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89 Cards in this Set

  • Front
  • Back
Process Map
describes the sequence of all process activities and tasks necessary to create and deliver a desired output or outcome
Process boundary
the beginning or end of a process
rectangle
denotes a task or work activity
triangle
indicates waiting
oval
denotes the start or end of the process and defines the process boundary
arrow
denotes movement, transfer or flow to the next task or activity
double headed arrow
denotes an input or arrival into a process
diamond
denotes a decision that might result in taking alternative paths
line of visibility
shows the separation between back office and the front office. Shows the part of the process that the customer can see.
Different levels of detail in a process map
1. Value Chain
2. Process
3. Activity
4. Task
Each succeeding number is a subset of the number above I.E. a task is a subset of an activity
task
a specific unit of work required to create an output. I.e. drilling a hole in a steel part or completing an invoice
activity
a group of tasks needed to create and deliver an intermediate or final output
workstation
a location where activites are performed
value stream
refers to all value added activities involved in designing, producing, and delivering goods and services to customers
value stream map
highlights value added versus non value added activities and includes costs associated with work activities for both value and non value added activities
implementation planning
breaking down implementation requirements into manageable pieces, assigning due dates and resources, and delegating responsibility to individuals and teams. Monitor performance after implementation to ensure that the intended level of performance is actually achieved and maintained and to look for improvement opportunities.
reengineering
the fundamental rethinking and radical redesign of business processes to achieve dramatic improvements in critical, contemporary measures of performance, such as cost, quality, service, and speed. Fundamental questions: Why do we do it? and Why is it done this way?
quality
measures the degree to whcih the output of a process meets customer requirements.
dpmo
defects per million opportunities
flexibility
the ability to adapt quickly and effectively to changing requirements
Goods and Service Design Flexibility
the ability to develop a wide range of customized goods or services to meet deggerent or changing customer needs
Volume flexibility
the ability to respond quickly to changes in the valume and type of demand
efficiency
the degree to which a process generates outputs with the minimal consumption of inputs or generates a maximum amount of output for a given amount of inputs
effectiveness
achieving the organizations objective, mission, or goal through the eyes of customers; that is, doing the right things efficiently.
total productivity
the ratio of total output to total input
partial factor productivity
the ratio of total output to a single input
prevention costs
costs associated with preventing defects before they happen
appraisal costs
costs incurred when the firm asseses the performance level of its processes
internal failure costs
costs resulting from defects that are discovered during the production of a service or product
external failure costs
costs that arise when a defect is discovered after the customer receives the service or product
warranty
an example of an external failure cost; a written guarantee that the producer will replace or repair defective parts or perform the service to the customers satisfaction
TQM
Three principles: customer satisfaction, employee involvement, and continuous improvement
Quality at the source
a philosophy whereby defects are caught and corrected where they were created
teams
small groups of people who have a common purpose, set their own performance goals and approaches, and hold themselves accountable for success
employee empowerment
an approach to teamwork that moves responsibility for decisions further down the organizational chart--to the level of the employee actually doing the job
quality circles
another name for problem solving teams; small grops of supervisors and employees who meet to identify, analyze, and solve process and quality problems
continuous improvement
the philosophy of continually seeking ways to improve processes based on a Japanese concept called Kaizen
plan-do-check-act cycle
a cycle, also called the deming wheel, used by firms actively engaged in continuous improvement to train their work teams in problem solving
ISO 9000
a set of standards governing documentation of a quality program
ISO 14000
documentation standards that require participating companies to keep track of their raw materials use and their generation, treatment, and disposal of hazardous wastes. Require companies to prepare a plan for ongoing improvement in their environmental performance
Malcolm Baldridge National Quality Award
An award named for the late secretary of commerce, who was a strong proponent of enhancing quality as a means of reducing trade deficit; the award promotes, recognizeds, and publicizes quality strategies and achievements
CRM
a term that broadly refers to planning and control activities and information systems that link a girm with its downstream customers
SRM Supplier relationship Management
a term that broadly refers to planning and control activities and information systems that link a firm with its upstream suppliers
ERP
Large, integrated, computer based business transaction processing and reporting systems. ERP systems pull together all of the classic business functions such as accounting, finance, sales, and operations into a single, tightly integrated package that uses a common database
DSS Decision Support Systems
computer based information systems that allow users to analyze, manipulate, and present data in a manner that aids hight level decision making
Network Design Application
logistics information systems that address such long term strategic questions as facility location and sizing, as well as transportation networks. These applications often make use of simulation and optimization modeling.
Supply Chain Management
the efficient integration of suppliers, transporters, maufacturers, warehouses, retailers, and all other parties associated with the delivery of the final product
Procurement
the process of obtaining services, supplies, and equipment in conformance with corporate regulations
Operations
Design, operation, and improvement of production systems that efficiently transform inputs into finished goods and services
Logistics
the coordinated planning and execution of the following: product distribution throughout the supply chain, preparation of packaged product, movement itenerary, and storage itenerary
EOQ
The optimal order size
vertical integration
a firm whose business boundaries extend to include suppliers and customers
backward integration
taking over the role of your supplier
forward integration
taking over the rold of companies closer to the customer
line flow
stadard items, high volumes, static industry, make to stock
flexible flow
customized items, low volumes, dynamic industry, make to order systems
hybrid systems
assemble to order
Cycle time
Maximum time allowed for one unit at each work station, time it takes for one unit to come off the assembly line,
Bulk cargo
free flowing cargo, stored loose, coal, rice, grain, loaded by shovel, scoop etc.
Breakbulk cargo
general or packaged cargo, often containerized and measured in TEU's, CL, LCL, TL, LTL
Neo Bulk Cargo
characteristics of bulk and breakbulk cargo, cattle, logs, automobiles, steel
multimodal
use of more than one form of transport during a single shipment
intermodal
seamless multimodal shipment, no need to unload container or repackage products. One container for the entire trip.
planogram
schematic drawing that illustrates product placement
Dunnage
Used to fill the empty space in packages. Foam peanuts, air bags, bubble wrap
TL
Full truck load
LTL
Less than Truck Load
TEU
twenty foot equivalent units
Reefer
controlled atmosphere containers
Warehouses
Provides storage, keep inventories and are positioned close to retailers
DC's
facilitates movement, converts LTL's to TL's by consolidating and product mixing
crossdocking
a form of warehousing in which large incoming shipments are received and then broken down into smaller outgoing shipments to demand point in a geographics area. COmbines the economies of large incoming shipments with the flexibility of smaller local shipments, fast mxing center that takes advantage of modern technology, moves inventory quickly
Letter of Credit
document issued by buyers bank to supplier. Says the seller will receive payment after terms in the document are met
Invoice
summation of entire transaction
Bill of Lading
contract between seller and the carrier, indicates terms of shipper, states ownership of cargo, who holds title, and receipt of good for shipper
Free Trade Zone
Area where acceptable items can enter the country duty free for storage, display, manufacturing, transformation,assembly, repackaging,etc.
3PL
Third party logistics company, an organization that manages and executes a particluar logistics function
Freight Forwarder
US side of exports, find most efficient and cost effective itenerary, can be considered 4pl
Custom House Broker
Help items clear foreign customs, foreign side of exports
VMI, vendor managed inventory
inventory planning and replenishment system where supplier accepts negotiated responsibilities that typically include monitoring and restocking
EMS, Electronic Manufacturing Services
Companies that can take on numerous primary supply chain responsibilities associated with the manufacturing of electronic components assembled end-items, Exploit economies of scale in the manufacturing of electronic devices,
Reverse Logistics
The management of supplies, containers, packaging that must move away from customers and back in the direction of the suppliers-upstream, Recovery, disposal, recycling, redistribution, refurbishing, repair
upstream
purchasing and production
downstream
retail sales
push system
get 1000's of parts and push them through production and distribution, make before they are purchased
pull system
order made after order is placed,
JIT
Minimize inventories, short lead times, high quality, short cycle times, low defects, control costs
Postponement
delaying final production of end item. Mix of push and pull.
Bullwhip effect
Very high and very low demand levels despite fairly constant demand levels
Poor forecasting, order batching, price fluctuations, rationing, and shortage gaming can cause it