Objective Assessment Prep Guide &
Terminologies Combo Study Guide
Questions with Correct Answers
1. customer focus
2. continuous improvement
3. employee empowerment
4. use of quality tools
5. product design
6. process management
7. managing supplier quality - ANSWERSTotal Quality Management (TQM) Philosophy
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. Uses both the process variability and the process
specifications to determine whether the process is "capable." - ANSWERSProcess
Capability Index (Cpk)
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. -
ANSWERSSix Sigma
The theoretical maximum output of a system in a given period under ideal conditions. -
ANSWERSDesign Capacity
The capacity a firm expects to achieve given its current operating constraints. -
ANSWERSEffective Capacity
proximity to customers, transportation, source of labor, community attitude, proximity to
suppliers, and many other factors. - ANSWERSLocation Analysis
A type of process used to produce a large volume of a standardized product. -
ANSWERSLine Processes
A type of process used to produce a small quantity of products in groups or batches
based on customer orders or specifications. - ANSWERSBatch Processes
,A type of process used to make a one-at-a-time product exactly to customer
specifications. - ANSWERSProject Processes
A type of process that operates continually to produce a high volume of a fully
standardized product. - ANSWERSContinuous Processes
Longest task in the process. - ANSWERSBottleneck
A type of automated system that combines the flexibility of intermittent operations with
the efficiency of continuous operations. - ANSWERSFlexible Manufacturing System
(FMS)
A technique for monitoring the flow of jobs between work centers. -
ANSWERSOutput/Input Control
The net increase created during the transformation of inputs into final outputs. -
ANSWERSValue-Added
Layouts that combine characteristics of process and product layouts. -
ANSWERSHybrid Layouts
Table that reflects opinions of managers with regard to the importance of having any
two departments close together. - ANSWERSRelationship Chart (REL)
The shortest distance between two locations using north-south and east-west
movements. - ANSWERSRectilinear Distance
Table that gives the number of trips or units of product moved between any pair of
departments. - ANSWERSFrom-To Matrix
Schematic showing the placement of resources in a facility. - ANSWERSBlock Plan
The average of the observation times for each of the work elements. - ANSWERSMean
Observed Times
The mean observed time multiplied by the performance rating factor by the frequency of
occurrence. - ANSWERSNormal 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. -
ANSWERSStandard Time
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. - ANSWERSJust-in-Time (JIT)
,A card that specifies the exact quantity of product that needs to be produced. -
ANSWERSKanban card
A philosophy of neverending improvement. - ANSWERSContinuous Improvement
Supplies materials or services directly to the processing facility. - ANSWERSTier One
Suppliers
Directly supplies materials or services to a tier one supplier in the supply chain. -
ANSWERSTier Two Suppliers
Directly supplies materials or services to a tier two supplier in the supply chain. -
ANSWERSTier Three Suppliers
Management of the flow of materials from suppliers to customers in order to reduce
overall cost and increase responsiveness to customers. - ANSWERSSupply Chain
Management (SCM)
Determines the labor and machine resources needed to fill the open and planned orders
generated by the MRP. - ANSWERSCapacity Requirements Planning (CRP)
A system that uses the MRP, inventory record data, and BOM to calculate material
requirements. - ANSWERSMaterial Requirements Planning (MRP)
Large software programs used for planning and coordinating all resources throughout
the entire enterprise. - ANSWERSEnterprise Resource Planning (ERP)
Includes the budgeted levels of finished products, inventory, backlogs, workforce size,
and aggregate production rate needed to support the marketing plan. -
ANSWERSAggregate Plans
Businesses to outsource elements of the company's distribution and fulfillment services.
specialize in integrated operation, warehousing and transportation services customized
to customers' needs based on the demands and delivery service requirements for their
products and material - ANSWERSThird-Party Logistics (3PL)
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. - ANSWERSSupply Chain Operations Reference model
(SCOR)
Initiation, Planning, Execution and Closure. - ANSWERSProject Life Cycle Phases
A plan for produced in each time period such as production, staffing, inventory, etc.
, 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. - ANSWERSMaster Production
Schedule (MPS)
The meaning of quality as defined by the customer. - ANSWERSTotal Quality
Management (TQM)
network diagramming notation that places activities in the nodes and arrows to signify
precedence relationships - ANSWERSactivity-on-node
provides users with information on services and products and provides an opportunity
for suppliers to advertise - ANSWERSadvertising revenue model
companies receive a referral fee for directing business to an affiliate -
ANSWERSaffiliate revenue model
includes the budgeted levels of finished products, inventory, backlogs, workforce size,
and aggregate production rate needed to support the marketing plan -
ANSWERSaggregate plan
computer software packages for designing process layouts - ANSWERSALDEP and
CRAFT
the amount of time the analyst allows for personal time, fatigue, and unavoidable delays
- ANSWERSallowance factor
brings work to the worker rather than the worker to the workplace -
ANSWERSalternative workplace
inventory built in anticipation of future demand - ANSWERSanticipation inventory
sets up and runs ERP systems - ANSWERSapplication service provider (ASP)
costs incurred in the process of uncovering defects - ANSWERSappraisal costs
produces standard components that can be combined to customer specifications -
ANSWERSassemble-to-order strategy
causes that can be identified and eliminated - ANSWERSassignable causes of variation
a method using telephone models to send digital orders to suppliers -
ANSWERSautomated order entry system
unfilled customer orders - ANSWERSback orders