WGU Operations Management - C215 Fitness for use - ✔How well the product performs for its intended use Support Services - ✔quality defined in terms of the support provided after the product or service is purchased Value for Price Paid - ✔Evaluation of usefulness vs. price paid Psychological Criteria - ✔Focuses on judgmental evaluations of what constitutes product or service excellence. 14 Points for Quality Improvement - ✔Created (by Deming) to guide companies in quality improvement stressed managements responsibility for quality. ISO 1400 - ✔A collection of the best practices for managing an organization's impact on the environment. ISO 9004:2009 - ✔focuses on how to make a quality management system more efficient and effective Kaizen - ✔continuous improvement ISO 9001:2008 - ✔a set of standards governing documentation of a quality program ISO 9000 - ✔Set of international standards on quality management and quality assurance, critical to international business Scatter Diagram - ✔a plot of two variables showing whether they are related Control Chart - ✔chart used to evaluate whether a process is operating within set expectations. Flowchart - ✔A schematic of the sequence of steps involved in an operation or process. Checklist - ✔a form used to record the frequency of occurrence of certain process failures mean - ✔A statistic that measures the central tendency (average) of a set of data. range - ✔the difference between the highest and lowest scores in a distribution
Standard Deviation (SD) - ✔measures the amount of data dispersion around the mean Six Sigma - ✔A high level of quality associated with approx. 3.4 defective parts per million. technical tools - ✔To identify & eliminate the causes of quality problems. People involvement - ✔Six Sigma follows a structured methodology, and has defined roles for the participants (Martial Arts titles - Black Belt & Master Belts are experts in their training, Green Belts - have sufficient training for small projects) Factors affecting service location decisions - ✔Proximity to: source of supply; customers; sources of labor; community considerations; site considerations; quality-oflife issues; globalization Quality-of-life Issues - ✔Climate, desirable lifestyle, good schools, low crime rate, etc. Key factor in location analysis for a service company - ✔Proximity to customers capacity - ✔The maximum output rate that can be achieved by a facility Design Capacity - ✔The maximum output rate or service capacity an operation, process, or facility is designed for under ideal conditions. Effective Capacity - ✔The maximum output rate or service capacity an operation, process, or facility is designed for under normal conditions. Capacity Utilization - ✔Percentage measure of how well available capacity is being used. True about effective capacity - ✔an effective capacity is lower than design capacity and an effective capacity is a permanent measure used to achieve design capacity. When is capacity measurement at the best operating level - ✔When the average unit cost is minimized load-distance model - ✔A procedure for evaluating location alternatives based on distance. transportation method - ✔algorithm to calculate the cost impact of adding potential location sites. Provides lowest cost for each consideration. center of gravity approach - ✔like load distance, but uses xy coordinates. Good starting point - cut can end up in an area that is unusual (middle of a lake, etc)
break-even analysis - ✔a method of determining what sales volume must be reached before total revenue equals total costs Factor Rating Method - ✔a location method that instills objectivity into the process of identifying hard-to-evaluate costs rectilinear distance method - ✔The shortest distance between two points measured by using only north-south and east-west movements. Repetitive process - ✔process used to produce one or a few standardized products in high volume intermittent process - ✔used to produce a variety of products with different processing requirements in lower volume project process - ✔A type of process used to make a one-at-a-time product exactly to customer specifications. (Intermittent process -small volume) Line process - ✔a type of process used to produce a large volume of standardized product (Repetitive process - Large volume) Batch process - ✔A type of process used to produce a small quantity of products in groups or batches based on customer orders or specifications. (Intermittent process Small volume) Continuous process - ✔a type of process that operates continually to produce a high volume of fully standardized products (Repetitive process-large volume) Bottleneck - ✔The longest task in a process Ratio of utilization - ✔time a resource is used/time a resource is available ratio of efficiency - ✔actual output/standard output ratio of velocity - ✔throughput time/value-added time output/input - ✔ratio of output/inputs is productivity benchmark - ✔standard of measure (efficiency) hybrid layout - ✔layouts that combine characteristics of process and product layouts.
Fixed layouts - ✔a layout in which the product cannot be moved due to its size and all the resources have to come to the production site. process layout - ✔layout that group resources based on similar process of function product layout - ✔layouts that arrange resources in sequence to allow the efficient buildup of the product. Group Technology (GT) or Cell Layouts - ✔layouts that crate groups of products based on similar processing requirements. block plan - ✔schematic showing the placement of resources in a facility from-to matrix - ✔Table that gives the number of trips or units of product moved between any pair of departments. relationship chart (REL) - ✔table that reflects opinions of managers with regard to the importance of having any two departments close together. New operations steps - ✔1. identify the operation 2. Gather info relevant (tools, materials, procedures) 3. Talk with employees - get suggestions 4. Chart the operation (new or existing) 5. Evaluate each step - Dows the step add value? Does it add cost? 6. Revise as needed 7. put into effect. follow up. Did the process improve? Did they add to the overall operation? Normal time - ✔The mean observed time multiplied by the performance rating factor by the frequency of occurrence 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 job enlargement - ✔the horizontal expansion of a job by increasing job scope job enrichment - ✔the vertical expansion of a job by adding planning and evaluating responsibilities job rotation - ✔workers are moved between different jobs to increase variety of work and create a more flexible workforce
labor specialization - ✔the breadth of job design (scope of expertise) acknowledges the benefits of employee proficiency slack - ✔the amount of time a job can be delayed & still finish by the deadline forward scheduling - ✔schedule that determines the earliest possible completion date for a job (starts immediately) JIT system - ✔The three elements are just-in-time manufacturing, total quality management, and respect for people. finite loading - ✔Scheduling that loads work centers up to a predetermined amount of capacity. 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 backward scheduling - ✔scheduling method that determines when the job must be started to be done on the due date capacity utilization - ✔Percentage measure of how well available capacity is being used. quality circles - ✔A team of volunteer production employees and their supervisors who meet regularly to solve quality problems how do just-in-time (JIT) and lean systems add value? - ✔by reducing waste Lean Systems - ✔a concept that takes a total system approach to creating efficient operations Customer Relationship Management (CRM) - ✔software solutions that enable the firm to collect customer-specific data Enterprise Resource Planning (ERP) - ✔Large software programs used for planning and coordinating all resources throughout the entire enterprise. ISO 9001:2008 - ✔standard for the certification of a time quality management system. It is used to demonstrate the conformity of quality management systems to meet customer requirements Kanban System - ✔a pull system that uses cards (kanban) to visually signal the need for inventory Push System - ✔push moves the product forward in anticipation for demand
Pull System - ✔pull eliminates excessive inventory What function does marketing play in just-in-time (JIT) organizations? - ✔JIT marketing focuses on customer-driven quality. How does JIT system influence all functional areas within a company? - ✔Companies are able to reduce waste and companies develop new ways to generate revenue. how can management assist employees' in a JIT processing environment? - ✔1. ensure that workers receive multifunctional training 2. develop an incentive system to reward workers for their efforts Tier one supplier - ✔Supplies materials or services directly to the processing facility. tier two supplier - ✔directly supplies materials or services to a tier one supplier in the supply chain tier three supplier - ✔Directly supplies materials or services to a tier two supplier in the supply chain. what role do third-party logistics providers play in the supply chain? - ✔External distributors. A company manufactures and distributes its own products. when should the company consider outsourcing its distribution? - ✔When the company determines that distribution is no longer a core function Supply Chain Operations Reference (SCOR) Model - ✔the model that examines the 4 different supply chain perspectives: reliability, flexibility, expenses, and assets/utilizations Two areas managers consider in order to adapt to the business dynamics affecting their company? - ✔1. Their control over internal operations 2.Their influence and leverage over supplies Two strategic objectives for every member of the supply chain - ✔1. Increasing cost effectiveness 2. becoming more efficient Support supply chain objectives - ✔Cost effective & efficent
Supply Chain Management (SCM) - ✔The management of information flows between and among activities in a supply chain to maximize total supply chain effectiveness and profitability work-in-progress - ✔still being worked on raw materials - ✔the basic material from which a product is made. Sold goods - ✔Units of product that have been sold / shipped finished goods - ✔units of product that have been completed but not yet sold to customers How does inventory management differ for manufacturing organizations compared to service organizations? - ✔Manufacturing organizations must maintain tangible inventory. Service organizations do not have tangible inventory. Periodic Review System - ✔determine the quantity of an item your company has on hand at specified, fixed-time intervals. You can then place orders for the target inventory levels minus the quantity on hand. all items are reviewed during the same time interval duration of the change - ✔the expected length of time the different capacity level is needed level aggregate plan - ✔A planning approach that produces the same quantity each time period. Inventory and back orders are used to absorb demand fluctuations. chase aggregate plan - ✔a planning approach that varies production to meet demand each period hybrid aggregate plan - ✔a planning approach that uses a combination of level and chase approaches while developing the aggregate plan master production schedule (MPS) - ✔identifies when finished goods will be completed. Directly affects marketing since shortages may delay product completion ERP (Enterprise Resource Planning) - ✔large sophisticated software systems used for identifying and planning the enterprise wide resources needed to coordinate all activities involved in producing & delivering products. CRP (capacity requirements planning) - ✔determines if sufficient resources are available
FMS (Flexible Manufacturing System) - ✔a type of system that combines the flexibility of intermittent operations with efficiency of continuous operations. MRP (Material Requirements Planning) - ✔A set of techniques that uses bill of material data, inventory data, and the master production schedule to calculate requirements for materials. It makes recommendations to release replenishment orders for material. Further, because it is time-phased, it makes recommendations to reschedule open orders when due dates and need dates are not in phase. Time-phased MRP begins with the items listed on the MPS and determines (1) the quantity of all components and materials required to fabricate those items and (2) the date that the components and material are required. Time-phased MRP is accomplished by exploding the bill of material, adjusting for inventory quantities on hand or on order, and offsetting the net requirements by the appropriate lead times. CRP - Capacity Requirements Planning - ✔available capacity is compared to calculated workloads of relevant items. it provides the ability to compare available production capabilities to the planned workload. Project Life Cycle - ✔The series of phases that a project passes through from its initiation to its closure. Project Life Cycle Phases - ✔1. Conception - Identify the need for the project 2. Feasibility Study- evaluate cost, benefits, risk 3. Planning - Decide who does what, how long it should take, and what you need to do 4. Execution - do the project 5. Termination - end the project