MGSC 395 Exam 1 Precht Prep Questions And Answers Well Elaborated.

Finance - correct answers Acquires financial resources and capital for inputs Marketing - correct answers Generates sales of outputs Operations - correct answers Translates materials and services into outputs Process - correct answers Any activity or group of activities that takes one or more inputs, transforms them, and provides one or more outputs for its customers Operation - correct answers A group of resources performing all or part of one more processes Supply Chain - correct answers An interrelated series of processes within and across firms that produces a service or product to the satisfaction of customers Manufacturing Process - correct answers Physical, durable output Output can be inventoried Low customer contact Long response time Capital intensive Quality easily measured Service Process - correct answersIntangible, perishable output Output cannot be inventoried High customer contact Short response time Labor intensive Quality not easily measured Competitive Priorities - correct answersCost Quality Speed/Time Flexibility Competitive Capabilities - correct answersCurrent Needed Planned Order Qualifiers - correct answersMinimum level required from a set of criteria for a firm to do business in a particular market segment Order Winners - correct answersA criterion customers use to differentiate the services or products of one firm from those of another Productivity - correct answersoutput/input Labor Productivity - correct answerspolicies processed/employee hours Multifactor Productivity - correct answersValue of output/Labor cost+Materials cost+Overhead cost Break-even quantity - correct answersthe volume at which total revenues equal total costs Break-even analysis - correct answersquantitative analysis to compare process by finding the volume at which two different processes have equal total costs Back Office - correct answersLow customer interaction Standard process ex. insurance claim processing Front Office - correct answersHigh customer interaction Flexible or individualized processes ex. professional services Continuous Flow Process - correct answersLow customer interaction Standard processes ex. consumer products Job Process - correct answersLow volume Made to customer order Flexible or unique processes ex. customized products Process Structure Matrix - Manufacturing - correct answersContinuous Flow Process - Make to stock Line Process - assemble to order Batch Process - make to order Job Process - design to order Production and Inventory Strategies - correct answersdesign to order make to order assemble to order - postponement - mass customization make to stock - mass production Resource Flexibility. Equipment - correct answersGeneral Purpose equipment vs. Special purpose Resource Flexibility. Workforce - correct answersFlexible vs. Specialized Top quality, on-time delivery, and flexibility - correct answersjob process or small batch process Low-cost operations, consistent quality, and delivery speed - correct answerslarge batch, line, or continuous-flow process top quality, customization, and variety - correct answersdesign to order top quality, on-time delivery, and flexibility - correct answersmake to order delivery speed and variety - correct answersassemble to order low-cost operation and delivery speed - correct answersmake to stock Process Reengineering - correct answersThe fundamental rethinking and radical redesign of business processes to achieve dramatic improvement in critical measures of performance such as cost, quality, service, and speed. Process Improvement - correct answersthe systematic study of the activities and flows of each process to improve it most changes are in this category Benchmarking - correct answersa systematic procedure that measures a firm's processes, services, and products against those of industry leaders Quality - correct answersa term used by customers to describe their general satisfaction with a service or product Defect - correct answersany instance when a process fails to satisfy its customer Prevention costs - correct answerscosts associated with preventing defects before they happen (built in quality) Appraisal costs - correct answerscosts incurred when the firm assesses the performance level of its processes ex. inspection Internal failure costs - correct answerscosts resulting from defects that are discovered during the production of a service or product (rework and scrap) External failure costs - correct answerscosts that arise when a defect is discovered after the customer receives the service or product Ethical failure costs - correct answerssocietal and monetary costs associated with deceptively passing defective services or products to customers Top Quality Management - correct answerscenter - customer satisfaction continuous improvement, employee involvement Six Sigma - on TQM - correct answersgoal is to minimize defects and variability in processes process variability is the process off target but better than process average w/ too much variation Statistical Process Control (SPC) - correct answersthe application of statistical techniques to determine whether a process is delivering what the customer wants Control Charts - correct answersUsed in SPC to detect defective services or products or to identify that the process has changed and will deviate from specifications unless something is done to correct the situation Variation of Outputs - correct answersNo two services of products are exactly alike because the processes used to produce them contain many sources of variation, even if the processes are working as intended Variable Data - correct answersperformance measurements - service or product characteristics that can be measured, tells you more about the product ex. destructive testing techniques Attribute Data - correct answersperformance measurements - service or product characteristics that can be quickly counted for acceptance performance ex. Y/N response Common cause - correct answersthe purely random, unidentifiable sources of variation that are unavoidable with the current process Assignable cause - correct answersany variation-causing factors that can be identified and eliminated, something unique happens here Control Chart - correct answersa time-ordered diagram that is used to determine whether observed variations are abnormal Process Capability - correct answersthe ability of the process to meet the design specification for a service or product Process Capability Ratio - correct answersmeasure of process variability against the allowable range it is the tolerance width divided by six standard deviations 3sigma - correct answers1.0 benchmark 6sigma - correct answers2.0 Capacity planning (long-term) - correct answersEconomies and dis-economies of scale Capacity timing and sizing strategies Systematic approach to capacity decisions output measures of capacity - correct answersfirm uses high volume, standardized processes relatively small number of products also good for measuring individual processes within a firm ex. throughput, seat miles, revenue, etc. input measures of capacity - correct answersThe firm uses low-volume, flexible processes High variety and product mix ex. machine hours, people hours, trucks received, etc. Maximum capacity - correct answersGreatest level of output that can be sustained for a longer period of time Capacity cushions - correct answersthe amount of reserve capacity a process uses to handle sudden increases in demand or temporary losses of production capacity Capacity cushion - correct answers100% - average utilization rate (%) Reasons for Capacity Cushion? - correct answers- large variation in demand -changing product mix -unstable supply chain -normal operating issues capacity requirement - correct answers processing and setup hours required for year's demand, summed over all services or products / hours available from a single capacity unit per year, after deducting desired cushion