Basic function of Six Sigma. Measures the process potential and performance of processes. The
higher the range of Cpk, the improved is the ability of the process to complete its necessities. Uses
both the process variability and the process specifications to determine whether the process is
"capable." ✔✔Process Capability Index (Cpk)
A disciplined, data-driven approach and methodology for eliminating defects (driving toward six
standard deviations between the mean and the nearest specification limit) in any process - from
manufacturing to transactional and from product to service. ✔✔Six Sigma
The theoretical maximum output of a system in a given period under ideal conditions. ✔✔Design
Capacity
The capacity a firm expects to achieve given its current operating constraints. ✔✔Effective
Capacity
proximity to customers, transportation, source of labor, community attitude, proximity to suppliers,
and many other factors. ✔✔Location Analysis
A type of process used to produce a large volume of a standardized product. ✔✔Line Processes
A type of process used to produce a small quantity of products in groups or batches based on
customer orders or specifications. ✔✔Batch Processes
A type of process used to make a one-at-a-time product exactly to customer specifications.
✔✔Project Processes
A type of process that operates continually to produce a high volume of a fully standardized
product. ✔✔Continuous Processes
Longest task in the process. ✔✔Bottleneck
A type of automated system that combines the flexibility of intermittent operations with the
efficiency of continuous operations. ✔✔Flexible Manufacturing System (FMS)
A technique for monitoring the flow of jobs between work centers. ✔✔Output/Input Control
The net increase created during the transformation of inputs into final outputs. ✔✔Value-Added
Layouts that combine characteristics of process and product layouts. ✔✔Hybrid Layouts
Table that reflects opinions of managers with regard to the importance of having any two
departments close together. ✔✔Relationship Chart (REL)
The shortest distance between two locations using north-south and east-west movements.
✔✔Rectilinear Distance
Table that gives the number of trips or units of product moved between any pair of departments.
✔✔From-To Matrix
,WGU C215 Operations Management Objective Assessment Prep
Guide & Terminologies Combo Study Guide 2024-2025
Schematic showing the placement of resources in a facility. ✔✔Block Plan
The average of the observation times for each of the work elements. ✔✔Mean Observed Times
The mean observed time multiplied by the performance rating factor by the frequency of
occurrence. ✔✔Normal Time
The length of time it should take a qualified worker using appropriate process and tools to complete
a specific job, allowing time for personal fatigue and unavoidable delays. ✔✔Standard Time
A philosophy designed to achieve high-volume production through elimination of waste and
continuous improvement. Based on a "pull" system rather than a "push" system. The three elements
are just-in-time manufacturing, total quality management, and respect for people. ✔✔Just-in-Time
(JIT)
A card that specifies the exact quantity of product that needs to be produced. ✔✔Kanban card
A philosophy of neverending improvement. ✔✔Continuous Improvement
Supplies materials or services directly to the processing facility. ✔✔Tier One Suppliers
Directly supplies materials or services to a tier one supplier in the supply chain. ✔✔Tier Two
Suppliers
Directly supplies materials or services to a tier two supplier in the supply chain. ✔✔Tier Three
Suppliers
Management of the flow of materials from suppliers to customers in order to reduce overall cost
and increase responsiveness to customers. ✔✔Supply Chain Management (SCM)
, WGU C215 Operations Management Objective Assessment Prep
Guide & Terminologies Combo Study Guide 2024-2025
Determines the labor and machine resources needed to fill the open and planned orders generated
by the MRP. ✔✔Capacity Requirements Planning (CRP)
A system that uses the MRP, inventory record data, and BOM to calculate material requirements.
✔✔Material Requirements Planning (MRP)
Large software programs used for planning and coordinating all resources throughout the entire
enterprise. ✔✔Enterprise Resource Planning (ERP)
Includes the budgeted levels of finished products, inventory, backlogs, workforce size, and
aggregate production rate needed to support the marketing plan. ✔✔Aggregate Plans
Businesses to outsource elements of the company's distribution and fulfillment services. specialize
in integrated operation, warehousing and transportation services customized to customers' needs
based on the demands and delivery service requirements for their products and material
✔✔ThirdParty Logistics (3PL)
the world's leading supply chain framework, linking business processes, performance metrics,
practices and people skills into a unified structure. The goals are to increase the speed of system
implementations, support organizational learning goals, and improve inventory turns. ✔✔Supply
Chain Operations Reference model (SCOR)
Initiation, Planning, Execution and Closure. ✔✔Project Life Cycle Phases
A plan for produced in each time period such as production, staffing, inventory, etc.
linked to manufacturing where the plan indicates when and how much of each product will be
demanded.
It gives production, planning, purchasing, and top management the information needed to plan and
control the manufacturing operation. ✔✔Master Production Schedule (MPS)
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