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
