WGU C215 Operations Management -Objective
Assessment Prep Guide & Terminologies Combo
Study Guide
1. customer focus
2. continuous improvement
3. employee empowerment
4. use of quality tools
5. product design
6. process management
7. managing supplier quality
Total Quality Management (TQM) Philosophy
Basic function of Six Sigma. Measures the process potential and performance of
processes. The higher the range of Cpk, the improved is the ability of the process
to complete its necessities. Uses both the process variability and the process
specifications to determine whether the process is "capable."
Process Capability Index (Cpk)
A disciplined, data-driven approach and methodology for eliminating defects
(driving toward six standard deviations between the mean and the nearest
specification limit) in any process - from manufacturing to transactional and from
product to service.
Six Sigma
The theoretical maximum output of a system in a given period under ideal
conditions.
Design Capacity
The capacity a firm expects to achieve given its current operating constraints.
Effective Capacity
proximity to customers, transportation, source of labor, community attitude,
proximity to suppliers, and many other factors.
Location Analysis
A type of process used to produce a large volume of a standardized product.
Line Processes
A type of process used to produce a small quantity of products in groups or
batches based on customer orders or specifications.
Batch Processes
A type of process used to make a one-at-a-time product exactly to customer
specifications.
Project Processes
A type of process that operates continually to produce a high volume of a fully
standardized product.
Continuous Processes
Longest task in the process.
Bottleneck
A type of automated system that combines the flexibility of intermittent
operations with the efficiency of continuous operations.
,Flexible Manufacturing System (FMS)
A technique for monitoring the flow of jobs between work centers.
Output/Input Control
The net increase created during the transformation of inputs into final outputs.
Value-Added
Layouts that combine characteristics of process and product layouts.
Hybrid Layouts
Table that reflects opinions of managers with regard to the importance of having
any two departments close together.
Relationship Chart (REL)
The shortest distance between two locations using north-south and east-west
movements.
Rectilinear Distance
Table that gives the number of trips or units of product moved between any pair
of departments.
From-To Matrix
Schematic showing the placement of resources in a facility.
Block Plan
The average of the observation times for each of the work elements.
Mean Observed Times
The mean observed time multiplied by the performance rating factor by the
frequency of occurrence.
Normal Time
The length of time it should take a qualified worker using appropriate process
and tools to complete a specific job, allowing time for personal fatigue and
unavoidable delays.
Standard Time
A philosophy designed to achieve high-volume production through elimination of
waste and continuous improvement. Based on a "pull" system rather than a
"push" system. The three elements are just-in-time manufacturing, total quality
management, and respect for people.
Just-in-Time (JIT)
A card that specifies the exact quantity of product that needs to be produced.
Kanban card
A philosophy of neverending improvement.
Continuous Improvement
Supplies materials or services directly to the processing facility.
Tier One Suppliers
Directly supplies materials or services to a tier one supplier in the supply chain.
Tier Two Suppliers
Directly supplies materials or services to a tier two supplier in the supply chain.
Tier Three Suppliers
Management of the flow of materials from suppliers to customers in order to
reduce overall cost and increase responsiveness to customers.
Supply Chain Management (SCM)
,Determines the labor and machine resources needed to fill the open and planned
orders generated by the MRP.
Capacity Requirements Planning (CRP)
A system that uses the MRP, inventory record data, and BOM to calculate
material requirements.
Material Requirements Planning (MRP)
Large software programs used for planning and coordinating all resources
throughout the entire enterprise.
Enterprise Resource Planning (ERP)
Includes the budgeted levels of finished products, inventory, backlogs, workforce
size, and aggregate production rate needed to support the marketing plan.
Aggregate Plans
Businesses to outsource elements of the company's distribution and fulfillment
services. specialize in integrated operation, warehousing and transportation
services customized to customers' needs based on the demands and delivery
service requirements for their products and material
Third-Party Logistics (3PL)
the world's leading supply chain framework, linking business processes,
performance metrics, practices and people skills into a unified structure. The
goals are to increase the speed of system implementations, support
organizational learning goals, and improve inventory turns.
Supply Chain Operations Reference model (SCOR)
Initiation, Planning, Execution and Closure.
Project Life Cycle Phases
A plan for produced in each time period such as production, staffing, inventory,
etc.
linked to manufacturing where the plan indicates when and how much of each
product will be demanded.
It gives production, planning, purchasing, and top management the information
needed to plan and control the manufacturing operation.
Master Production Schedule (MPS)
The meaning of quality as defined by the customer.
Total Quality Management (TQM)
network diagramming notation that places activities in the nodes and arrows to
signify precedence relationships
activity-on-node
provides users with information on services and products and provides an
opportunity for suppliers to advertise
advertising revenue model
companies receive a referral fee for directing business to an affiliate
affiliate revenue model
includes the budgeted levels of finished products, inventory, backlogs, workforce
size, and aggregate production rate needed to support the marketing plan
aggregate plan
computer software packages for designing process layouts
ALDEP and CRAFT
, the amount of time the analyst allows for personal time, fatigue, and unavoidable
delays
allowance factor
brings work to the worker rather than the worker to the workplace
alternative workplace
inventory built in anticipation of future demand
anticipation inventory
sets up and runs ERP systems
application service provider (ASP)
costs incurred in the process of uncovering defects
appraisal costs
produces standard components that can be combined to customer specifications
assemble-to-order strategy
causes that can be identified and eliminated
assignable causes of variation
a method using telephone models to send digital orders to suppliers
automated order entry system
unfilled customer orders
back orders
starts with the due date for an order and works backward to determine the start
date for each activity
backward scheduling
scheduling method that determines when the job must be started to be done on
the due date
backward scheduling
a type of process used to produce a small quantity of products in groups or
batches based on customer orders or specifications
batch process
degree to which the job is intrinsically satisfying to the employee
behavioral feasibility
studying the business practices of other companies for purposes of comparison
benchmarking
the volume of output that results in the lowest average unit cost
best operating level
typically represents project activities
beta probability distribution
lists all the subassemblies, component parts, and raw materials that go into an
end item and shows the usage quantity of each required
bill of material (BOM)
schematic showing the placement of resources in a facility
block plan
longest task in the process
bottleneck
technique used to compute the amount of goods that must be sold just to cover
costs
break-even analysis
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