WGU C215 Study Guide – FINAL Latest Updated 2025 Already Passed

Total Quality Management (TQM) Philosophy – 1. customer focus 2. continuous improvement 3. employee empowerment 4. use of quality tools 5. product design 6. process management 7. managing supplier quality Process Capability Index (Cpk) - Basic function of Six Sigma. Measures the process potential and performance of processes. The higher the range of Cpk, the improved is the ability of the process to complete its necessities. Six Sigma - A disciplined, data-driven approach and methodology for eliminating defects (driving toward six standard deviations between the mean and the nearest specification limit) in any process - from manufacturing to transactional and from product to service. Design Capacity - The theoretical maximum output of a system in a given period under ideal conditions. Location Analysis - proximity to customers, transportation, source of labor, community attitude, proximity to suppliers, and many other factors. The technique for determining location decisions. Line Processes - A type of process used to produce a large volume of a standardized product. ■ Limited customization and high volume Batch Processes - A type of process used to produce a small number of products in groups or batches based on customer orders or specifications. ■ High customization moderate volume Project Processes - A type of process used to make a one-at-a-time product exactly to customer specifications. ■ Most custom and lowest volume Continuous Processes - A type of process that operates continually to produce a high volume of a fully standardized product. WGU C215 Study Guide – FINAL Latest Updated 2025 Already Passed - No customization and as high a volume as possible Bottleneck - Longest task in the process. Flexible Manufacturing System (FMS) - A type of automated system that combines the flexibility of intermittent operations with the efficiency of continuous operations. Output/Input Control - A technique for monitoring the flow of jobs between work centers. Value-Added - The net increase created during the transformation of inputs into final outputs. Hybrid Layouts - Layouts that combine characteristics of process and product layouts. - Group technology layouts. - Cell technology layouts. - Grocery stores use hybrid layouts Relationship Chart (REL) - Table that reflects opinions of managers with regard to the importance of having any two departments close together. Rectilinear Distance - The shortest distance between two locations using north-south and east-west movements. From-To Matrix - Table that gives the number of trips or units of product moved between any pair of departments. Block Plan - Schematic showing the placement of resources in a facility. Mean Observed Times - The average of the observation times for each of the work elements. Normal Time - The mean observed time multiplied by the performance rating factor by the frequency of occurrence. 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. Just-in-Time (JIT) - A philosophy designed to achieve high-volume production through elimination of waste and continuous improvement. Based on a "pull" system rather than a "push" system. The three elements are just-in-time manufacturing, total quality management, and respect for people. Kanban card - A card that specifies the exact quantity of product that needs to be produced. Tier One Suppliers - Supplies materials or services directly to the processing facility. These are the suppliers that put products in specific containers or packages. Internal Functions companies Tier Two Suppliers - Directly supplies materials or services to a tier-one supplier in the supply chain. Suppliers of the specialty materials for the tier one suppliers to be able to produce the packaging necessary for different products. Think cardboard, plastic, glass, chemicals. Tier Three Suppliers - Directly supplies materials or services to a tier two supplier in the supply chain. These are companies that extract raw materials. Oil, raw chemical materials, wood. Capacity Requirements Planning (CRP) - Determines the labor and machine resources needed to fill the open and planned orders generated by the MRP. Basically, checking if there is enough work scheduled for operations Enterprise Resource Planning (ERP) - Large software programs used for planning and coordinating all resources throughout the entire enterprise. Aggregate Plans - IN A BROAD SENSE - Includes the budgeted levels of finished products, inventory, backlogs, workforce size, and aggregate production rate needed to support the marketing plan. Marketing Plan, TO, Operating and engineering Plans, TO, Start or revision of the strategic business plan. Third-Party Logistics (3PL) - Businesses used to outsource elements of the company's distribution and fulfillment services. They typically specialize in integrated operation, warehousing and transportation services which can be scaled and customized to customers' needs based on market conditions, such as the demands and delivery service requirements for their products and materials. Supply Chain Operations Reference model (SCOR) - the world's leading supply chain framework, linking business processes, performance metrics, practices and people skills into a unified structure. The goals are to increase the speed of system implementations, support organizational learning goals, and improve inventory turns. Project Life Cycle Phases - Conception, Feasibility/Study analysis, Planning, Execution, Termination Master Production Schedule (MPS) - A plan for individual commodities to be produced in each time period.It is usually linked to manufacturing where the plan indicates when and how much of each product will be demanded. It gives production, planning, purchasing, and top management the information needed to plan and control the manufacturing operation. Total Quality Management (TQM) - The meaning of quality as defined by the customer. 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 Appraisal cost - The cost associated with uncovering defects Automated order entry systems - A method using telephone models to send digital orders to suppliers. Backwards integration - Owning or controlling sources of raw materials and components. Benchmarking - Studying other companies business practices for comparison. Bullwhip effect - Inaccurate or distorted demand information created in the supply chain. Business to Business commerce - Businesses buying and selling to other businesses. Business to consumer commerce - Businesses selling to individual consumers. Cause and effect diagrams - A chart that identifies potential causes of particular quality problems. Checklist - A list of common defects and the number of observed occurrences of each. Conformance to specifications - TQM - how well a product or service meets the targets and tolerances set by designers. Continuous improvement - A philosophy of never-ending improvement. Control charts - Charts used to evaluate whether a process is operating within expectations. Crossdocking - Eliminates storage and order picking functions of a distribution warehouse. Customer defined quality - an integrated effort designed to improve quality performance at every level of the organization. Deming Prize - Japanese award for companies to recognize efforts in quality improvement. Distribution management - Responsible for the movement of material from the manufacturer to the customer. Distribution warehouse - Used for short term storage, consolidation, and product mixing. Distributor crossdocking - the receiving and consolidating of inbound products from different vendors into a multi-SKU pallet. E-commerce - Using the internet and web to do business. E-distributors - Independently owned net marketplaces having catalogs representing thousands of suppliers and designed for spot purchases. E-purchasing - Companies that connect onlone MRO suppliers to businesses that pay fees to join the market, usually for long term contractual purchasing. Early supplier involment (ESI) - Involvement of critical suppliers in new product design. Electronic data interchange (EDI) - A form of computer to computer communications that enables sharing business documents. Electronic requests for quotes (eRFQs) - An electronic request for a quote on goods and services. Electronic storefront - online catalogs of products made available to the general public by a single supplier Exchanges - Marketplaces that focus on spot requirements of larger firms in a single industry External Failure costs - Costs associated with failures that occur at the customer site. Extranets - intranets that are linked to the internet so that suppliers and customers can be included in the system. Fitness for use - TQM - How well the product performs its intended purpose. Flowchart - A schematic of the sequence of steps involved in a process. Forward integration - Owning or controlling the channels of distributions General warehouse - used for long term storage Green supply chain management - Focucses on the role of the supply chain with regard to its impact on the environment. Histogram - A chart that shows frequency distribution of observed values of a variable. Incoming inspection - verifies the quality of incoming goods Industry consortia - Industry owned markets for purchase of direct inputs from limited number of suppliers. Insourced - processes and activities completed in house Internal failure costs - costs associated with discovering poor quality product before it reaches customers. Intranets - networks internal to the organization ISO 14000 - Set of standards & certification focused on environmental responsiblity ISO 9000 - Set of quality standards & certification indicating companies have met that standard. Kaizen - Japanese term for continuous improvement through learning and problem solving. Logistics - Obtaining, producing an distributing materials and products. Malcolm Baldridge Award - Award for demonstrating quality excellence and establishing best practices. Manufacturing crossdocking - receiving and consolidating inbound supplies and materials for JIT manufacturing. Net Marketplaces - suppliers and buyers conduct trade in a single internet based environment. Outsourced - Processes/activities completed by suppliers. Pareto Analysis - A technique used to identify quality problems based on their degree of importance. Partnering - A process of developing long term relationships with a supplier based on trust, shared vision, and shared information, and shared risk. Plan-do-study-act (PDSA) cycle - a diagram that describes the actvities that need to be performed to incorporate continuous improvement. Postponement - Strategy shifts production differentiation closer to the consumer by postponing final configuration Prevention costs - Costs associated with preventing poor quality/defects from occurring. Price and availability - Current prices and whether the quantity is available when needed. Psychological criteria - TQM - way of defining quality, focuses on judgement of what constitutes product or service excellence. Purchase order - legal document committing to buy goods and providing details of purchase. Quality at the source - best to uncover problems at source and correct it. Quality Circle - Team of volunteer production workers and supervisors who meet regularly to solve quality issue. Quality function deployment (QFD) - tool to translate preferences of the customer into specific technical requirements. Radio frequency identificaion (RFID) - unpowered microchips used to transmit encoded info through antennae Reliability - probability of part, product or services will perform as intended. Requisition request - indicates the need for an item. Retail crossdocking - sorting product from multiple vendors onto outbound trucks headed for specific stores. Robust design - A design that results in a product that can perform over a wide range of conditions. Sales revenue model - a means of selling goods, information, or services directly to consumers. Scatter diagram - Graphs that show how two variables relate. Sourcing strategy - A plan indicating suppliers to be used when making purchases. Subscription revenue model - a web site that charges a subscription fee for access to its contents and services. Supply Chain - All the activities involved in delivering a finished product or service to customer Supply chain management (SCM) - The speed at which product moves through a pipeline from the manufacturer to the customer. Coordinates and manages all the activities of the supply chain Management of the flow of materials from suppliers to customers in order to reduce overall cost and increase responsiveness to customers. Supply chain velocity - The speed at which product moves through a pipeline from manufacturer to the customer. Support Serviecs - TQM - Quality defined in terms of the support provided after the product services is purchased. Taguchi loss function - costs of quality increase as a quadratic function as conformance values move away from target. Tier one suppliers - Supplies materials directly to processing facility Tier three suppliers - Directly supplies materials or services to a tier two supplier in the supply chain. Tier two suppliers - directly supplies tier one suppliers Total quality management - The meaning of quality as defined by the customer Transaction fee model - A company receives a fee for executing a transaction Transportation crossdocking - Consideration of LTL shipments to gain economics of scale.