MGT 227 EXAM 2 STUDY GUIDE
lead time - Answers - the time needed to respond to a customer order
make to stock - Answers - a production environment where the customer is served "on-
demand" from finished goods inventory.
make-to-order - Answers - a production environment where the product is built directly
from raw materials and components in response to a specific customer order.
assemble to order - Answers - a production environment where preassembled
components, subassemblies, and modules are put together in response to a specific
customer order.
engineer to order - Answers - the firm works with the customer to design the product,
which is then made from purchased material, parts, and components.
project center - Answers - a location where project-related resources and information
are centralized. This can include project plans, timelines, budgets, and other project-
related documents and materials.
customer order decoupling point - Answers - where inventory is positioned in the supply
chain
work center - Answers - often referred to as a job shop, a process structure suited for
low-volume production of a great variety of nonstandard products. Sometimes referred
to as departments and are focused on a particular type of operation.
manufacturing cell - Answers - groups dissimilar machines to work on products that
have similar shapes and processing requirements.
assembly line - Answers - a setup in which an item is produced through a fixed
sequence of workstations, designed to achieve a specific production rate.
continuous process - Answers - a process that converts raw materials into finished
product in one continuous process.
service triangle - Answers - the customer is the center of the service strategy, the
support systems, and the employees who serve him/her.
service package - Answers - a bundle of goods and services that is provided in some
environment
, service guarantee - Answers - a promise of service satisfaction backed up by a set of
actions that must be taken to fulfill the promise.
3 service designs - Answers - Production Line - pioneered by McDonald's, treats the
delivery of fast food as a manufacturing process rather than a service process, the
orientation is toward the efficient and quick production of the food.
Self Service - can be enhanced by having the customer take a greater role in the
production of the service, it puts customers in control.
Personal Attention - relies on developing a relationship between the individual
salesperson and the customer or virtually scripted and keeps track of the guest's
personal preferences.
buffering - Answers - a storage area between stages where the output of a stage is
placed prior to being used in a downstream stage.
blocking - Answers - the activities in the stage must stop because there is no place to
deposit the item just completed.
starving - Answers - the activities in a stage must stop because there is no work.
bottleneck - Answers - a resource that limits the capacity or maximum output of the
process.
Little's Law - Answers - states a mathematical relationship between throughput rate,
flow time, and the amount of work-in process inventory, can be used to analyze simple
systems.
cycle time - Answers - the elapsed time between starting and completing a job.
throughput - Answers - the output that the process is expected to produce over a period
of time.
six sigma - Answers - a statistical term to describe the quality goal of no more than 3.4
defects out of every million units. Also refers to a quality improvement philosophy and
program.
Defects per million opportunities (DPMO) - Answers - a metric used to describe the
variability of a process (includes number of defects, number of opportunities, and
number of units)
fishbone diagram - Answers - used to structure or map the key problems to be
investigated and provide a working initial hypothesis as to the likely solution to these
problems.
lead time - Answers - the time needed to respond to a customer order
make to stock - Answers - a production environment where the customer is served "on-
demand" from finished goods inventory.
make-to-order - Answers - a production environment where the product is built directly
from raw materials and components in response to a specific customer order.
assemble to order - Answers - a production environment where preassembled
components, subassemblies, and modules are put together in response to a specific
customer order.
engineer to order - Answers - the firm works with the customer to design the product,
which is then made from purchased material, parts, and components.
project center - Answers - a location where project-related resources and information
are centralized. This can include project plans, timelines, budgets, and other project-
related documents and materials.
customer order decoupling point - Answers - where inventory is positioned in the supply
chain
work center - Answers - often referred to as a job shop, a process structure suited for
low-volume production of a great variety of nonstandard products. Sometimes referred
to as departments and are focused on a particular type of operation.
manufacturing cell - Answers - groups dissimilar machines to work on products that
have similar shapes and processing requirements.
assembly line - Answers - a setup in which an item is produced through a fixed
sequence of workstations, designed to achieve a specific production rate.
continuous process - Answers - a process that converts raw materials into finished
product in one continuous process.
service triangle - Answers - the customer is the center of the service strategy, the
support systems, and the employees who serve him/her.
service package - Answers - a bundle of goods and services that is provided in some
environment
, service guarantee - Answers - a promise of service satisfaction backed up by a set of
actions that must be taken to fulfill the promise.
3 service designs - Answers - Production Line - pioneered by McDonald's, treats the
delivery of fast food as a manufacturing process rather than a service process, the
orientation is toward the efficient and quick production of the food.
Self Service - can be enhanced by having the customer take a greater role in the
production of the service, it puts customers in control.
Personal Attention - relies on developing a relationship between the individual
salesperson and the customer or virtually scripted and keeps track of the guest's
personal preferences.
buffering - Answers - a storage area between stages where the output of a stage is
placed prior to being used in a downstream stage.
blocking - Answers - the activities in the stage must stop because there is no place to
deposit the item just completed.
starving - Answers - the activities in a stage must stop because there is no work.
bottleneck - Answers - a resource that limits the capacity or maximum output of the
process.
Little's Law - Answers - states a mathematical relationship between throughput rate,
flow time, and the amount of work-in process inventory, can be used to analyze simple
systems.
cycle time - Answers - the elapsed time between starting and completing a job.
throughput - Answers - the output that the process is expected to produce over a period
of time.
six sigma - Answers - a statistical term to describe the quality goal of no more than 3.4
defects out of every million units. Also refers to a quality improvement philosophy and
program.
Defects per million opportunities (DPMO) - Answers - a metric used to describe the
variability of a process (includes number of defects, number of opportunities, and
number of units)
fishbone diagram - Answers - used to structure or map the key problems to be
investigated and provide a working initial hypothesis as to the likely solution to these
problems.
