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IE 4302 - Ch 06
Dr. Loomis' Mgmt for IE
51
Engineering
Undergraduate 3
02/14/2011

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Cards

Term
planning characteristics (list)
Definition
1) systematic; 2) involves everyone
Term
centralized planning
Definition
system in which responsibility for planning lies with the organization's highest level
Term
decentralized planning
Definition
system in which responsibility for planning lies with workers and lower levels of the organization
Term
reasons planning is necessary (list)
Definition
1) pressure to reduce cycle times;
2) increased organization complexity;
3) increased global competition;
4) impact on other mgmt functions;
Term
cycle time reduction (CTR)
Definition
length of time required to complete a process and to be ready to begin anew
Term
economy of time
Definition
essentially, having faster inventory turns; grow successful through speed
Term
benefits of planning (list)
Definition
1) coordination of effort; 2) preparation for change; 3) development of performance standards; 4) development of managers;
Term
coordinating efforts (e.g.)
Definition
our firm gains competitive advantage based on a least-cost approach; thus our efforts are aimed at increasing productivity
Term
preparing for change (e.g.)
Definition
we anticipate another oil embargo. thus we're planning to produce smaller, gas-efficient cars
Term
developing performance standards (e.g.)
Definition
we plan to develop cars that get 40-50 mpg on the highway
Term
developing managers (e.g.)
Definition
These performance standards will be difficult to reach. Let's make sure our managers are adequately trained...
Term
performance standards
Definition
in management terms, expected behaviors as defined by plans
Term
scope
Definition
range of activities covered by a plan
Term
time frame
Definition
the period considered by a plan
Term
level of detail
Definition
the specificity of a plan
Term
strategic planning
Definition
comprehensive, long-term, and relatively general planning. focuses on broad, enduring issues to increase the firm's effectiveness
Term
operational planning
Definition
a focused, short-term, and specific form of planning that translates the broad concepts of the strategic plan into clear objectives for the short term.
Term
tactical planning
Definition
on the continuum between strategic and operational planning processes, a more specific form of panning than strategic planning
Term
single-use plans
Definition
plans that have a clear time frame for their utility
Term
standing plans
Definition
plans that have ongoing meaning and application to an organization
Term
Steps in planning process (list)
Definition
1) assess current conditions; 2) determine objectives; 3) identify actions required; 4) allocation resources; 5) assign responsibilities for implementation; 6) control the planning decision
Term
goals
Definition
future states or conditions that contribute to the fulfillment of the organization's mission
Term
objective
Definition
a specification of desired future conditions
Term
priority of objectives
Definition
...
Term
conflicts among objectives
Definition
...
Term
planning values
Definition
underlying priorities that determine planning objectives and decisions
Term
Juran's planning objectives (list, 1-5)
Definition
1. build awareness to opportunities for improving quality
2. set specific goals for quality improvement
3. organize resources to meet the goals
4. provide worker training
5. conduct projects to solve quality problems
Term
Juran's planning objectives (list, 6-10)
Definition
6. report on progress toward goals
7. give employees recognition
8. communicate results
9. keep score
10. institutionalize process of CI
Term
measures of service quality objectives (list, def., 1-5)
Definition
1. access: availability to customers
2. communication: clear descriptions to customers; answer questions
3. competence: proven expertise at task
4. courtesy: friendliness, respect for customer
5. credibility: believability, meeting promises
Term
measures of service quality objectives (list, def., 6-10)
Definition
6. reliability: error reduction
7. responsiveness: speed at meeting customer requests
8. security: maintaining customer safety and privacy
9. tangibles: physical appearance of workplace
10. knowing the customer: demonstrated capacity to listen to, respond to, and satisfy customer
Term
actions
Definition
specific, prescribed means to achieve the objective(s)
Term
forecast
Definition
a prediction of future events based on past and current data
Term
resources
Definition
financial, physical, human, time, or other assets of an organization
Term
"Total Factor Productivity" (TFP)
Definition
a measure of a firm's effectiveness in using its resources to create product values
Term
budget
Definition
a predetermined amount of resources linked to an activity
Term
variable budgeting
Definition
provides for the possibility that actual output deviates from planned output
Term
moving budgeting
Definition
preparation of a budget for a fixed period with periodic updating at fixed intervals
Term
implementation
Definition
the assignment of people and responsibilities for achieving a plan
Term
authority
Definition
the legitimate use or form of power stemming from the position, not from the person
Term
persuasion
Definition
the process of convincing workers of the value of a plan prior to implementation
Term
policies
Definition
written statements that reflect a plan's basic objectives and provide guidelines for selecting actions to achieve the objectives
Term
regulation
Definition
a standard procedure providing a set of instructions to implement a policy
Term
feedback
Definition
the process of corrective actions based on measurement
Term
quality planning
Definition
the activity of 1) determining customer needs and 2) developing products/processes required to meet those needs
Term
plan, do, check, act (PDCA)
Definition
four-step cycle: 1) plan quality improvement; 2) workers produce small version/batch of of product/procedure; 3) workers check results of pilot program; 4) workers implement complete process
Term
Shewart Cycle
Definition
same as PDCA
Term
concept to customer
Definition
the period between the time a product is first considered and the time it is sold to the customer
Term
re-engineering
Definition
fundamental rethinking and radical redesign...
Term
the 3% rule
Definition
a key concept in cycle time reduction that states that only 3 percent of the elapsed time for a process is actually need to complete the activity
Term
American Customer Satisfaction Index (ACSI)
Definition
... looks at seven sectors of economy: manufacturing nondurables; manufacturing durables; transportation, communications, and utilities; retail; finance and insurance; services; and public administration and government
Term
methods to control implementation of plan
Definition
pareto charts, fishbone charts, flow charts, run charts
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