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MGT 3501-Ops > Exam 3 > Flashcards

Exam 3 Flashcards

1
Q

should suppliers be treated as vendors or partners

A

partners share the risk and are more invested in the success of your business

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2
Q

how do we measure and monitor quality

A

statistical process control

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3
Q

how can me monitor quality

A

by observing variation in output

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4
Q

what is statistical process control

A

it is used to keep processes stable, consistent and predictable; monitors quality while the product is being produced, every output measure has a target value and a level of acceptable variation

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5
Q

the smaller the standard deviation the

A

more the process is under control (less variation there is in the output)

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6
Q

control charts

A

show how process output varies over time

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7
Q

x bar =

A

average or mean

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8
Q

sigma =

A

standard deviation

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9
Q

range of variation that a process is able to maintain

A

process control limits

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10
Q

range of variation that is considered acceptable by the designer or customer

A

specification limits

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11
Q

if PCL > SL

A

process is incapable because the process can produce outside the spec limits

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12
Q

if SL > PCL

A

process is capable because it will only produce within the spec limits

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13
Q

a process is ____ if its standard deviation is small

A

consistent

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14
Q

a process is _____ if its average performance is close to the target

A

accurate

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15
Q

shows how well the parts being produced fit into the range specified by the design specifications

A

process capability index (Cpk)

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16
Q

if the Cpk is larger than 1 it indicates that the process is

A

capable

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17
Q

_____ is related to standard deviation and you fix this first

A

consistency

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18
Q

getting more accurate but less consistent means a _____ capable process

A

less

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19
Q

if our process is not capable what can we do about it

A

accept more defects, reduce the variation (smaller standard deviation), re evaluate the spec limits

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20
Q

used when a product or service is either good or bad

A

p charts or process control chart

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21
Q

when doing p charts, the bigger the confidence level the ______ the spec limits

A

bigger

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22
Q

narrower spec limits

A

the process is more under control but you are less confident about not having defects

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23
Q

performed on goods that already exists to determine what percentage of the products conform to specifications; executed through a sampling plan

A

acceptance sampling

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24
Q

advantages of acceptance sampling

A

economies, fewer inspections/inspectors, applicability to destructive testing

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25
Q

disadvantages of acceptance sampling

A

risk of accepting “bad” lots and rejecting “good” lots, paperwork of lot sizes; less information than 100% inspection

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26
Q

process of making prediction on future based on past and present data (done by analyzing trends)

A

forecasting

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27
Q

_____ and ____ are absolutely linked

A

inventory and forecasting

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28
Q

is it better to under or over estimate forecasts

A

almost always better to over estimate than under; would rather risk having excess than going through a stock out of inventory

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29
Q

what is the foundation of any successful ops team

A

forecasting

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30
Q

if a forecast is not accurate the _____ are put under great stress

A

supply chain and inventory

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31
Q

forecasts are more accurate for _____ periods of time

A

shorter

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32
Q

every forecast should

A

be a range and include a confidence level

33
Q

relies on subjective opinions from one or more experts

A

qualitative

34
Q

relies on data and analytical techniques

A

quantitative

35
Q

examples of qualitative research

A

market research, expert analysis, historical analogy

36
Q

examples of quantitative forecasting

A

time series, causal relationships, simulation

37
Q

models that predict future demand based on past data

A

time series

38
Q

models that use statistical techniques to establish relationships between various items and demand

A

causal relationships

39
Q

models that incorporate some randomness and non-linear effects

A

simulation

40
Q

assumes the most accurate forecast of future demand is a simple (linear) combination of past demand

A

moving average (time series)

41
Q

when do you use moving average

A

typically when there is no seasonality or trend

42
Q

two types of moving average

A

simple moving average and weighted moving average

43
Q

taking average of previous demand to forecast future demand

A

simple moving average

44
Q

taking average of previous demand to forecast future demand but gives more importance to some of the data

A

weighted moving average

45
Q

identifies the relationship between two or more variables

A

least squares method: linear regression

46
Q

___ is the indicator of best fit for linear regression

A

r2

47
Q

how do you validate your forecast

A

test it against historical data to validate accuracy; track forecast vs actual; make corrections as necessary

48
Q

how do you choose the right model

A

it can be a hybrid; have a lot of flexibility in creating forecasts; don’t just rely on the data but use your intelligence to make adjustments; always keep improving!

49
Q

incorporates real time data to update forecasts; no longer relying on solely historical data for analysis

A

demand forecasts (ex. point of sale data)

50
Q

_____ is different from demand forecasting in that the company is influencing what the future demand will be

A

demand shaping

51
Q

2 main types of forecasting errors or variation

A

quantity demanded and product specifications

52
Q

how do you handle errors in quantity forecasted

A

inventory and robust supply chain that can handle variation

53
Q

how do you handle errors in product specifications

A

flexible manufacture

54
Q

3 components of demand

A

randomness, trends, and seasonality

55
Q

weighted moving average model with sophistication; prediction of the future depends mostly on the most recent observation and the error from the latest forecast

A

exponential smoothing

56
Q

exponential smoothing with trend

A

double exponential smoothing

57
Q

exponential smoothing with trend and seasonality

A

triple exponential smoothing

58
Q

the raw material, components, work in process, or finished goods that are held at a location in the supply chain

A

inventory

59
Q

the set of policies and controls that monitor levels of inventory

A

inventory management system

60
Q

why is inventory mgt necessary

A

maintain independence of operations; meet variation in demand; allow flexibility in production scheduling; provide a safeguard for variation in raw material delivery; take advantage of economic purchase order size

61
Q

what is usually the largest corporate asset

A

inventory

62
Q

effective inventory mgt occurs from an accurate _____ and reliable ____

A

forecast

supply chain

63
Q

costs of inventory

A

holding (carrying) cots, ordering costs, opportunity costs, cash flow

64
Q

costs for rend, handling, insurance, utilities, etc.; spoilage and obsolescence

A

holding or carrying costs

65
Q

inability to purchase additional inventory

A

cash flow cost of inventory

66
Q

costs of placing an order

A

ordering costs

67
Q

cost of stock out; foregone investment earnings

A

opportunity costs

68
Q

managing inventory takes ____ and ____

A

time and money

69
Q

80/20 rule

A

Pareto; 80% of the inventory is concentrated in 20% of the skus

70
Q

ABC method

A

allows us to focus on the most important inventory items; A (high dollar volume, B (moderate dollar volume) C (low dollar volume)

71
Q

other inventory models

A

single period, multi period fixed order quantity, multi period fixed time period

72
Q

used when we are making a one time purchase of an item; seeks to balance the costs of inventory overstock and under stock

A

single period

73
Q

used when we want to maintain an item in stock and when we restock a certain number of units must be ordered

A

multi period fixed order quantity

74
Q

item is ordered at certain intervals of time

A

multi period fixed time period

75
Q

event triggers the reordering of inventory

A

multi period fixed quantity (event is usually inventory falling below certain level)

76
Q

time triggers the reordering of inventory

A

multi period fixed time

77
Q

fixed order quantity assumptions

A

demand is constant and uniform; lead time, cost per unit, and ordering cost are constant

78
Q

the amount of inventory carried in addition to expected demand

A

safety stock

79
Q

common safety stock approach

A

to keep a certain number of led times of supply

MGT 3501-Ops (4 decks)

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