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39 Cards in this Set

  • Front
  • Back

What are the Costs of acheiving good quality?

Prevention costs : quality systems, training



Appraisal Costs: Inspection and Testing


What are the Costs of Poor Quality?


Internal : Scrap, rework, downtime, lower price



External: lower customer satisfaction


Warrenty claims


Lost Sales

What is an industrial engineer?

Industrial Engineers conduct studies and develop and supervise programs to achieve the best use or equipment and human resources.


What is Industrial Engineering?

Industrial Engineering is concerned with the design, installation and improvement of systems of people, equipment and materials.

What is a model? When is it used?

A model is an aspect of the real world represented by images, graphs, or equations.



A model is used to analyze a problem


-communication -training and instruction


-Prediction -Decision making

What is Total Quality Management?

TQM ensures products and services have the quality they were designed for. Company wide participation is required.

Principles of TQM

customer orinetened


leadership


strategic planning


employee responsibility


continous improvement


Cooperation


Statistics

Why is it important to estimate S(t) of a process

- for production planning


(layout, cost control, scheduling, wage rates,
number of machines and workers)


Define Standard time

The amount of time it take a qualified, well trained operator working at a normal pace to complete a specific task.

What is a supply chain?

The network of organizations that extends downstream to consumers and upstream to suppliers

What are some benefits of SCM?

-reduce costs


-reduces uncertainty


-maintain inventory levels


-eliminate delays


-eliminate rush


-provide good customer services


-improve quality.

Name the 3 levels of decision making and provide an example of each

Longterm (strategic) -plant location



Medium term (tactical) - road upgrade



Short term (operational) -scheduling

what is the Parento Principle? (80/20 rule)

80% of all the problems in the system are related to 20% of the items.



20% of the items are worth 80% of the value.



Describe the Classes in ABC analysis and how their inventory is managed

Class A requires tight control, continuous inventory system(80% value)



Class B recieves relaxed control, periodic system(15% of value)



Class C minimal control, periodic system(5% of value)

When is the Basic Economic Order Quantity Model used?

When:


Demand is constant


lead time is constant


Order quantity is received all at once.

When is it appropriate to use the Production Order Quantity Model (Non-instantaneous)?

When:


-order is received gradually over time.


-inventory levels drop and rise simultaneoulsly


-when inventory user is also the producer.



What are the properties of a Periodic Inventory System?

-time between orders are constant


-the order size varies


-normally requires a larger safety stock


-When demand and lead time are fixed order quantity is fixed.

What is Statistical Process Control?

the act of inspecting a random sample of outputs of a process and deciding whether it is in control.

What is acceptance sampling ?

inspecting a random sample of products and deciding whether or not to accept the entire batch.

Describe the two types of variations that can occur in production.

Natural variations: unavoidable and are due to slight differences in materials, machines, tools, workers, etc



Assignable variations: cause can be identified and eliminated such as misadjusted equipment, poor material, untrained worker

Define the quality measures used in SQC

Variables - measurable (weight, volume, length, time)



Attributes - countable - yes or no question (color, taste, smell)

What statistical measurements are often used to describe a process?

Mean, range and standard deviation

Describe the uses and properties of control charts.

-Shows whether a sample of data falls within the common range of variation (UCL, LCL)


-A process is out of control when one sample falls outside the control limits


Provide the two types of control charts for variables and what they are used for.

- x-bar chart (mean): monitors the change in the mean of a process



- R-chart (variability): monitors the variability of a process

Provide the two types of control charts for attributes and what they are used for.

C-charts - displays the actual number of defects



P-charts - displays the proportion of defects items in a sample

What does c-bar refer to in a c-chart?

The mean number of defects per unit


(this is the CL on the chart)



note: c-bar = sigma for Poisson distribution

What does p-bar refer to in a p-chart?

The proportion of defective units in a sample


(this is the CL on the chart)

Describe process capability.

The ability of a process to meet design specification.

How can the Process Capability Ratio (Cp) be interpreted.

Cp = 1: variability meets specifications



Cp < 1: variability is outside specifications



Cp > 1: variability is tighter than specifications

How can Cp lead to mistakes? What is an alternative?

-When process variability is not centered on the specification range.


-Cpk can be used.

What is an operating characteristic curve?

A graph that shows the probability of accepting a batch at various proportions of defects.

What is the purpose of inventory management?

To determine how much to order and when to order to keep enough inventory to meet customer demand and reduce cost.

Describe the two forms of demand.

-Dependent: Demand for items that are used internally to produce a final product



-Independent: Demand for final products

Describe the two Inventory Control Systems

-Continuous (fixed order quantity): order is placed for the same amount whenever inventory decreases below a certain point



-Periodic (fixed time): order is placed after a specific time period for different amount

What do the variables p and d stand for in the Production order Quantity system?



What about Q/p and (Q/p)d?

p (Production rate) = daily rate which the order is received (units/day)



d = daily demand



Q/p (Length of production run) = time required to receive an order



(Q/p)d = amount of inventory used during the time it takes to receive an order

How can you find optimal production with 2 decesion variables graphically

-Make a graph of (x1) vs (x2)


-Plot each contraint


-The area that is bounded by the axises is feasible


-Plot the objective function


-Intersection is optimal

What is a binding constraint?

When the optimum value for a decision variable is equal to the constraint.

Define slack and surplus.

Slack is when the LHS


Surplus is when LHS>RHS

Define shadow price

Amount which the value of objective function (profit) would change with one unit change in RHS (capacity of plant)