Supply Chain Management Exam #3

process strategy
an organization’s approach to transforming resources into goods and services
process focus
a production facility organized around processes to facilitate low-volume, high variety production
parts or components of a product previously prepared, often in a continuous process
repetitive process
a product-oriented production process that uses modules
product focus
a facility organized around products; a product-oriented, high volume, low variety process
mass customization
rapid, low-cost production that caters to constantly changing unique customer desires
build to order
produce to customer order rather than to a forecast
the delay of any modifications or customization to a product as long as possible in the production process
crossover chart
a chart of costs at the possible volumes for more than one process
the ability to respond with little penalty in time, cost, or customer value
a drawing used to analyze movement of people or material
time function mapping
a flowchart with time added on the horizontal axis
value stream mapping
a process that helps managers understand how to add value in the flow of material and information through the entire production process
process charts
charts that use symbols to analyze the movement of people or material
service blueprinting
a process analysis technique that lends itself to a focus on the customer and the provider’s interaction with the customer
computer numerical control
machinery with its own computer and memory
automatic identification system
a system for transforming data into electronic form, for example, bar codes
radio frequency identification
a wireless system in which integrated circuits with antennas send radio waves
process control
the use of information technology to control a physical process
vision systems
systems that use video cameras and computer technology in inspection roles
a flexible machine with the ability to hold, move, or grab items. it functions through electronic impulses that activates motors and switches
automated storage and retrieval system
computer controlled warehouses that provide for the automatic placement of parts into and from designated places in a warehouse
automated guided vehicle
electronically guided and controlled cart used to move materials
flexible manufacturing system
a system that uses electronic signals from a centralized computer to automate production and material flow
computer integrated manufacturing
a manufacturing system in which CAD, FMS, inventory control, warehousing, and shipping are integrated
process redesign
the fundamental rethinking of business processes to bring about dramatic improvements in performance
the throughput or number of units a facility can hold, receive, store, or produce in a period of time
design capacity
the theoretical maximum output of a system in a given period under ideal conditions
effective capacity
the capacity a firm can expect to achieve, given its product mix, methods of scheduling, maintenance, and standards of quality
actual output as a percent of design capacity
actual output as a percent of effective capacity
capacity analysis
a means of determining throughput capacity of workstations or an entire production system
the limiting factor or constraint in a system
bottleneck time
the time of the longest (slowest) process
throughput time
the time it takes for a product to go through the production process with no waiting
theory of constraints
a body of knowledge that deals with anything that limits an organization’s ability to achieve its goals
break even analysis
a means of finding the point, in dollars and units, at which costs equal revenues
net present value
a means of deterring the discounted vale of a series of future cash receipts
tangible costs
readily identifiable costs that can be measured with some precision
intangible costs
a category of location costs that cannot be easily quantified, such as quality of life and governments
the location of competing companies near each other, often because of a critical mass of information, talent, venture capital, or natural resources
factor-rating method
a location method that instills objectivity into the process of identifying hard-to-evaluate costs
locational cost-volume analysis
a method of making an economic comparison of location alternatives
center of gravity method
a mathematical technique used for finding the best location for a single distribution point that services several stores or areas
transportation model
a technique for solving a class of linear programming problems
geographic information system
a system that stores and displays information that can be linked to a geographic location