& Definitions Study Guide for the Objective
Assessment|Rationales Latest Updated 2026 A+ Graded
Total Quality Management (TQM)
Process developed to stress management's responsibility for quality.
Chase Aggregate Plan
A plan that produces what is needed for each week, month, and/or year.
Aggregate Plan
Preferable when a company produces custom or special purpose equipment, one-of-a-kind
items, or highly perishable products.
Disadvantages of Aggregate Plan
Can be expensive; constantly changing short term capacity.
Outsourcing Distribution
Considered when a company determines that distribution is no longer a core function.
Scheduling Labor Example
Scheduling employees in a restaurant during a busy weekend versus a non-busy weekend.
Chase Demand
Changing workforce levels so that production matches demand.
Hybrid Aggregate Plan
Combination of the level and chase strategies.
Level Aggregate Plan
Constant plan that maintains a constant workforce and sets capacity to accommodate average
demand.
Disadvantages of Level Aggregate Plan
Builds inventory and/or uses back orders; extra inventory ties up money.
Actual Output/Standard Output
, Indicates how many burgers are being made and what the standard is for that restaurant.
Appraisal Costs
Costs incurred in the process of uncovering defects, including quality inspections and product
testing.
Assignable Causes of Variation
Causes that can be identified and resolved, such as poor material quality.
Backward Scheduling
Scheduling method that determines when the job must be started to complete it on the due
date.
Batch Process
Process used to produce a small quantity of products in groups based on customer orders.
Behavioral Feasibility of a Job
The degree to which an employee derives intrinsic satisfaction from doing the job.
Bill of Material (BOM)
File used to determine the materials needed to build a product.
Block Plan
Schematic showing the placement of resources in a facility.
Bottleneck in a Flowchart
The longest task in the process that takes a long time.
Budget Projections
Element of a financial plan, a component from accounting.
Just-in-Time (JIT)
A system that adds value by reducing waste.
C pk Measure
Measures how close one is to a target and how consistent one is with average performance.
Capacity-Based Options
Options that allow the firm to change its current operating capacity.