C215 WGU

1. Internal resource constraint 2. Capacity-con- strained 3. Customer Re- lationship Man- agement (CRM) A regular bottleneck Bottleneck caused by inefficient usage Software solutions that enable the firm to collect cus- tomer-specific data 4. allowance factor the amount of time the analyst allows for personal time, fatigue, and unavoidable delays 5. appraisal costs Costs incurred in the process of uncovering defects 6. common Random causes that cannot be identified 7. consumer's risk The chance of accepting a lot that contains a greater number of defects than the LTPD limit. 8. Control Chart A graph that shows whether a sample of data falls within the common or normal range of variation 9. Control charts Charts used to evaluate whether a process is operating within set expectations. 10. Causal Models based on the assumption that the variable being forecast is related to other variables in the environment 11. Checklist A list of common defects and the number of observed occurrences of these defects. 12. Economic Feasi- bility The cost of the job should be less than the value it adds 13. Cycles Data patterns created by economic fluctuations 14. decision tree Modeling tool used to evaluate independent decisions that must be made in sequence 15. Delphi Method approach to forecasting in which a forecast is the product of a consensus among a group of experts 16. correlation coef- ficient formula 17. Cross-function- al Decision Making 18. Backward sched- uling Statistic that measures the direction and strength of the linear relationship between two variables the coordinated interaction and decision making that oc- cur among the different functions of the organization scheduling backward from a due date 19. Balance Delay The amount by which the line efficiency falls short of 100% 20. Behavioral Fea- sibility 21. Descriptive Sta- tistics degree to which the job is intrinsically satisfying to the employee Statistics used to describe quality characteristics and re- lationships 22. Design Capacity The maximum output rate that can be achieved by a facility under ideal conditions. 23. Customer Re- lationship Man- agement (CRM) 24. elemental time data 25. Frequency of Oc- currence software solutions that enable the firm to collect cus- tomer-specific data establish standards based on previously completed time studies, stored in an organization's database how often the work element must be done each cycle 26. Job Design Specifies the contents of the job. 27. job enlargement broadening the types of tasks performed in a job by the worker 28. job enrichment A vertical expansion of the job through increased worker responsibility 29. job rotation enlarging jobs by moving employees among several dif- ferent jobs 30. Mean observed time The average of the observation times for each of the work elements 31. Methods Analy- sis process concerned with the detailed process for doing a particular job 32. Normal Time the time necessary to complete an activity under normal conditions 33. Performance rat- ing factor a subjective estimate of a worker's pace relative to a normal work pace 34. Predetermined time data published database of elemental time data used for es- tablishing standard times 35. problem-solving team Small groups of employees and supervisors trained in problem-solving techniques who meet to identify, analyze, and propose solutions to workplace problems 36. 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 37. Technical feasi- bility the job must be physically and mentally doable 38. work measure- ment Determining how long it should take to do a job. 39. work sampling A technique for estimating the proportion of time a worker spends on a particular activity 40. ABC Classifica- tion a method for determining level of control and frequency of review of inventory items 41. Anticipation In- ventory Inventory that is held in anticipation of customer demand 42. capital costs The higher of the cost of capital or the opportunity cost for the company 43. Components parts 44. Continuous Re- view System updates inventory balances after each inventory transac- tion 45. cycle counting a physical inventory-taking technique in which inventory is counted on a frequent basis rather than once or twice a year 46. Distribution in- ventory Inventory, usually spare parts and finished goods, located in the distribution system (e.g., in warehouses, in transit between warehouses and the consumer) 47. Economic Order Quantity (EOQ) An optimizing method used for determining order quantity and reorder points 48. Economic Pro- duction Quantity (EPQ) A model that allows for incremental product delivery 49. fixed order quan- tity Specifies the number of units to order whenever an order is placed. 50. Fluctuation In- ventory Inventory being carried as a cushion to protect against possible demand variation. 51. holding costs the costs of holding or "carrying" inventory over time 52. Inventory Turnover a measure of inventory policy effectiveness 53. lead time time interval between ordering and receiving the order 54. lost sale occurs when the customer is unwilling to wait and pur- chases the item elsewhere 55. Lot-for-lot a lot-sizing technique that generates exactly what is re- quired to meet the plan 56. lot-size invento- ry 57. maintenance, re- pair, and operat- ing (MRO) inven- tory a result of the quantity ordered or produced Items used in support of manufacturing and maintenance 58. Min-max system Places a replenishment order when the on-hand invento- ry falls below the predetermined minimum level. An order is placed to bring the inventory back up to the maximum inventory level. 59. order-cycle ser- vice level The probability that demand during lead time will not exceed on-hand inventory 60. ordering costs the costs of placing an order and receiving goods 61. Order n periods The order quantity is determined by total demand for the item for the next n periods. 62. Pareto's Law tImplies that about 20 percent of the inventory items will account for about 80 percent of the inventory value 63. percentage of dollar volume shipped on schedule 64. percentage of line items shipped on schedule A customer service measure appropriate when customer orders vary in value a customer service measure appropriate when customer orders vary in number of line items ordered 65. percentage of or- ders shipped on schedule 66. periodic count- ing 67. Periodic Review System 68. Perpetual Inven- tory Method 69. Quantity Dis- count Model a customer service measure appropriate for use when orders have similar value a physical inventory is taken periodically, usually annually An inventory system that is used to manage independent demand inventory where the inventory level for an item is checked at regular intervals and restocked to some predetermined level. Provides an up-to-date inventory balance modifies the EOQ process to consider cases where quan- tity discounts are available 70. raw materials Purchased items or extracted materials transformed into components or products 71. Risk costs Include obsolescence, damage or deterioration, theft, in- surance, and taxes associated with the volume of inven- tory held. 72. shortage costs Costs resulting when demand exceeds the supply of in- ventory; often unrealized profit per unit 73. single period model 74. Speculative in- ventory 75. target inventory level 76. Transportation inventory Designed for use with products that are highly perishable Used to protect against some future event Used in determining order quantity in the periodic review system. Target inventory less on-hand inventory equals order quantity. Inventory that is moving from one link in the supply chain to another. 77. flow operations Processes designed to handle high-volume, standard products. 78. Gantt Chart Planning and control chart designed to graphically show workloads or to monitor job progress 79. Global Priority rule 80. input/output control 81. Internal resource Constraint Makes a priority decision based on information that in- cludes the remaining work centers a job must pass through a technique for monitoring the flow of jobs between work centers a regular bottleneck 82. job flow time time from when work starts on a job until all required work is completed 83. Job lateness Measures whether the job is done ahead of, on, or behind schedule 84. job tardiness measures how long after the due date the job is complet- ed 85. Johnson's Rule A technique for minimizing makespan in a two-stage, unidirectional process 86. load chart A chart that visually shows the workload relative to the capacity at a resource 87. local priority rule Makes a priority decision based on jobs currently at that work center. 88. Makespan The amount of time it takes to finish a batch of jobs 89. Market Con- straint 90. Nonbottleneck demand is less than capacity 91. Operation se- quencing 92. Optimized Pro- duction Technol- ogy (OPT) what happens when capacity is greater than demand placed on resource A short-term plan of actual jobs to be run in each work center based on available capacity and priorities. a technique used to schedule bottleneck systems 93. policy constraint the condition that results when a specific policy dictates the rate of production 94. Priority rule Determines the priority of jobs at a work center 95. process batch The quantity produced at a resource before the resource is switched over to produce another product 96. progress chart a chart that visually shows the planned schedule com- pared to actual performance 97. Routing Provides information about the operations to be per- formed, their sequence, the work centers, and the time standards 98. Slack The amount of time a job can be delayed and still be finished by its due date 99. Theory of Con- straints A management philosophy that extends the concepts of OPT 100. Throughput The quantity of finished goods that can be sold 101. Transfer batch The quantity of items moved at the same time from one resource to the next 102. Aggregate plan Includes the budgeted levels of finished products, inven- tory, backlogs, workforce size, and aggregate production rate needed to support the marketing plan 103. Capacity-based options 104. chase aggregate plan 105. demand-based options 106. duration of the change A group of options that allow the firm to change its current operating capacity a planning approach that varies production to meet de- mand each period A group of options that respond to demand fluctuations through the use of inventory or back orders, or by shifting the demand pattern. the expected length of time the different capacity level is needed 107. engineering plan Identifies new products or modifications to existing prod- ucts that are needed to support the marketing plan 108. Financial plan Identifies the sources and uses of funds; projects cash flows, profits, return on investment; and provides budgets in support of the strategic business plan 109. finished goods inventory manufactured items that are completed and ready for sale 110. hiring and firing long-term option for increasing or decreasing capacity 111. hybrid aggregate plan 112. level aggregate plan 113. magnitude of the change a planning approach that uses a combination of level and chase approaches while developing the aggregate plan A planning approach that produces the same quantity each time period. Inventory and back orders are used to absorb demand fluctuations. The relative size of the change needed 114. Marketing plan Identifies the markets to be served, desired levels of customer service, product competitive advantage, profit margins, and the market share needed to achieve the objectives of the strategic business plan 115. Master Produc- tion Schedule 116. Point of depar- ture 117. Sales and Opera- tions Planning The anticipated production schedule for the company ex- pressed in specific configurations, quantities, and dates the percentage of normal capacity the company is cur- rently using The process that brings together all the functional busi- ness plans (marketing, operations, engineering, and fi- nance) into one integrated plan 118. shifting demand a marketing strategy that attempts to shift demand from peak periods to nonpeak periods to smooth out the de- mand pattern 119. Strategic busi- ness plan 120. yield manage- ment A statement of long-range strategy and revenue, cost, and profit objectives Allocates scarce resources to maximize yield 121. Action bucket current time period 122. Action notices Output from an MRP system that identifies the need for an action to be taken. 123. Application Ser- vice Provider (ASP) 124. Bill of Materials (BOM) 125. Capacity Re- quirements Plan- ning (CRP) 126. Closed-loop MRP sets up and runs ERP systems Lists all the subassemblies, component parts, and raw materials that go into an end item and shows the usage quantity of each required Determines the labor and machine resources needed to fill the open and planned orders generated by the MRP An MRP system that includes production planning, mas- ter production scheduling, and capacity requirements planning 127. Dependent de- mand demand for items that are subassemblies or component parts to be used in the production of finished goods 128. end item A product sold as a completed item or repair part. 129. Explosion process 130. gross require- ments 131. Indented Bill of Material 132. Manufacturing resource planning 133. Material Require- ments Planning (MRP) 134. Open Shop or- ders Calculates the demand for the children of a parent by mul- tiplying the parent requirements by the children's usage as specified in the BOM. The total-period demand for an item Shows the highest-level "parents" closest to the left mar- gin and the "children" indented toward the right. Subse- quent levels are indented farther to the right A method for the effective planning and integration of all internal resources a planning system that schedules the precise quantity of materials needed to make the product released manufacturing orders 135. Parent item Item produced from one or more components 136. Planned orders Suggested order quantities, release dates, and due dates created by an MRP system 137. Planning factors Factors include the lot size rule, replenishment lead times, and safety stock requirements. 138. Product Struc- ture Tree 139. Projected avail- able A visual depiction of the requirements in a bill of materials, where all components are listed by levels Expected inventory on hand at the beginning of each time period 140. Scheduled re- ceipt An open order that has an assigned due date 141. SCM software Designed to improve decision making in the supply chain 142. Supply chain in- telligence Enables strategic decision making along the supply chain 143. time-phased expressing future demand, supply, and inventories by time period 144. Activi- ty-on-nodes 145. Beta probability distribution network diagramming notation that places activities in the nodes and arrows to signify precedence relationships Typically represents project activities. 146. Crashing A technique used to shorten the schedule duration for the least incremental cost by adding resources. 147. Critical chain aproach Focus on the final due date that is based on the theory of constraints 148. Critical path the sequence of activities that determine the earliest date by which the project can be completed 149. Critical Path Method 150. deterministic time estimate 151. most likely time estimate 152. optimistic time estimate Network planning technique, with deterministic times, used to determine a project's planned completion date and identify the project's critical path assumption that the activity duration is known with cer- tainty the normal time that the activity is expected to take the shortest time period in which the activity can be com- pleted 153. 153. pessimistic time estimate 154. Precedence Re- lationship 155. probabilistic time estimate 156. Program Evalu- ation and Re- view Technique (PERT) the longest time period in which the activity will be com- pleted a relationship that determines a sequence for undertaking activities; it specifies that one activity cannot start until a preceding activity has been completed process that uses optimistic, most likely, and pessimistic time estimates Network planning technique used to determine a project's planned completion date and identify the project's critical path 157. Project Endeavor with a specific objective, multiple activities, and defined precedence relationships, to be completed in a specified time period 158. Project Activities specific tasks that must be completed and that require resources 159. Project buffer Safety time placed at the end of the critical path