Term
| Operations and Supply Chain Management |
|
Definition
| The design, operation, and improvement of the systems that create and deliver the firm's primary products and services |
|
|
Term
| 5 categories of Operations and Supply Chain Processes |
|
Definition
Planning
Sourcing
Making
Delivering (Logistics)
Returning |
|
|
Term
|
Definition
The processes needed to operate an existing supply chain strategically
- Firms must determine how anticipated demand will be met with available resources
- Developing a set of metrics to monitor the supply chain |
|
|
Term
|
Definition
The selection of suppliers that will deliver the goods and services needed to create the firm's product
- Pricin, delivery, and payment processes are needed together with metrics for monitoring and improving relationships between partners of the firm |
|
|
Term
|
Definition
Where the major product is produced or the service provided
- Scheduling processes for workers and coordination of material and other critical resources such as equipment to support producing or providing the service |
|
|
Term
|
Definition
| Carriers are picked to move products to warehouses and customers, coordinate and schedule the movement of goods and info through the supply network, develop and operate warehouses, etc. |
|
|
Term
|
Definition
| Processes for receiving worn-out, defective, and excess products back from customers and support for customers who have problems with delivered products |
|
|
Term
|
Definition
| Doing something at the lowest possible cost |
|
|
Term
| 5 aspects that distinguish a service and a good |
|
Definition
1. A service is an intangible process
2. A service requires some degree of interaction with the customer
3. Services are inherently heterogeneous
4. Services as a process are perishable and time dependent
5. The specifications of a service are defined and evaluated as a package of features that affect the 5 senses |
|
|
Term
|
Definition
| Doing the things that will create the most value for the customer |
|
|
Term
|
Definition
| The attractiveness of a product relative to the cost |
|
|
Term
|
Definition
|
|
Term
|
Definition
1. Net income per employee
2. Revenue per employee
3. Receivable Turnover - Annual Credit sales/ Average AR
- Measures company's efficiency at collecting its sales on credit
- High ratio implies the company operates on mostly cash or its very efficient
4. Inventory Turnover - COGS/Avg Inventory
- Measures the liquidity of inventory
- The higher the more efficient since holding inventory ties up capital that could be used for other purposes
5. Asset Turnover - Revenue / Total Assets |
|
|
Term
|
Definition
| The pipeline movement of the materials and information needed to produce a good or service |
|
|
Term
| Triple Bottom Line Strategy |
|
Definition
| A strategy that meets the needs of shareholders, and employees, and that preserves the environment |
|
|
Term
|
Definition
| Refers to when a company builds service activities into its product offerings |
|
|
Term
|
Definition
| A business where the major product is intangible, meaning it cannot be weighed or measured |
|
|
Term
|
Definition
| A philosophy that aggressively seeks to eliminate causes of production defects |
|
|
Term
| Business Process Re-engineering |
|
Definition
| An approach that seeks to make revolutionary changes as opposed to evolutionary changes |
|
|
Term
|
Definition
| An approach that combines Total Quality Management and Just in Time production |
|
|
Term
|
Definition
| Tools that are taught to managers in "Green and Black Belt Programs" |
|
|
Term
| Service Science Management and Engineering |
|
Definition
| A program to apply the latest concepts in information technology to improve service productivity |
|
|
Term
| Operations and Supply Chain Strategy |
|
Definition
| The setting of broad policies and plans that will guide the use of the resources needed by the firm to implement its corporate strategy |
|
|
Term
|
Definition
| Performing activities in a manner that best implements strategic priorities at minimum cost |
|
|
Term
|
Definition
| The ability to meet current resources needs without compromising the ability of future generations to meet their needs |
|
|
Term
| Main competitive dimensions |
|
Definition
Cost/Price
Quality (design quality or process quality)
Delivery Speed
Delivery Reliability
Coping with Changes in Demand
Flexibility and New-Product Introduction Speed
Support Systems
Social/Environmental Dimensions |
|
|
Term
|
Definition
| A specific marketing-oriented dimension that clearly differentiates a product from competing products |
|
|
Term
|
Definition
| A dimension used to screen a product or service as a candidate for purchase |
|
|
Term
|
Definition
| The likelihood of a disruption that would impact the ability of a company to continuously supply products or services |
|
|
Term
| 2 types of supply chain risks |
|
Definition
Supply chain coordination risks (day-to-day)
Disruption risks |
|
|
Term
| 3 step risk management process applied where disruptions are possible |
|
Definition
1. Identify the sources of potential disruptions
2. Assess the potential impact of the risk
3. Develop plans to mitigate the risk |
|
|
Term
|
Definition
Common measure of how well a country, industry, or business unit is using its resources
- Outputs/Inputs |
|
|
Term
| Partial productivity measure |
|
Definition
| Concerned with the ratio of some output to a single input |
|
|
Term
| Multi-factor productivity measure |
|
Definition
| Look at the ratio of some output to a group of inputs (not all inputs) |
|
|
Term
| Total Factor Measure of Productivity |
|
Definition
| Describes the productivity of an entire organization |
|
|
Term
| The most difficult competitive dimension in which to compete |
|
Definition
|
|
Term
|
Definition
| Occurs when a company seeks to match what a competitor is doing while maintaining its existing competitive position |
|
|
Term
|
Definition
| A diagram showing the activities that support a company's strategy |
|
|
Term
|
Definition
Strategic
- Medium and long-term forecasts that are used for decisions related to strategy and aggregate demand
Tactical
- Short-term forecasts used for day-to-day decisions related to meeting demand |
|
|
Term
|
Definition
1. Average demand for the period
2. Trend
3. Seasonal Elements
4. Cyclical Elements
5. Random variation
6. Auto-correlation |
|
|
Term
|
Definition
| Models that try to predict the future based on past data |
|
|
Term
|
Definition
A forecast based on average past demand relative to the most recent n number of months
- As periods becomes longer and more periods are used, and there is more oscillation, there is a closer following of the trend |
|
|
Term
|
Definition
| A forecast made with past data where more recent data is given more significance than older data |
|
|
Term
|
Definition
A time series forecasting technique using weights that decrease exponentially (1 - a) for each past period
- Most used of all forecasts |
|
|
Term
|
Definition
The parameter in the exponential smoothing equation that controls the speed of reaction to differences between forecasts and actual demand
- Usually estimated using 2 / (n+1) |
|
|
Term
| How does alpha relate to the amount of error in your forecast? |
|
Definition
| The higher the alpha, the less error |
|
|
Term
|
Definition
Average size of the error in your forecast
- (sum of absolute value of each error) / N |
|
|
Term
| Running Sum of Forecast Error |
|
Definition
| Sum of each forecast error (no absolute value) |
|
|
Term
|
Definition
RSFE / MAD
- A measure of whether the forecast is keeping pace with any genuine upward or downward changes in demand. Used to detect bias |
|
|
Term
| Mean Absolute Percent Error |
|
Definition
MAD / Average Demand
- Scales the average error in relation to actual demand |
|
|
Term
|
Definition
| The difference between actual demand and what was forecast |
|
|
Term
| Which type of demand is most appropriate for using forecasting models? |
|
Definition
|
|
Term
| What term is used for actually influencing the sale of a product or service? |
|
Definition
|
|
Term
|
Definition
| Identifying and separating time series data into components of demand |
|
|
Term
| If the tracking signal for your forecast was consistently positive, what could you say about your forecasting technique? |
|
Definition
| It is biased, consistently too low |
|
|
Term
| How can you improve a biased forecast? |
|
Definition
|
|
Term
| You know that sales are greatly influenced by the amount your firm advertises in the local paper/ What forecast technique would you would you suggest trying? |
|
Definition
| Causal relationship forecasting (regression) |
|
|
Term
| What forecasting tool is most appropriate when closely working with customers dependent on your products? |
|
Definition
CPFR
Collaborative planning, forecasting, and replenishment |
|
|
Term
|
Definition
| A series of related activities usually directed toward some major output and requiring a significant period of time to perform |
|
|
Term
|
Definition
| The management activities of planning, directing, and controlling resources (people, equipment, material) to meet the technical, cost, and time constraints of a project |
|
|
Term
|
Definition
| A structure for organizing a project where a self-contained team works full-time on the project |
|
|
Term
|
Definition
| A structure where team members are assigned from the functional units of the organization. The team members remain a part of their functional units and typically are not dedicated to the project |
|
|
Term
|
Definition
| A structure that blends the functional and pure project structures. Each project uses people from different functional areas. A dedicated project manager decides what tasks need to be done and when, but the function managers control which people to use |
|
|
Term
|
Definition
| Shows in a graphic manner the amount of time involved and the sequence in which activities can be performed (bar chart) |
|
|
Term
|
Definition
| Technique that combines measured of scope, schedule, and cost for evaluating project progress |
|
|
Term
| Essential Features of EVM |
|
Definition
1. A project plan that identifies the activities to be accomplished
2. A valuation of each activity work
3. Predefined earning or costing rules to quantify the accomplishment of work |
|
|
Term
|
Definition
| The sequence(s) of activities in a project that forms the longest chain in terms of their time to complete |
|
|
Term
|
Definition
A project must have:
- Well defined activities whose completion marks the end of the project
- Independent activities
- Activities that follow a given sequence |
|
|
Term
| Steps in the CPM with Single Time Estimate |
|
Definition
1. Activity Identification
2. Activity Sequencing and Network Construction
3. Determine the critical path(s) |
|
|
Term
| When is CPM with a single time estimate used? |
|
Definition
- When activity times are known with certainty
- To determine timing estimates for the project, each activity in the project, and slack time for activities |
|
|
Term
| When are Time-Cost models used |
|
Definition
- When cost trade-off information is a major consideration in planning
- To determine the least cost in reducing total project time |
|
|
Term
|
Definition
| Specific events that upon completion mark important progress toward completing a project |
|
|
Term
| What defines the hierarchy of project tasks, subtasks, and work packages? |
|
Definition
|
|
Term
|
Definition
| The difference between the late and early start time for an activity |
|
|
Term
| What technique is used when activities are scheduled with probabilistic task times? |
|
Definition
| The Program Evaluation and Review Technique (PERT) |
|
|
Term
|
Definition
| the time needed to respond to a customer order |
|
|
Term
| Customer Order Decoupling Point |
|
Definition
Determines where inventory is positioned to allow processes or entities in the supply chain to operate independently
- The closer this point is to the customer, the faster the customer can be served |
|
|
Term
|
Definition
Firms that serve customers from finished goods inventory
- Essential issue: balance finished inventory with customer service
- Examples: telephones, clothing, packaged food products |
|
|
Term
|
Definition
Firms that combine a number of pre-assembled modules to meet a customer’s specifications
- Prime task is to define a customer’s order in terms of alternative components and options since these are carried in inventory
- Example: Dell Computer’s desktop making process
- Number of finished products is usually greater than number of components that are combined to make the finished product |
|
|
Term
|
Definition
| Firms that make the customer’s product from raw materials, parts, and components |
|
|
Term
|
Definition
| firms that work with the customer to Design the product and then make it from purchased materials, parts, and components |
|
|
Term
| Workcenter Layout/Job Shop |
|
Definition
Where similar equipment or functions are grouped together
- Flexibility to produce a variety of products, typically at lower volume levels
- Example: drilling machines in one area and stamping machines in another |
|
|
Term
| Manufacturing Cell Layout |
|
Definition
| Dedicated area where products that are similar in processing requirements are produced |
|
|
Term
|
Definition
| an item is produced through a fixed Sequence of workstations, designed to achieve a specific production rate (sequential) |
|
|
Term
|
Definition
| A process that converts raw materials into finished products in one contiguous process (simultaneous) |
|
|
Term
|
Definition
| Framework depicting when the different production process types are typically used depending on product volume and how standardized the product is |
|
|
Term
| Steps in Assembly Line Balancing |
|
Definition
1. Specify Sequential relationships among tasks
2. Determine the required workstation cycle time
3. Determine the theoretical minimum number of workstations
4. Assign tasks, one at a time, until the sum of the tasks is equal to the workstation cycle time
5. Evaluation the efficiency of the balance
6. Re-balance if needed |
|
|
Term
| Formula to detemine required workstation cycle time |
|
Definition
| C = Production time per day / Required output per day (in units) |
|
|
Term
| Formula to determine theoretical minimum of workstations |
|
Definition
| N = Sum of task times / Cycle time |
|
|
Term
| Formula to evaluate efficiency of the balance of an assembly line |
|
Definition
| E = Sum of task times / (Actual number of workstations x Workstation cycle time) |
|
|
