WGU C215 Final Guide Study Guide, Study Guides, Projects, Research of Production and Operations Management

WGU C215 Final Guide Study Guide

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WGU C215 Final Guide Study Guide
1. Total Quality Management (TQM) Philosophy: 1. customer focus
2.
continuous
improvement
3.
employee
empowerment
4.
use
of
quality
tools
5.
product
design
6.
process
management
7.
managing
supplier
quality
2.
Process
Capability
Index
(Cpk):
Basic function of Six Sigma. Measures the process potential and
performance
of
processes.
The
higher
the
range
of
Cpk,
the
improved
is
the
ability
of
the
process
to
complete
its
necessities.
3.
Six
Sigma:
A disciplined, data-driven approach and methodology for eliminating defects (driving toward six
standard
deviations between the mean and the nearest specification limit) in any process - from manufacturing to transactional and from
product to service.
4.
Design
Capacity:
The theoretical maximum output of a system in a given period under ideal conditions.
5.
Location
Analysis:
proximity
to
customers,
transportation,
source
of
labor,
community
attitude,
proximity
to suppliers,
and many other factors.
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pf9
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pf13
pf14
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WGU C215 Final Guide Study Guide

  1. Total Quality Management (TQM) Philosophy: 1. customer focus
  2. continuous improvement
  3. employee empowerment
  4. use of quality tools
  5. product design
  6. process management
  7. managing supplier quality
  8. Process Capability Index (Cpk): Basic function of Six Sigma. Measures the process potential and performance of processes. The higher the range of Cpk, the improved is the ability of the process to complete its necessities.
  9. Six Sigma: A disciplined, data-driven approach and methodology for eliminating defects (driving toward six standard deviations between the mean and the nearest specification limit) in any process - from manufacturing to transactional and from product to service.
  10. Design Capacity: The theoretical maximum output of a system in a given period under ideal conditions.
  11. Location Analysis: proximity to customers, transportation, source of labor, community attitude, proximity to suppliers, and many other factors.

2 / 27 The technique for determining location decisions.

  1. Line Processes: A type of process used to produce a large volume of a standardized product. Limited customization and high volume
  2. Batch Processes: A type of process used to produce a small number of products in groups or batches based on customer orders or specifications. High customization moderate volume
  3. Project Processes: A type of process used to make a one-at-a-time product exactly to customer specifica- tions. Most custom and lowest volume
  4. Continuous Processes: A type of process that operates continually to produce a high volume of a fully standardized product.
  • No customization and as high a volume as possible
  1. Bottleneck: Longest task in the process.
  2. Flexible Manufacturing System (FMS): A type of automated system that combines the flexibility of intermittent operations with the efficiency of continuous operations.
  3. Output/Input Control: A technique for monitoring the flow of jobs between work centers.

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  1. Just-in-Time ( JIT): A philosophy designed to achieve high-volume production through elimination of waste and continuous improvement. Based on a "pull" system rather than a "push" system. The three elements are just-in-time manufacturing, total quality management, and respect for people.
  2. Kanban card: A card that specifies the exact quantity of product that needs to be produced.
  3. Tier One Suppliers: Supplies materials or services directly to the processing facility. These are the suppliers that put products in specific containers or packages. Internal Functions companies
  4. Tier Two Suppliers: Directly supplies materials or services to a tier-one supplier in the supply chain. Suppliers of the specialty materials for the tier one suppliers to be able to produce the packaging necessary for ditterent products. Think cardboard, plastic, glass, chemicals.
  5. Tier Three Suppliers: Directly supplies materials or services to a tier two supplier in the supply chain. These are companies that extract raw materials. Oil, raw chemical materials, wood.
  6. Capacity Requirements Planning (CRP): Determines the labor and machine resources needed to fill the open and planned orders generated by the MRP.

5 / 27 Basically, checking if there is enough work scheduled for operations

  1. Enterprise Resource Planning (ERP): Large software programs used for planning and coordinat- ing all resources throughout the entire enterprise.
  2. Aggregate Plans - IN A BROAD SENSE: Includes the budgeted levels of finished products, inventory, backlogs, workforce size, and aggregate production rate needed to support the marketing plan. Marketing Plan, TO, Operating and engineering Plans, TO, Start or revision of the strategic business plan.
  3. Third-Party Logistics (3PL): Businesses used to outsource elements of the company's distribution and fulfillment services. They typically specialize in integrated operation, warehousing and transportation services which can be scaled and customized to customers' needs based on market conditions, such as the demands and delivery service requirements for their products and materials.
  4. Supply Chain Operations Reference model (SCOR): the world's leading supply chain framework, linking business processes, performance metrics, practices and people skills into a unified structure. The goals are to increase the speed of system implementations, support organizational learning goals, and improve inventory turns.
  5. Project Life Cycle Phases: Conception, Feasibility/Study analysis, Planning, Execution, Termination
  6. Master Production Schedule (MPS): A plan for individual commodities to be produced in each time period.It is usually linked to manufacturing where the plan indicates when and how much of each product will be demanded. It gives production, planning, purchasing, and top management the information needed to plan and control the

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  1. Continuous improvement: A philosophy of never-ending improvement.
  2. Control charts: Charts used to evaluate whether a process is operating within expectations.
  3. Crossdocking: Eliminates storage and order picking functions of a distribution warehouse.
  4. Customer defined quality: an integrated ettort designed to improve quality performance at every level of the organization.
  5. Deming Prize: Japanese award for companies to recognize ettorts in quality improvement.
  6. Distribution management: Responsible for the movement of material from the manufacturer to the customer.
  7. Distribution warehouse: Used for short term storage, consolidation, and product mixing.
  8. Distributor crossdocking: the receiving and consolidating of inbound products from ditterent vendors into a multi-SKU pallet.
  9. E-commerce: Using the internet and web to do business.
  10. E-distributors: Independently owned net marketplaces having catalogs representing thousands of suppliers and designed for spot purchases.
  11. E-purchasing: Companies that connect online MRO suppliers to businesses that pay fees to join the market, usually for long term contractual purchasing.
  12. Early supplier involvement (ESI): Involvement of critical suppliers in new product design.

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  1. Electronic data interchange (EDI): A form of computer to computer communications that enables sharing business documents.
  2. Electronic requests for quotes (eRFQs): An electronic request for a quote on goods and services.
  3. Electronic storefront: online catalogs of products made available to the general public by a single supplier
  4. Exchanges: Marketplaces that focus on spot requirements of larger firms in a single industry
  5. External Failure costs: Costs associated with failures that occur at the customer site.
  6. Extranets: intranets that are linked to the internet so that suppliers and customers can be included in the system.
  7. Fitness for use - TQM: How well the product performs its intended purpose.
  8. Flowchart: A schematic of the sequence of steps involved in a process.
  9. Forward integration: Owning or controlling the channels of distributions
  10. General warehouse: used for long term storage
  11. Green supply chain management: Focuses on the role of the supply chain with regard to its impact on the environment.
  12. Histogram: A chart that shows frequency distribution of observed values of a variable.
  13. Incoming inspection: verifies the quality of incoming goods
  14. Industry consortia: Industry owned markets for purchase of direct inputs from limited number of suppli- ers.

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  1. Postponement: Strategy shifts production ditterentiation closer to the consumer by postponing final con- figuration
  2. Prevention costs: Costs associated with preventing poor quality/defects from occurring.
  3. Price and availability: Current prices and whether the quantity is available when needed.
  4. Psychological criteria - TQM: way of defining quality, focuses on judgement of what constitutes product or service excellence.
  5. Purchase order: legal document committing to buy goods and providing details of purchase.
  6. Quality at the source: best to uncover problems at source and correct it.
  7. Quality Circle: Team of volunteer production workers and supervisors who meet regularly to solve quality issue.
  8. Quality function deployment (QFD): tool to translate preferences of the customer into specific technical requirements.
  9. Radio frequency identification (RFID): unpowered microchips used to transmit encoded info through antennae
  10. Reliability: probability of part, product or services will perform as intended.
  11. Requisition request: indicates the need for an item.
  12. Retail crossdocking: sorting product from multiple vendors onto outbound trucks headed for specific stores.

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  1. Robust design: A design that results in a product that can perform over a wide range of conditions.
  2. Sales revenue model: a means of selling goods, information, or services directly to consumers.
  3. Scatter diagram: Graphs that show how two variables relate.
  4. Sourcing strategy: A plan indicating suppliers to be used when making purchases.
  5. Subscription revenue model: a web site that charges a subscription fee for access to its contents and services.
  6. Supply Chain: All the activities involved in delivering a finished product or service to customer
  7. Supply chain management (SCM): The speed at which product moves through a pipeline from the manufacturer to the customer. Coordinates and manages all the activities of the supply chain Management of the flow of materials from suppliers to customers in order to reduce overall cost and increase responsiveness to customers.
  8. Supply chain velocity: The speed at which product moves through a pipeline from manufacturer to the customer.
  9. Support Services - TQM: Quality defined in terms of the support provided after the product services is purchased.

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  1. Capacity utilization: Percentage measure of how well available capacity is being used.
  2. Decision tree: Modeling tool used to evaluate independent decisions that must be made in sequence.
  3. Design capacity: the maximum output rate that can be achieved under ideal conditions
  4. Diseconomies of scale: A condition in which the cost of each additional unit made increases.

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  1. Economies of scale: A condition in which the cost of each additional unit made decreases.
  2. Effective capacity: maximum output rate under normal conditions, lower than design capacity. The capacity a firm expects to achieve given its current operating constraints.
  3. Expected value: a weighted average of chance events, where each chance event is given a probability of occurrence.
  4. Factor rating - Location Analysis: a procedure that can be used to evaluate multiple alternative locations based on a number of selected factors.
  5. Focused factories: Facilities that are small specialized and focused on narrow set of objectives. Basically, a large facility that is divided into smaller specialized facilities that have separate operations, competitive priorities, technology, and workforce
  6. Globalization - Location Analysis: the process of locating facilities around the world. This is all about the costs of labor and outsourcing making labor more competitive. Also, the fact that other cultures have ditterent value systems that need to be understood and leveraged to make the business successful.
  7. Load-distance model - Location Analysis: a procedure for evaluating location alternatives

16 / 27 Kanban Production. Small lot sizes and quick set-ups. Uniform Plant Loading. Flexible Resources. Facility Layout.

  1. Multifunction workers: Capable of performing more than one job
  2. Poka-yoke: Foolproof devices or mechanisms that prevent defects from occuring.
  3. Production cards: A Kanban card that authorizes production
  4. Pull system: JIT system based on a pull rather than a push system.
  5. Respect for people: An element of JIT that considers human resources as an essential part of the philosophy
  6. Setup costs: Costs incurred when setting up production equipment
  7. Simplicity: The simpler a solution the better it is.
  8. Single source suppliers: Suppliers that supply an entire family of parts to a manufacturer.
  9. Small lot production: The ability to produce small quantities of products
  10. Types of waste: Material, energy, time and space
  11. Uniform plant loading: A constant production plan for a facility with a given planning horizon.

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  1. Visible: Problems must be visible to be identified and solved.
  2. Waste: Anything that does not add value
  3. Withdrawal Cards: A Kanban card that authorizes withdrawal of material
  4. Automated order entry system: A method using telephone models to send digital orders to suppliers
  5. Backward integration: Owning or controlling the source of raw materials and components
  6. subcontracting: sending production work outside to another manufacturer or service provider
  7. Forecasting Capacity: Used in Capacity Planning. It is the forecasts of future demand. Long-term investment demand needs Short-term demand needs.
  8. Strategic Implications of Capacity Planning: strategic partnerships where the terms of the partnerships (either joint projects, supplier relationships, subcontracting relationships, etc.) require supply chain information sharing. a statement of long-range strategy and revenue, cost, and profit objectives.
  9. Capacity Planning Alternatives. Do Nothing.: - Subcontracting during times of excess

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  1. Location Analysis - Making Location Decisions: Step 1 - Identify Dominant Location Factors. Step 2 - Develop Location Alternatives. Step 3 - Evaluate alternative locations per location factor weighting.
  2. Center of Gravity Approach - Location Analysis: Minimizing the distance of the heaviest loads in order to reduce transportation costs of the heaviest loads.
  3. Transportation Method - Location Analysis: Software designed to find optimal locations based ott of many factors at once.
  4. Intermittent Operations - Process Selection: Specialty products or services that require a lot of time and ettort to produce, think a custom home. Project Process - Think Custom Homes. Batch Processes - Think College Classes.
  5. Repetitive Processes: Standardized product and high volume. Line Processes - Think Assembly lines Continuous Processes - Think oil refineries or water purification plants.
  6. Production FlowCharts: Squares -

20 / 27 Stages. Triangles - Signal a decision.

  1. Process Flowcharts: Squares = interactions with customers. Triangles = Situations customers must make decisions.
  2. Throughput - Process Performance Metrics: Standard time it takes for a product to move through the entire system in question.
  3. Process velocity - Process Performance Metrics: throughput/value added time value added time = time spent working on the product. Excludes time products spend between stages. Process velocity = 1 is a system that is always working on the products in ways that add value ( A perfect system, practically impossible).
  4. Productivity - Process Performance Metrics: output/input How well is the company converting its inputs into value adding products.
  5. Utilization - Process Performance Metrics: Time a resource is used/time a resource is available. This is specifically to understand how much of a particular resource is being used vs how much time a resource is available to be used.