C215 WGU Study Guide Latest

Internal resource constraint - A regular bottleneck Capacity-constrained - Bottleneck caused by inefficient usage Customer Relationship Management (CRM) - Software solutions that enable the firm to collect customer-specific data allowance factor - the amount of time the analyst allows for personal time, fatigue, and unavoidable delays appraisal costs - Costs incurred in the process of uncovering defects common - Random causes that cannot be identified consumer's risk - The chance of accepting a lot that contains a greater number of defects than the LTPD limit. 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. Causal Models - based on the assumption that the variable being forecast is related to other variables in the environment Checklist - A list of common defects and the number of observed occurrences of these defects. Economic Feasibility - The cost of the job should be less than the value it adds Cycles - Data patterns created by economic fluctuations decision tree - Modeling tool used to evaluate independent decisions that must be made in sequence Delphi Method - approach to forecasting in which a forecast is the product of a consensus among a group of experts correlation coefficient formula - Statistic that measures the direction and strength of the linear relationship between two variables Cross-functional Decision Making - the coordinated interaction and decision making that occur among the different functions of the organization Backward scheduling - scheduling backward from a due date Balance Delay - The amount by which the line efficiency falls short of 100% Behavioral Feasibility - degree to which the job is intrinsically satisfying to the employee 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. Customer Relationship Management (CRM) - software solutions that enable the firm to collect customer-specific data elemental time data - establish standards based on previously completed time studies, stored in an organization's database Frequency of Occurrence - how often the work element must be done each cycle Job Design - Specifies the contents of the job. job enlargement - broadening the types of tasks performed in a job by the worker job enrichment - A vertical expansion of the job through increased worker responsibility job rotation - enlarging jobs by moving employees among several different jobs Mean observed time - The average of the observation times for each of the work elements Methods Analysis - process concerned with the detailed process for doing a particular job Normal Time - the time necessary to complete an activity under normal conditions Performance rating factor - a subjective estimate of a worker's pace relative to a normal work pace Predetermined time data - published database of elemental time data used for establishing standard times problem-solving team - Small groups of employees and supervisors trained in problemsolving techniques who meet to identify, analyze, and propose solutions to workplace problems 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 Technical feasibility - the job must be physically and mentally doable work measurement - Determining 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 ABC Classification - a method for determining level of control and frequency of review of inventory items Anticipation Inventory - Inventory that is held in anticipation of customer demand capital costs - The higher of the cost of capital or the opportunity cost for the company Components - parts Continuous Review System - updates inventory balances after each inventory transaction cycle counting - a physical inventory-taking technique in which inventory is counted on a frequent basis rather than once or twice a year Distribution inventory - Inventory, usually spare parts and finished goods, located in the distribution system (e.g., in warehouses, in transit between warehouses and the consumer) Economic Order Quantity (EOQ) - An optimizing method used for determining order quantity and reorder points Economic Production Quantity (EPQ) - A model that allows for incremental product delivery fixed order quantity - Specifies the number of units to order whenever an order is placed. Fluctuation Inventory - Inventory being carried as a cushion to protect against possible demand variation. holding costs - the costs of holding or "carrying" inventory over time Inventory Turnover - a measure of inventory policy effectiveness lead time - time interval between ordering and receiving the order lost sale - occurs when the customer is unwilling to wait and purchases the item elsewhere Lot-for-lot - a lot-sizing technique that generates exactly what is required to meet the plan lot-size inventory - a result of the quantity ordered or produced maintenance, repair, and operating (MRO) inventory - Items used in support of manufacturing and maintenance 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. order-cycle service level - The probability that demand during lead time will not exceed on-hand inventory ordering costs - the costs of placing an order and receiving goods Order n periods - The order quantity is determined by total demand for the item for the next n periods. Pareto's Law - tImplies that about 20 percent of the inventory items will account for about 80 percent of the inventory value 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 periodic counting - a physical inventory is taken periodically, usually annually Periodic Review System - An inventory system that is used to manage independent demand inventory where the inventory level for an item is checked at regular intervals and restocked to some predetermined level. Perpetual Inventory Method - Provides an up-to-date inventory balance Quantity Discount Model - modifies the EOQ process to consider cases where quantity discounts are available raw materials - Purchased items or extracted materials transformed into components or products Risk costs - Include obsolescence, damage or deterioration, theft, insurance, and taxes associated with the volume of inventory held. shortage costs - Costs resulting when demand exceeds the supply of inventory; often unrealized profit per unit single period model - Designed for use with products that are highly perishable Speculative inventory - Used to protect against some future event target inventory level - Used in determining order quantity in the periodic review system. Target inventory less on-hand inventory equals order quantity. Transportation inventory - Inventory that is moving from one link in the supply chain to another. flow operations - Processes designed to handle high-volume, standard products. Gantt Chart - Planning and control chart designed to graphically show workloads or to monitor job progress Global Priority rule - Makes a priority decision based on information that includes the remaining work centers a job must pass through input/output control - a technique for monitoring the flow of jobs between work centers Internal resource Constraint - a regular bottleneck job flow time - time from when work starts on a job until all required work is completed Job lateness - Measures whether the job is done ahead of, on, or behind schedule job tardiness - measures how long after the due date the job is completed Johnson's Rule - A technique for minimizing makespan in a two-stage, unidirectional process load chart - A chart that visually shows the workload relative to the capacity at a resource