Operations and Supply Chain Management - C720 (WGU)

Operations and Supply Chain Management - C720 (WGU) 14 studiers today 4.7 (86 reviews) Students also studied Terms in this set (245) Western Governors UniversityIT C182 Save WGU C720 Complete OA Prep Guid...153 terms Brpinson321Preview C720 - Operations and Supply Chai...72 terms DanglyDeuce Preview

WGU - C722

281 terms LearningChuPreview D217 Ac 226 term van OperationsThe process used to acquire inputs, such as people, capital, and material, and transform them into outputs, such as products and services.Operations ManagerThey allocate resources.CapitalFacilities and equipment Competitive AdvantageDeveloping capabilities that customers value, can be sustained over the long- term, and competitors find difficult to replicate.InseparabilityThe process of separating production from consumption; cannot be done for services because they are produced and consumed simultaneously.TechnologyThe application of knowledge, tools, processes, and procedures to solve problems.Product DesignThe characteristics, features, and performance of the product; how the product

functions; does not fundamentally change the product. Example: changing Coca-

Cola's beverage containers from glass to aluminum.Product TechnologyThe application of knowledge to improve the product.ProcessHow to accomplish a task.Process DesignHow a product is made; can fundamentally alter the nature of the product.

Example: changing the taste of Coca-Cola.

Process TechnologyThe application of knowledge to improve a process.

Cross-FunctionalityWhen individuals with different expertise work towards a common goal; this is an essential business process.Concurrent EngineeringCompleting product design and process design simultaneously.Functional AreasSubsystems within an organization, such as marketing, finance, and accounting, that are linked together by a common organizational goal.StrategyConsists of the organizational goals and the methods of implementing the goals; every element of the SWOT analysis should be considered when developing strategies.Key PoliciesMain goals of an organization.Organizational StructureThe formal relationships among different functional areas that aids in communication.Relative AdvantageWhere one entity has an advantage over another; will often trade their specialized products for those that they do not produce; companies with a relative advantage are able to produce products at a lower cost than their competitors.North American Free Trade Agreement (NAFTA) A free trade agreement between the United State, Mexico, and Canada to reduce tariffs and other trade restrictions.General Agreement on Tariffs and Trade (GATT) A trade agreement designed to reduce tariffs and other trade restrictions.SustainabilityBalancing the interconnected obligations to economic viability, society, and the environment (the triple bottom line).What is the percentage of businesses that operate within the service sector?88 percent Supporting GoodsSupplies and equipment that aid in the development of products and services.Market ShareThe percentage of sales in a particular market.VIRALValue, Inimitable, rare, aptitude, and lifespan.SWOT AnalysisAnalyzing the internal (strengths and weaknesses) and external (opportunities and threats) environments.Requirements for developing competitive advantage SWOT, business process, competitive capabilities, and customer requirements.Learning CurveContinuously improving a product to make it better and cheaper.SynergyTeamwork where the whole is greater than the sum of its parts.Key ProcessesStrategy development, product development, system development, and order fulfillment.

SystemThe process of producing goods and system.MatchingMatching strengths to opportunities.ConvertingConverting weaknesses or threats into strengths or opportunities.ProductivityOutput / Input; the goal is achieving more output given the amount of inputs, thus saving money and reducing production costs.The First RevolutionStarting in the late 1800s, increases in manufacturing productivity reduced the need for physical labor and enabled a shift towards service-based jobs.The Second RevolutionProductivity and efficiency improvements in manufacturing freed resources for the rapid expansion of the service industry.The Third RevolutionAlso known as the post-industrial era, this revolution began in the 1950s with the development of computers. This technology has allowed fewer people to do more work.ReliabilityThe ability to perform dependably and accurately.AssuranceKnowledge and courtesy of employees and their ability to convey trust and confidence.Process RedesignThe complete overhaul of a process to improve performance.Percent Change in Productivity[(New Productivity - Old Productivity)/Old Productivity] * 100 Quality (internal)How quality is defined by the business; often measured as the amount of a desired attribute; objective.Quality (external)How quality is defined by the customer and the product's fitness for use; meets customer's needs and expectations; subjective.Questions for Customers when Improving Products Ask what they value (not just what they want), how do they work, what makes them happy, and feedback on specific product attributes.Costs of QualityFailure costs, appraisal costs, and prevention costs.Failure CostsCosts accrued by the organization or customer as the result of a failure of the product.Appraisal CostsInvestments in measuring quality and assessing customer satisfaction.Prevention CostsInvestments designed to prevent defects from occurring.Poka-yokeMistake proofing; an approach to prevent defects, such as color-coding parts so that customers assemble the product correctly.

Design for Manufacture and Assembly (DFMA) Products should be designed so that they are simple and inexpensive to produce.Design for Operations (DFO)Services should be simple and inexpensive.Statistical Process Control (SPC)The use of statistical methods to determine when a process that produces goods is getting close to producing too many defects.

• Edwards DemingThe most influential individual within the specialty of quality; After World War II, he

went to Japan to help rebuild their economy, and he was heralded for his influence. He went on to lecture in the United States in the 1980s; he developed his 14 Points for the Transformation of Management.Deming's 14 Points for the Transformation of Management The system, not employees, cause defects; management is responsible for changing the system, and they must take responsibility instead of blaming employees; Deming also stressed the use of Statistical Process Control (SPC) and encouraged training in its use. Other highlights include creating purpose, reduce fear, provide training and leadership, break down barriers between departments, and eliminate slogans, work standards, and quotas.Joseph M. JuranHe defined quality as "fitness for use", from the customer's perspective; he emphasized the need for continuous improvement and stressed that quality must be built on quality planning, quality control, and quality improvement.Quality PlanningThe development of products that appeal to the changing wants and needs of customers.Quality ControlEnsure that the product fits the customer's perception of fitness for use.Quality ImprovementLeadership ought to lead efforts to eliminate waste and errors.Philip CrosbyWrote Quality is Free; he emphasized the complete elimination of failures to save money, as most firms underestimate their failure costs and should evaluate all costs of quality; "Do it right the first time".Genichi TaguchiHe helped develop Japan's telephone system post-World War II. He designed experiments to extract more data from each test. He argues for "robust design", designs that guarantee high quality despite variations, such as employee errors, that may occur during the processes that produce the product; quality must, therefore, be built into the product.Kaoru IshikawaHe developed the Ishikawa/Fishbone diagram and quality circles.Ishikawa/Fishbone DiagramHelps establish cause-and-effect by identifying factors that contribute to outcomes or problems; the factors are categories as People, Machines, Methods, Measurements, Materials, and Environment and include intentional and unintentional consequences and influence quality performance.Quality CirclesA team from all levels who meet to discuss, analyze, and eliminate quality issues using Deming's 14 points; a senior manager overseas their progress and approves their changes.