Chapter 7: Organizational and Operational Control Flashcards
ABC Classification
Inventory categorization system that optimizes inventory control by drawing management’s attention to the most critical items according to annual consumption volume.
Bureaucratic Control
Comprehensive system of control comprised of rules and standard operating procedures that shape and regulate the behavior or divisions, functions, and employee’s.
Concurrent Control
Control that gives managers immediate feedback on how efficiently inputs are being transformed into outputs so managers can correct problems as they arise.
Economic Order Quantity (EOQ)
The optimum order quantity that an organization should hold in inventory to minimize the costs associated with ordering, shipping, and holding a product.
Enterprise Resource Planning (ERP)
Computer based integration of core business processes that can include purchasing, production, planning, inventory management, shipping, delivery and marketing and sales.
Feedback Control
Control that gives managers information about customers reactions to goods and services so corrective action can be taken if necessary.
Feedforward Control
Control that allows managers to anticipate problems before they arise.
ISO14000
A set of voluntary, international standards for environmental management (both tools and systems).
ISO 9000
A set of international standards for quality management and quality assurance developed to help companies effectively document the elements of an efficient system.
Kaizan
Japanese management philosophy for continuous quality improvement where all employees are responsible for identifying gaps and inefficiencies in existing processes and implement continuous, incremental improvements.
Management by Objectives
Formal system of managing subordinates based on their ability to achieve specific organizational goals, performance standards, or budget figures.
Material Requirement Planning (MRP)
Computer based production planning, scheduling, and inventory control system used to manage inventories so that the right amount is delivered to the right place at the right time.
Pareto Analysis
Type of histogram that focuses attention on the most important problem area’s rather than all the problems, both large and small.
Quality at the Source (QATS)
Philosophy for quality improvement that makes each employee accountable for the quality of their work.
Scatter Diagram
A graph that shows if a relationship exists between a pair of numerical data (variables). Each variable is plotted on an axis, and, if they are correlated, the points will fall along a line or curve.
