OM Exam 2 Flashcards
____-based: better performance, more features. “quality is designed by the customer”
user-based
____-based: specific and measurable attributes of the product
product-based
____-based: conformance to standards, right the first time
manufacturing-based
reducing the potential for defects
prevention costs
evaluating products, parts, and services (inspection)
appraisal costs
producing defective parts or service before delivery
internal failure
defects discovered after delivery
external failure
Stakeholders who are affected by the production and marketing of poor quality products include
stockholders, employees, customers
ISO 9000 seeks standardization in terms of
procedures to manage quality
the four M’s of cause and effect graphs
material, machinery/equipment, manpower, and methods
Pareto charts are used to
organize errors, problems, or defects
sorts the “vital view” from the “trivial many”
Up to three standard deviations above or below the centerline is the amount of variation that statistical process control allows for
natural variation
The type of inspection that classifies items as being either good or defective is
attribute inspection
X charts monitor variance in
central tendency
R-charts monitor variance in
dispersion
the process central line is the
average of sample means
The statistical process chart used to control the number of defects per unit of output is the
c-chart
strategies for improving productivity in services are
separation, self-service, automation, scheduling, training, modules, focus, postponement
low volume, high variety process
process focus
what is sometimes referred to as rated capacity
expected output
is the capacity a firm expects to achieve given current operating constraints
effective capacity
is the maximum theoretical output of a system
design capacity
Supply chain savings exert ____ leverage as the firm has a lower net profit margin.
more
buyers form longer term relationships with _____ suppliers
fewer
What negotiation model has the supplier open their books to purchaser?
cost-based price model
what negotiation model has price based on published, auction, or indexed price?
market-based price model
what negotiation model is used for infrequent purchases but may make establishing long-term relationships difficult?
competitive bidding
waterways are used when shipping cost is _____ important than speed
more
practice of moving a business process to a foreign country but retaining control of it.
offshoring
the practice of procuring from external sources services or products that are normally part of an organization.
outsourcing
A firm that outsources its internal business activities
client firm
states that you should allow another firm to perform work activities for your company if that company can do it more productively than you can.
comparative advantage
Outsourcing is simply an extension of the long-standing practice of
subcontracting
Attribute inspection measures
if the product is good or bad
