practical operations management exam 1

Process
activities that transform inputs to outputs
value-added
difference between total value of outputs and total value of inputs
value-creation
achieving positive value added
productivity
measure of value creation
operations
set of activities that turns inputs to outputs
sustainability
the degree to which an activity with immediate benefit does not incur greater costs in the long term
green
production is green if it is sustainable
lean
operating without waste
responsibility
obligation to perform
ethics
principles governing conduct; delineating good from bad
tangibility
the degree of perceivable, physical essence of a product
goods
tangible products
services
intangible products
inventory
tangible items ready for use or sale
stockpiling
producing or securing goods in advance of demand
supply chain
a system consisting of all organizations that play some role in supplying a particular product to a customer
value chain
a system consisting of all functions within an organization that play some role in adding value to the organizations product
local optimization
localized problem solving that ignores any larger problem of which local decision is a component
NGO
a nongovernmental organization , understood to be a non-profit
scientific management
methodology emphasizing the use of data collection and analysis to redesign processes and improve efficiency
Incident
a unscheduled event requiring immediate attention
iterative planning
deliberately adjusting plans at a short interval to reflect new info.
strategy
methodology and resulting plan the identifies the long term goals of an organization
planning horizon
the farthest point in the future considered in decision making
business analytics
continuous investigation of business performance using large volumes of data
tactics
means to pursue strategic goals with available resources
biomimicry
imitation of natural processes and systems
vision
an organizations defining statement about the future
mission
organizations statement about what it is doing to meet its vision
business unit
a segment of a larger organization, usually managed as a profit loss center
goal alignment
developing goals compatible among business units and consistent withe higher level goals of that organization
enterprise resource planning (ERP)
strategic information system that integrates all functional areas of an organization
data warehouse
database of an organization ongoing operations archived for analysis and decision supports
data mining
analysis of data in search of new patterns and relationships
e-commerce
buying and selling products through electronic transactions
core competency
specific ability that distinguishes a business from its competitors
order qualifiers
minimum competitive characteristics necessary to be considered for a customers order
order winners
those characteristics that give a product a competitive advantage
make-to-order
produces high volumes of standard products
total productivity measure
ratio of all value of outputs combined over combined value of all inputs
partial productivity measure
ratio of a particular output over a particular input
quality of conformance
degree to which output meets producer expectations
total quality management (TQM)
simultaneous and continuous pursuit of improvement of quality and design with involvement of entire organization
employee empowerment
granting an employee the authority to take independent action on behalf of the overall operation
kaizen
Japanese term for continuous improvement
quality circles
a group of employees that meets regularly to discuss and develop opportunities for continuous improvement on an operation
pareto analysis
use of stats to identify the factors most influential in a particular outcome of interest
causal modeling
predicting the outcome by identifying the relationship with one or more factors
natural variation
random variation; randomness inherent in a process
assignable variation
deviations with a specific cause or source
six sigma
quality management using analytic tools and widespread employee involvement
DMAIC
define, measure, analyze, improve , control; various phases of six sigma methodology
reverse engineering
disassembling and evaluating a competitors product
rapid prototypng
creating physical examples of a design as quickly as possible, to allow further assessment and improvement
quality function deployment
modeling mathmatical correlations between customers perception of a product and its technical design specifications
cradle-to-gate
planning from purchase of raw materials to end of production
cradle-to-grave
planning from purchase of raw materials ro sale of produc to customer
manufacturability
degree to which a product can be created easily and reliably according to expectations
concurrent engineering
integration of design and process development phases. increases manufacturability
assemble to order
produces standard models to be customized
proaction
avoidance of preventable risk, 1st and most basic stage of risk management
forecasting
predicting future events
crowdsourcing
combining interdependent efforts of many people to accomplish a task
expert opinion panel
a small group of highly knowledgeable people who develop prediction through discussion and consensus
jury of executive opiniom
an expert panel composed of managers
delphi method
a qualitative forecasting technique in which experts achieve consensus through a blind process via a facilitator
extrapolation
projecting existing data into the future
time series
values observed in chronological order
time series decomposition
modeling observed values based on identifiable component influences
error
the difference between an observed value and a predicted one
naiive forecast
assuming a future value equals the most recent actual value available
mean error
an average of forecast errors; useful for indicating forecast bias
forecast bias
a tendency to create errors that are predominately positive or negative
means squared error
an average of the squared values of a set of forecast values
mean absolute deviation
an average of the absolute values of a set of forecast errors
percent error
forecast error divided by the corresponding actual value
tracking signal
ratio of the sum of a set of forecast errors over the MAD of that forecast
responsiveness
the degree to which a technique modifies forecasts to reflect recent changes in past data
regression analysis
using mathematical relationships between two or more variables to predict future values
correlation coefficient
a measure of the strength of the relationship between two variables
coefficient of determination
proportion of variation in a dependent variable that is explained by a regression model
known unknown
a source of uncertainty known to a decision maker, usually evident in past experience or data
exogenous variation
a non repeating deviation in a time series created by a distinct , identifiable external influence
black swan
an incident of extreme consequence, unexpected or considered highly improbale
unknown unknown
uncertainty omitted from planning bedcaus the decision maker is unaware of its presence
trend
a sustained period of growth or decline
seasonality
a repeating pattern in a time series
cyclic variation
seasonality with a cycle time longer than one year; generally associated with economic influence on time series data
seasonal relatives
a set of numerical values the describe a seasonal pattern