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70 terms Ha_ Average amount of time product take to move through the system Thoughput time demand-based optionsA group of options that respond to demand fluctuations through the use of inventory or back orders, or by shifting the demand pattern.finished goods inventory-manufactured items that are completed and ready for sale -used to absorb demand fluctuations shifting demanda marketing strategy that attempts to shift demand from peak periods to nonpeak periods to smooth out the demand pattern level aggregate planA planning approach that produces the same quantity each time period. Inventory and back orders are used to absorb demand fluctuations.chase aggregate plana planning approach that varies production to meet demand each period hybrid aggregate plana planning approach that uses a combination of level and chase approaches while developing the aggregate plan Sales and Operations PlanningThe process that companies use to keep demand and supply in balance and to coordinate distribution, marketing, and financial plans.aggregate planIncludes the budgeted levels of finished products, inventory, backlogs, workforce size, and aggregate production rate needed to support the marketing plan.synonym for aggregate planproduction plan

Master Production Schedule (MPS)A part of the material requirements plan that details how many end items will be produced within specified periods of time -anticipated production schedule Point of Departure (POD)the percentage of normal capacity your company is currently operating at psychological criteriaa subjective definition that focuses on the judgmental evaluation of what constitutes product or service quality quality circlea team of employees who meet on company time to solve problems of product quality Fishbone diagramcause and effect diagram FlowchartA diagram that shows step-by-step progression through a procedure or system especially using connecting lines and a set of conventional symbols.ChecklistsList of common defects and the number of observed occurrences of these defects.Control chartused to evaluate whether a process is operating within expectations relative to some measured value such as weight, width, or volume Scatter diagrama graph that shows the degree and direction of relationship between two variables Pareto Analysistechnique for classifying problem areas according to degree of importance, and focusing on the most important histograma bar graph depicting a frequency distribution Quality Function Deployment (QFD)a tool used to translate the preferences of the customer into specific technical requirements Malcom Baldrige National Quality Awardan award given by the President of the United States to organizations judged to be outstanding in specific managerial tasks that lead to improved quality for both products and services Deming PrizePrize established by the Japanese and awarded annually to firms that distinguish themselves with quality management programs.ISO 9000the common name given to quality management and assurance standards ISO 14000 StandardsA set of environmental guidelines that are recognized as the global standard for environmental management.A technique to relieve monotony and boredom that involves assigning workers additional tasks at the same level of responsibility to increase the number of tasks they have to perform. Horizontal loading job enlargement

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Any effort that makes an employee's job more rewarding or satisfying by adding more meaningful tasks and duties.Vertical loading.job enrichment

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training that requires an individual to learn several different jobs in a work unit or department and perform each job for a specified time period Job rotation (cross training)

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a physical inventory is taken periodically, usually annually periodic counting

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a physical inventory-taking technique in which inventory is counted on a frequent basis rather than once or twice a year cycle counting

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an approach for locating a single facility that minimizes the distance to existing facilities center of gravity approach

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How well a product or service meets the targets and tolerances determined by its designers.Conformance to specifications

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performance, features, reliability, conformance, durability, serviceability, aesthetics, perceived quality Dimensions of Quality The role of BLANK is to improve production planning within the production process.Aggregate planning

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Method used to calculate the production capacity availability. Need to look at how much capacity is available. Uses planned order release from the MRP output to calculate the workload.capacity requirements planning (CRP)

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Processes or activities that are completed by suppliers. Outsourcing

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a planning system that schedules the precise quantity of materials needed to make the product Material requirements planning (MRP)

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change in savings/change in income Used with MRP Marginal propensity to save (MPS)

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Combines the computerized functions of all the divisions and subsidiaries of the firm--such as finance, human resources, and order fulfillment--into a single integrated software program that uses a single database.Enterprise resource planning (ERP)

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Companies that connect online MRO suppliers to businesses that pay fees to join the market, usually for long term contractual purchasing.E-purchasing

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Mistake-proofing methods aimed at designing fail-safe systems that minimize human error Poka-yoke

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Independently owned net marketplaces having catalogs representing thousands of suppliers and designed for spot purchases.E-distributors

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way of defining quality, focuses on judgement of what constitutes product or service excellence.Psychological criteria

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Supply ChainAll the activities involved in delivering a finished product or service to customer Retail crossdockingsorting product from multiple vendors onto outbound trucks headed for specific stores.Uniform Plant LoadingA constant production plan for a facility with a given planning horizon.Quality Function Deployment (QFD)An approach that integrates the "voice of the customer" into both product and service development Sales revenue modela company derives revenue by selling goods, information, or services Supply Chain Management (SCM)The management of information flows between and among activities in a supply chain to maximize total supply chain effectiveness and profitability Industry ConsortiaIndustry-owned markets that enable buyers to purchase direct inputs from a limited set of invited suppliers.Process Velocitythroughput time/value-added time Efficiency equationactual output/standard output Productivity equationoutput/input Utilization equationtime a resource used/time a resource is available What do assignable causes of variation indicate?A computer virus was found in the system.Out-of-control signals were found in the process.Human resources found an operator was at fault.Equipment was found to be out of control.Out-of-control signals were found in the process.