Operations Management Terms Chapter 1, 3, Supplement A

Question 1

Additive Manufacturing

Answer 1

technologies that build 3D objects by adding layers of material such as plastic, metal, ore concrete (3D printers)

Question 2

Artificial Intelligence

Answer 2

Constellation of technologies, from machine learning to natural language processing, that allows machines to sense, comprehend, act, and learn

Question 3

Competitive priorities

Answer 3

critical dimensions that a process or supply chain must possess to satisfy its internal or external customers, both now and in the future

Question 4

Competitive Capabilities

Answer 4

Cost, quality, time, and flexibility dimensions that a process or supply chain actually posses and is able to deliver

Question 5

Core competencies

Answer 5

unique resources and strengths than an organization’s management considers when formulating strategy

Question 6

Core process

Answer 6

set of activities that delivers value to external customers

Question 7

Customer Relationship Process

Answer 7

process that identifies, attracts, and builds relationships with external customers and facilitates the placement of orders by customers (CRM)

Question 8

External customers and external suppliers

Answer 8

customers: either end user or an intermediary manufactures, financial institutions, buying the firm’s finished service or products

suppliers: businesses or individuals who provide the resources, services, products, and materials for the firm’s short-term and long-term needs

Question 9

Internal customers and suppliers

Answer 9

customers: customer who is either an end user or an intermediary manufactures, financial institutions, buying the firm’s finished services or products

suppliers: employees or processes that supply important information or materials to a firm’s processes

Question 10

Lead time

Answer 10

elapsed time between the receipt of a customer order and filling it

Question 11

Manufacturing execution systems (MES)

Answer 11

computerized systems used in manufacturing to track and document the transformation of raw material to finished goods and optimize their production output

Question 12

Nested process

Answer 12

concept of a process within a process

Question 13

new service/product development process

Answer 13

process that designs and develops new services or products from inputs received from external customer specifications or from the market in general through the customer relationship process

Question 14

Operation

Answer 14

group of resources performing all or part of one or more processes

Question 15

Operations management

Answer 15

systematic design, direction, and control of processes that transform inputs into services and products for internal, as well as external, customers

Question 16

Operations strategy

Answer 16

means by which operations implements the firm’s corporate strategy and helps to build a customer-driven firm

Question 17

Order fulfillment process

Answer 17

process that includes the activities required to produce and deliver the service or product to the external customer

Question 18

Order qualifier

Answer 18

minimal level required from a set of criteria for a firm to do business in a particular market segment

Question 19

Order winner

Answer 19

Criterion customers use to differentiate the services or products of one firm from those of another

Question 20

Process

Answer 20

activity or group of activities that takes one or more inputs, transforms them, and provides one or more outputs for its customers

Question 21

Supplier relationship process

Answer 21

process that selects the suppliers of services, materials, and information and facilitates the timely and efficient flow of these items into the firm

Question 22

Supply chain

Answer 22

interrelated series of processes within and across firms that produces a service or product to the satisfaction of customers

Question 23

Supply chain management

Answer 23

synchronization of a firm’s processes with those of its suppliers and customers to match the flow of materials, services, and information with customer demand

Question 24

Supply chain processes

Answer 24

business processes that have external customers or suppliers

Question 25

Support Process

Answer 25

process that provides vital resources and inputs to the core processes and therefore is essential to the management of the business

Question 26

Time-based competition

Answer 26

strategy that focuses on the competitive priorities of delivery speed and development speed

Question 27

What should be the two main business concerns?

Answer 27

Quality and performance

Question 28

Defect

Answer 28

Any instance when a process fails to satisfy its customer

Question 29

Prevention Costs

Answer 29

Costs associated with preventing defects before they happen

ex. 1. product or service requirements 2. quality planning 3. quality assurance 4. training

Question 30

Appraisal costs

Answer 30

costs incurred when the firm assesses the performance level its processes

ex. 1. verification 2. quality audits 3. supplier rating

Question 31

Internal failure costs

Answer 31

costs resulting from defects that are discovered during the production of a service or product

Three categories: 1. rework or rectification (incurred if some aspect of a service must be performed again 2. scrap (incurred if a defective item is unfit for further processing 3. waste (performance of unnecessary work or holding stock as a result of errors or poor communication

Question 32

External failure costs

Answer 32

costs that arise when a defect is discovered after the customer receives the service or product

1. repairs and servicing (both returned products and those actually being used by customers) 2. complaints (which involve all costs and work associated with handling and servicing customers complaints) 3. returns (transportation of rejected or recalled products) 4. warranty service and litigation costs (where a warranty is a written guarantee that the producer will replace or repair defective parts or perform the service to the customer’s satisfaction)

Question 33

warranty

Answer 33

written guarantee that the producer will replace or repair defective parts or perform the service to the customer’s satisfaction

Question 34

Ethical failure costs

Answer 34

societal and monetary costs associated with deceptively passing defective services or products to internal or external customers such that it jeopardizes the well-being of of stockholders, customers, employees, partners, and creditors

Question 35

Elements of deceptive business practices

Answer 35

1. conduct of the provider is intentional and motivated by a desire to exploit the customer 2. provider conceals the truth based upon what is actually known to the provider 3. transaction is intended to generate a disproportionate economic benefit to the provider at the expense of the customer

Question 36

Total quality management

Answer 36

three principles for achieving high levels of process performance and quality

1. customer satisfaction 2. employee involvement 3. continuous improvement in performance

Question 37

quality

Answer 37

term used by customer to describe their general satisfaction with a service or product

Question 38

Continuous improvement

Answer 38

philosophy of continually seeking ways to improve processes based on a Japanese concept

Question 39

Six sigma

Answer 39

comprehensive and flexible system for achieving, sustaining, and maximizing business success by minimizing defects and variability in processes

Question 40

Acceptance sampling

Answer 40

application of statistical techniques to determine whether a quantity of material should be accepted or rejected based on the inspection or test of a sample

Question 41

Acceptable quality level

Answer 41

quality level desired by the consumer

Question 42

Statistical process control

Answer 42

application of statistical techniques to determine whether a process is delivering what the customer wants

Question 43

Process capability

Answer 43

the ability of the process to meet the design specifications for a service or product

Question 44

Nominal value

Answer 44

target for design specifications