Operations and Supply Chain Management - C720 (WGU) exam| 208 questions with 100% correct answers

Inseparability The process of separating production from consumption; cannot be done for services because they are produced and consumed simultaneously. Technology The application of knowledge, tools, processes, and procedures to solve problems. Product and Process design are crucial and relate to the design both of goods and services Product Design Consideration of the characteristics, features, and performance of the product; how the product functions; does not fundamentally change the product. Example: changing Coca-Cola's beverage containers from glass to aluminum. Product and Process Technology Product: The application of knowledge to improve the product. Process: The application of knowledge to improve a process. Process How to accomplish a task. Many businesses are shifting to organization by process due to today's fast paced environment Process Design How a product is made; can fundamentally alter the nature of the product. Example: changing the taste of Coca-Cola. Cross-Functionality When individuals with different expertise work towards a common goal; this is an essential business process. cross training employees: means each can perform more than one activity, and can shift to other teams as demand changes. Eliminating functional silos allows teams to share knowledge and understanding of decision-making across the organization. Decentralizing decision-making leads to more cross-functional teams. Organizations need to focus on how a decision affects profitability, employees, the community, and the environment, in both the long and short term. Concurrent Engineering Completing product design and process design simultaneously. Functional Areas Subsystems within an organization, such as marketing, finance, and accounting, that are linked together by a common organizational goal. Strategy Consists of the organizational goals and the methods of implementing the goals; every element of the SWOT analysis should be considered when developing strategies. Key Policies Main goals of an organization. Organizational Structure The formal relationships among different functional areas that aids in communication. (designed by cross functional lines) Many businesses are shifting to organization by process due to today's fast paced environment North American Free Trade Agreement (NAFTA) A free trade agreement between the United State, Mexico, and Canada to reduce tariffs and other trade restrictions. General Agreement on Tariffs and Trade (GATT) A trade agreement designed to reduce tariffs and other trade restrictions. What is the percentage of businesses that operate within the service sector? 88 percent Supporting Goods Supplies and equipment that aid in the development of products and services. Market Share The percentage of sales in a particular market. Learning Curve Continuously improving a product to make it better and cheaper. Synergy Teamwork where the whole is greater than the sum of its parts. System The process of producing goods and system through Resources of: people, facilities, equipment, materials and energy Matching Matching strengths to opportunities. Converting Converting weaknesses or threats into strengths or opportunities. The First Revolution Starting in the late 1800s, increases in manufacturing productivity reduced the need for physical labor and enabled a shift towards service-based jobs. The Second Revolution Productivity and efficiency improvements in manufacturing freed resources for the rapid expansion of the service industry. The Third Revolution Also known as the post-industrial era, this revolution began in the 1950s with the development of computers. This technology has allowed fewer people to do more work. Quantitative Factors are easily measurable and are usually assigned a numerical value Manufacturing Quantitative factors include Labor costs, Material costs, Transportation, Utilities, taxes, real estate costs and construction costs Government incentives Qualitative factors Are more subjective and are usually not enumerated Manufacturing Qualitative factors include Labor climate, Location - proximity to customers and markets, Proximity to suppliers and resources, Proximity to competition, Quality of life, Process Redesign The complete overhaul of a process to improve performance. This facilitates working toward a common goal in organizations. Percent Change in Productivity [(New - Old) / Old Productivity] * 100 Questions for Customers when Improving Products Ask what they value (not just what they want), how do they work, what makes them happy, and feedback on specific product attributes. Poka-yoke Mistake proofing; an approach to prevent defects, such as color-coding parts so that customers assemble the product correctly. Design for Manufacture and Assembly (DFMA) Products should be designed so that they are simple and inexpensive to produce. Design for Operations (DFO) Services should be simple and inexpensive. Total Quality Management (TQM) An organization-wide philosophy (originated in Japan) that calls for 1) focusing on the customer, 2) quality function deployment, 3) responsibility for quality, 4) team problem-solving, 5) employee training, and 6) fact-based management. Employee empowerment involving employees in every step from product design to process design, and system design. As workforce becomes more highly skilled decision-making and responsibility can be move to individual contributors in frontline processes or lowest level in the organization. When errors occur, frontline employees often have the best perspective to solve the problem, and identify means to prevent defects and eliminate errors. Voice of the Customer Describes what customers want and what they like and dislike; can get to know customers, hold focus groups, and request improvement suggestions; the business can also use their knowledge of how the customer would benefit from a new technology that they are not familiar with to create a future need on behalf of the customer. Standardization Developing a preset procedure. Documentation The act of putting a procedure into writing. ISO 9000 2000: An international quality standard. Histogram/Box Chart Shows the frequency of data observations within a preset range of values. Scatter Plot Displays data as a relationship between two variables; correlations can be drawn based upon the data. The controlled variable is the independent variable.