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planning characteristics (list) |
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1) systematic; 2) involves everyone |
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system in which responsibility for planning lies with the organization's highest level |
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system in which responsibility for planning lies with workers and lower levels of the organization |
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reasons planning is necessary (list) |
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1) pressure to reduce cycle times; 2) increased organization complexity; 3) increased global competition; 4) impact on other mgmt functions; |
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cycle time reduction (CTR) |
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length of time required to complete a process and to be ready to begin anew |
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essentially, having faster inventory turns; grow successful through speed |
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benefits of planning (list) |
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1) coordination of effort; 2) preparation for change; 3) development of performance standards; 4) development of managers; |
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coordinating efforts (e.g.) |
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our firm gains competitive advantage based on a least-cost approach; thus our efforts are aimed at increasing productivity |
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preparing for change (e.g.) |
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we anticipate another oil embargo. thus we're planning to produce smaller, gas-efficient cars |
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developing performance standards (e.g.) |
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we plan to develop cars that get 40-50 mpg on the highway |
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developing managers (e.g.) |
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These performance standards will be difficult to reach. Let's make sure our managers are adequately trained... |
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in management terms, expected behaviors as defined by plans |
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range of activities covered by a plan |
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the period considered by a plan |
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the specificity of a plan |
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comprehensive, long-term, and relatively general planning. focuses on broad, enduring issues to increase the firm's effectiveness |
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a focused, short-term, and specific form of planning that translates the broad concepts of the strategic plan into clear objectives for the short term. |
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on the continuum between strategic and operational planning processes, a more specific form of panning than strategic planning |
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plans that have a clear time frame for their utility |
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plans that have ongoing meaning and application to an organization |
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Steps in planning process (list) |
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1) assess current conditions; 2) determine objectives; 3) identify actions required; 4) allocation resources; 5) assign responsibilities for implementation; 6) control the planning decision |
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future states or conditions that contribute to the fulfillment of the organization's mission |
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a specification of desired future conditions |
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conflicts among objectives |
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underlying priorities that determine planning objectives and decisions |
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Juran's planning objectives (list, 1-5) |
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1. build awareness to opportunities for improving quality 2. set specific goals for quality improvement 3. organize resources to meet the goals 4. provide worker training 5. conduct projects to solve quality problems |
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Juran's planning objectives (list, 6-10) |
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6. report on progress toward goals 7. give employees recognition 8. communicate results 9. keep score 10. institutionalize process of CI |
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measures of service quality objectives (list, def., 1-5) |
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1. access: availability to customers 2. communication: clear descriptions to customers; answer questions 3. competence: proven expertise at task 4. courtesy: friendliness, respect for customer 5. credibility: believability, meeting promises |
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measures of service quality objectives (list, def., 6-10) |
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6. reliability: error reduction 7. responsiveness: speed at meeting customer requests 8. security: maintaining customer safety and privacy 9. tangibles: physical appearance of workplace 10. knowing the customer: demonstrated capacity to listen to, respond to, and satisfy customer |
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specific, prescribed means to achieve the objective(s) |
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a prediction of future events based on past and current data |
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financial, physical, human, time, or other assets of an organization |
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"Total Factor Productivity" (TFP) |
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a measure of a firm's effectiveness in using its resources to create product values |
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a predetermined amount of resources linked to an activity |
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provides for the possibility that actual output deviates from planned output |
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preparation of a budget for a fixed period with periodic updating at fixed intervals |
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the assignment of people and responsibilities for achieving a plan |
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the legitimate use or form of power stemming from the position, not from the person |
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the process of convincing workers of the value of a plan prior to implementation |
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written statements that reflect a plan's basic objectives and provide guidelines for selecting actions to achieve the objectives |
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a standard procedure providing a set of instructions to implement a policy |
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the process of corrective actions based on measurement |
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the activity of 1) determining customer needs and 2) developing products/processes required to meet those needs |
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plan, do, check, act (PDCA) |
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four-step cycle: 1) plan quality improvement; 2) workers produce small version/batch of of product/procedure; 3) workers check results of pilot program; 4) workers implement complete process |
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the period between the time a product is first considered and the time it is sold to the customer |
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fundamental rethinking and radical redesign... |
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a key concept in cycle time reduction that states that only 3 percent of the elapsed time for a process is actually need to complete the activity |
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American Customer Satisfaction Index (ACSI) |
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... looks at seven sectors of economy: manufacturing nondurables; manufacturing durables; transportation, communications, and utilities; retail; finance and insurance; services; and public administration and government |
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methods to control implementation of plan |
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pareto charts, fishbone charts, flow charts, run charts |
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