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146 Cards in this Set
- Front
- Back
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Quality
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The ability of a product or service to meet a customers needs
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Implications of Quality
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Company reputation
Product liability Global implications |
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Managing Quality
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Differentiation
Low Cost Response |
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Malcolm Baldrige National Quality award
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Named to a US company with excellent quality
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Cost of quality
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The cost of doing things wrong
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List Costs of quality
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Prevention- Training
Appraisal- Testing Internal Failure- Rework External- Lost goodwill |
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Leaders
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Deming
Juran Feigenbaum Crosby |
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ISO 9000
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A set of quality standards set by the ISO
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ISO1400
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Environmental management standard
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TQM
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Management of an entire organization so that it excels in all aspects important to the customer
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Deming's condensed 7 points
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Continuous Improvement
Six Sigma Employee Empowerment Benchmarking JIT Taguchi Concepts Knowledge of TQM tools |
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PDCA
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Plan, do, Check, Act
Continuous improvement |
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Six Sigma
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Program to save time, improve quality, and lower costs
99.9997% accurate |
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Kaizen
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Japanese word for ongoing process
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DMAIC
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Define
Measure Analyze Improve Control The Six Sigma Improvement Model |
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Employee Empowerment
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Moving responsibility down the ladder of the organization
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Quality Circle
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Group of employees meeting regularly w/a facilitator to solve work related problems
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Benchmarking
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Select demonstrated standards of performance to represent the best
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Techniques to build Employee empowerment
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Comm. networks that include employees
Open, supportive supervisors Move responsibility around the org. Build high morale organizations Create formal organizations structures |
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Steps for developing benchmarks
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Determine what to benchmark
Form a benchmark team Identify benchmark partners collect and analyze benchmarking information take action to match or exceed benchmark standards |
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JIT
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Cuts cost of quality
Improves quality Better quality means less inventory and a better, easier to employ JIT system |
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Quality Robust
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Products that are consistently built to meet customer needs despite adverse conditions
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QLF
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Math function that identifies all costs connected with poor quality
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Target oriented quality
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Continuous improvement to bring quality on target
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Taguchi concepts
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Quality robust
QLF Target oriented quality |
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Seven TQM tools
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Check sheets
Scatter diagrams Cause and effect diagrams Pareto Charts Flowcharts Histograms SPC |
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Control Charts
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Graphic presentations of process data over time, with limits
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SPC
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process used to monitor standards, make measurements and corrections
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Inspection
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Means to ensure that an operation is producing at a quality level
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Source Inspection
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Controlling or monitoring at the point of purchase- at the source
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poka yoke
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fool-proof
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Attribute inspection
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an inspection that classifies items as being either good or defective
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Variable inspection
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Classification of inspected items as falling on a continuum
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TQM in Services
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Operations manager plays significant role
process customer's expectations are standard Manager must exceed expectations |
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Service Recovery
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Training and empowering front line workers to solve a problem immediately
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Natural Variations
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Variation that affects every production process some way
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Assignable Variation
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Variation in a production process that can be traced to specific causes
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X bar chart
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Indicates changes in central tendency
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R-Chart
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Tracks the range within a sample
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central limit theorem
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Distributions of X bars will tend to follow a normal curve
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P-Chart
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A quality control chart that is used to control attributes
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C-Chart
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A quality control chart that is used to control the number of defects per unit of output
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Run Test
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a test used to examine the points in a control chart to see if nonrandom variation is present
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Process capability
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the ability to meet design expectations
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Cp
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A ratio for determining whether a process meets design specs.
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Cpk
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The proportion of variation (3 sigma) between the center of the process to the nearest spec. limit
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Acceptance sampling
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A method of measuring random samples of product against predetermined standards
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OC Curve
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A graph that determines how well an acceptance plan discriminates b/t good and bad lots
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Producer's risk
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the mistake of having a producer's good lot rejected
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Consumer's Risk
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The mistake of a customer's acceptance of a bad lot missed by sampling
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AQL
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The quality level of a lot considered good
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LTPD
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Quality level considered bad
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Type 1 error
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statistically, the probability of rejecting a good lot
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Type 2 error
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Probability of accepting a bad lot
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AOQ
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% defective in an average lot of goods inspected through acceptance sampling
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Process Strategy
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Organizations approach to transforming resources into g/s
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Process focus
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a production facility organized around a process to facilitate low-volume, high-variety, production
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Four process strategies
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Process focus
Repetitive Focus Product focus Mass customization |
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Repetitive focus
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A product oriented production process that uses modules
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Modules
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Parts or components of a product previously compared
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Product Focused
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A facility organized around products
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Mass customization
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Rapid, low cost production based on customer's desires
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BTO
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Produce to a customer rather than to a forecast
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BTO Challenges
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Product design must be fast, rapid, flexible and imaginative
Inventory management requires tight control Tight schedules can be run with only personnel responsive partners in the supply chain can yield effective collaboration |
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Crossover chart
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A chart of costs at the possible volumes for more than one process
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Focused processes
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Customers
products with similar attributes service technology |
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Flow diagram
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a drawing used to analyze movement of people or material
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Time function mapping
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A flow diagram with time added on the horizontal axis
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VSM
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Helps managers understand how to add value in the flow of material
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Process Charts
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use symbols to analyze the movement of people and materials
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Service blueprinting
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lends itself to a focus on the customer and the provider's interaction with the customer
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Flexibility
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ability to respond with little penalty in time, cost or customer value
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CNC
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Machinary with its own computer and memory
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AIS
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system for transforming data into electronic form (bar codes)
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RFID
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Wireless system in which integrated circuits send radio waves
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Process control
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use of info tech. to control a physical process
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vision systems
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systems that use video cameras in inspection roles
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Robot
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a flexible machine with great ability
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ASRS
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computer controlled warehouses
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AGV
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Electronically guided control cart
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FMS
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uses an automated work cell controlled by electronic signals
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CIM
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manufacturing system with integration
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Process redesign
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fundamental rethinking of business processes
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Capacity
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number of units a facility can hold
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Design Capacity
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the theoretical max output of a system in a given period under ideal conditions
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Effective capacity
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the capacity a firm can expect to acheive
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Utilization
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actual output as a percentage of design capacity
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Efficiency
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actual output as a percentage of effective capacity
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Capacity considerations
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forecast demand accurately
Understand the capacity and technology find the optimum operating level Build for change |
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Demand management
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scheduling customers
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Capacity Management
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scheduling the work force
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Break even analysis
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costs equal revenues
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contribution
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difference between selling price and variable costs
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revenue function
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function that increases by the selling price of each unit
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net present value
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means of determining the discounted value of a series of future cash reseipts
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Factors that affect location
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market economics
better international communications more rapid reliable travel ease of capital flow between countries differences in labor costs |
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Location strategy
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goal is to maximize the benefit to the firm
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Tangible costs
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readily identifiable costs that can be measured with some precision
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intangible costs
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costs that cannot be easily quantified
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factor rating method
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location method that instills objectivity into a process of identifying hard to evaluate costs
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clustering
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location of competing companies
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Methods of evaluating location alternatives
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factor rating
locational break even analysis center of gravity transportation model |
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locational break even
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cost volume analysis to make economic comparison b/t locations
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center of gravity
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mathematical technique used for finding best local
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transportation model
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solving a class of linear programming problems
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GIS
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Stores and displays info that can be linked to a geographic location
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Quality to the Customer
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User based
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Manufacturer Based Quality
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Conform to Standards
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ISO 9000 seeks through..
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Procedures
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QLF includes
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Customer dissatisfaction
Service Costs Warranty Costs Costs to society |
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Pareto Chart
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Organize important Errors
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Fish bone
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Cause and effect
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Control Chart data
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can be quickly compared to past data
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Inspection
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Happens in all stages of the process
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Goal of Inspection
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Detect bad process
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Ishikawa Diagram
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Detect factor responsible for flaws
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Chance causes
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Natural cause
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Control Chart for variables data
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Averages from small samples
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Purpose of X bar
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Determine change in central tendency
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SPC
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Display upper and lower limits, signal when a process is no longer in control
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Mean inside the control, Individual ones outside control
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In control, but incapable of establishing limits
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Natural Variation
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3 standard deviations above or below
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Which chart to use for Ideal something
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X bar and R chart both
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R chart sees
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gain or loss in dispersion
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one point out of control
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investigate what caused it
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Process central line
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Average of the sample means
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Most common limit
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plus three STDs
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P-chart
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limit MAY be zero
Process sampling by attributes |
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Run test
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Check for nonrandom variability
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The larger the CPk...
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...the more units meet the specs
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Process control chart
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discriminate b/t high and low quality lots
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Primary purpose of acceptance sampling
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decide if lot meets standards
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Steep (OC) curve in acceptance sampling
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better able to discriminate b/t good and bad lots
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Acceptance sampling controls
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incoming lots of purchased products
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AOQ less than
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true percent defective
improves with inspection |
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Job Shop
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intermittent process
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three types of strategies
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process
product repetitive |
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Hospitals
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low equipment utilization
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custom furniture
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job shop
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assembly line
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repetitive
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highest equipment utilization
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Product focused
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difficult to switch
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repetitive
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Improving productivity in services
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separation, self service, automation, scheduling
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AGV
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Material handling, not production
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Four approaches to expansion
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lead demand with incremental
lag demand with incremental Lead Demand with one-step average capacity straddles demand |
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If discount rate is lower
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NPV is higher
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