Production administration

The pipelinelike movement of the materials and information needed to produce a good or service. Triple bottom line strategy. Efficiency. Product-service. Supply chain network.

A strategy that meets the needs of shareholders and employees and that preserves the environment. Triple bottom line strategy. Lean manufacturing. Six Sigma quality. Total quality management.

The processes needed to determine the set of future actions required to operate an existing supply chain. Efficiency. Value. Planning. Sourcing.

The selection of suppliers. Value. Efficiency. Planning. Sourcing.

A type of process where a major product is produced or a service provided. Returning. Making. Delivery. Planning.

A type of process that moves products to warehouses or customers. Sourcing. Returning. Delivery. Making.

Processes that involve the receiving of worn-out, defective, and excess products back from customers and support for customers who have problems. Returning. Sourcing. Making. Delivery.

A type of business where the major product is intangible, meaning it cannot be weighed or measured. Sourcing. Delivery. Making. Service.

Refers to when a company builds service activities into its product offerings. Product-service bundling. Lean manufacturing. Six Sigma quality. Triple bottom line strategy.

Means doing something at the lowest possible cost. Planning. Efficiency. Making. Effectiveness.

Means doing the right things to create the most value for the company. efficiency. Effectiveness. Planning. Making.

Abstractly defined as quality divided by price. Value. Planning. Making. Efficiency.

A philosophy that aggressively seeks to eliminate causes of production defects. Total quality management. Service science management and engineering. Lean manufacturing. Product-service bundling.

An approach that seeks to make revolutionary changes as opposed to evolutionary changes (which is advocated by total quality management). Business process reengineering. Service science management and engineering. Lean manufacturing. Product-service bundling.

An approach that combines TQM and JIT. Lean manufacturing. Product-service bundling. Business process reengineering. Service science management and engineering.

Tools that are taught to managers in “Green and Black Belt Programs.”. Six Sigma quality. Service science management and engineering. Product-service bundling. Business process reengineering.

An approach to improving business processes that seeks to make revolutionary changes as opposed to evolutionary (small) changes. Business process reengineering. Service science management and engineering. Lean manufacturing. Product-service bundling.

An organization capable of manufacturing or purchasing all the components needed to produce a finished product or device. Contract manufacturer. Core competency. Planning, concept development, system-level design, detail design, testing, production ramp-up. Net present value.

The one thing that a company can do better than its competitors. Contract manufacturer. Core competency. Planning, concept development, system-level design, detail design, testing, production ramp-up. Net present value.

The six phases of the product development process. Contract manufacturer. Core competency. Planning, concept development, system-level design, detail design, testing, production ramp-up. Net present value.

A useful tool for the economic analysis of a product development project. Contract manufacturer. Core competency. Planning, concept development, system-level design, detail design, testing, production ramp-up. Net present value.

An approach that uses interfunctional teams to get input from the customer in design specification. Net present value. Quality function development. House of quality. Design for manufacturing and assembly.

A matrix of information that helps a team translate customer requirements into operating or engineering goals. House of quality. Design for manufacturing and assembly. Ecodesign. Net present value.

The greatest improvements from this arise from simplification of the product by reducing the number of separate parts. Ecodesign. Contract manufacturer. Design for manufacturing and assembly. Quality function development.

The incorporation of environmental considerations into the design and development of products or services. Ecodesign. Design for manufacturing and assembly. Core competency. Net present value.

The level of capacity for which a process was designed and at which it operates at minimum cost. Best operating level. Economies of scale. Focused factory. Economies of scope.

The concept that relates to gaining efficiency through the full utilization of dedicated resources, such as people and equipment. Best operating level. Economies of scale. Focused factory. Economies of scope.

A facility that limits its production to a single product or a set of very similar products. Best operating level. Economies of scale. Focused factory. Economies of scope.

The ability to serve more customers than expected. Best operating level. Economies of scale. Capacity cushion. 70 percent.

In a service process such as the checkout counter in a discount store, what is a good target percent for capacity utilization?. Best operating level. Economies of scale. Capacity cushion. 70 percent.

The line that shows the relationship between the time to produce a unit and the cumulative number of units produced. Learning curve. Individual learning. Organizational learning. A straight line.

Improvement that derives from people repeating a process and gaining skill or efficiency. Learning curve. Individual learning. Organizational learning. A straight line.

Improvement that comes from changes in administration, equipment, and product design. Learning curve. Individual learning. Organizational learning. A straight line.

The resulting plot of a learning curve when logarithmic scales are used. Learning curve. Individual learning. Organizational learning. A straight line.

Systems that have this characteristic usually have near-zero learning. Learning curve. Individual learning. Organizational learning. Highly automated systems.

This is a part of an organization that takes inputs and transforms them into outputs. A process. Utilization. Starving. Blocking.

This is the ratio of the time that a resource is activated relative to the time it is available for use. A process. Utilization. Starving. Blocking.

This is when one or more activities stop because of a lack of work. A process. Utilization. Starving. Blocking.

This is when an activity stops because there is no place to put the work that was just completed. A process. Utilization. Starving. Blocking.

This is a step in a process that is the slowest compared to the other steps. This step limits the capacity of the process. Bottleneck. Make-to-stock versus make-to-order. Pacing. Benchmarking.

What is the difference between McDonald’s old and current processes?. Bottleneck. Make-to-stock versus make-to-order. Pacing. Benchmarking.

This refers to the fixed timing of the movement of items through a process. Bottleneck. Make-to-stock versus make-to-order. Pacing. Benchmarking.

This is when one company compares itself to another relative to operations performance. Bottleneck. Make-to-stock versus make-to-order. Pacing. Benchmarking.

The relationship between time and units in a process is called this. Flow time. Little's law. Inventory = Throughput rate × Flow time. Process is operating in steady state.

What is the mathematical relationship between time and units in a process?. Flow time. Little's law. Inventory = Throughput rate × Flow time. Process is operating in steady state.

This is the time it takes a unit to travel through the process from beginning to end. It includes time waiting in queues and buffers. Flow time. Little's law. Inventory = Throughput rate × Flow time. Process is operating in steady state.

What is the major assumption about how a process is operating for Little’s law to be valid?. Flow time. Little's law. Inventory = Throughput rate × Flow time. Process is operating in steady state.

What is the double-edged sword of job design?. Specialization. Job enrichment and enlargement. Time study, work sampling, predetermined motion-time data systems, elemental data. Process is operating in steady state.

This is when a job is increased vertically or horizontally. Specialization. Job enrichment and enlargement. Time study, work sampling, predetermined motion-time data systems, elemental data. Process is operating in steady state.

What are the four basic work measurement techniques?. Specialization. Job enrichment and enlargement. Time study, work sampling, predetermined motion-time data systems, elemental data. Process is operating in steady state.

A firm that makes predesigned products directly to fill customer orders has this type of production environment. Make-to-order. Customer order decoupling point. Engineer-to-order. Manufacturing cell.

A point where inventory is positioned to allow the production process to operate independently of the customer order delivery process. Make-to-order. Customer order decoupling point. Engineer-to-order. Manufacturing cell.

A firm that designs and builds products from scratch according to customer specifications would have this type of production environment. Product–process matrix. Customer order decoupling point. Engineer-to-order. Manufacturing cell.

This is a production layout where similar products are made. Typically, it is scheduled on an as-needed basis in response to current customer demand. Make-to-order. Customer order decoupling point. Engineer-to-order. Manufacturing cell.

The relationship between how different layout structures are best suited depending on volume and product variety characteristics is depicted on this type of graph. Make-to-order. Customer order decoupling point. Engineer-to-order. Product–process matrix.

One or more activities that transform inputs into outputs. Efficiency. Value. Process. Sourcing.

When a firm builds service activities into its product offerings to create additional value for the customer. Product-service bundling. Lean manufacturing. Six Sigma quality. Triple bottom line strategy.

Managing the entire organization so it excels in all dimensions of products and services important to the customer. Business process reengineering. Total quality management. Lean manufacturing. Product-service bundling.

A program to apply the latest concepts in information technology to improve service productivity. Business process reengineering. Service science management and engineering. Lean manufacturing. Product-service bundling.

A statistical term to describe the quality goal of no more than 3.4 defects out of every million units. Also refers to a quality improvement philosophy and program. Learning curve. Mass customization. Six sigma. Electronic commerce.

The ability to produce a unique product exactly to a particular customer’s requirements. Learning curve. Mass customization. Six sigma. Electronic commerce.

The use of the Internet as an essential element of business activity. Sustainability. Mass customization. Triple bottom line. Electronic commerce.

The ability to meet current resource needs without compromising the ability of future generations to meet their needs. Sustainability. Mass customization. Triple bottom line. Electronic commerce.

A business strategy that includes social, economic, and environmental criteria. Sustainability. Business analytics. Triple bottom line. Electronic commerce.

The use of current business data to solve business problems using mathematical analysis. Sustainability. Business analytics. Triple bottom line. Electronic commerce.

A ratio of the actual output of a process relative to some standard. Also, being “efficient” means doing something at the lowest possible cost. Efficiency. Business analytics. Effectiveness. Value.

Doing the things that will create the most value for the customer. Efficiency. Business analytics. Effectiveness. Value.

The attractiveness of a product relative to its price. Efficiency. Benchmarking. Effectiveness. Value.

When one company studies the processes of another company to identify best practices. Efficiency. Benchmarking. Effectiveness. Value.

The ability to meet current resource needs without compromising the ability of future generations to meet their needs. Sustainability. Triple bottom line. Operations and supply chain strategy. Operations effectiveness.

A business strategy that includes social, economic, and environmental criteria. Sustainability. Triple bottom line. Operations and supply chain strategy. Operations effectiveness.

The setting of broad policies and plans that will guide the use of the resources needed by the firm to implement its corporate strategy. Sustainability. Triple bottom line. Operations and supply chain strategy. Operations effectiveness.

Performing activities in a manner that best implements strategic priorities at minimum cost. Sustainability. Triple bottom line. Operations and supply chain strategy. Operations effectiveness.

When a firm seeks to match what a competitor is doing by adding new features, services, or technologies to existing activities. This often creates problems if tradeoffs need to be made. Efficiency. Benchmarking. Productivity. Straddling.

A measure of how well resources are used. According to Goldratt’s definition, all the actions that bring a company closer to its goals. Efficiency. Benchmarking. Productivity. Straddling.

Finding the overall capacity level of capital-intensive resources to best support the firm’s long-term strategy. Strategic capacity planning. Capacity. Best operating level. Capacity utilization rate.

The output that a system is capable of achieving over a period of time. Strategic capacity planning. Capacity. Best operating level. Capacity utilization rate.

The level of capacity for which the process was designed and the volume of output at which average unit cost is minimized. Strategic capacity planning. Capacity. Best operating level. Capacity utilization rate.

Measure of how close the firm’s current output rate is to its best operating level (percent). Strategic capacity planning. Capacity. Best operating level. Capacity utilization rate.

Idea that as the plant gets larger and volume increases, the average cost per unit drops. At some point, the plant gets too large and cost per unit increases. Economies of scale. Focused factory. Plant within a plant. Economies of scope.

A facility designed around a limited set of production objectives. Typically, the focus would relate to a specific product or product group. Economies of scale. Focused factory. Plant within a plant. Economies of scope.

An area in a larger facility that is dedicated to a specific production objective (for example, product group). This can be used to operationalize the focused factory concept. Economies of scale. Focused factor. Plant within a plant. Economies of scope.

When multiple products can be produced at lower cost in combination than they can be separately. Economies of scale. Focused factor. Plant within a plant. Economies of scope.

Capacity in excess of expected demand. Economies of scale. Focused factor. Plant within a plant. Capacity cushion.

A line displaying the relationship between unit production time and the cumulative number of units produced. Learning curve. Individual learning. Organizational learning. A straight line.

Improvement that results when people repeat a process and gain skill or efficiency from their own experience. Learning curve. Individual learning. Organizational learning. A straight line.

Improvement that comes both from experience and from changes in administration, equipment, and product design. Learning curve. Individual learning. Organizational learning. A straight line.