Ch. 3 Vocab for Test #2 Flashcards
A system of structured activities that use resources to change inputs (energy, material, information, labor, knowledge) into valuable outputs.
process
A way of viewing activities in an organization as processes rather than as departments or functions.
process thinking
An activity that changes an input.
operational (change)
An activity that moves an input from one place to another without changing any of the other characteristics.
transportation (move)
An activity that checks or verifies the results of another activity.
inspection (check)
An unintentional stoppage of the flow of work.
delay (wait)
An activity that intentionally stops flow of work items and places them under formal control.
storage (inventory/store)
The specific types of outputs and levels of performance that a process can generate.
process capabilities
The limit on the amount of output per period of time that a process can generate or store given a level of inputs and resources available.
capacity
The highest level of output that a process can achieve under ideal conditions in the short term; also known as design capacity.
maximum capacity
The level of capacity or output that the process can be expected to produce under normal conditions; what management plans for under normal conditions.
effective capacity
The percent of process capacity that is actually used.
utilization
The percentage of units successfully produced as a percentage of inputs.
yield rate
The overall management system that strives to improve system performance by identifying, focusing on, and managing constraints.
Theory of Constraints (TOC)
An activity or resource that limits or constrains the output of a process.
bottleneck