BL-BME-6303-LEC-1933T OPERATIONS MANAGEMENT

IN TH IN (TQM) For Tourism

BY: Grace Carticiano

PRELIM

This is a critical property of an activity or operation.

Attribute
The concept indicating that pooling of demand or other random variables reduces the
variance of the resulting aggregated variable.
Aggregation
Answer:

The visible light or sign that denotes the state of an operation (i.e., on, trouble or off.)
Andon
Answer:

The tangible and intangible goods, intellectual property, and goodwill that are listed under
the asset column in the balance sheet for a company.
Assets
Answer:

The amount of actual demand, orders or contracts that are in the pipeline for future sales.
Backlog
Answer:

is a similar process of generating manufacturing processes electronically.

CAM

This refers to equipment that is operated through the use of digital information rather than
human input.
 CNC
Answer:

The process by which a stream of cash is related to its value at present by discounting future
cash flows by an interest rate.
DCF
Answer:

The software allows all information of a part to be generated and stored electronically at a
computer terminal and transferred to other sites or machines.
CAD
Answer:

Goodwill associated with an acquisition of a company or asset.

Blue Sky
Answer:

PRELIM EXAM
______________ is purchasing from suppliers on a
Answer 1
contractual basis for a fixed period of time or
DIRECT MATERIALS PURCHASING
amount of product.
Operations that make products to inventory in
Answer 2
anticipation of customer demand--requires demand
MAKE-TO-STOCK
forecasts.
The amount inventory is less than what is on the Answer 3
"books". SHRINKAGE

Sourcing all the requirements for a particular part to Answer 4

one supplier is called single sourcing. SINGLE SOURCING

An approximate formula for buffer inventory as a

function of activity utilization, number of activity Answer 5
servers, and statistical coefficients of variation for P-K FORMULA
the demand and the process.
Sales minus the variable costs—the contribution of Answer 6
a sale to the fixed costs of an operation. CONTRIBUTION MARGIN

A formal contract between a union representing

Answer 7
employees in a plant or firm and the company for
UNION CONTRACT
whom the employees work.
Probability that customer demand will not exceed Answer 8
inventory for an order cycle. SERVICE LEVEL
The principle of stopping work (or the line) when
Answer 9
there is a quality problem--the process for
JIDOKA
correcting that problem.
Operations that make products or deliver services
Answer 10
only to customer order--no finished goods
MAKE-TO-ORDER
inventory.
Answer 11
The ratio of the setup time to the process flow time.
SETUP TIME EFFICIENCY

Fraction of total demand satisfied by inventory on Answer 12

hand. FILL RATE

Gross profit less administrative (SG&A) and Answer 13

development (ER&G) expenses. OPERATING INCOME

A term used to indicate that an operation adheres to

the Toyota Production System and has achieved the
Answer 14
level of quality, productivity, and customer
LEAN
satisfaction associated with application of that
system.
A system for utilized in product development where Answer 15
part of the specifications of the product is the cost. TARGET COST

This implies that through buffers and inventory,

Answer 16
processes in a product line can operate relatively
DECOUPLING
independently of the each other.
_______________ is an ordered listing of all the Answer 17
parts in a finished product. BILL OF MATERIAL (BoM)

A card that signals the replenishment requirements Answer 18

in a production process. KANBAN

In probability theory the mean value expected at

Answer 19
any time or over a specified set of random
EXPECTED VALUE
variables.
The process of repeatedly asking why until the root Answer 20
cause of the problem is found. FIVE WHYs

Sourcing more than one supplier for the same part Answer 21
or system. MULTIPLE SOURCING

Name of traditional problem and solution

in operations management dealing with single order Answer 22
quantity optimization such as newspaper and other NEWSVENDOR
spoilable goods.
The value of an operation or entity at the end of the Answer 23
time period considered. TERMINAL VALUE

This term denotes the process and/or entities that

Answer 24
take manufactured products and make them
DISTRIBUTION
available to the ultimate customer.
This implies that aggregated demand would have
Answer 25
less variability than separate demands because of
CORRELATED DEMANDS
correlation among demands.
The process whereby teams attack a manufacturing
Answer 26
operation to make a series of quick, small steps to
KAIZEN
improve the process.
Measure of total processing cost of an activity or Answer 27
process. EFFICIENCY

The unit cost reduction that accrues from larger

Answer 28
volume production or distribution of similar
ECONOMIES OF SCALE
products or products produced in similar operations.
The cash cost of acquiring capital equipment or Answer 29
goods. CAPITAL EXPENDITURES (CAPEX. CAPITAL)

The basic concept is that a product is prohibited

Answer 30
from being taken out of its fixture if it has a quality
ERROR PROOFING (POKA YOKA)
defect as a result of the machine or operator action.
Feedback

Your answer is correct.

MIDTERM
 production system design
TheAnswer planning considers input requirements, conversion process and
output.
production system design
In operations, management capacity is referred as an amount of the input resources
relative output
available to produceAnswer over period of time.
relative output
system
For an organization, capacity would be the ability of a givenAnswer to produce
output within the specific time period.
system

After considering the forecast and long-term planning organization should

capacity planning
undertakeAnswer .
capacity planning

Capacity
Answer is defined as the ability to achieve, store or produce.
Capacity

expansive
Supply chain management is anAnswer and complex undertaking that relies
on each partner -- from suppliers to manufacturers and beyond -- to run well.
expansive
SCM enables companies to better manage demand, carry the right amount of inventory,
customer demand
deal with disruptions, keep costs to a minimum and meetAnswer in the most
effective way possible.
customer demand

Supply chain management (SCM) is the broad range of activities required to plan, control
and execute a product's flow from materials to production to distribution in the most
economical
Answer way possible.
economical
Supply chain management produces benefits such as new efficiencies, higher profits, lower
collaboration
costs and increasedAnswer .
collaboration
Effective supply chain management also requires change management, collaboration
alignment
and risk management to createAnswer and communication between all the
participants.
alignment

midterm exam:
_____________ is essential to be determining optimum utilization of resource and plays an
important role decision-making process, for example, extension of existing operations,
modification to product lines, starting new products, etc.
Select one:

a. Value planning

b. Marketing planning

c. Capacity planning

d. Strategic planning

Flexibility
Answer is a very important factory, so layout should be such which can be
molded according to the requirements of industry, without much investment.
Flexibility
A technique used to identify and measure overall capacity of production is referred to as
______________ capacity planning
Select one:

a. automated

b. informed

c. mechanical
________________is a process dating back to the '60s that most manufacturers use to ensure
sufficient materials and components are available for use in the manufacturing process by
taking inventory of what's on hand, identifying gaps and buying or making the remaining
items.
Select one:

a. initial planning

b. documentation

c. Material requirements planning

d. production planning

SCM can also improve quality of life by fostering job creation, providing a foundation for
economic growth, and improving standards of living.
Select one:

True

False

____________________ is utilized for capital intensive resource like plant, machinery, labor, etc.
Select one:

a. PEST

b. Competitive analysis

c. SWOT

d. Strategic capacity planning

If all the processing equipment and machines are arranged according to the sequence
product type
of operations of the product, the layout is called Answer of layout.
product type

In this type of layout the major component remain in a fixed location, other materials, parts,
tools, machinery, man power and other supporting equipment’s are brought to this location.
 Fixed Position Layout
Answer:

Fixed Position Layout

This product must be standardized and produced in large quantities in order to justify
product layout
theAnswer .
Strategic capacity planning is essential as it helps the organization in meeting the
______________ requirements of the organization.
Select one:

a. present

b. future

c. past

process layout
If the products are not standardized, theAnswer is more low desirable, because
it has creator process flexibility than other.
process layout

Supply chain planning starts with demand planning, a process for gathering historical data,
such as past sales, and applying analytics and statistical modeling to create a forecast or
demand plan that the sales department and operational departments -- such as
_________________ -- can agree on.
Select one:

a. consumer and marketing

b. manufacturing and consumer

c. manufacturing and operation

d. operation and marketing

e. manufacturing and marketing

SCM provides a major advantage for companies by increasing operating costs.

Select one:

True
 False

This layout is commonly suitable for non repetitive jobs.

Select one:

a. process layout

b. product layout

c. fixed position layout

This type of layout is used in the manufacture of boilers, hydraulic and steam turbines and
ships etc.
Fixed Position Layout
Answer:

Fixed Position Layout

In general, terms capacity is referred as _____________ production capacity, which can be

attained within a normal working schedule.
Select one:

a. minimum

b. maximum

c. average

The SCM process starts with figuring out what products customers want -- the early stages
of ______________, traditionally considered one of the two overarching categories of SCM,
along with supply chain execution.
Select one:

a. supply chain notarizing

b. supply chain planning

c. supply chain management

d. supply chain critiquing

SCM has significant impacts on both the enterprise and the consumer.
Select one:
 True

False

process layout
TheAnswer is particularly useful where low volume of production is needed.
process layout

Supply chain management activities cannot improve customer service.

Select one:

True

False

The _____________ determines the types and quantities of products to be manufactured.

Select one:

a. manufacturing

b. ideals

c. forecast

d. operations

Lowering costs improves a company's financial position by increasing profit and cash flow.
Select one:

True

False

By increasing customer satisfaction levels, enterprises are able to build and improve
customer loyalty.
Select one:

True
 False

raw material
TheAnswer is supplied at one end of the line and goes from one operation
to the next quite rapidly with a minimum work in process, storage and material handling.
raw material

In this type of layout, only one product of one type of products is produced in an operating
area.
Select one:

a. line layout

b. process layout

c. fixed position layout

________________ range capacity of an organization is dependent on various other capacities

like design capacity, production capacity, sustainable capacity and effective capacity.
Select one:

a. Long

b. short

c. average

_________________ ensures that operating cost are maintained at a minimum possible level
without affecting the quality.
Select one:

a. Planning

b. Deciding

c. Marketing

d. Implementing

______________ is the maximum output possible as indicated by equipment manufacturer

under ideal working condition.
 Select one:

a. Long Term Capacity

b. Design capacity

c. Production Capacity

Some companies perform demand planning as part of a formalized process called

________________.
Select one:

a. management plan

b. cost benefit analysis

c. marketing strategy

d. sales and operations planning

These SCM benefits are achieved through choosing effective strategies and appropriate
______________ to manage the growing complexity of today's supply chains.
Select one:

a. computation

b. monitor

c. software

FINAL
This is developed and trademarked by Japanese cultural anthropologist Kawakita Jiro, there are
several methods for organizing data based on the inherent structures of the data itself.

Answer: KJ Methods

is the desired result of a process.

Answer: control point

describes the activities for achieving the Vision.

Answer: Mission
should reflect the philosophy of the company throughout its life.

Answer: Guiding Principle

is a revolutionary framework which translates a company's vision and strategy into a coherent
set of performance measures.

Answer: Balanced Scorecard

Mission statement
TheAnswer may contain verb (design, train, maintain, etc.) + object (system,
strategy, etc.) + target value (how much, #, %, etc. This is optional) + time limit (should be
same time frame as Vision).
Mission statement

The simplest and possibly best definition of risk is: The possibility of loss, injury,
disadvantage or destruction.
Risk Management
Answer:

Japanese approach to mistake proofing.

Pokayoke
Answer:

Vision
The Mission is the cause and theAnswer the effect.

FINAL EXAM
Match the term with its descriptions.
_______________ is the time it takes for the
company to completely manufacture a product from Answer 1
start to end. Manufacturing lead time

This is the time you need to assemble or Answer 2

manufacture an item from beginning to end. Lead Time
This is when product/material that is low or at zero Answer 3
suddenly spikes. Lumpiness

Also called a product structure file, this includes the

details and quantities of the raw materials, Answer 4
assemblies, and components that make up each end Bill of Materials (BOM)
product.
Create suggestions for materials that you consider Answer 5
critical, expedited, and delayed. Running the MRP Calculations

These are the open orders for products that the

Answer 6
company currently possesses but has not yet
Scheduled Receipts (SR)
fulfilled.
This is the time during which you consider orders Answer 7
behind schedule. Past Due (PD)

This is the schedule of finished products that drives Answer 8

the MRP process. Master Production Schedule (MPS)

The quantity of orders during a time period that is Answer 9

expected to be received. Planned Order Receipts (POR)

This is a prediction from the marketplace about how

Answer 10
much probable demand there will be for a product
Forecast Demand
or service.
Determine what quantity is on hand, in an open
Answer 11
purchase order, planned for manufacturing, already
Identifying the Quantity Requirements
committed to existing orders, and forecasted.
This is the greatest amount of time that it takes to Answer 12
develop the product. Cumulative Lead Time

You generate this MRP calculation through

forecast scheduling using the number of produced
Answer 13
units, the amount of required material for each
Gross Requirements (GR)
produced unit, the current stock, and the ordered
stock /stock in transit.
______________ is a planning and control system Answer 14
for inventory, production, and scheduling. Material requirements planning (MRP)

In MRP, an item is the name or code number used Answer 15

for the event you’re scheduling. Item

Both forecast demand and customer orders feed into Answer 16

the master production schedule. Master Production Schedule (MPS)
These are the raw materials and the completed
Answer 17
products that you either have on hand or have
Inventory Records
already ordered.
This is the quantity of units you order during Answer 18
manufacturing. Lot Size

This refers to the specific information you receive

Answer 19
from customers and includes one-offs and regular
Customer Orders
ordering patterns.
_____________ is the demand for components,
parts, or incomplete assemblies (sometimes called Answer 20
sub-assemblies), such as phone screens or tires for Dependent demand
automobiles.
This is the amount you plan to order per time Answer 21
period. This is POR offset by the lead time. Planned Order Releases (PORL)

___________ are boundaries between different Answer 22

MRP planning periods. Time Fence

This is a visual depiction of the bill of materials,

Answer 23
showing how many of each part and how many sub-
Product Structure Tree
parts you need to produce the product.
________________ is the time it takes
Answer 24
from starting the purchase to receiving the
Ordering lead time
purchase.
_______________ is a desire for finished products, Answer 25
such as cell phones or automobiles. Independent demand

You generate this MRP calculation through master

Answer 26
scheduling using gross requirements, on-hand
Net Requirements (NR)
inventory, and other quantities.
This is the amount of inventory you’ve estimated to Answer 27
be available after you meet the gross requirements. Projected on Hand (POH)

Delineate the materials for the manufacturing

Answer 28
orders, purchase orders, and other reporting
Complete the Orders
requirements.
You use _________________ because an MRP
system recognizes and connects the level that an Answer 29
item appears in the product chain and uses it to plan Low -Level Code
the proper time to meet all of the system demands.
These are systems which identify only the changes Answer 30
between the new and old plan. Net-Change Systems