Chapter 3 Definitions Flashcards
Process
A system of activities that transforms inputs into valuable outputs
Process thinking
A way of viewing activities in an organization as processes rather than as departments or functions
Juran’s law
A key premise of process thinking : 15% of operational problems are the result of human errors; the other 85% are due to systemic process errors
Operation (change)
An activity that changes an input
Transportation (move)
An activity that moves an input from one place to another without changing any of its other characteristics
Inspection
Inspection ( check) an activity that checks or verified the result of another activity
Delay ( wait )
An unintentional stoppage of the flow of work
Storage (inventory/store)
An activity that intentionally stops the flow of work items and places them under formal control
Process capabilities
The specific types of outputs and levels of performance that a process can generate
Capacity
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
Maximum capacity
The highest level of output that a process can achieve under ideal conditions in the short term; also known as design capacity
Effective capacity
The level of capacity or output that a process can be expected to produce under normal conditions; what management plans for under normal conditions
Utilization
The percent of process capacity that is actually used
Yield rate
The percentage of units successfully produced as a percentage of inputs
Economies of scale
As production volumes increase with additions of capacity, the unit cost to produce a product decreases to an optimal level
