Process
The step with the lowest capacity.
What is the bottleneck?
A technique developed by Shewhart to track performance.
What is Statistical Process Control?
Value calculated based on the probability of potential values.
What is expected demand?
This type of forecasting method is appropriate when there is limited data available.
What is qualitative forecasting?
The level of strategy that should be developed last.
What is the functional strategy?
The source of value according to lean philosophy.
What is the customer?
This measure must be greater than 1 for satisfactory performance.
What is the capability index?
The two strategies for deciding when to add capacity to a system.
What are the level and chase strategies?
The economic order quantity balances these two costs to achieve the lowest total cost.
What are order costs and holding costs?
A product development strategy based on the capabilities of the organization.
What is technology push?
These must be the same for all steps in a process to determine capacity.
What are units?
Tool(s) used to track the times to complete an order at a coffee shop.
What are x-bar and R charts?
This scheduling method can lead to missed due dates.
What is the Shortest Processing Time method?
Under a Q system, this can change based on the location of the supplier.
What is the reorder point?
This phenomenon causes increasing variability in a supply chain.
What is the bullwhip effect?
The four dimensions that an organization may compete on.
What are Cost, Quality, Flexibility, and Delivery?
The four quality associated costs
What are prevention costs, appraisal costs, internal failure costs, and external failure costs?
This is determined based on the likelihood of demand being less than expected.
One management decision that would impact the reorder point (for a Q system) and the Target (for a P system).
What is a) the service level or b) the order lead time?
A system-level framework for reducing pollution and waste.
What is a circular business model?
This order fulfillment strategy allows the most variety in product offerings.
What is Make to Order?
An impossible combination of Cp and Cpk values.
What is Cp<1 and Cpk>1?
The time span for production planning.
What is 6 months to 1 year?
This forecasting method is best when a trend is expected.
What is double exponential smoothing?
The calculation for how quickly an organization converts cash to product and back to cash.
What is (days of) Inventory + Accounts Receivable - Accounts Payable?