BUSOBA 3230 Exam 3

Pieces of work within a project that consume time. The completion of all the activities of a project marks the end of the project.

activities

The average time between completions of successive units in a process (this is the definition used in this book).

cycle time

The number of days of inventory of an item.

days of supply

A metric used to describe the variability of a process.

defects per million opportunities

A measure of the expected number of times inventory is replaced over a year.

inventory turn

Japanese philosophy that focuses on continuous improvement.

kaizen

A project schedule that lists all activities by their late start times. This schedule may create savings by postponing purchases of material and other costs associated with the project.

late start schedule

A production environment where the product is built directly from raw materials and components in response to a specific customer order.

make-to-order

A production environment where the customer is served "on-demand" from finished goods inventory.

make-to-stock

Techniques for testing a random sample of output from a process to determine whether the process is producing items within a prescribed range.

statistical process control (SPC)

The ratio of the time that a resource is actually activated relative to the time that it is available for use.

utilization

A graphical way to analyze where value is or is not being added as material flows through a process.

value stream mapping

The time in which useful work is actually being done on the unit.

value-added time

Quality characteristics that are measured in actual weight, volume, inches, centimeters, or other measure.

variables

The degree to which the product or service design specifications are met.

Conformance Quality

Quality characteristics that are classified as either conforming or not conforming to specification

Attributes

An acronym for the define, measure, analyze, improve, and control improvement methodology followed by companies engaging in Six Sigma programs.

DMAIC

The inherent value of the product in the marketplace.

Design Quality

Looking outside the company to examine what excellent performers inside and outside the company's industry are doing in the way of quality.

External Benchmarking

is a family of standards related to environmental management that exists to help organizations minimize how their operations negatively affect the environment; comply with applicable laws, regulations, and other environmentally oriented requirements; and continually improve in the above

ISO 14000

Formal standards for quality certification developed by the International Organization for Standardization.

ISO 9000

Combines the implementation and quality control tools of Six Sigma and the inventory management concept of lean manufacturing.

Lean Six Sigma

An award established by the U.S. Department of Commerce given annually to companies that excel in quality.

Malcolm Baldrige National Quality Award

A structure for organizing a project where a self-contained team works full time on the project.

Pure project

The philosophy of making workers personally responsible for the quality of their output. Workers are expected to make the part correctly the first time and to stop the process immediately if there is a problem.

Quality at the source

The hierarchy of project tasks, subtasks, and work packages.

Work Breakdown structure (WBS)

Deviation in the output of a process that can be clearly identified and managed.

assignable variation

Deviation in the output of a process that is random and inherent in the process itself.

common variation

Expenditures related to achieving product or service quality, such as the costs of prevention, appraisal, internal failure, and external failure.

cost of quality

The sequence(s) of activities in a project that form the longest chain in terms of their time to complete. This path contains zero slack time. It is possible for there to be multiple critical paths in a project. Techniques used to find the critical path are called CPM, or critical path method, techniques.

critical path

Criteria by which quality is measured.

dimensions of quality

A project schedule that lists all activities by their early start times.

early start schedule

A ratio of the actual output of a process relative to some standard. Also, being "efficient" means doing something at the lowest possible cost.

efficiency

The average time it takes a unit to move through an entire process.

flow time

In this structure, team members are assigned from the functional units of the organization. The team members remain a part of their functional units and typically are not dedicated to the project.

functional project

Activities that need to be completed immediately before another activity.

immediate predecessor

A structure that blends the functional and pure project structures. Each project uses people from different functional areas. A dedicated project manager decides what tasks need to be performed and when, but the functional managers control which people to use.

matrix project

The sum of the setup time and run time for a batch of parts that are run on a machine.

operation time

Any set of activities performed by an organization that takes inputs and transforms them into outputs ideally of greater value to the organization than the original inputs.

process

A measure of how well resources are used. According to Goldratt's definition all the actions that bring a company closer to its goals.

productivity

A series of related jobs usually directed toward some major output and requiring a significant period of time to perform.

project

Planning, directing, and controlling resources (people, equipment, material) to meet the technical, cost, and time constraints of a project.

project management

A specific event in a project.

project milestone

The time required to produce a batch of parts.

run time

The time required to prepare a machine to make a particular item.

setup time

A statistical term to describe the quality goal of no more than 3.4 defects out of every million units. Also refers to a quality improvement philosophy and program.

six sigma

The time that an activity can be delayed without delaying the entire project; the difference between the late and early start times of an activity.

slack time

The output rate that the process is expected to produce over a period of time.

throughput rate

Extension of the critical path models that considers the trade-off between the time required to complete an activity and the cost. This is often referred to as "crashing" the project.

time cost models ("crashing")

The total average investment in raw material, work-in-process, and finished goods inventory.

total average value of inventory

Managing the entire organization so it excels in all dimensions of products and services important to the customer.

total quality management (TQM)

The range of values in a measure associated with a process that is allowable given the intended use of the product or service.

upper and lower specification limits