# Shared Flashcard Set

## Details

Mgmt Sci Ch 1
Exam 1
37
09/12/2010

Term
 Analysis
Definition
 extracting larger meaning from data to support evaluation and decision making.   information dervies from analysis of data
Term
 Statistics
Definition
 the science of collecting, organizing, analyzing, interpreting, and presenting data
Term
 decision model
Definition
 logical or mathematical representation of a problem or business solution   establishes relationships between actions that decision maker might take and results that they might expect, allowing them to preduct what might happen based on the model assumptions
Term
 statistical thinking
Definition
 philopsophy of learning and action for improvement that is based on the principles that:   all work occurs in a system of interconnected proicesses variation exists in all processes and understanding and reducing variation are keys to success.
Term
 process
Definition
 systematic ways of doing things that achieve desired results
Term
 common causes
Definition
 relationships that are not easily understood; people, tools, the environment; etc
Term
 special causes
Definition
 arise from external sources that are not inherent in the process
Term
 six sigma
Definition
 a business process improvement approach that seeks to find and eliminate causes of defects and errors, reduce cycle times and cost of operationsm improve productivity, better meet customer epxectations, and achieve higher asset use and returns on ivestment in manufacturing and service processes
Term
 DMAIC
Definition
 define, measure, analyze, improve, and control   six sigma's basis
Term
 metric
Definition
 unit of measurement that provides a way to objectively quantify performance
Term
 measurement
Definition
 act of obtaining data
Term
 measures
Definition
 refer to the numerical information that results from measurement   measures and indicators are numerical values associated with a metric
Term
 discrete measures
Definition
 countable
Term
 continuous measures
Definition
 concerned with the degree of conformance to specifications   length, time, or weight
Term
 defects per unit
Definition
 six sigma  common metric - number of errors per unit
Term
 errors per opportunity
Definition
 six sigma measurement - measure of quality; number of errors per opportunity
Term
 DPMO
Definition
 defects per million opportunities
Term
 balanced scorecard
Definition
 robert kaplan and david norton of harvard in response to the limitations of traditional accounting measures   purpose:  to translate strategy into measures that uniquely communicate your vision to the organization   four perspectives:  financial, internal, customer, innovation & learning
Term
 financial perspective
Definition
 measures the ultimate results that the business provides to its shareholders   profitability, revenue growth, ROI, asset utilization, operating margins, EPS, EVA, shareholder value, etc.
Term
 internal perspective
Definition
 focuses attention on the performance of the key internal processes that drive the business   quality levels, productivity, process yields, cycle time, cost and legal compliance
Term
 customer perspective
Definition
 focuses on customer needs and satisfaction as well as market share   includes service lvls, staisfaction ratings, repeat business, an other indicators such as complaints
Term
 innovation and learning perspectives
Definition
 directs attn to the basis for future success - the organzations people and infrastructure   includes patent filings, employee stisfaction, turnover, market innovation, training effectiveness, etc.
Term
 Lagging Measures
Definition
 o    Outcomes that tell what happened
Term
Definition
 o    Performance drivers that predict what will happen
Term
 Dashboard
Definition
 o    Monitors process performance o    Show how business processes are performing and provide real-time information for corrective action or maintenance purposes
Term
 Types of data
Definition
 o    Cross sectional – data that are collected over a single period of time o    Time series – data collected over time
Term
 Number of variables
Definition
 o    Univariable – single variable o    Multivariable – two or more (often related) variables
Term
 Categorical data
Definition
 o    Nominal data o    Sorted into categories according to specified characteristics o    Ex. City, employee rank o    Categories bear no quantitative relationship to one another
Term
 Ordinal data
Definition
 o    Ordered or ranked according to some relationship to one another o    Ex. NCAA basketball rakings o    Can be compared to one another o    Averages are generally meaningless, since they have no fixed units of measurement
Term
 Interval data
Definition
 o    Ordered o    Have a specified measure of the distance between observations but have no natural zero o    Ex. Celsius
Term
 Ratio data
Definition
 o    Have a natural zero o    Ex. Sales per city
Term
 Population
Definition
 o    Consists of all items of interest for a particular decision or investigation
Term
 Sample
Definition
 o    Subset of a population
Term
 Statistics
Definition
 o    Summary measures of population characteristics computer from samples
Term
 Descriptive statistics
Definition
 o    The process of collection, organization, and description of data
Term
 Statistical inference
Definition
 o    Refers to the process of drawing conclusions about unknown characteristics of a population based on sample data
Term
 Predictive statistics
Definition
 o    Developing predictions of future values based on historical data
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