WGU C215 Study Guide 2024

WGU C215 Study Guide ABC Classification - ✔a method for determining level of control and frequency of review of inventory items Acceptable Quality Level (AQL) - ✔The small percentage of defects that consumers are willing to accept.

Acceptable Sampling - ✔The process of randomly inspecting a sample of goods and deciding whether to accept the entire lot based on the results Action Bucket - ✔The current time period Action Notices - ✔Output from an MRP system that identifies the need for an action to be taken.

Activity-on-node - ✔network diagramming notation that places activities in the nodes and arrows to signify precedence relationships Advertising Revenue Model - ✔Provides users with information on services and products and provides an opportunity for suppliers to advertise.

Affiliate Revenue Model - ✔companies receive a referral fee for directing business to an affiliate Aggregate Plan - ✔Includes the budgeted levels of finished products, inventory, backlogs, workforce size, and aggregate production rate needed to support the marketing plan.

ALDEP - ✔Computer software packages for design process layouts Allowance Factor - ✔the amount of time the analyst allows for personal time, fatigue, and unavoidable delays Alternative Workplace - ✔brings work to the worker rather than the worker to the workplace Anticipation Inventory - ✔inventory built in anticipation of future demand Application Service Provider (ASP) - ✔sets up and runs ERP systems

Appraisal Costs - ✔Costs incurred in the process of uncovering defects Assemble-to-order Strategy - ✔produces standard components that can be combined to customer specifications Assignable causes of variation - ✔Causes that can be identified and eliminated.

Attributes - ✔A product characteristic that has discrete value and can be counted Automated order entry system - ✔A method using telephone models to send digital orders to suppliers Automation - ✔Using machinery to perform work without human operators Average number of jobs in the system - ✔measures work-in-process inventory Average outgoing quality (AOQ) - ✔The expected proportion of defective items that will be passed to the customer under the sampling plan.

Back orders - ✔unfilled customer orders Back-order - ✔Delaying delivery to the customer until the item becomes available.

Backward integration - ✔Owning or controlling sources of raw materials and components. backward scheduling - ✔scheduling method that determines when the job must be started to be done on the due date Balance Delay - ✔The amount by which the line efficiency falls short of 100 percent.

Batch processes - ✔A type of process used to produce a small quantity of products in groups or batches based on customer orders or specifications.

Behavioral Feasibility - ✔degree to which the job is intrinsically satisfying to the employee Beliefs that help define JIT Philosophy - ✔Broad view operations, simplicity, continuous improvements, visibility, and flexibility Benchmarking - ✔The process of studying the practices of companies considered 'bestin-class' and comparing your company's performance against theirs.

Best operating level - ✔The volume of output that results in the lowest average unit cost. beta probability distribution - ✔typically represents project activities Bill of Material (BOM) - ✔lists all the subassemblies, component parts, and raw materials that go into an end item and shows the usage quantity of each required Block Plan - ✔schematic showing the placement of resources in a facility Bottleneck - ✔Longest Task in the process Bottom-round management - ✔Consensus management by committees or teams break-even analysis - ✔technique used to compute the amount of goods that must be sold just to cover costs Broad view of JIT - ✔a philosophy that encompasses the entire organization Broad view of the organization - ✔Tasks and procedures are important only if they meet the company's overall goals. bullwhip effect - ✔inaccurate or distorted demand information created in the supply chain Business-to-business e-commerce - ✔businesses selling to and buying from other businesses Business-to-consumer e-commerce - ✔on-line businesses sell to individual consumers C-charts - ✔A control chart used to monitor the number of defects per unit Capacity - ✔The maximum output rate that can be achieved by a facility capacity cushion - ✔Additional capacity added to regular capacity requirements to provide greater flexibility.

Capacity Planning - ✔the process of establishing the output rate that can be achieved by a facility Capacity Requirements Planning (CRP) - ✔determines the labor and machine resources needed to fill the open and planned orders generated by the MRP

Capacity Utilization - ✔Percentage measure of how well available capacity is being used.

Capacity-based Options - ✔A group of options that allow the firm to change its current operating capacity.

Capacity-constrained Resources - ✔Bottleneck caused by ineffective usage Capital Costs - ✔the higher of the cost of capital or the opportunity cost for the company Cause-and-effect diagram - ✔A chart that identifies potential causes of particular quality problems.

Cell Manufacturing - ✔placement of dissimilar machines and equipment together to produce a family of products with similar processing requirements Chase Aggregate Plan - ✔a planning approach that varies production to meet demand each period Checklist - ✔A list of common defects and the number of observed occurrences of these defects.

Closed-loop MRP - ✔An MRP system that includes production planning, master production scheduling, and capacity requirements planning Common - ✔Random causes that cannot be identified Components - ✔Raw materials, purchased items, or sub assemblies that are part of a larger assembly computer-aided design (CAD) - ✔A system that uses computer graphics to design new products. computer-integrated manufacturing (CIM) - ✔A term used to describe the integration of product design, process planning, and manufacturing using an integrated computer system.

Concurrent Engineering - ✔An approach that brings together multifunction teams in the early phase of product design in order to simultaneously design the product and the process.

Conformance to specifications - ✔How well a product or service meets the targets and tolerances determined by its designers.

Consumer's Risk - ✔The chance of accepting a lot that contains a greater number of defects than the LTPD limit Continuous Improvement - ✔A philosophy of never-ending improvement Continuous Processes - ✔A type of process that operates continually to produce a high volume of a fully standardized product.

Continuous Review System - ✔updates inventory balances after each inventory transaction Control Chart - ✔A graph that shows whether a sample of data falls within the common or normal range of variation.

Control Charts - ✔Charts used to evaluate whether a process is operating within set expectations CRAFT - ✔Computer software packages for design process layouts Crashing - ✔reducing the completion time of the project Critical Chain Approach - ✔focus on the final due date that is based on the theory of constraints Critical Path - ✔the longest sequential path through the network diagram Critical Path Method (CPM) - ✔Network planning technique, with deterministic times, used to determine a project's planned completion date and identify the project's critical path.

Crossdocking - ✔Eliminates the storage and order-picking functions of a distribution warehouse.

Customer Service - ✔the ability to satisfy customer requirements Customer-defined quality - ✔an integrated effort designed to improve quality performance at every level of the organization Cycle counting - ✔prespecified items are counted daily Cycle time - ✔the maximum amount of time a product is allowed to spend at each workstation

Decision Tree - ✔Modeling tool used to evaluate independent decisions that must be made in sequence.

Demand-based options - ✔A group of options that respond to demand fluctuations through the use of inventory or back orders, or by shifting the demand pattern.

Deeming Prize - ✔A japanese award given to companies to recognize efforts in quality improvement Dependent Demand - ✔demand for component parts is based on the number of end items being produced descriptive statistics - ✔Statistics used to describe quality characteristics and relationships Design capacity - ✔The maximum output rate that can be achieved by a facility under ideal conditions.

Design for manufacture (DFM) - ✔A series of guidelines to follow in order to produce a product easily and profitably.

Deterministic - ✔Assumption that the activity duration is known with certainty diseconomies of scale - ✔A condition in which the cost of each additional unit made increases.

Distribution Inventory - ✔finished goods in the distribution system Distribution Management - ✔responsible for movement of material from the manufacturer to the customer Distribution Warehouse - ✔Used for short term storage, consolidation, and product mixing.

Distribution Crossdocking - ✔The receiving and consolidating of inbound products from different vendors into a multi-SKU pallet Due Date - ✔time when the job is supposed to be finished Duration of the change - ✔the expected length of time the different capacity level is needed E-commerce - ✔Using the internet to carry out business transactions

E-distributors - ✔Independently owned net marketplaces having catalogs representing thousands of suppliers and designed for spot purchases.

E-purchasing - ✔Companies that connect on-line MRO suppliers to businesses that pay fees to join the market, usually for long-term contractual purchasing.

Early Supplier Involvement (ESI) - ✔Involvement of critical suppliers in new product design.

Economic Feasibility - ✔The cost of the job should be less than the value it adds Economic order quantity model (EOQ) - ✔An optimizing method used for determining order quantity and reorder points.

Economic Production Quantity (EPQ) - ✔A model that allows for incremental product delivery economies of scale - ✔A condition in which the average cost of a unit produced is reduced as the amount of output is increased Effective Capacity - ✔the maximum output rate that can be sustained under normal conditions. Is a permanent measure used to achieve design capacity. Is lower than design capacity.

Efficiency - ✔Ratio of actual output to standard output Electronic Data Interchange (EDI) - ✔a form of computer-to-computer communications that enables sharing business documents electronic request for quote (eRFQs) - ✔An electronic request for a quote on goods and services.

Electronic storefronts - ✔on-line catalogs of products made available to the general public by a single supplier Elemental Time Database - ✔Establish standards based on previously completed time studies, stored in an organization's database End Item - ✔A product sold as a completed item or repair part.

Engineering Plan - ✔Identifies new products or modifications to existing products that are needed to support the marketing plan.

Enterprise Resource Planning (ERP) - ✔An information system designed to integrate internal and external members of the supply chain Exchanges - ✔A marketplace that focuses on spot requirements of large firms in a single industry.

Expected Value - ✔A weighted average of chance events, where each chance event is given a probability of occurrence.

Expedite - ✔To rush orders that are needed in less than the normal lead time.

Explosion Process - ✔Calculates the demand for the children of a parent by multiplying the parent requirements by the children's usage as specified in the BOM. external failure costs - ✔costs associated with quality problems that occur at the customer site External setups - ✔can be performed while the machine is still running Extranets - ✔intranets that are linked to the Internet so that suppliers and customers can be included in the system Factor Rating - ✔a procedure that can be used to evaluate multiple alternative locations based on a number of selected factors Financial Plan - ✔Identifies the sources and uses of funds; projects cash flows, profits, return on investment; and provides budgets in support of the strategic business plan.

Finished Goods - ✔products sold to customers Finished goods inventory - ✔products available for shipment to the customer Finite loading - ✔Scheduling that loads work centers up to a predetermined amount of capacity.

Fitness for use - ✔A definition of quality that evaluates how well the product performs for its intended use.

Fixed costs - ✔Costs a company in cures regardless of how much it produces Fixed-order quantity - ✔Specifies the number of units to order whenever an order is placed.

Fixed-position layout - ✔A layout in which the product cannot be moved due to its size and the resources have to come to the production site Flexible - ✔A company can quickly adapt to the changing needs of its customers Flexible layouts - ✔Layouts that remain desirable many years into the future or can be easily modified to meet changing demand.

Flexible Manufacturing System (FMS) - ✔A type of automated system that combines the flexibility of intermittent operations with the efficiency of continuous operations.

Flow operations - ✔Processes designed to handle high-volume, standard products.

Flowchart - ✔a schematic of the sequence of steps involved in an operation or process Fluctuation Inventory - ✔provides a cushion against unexpected demand Focused Factories - ✔facilities that are small, specialized, and focused on a narrow set of objectives Forward integration - ✔owning or controlling the channels of distribution forward scheduling - ✔Scheduling that determines the earliest possible date for a job Frequency of Occurrence - ✔how often the work element must be done each cycle From-to matrix - ✔Table that gives the number of trips or units of product moved between any pair of departments.

Gantt Chart - ✔Planning and control chart designed to graphically show workload or to monitor job progress General Warehouse - ✔used for long term storage Global Positioning System (GPS) - ✔A type of wireless technology that uses satellite transmission to communicate exact locations Global priority Rules - ✔Makes a priority decision based on information that includes the remaining work centers a job must pass through Globalization - ✔The process of locating facilities around the world Green supply chain management - ✔Focuses on the role of the supply chain with regard to its impact on the environment.

Gross requirements - ✔the total-period demand for an item Group Technology (GT) - ✔Brings the efficiencies of a product layout to a process layout.

Group Technology (GT) or cell layouts - ✔hybrid layouts that create groups of products based on similar processing requirements Hiring and firing - ✔long-term option for increasing or decreasing capacity Histogram - ✔A chart that shows the frequency distribution of observed values of a variable Holding costs - ✔include the variable expenses incurred by the plant related to the volume of inventory held Hybrid aggregate plan - ✔a planning approach that uses a combination of level and chase approaches while developing the aggregate plan Hybrid layouts - ✔Layouts that combine characteristics of process and product layouts.

Immediate predecessor - ✔A task that must be performed immediately before another task.

Incoming inspection - ✔verifies the quality of incoming goods Indented bills of materials - ✔Shows the highest-level "parents" closet to the left margin and the "children" indented toward the right. Subsequent levels are indented farther to the right.

Independent Demand - ✔the demand for an item is unrelated to the demand for other items Industry Consortia - ✔Industry-owned markets that enable buyers to purchase direct inputs from a limited set of invited suppliers.

Infinite loading - ✔scheduling that calculates the capacity needed at work centers in the time period needed without regard to the capacity available to do the work Information Technology (IT) - ✔Technology that enables storage, processing, and communication of information within and between firms.

Input/output control - ✔A technique for monitoring the flow of jobs between work centers

Insourced - ✔processes and activities completed in house Intermittent Operations - ✔processes used to produce a variety of products with different processing requirements in lower volumes Internal Failure Costs - ✔costs associated with discovering poor product quality before the product reaches the customer Internal resource constraint - ✔A regular Bottleneck Intranets - ✔networks that are internal to an organization Inventory Turnover - ✔A measure of inventory policy effectiveness ISO 14000 - ✔A set of international standards and a certification focusing on a company's environmental responsibility.

ISO 9000 - ✔A set of international quality standards and a certification demonstrating that companies have met all the standards specified. Total quality management (TGM) process consisting of 13 published standards and guidelines.

Item costs - ✔Includes price paid for the item plus other direct costs associated with the purchase Jidoka - ✔Authority given to workers to stop the production line if a quality problem is detected.

JIT System - ✔The three elements are just-in-time manufacturing, total quality management, and respect for people Job Design - ✔specifies the contents of the job job enlargement - ✔a horizontal expansion of the job through increasing the scope of the work assigned Job enrichment - ✔A vertical expansion of the job through increased worker responsibility Job flow time - ✔Measurement of the time a job spends in the shop before it is finished.

Job lateness - ✔Measures whether the job is done ahead of, on, or behind schedule.

Job rotation - ✔workers shift to different jobs to increase understanding of the total process Job Tardiness - ✔measures how long after the due date the job is completed Johnson's Rule - ✔A technique for minimizing makes pan in a two-stage, unidirectional process Just-In-Time (JIT) Philosophy - ✔getting the right quantity of goods at the right place at the right time Just-In-Time Manufacturing - ✔The element of JIT that focuses on the production system to achieve value-added manufacturing.

Kaizen - ✔A Japanese term that describes the notion of a company continually striving to be better through learning and problem solving Kanban Card - ✔A card that specifies the exact quantity of product that needs to be produced Layout Planning - ✔Deciding on the best physical arrangement of all resources that consume space within a facility.

Lead Time - ✔time from order placement to order receipt Level Aggregate Plan - ✔A planning approach that produces the same quantity each time period. Inventory and back orders are used to absorb demand fluctuations.

Line Balancing - ✔The process of assigning tasks to workstations in a product layout in order to achieve a desired output and balance the workload among stations Line Processes - ✔A type of process used to produce a large volume of a standardized product.

Load Chart - ✔A chart that visually shows the workload relative to the capacity at a resource Load-distance model - ✔model used to compare the relative effectiveness of different layouts. A procedure for evaluating location alternatives based on distance.

Local priority rule - ✔Makes a priority decision based on jobs currently at that work center.

Location Analysis - ✔techniques for determining location decisions. Town factors are Proximity to customers and Quality-of-life issues.

Logistics - ✔Activities involved in obtaining, producing, and distributing materials and products in the proper place and in proper quantities Lost sale - ✔occurs when the customer is not willing to wait for delivery Lot tolerance percent defective (LTPD) - ✔The upper limit of the percentage of defective items consumers are willing to tolerate.

Lot-for-lot - ✔the company orders exactly what is needed lot-size inventory - ✔a result of the quantity ordered or produced Magnitude of the change - ✔the relative size of the change needed Make-to-order strategy - ✔produces products to customer specifications after an order has been received Make-to-stock strategy - ✔produces standard products and services for immediate sale or delivery Makespan - ✔The amount of time it takes to finish a batch of jobs.

Malcolm Baldrige National Quality Award - ✔an award given annually to companies that demonstrate quality excellence and establish best practice standards in industry Manufacturability - ✔The ease with which a product can be made.

Manufacturing crossdocking - ✔The receiving and consolidating of inbound supplies and materials to support just-in-time manufacturing.

Manufacturing Resource Planning (MRP II) - ✔A method for the effective planning and integration of all internal resources.

Mark constraint - ✔The condition that results when market demand is less than production capacity Marketing plan - ✔Identifies the markets to be served, desired levels of customer service, product competitive advantage, profit margins, and the market share needed to achieve the objectives of the strategic business plan.

Master production Schedule - ✔the anticipated production schedule for the company expressed in specific configurations, quantities, and dates Material Requirements Planning (MRP) - ✔A system that uses the MRP, inventory record data, and BOM to calculate material requirements.

Mean - ✔A statistic that measures the central tendency of a set of data Mean observed times - ✔the average of the observation times for each of the work elements Method Analysis - ✔process concerned with the detailed process for doing a particular job Min-Max system - ✔Places a replenishment order when the on-hand inventory falls below the predetermined minimum level. An order is placed to bring the inventory back up to the maximum inventory level.

Mixed-model line - ✔A line designed to produce many versions of a product Most likely time - ✔The normal time that the activity is expected to take MRO - ✔Items used in support of manufacturing and maintenance Multifunction workers - ✔capable of performing more than one job Net marketplaces - ✔suppliers and buyers conduct trade in a single internet-based environment Nonbottlenecks - ✔A work center with more capacity than demand Normal time - ✔The mean observed time multiplied by the performance rating factor by the frequency of occurrence.

Numerically Controlled (NC) Machine - ✔A machine controlled by a computer that can perform a variety of tasks Open shop orders - ✔released manufacturing orders Operating Characteristics (OC) curve - ✔A graph that shows the probability or chance of accepting a lot given various proportions of defects in the lot Operation Sequencing - ✔A short-term plan of actual jobs to be run in each work center based on available capacity and priorities.

Optimistic Time - ✔the shortest time period in which the activity can be completed Optimized Production Technology (OPT) - ✔a technique used to schedule bottleneck systems order - ✔The order quantity is determined by total demand for the item for the next n periods order-cycle service level - ✔the probability that demand during lead time will not exceed on-hand inventory Ordering costs - ✔The fixed costs associated with either placing an order with a supplier or setup costs incurred for in-house production.

Out of control - ✔The situation in which a plot of data falls outside preset control limits.

Output Rate - ✔The number of units we wish to produce over a specific period of time.

Output-based (incentive) systems - ✔pay based on the number of units completed Outsourced - ✔processes or activities that are completed by suppliers Overtime - ✔work beyond normal established operation hours that usually requires a premium be paid to the workers P-charts - ✔A control chart that monitors the proportion of defects in a sample Paced lines - ✔A system in which the product being worked on is physically attached to the line and automatically moved to the next station when the cycle time has elapsed.

Parent item - ✔an item produced from one or more children (components) Pareto Analysis - ✔A technique used to identify quality problems based on their degree of importance.

Pareto's Law - ✔Implies that about 20% of the inventory items will account for about 80% of the inventory value Partnering - ✔A process of developing a long-term relationship with a supplier based on mutual trust, shared vision, shared information, and shared risks. percentage of dollar volume shipped on schedule - ✔a customer service measure appropriate when customer orders vary in value

percentage of line items shipped on schedule - ✔a customer service measure appropriate when customer orders vary in number of line items ordered percentage of orders shipped on schedule - ✔a customer service measure appropriate for use when orders have similar value Performance rating factor - ✔a subjective estimate of a worker's pace relative to a normal work pace Periodic Counting - ✔a physical inventory is taken periodically, usually annually Periodic Review System - ✔Requires regular periodic reviews of the on-hand quantity to determine the size of the replenishment order.

Perpetual Inventory Record - ✔Provides an up-to-date inventory balance.

Pessimistic Time - ✔The longest time period in which the activity will be completed Planned Orders - ✔Suggested order quantities, release dates, and due dates created by an MRP system.

Planning factors - ✔Factors include the lot size rule, replenishment lead times, and safety stock requirements.

Plan-do-study-act (PDSA) cycle - ✔A diagram that describes the activities that need to be performed to incorporate continuous improvement into the operation.

Point of Departure - ✔the percentage of normal capacity the company is currently using Poka-yoke - ✔Foolproof devices or mechanisms that prevent defects from occurring.

Policy Constraint - ✔the condition that results when a specific policy dictates the rate of production Postponement - ✔A strategy that shifts production differentiation closer to the consumer by postponing final configuration.

Precedence Diagram - ✔A visual representation of the precedence relationships between tasks Precedence Relationships - ✔Establishes the sequencing of activities to ensure that all necessary activities are completed before a subsequent activity is begun

Predetermined time data - ✔published database of elemental time data used for establishing standard times Prevention costs - ✔Costs incurred in the process of preventing poor quality from occurring Price and availability - ✔The current price of the item and whether the quantity is available when needed.

Priority Rule - ✔Determines the priority of jobs at a work center.

Probabilistic - ✔process that uses optimistic, most likely, and pessimistic time estimates Problem-solving teams - ✔small groups of employees and supervisors trained in problem-solving techniques who meet to identify, analyze, and propose solutions to workplace problems Process Batch - ✔The quantity produced at a resource before the resource is switched over to produce another product.

Process Capacity - ✔The ability of a production process to meet or exceed preset specifications Process capability index - ✔An index used to measure process capability.

Process flow analysis - ✔A technique used for evaluating a process in terms of the sequence of steps from inputs to outputs with the goal of improving its design Process Flowchart - ✔A chart showing the sequence of steps in producing the product or service Process Layouts - ✔layouts that group resources based on similar processes or functions Process Performance Metrics - ✔Measurement of different process characteristics that tell us how a process is performing Process Velocity - ✔ratio of throughput time to value-added time producer's risk - ✔The chance that a lot containing an acceptable quality level will be rejected.

Product Design - ✔the process of defining all of the product's characteristics

Product Layouts - ✔layouts that arrange resources in sequence to allow for an efficient buildup of the product Product Life Cycle - ✔A series of stages that products pass through in their lifetime, characterized by changing product demands over time.

Product Specifications - ✔Preset ranges of acceptable quality characteristics.

Product Structure Tree - ✔The visual Representation of the BOM, Clearly defining the parent-child Production Cards - ✔A Kanban card that authorizes production of material Productivity - ✔Ratio of outputs over inputs Program Evaluation and Review Technique (PERT) - ✔network planning technique used to determine a project's planned completion date and identify the project's critical path Progress Chart - ✔a chart that visually shows the planned schedule compared to actual performance Project - ✔Endeavor with a specific objective, multiple activities, and defined precedence relationship, to be completed in a specified time period Project Activities - ✔specific tasks that must be completed and that require resources Project buffer - ✔Safety time placed at the end of the critical path Project Processes - ✔A type of process used to make a one-at-a-time product exactly to customer specifications.

Project Available - ✔The inventory balance projected into the future Psychological criteria - ✔A way of defining quality that focuses on judgmental evaluations of what constitutes product or service excellence.

Pull System - ✔JIT is based on a "pull" system rather than a "push" system Purchase order - ✔A legal document committing the company to buy the goods and providing details of the purchase.

Quality at the source - ✔The belief that it is best to uncover the source of quality problems and eliminate it.

Quality circle - ✔A team of volunteer production employees and their supervisors who meet regularly to solve quality problems Quality Function Deployment (QFD) - ✔a tool used to translate the preferences of the customer into specific technical requirements Quantity Discounts - ✔Modifies the EOQ process to consider cases where quantity discounts are available Queues - ✔Waiting line Radio Frequency Identification (RFID) - ✔A wireless technology that uses memory chips equipped with radio antennas attached to objects used to transmit streams of data.

Range - ✔The difference between the largest and smallest observations in a set of data Raw Materials - ✔purchased items or extracted materials transformed into components or products Rectilinear distance - ✔The shortest distance between two points measured by using only north-south and east-west movements REL Chart - ✔Table that reflects opinions of managers with regard to the importance of having any two departments close together.

Reliability - ✔The probability that a product, service, or part will perform as intended Remanufacturing - ✔The concept of using components of old products in the production of new ones.

Repetitive Operations - ✔processes used to produce one or a few standardized products in high volume Repetitive Processing System - ✔Systems used to produce high volumes of a few standardized products Requisition Request - ✔request indicating the need for an item Respect for People - ✔An element of JIT that considers human resources as an essential part of the JIT philosophy.

Retail crossdocking - ✔Sorting product from multiple vendors onto outbound trucks headed for specific stores.

Reverse Engineering - ✔The process of disassembling a product to analyze its design features.

Risk costs - ✔Include obsolescence, damage or deterioration, theft, insurance, and taxes associated with the volume of inventory held.

Robust design - ✔A design that results in a product that can perform over a wide range of conditions.

Routings - ✔Provides information about the operations to be performed, their sequence, the work centers, and the time standards Sales and Operations Planning - ✔the process that brings together all the functional business plans (marketing, operations, engineering, and finance) into one integrated plan sales revenue model - ✔A means of selling goods, information, or services directly to customers.

Sampling Plan - ✔A plan for acceptance sampling that precisely specifies the parameters of the sampling process and the acceptance/rejection criteria.

Scatter diagrams - ✔graphs that show how two variables are related to each other Scheduled Receipts - ✔an open order with an assigned due date SCM Software - ✔designed to improve decision making in the supply chain Self-directed - ✔integrated teams empowered to control portions of their process Service design - ✔The process of establishing all the characteristics of the service, including physical, sensual, and psychological benefits.

Service Package - ✔A grouping of physical, sensual, and psychological benefits that are purchased together as part of the service.

Setup costs - ✔cost incurred when setting up equipment for a production run Shifting Demand - ✔a marketing strategy that attempts to shift demand from peak periods to nonpeak periods to smooth out the demand pattern Shortage costs - ✔incurred when demand exceeds supply

Simplicity - ✔the simpler a solution, the better it is Single-model line - ✔A line designed to produce only one version of a product Single-period model - ✔Designed for use with products that are highly perishable.

Single-source suppliers - ✔suppliers that supply an entire family of parts for one manufacturer Six Sigma - ✔A high level of quality associated with approximately 3.4 defective parts per million. Two important aspects are Technical Tools and People Involvement.

Slack - ✔The amount of time a job can be delayed and still be finished by its due date Small-lot production - ✔the ability to produce small quantities of products Sourcing Strategy - ✔A plan indicating suppliers to be used when making purchases Special-purpose teams - ✔highly focused, short-term teams addressing issues important to management and labor Specialization - ✔The breadth of the job design Speculative inventory - ✔used to protect against some future event Standard deviation - ✔A statistic that measures the amount of data dispersion around the mean Standard Time - ✔the length of time it should take a qualified worker using appropriate process and tools to complete a specific job, allowing time for personal fatigue and unavoidable delays Statistical Process Control (SPC) - ✔A statistical tool that involves inspecting a random sample of the output from a process and deciding whether the process is producing products with characteristics that fall within a predetermined range.

Statistical Quality Control (SQC) - ✔The general category of statistical tools used to evaluate organizational quality.

Stock Keeping Unit (SKU) - ✔an item in a particular geographic location Storage Costs - ✔Include the variable expenses for space, workers, and equipment related to the volume of inventory held.

Strategic Business Plan - ✔a statement of long-range strategy and revenue, cost, and profit objectives Subcontracting - ✔Sending production work outside to another manufacturer subscription revenue model - ✔A web site that charges a subscription fee for access to its contents and services Supply Chain - ✔a network of all the activities involved in delivering a finished product or service to the customer Supply chain intelligence (SCI) - ✔enables strategic decision making along the supply chain Supply Chain Management - ✔coordinates and manages all the activities of the supply chain Supply chain velocity - ✔The speed at which product moves through a pipeline from the manufacturer to the customer Support services - ✔quality defined in terms of the support provided after the product or service is purchased Taguchi Loss Function - ✔Costs of quality increase as a quadratic function as conformance values move away from the target.

Target Inventory Level - ✔Used in determining order quantity in the periodic review system. Target inventory less on-hand inventory equals order quantity.

Technical Feasibility - ✔the job must be physically and mentally doable Theoretical minimum number of stations - ✔The number of workstations needed on a line to achieve 100 percent efficiency.

Theory of Constraints (TOC) - ✔a management philosophy that extends the concepts of OPT Throughput - ✔The quantity of finished goods that can be sold Throughput time - ✔average amount of time it takes a product to move through the system Tier one suppliers - ✔Supplies materials or services directly to the processing facility.

Tier three suppliers - ✔Directly supplies materials or services to a tier two supplier in the supply chain.

Tier two suppliers - ✔directly supplies materials or services to a tier one supplier in the supply chain Time study - ✔a technique for developing a standard time based on actual observations of the operator Time-based compensation systems - ✔pay based on the number of hours worked Time-phased - ✔expressing future demand, supply, and inventories by time period Total Quality Management (TQM) - ✔The meaning of quality as defined by the customer Traffic management - ✔responsible for arranging the method of shipment for both incoming and outgoing products or materials Transaction fee model - ✔A company receives a fee for executing a transaction Transfer Batch - ✔The quantity of items moved at the same time from one resource to the next.

Transportation crossdocking - ✔Consolidation of LTL shipments to gain economies of scale.

Transportation inventory - ✔inventory in movement between locations Two-bin system - ✔One bin with enough stock to satisfy demand during replenishment time is kept in the storeroom; the other bin is placed on the manufacturing floor.

Types of waste - ✔material, energy, time, and space Undertime - ✔a condition occurring when there are more people on the payroll than are needed to produce the planned output Uniform plant loading - ✔A constant production plan for a facility with a given planning horizon.

Utilization - ✔ratio of time a resource is used to time it is available for use Value Chain Management (VCM) - ✔Automation of a firm's purchasing or selling processes.

Value for price paid - ✔Quality defined in terms of product or service usefulness for the price paid.

Variable costs - ✔Costs that vary directly with the amount of units produced Variables - ✔A product characteristics that can be measured and has a continuum of values (e.g., height, weight, or value) vendor-managed inventory (VMI) - ✔the supplier maintains an inventory at the customer's facility Vertical Integration - ✔A measure of how much of the supply chain is actually owned or operated by the manufacturing company Virtual Private Network (VPN) - ✔A private internet based communications environment that is used by the company, its suppliers, and its customers for day to day activities.

Visible - ✔Problems must be visible to be identified and solved Waste - ✔anything that does not add value Weeks of supply - ✔a measure of inventory policy effectiveness Withdrawal Cards - ✔a kanban card that authorizes withdrawal of material work measurement - ✔determines how long it should take to do a job Work sampling - ✔a technique for estimating the proportion of time a worker spends on a particular activity Work-in process (WIP) - ✔Items in process throughout the plant X-bar chart - ✔A control chart used to monitor changes in the mean value of a process. yield management - ✔Allocates scarce resources to maximize yield.

14 points for quality improvement - ✔Total quality management (TGM) process developed to stress managements responsibility for quality Center-of-gravity approach - ✔Calculation method that finds a location that will minimize distribution costs to warehouses and stores labor specialization - ✔The division of labor into specialized activities that allow individuals to be more productive. Acknowledges the benefits of employee proficiency.

Lean Systems - ✔operations systems that maximize the value added by each of a company's activities by removing waste and delays from them Supply Chain Operations Reference (SCOR) Model - ✔The model that examines the four different supply chain perspectives of reliability, flexibility, expenses, and assets/utilization Project Life Cycle - ✔The series of phases that a project passes through from its initiation to its closure. Conception, feasibility analysis, planning,execution, termination