improvement into operation

Internal Failure Costs

discovering poor product quality before the product reaches the market; scrap, rework, and material losses

Fitness for use

evaluates how well the product performs for its intended use.

Management Science

field of study that focuses on the development of quantitative techniques to solve operations problems.

Psychological Criteria

focuses on judgmental evaluations of what constitutes product or service excellence.

Intermittent Operations

processes used to produce a variety of products with different processing requirements in lower volumes.

Make to order

produces products to customer specs after an order has been received

Make to stock strategy

produces standard products and services for immediate sale or delivery

Value for price paid

quality defined in terms of product or service usefulness for the price paid

External Failure Costs

quality problems that occur at the customer site; returns, repairs, and recalls.

Partial productivity

ratio of all outputs to a single input

Total Productivity

ratio of all outputs to inputs

Multifactor productivity

ratio of outputs to several but not all inputs.

Utilization

ratio of time a resource is used to time its available for use resource use/ available use

Reengineering

redesigning a company's processes to make them more efficient.

Design For manufacture

series of guidelines to follow in order to produce a product easily and profitably.

Revenue

sp x Q

Flexibility

strategy where an organization offers greater product variety to customers.

Benchmarking

studying practices of other companies considered the best and comparing them to your companies practices.

Support services

support provided after the product is purchased

manufacturability

the ease with which a product can be made

Batch Process

used to produce a small quantity of products in groups or batches based on customer order and specification.

Remanufacturing

uses components of old products in the production of new ones.

9000

Fundamentals and Standards

Scatter Diagrams

Graphs that show how two variables are related to each other

9004

Guidelines for performance

conformance to specifications

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

Human Relations Movement

Idea that more than money effects worker productivity.

Supply Chain Managment

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

Environmental Scanning

Monitoring the external environment for changes and trends to determine business opportunities and threats.

Structure

Operations decisions related to the design of the production processes, such as facilities, technology, and flow of goods and services.

Infrastructure

Operations decisions related to the planning and control systems of the operation, such as organization of operations, skills and pay, and quality measure.

Efficiency

Performing activities at the lowest possible cost

Order Winners

Priorities that win orders in the marketplace

Flexibility

Priority focusing on offering a wide-variety of goods and services,

Quality

Priority focusing on the quality of the goods and services.

Reliability

The probability that a product, service, or part will perform as intended.

Product design

The process of defining all of the products characteristics

Reverse Engineering

The process of dissembling a product to analyze its design features.

Deming Prize

A Japanese award given to companies to recognize efforts in quality improvement.

Cause and Effect Diagram

A chart that identifies potential causes of particular quality problems

Histogram

A chart that shows the frequency distribution of observed values of a variable

Robust Design

A design that results in a product that can perform over a wide range of conditions.

Checklist

A list of common defects and the number of observed occurrences of these defects.

Productivity

A measure of how efficiently an organization converts inputs into outputs.

Malcolm Baldridge National Quality Award

An award given annually to companies that demonstrate quality excellence and establish best practice standards in the industry

Core Competencies

The unique strengths of a company.

Order qulaifiers

Competitive priorities that must be met for a company to be considered competitive in the marketplace.

Trade-off

The need to focus on one priority more than others

Value Added

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

Tactical Decisions

Decisions that are more Specific and short term in nature

Strategic Decisions

Decisions that set the direction for the entire company. Broad in scope and long term in nature.

Service Design

Establishing all the characteristics of a service. i.e. physical, sensual, and psychological benefits.

Break Even formula

F/ sp-vc or revenue = total cost

Process Velocity

Ratio of throughput time to value added Throughput/ Value added

9001

Requirements

Total Quality Managment

Seeks to improve quality by eliminating causes of product defects and by making quality the responsibility of everyone in the organization.

Product Life Cycle

Series of stages that products pass through in their lifetime. CHaracterized by changing product demands over time.

Hawthorne Studies

Studies responsible for creating the human relations movement, which focused on giving more attention to worker needs.

Mass Customization

The ability of a firm to highly customize its goods and services at high volumes.

Operations Managment

The business function responsible for planning, coordinating, and controlling the resources needed to produce a company's goods and services.

Role of Operations Management

To transform organizational inputs into outputs.

Time-Based Competition

a company trying to develop new products and services and deliver them faster to customers than the competitor.

Iso 9000

a set of international quality standards and a certification demonstrating that companies have met all standards specified. `

Efficiency

actual output/ standard output

Competitive Priorities

operation capabilities developed in order to give a company an advantage in the market place.

Productivity

outputs/inputs

Cost

priority focusing on low operations costs

Time

priority focusing on speed and on-time delivery

Continuous Process

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

Project Process

process used to create a one time product exactly to customer specifications