WGU Operations and Supply Chain
Management - C720 Study Guide
Teamwork - ANSWER-Teamwork in operations benefit the customer when coordinated
decisions within an organization produce high quality products that customers value.
Teamwork can help make improvements to products. To remain competitive in the
global marketplace, teamwork should be utilized to help solve quality and productivity
problems.
Product and process design - ANSWER-Product and process design are crucial and
relate to both the design of goods and services.
Product design - ANSWER-consideration of the characteristics, features, and
performance of the product.
Product technology - ANSWER-application of knowledge to improve the product.
Process design - ANSWER-describes how a product will be made.
Process technology - ANSWER-application of knowledge to improve a process.
Common goals - ANSWER-Most organizations develop common goals during the
budgeting and planning process, which are done annually.
Most common type of organization - ANSWER-Many businesses are shifting to
organization by process due to today's fast paced environment.
Organizational structures - ANSWER-designed by process cross-functional lines.
Cross-functionality - ANSWER-a unique feature important to any organization.
Eliminating functional silos - ANSWER-allows teams to share knowledge and
understanding of decision-making across the organization.
Decentralizing decision - ANSWER-making leads to more cross-functional teams.
Relative advantage - ANSWER-The difference between the lowest cost producer and
the next-lowest cost producer.
Ethics - ANSWER-A sense of what is right and wrong that guide behavior.
,Sustainability - ANSWER-Reflects the efforts organizations are expected to make to
balance their interconnected obligations to economic viability, the societies in which
they operate, and the natural environment - the "triple bottom line."
Organizational focus points - ANSWER-Organizations need to focus on how a decision
affects not just profitability, but also employees, the community, and the environment, in
the long and short term.
Competitive advantage - ANSWER-A capability that customers value that gives an
organization an edge against its competition.
VIRAL - ANSWER-VIRAL= Value to consumers, it should be Inimitable (not easily
imitated), Rare, and an organization should have the Aptitude and Lifespan to earn
appropriate returns on the advantage.
SWOT Analysis - ANSWER-Assists in planning to achieve objectives. Strength,
Weakness, Opportunity and Threat
Key processes organizations must have: - ANSWER-Strategy development, product
development, development of systems to produce services and goods, and order
fulfillment to leverage impact.
Systems development - ANSWER-Key to meeting strategic goals. Resources include:
people, facilities, equipment, materials, and energy.
Process redesign - ANSWER-Facilitates working toward a common goal in
organizations.
Productivity - ANSWER-A mathematical calculation. It is the ratio of the outputs
achieved divided by the inputs consumed to achieve those outputs.
Productivity Formula - ANSWER-Productivity = Output / Input. Change in productivity =
(new productivity - old productivity) / old productivity.
Labor Productivity Formula - ANSWER-Labor productivity = Quantity or value of units
produced divided labor hours or labor cost.
Quality - ANSWER-Determined by the customer and how the customer will use a
product.
Used to judge service quality: - ANSWER-Reliability- ability to perform the promised
service dependably and accurately.
Responsiveness- willingness to help customers and provide prompt service.
Assurance- knowledge and courtesy of employees and their ability to convey trust and
confidence.
Empathy- provision of caring, individualized attention to customers.
, Tangibles- appearance of physical facilities, equipment, personnel, and communication
materials.
Factors that determine quality for goods: - ANSWER-Performance- primary operating
characteristic of a product
Features- secondary characteristics that supplement the product's basic functioning.
Reliability- length of time a product will function before it fails or the probability it will
function for a stated period of time.
Conformance- degree to which a product's design and operating characteristics match
pre-established standards.
Durability- ability of a product to function when subjected to hard and frequent use.
Serviceability- speed, courtesy and competence of repair.
Aesthetics- how a product looks, feels, sounds, tastes, or smells.
Perceived quality- image, advertising, or brand name of a product.
Failure costs - ANSWER-Can be internal to the organization (defects found before
product reaches consumer) or external after reaching the customer (cost of warranty
repair work, handling complaints, or replacing products). Failure costs can lead to: lost
goodwill, legal liability if someone is injured/killed, and even loss of customers.
Appraisal costs - ANSWER-Investment in measuring the quality and assessing
customer satisfaction. Appraisal costs include: costs involved with customer satisfaction
surveys, hiring individuals to inspect property at a hotel chain, or testing computers to
ensure they will operate as intended.
Prevention costs - ANSWER-Put a stop to the quality problem. Prevention costs
include: activities such as employee training, quality control procedures or other
activities designed to prevent product defects.
Statistical process control (SPC) - ANSWER-The use of statistical methods to
determine when a process that produces a good or service is getting close to producing
an unacceptable level of defects.
Process selection - ANSWER-Determining the most appropriate method of completing a
task. It is a series of decisions that include technical or engineering issues and volume
or scale issues. There is a strong relationship among process selection and volume,
cost, and profit.
Leverage - ANSWER-Making a workforce more productive through the use of better
tools.
Assembly line - ANSWER-Used to describe the assembly of low-variety discrete
products. Has relatively high fixed costs and relatively low variable costs.
Management - C720 Study Guide
Teamwork - ANSWER-Teamwork in operations benefit the customer when coordinated
decisions within an organization produce high quality products that customers value.
Teamwork can help make improvements to products. To remain competitive in the
global marketplace, teamwork should be utilized to help solve quality and productivity
problems.
Product and process design - ANSWER-Product and process design are crucial and
relate to both the design of goods and services.
Product design - ANSWER-consideration of the characteristics, features, and
performance of the product.
Product technology - ANSWER-application of knowledge to improve the product.
Process design - ANSWER-describes how a product will be made.
Process technology - ANSWER-application of knowledge to improve a process.
Common goals - ANSWER-Most organizations develop common goals during the
budgeting and planning process, which are done annually.
Most common type of organization - ANSWER-Many businesses are shifting to
organization by process due to today's fast paced environment.
Organizational structures - ANSWER-designed by process cross-functional lines.
Cross-functionality - ANSWER-a unique feature important to any organization.
Eliminating functional silos - ANSWER-allows teams to share knowledge and
understanding of decision-making across the organization.
Decentralizing decision - ANSWER-making leads to more cross-functional teams.
Relative advantage - ANSWER-The difference between the lowest cost producer and
the next-lowest cost producer.
Ethics - ANSWER-A sense of what is right and wrong that guide behavior.
,Sustainability - ANSWER-Reflects the efforts organizations are expected to make to
balance their interconnected obligations to economic viability, the societies in which
they operate, and the natural environment - the "triple bottom line."
Organizational focus points - ANSWER-Organizations need to focus on how a decision
affects not just profitability, but also employees, the community, and the environment, in
the long and short term.
Competitive advantage - ANSWER-A capability that customers value that gives an
organization an edge against its competition.
VIRAL - ANSWER-VIRAL= Value to consumers, it should be Inimitable (not easily
imitated), Rare, and an organization should have the Aptitude and Lifespan to earn
appropriate returns on the advantage.
SWOT Analysis - ANSWER-Assists in planning to achieve objectives. Strength,
Weakness, Opportunity and Threat
Key processes organizations must have: - ANSWER-Strategy development, product
development, development of systems to produce services and goods, and order
fulfillment to leverage impact.
Systems development - ANSWER-Key to meeting strategic goals. Resources include:
people, facilities, equipment, materials, and energy.
Process redesign - ANSWER-Facilitates working toward a common goal in
organizations.
Productivity - ANSWER-A mathematical calculation. It is the ratio of the outputs
achieved divided by the inputs consumed to achieve those outputs.
Productivity Formula - ANSWER-Productivity = Output / Input. Change in productivity =
(new productivity - old productivity) / old productivity.
Labor Productivity Formula - ANSWER-Labor productivity = Quantity or value of units
produced divided labor hours or labor cost.
Quality - ANSWER-Determined by the customer and how the customer will use a
product.
Used to judge service quality: - ANSWER-Reliability- ability to perform the promised
service dependably and accurately.
Responsiveness- willingness to help customers and provide prompt service.
Assurance- knowledge and courtesy of employees and their ability to convey trust and
confidence.
Empathy- provision of caring, individualized attention to customers.
, Tangibles- appearance of physical facilities, equipment, personnel, and communication
materials.
Factors that determine quality for goods: - ANSWER-Performance- primary operating
characteristic of a product
Features- secondary characteristics that supplement the product's basic functioning.
Reliability- length of time a product will function before it fails or the probability it will
function for a stated period of time.
Conformance- degree to which a product's design and operating characteristics match
pre-established standards.
Durability- ability of a product to function when subjected to hard and frequent use.
Serviceability- speed, courtesy and competence of repair.
Aesthetics- how a product looks, feels, sounds, tastes, or smells.
Perceived quality- image, advertising, or brand name of a product.
Failure costs - ANSWER-Can be internal to the organization (defects found before
product reaches consumer) or external after reaching the customer (cost of warranty
repair work, handling complaints, or replacing products). Failure costs can lead to: lost
goodwill, legal liability if someone is injured/killed, and even loss of customers.
Appraisal costs - ANSWER-Investment in measuring the quality and assessing
customer satisfaction. Appraisal costs include: costs involved with customer satisfaction
surveys, hiring individuals to inspect property at a hotel chain, or testing computers to
ensure they will operate as intended.
Prevention costs - ANSWER-Put a stop to the quality problem. Prevention costs
include: activities such as employee training, quality control procedures or other
activities designed to prevent product defects.
Statistical process control (SPC) - ANSWER-The use of statistical methods to
determine when a process that produces a good or service is getting close to producing
an unacceptable level of defects.
Process selection - ANSWER-Determining the most appropriate method of completing a
task. It is a series of decisions that include technical or engineering issues and volume
or scale issues. There is a strong relationship among process selection and volume,
cost, and profit.
Leverage - ANSWER-Making a workforce more productive through the use of better
tools.
Assembly line - ANSWER-Used to describe the assembly of low-variety discrete
products. Has relatively high fixed costs and relatively low variable costs.
