Oper3100 Exam1 Vocab

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Oper3100 Exam1 Vocab
2014-01-31 15:28:08
Exam Vocabulary
Operations management
Oper3100 Vocabulary 1st test
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  1. Operations and supply chain management
    is defined as the design, operation, and improvement of the systems that create and deliver the firm's primary products and services.
  2. Servitization
    refers to a company building service activities into its product offerings for its current users, that is, its installed base. Such services include maintenance, spare parts provisioning, training, and in some cases, total systems design and R&D.
  3. Efficiency
    means doing something at the lowest possible price
  4. Effectiveness
    means doing the right things to create the most value for the company.
  5. Value
    means quality divided by price. Ratio of quality to price paid. Competitive "happiness" is being able to increase quality and reduce price while maintaining or improving profit margins. (This is a way that operation can directly increase customer retention and gain market share.)
  6. Mass customization
    producing products to order in lot sizes of one
  7. Sustainability
    the ability to maintain balance in a system
  8. Triple bottom line
    relates to the economic, employee, and environmental impact of the firm's strategy
  9. Triple bottom line
    a business strategy that includes social, economic, and environmental criteria
  10. Operations and supply chain strategy
    setting broad policies and plans for using the resources of a firm to best support the firm's long-term competitive strategy
  11. Straddling
    occurs when a firm seeks to match what a competitor is doing by adding new features, services, or technologies to existing activities. This often creates problems if certain trade-offs need to be made.
  12. Order winner
    a dimension that differentiates the products or services of one firm from those of another
  13. Order qualifier
    a dimension used to screen a product or service as a candidate for purchase
  14. Activity-system maps
    A diagram that shows how a company's strategy is delivered through a set of supporting activities
  15. Core capabilities
    skills that differentiate a manufacturing or service firm from its competitors
  16. Productivity
    a measure of how well resources are used
  17. Strategic sourcing
    the development and management of supplier relationships to acquire goods and services in a way that aids in achieving the immediate needs of a business
  18. Vendor managed inventory
    when a customer allows the supplier to manage an item or group of items
  19. Bullwhip effect
    the variability in demand is magnified as we move from the customer to the producer in the supply chain
  20. Functional products
    staples that people buy in a wide range of retail outlets, such as grocery stores and gas station
  21. Innovative products
    products such as fashionable clothes and personal computers that typically have a life cycle of just a few months
  22. Outsourcing
    moving some of a firm's internal activities and decision responsibility to outside providers
  23. Logistics
    management functions that support the complete cycle of material flow: from the purchase and internal control of production materials; to the planning and control of work-in-process; to the purchasing, shipping, and distribution of the finished product
  24. Total cost of ownership (TCO)
    estimate of the cost of an item that includes all the costs related to the procurement and use of the item including disposing of the item after its useful life
  25. Inventory turnover and weeks of supply
    measure of supply chain efficiency that are mathematically the inverse of one another
  26. Cost of goods sold
    The annual cost for a company to produce the goods or services provided to customers
  27. Average aggregate inventory value
    the total value of all items held in inventory for the firm, valued at cost
  28. Weeks of supply
    a measure of how many weeks' worth of inventory is in the system at a particular point in time
  29. Logistics
    • 1. in an industrial context the art and science of obtaining, producing, and distributing material and product in the proper place and in the proper quantities
    • 2. in a military sense (where it has greater usage) its meaning also can include the movement of personnel
  30. International logistics
    all functions concerned with the movement of materials and finished goods on a global scale
  31. Third-party logistics company
    a company that manages all or part of another company's product delivery operations
  32. Cross-docking
    an approach used in consolidation warehouses where rather than making larger shipments, larger shipments are broken down into small shipments for local delivery in an area
  33. Hub-and-spoke systems
    systems that combine the idea of consolidation and that of cross-docking
  34. Free trade zone
    a closed facility (under the supervision of government customs officials) into which foreign goods can be brought without being subject to the payment of normal import duties
  35. Trading bloc
    a group of countries that agree on a set of special arrangements governing the trading the goods between member countries. Companies may locate in places affected by the agreement to take advantage of new market opportunities
  36. Factor-rating system
    an approach for selecting a facility location by combing a diverse set of factors. Point scales are developed for each criterion. Each potential site is the evaluated on each criterion and the points are combined to calculate a rating for the site
  37. Transportation method
    a special linear programming method that is useful for solving problems involving transporting products from several sources to several destinations
  38. Centroid method
    a technique for locating single facilities that considers the existing facilities, the distances between them, and the volumes of goods to be shipped
  39. Lean production
    integrated activities designed to achieve high-volume, high-quality production using minimal inventories of raw materials, work-in-process, and finished goods
  40. Customer value
    In the context of lean, something for which the customer is wiling to pay
  41. Waste
    something that does not add value from the customer's perspective
  42. Value stream
    these are the value-adding and non-value-adding activities required to design, order, and provide a product from concept to launch, order to delivery, and raw materials to customers
  43. Waste reduction
    the optimization of value-adding activities and elimination of non-value-adding activities that are part of the value streaming
  44. Value stream mapping
    a graphical way to analyze where value is or is not being added as material flows through a process
  45. Kaizen
    japanese philosophy that focuses on continuous improvement
  46. Preventive maintenance
    periodic inspection and repair designed to keep equipment reliable
  47. Group technology
    a philosophy in which similar parts are grouped into families and the processes required to make the parts are arranged in a specialized work cell
  48. Quality at the source
    philosophy of making factory workers personally responsible for the quality of their output. Workers are expected to make the part correctly the first time and to stop the process immediately if there is a problem.
  49. Level schedule
    a schedule that pulls material into final assembly at a constant rate
  50. Freeze window
    the period of time during which the schedule is fixed and no further changes are possible
  51. Backflush
    calculating how many of each part were used in production and using these calculations to adjust actual on-hand inventory balances. This eliminates the need to actually track each part used in production
  52. Uniform plant loading
    smoothing the production flow to dampen schedule variation
  53. Kanban and the kanban pull system
    an inventory of production control system that uses a signaling device to regulate flows
  54. Aggregate operations plan
    Translating annual and quarterly business plans into labor and production output plans for the intermediate term. The objective is to minimize the cost of resources required to meet demand
  55. Sales and operations planning
    a term that refers to the process that helps companies keep demand and supply in balance. The terminology is meant to capture the importance of cross-functional work
  56. Long-range planning
    activity typically done annually and focusing on a horizon of a year or more
  57. Intermediate-range planning
    activity that usually covers a period from 3 to 18 months with weekly, monthly, or quarterly time increments
  58. Short-range planning
    planning that covers a period less that six months with either daily or weekly increments of time
  59. Production rate
    the number of units completed per unit of time
  60. Workforce level
    the number of production workers needed each period
  61. Inventory on hand
    unused inventory carried from a previous period
  62. Production planning strategies
    plans that involve trade-offs among workforce size, work hours, inventory, and backlogs
  63. Pure strategy
    a plan that uses just one of the options available for meeting demand. Typically options include chasing demand using a stable workforce with overtime or part-time work, and constant production with shortages and overages absorbed by inventory
  64. Mixed strategy
    a plan that combines options available for meeting demand
  65. Yield management
    allocating the right type of capacity to the right type of customer at the right price and time to maximize revenue or yield
  66. Linear programming
    refers to several related mathematical techniques used to allocate limited resources among competing demands in an optimal way
  67. Graphical linear programming
    provides a quick insight into the nature of linear programming