Chapter 3 Terms

Question 1

Process

Answer 1

system of structured activities that use resources to transform inputs (energy, materials and info) into valuable outputs

Question 2

Process thinking

Answer 2

a way of viewing activities in an organization as processes rather than departments or functional areas

Question 3

Anatomy of a process 4 defining characteristics

Answer 3

Activities
Inputs/outputs/flows
Process structure
Management policies

Question 4

5 Activities of a Process

Answer 4

Operation
Transportation
Inspection
Delay
Storage

Question 5

Operation

Answer 5

any activity that transforms an input (physical transformations)

Question 6

Transportation

Answer 6

any activity that moves an input from one place to another without transforming its other characteristics

Question 7

Inspection

Answer 7

checks or verifies the results of another activity (inspection comparing to a standard)

Question 8

Delay

Answer 8

occurs when the flow of an input is unintentionally stopped as a result of interference (insufficient operating capacity)

Question 9

Storage

Answer 9

an activity where items are inventoried under formal control

Question 10

Process capabilities

Answer 10

types of outputs and levels of performance that a process can generate

Question 11

Process Capacity

Answer 11

limit on the amount of output that a process can produce given an amount of inputs and resources made available (machine hours, labor hours, tools etc…)

Question 12

Maximum Capacity

Answer 12

highest output rate that an activity or a process can achieve under ideal conditions in the short term

Question 13

Effective Capacity

Answer 13

taking into account the potential for disruptions in process flows, worker fatigue, machine breakdowns, preventative maintenance…etc

Question 14

Utilization

Answer 14

defined as the percentage of process capacity that is actually used

Question 15

Three Capacity Strategies

Answer 15

Lead, respond to average demand, lag

Question 16

Bottleneck

Answer 16

constraining activity in the process that limits the overall output

Question 17

Flow time equation

Answer 17

Inventory/Throughput Rate

Question 18

Flow time

Answer 18

the time a unit spends being processed plus the time waiting to be processed

Question 19

Cycle time

Answer 19

the time a unit spends being processed at a given operation in the overall process

Question 20

Throughput Rate

Answer 20

how many units per specific time period can be produced

Question 21

Wait time

Answer 21

effected by both the level of variance and the level of utilization

Question 22

Types of Processes

Answer 22

Strategic planning
Innovation
Customer Service
Resource Management
Human Resource management
Supply management
Performance management

Question 23

Effective Process

Answer 23

designed and managed to satisfy some customer requirements

Question 24

Yield

Answer 24

usable output from input

Question 25

Three types of Variances

Answer 25

Outputs, processes and inputs

Question 26

Metrics

Answer 26

should address aspects of performance that are important to both customers and the organization