WGU C215 Study Guide Latest

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