WGU C215 Operations Management Questions And Answers (Verified)

WGU C215 Operations Management Questions And Answers (Verified) 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 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 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 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 Coordinates and manages all the activities of the supply chain Supply chain management The speed at which product moves through a pipeline from the manufacturer to the customer Supply chain velocity The speed at which product moves through a pipeline from manufacturer to the customer. Support Serviecs 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. Value for price paid