C720 Flashcards
What are Appraisal Costs?
Appraisal Costs are the costs associated with measuring and monitoring the quality of purchased materials and services.
What are Prevention Costs?
Prevention Costs are the costs associated with the processes put in place to prevent quality issues opposed tp detecting and correcting them.
What is an External Failure Cost?
External Failure Costs are the costs associated with defects found after the customer receives the product/service.
What is an Internal Failure Cost?
Internal Failure Costs are the expenses incurred when defects/quality issues are discovered and corrected before the product reaches the customer.
What is Total Quality Management?
What does it do?
Total Quality Management is the continual process of detecting and reducing/eliminating errors in manugacturing.
Streamlines supply chain management, improves customer experience.
What is Six Sigma?
Six Sigma is a continuous improvement methodology that focuses on defect reduction and process optimization.
What makes up the Six Sigma process?
Define, Measure, Analyze, Improve, Control.
What is Operations Management?
What is the goal of Operations Management?
Operations Management is the management of the processes that transform inputs to outputs.
To maximize efficiency while adding value to the customer
What is Transportation (Pipeline) Inventory?
Inventory that is in transit/moving through the pipline.
What is a Stock Out?
A Stock Out happens when inventory is completely out/depleted.
What is Economic Order Quanity (EOQ)?
EOQ is a model used for finsihed goods.
What is Economic Production Quantity (EPQ)?
EPQ is a model used for raw materials/production.
What is ABC Analysis?
ABC Analysis is an inventory categorization technique in material management where accuracy and control move A though C.
What do each parts of ABC Analysis symbolize?
Which are “Big Ticket Items” or “Money Makers”
A - Tight control & very accurate records
B - Less tight & good records
C - Simple control & minimal records..
A’s
What is the Pareto Principle?
The Pareto Principle states that 80% of revenue is driven by 20% of inventory items.
What is Just in Time II (JIT II)?
Give an example.
JIT II is the relationship where a supplier manages inventory at the distribution level.
Someone from Coca-Cola working at Wal-Mart distribution.
That is the Perpetual Inventory System?
Who uses it?
The Perpetual Inventory System is where there is continous monitoring of inventory levels.
Big businesses. Wal-Mart
What is the Supply Chain?
The Supply Chain is the connected activities related to the creation of a product through to the delivery to the customer.
What is a Agile Supply Chain?
Give an example.
An Agile Supply Chain focuses on speed and adaptability to get products to the market quickly.
Products with short life cycles & unpredictable demand. Fast fashion.
What is a Lean Supply Chain?
Give an example.
Lean Supply Chains focus on streamlined processes to reduce costs and minimize waste.
Traditional products with long life cycles. Hammers, screwdrivers
What is Vertical Integration?
Vertical Integration is when a company owns mulitple assets within a supply chain.
What is Backward Vertical Integration?
Backward Vertical Integration is when a company moves “back” in the supply chain and purchases a supply aspect.
What is Forward Vertical Integration?
Forward Vertical Integration is when a company moves “forward” in the supply chain. Opening up retail stores - customer facing.
What are Inbound Logistics?
Inbound Logistics are the flow of raw materials & information into a business from its suppliers.
What are Outbound Logistics?
Outbound Logistics are the flow of products and information from a business to its customers.
What is Benchmarking?
Benchmarking is the process of measuring performance against other companies.
What is a Bottleneck?
A Bottleneck is the most limiting constraint.
What is a Process Bottleneck?
Process Bottlenecks are the point in the process that requires the longest time or has the slowest rate of production.
What is the Theory of Constraints?
The Theory of Constraints is a 5-step process to overcome bottlenecks.
What are the 5 Steps in the Theory of Constraints?
- Identify
- Exploit
- Moving things around - Subordinate
- Elevate - how to overcome
- Repeat
What is an Aggregate Plan?
An Aggregate Plan is a production plan that considers the production needs of a group of products/product family.
What is the Master Production Schedule?
Is this for the long-term or short-term?
The Master Production Schedule is a detailed plan that outlines the production schedule for a specific product based on the demand forecast, production of capacity, and inventory levels.
Short-term
What is Materials Requirements Planning (MRP)?
What is the goal?
MRP is a computer-based inventory management system that is used to manage and track raw materials that will be used in the manufacturing process of a product.
To ensure that the right materials are available at the right time.
What is Manufacturing Resource Planning (MRP II)?
What does it do?
MRP II is a computer-based system used in manufactoring organization to manage the production process.
Integrates production planning & inventory control for a single system
What is Enterprise Resource Planning?
Who uses Enterprise Resource Planning?
Enterprise Resource Planning integrates various functions into one system. The entire organization has access to different levels of data.
Big companies - Schluter.
What is Lead Time?
Lead Time is the time from when a company orders material to the time it takes to reach the supplier’s offices, time to fill the order, and shipping time.
What is a Perpetual Inventory System?
A Perpetual Inventory System is one where it is continously monitors inventory levels.
What is a Control Chart?
Control Charts are graphical depictions of process output where the raw data is plotted in real-time
within upper and lower control limits
What is a Histogram?
Histograms demonstrate the frequency of data within a preset range of values.
What is a Scatter Plot?
Scatter Plots display data as a relationship between two variables.
What is Economies of Scale?
Economies of Scale is the ability to produce more goods at a lower cost by utilizing the same equiptment and production process.
What are Economies of Scope?
Economies of Scope can be expressed as building the necessary volume by producing a variety of products in combination using the same process and equipment.
What is Lag Strategy?
Lag Strategy entails adding capacity only after an organization is running at full capacity.
What is Lead Strategy?
Lead Strategy adds capacity with the anticipation of an increase in demand.
What are the Three Primary Types of Constraints in a System?
Market (demand), Process (throughput), and Product (supply)
What are Andons?
Andons are call lights used to indicate a problem exists at a work station.
What is a Cellular Layout?
A Cellular Layout can be used for parts that require the same/similar processes on the same equiptment.
