KEY TERMS EXAM 1 Flashcards
bill of materials
A description of all raw materials and intermediate assemblies required to create a finished product
biomimicry
The imitation of natural processes and systems.
business analytics
Continuous investigation of business performance using large volumes of data
business unit
A segment of a larger organization, usually managed as a profit-and-loss center.
business-to-business (B2B)
Commercial transactions between organizations.
business-to-consumer (B2C)
Commercial transactions between an organization and individual
concurrent engineering
Integration of a product’s design and process development phases, to enhance manufacturability.
core competency
Specific ability that distinguishes a business from its competitors.
correlation coefficient
A measure of the strength of any linear relationship between two sets of observations.
cradle-to-cradle
Planning sustainability as a perpetual cycle of transformation, in which the
cradle-to-gate
Planning sustainability from the procurement of raw materials through the production of the product.
cradle-to-grave
Planning sustainability from the procurement of raw materials through the final disposal of the product.
cyclic variation
Seasonality with a cycle time longer than 1 year; generally associated with
Delphi method
A qualitative forecasting technique in which experts achieve consensus through a blind process via a facilitator.
diseconomies of scale
Increasing average unit cost by increasing volume.
e-commerce
Buying and selling product through electronic transactions.
economies of scale
Decreasing average unit cost by increasing volume.
enterprise resource planning (ERP)
A strategic information system that integrates all functional areas of an organization.
exogenous variation
A nonrepeating deviation in a time series created by a distinct, identifiable external influence.
extrapolation
Projecting existing data into the future.
fishbone diagram
Visual model to clarify cause-and-effect relationships.
forecast bias
A tendency to create errors that are predominantly positive or negative.
green
Assures sustainability.
histogram
A bar chart illustrating the relative frequency of occurrences in different categories.
ISO 9000
A certification of compliance with an internationally recognized set of quality management standards.
Kendall notation
A labeling system for classifying waiting line models according to their initial assumptions.
lean
Operating without waste.
mission
An organization’s statement about what it’s doing to meet its vision.
naïve forecast
Assuming a future value equals the most recent actual value available.
natural variation
he randomness inherent in a process; also known as random variation.
order qualifiers
Minimum competitive characteristics necessary to be considered for a customer’s order.
order winners
Those characteristics that give a product competitive advantage.
Pareto analysis
The use of statistics to identify the factors most influential in a particular outcome of interest.
planning horizon
The farthest point in the future considered in decision making.
Poisson distribution
A discrete probability distribution describing the likelihood of a particular number of independent events within a particular interval.
processes
Activities that transform inputs into outputs.
product life cycle
Generalized pattern of phases in product demand over time, from incubation to decline.
productivity
a measurement of value creation, calculated as a ratio of the values of output to input
quality circle
A group of employees that meets regularly to discuss and develop
quality of conformance
he degree to which the output of an operation meets the producer’s expectations.
quality of design
The degree to which the output of an operation meets the customer’s expectations.
queue discipline
A rule or rules determining the order in which waiting individuals will be served.
queuing theory
The mathematical modeling of waiting lines.
rapid prototyping
Creating physical examples of a design as quickly as possible, to allow further assessment and improvement.
responsiveness
The degree to which a technique modifies forecasts to reflect recent
reverse engineering
Disassembling and evaluating a competitor’s product.
risk
The possibility of loss or the source of such a possibility.
scientific management
A methodology stressing the use of data collection and analysis to redesign processes and improve efficiency.
seasonal relatives
A set of numerical values that describe a seasonal pattern.
seasonality
A repeating pattern within a time series.
Six Sigma
A quality management program emphasizing the application of analytical tools and widespread involvement of employees across the organization.
serpentine line
A single queue of customers waiting in a line that must bend one or more times to fit within the service facility.
strategy
A methodology and resulting plan that identifies the long-term goals of an organization.
subcontract
To engage a third party in the provision of value to a customer.
supply chain
A system consisting of all organizations that play some role in supplying a particular product to a customer.
tactics
Means to pursue strategic goals with available resources.
total quality management (TQM)
Simultaneous and continuous pursuit of improvement in both the quality of design and conformance through the involvement of the entire organization.
trend
A sustained period of growth or decline.
value-added
The difference between the total value of the outputs and the total value of the inputs associated with an operation.
vision
An organization’s defining statement about the future.
