Operations Management Final Exam Review

OCSM
Operations and supply chain management – the design, operation, and improvement of the systems that create and deliver the firm’s primary products
Process
One or more activities that transform inputs into outputs
Business Analytics
The use of current business data to solve business problems using mathematical analysis
Value
The attractiveness of a product relative to its price
Benchmarking
When one company studies the process of another company to identify best practices
Pure Project
A structure for organizing a project where a self-contained team works full time on the project
Slack Time
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
EVM
Earned Value Management – Technique that combines measures of scope, schedule, and cost for evaluating project progress
Gantt Chart
Shows in a graphic manner the amount of time involved and the sequence in which activities can be performed. Often referred to as a bar chart.
Early Start Schedule
A project schedule that lists all activities by their early start times.
Capacity
The output that a system is capable of achieving over a period of time
Economies of Scope
When multiple products can be produced at lower cost in combination than they can be separately
Capacity Cushion
Capacity in excess of expected demand
Focused Factory
A facility designed around a limited set of production objectives. Typically the focus would relate to a specific product or product group
Decision Trees
A schematic model of the sequence of steps in a problem and the conditions and consequences of each step
Customer Order Decoupling Point
Where inventory is positioned in the supply chain
Lead Time
The time needed to respond to a customer order
Manufacturing Cell
Dedicated area where a group of similar products are produced
Assembly Line
An item is produced through a fixed sequence of workstations, designed to achieve a specific production rate
Lean Manufacturing
To achieve high customer service with minimum levels of inventory investment
Little’s Law
States a mathematical relationship between throughput rate, flow time, and the amount of work-in-process inventory
Hybrid
Combines the features of both make-to-order and make-to-stock
Utilization
The ratio of the time that a resource is actually activated relative to the time that it is available for use
Make-to-order
A process that is activated only in response to an actual order
Make-to-stock
A process that produces standard products that are stored in finished goods inventory
Run Time
The time required to produce a batch of parts
DMAIC
An acronym for define, measure, analyze, improve, and control improvement methodology followed by companies engaging in Six Sigma programs
ISO 9000
Formal standards for quality certification developed by the International Organization for Standardization
Malcolm Baldrige National Quality Award
An award established by the US Department of Commerce given annually to companies that excel in quality
Capability Index
The ratio of the range of values allowed by the design specifications divided by the range of values produced by a process
SQC
Statistical Quality Control – A number of different techniques designed to evaluate quality from a conformance view
Variables
Quality characteristics that are measured in actual weight, volume, inches, centimeters, or other measure
Attributes
Quality characteristics that are classified as either conforming or not conforming to specification
Kanban
A signaling device used to control production
Freeze Window
The period of time during which the schedule is fixed and no further changes are possible
Waste Reduction
The optimization of value-adding activities and elimination of non-value-adding activities that are part of the value stream
Value Stream Mapping
A graphical way to analyze where value is or is not being added as material flows through a process
Customer Value
In the context of lean production, something for which the customer is willing to pay
Hub-and-Spoke System
A system that combines the idea of consolidation and that of cross-docking
Third-Party Logistics Company
A company that manages all or part of another company’s product delivery operations
International Logistics
All functions concerned with the movement of materials and finished goods on a global scale
Transportation Method
A special linear programming method that is useful for solving problems involving transporting products from several sources to several destinations
Real Time
As soon as a transaction is entered the effect is known by all users of the system
Decision Support
This is the ability of the system to help a user make intelligent judgments about how to run the business
Transaction Processing
This is the posting and tracking of the detailed activities of a business
ERP
Enterprise Resource Planning – A computer system that integrates application programs in accounting, sales, manufacturing, and the other functions in a firm. This integration is accomplished through a database shared by all the application programs
Decomposition
The process of identifying and separating time series data into fundamental components such as trend and seasonality
MAPE
Mean Absolute Percent Error – The average error measured as a percentage of average demand
Trend Lines
The usual starting point in developing a forecast; adjusted for seasonal effects, cyclical elements, and any other expected events that may influence the final forecast; Four most common types: linear, S-curve, asymptotic, exponential
Exponential Smoothing Method
A time series forecasting technique using weights that decrease exponentially (1-a) for each past period