Shared Flashcard Set

Details

IT 371 Chapter 5
Exam
25
Business
Undergraduate 3
05/02/2011

Additional Business Flashcards

 


 

Cards

Term
Process
Definition
Any set of activities performed by an organization that takes inputs and transforms them into outputs ideally of greater value to the organization than the original inputs.
Term
Cycle time
Definition
The average time between completions of successive units in a process (this is the definition used in this book). The term is sometimes used to mean the elapsed time between starting and completing a job.
Term
Utilization
Definition
The ratio of the time that a resource is actually activated relative to the time that it is available for use.
Term
Buffering
Definition
A storage area between stages where the output of a stage is placed prior to being used in a downstream stage. Buffering allows the stages to operate independently.
Term
Blocking
Definition
The activities in the stage must stop because there is no place to deposit the item just completed.
Term
Starving
Definition
The activities in a stage must stop because there is no work.
Term
Bottleneck
Definition
A resource that limits the capacity or maximum output of the process.
Term
Make-to-order
Definition
A process that is activated only in response to an actual order.
Term
Make-to-stock
Definition
A process that produces standard products that are stored in finished goods inventory. The product is delivered quickly to the customer from the finished goods inventory.
Term
Hybrid
Definition
Combines the features of both make-to-order and make-to-stock. Typically, a generic product is made and stocked at some point in the process. These generic units are customized in a final process to meet actual orders.
Term
Pacing
Definition
Movement of items through a process is coordinated through a timing mechanism. Most processes are not paced, but assembly lines usually are paced.
Term
Productivity
Definition
The ratio of output to input. Taking the dollar value of the output and dividing by the dollar value of the inputs usually measures total factor productivity. Alternatively, partial factor productivity is measured based on an individual input and often is not calculated using dollar values (an example would be units/person).
Term
Efficiency
Definition
A ratio of the actual output of a process relative to some standard.
Term
Run time
Definition
The time required to produce a batch of parts.
Term
Setup time
Definition
The time required to prepare a machine to make a particular item.
Term
Operation time
Definition
The sum of the setup time and run time for a batch of parts that are run on a machine.
Term
Flow time
Definition
The average time that it takes a unit to move through an entire process. Usually the term lead time is used to refer to the total time that it takes a customer to receive an order (includes time to process the order, throughput time, and delivery time).
Term
Throughput rate
Definition
The output rate that the process is expected to produce over a period of time.
Term
Process velocity or throughput ratio
Definition
The ratio of the total flow time to the value-added time.
Term
Value-added time
Definition
The time in which useful work is actually being done on the unit.
Term
Total average value of inventory
Definition
The total average investment in raw material, work-in-process, and finished goods inventory. This is valued at the cost to the firm.
Term
Inventory turn
Definition
The cost of goods sold divided by the total average value of inventory.
Term
Days-of-supply
Definition
The number of days of inventory of an item. If an item were not replenished, this would be the numbers of days until the firm would run out of the item (on average). Also, the inverse of inventory turn expressed in days.
Term
Little's law
Definition
States a mathematical relationship between throughput rate, flow time, and the amount of work-in-process inventory. Flow time is equal to work-in-process divided by the throughput rate.
Term
Partial Factor productivity
Definition
measured based on an individual input, labor being the most common
Supporting users have an ad free experience!