Reading...
Play button
Play button
Use LEFT and RIGHT arrow keys to navigate between flashcards;
Use UP and DOWN arrow keys to flip the card;
H to show hint;
A reads text to speech;
88 Cards in this Set
- Front
- Back
|
An operation in a sequence of operations whose capacity is lower that of the other operations
|
Bottleneck Operation
|
|
|
The volume of output at which total cost and total revenue are equal
|
Break-Even Point
|
|
|
The upper limit or ceiling on the load that an operating unit can handle
|
Capacity
|
|
|
Extra capacity used to offset demand uncertainty
|
Capacity Cushion
|
|
|
The difference between cash received from sales and other sources, and cash outflow for labor material, overhead, and taxes
|
Cash Flow
|
|
|
Something that limits the performance of a process or system in achieving its goals
|
Constraint
|
|
|
The maximum designed service capacity or output rate
|
Design Capacity
|
|
|
If the output rate is more than the optimal level, increasing the output rate results in increasing average unit costs
|
Diseconomies of Scale
|
|
|
If the output rate is less than the optimal level, increasing the output rate results in decreasing average unit
|
Economies of Scale
|
|
|
Design capacity minus personal and other allowances
|
Effective Capacity
|
|
|
The sum, in current value, of all future cash flows of an investment proposal
|
Present Value
|
|
|
The limitations on decision making caused by costs, human abilities, time, technology, and availability of information
|
Bounded Rationality
|
|
|
Environment in which relevant parameters have known values
|
Certainty
|
|
|
A schematic representation of the available alternatives and their possible consequences
|
Decision Tree
|
|
|
The best expected value among the alternatives
|
Expected Monetary Value Criterion
|
|
|
The difference between the expected payoff with perfect information and the expected payoff under risk
|
Expected Value of Perfect Information
|
|
|
Choose the alternative with the best average payoff of any of the alternatives
|
Laplace
|
|
|
Choose the alternative with the best possible payoff
|
Maximax
|
|
|
Choose the alternative with the best of the worst possible payoffs
|
Maximin
|
|
|
Choose the alternative that has the least of the worst regrets
|
Minimax Regret
|
|
|
Table showing the expected payoffs for each the expected payoffs for each alternative in every possible state of nature
|
Payoff Table
|
|
|
The difference between a given payoff and the best payoff for a state of nature
|
Regret
|
|
|
Environment in which certain future events have probable outcomes
|
Risk
|
|
|
Determining the range of probability for which an alternative has the best expected payoff
|
Sensitivity analysis
|
|
|
The result of different departments each attempting to reach a solution that is optimum for that department
|
Suboptimization
|
|
|
Environment in which it is impossible to assess the likelihood of various future events
|
Uncertainty
|
|
|
A tool used to organize data into logical categories
|
Affinity Diagram
|
|
|
Costs of activities designed to ensure quality or uncover defects
|
Appraisal Costs
|
|
|
Annually award given by the US government to recognize quality achievements of US companies
|
Baldrige Award
|
|
|
Process of measuring performance against the best in the same or another industry
|
Benchmarking
|
|
|
Technique for generating a free flow of ideas in a group of people
|
Brainstorming
|
|
|
A diagram used to search for the cause(s) of a problem; also called fishbone diagram
|
Cause-and-effect Diagram
|
|
|
A tool for recording and organizing data to identify a problem
|
Check Sheet
|
|
|
Philosophy that seeks to make never-ending improvements in the process of converting inputs into outputs
|
Continuous Improvement
|
|
|
A statistical chart of time-ordered values of a sample statistics
|
Control Chart
|
|
|
Prize established the japanese and awarded annually to firms that distinguish management programs
|
Deming Prize
|
|
|
Performance, aesthetics, special features, conformance, reliability, durability, perceived, quality, and serviceability
|
Dimensions of Quality
|
|
|
A six-sigma process: define, measure, analyze, improve, and control
|
DMAIC
|
|
|
European award for organizational excellence
|
European Quality Award
|
|
|
Failures discovered after delivery to the customer
|
External Failures
|
|
|
Incorporating design elements that prevent incorrect procedures
|
Fail-safing
|
|
|
Costs caused by defective parts or products or by faulty services
|
Failure Costs
|
|
|
A method of asking questions about a process that include what, why, where, when,who how, and how much
|
5W2H Approach
|
|
|
A diagram of the steps in a process
|
Flowchart
|
|
|
A chart of an empirical frequency distribution
|
Histogram
|
|
|
Failures discovered during production
|
Internal Features
|
|
|
Technique for identifying problem areas and collecting imformation
|
Interviewing
|
|
|
A set of international standards on quality management and quality assurance, critical to international business
|
ISO 9000
|
|
|
A set of international standards for assessing a company's environmental performance
|
ISO 14000
|
|
|
A set of international standards that pertains to the quality and performance of office equipment that contains reused components
|
ISO 24700
|
|
|
Japanese term for continuous improvement
|
Kaizen
|
|
|
An approach to continuous improvement that integrates lean operation principles and six sigma techniques
|
Lean/Six Sigma
|
|
|
Technique for classifying problem areas according to degree of importance, and focusing on the most important
|
Pareto Analysis
|
|
|
A framework for problem solving and improvement activities
|
Plan-to-study-act Cycle
|
|
|
Costs of preventing defects from occurring
|
Prevention Costs
|
|
|
A systematic approach to improving a process
|
Process Improvement
|
|
|
The ability of a product or service to consistently meet or exceed customer expectations
|
Quality
|
|
|
The philosophy of making each worker responsible for the quality of his or her work
|
Quality At the Source
|
|
|
Groups of workers who meet to discuss ways of improving products or processes
|
Quality Circles
|
|
|
The degree to which goods or services conform to the intent of the designersr
|
Quality of Conformance
|
|
|
Intention of designers to include or exclude features in a product or service
|
Quality of Design
|
|
|
An approach that evaluates the financial return of investment in quality
|
Return on Quality
|
|
|
Tool for tracking results over a period of time
|
Run Chart
|
|
|
A graph that shows the degree and direction of relationship between two variables
|
Scatter Diagram
|
|
|
A business process for improving quality, reducing costs, and increasing customer satisfaction
|
Six Sigma
|
|
|
A philosophy that involves everyone in an organization in a continual effort to improve quality and achieve customer satisfaction
|
Total Quality Management
|
|
|
In process, output, a variation whose cause can be identified; a nonrandom variation
|
Assignable Variation
|
|
|
Generate data that are counted
|
Attributes
|
|
|
Control chart for attributes, used to monitor the number of defects per unit
|
C-chart
|
|
|
The distribution of sample averages tends to be normal regardless of the shape of the process distribution
|
Central Limit Theory
|
|
|
A time-ordered plot of sample statistics, used to distinguish between random and nonrandom variability
|
Control Chart
|
|
|
The dividing lines between random and nonrandom deviations from the mean of the distribution
|
Control Limits
|
|
|
Appraisal of goods or services
|
Inspection
|
|
|
Control chart used to monitor the central tendency of a process
|
Mean Control Chart
|
|
|
Control chart for attributes, used to monitor the proportion of defective items in a process
|
P-chart
|
|
|
The inherent variability of process output relative to the variation allowed by the design specification
|
Process Capability
|
|
|
Natural or inherent variability in a process
|
Process Variability
|
|
|
A process that evaluates output relative to a standard and takes corrective action when output doesn't meet standards
|
Quality Control
|
|
|
Natural variation in the output of a process, created by countless minor factors
|
Random Variation
|
|
|
Control chart used to monitor process dispersion
|
Range Control Chart
|
|
|
A test for patterns in a sequence
|
Run-Test
|
|
|
A theoretical distribution of sample statistics
|
Sampling Distribution
|
|
|
A range of acceptable values established by engineering design or customer requirements
|
Specifications
|
|
|
Statistical evaluation of the output of a process
|
Statistical Processing Control
|
|
|
Concluding a process is not in control when it actually is
|
Type I Error
|
|
|
Concluding a process is in control when it is not
|
Type II Error
|
|
|
Sequence of observations with a certain characteristic
|
Run
|
|
|
Generate data that are measured
|
Variables
|
