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Fundamentals of Production and Operations Mangement > Chapter Definitions > Flashcards

Chapter Definitions Flashcards

1
Q

Operations management

A

The management of activities and resources that create goods and or provide services

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2
Q

Efficiency

A

Operating at the minimum cost and time

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3
Q

Effectiveness

A

Achieving quality and timeliness

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4
Q

Lead time

A

The time between ordering a good or service and receiving it

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5
Q

Model

A

An abstraction of reality, a simplified representation of something

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6
Q

System

A

A set of interrelated parts that must work together

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7
Q

Pareto phenomenon

A

A few factors account for a high percentage of results achieved

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8
Q

Craft production

A

Highly-skilled workers using simple, flexible tools to produce small quantities of customized goods

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9
Q

Division of labour

A

Breaking up a production process into small tasks so that each worker performs a small portion of the overall job

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10
Q

Interchangeable parts

A

Parts of a product made to such precision that they do not have to be custom-fitted

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11
Q

Mass production

A

System in which lower skilled workers use specialized machinery to produce high volumes of standardized goods

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12
Q

Total quality management

A

A system of management based on the principle that every staff member must be committed to maintaining high standards of work in every aspect of a company’s operations.

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13
Q

Lean production

A

System that uses minimal amounts of resources to produce a high volume of high-quality goods with some variety

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14
Q

E-commerce

A

Use of the internet to buy and sell goods and services

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15
Q

Supply chain

A

A sequence of organizations involved in producing and delivering a product

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16
Q

Competitiveness

A

ability and performance of an organization in the market compared to other organizations that offer similar goods or services

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17
Q

Strategy

A

The long-term plans that determine the direction and organization takes to become, or remain, competitive

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18
Q

Strategic planning

A

The managerial process that determines a strategy for the organization

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19
Q

Key purchasing criteria

A

The major elements influencing a purchase, price, quality, variety, and timeliness

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20
Q

Order qualifiers

A

Purchasing criteria that customers perceive as minimum standards of acceptability to be considered for purchase

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21
Q

Order winners

A

Purchasing criteria that causes selling organization to be perceived as better than the competition

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22
Q

Competitive priorities

A

Importance given to operations characteristics, cost, quality, flexibility and delivery

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23
Q

Mission

A

Where the organization is going now, its products and markets

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24
Q

Vision

A

Where the organization desires to be in the future

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25
Q

Values

A

Shared beliefs of the organization’s stakeholders

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26
Q

Tactics

A

Medium-term plans used as components of a strategy

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27
Q

Action plan

A

medium or short-term project to accomplish a specific objective, assigned to an individual, with a deadline and the resources needed

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28
Q

Operations strategy

A

comprises a set of well-coordinated policies, objectives, and action plans, directly affecting the operations function, which is aimed at securing a long-term sustainable advantage over the competition

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29
Q

Quality based strategy

A

Strategy that focuses on quality of an organization’s goods and services

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30
Q

Time based strategy

A

Strategy that focuses on reduction of time needed to accomplish tasks

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31
Q

Productivity

A

A measure of productive use of resources usually expressed as a ratio of output to input

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32
Q

Value added

A

The difference between the costs of inputs and the value or price of outputs

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33
Q

Demand forecast

A

The estimate of expected demand during a specified time period

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34
Q

CPFR

A

Collaborative Planning, Forecasting and Replenishment

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35
Q

Forecast horizon

A

The range of periods we are forecasting for

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36
Q

Elements of a good forecast

A

1) Timely
2) Accurate
3) Reliable
4) Meaningful Units (dollars and units)
5) In Writing
6) Simple to understand and use
7) Cost effective

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37
Q

Judgmental methods

A

use non quantitative analysis of historical data and analysis of subjective inputs from consumers, sales staff, managers, executives, similar products, and experts to help develop a forecast

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38
Q

Time series models

A

Extend the pattern of data into the future

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39
Q

Associative models

A

Use explanatory variables to predict future demand for the variable of interest

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40
Q

Delphi method

A

Experts complete a series of questionnaires, each developed from the previous one, to achieve a consensus forecast

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41
Q

Time series

A

A Time ordered sequence of observations taken at regular intervals of time

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42
Q

Level (average)

A

Horizontal pattern of Time series

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43
Q

Trend

A

A persistent upward or downward movement in data

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44
Q

Seasonality

A

Regular wave-like variations related to the calendar, weather, or recurring events

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45
Q

Cycles

A

Wave-like variations lasting more than one year

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46
Q

Irregular variations

A

Caused by unusual one-time explainable circumstances not reflective of typical behavior

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47
Q

Random variations

A

Residual variations after all other behaviours are accounted for, also called noise

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48
Q

Naive forecast

A

For a stable series, the next forecast equals the previous periods actual value

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49
Q

Moving average

A

Technique that averages a number of recent actual values as forecast for current period. It is updated as new values become available

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50
Q

Weighted moving average

A

a variation of moving average were more recent values in the time series are given larger weight in calculating forecast

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51
Q

Exponential smoothing

A

weighted averaging method based on previous forecast plus a percentage of the difference between that forecast and the previous actual value

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52
Q

Adaptive (or variable responsive) exponential smoothing

A

a version of exponential smoothing where the smoothing constant is automatically modified in order to prevent large forecast errors from occurring

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53
Q

Linear trend equation

A

Yt=a+bt, used to develop forecast when linear trend is present

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54
Q

Trend adjusted exponential smoothing

A

Variation of exponential smoothing used when a Time series exhibits trend

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55
Q

Seasonal variations

A

Regularly repeating wave-like movements and series values that can be tied to recurring events, weather, or calendar

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56
Q

Seasonal relatives

A

Proportion of average or trend for a season in the multiplicative model

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57
Q

Centered moving average CMA

A

Moving average position at the centre of the data that were used to compute it

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58
Q

Predictor variables

A

Variables that can be used to predict values of the variable of interest

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59
Q

Regression

A

Technique for fitting a line to a set of points

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60
Q

Least-squares line

A

Minimizes the sum of the squared deviations around the line

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61
Q

Forecast error

A

Difference between the actual value in the forecast value for a given period

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62
Q

Mean absolute deviation MAD

A

The average of absolute value of forecast errors

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63
Q

Mean squared error MSE

A

The average of square of forecast errors

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64
Q

Mean absolute percentage error MAPE

A

The average absolute percent forecast error

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65
Q

Bias

A

The sum of forecast errors

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66
Q

Control chart for forecast errors

A

A Time series plot of forecast errors that has limits for individual forecast errors

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67
Q

Tracking signal

A

A measure used to control the forecasting process, sum of forecast errors divided by mean absolute forecaster

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68
Q

Product design

A

Determining the form and function of the product

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69
Q

Reverse engineering

A

dismantling and inspecting a competitor’s product to discover what is composed of and how the components work, searching for own product improvements

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70
Q

Research and development r&d

A

Organized efforts that are directed toward increasing scientific knowledge and product or process innovation

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71
Q

Life cycle

A

Incubation, growth, maturity, saturation, and decline

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72
Q

Standardization

A

Extent to which there is absence of variety in a product or part

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73
Q

Mass customization

A

Producing basically standardized goods or services but incorporating some degree of customisation

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74
Q

Delayed differentiation

A

Producing but not quite completing a product until customer preferences are known

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75
Q

Modular design

A

Parts are grouped into modules that are easily replaced or interchanged. The product is composed of a number of modules or components instead of a collection of individual parts

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76
Q

Reliability

A

The ability of a product, part, or system to perform its intended function under normal conditions

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77
Q

Failure

A

Situation in which a product, part, or system does not perform as intended

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78
Q

Robust design

A

Design that can function over a broad range of conditions

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79
Q

Product liability

A

A manufacturer is liable for any injuries or damages caused by a faulty product

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80
Q

Remanufacturing

A

Refurbishing used products by replacing worn out or defective components

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81
Q

Design for disassembly

A

Design so that used products can be easily taken apart

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82
Q

Recycling

A

Recovering materials for future use

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83
Q

Concurrent engineering

A

bridging engineering design, manufacturing engineers, and staff from marketing, manufacturing, and purchasing together early in the design phase

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84
Q

Computer aided design CAD

A

Product design using computer graphics

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85
Q

Design for manufacturing DFM

A

Takes into account the organization’s manufacturing capabilities when designing a product

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86
Q

Design for assembly DFA

A

Focuses on reducing the number of parts in a product and an assembly methods and sequence

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87
Q

Quality function deployment QFD

A

A structured approach that integrates the “voice of the customer” into product design

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88
Q

Capacity

A

The upper limit on the workload that it operating unit can handle. Capacity is usually measured as maximum production rate or throughput. Alternatively, a major input is used, example size

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89
Q

Strategic capacity planning

A

systematic determination of facility and major machine equipment requirements to meet long-term demand for goods and services

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90
Q

Design capacity

A

The maximum output rate under ideal conditions

91
Q

Effective capacity

A

a maximum of a trait that can be sustained given to work breaks, product mix, scheduling difficulties unexpected delays, machine and equipment maintenance, excetera. Also known as standard output rate

92
Q

Efficiency

A

The ratio of actual output rate to effective capacity

93
Q

Utilization

A

The ratio of uptime to available time

94
Q

Factors influencing effective capacity

A 
Facilities and machines
Product mix
Workers
Planning an operational factors
External factors
95
Q

Capacity cushion

A

The excess of capacity over the average demand

96
Q

Optimal operating level

A

The level of production that has the lowest average unit cost

97
Q

Economies of scale

A

the economic conditions that favour larger plants and machine equipment by causing minimum average unit cost to decrease as size increases

98
Q

Break Even point BEP

A

The quantity of output at which total cost and total revenue are equal

99
Q

Payoff table

A

Table showing the payoff for each alternative under each state of nature of a one random variable problem

100
Q

Decision tree

A

Graphical representation of the decisions, random variables and their probabilities and payoffs

101
Q

Risk profile

A

The probability distribution of payoff of the best alternative

102
Q

Expected value of perfect information EVPI

A

The difference between the expected payoff with perfect information on the expected payoff without the information

103
Q

Expected value of sample information EVSI

A

the difference between the expected payoff with samples imperfect information and the expected payoff without sample information i.e. under risk

104
Q

Sensitivity to probability

A

Terminating the range of probability for which an alternative has the best expected payoff

105
Q

Process design

A

Determining the form and function of how goods and services are produced ie the sequence of operations

106
Q

Make or buy

A

Decide whether to make a part or product in house or to buy it or a segment of production process from another company

107
Q

Job shop

A

A process type used when a low quantity of high variety customized goods or services is needed

108
Q

Batch process

A

What type of process used when a moderate quantity and variety of goods or services is desired

109
Q

Repetitive process

A

A type of process used when higher quantities of more standardized goods or services are needed

110
Q

Production line

A

A sequence of machines, work stations that perform operations on a part, product

111
Q

Assembly line

A

A production line where parts are added to a product sequentially

112
Q

Continuous process

A

Used when a high volume of highly standardized output is required

113
Q

Technology

A

applications of scientific discoveries to the development and improvement of goods and services and or the processes that produce or provide them

114
Q

Automation

A

Using machinery, equipment with sensing and control devices that enable it to operate automatically

115
Q

American controlled machines NC

A

Machines that perform operations by following mathematical processing instructions

116
Q

Robot

A

Machine consisting of a mechanical arm, a power supply, and a controller

117
Q

Flexible manufacturing system FMS

A

a group of machining centres controlled by computer, with automatic material handling, robots or other automated equipment

118
Q

Computer integrated manufacturing CIM

A

A system for linking a broad range of manufacturing and other activities through an integrating computer system

119
Q

Process flow diagram

A

Shows the operations and movement of material between the operations

120
Q

Product layout

A

Arrangement of production resources linearly according to the progressive steps by which a product is made

121
Q

Process layout

A

Arrangement of production resources according to similarity of function

122
Q

Cellular layout

A

Layout in which different machines are arranged in a cell that can process items that have similar processing requirements

123
Q

Group technology

A

Grouping items with similar design or manufacturing characteristics into part families

124
Q

Line balancing

A

Assigning tasks to workstations in such a way that the workstations have approximately equal time requirements

125
Q

Precedence Network

A

Diagram that shows the tasks and their precedence requirements

126
Q

Cycle time

A

The maximum time allowed at each workstation to complete its set of tasks on a unit

127
Q

Percentage idle time

A

100 X sum of idle X per unit / actual number of workstation X cycle time

128
Q

Decision variables

A

Choices in terms of amounts of either input or output

129
Q

Objective function

A

A mathematical expression involving the decision variables that represent the objective example profit, cost

130
Q

Constraints

A

Represent the requirements or limitations that restrict the available choices

131
Q

Feasible solution space

A

The set of all feasible combinations of values of decision variables as defined by the constraints

132
Q

Parameters

A

Coefficients of decision variables in the objective function and constraints

133
Q

Graphical solution

A

solution method that involves drawing the feasible solution space and contras of the objective function on paper, finding the optimal solution by observation. This method applies to only two variable linear programs

134
Q

Redundant constraint

A

A constraint that does not form a unique boundary of the feasible solution space

135
Q

Multiple optimal solutions

A

when you’re active function line is parallel to the constraint line that forms a boundary of the feasible solution space, all points on that boundary are optimal

136
Q

Binding constraint

A

A constraint that forms the optimal corner point of the feasible solution space

137
Q

Surplus

A

Will be optimal very values of decision variables are substituted into the left side of a ≥ constrained, surplus is the amount the left side exceeds the right side

138
Q

Slack

A

The optimal values of a decision variables are substituted into the left side of a ≤ constrained, slack is the amount the left side is less than the right side.

139
Q

Sensitivity analysis

A

Assessing the impact of potential changes of the parameters, numerical values, of an LP model on its optimal solution

140
Q

Range of optimality

A

range of values for an objective function coefficient over which the optimal solution values of the decision variables remain the same

141
Q

Shadow price

A

amount by which the value of the objective function would change as a result of a one-unit change in the rhs value of a constraint

142
Q

Range of feasibility

A

Range of values for its RHS of a constraint over which its shadow price remains the Same

143
Q

3 Types of Automation

A

Fixed Automation - Most rigid (mass production)
Programmable Automation - CNC (Mechanical, Power Supply, Controller)
Flexible Automation - CAD, FMS, CIM

144
Q

4 Types of Process Designs

A

1) Job Shop - Low volume high variety, skilled workers (small bakery)
2) Batch Processing - Moderate volume, moderate variety, moderate skill, equipment less flexible (books, paint, etc)
3) Repetitive (Assembly Line) - High volume, standardized, low skill (TV’s, Computers, Automotive)
4) Continuous - High volume, high standard equipment, doesn’t turn off, high fixed cost (paper mill, nuclear power plants, oil rig)

145
Q

Work/job design

A

Specifying the content and method of the work or job

146
Q

Specialization

A

Focussing the work or job to a narrow scope

147
Q

Job enlargement

A

Giving a worker a larger portion of the total activity

148
Q

Job rotation

A

Workers periodically exchange jobs

149
Q

Job enrichment

A

Increasing employee responsibilities for planning, execution, and control of job

150
Q

Self-directed team

A

A group of employees who perform the same function and are empowered to make certain decisions and changes in their work

151
Q

Methods analysis

A

Breaks down the job into a sequence of tasks elements motions and improves it

152
Q

Flow process chart

A

Chart used to examine the sequence of steps, tasks, element by focusing on movements of the worker or flow of material

153
Q

Worker machine process chart

A

Used to determine portions of a work cycle during which a worker and his or her machine are busy or idle

154
Q

Motion study

A

Systematic study of the human emotions used to perform a task element

155
Q

Motion economy principles

A

Guidelines for designing motion efficient work procedures

156
Q

Slow motion study

A

use of motion pictures and slow motion to study motions that otherwise would be too rapid to analyze

157
Q

Simo chart

A

A chart that shows the motions performed by each hand, side-by-side, over time

158
Q

Ergonomics

A

Fitting the job to the workers capability and size

159
Q

Time study

A

Determining how long it should take to do a task. Also called work measurement

160
Q

Standard Time

A

amount of time it should take a qualified worker to complete a specified task, working at a sustainable rate, and using given methods, tools and equipment, raw materials, and workplace arrangement.

161
Q

Stopwatch Time study

A

Development of a standard time based on timing one worker over a number of cycles

162
Q

Predetermined time standards

A

Publish data based on extensive research on element motion times

163
Q

Work sampling

A

Technique for estimating the proportion of time that a worker spends on each activity or task or is idle

164
Q

Time based pay

A

Compensation based on length of time an employee works

165
Q

Output based pay

A

Compensation based on amount of output an employee produces

166
Q

Skills/knowledge based pay

A

Rewarding workers who undergo training to increase their skills and knowledge

167
Q

Locational breakeven analysis

A

Identifies the least fixed and variable cost location choice based on quantity to be produced

168
Q

Factor rating

A

involves scoring the factors both quantitative and qualitative and determining the weighted score for each location, and choosing the location with the highest weighted score

169
Q

Centre of gravity method

A

Method for locating a distribution centre or Warehouse that minimizes total distribution cost

170
Q

Geographic information system GIS

A

A computer-based tool for collecting, storing, retrieving, and displaying location dependant demographic data on maps

171
Q

Quality

A

The ability of a good or service to consistently meet or exceed customer expectations

172
Q

Quality control

A

Monitoring, testing, and correcting quality problems after they occur

173
Q

Quality assurance

A

Providing confidence that a product’s quality will be good by preventing defects before they occur

174
Q

Continuous improvement

A

NeverEnding improvements to key processes as part of total quality management

175
Q

Dimensions of quality of goods

A

Performance, aesthetics, special features, conformance, reliability, durability, perceived quality, and serviceability

176
Q

Conformance to design specifications during production

A

The degree to which produced goods or services conform to the specifications of the designers

177
Q

Failure costs

A

Cost caused by defective parts or products

178
Q

Internal failures

A

Failures discovered during production

179
Q

External failures

A

Failures discovered after delivery to the consumer

180
Q

Appraisal (detection) costs

A

Cost of inspection and testing

181
Q

Prevention cost

A

Cost of preventing defects from occurring

182
Q

Quality at the source

A

Every employee is responsible for his own work

183
Q

Zero defects

A

The philosophy that any level of defects is too high

184
Q

ISO 14000

A

Set of international standards for assessing a company’s environmental performance

185
Q

ISO 9001

A

International standard for quality management system, critical to international business

186
Q

HACCP

A

Quality management system designed for food processors

187
Q

Total quality management tqm

A

an approach to quality management on involves everyone in an organization and quality management and continued effort to improve quality and customer satisfaction

188
Q

Poka-yoke (fail-safeing)

A

incorporating process design elements that prevent mistakes

189
Q

Plan do study act pdsa cycle

A

A problem solving and quality improvement methodology used in the continuous improvement

190
Q

Six Sigma

A

a more sophisticated statistical approach to problem-solving and quality improvement then used in the pdsa cycle of the continuous improvement

191
Q

Process flow diagram

A

A diagram of the steps in a process

192
Q

Check sheet

A

sheet of paper that provides a format for recording and organizing data in a way that facilitates collection and analysis

193
Q

Histogram

A

A chart of the frequency distribution of observed values

194
Q

Pareto analysis

A

Techniques for focussing attention on the most important problem, or opportunity for improvement

195
Q

Scatter diagram

A

A plot of pairs of observations of two variables that can show the correlation between the two variables

196
Q

Control chart

A

A line plot of time ordered values of a sample statistic with control limits

197
Q

Cause and effect diagram

A

A diagram used to organize categorize and possible causes of a problem the effect, also called a fishbone diagram

198
Q

Brainstorming

A

technique for generating a free flow of ideas on finding causes and solutions and implementing the solutions and a group of people

199
Q

Quality circle

A

Group of workers who meet to discuss ways of improving the products or processes

200
Q

Benchmarking

A

Process of measuring and organizations performance against the best in the same or another industry

201
Q

Run chart

A

What time plot that can be used to track the values of a variable over time

202
Q

5w2h approach

A

I’m outside of asking questions about a problem that begins with

What, why, where, when, who, how, and how much

203
Q

Statistical quality control

A

Use of statistical techniques and sampling and monitoring and testing of quality of goods and services

204
Q

Inspection

A

Appraisal of a good or service against standard

205
Q

Statistical process control SPC

A

Statistical evaluation of the product in the production process

206
Q

Random variation

A

Natural variation in the output of a process, created by countless minor factors

207
Q

Assignable variation

A

Non random variability in process output, a variation whose cause can be identified

208
Q

Central limit theorem

A

The distribution of sample averages tends to be normal regardless of shape of the process distribution

209
Q

Control chart

A

A time order plot of a sample statistic with limits

210
Q

Control limits

A

The dividing lines between random and a sign of all deviations from the mean of the distribution

211
Q

Type 1 error

A

Concluding that a process has shifted (an assignable variation is present) when it has not (only random variation is present)

212
Q

Type 2 error

A

Concluding that a process has not shifted (only random variation is present) when it has (an assignable variation is present)

213
Q

Sample mean (x) control chart

A

The control chart for sample mean, used to monitor the process mean

214
Q

Simple range (R) control chart

A

Control chart for sample range, used to monitor process dispersion or spread

215
Q

Individual unit (X) control chart

A

Control chart for individual unit, used to monitor single observations (n=1)

216
Q

Moving range (MR) control chart

A

Control chart for moving range, the difference between consecutive observations, used to monitor their dispersion or spread. When n=1

217
Q

P-chart

A

Control chart for sample proportion of defectives, used to monitor the proportion of defective items generated by a process

218
Q

C-chart

A

Control chart for sample number of defects per unit product, used to monitor the number of defects per unit product

219
Q

Design specification

A

A range of acceptable values established by engineering design or customer requirements

220
Q

Process variability

A

Actual variability in a process for a product

221
Q

Process capability

A

The ability of a process to meet the design specification

222
Q

Six Sigma quality

A

the more advanced version of problem solving, continuous improvement. It also refers to the goal of achieving process variability so small that the half width of design specification equals 6 standard deviations of the process

223
Q

Design of experiments

A

performing experiments by changing levels of factors to measure their influence auto put and identifying best levels for each factor

Fundamentals of Production and Operations Mangement (1 decks)

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