Operations Management Terminology Quiz

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Questions and Answers

Which of the following describes the term 'net requirements'?

The total inventory on hand

The amount of inventory needed after sales

Total inventory needed for production

The actual amount needed in each time period (correct)

Infinite loading assigns jobs to work centers based on their capacity.

False

What is the purpose of gatekeeping in inventory management?

Screening returned goods.

In a flow system, jobs all follow the same ________.

sequence Signup and view all the answers

Match the following inventory costing methods with their descriptions:

FIFO = First-in, first-out LIFO = Last-in, first-out Weighted Average Cost = Average cost of inventory Specific Identification = Specific items are tracked individually Signup and view all the answers

Which of the following is NOT a waste in lean philosophy?

Employee training Signup and view all the answers

The Kanban system is part of the Toyota approach in production.

True Signup and view all the answers

The project life cycle begins with the ________ phase.

Definition Signup and view all the answers

What does Available-to-Promise (ATP) inventory represent?

Inventory that is immediately available for fulfilling customer orders Signup and view all the answers

Available-to-Promise inventory quantities include items that are in production.

False Signup and view all the answers

What is the main purpose of Available-to-Promise inventory in operations management?

To provide accurate information regarding inventory available for customer orders. Signup and view all the answers

The _______ inventory is monitored to ensure that customer order fulfillment is accurate.

Available-to-Promise Signup and view all the answers

Which of the following factors can affect Available-to-Promise inventory levels?

All of the above Signup and view all the answers

Match the following terms related to inventory management:

ATP = Quantities that can be promised to customers Safety stock = Extra inventory to prevent stockouts Holding cost = Cost incurred for carrying inventory SMED = System to reduce changeover time Signup and view all the answers

Just-in-Time (JIT) systems rely on high levels of Available-to-Promise inventory.

False Signup and view all the answers

What is one method companies use to calculate Available-to-Promise inventory?

By subtracting committed orders from on-hand inventory. Signup and view all the answers

What is the purpose of a Gantt chart?

To visualize loading and scheduling Signup and view all the answers

Johnson's rule is employed to increase the makespan in job processing on two machines.

False Signup and view all the answers

What does 'muda' refer to in operational terms?

Waste and inefficiency Signup and view all the answers

_______ is a technique used to signal the need for parts or materials in a manufacturing process.

Kanban Signup and view all the answers

Match the following concepts with their definitions:

CPM = Planning, coordinating, and controlling large-scale projects Scatter diagram = Shows the relationship between two variables Load reports = Compares known and expected future capacity requirements with projected availability Infinite loading = Assigning jobs without regard to the work center capacity Signup and view all the answers

What does the term 'available-to-promise inventory' refer to?

Inventory that can be promised to customers based on existing stock and scheduled production Signup and view all the answers

Forward scheduling is the method of scheduling that goes back in time from a current point.

False Signup and view all the answers

What is the primary function of enterprise resource planning (ERP)?

Integration of financial, manufacturing, and human resources Signup and view all the answers

Study Notes

Definitions

Low-level coding: Restructuring the bill of materials to align component occurrences at the lowest level.
Human resources: Hiring activities (recruitment, interviews, training) and layoff planning (outplacement).
Gantt chart: Visual aid for loading and scheduling.
CPM (critical path method): Planning, coordinating, and controlling large-scale projects.
Capacity requirements planning: Determining short-term capacity needs, converting quantity requirements into labor/machine needs.
Scheduling: Establishing the timing of equipment, facilities, and human activities.
Johnson's rule: Minimizing makespan for jobs processed on two machines.
Muda: Waste and inefficiency.
Planned-order releases: Planned order amounts in each time period, offset by lead time.
Forward scheduling: Scheduling ahead from a specific point in time.
Gross requirements: Total expected demand for an item or raw material.
Kanban: Manual system signaling the need for parts or materials.
Return on quality (ROQ): Approach evaluating financial return on quality investments.
Value stream mapping: Visual tool examining material/information flow.
Distribution Requirements Planning (DRP): Planning orders in a supply chain.
Infinite loading: Assigning jobs to work centers without considering capacity constraints.
Load reports: Comparing future capacity with projected capacity.
Enterprise resource planning (ERP): Integrating financial, manufacturing, and human resources on a single computer system.
Scatter diagram: Graph showing the relationship between two variables.
Order releases: Authorizations for executing planned orders.
Activity-on-arrow (AOA) Network diagram: Activities designated by arrows.
Process variability: Natural variability in a process.
Loading: Assigning jobs to processing centers.
Project champion: Person promoting and supporting a project.
Single-minute exchange of die (SMED): System for reducing changeover time.
Closed-loop supply chain: Manufacturer controlling forward and reverse product shipment.
Activities: Project steps consuming resources/time.
Pull system: Replacing materials based on demand.
Activity-on-node (AON) Network diagram: Activities designated by nodes.
Jidoka: Quality at the source (automatic machine stop for bad parts).
Net-change system: Continuously updating MRP records.
Flow-shop scheduling: Scheduling for flow systems (high-volume).
Dependent demand: Demand for components in finished good production.
Safety stock: Extra inventory reducing stockout probability.
Kaizen: Continuous improvement.
Holding (carrying) cost: Cost of keeping an item in inventory.

Additional Concepts

Work breakdown structure (WBS): Hierarchical listing of project tasks.
Planning reports: Data for assessing future material requirements.
PERT: Planning and coordinating large projects.
Available-to-promise (ATP): Inventory quantities available for customer orders.
Just-in-time (JIT): System for producing goods as needed.
Job-shop scheduling: Scheduling low-volume, varied systems.
Heijunka: Workload leveling, minimizing variations in production volume.
Channel/Server: Components in a service system (same meaning).
Master scheduling: Core of production planning & control.
Finite loading: Assigning jobs considering capacity.
Infinite loading: Assigning jobs regardless of capacity.
Projects: Unique, one-time operations.
Network (precedence) diagram: Graph of project activities' relationships.
Gatekeeping: Screening returned goods to prevent errors.
Flow system: High-volume systems with a consistent sequence.
Events: Project starting/finishing points.
Net requirements: Actual amounts needed.
Pegging: Identifying parent items connected to a material requirement.
p-chart: Monitoring proportion of defective items.
Load chart: Gantt chart showing machine/department loading/idle time.
Poka-yoke: Safeguards reducing errors in processes.
Cumulative lead time: Sum of lead times in a process.
Projected on hand: Expected inventory at the beginning of a period.
Lean operation: System using minimal resources and high quality goods/services.
Toyota Approach: Production methodology (Muda, Pull System, Kanban, Heijunka, Kaizen, Jidoka, Team Concepts).
Inventory costing methods: FIFO, LIFO, Weighted Average, Specific Identification

Business Processes and Cycle

Forms of business organization: Sole proprietorship, partnership, corporation, LLC.
Common approaches in order fulfillment: Engineer-to-Order (ETO), Make-to-Order (MTO), Assemble-to-Order (ATO), Make-to-Stock (MTS).
Project life cycle: Definition, Planning, Execution, Termination.
Elements of a productive system: Inputs, Transformation processes, Outputs, Feedback, Control mechanisms, Environment.
Steps in creating a supply chain: Plan, Source, Make, Deliver, Manage returns.
Different types of inventory: Raw materials, WIP, Finished goods, Tools, MRO supplies, Pipeline inventory.
Business cycle: Expansion, Peak, Contraction, Trough, Depression, Recovery.
Four basic steps in a cycle: Planning, Source, Make, Deliver.
Where to Inspect: Raw materials and purchased parts, finished products, before costly operations/irreversible procedures, before covering processes.

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Description

Test your knowledge of key operations management concepts through this quiz. Engage with terms related to project planning, scheduling, and resource management to deepen your understanding of the field. Perfect for students studying operations management or professionals looking to refresh their knowledge.