LOCATION

RATING
1. In this technique, first of all an organization needs to identify the factors that influence its location
FACTOR decision. Next, each factor is provided a weight between ‘0’ to ‘1’ according to the level of importance,
TECHNIQUE
where ‘0’denotes least important and ‘1’denotes most important.

SUPPLY 2. It refers to the system of organizations, people, activities, information and resources involved in moving
CHAIN
a product or service from supplier to customer.

INVENTORY 3. _____________ can be defined as the amount of sales and gross profit dollars an inventory investment
PRODUCTIVITY
generates over a given period of time, usually a year.

MARKET 4. A principle of buying that refers to buying goods for taking advantages of favorable market situations.
PURCHASING
Purchases are not made to meet immediate needs but are acquired as per the future requirements.

SERVQUAL 5. It is a multi-dimensional research instrument designed to obtain feedback on an organization’s ability

to provide quality service to customers.

QUALITY 6. This refers to the ability of a product or service to consistently meet or exceeds stated requirements or
expectations of the customers

KAORU 7. He is considered as the Father of Japanese Quality. He developed the fishbone or the cause-and-effect
ISHIKAWA
diagram where users can see all possible causes of a result which can help for problem-solving and the
implementation of quality circles, which involve workers in quality improvement.

STATISTICAL 8. It is a statistical technique applied to the control of the processes with a certain degree of variability to
PROCESS
CONTROL ensure that processes meet the standard.

SYSTEMATIC 9. In this technique for designing a facility layout, a grid displays the ratings of the relative importance or
LAYOUT
PLANNING the relationship of the distance between different departments of an organization. This grid is also called
‘closeness rating chart’

OUTSOURCING 10. The business practice of hiring a party outside a company to perform services or create goods that were
traditionally performed in-house by the company's own employees and staff.

POKA YOKE 11. A Japanese term that means "avoid unexpected surprises" or "avoid blunders", or in English sometimes
referred to as “mistake-proof.

FREDERICK 12. He was known as the Father of Scientific Management who led to a new philosophy of production and
W. TAYLOR
inspection as primary means of quality control.
DESIGN FOR
MANUFACTURI 13.It is defined as the idea of modifying or improving the design and process of the product considering
NG (DFM) the company’s capabilities to manufacture the same easier, quicker, and less cost without compromising
the quality

PRODUCT 14. Enables us to understand the factors in connection with product development and design,
ANALYSIS
characteristics, and factors associated with different fields which are required before any product can
be manufactured.

WALTER
SHEWHART 15. He was an American statistician and known as the “father of statistical quality control”.

PROCESS
LAYOUT
16. Also called functional layout or batch production layout and is characterized by the grouping together
of similar machines, based upon their operational characteristics.

MATERIALS 17. It is defined as the planning, directing, controlling and coordinating those activities which are concerned
MANAGEMENT
with materials and inventory requirements, from the point of their inception to their introduction into
the manufacturing process.

JUST-IN-TIME 18. It is an inventory management method in which goods are received from suppliers only as they are
needed.

DESIGN FOR
ASSEMBLY
19. It focuses on reducing the number of parts and simplification processes in an assembly. Each
component in the design is examined; how it is to be oriented and moved for assembly

WILLIAM
EDWARDS
20. He was an American professor and statistician, who helped in Japan's recovery after World War II
DEMING through his statistical knowledge and methods in improving quality and productivity.

PARETO 21. It is often used to analyze data collected in check sheets by classifying problem areas according to the
DIAGRAMS
degree of importance.

AVERAGE 22. This refers to the sum of delays of ordering, processing, and transportation between the time an order
RESPONSE
TIME is placed at a customer zone and the time the order arrives at the customer zone

SPECULATION/ 23.A principle method of buying that refers to the buying of an asset or financial instrument with the hope
SPECULATIVE
BUYING that the price of the asset or financial instrument will increase in the future

QUALITY OF 24. Refers to the level to which goods and services meet their design specifications
CONFORMANCE

DESIGN FOR 25. It is a combination of Six sigma principles, methods on how the product has been designed, and
EXCELLENCE
(DFx) standards for quality contributing to the overall excellence of the company.
FIXED
POSITION
26. This type of facility layout is used to assemble products that are too large, heavy or fragile to move to
LAYOUT a location for completion

PUSH OR 27. A technique in inventory management/supply chain where stocks are produced on the basis of
BUILDING-TO-
STOCK (BTS) anticipated demand. Demand forecasting can be done via a variety of sophisticated techniques

MANUFACTUR 28. It is one of the key attributes of a system in manufacturing goods: ease of fabrication and/or assembly
ABILITY
is important for cost, productivity, and quality.

PRODUCT 29. This layout is also called straight line layout, where machinery is arranged in one line as per the
LAYOUT
sequence of production operations. Materials are fed into the first machine and finished products come
out of the last machine

MATERIALS 30. It is defined as the planning, directing, controlling and coordinating those activities which are concerned
MANAGEMENT
with materials and inventory requirements, from the point of their inception to their introduction into
the manufacturing process.

PHILIP B. 31. In the 1960’s, he introduced the philosophy of Zero-defect management which focused on employee
CROSBY
motivation and awareness and the expectation of perfection form each employee.

PROCESS 32. _______________ is the ability of the resources and process to produce a product which consistently
CAPABILITY
meets the design specifications set by the customer requirements and expectation

CONTROL 33. These are statistical process control tools used to monitor how a process changes over time.
CHARTS

INVENTORY 34. This pertains to how often the company replenishes inventory, higher value means that stocks are not
TURNOVER
sitting around a long time.

FLOWCHARTS 35. Tools which are a graphical representation of a process or step. These are best developed by having all
levels involved in the process.

SUPPLY CHAIN 36. It is described as the design and management of processes across organizational boundaries with the
MANAGEMENT
goal of matching supply and demand in the most cost-effective way.

CENTRE-OF-
GRAVITY 37. This technique emphasizes on transportation cost in the determination of facility location.
TECHNIQUE
PROCESS 38. A ____________ is the graphical representation of production activities performed by an organization.
CHART
It further facilitates a systematic analysis and demonstration of the entire production process

TRANSPORTAT 39. In simple words, _________________ evaluates multiple transportation routes of shipping goods from
ION
TECHNIQUE multiple origins to multiple destinations and finds or develops the least cost route

QUALITY OF
DESIGN
40. This refers to the intention of the producer or supplier to include or exclude certain features in a product
or service.