Term
|
Definition
Medium and long-term forecasts that are used
to make decisions related to design and plans for meeting demand. |
|
|
Term
|
Definition
Short-term forecasts used as input for making
day-to-day decisions related to meeting demand. |
|
|
Term
|
Definition
Requirements for a product or service caused
by the demand for other products or services. This type of internal
demand does not need a forecast, but can be calculated based on the
demand for the other products or services. |
|
|
Term
|
Definition
Demand that cannot be directly derived from
the demand for other products. |
|
|
Term
|
Definition
A type of forecast in which data relating to past
demand are used to predict future demand. |
|
|
Term
|
Definition
A business strategy that includes social, economic,
and environmental criteria. |
|
|
Term
| Operations and supply chain strategy |
|
Definition
Setting broad policies and
plans for using the resources of a firm to best support the firm’s
long-term competitive strategy. |
|
|
Term
|
Definition
Occurs 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 certain trade-offs need to
be made. |
|
|
Term
|
Definition
A dimension that differentiates the products or services
of one firm from those of another. |
|
|
Term
|
Definition
A dimension used to screen a product or service as
a candidate for purchase. |
|
|
Term
|
Definition
A diagram that shows how a company’s strategy
is delivered through a set of supporting activities. |
|
|
Term
|
Definition
Skills that differentiate a manufacturing or service
firm from its competitors. |
|
|
Term
|
Definition
| A measure of how well resources are used. |
|
|
Term
|
Definition
An organization capable of manufacturing
and/or purchasing all the components needed to produce a finished
product or device. |
|
|
Term
|
Definition
The one thing that a firm can do better than its
competitors. The goal is to have a core competency that yields a
long-term competitive advantage to the company. |
|
|
Term
|
Definition
Emphasizes cross-functional integration and
concurrent development of a product and its associated processes. |
|
|
Term
| Quality function deployment (QFD) |
|
Definition
A process that helps a company
determine the product characteristics important to the consumer
and to evaluate its own product in relation to others. |
|
|
Term
|
Definition
A matrix that helps a product design team translate
customer requirements into operating and engineering goals. |
|
|
Term
| Value analysis/value engineering (VA/VE) |
|
Definition
Analysis with the purpose
of simplifying products and processes by achieving equivalent
or better performance at a lower cost. |
|
|
Term
|
Definition
T he incorporation of environmental considerations into
the design and development of products or services. These concerns
relate to the entire life cycle including materials, manufacturing,
distribution and the eventual disposal of waste. |
|
|
Term
| Operations and supply chain management (OSCM) |
|
Definition
Design, operation,
and improvement of the systems that create and deliver the
firm’s primary products and services. |
|
|
Term
|
Definition
service activities to support a firm’s product
offerings. |
|
|
Term
|
Definition
| Doing something at the lowest possible cost. |
|
|
Term
|
Definition
Doing the right things to create the most value for
the company. |
|
|
Term
|
Definition
Ratio of quality to price paid. Competitive “happiness” is
being able to increase quality and reduce price while maintaining
or improving profit margins. (This is a way that operations can
directly increase customer retention and gain market share.) |
|
|
Term
|
Definition
| Producing products to order in lot sizes of one. |
|
|
Term
|
Definition
| The ability to maintain balance in a system. |
|
|
Term
|
Definition
Relates to the economic, employee, and environmental
impact of the firm’s strategy. |
|
|
Term
| Strategic capacity planning |
|
Definition
Determining the overall capacity level
of capital-intensive resources that best supports the company’s
long-range competitive strategy. |
|
|
Term
|
Definition
The amount of output that a system is capable of achieving
over a specific period of time. |
|
|
Term
|
Definition
The level of capacity for which the process
was designed and the volume of output at which average unit cost
is minimized. |
|
|
Term
| Capacity utilization rate |
|
Definition
Measures how close a firm is to its best
operating level. |
|
|
Term
|
Definition
The notion is that as a plant gets larger and
volume increases, the average cost per unit drops. |
|
|
Term
|
Definition
A facility with a fairly limited set of production
objectives. Typically the focus would relate to a specific product
or product group. |
|
|
Term
| Plant within a plant (PWP) |
|
Definition
A concept that can be used to operationalize
a focused factory by designating a specific area in a
larger plant. |
|
|
Term
|
Definition
Exist when multiple products can be produced
at a lower cost in combination than they can separately. |
|
|
Term
|
Definition
| Capacity in excess of expected demand. |
|
|
Term
|
Definition
A line displaying the relationship between unit production
time and the cumulative number of units produced. |
|
|
Term
|
Definition
Improvement that results when people repeat a
process and gain skill or efficiency from their own experience. |
|
|
Term
|
Definition
Improvement that comes both from experience
and from changes in administration, equipment, and product
design. |
|
|
Term
|
Definition
Any set of activities performed by an organization that
takes inputs and transforms them into outputs ideally of greater
value to the organization than the original inputs. |
|
|
Term
|
Definition
The average time between completions of successive
units in a process (this is the definition used in this book). The term
is sometimes used to mean the elapsed time between starting and
completing a job. |
|
|
Term
|
Definition
The ratio of the time that a resource is actually activated
relative to the time that it is available for use. |
|
|
Term
|
Definition
A storage area between stages where the output of a stage
is placed prior to being used in a downstream stage. Buffering
allows the stages to operate independently. |
|
|
Term
|
Definition
The activities in the stage must stop because there is no
place to deposit the item just completed. |
|
|
Term
|
Definition
| The activities in a stage must stop because there is no work. |
|
|
Term
|
Definition
A resource that limits the capacity or maximum output
of the process. |
|
|
Term
|
Definition
A process that is activated only in response to an
actual order. |
|
|
Term
|
Definition
A process that produces standard products that are
stored in finished goods inventory. The product is delivered quickly
to the customer from the finished goods inventory. |
|
|
Term
|
Definition
Combines the features of both make-to-order and make-tostock.
Typically, a generic product is made and stocked at some
point in the process. These generic units are customized in a final
process to meet actual orders. |
|
|
Term
|
Definition
Movement of items through a process is coordinated through
a timing mechanism. Most processes are not paced, but assembly
lines usually are paced. |
|
|
Term
|
Definition
The ratio of output to input. Taking the dollar value
of the output and dividing by the dollar value of the inputs usually
measures total factor productivity. Alternatively, partial factor productivity is measured based on an individual input and often is not
calculated using dollar values (an example would be units/person). |
|
|
Term
|
Definition
A ratio of the actual output of a process relative to some
standard. |
|
|
Term
|
Definition
| The time required to produce a batch of parts |
|
|
Term
|
Definition
The time required to prepare a machine to make a
particular item. |
|
|
Term
|
Definition
The sum of the setup time and run time for a batch
of parts that are run on a machine. |
|
|
Term
|
Definition
The average time that it takes a unit to move through an
entire process. Usually the term lead time is used to refer to the total
time that it takes a customer to receive an order (includes time to
process the order, throughput time, and delivery time). |
|
|
Term
|
Definition
The output rate that the process is expected to
produce over a period of time. |
|
|
Term
| Process velocity or throughput ratio |
|
Definition
The ratio of the total flow time
to the value-added time. |
|
|
Term
|
Definition
The time in which useful work is actually being
done on the unit. |
|
|
Term
| Total average value of inventory |
|
Definition
The total average investment in
raw material, work-in-process, and finished goods inventory. This
is valued at the cost to the firm. |
|
|
Term
|
Definition
The cost of goods sold divided by the total average
value of inventory. |
|
|
Term
|
Definition
The number of days of inventory of an item. If an
item were not replenished, this would be the numbers of days until
the firm would run out of the item (on average). Also, the inverse
of inventory turn expressed in days. |
|
|
Term
|
Definition
States a mathematical relationship between throughput
rate, flow time, and the amount of work-in-process inventory. Flow
time is equal to work-in-process divided by the throughput rate. |
|
|
Term
|
Definition
The function of specifying the work activities of an
individual or group in an organizational setting. |
|
|
Term
|
Definition
A workplace that fully supports the organization
without compromising future generations. |
|
|
Term
|
Definition
Simple, repetitive jobs are assigned to each
worker. |
|
|
Term
|
Definition
Specialized work is made more interesting by
giving the worker a greater variety of tasks or by getting a worker
involved in planning, organization, and inspection. |
|
|
Term
|
Definition
A philosophy that focuses on the interaction
between technology and the work group. The approach attempts to
develop jobs that adjust the production process technology to the
needs of the worker and work group. |
|
|
Term
|
Definition
Job analysis for the purpose of setting time
standards. |
|
|
Term
|
Definition
Separation of a job into measurable parts, with each element
timed individually. The individual times are then combined,
and allowances are added to calculate a standard time. |
|
|
Term
|
Definition
Analyzing a work activity by observing an activity
at random times. Statements about how time is spent during the
activity are made from these observations. |
|
|
Term
| Predetermined motion-time data systems (PMTS) |
|
Definition
Systems for
deriving a time for a job by summing data from tables of generic
movement times developed in the laboratory. |
|
|
Term
|
Definition
Used to derive a job time by summing times from a
database of similar combinations of movements. |
|
|
Term
|
Definition
The time that a normal operator would be expected to
take to complete a job without the consideration of allowances. |
|
|
Term
|
Definition
Calculated by taking the normal time and adding
allowances for personal needs, unavoidable work delays, and
worker fatigue. |
|
|
Term
|
Definition
| The time needed to respond to a customer order. |
|
|
Term
| Customer order decoupling point |
|
Definition
The place where inventory is
positioned to allow processes or entities in the supply chain to operate
independently. |
|
|
Term
|
Definition
A production environment where preassembled
components, subassemblies, and modules are put together in
response to a specific customer order. |
|
|
Term
|
Definition
Here the firm works with the customer to design
the product, which is then made from purchased materials, parts,
and components. |
|
|
Term
|
Definition
The attempt to achieve high customer service
with minimum levels of inventory investment. |
|
|
Term
|
Definition
The product, because of its sheer bulk or weight,
remains fixed in a location. Equipment is moved to the product
rather than vice versa. |
|
|
Term
|
Definition
A process structure suited for low-volume production
of a great variety of nonstandard products. Workcenters sometimes
are referred to as departments and are focused on a particular type
of operation |
|
|
Term
|
Definition
An area where simple items that are similar in
processing requirements are produced. |
|
|
Term
|
Definition
A process structure designed to make discrete parts.
Parts are moved through a set of specially designed workstations at
a controlled rate. |
|
|
Term
|
Definition
An often automated process that converts raw
materials into a finished product in one continuous process. |
|
|
Term
|
Definition
Shows the relationships between different
production units and how they are used depending on product volume
and the degree of product standardization. |
|
|
Term
| Systematic layout planning (SLP) |
|
Definition
A technique for solving process
layout problems when the use of numerical flow data between
departments is not practical. The technique uses an activity relationship
diagram that is adjusted by trial and error until a satisfactory
adjacency pattern is obtained. |
|
|
Term
|
Definition
A bundle of goods and services that is provided in
some environment. |
|
|
Term
| High and low degree of customer contact |
|
Definition
The physical presence of
the customer in the system and the percentage of time the customer
must be in the system relative to the total time it takes to perform
the service. |
|
|
Term
|
Definition
The flowchart of a service process, emphasizing
what is visible and what is not visible to the customer. |
|
|
Term
|
Definition
Procedures that prevent mistakes from becoming
defects. They are commonly found in manufacturing but also can
be used in service processes. |
|
|
Term
|
Definition
A promise of service satisfaction backed up by a
set of actions that must be taken to fulfill the promise. |
|
|
Term
| Health care operations management |
|
Definition
The design, management,
and improvement of the systems that create and deliver health care
services. |
|
|
Term
|
Definition
A facility whose staff provides services relating to observation,
diagnosis, and treatment to cure or lessen the suffering of
patients |
|
|
Term
|
Definition
The flow of work through a hospital consisting of the
services for patients provided by various medical specialties and
functions, within and across departments. |
|
|
Term
| Diagnosis-related groups (DRGs) |
|
Definition
Homogeneous units of hospital
activity for planning and costing surgeries—essentially a bill of
labor and materials. |
|
|
Term
|
Definition
Stages in the process where waiting takes place,
either before or after the procedure is performed. |
|
|
Term
| Total quality management (TQM) |
|
Definition
Managing the entire organization
so that it excels on all dimensions of products and services that are
important to the customer. |
|
|
Term
| Malcolm Baldrige National Quality Award |
|
Definition
An award established by
the U.S. Department of Commerce and given annually to companies
that excel in quality. |
|
|
Term
|
Definition
| The inherent value of the product in the marketplace. |
|
|
Term
|
Definition
The degree to which the product or service
design specifications are met. |
|
|
Term
|
Definition
The person who does the work is responsible
for ensuring that specifications are met. |
|
|
Term
|
Definition
| Criteria by which quality is measured |
|
|
Term
|
Definition
Expenditures related to achieving product or service
quality such as the costs of prevention, appraisal, internal failure,
and external failure. |
|
|
Term
|
Definition
A statistical term to describe the quality goal of no more
than four defects out of every million units. Also refers to a quality
improvement philosophy and program. |
|
|
