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Supply Chain Ch.3
key terms
27
Business
Undergraduate 2
09/18/2013

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Term
bottlenecks
Definition
An activity or resource that limits or constrains the output of a process
Term
capacity
Definition
The limit on the amount of output per period of time that a process can generate or store given a level of inputs and resources available
Term
cycle time
Definition
The time that it takes to process one until at an operation in the overall process
Term
delay (wait)
Definition
An unintentional stoppage of the flow of work
Term
diseconomies of scale
Definition
Occur when the cost per unit increases as an operation's size increases
Term
economies of scale
Definition
As production volumes increase with addition of capacity, the unit cost to produce a product decreases to an optimal level
Term
effective capacity
Definition
The level of capacity or output that the process can be expected to produce under normal conditions
Term
flow time
Definition
The time it takes one unit to get through a process
Term
inspection
Definition
An activity that checks or verifies the results of another activity
Term
Kaizen Event
Definition
A short-term approach to enhancing efficiency that focuses on improving an existing process or an activity within a process
Term
Juran's Law
Definition
A key premise of process thinking: 15% of operational problems are the result of human errors; the other 85% are due to systemic process errors
Term
Learning Curve
Definition
As the production volume doubles, the labor hours required decrease by a constant proportion
Term
Little's Law
Definition
An empirically proven relationship that exists between flow time, inventory, and throughput
Term
Maximum Capacity
Definition
The highest level of output that a process can achieve under ideal conditions in the short term
Term
metrics
Definition
A measure, a standard, and a consequence that work together to close the gap between what is valued by the customer and what is intended by the organization
Term
operation (change)
Definition
An activity that changes an input
Term
parallel structure
Definition
A process where there are two or more resources doing the same task simultaneously
Term
process
Definition
A system of structured activities that use resources to change inputs into valuable outputs
Term
process capabilities
Definition
The specific types of outputs and levels of performance that a process can generate
Term
process thinking
Definition
A way of viewing activities in an organization as processes rather than as departments or functions
Term
serial/sequential structure
Definition
A process structure where the activities occur one after the other in sequence
Term
storage (inventory/store)
Definition
An activity that intentionally stops flow of work items and places them under formal control
Term
Theory of Constraints
Definition
The overall mgmt system that strives to improve system performance by identifying, focusing on, and managing constraints
Term
Transportation (move)
Definition
An activity that moves an input from one place to another without changing any of its other characteristics
Term
utilization
Definition
The percent of a process capacity that is actually used
Term
wait time
Definition
the amount of time that an item spends waiting
Term
yield rate
Definition
The percentage of units successfully produced as a percentage of inputs
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