Assessment Prep Guide & Terminologies Combo Study
Guide 2026”2027 LATEST UPDATE
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." -
correct answer -Process 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. - correct answer -Six Sigma
The theoretical maximum output of a system in a given period under ideal conditions. - correct answer
-Design Capacity
The capacity a firm expects to achieve given its current operating constraints. - correct answer -
Effective Capacity
proximity to customers, transportation, source of labor, community attitude, proximity to suppliers, and
many other factors. - correct answer -Location Analysis
A type of process used to produce a large volume of a standardized product. - correct answer -Line
Processes
A type of process used to produce a small quantity of products in groups or batches based on customer
orders or specifications. - correct answer -Batch Processes
A type of process used to make a one-at-a-time product exactly to customer specifications. - correct
answer -Project Processes
A type of process that operates continually to produce a high volume of a fully standardized product. -
correct answer -Continuous Processes
,Longest task in the process. - correct answer -Bottleneck
A type of automated system that combines the flexibility of intermittent operations with the efficiency
of continuous operations. - correct answer -Flexible Manufacturing System (FMS)
A technique for monitoring the flow of jobs between work centers. - correct answer -Output/Input
Control
The net increase created during the transformation of inputs into final outputs. - correct answer -
Value-Added
Layouts that combine characteristics of process and product layouts. - correct answer -Hybrid Layouts
Table that reflects opinions of managers with regard to the importance of having any two departments
close together. - correct answer -Relationship Chart (REL)
The shortest distance between two locations using north-south and east-west movements. - correct
answer -Rectilinear Distance
Table that gives the number of trips or units of product moved between any pair of departments. -
correct answer -From-To Matrix
Schematic showing the placement of resources in a facility. - correct answer -Block Plan
The average of the observation times for each of the work elements. - correct answer -Mean Observed
Times
The mean observed time multiplied by the performance rating factor by the frequency of occurrence. -
correct answer -Normal 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. - correct answer -Standard
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. - correct answer -Just-in-Time
(JIT)
A card that specifies the exact quantity of product that needs to be produced. - correct answer -
Kanban card
A philosophy of neverending improvement. - correct answer -Continuous Improvement
Supplies materials or services directly to the processing facility. - correct answer -Tier One Suppliers
Directly supplies materials or services to a tier one supplier in the supply chain. - correct answer -Tier
Two Suppliers
Directly supplies materials or services to a tier two supplier in the supply chain. - correct answer -Tier
Three Suppliers
Management of the flow of materials from suppliers to customers in order to reduce overall cost and
increase responsiveness to customers. - correct answer -Supply Chain Management (SCM)
Determines the labor and machine resources needed to fill the open and planned orders generated by
the MRP. - correct answer -Capacity Requirements Planning (CRP)
A system that uses the MRP, inventory record data, and BOM to calculate material requirements. -
correct answer -Material Requirements Planning (MRP)
, Large software programs used for planning and coordinating all resources throughout the entire
enterprise. - correct answer -Enterprise Resource Planning (ERP)
Includes the budgeted levels of finished products, inventory, backlogs, workforce size, and aggregate
production rate needed to support the marketing plan. - correct answer -Aggregate 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 - correct answer -
Third-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. - correct answer
-Supply Chain Operations Reference model (SCOR)
Initiation, Planning, Execution and Closure. - correct answer -Project 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. - correct answer -Master Production Schedule (MPS)
The meaning of quality as defined by the customer. - correct answer -Total Quality Management
(TQM)
network diagramming notation that places activities in the nodes and arrows to signify precedence
relationships - correct answer -activity-on-node
provides users with information on services and products and provides an opportunity for suppliers to
advertise - correct answer -advertising revenue model