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43 Cards in this Set

  • Front
  • Back
total quality mgmt
"managing the netire org. so that it excels on all dimesnions of products and services that are important to the customer."
-careful design of the product or service
-ensuring that th eorg's system can consistently produce the design
design quality
inheerent value of the product in the marketplace and is thus a strategic decision for the firm
conformance quality
refers to the degree to which the product or service design specifications are met
quality at the srouce
frequently discuessed in the context of conformance quality
defects per million opportunities
(#of defects/(#of opp.forerror per unit x #of units))x 1000000
-Define (customers and priorities)
-Measure (how measure process)
-Analyze (mostlikely cause)
-Improve (means to remove)
-Control (how to maintain)
run charts
depcits trends in data over time->understand the magnituted of problem at define stage
pareto chartsq
break down a prob. into the relative contributions of its compononets
basic forms that help standardize data collection
cause-and-effect diagrams
fishbone diagrams->show hypothesized relationships b/t potential cuases and the problems under study.
opportunity flow digram
used to separate value-added from non-value-added steps in a prcoess
control charts
time-sequenced charts showign plotted values of a statiic including a centerline average and one r more control limits
failure mode and effect analysis
structure approcach to identify, estimate, prioritize, and evaluate risk pof possible failures at each stageof a process
Design of experimenets
multivariate testing, statistcial methodlogy used for determingin the cause-and-effect relationship b/t process variables (X's) and the output variable (Y)
accopmlish drastic cuts in equipment setup times by single-minute echange of die procedures can be done by 3:
-sucessive check:performed by next person in process or by an objective evaluator such as a group leader
-self-check (done by the individual worker and is appropriate by itself on all but items that require sensory judgement
-source insepecition-performed by the individual worker, except instead of checking for defects
-POKA-YOKE: fail safe devices->like checklists, 1. prevents worker from making an error that leads to a defect before starting a rpcoess
2. gives rapid feedback of abnormalities in the process to the worker in time to correct them.
external benchmarking
goes outside the org. to examine what industry competitiors and excellent performers outside of industry are doing
assignable variation
variation that is caused by factors that can be clearly identified and possibly even managed
common variation
varition that is inherent in the process itself
random variation
common variation-may be result of the type of equipment sused to complete a process
capability index
shows how well the parts being produced fit into the range specified by the design limits
level schedul
one that requires matieral to be pulled into final assembly in a pattern uniform enough to allow the variou s elements of production to responde to pull signals
freeze window
refers to that period of time druing which the schedule is fixed and no further changes are possible
measreument is used to periodically explode an end item's bill of materials (the parts that go into each prodcut ) to caluculate ho wmany of each part went into final products
keep a supply of inventory b/c
-to maintain independence of oerpations, meet variation in product demand, to allow flexibility in production scheduling, provide a safeguard for variation in raw material delivery time, to take advantage of economic purchase order size
visual displya of the status of each work station -\.if worker falls behind, pull the chord, light goes on
management by stress
unlit warning lights=fingal inefficiency; can focus on redisgining them. system to run with all stations oscillating b/t lights on and lights off.
-humans beeings are the cogs in the system, not machines, etc.
-keeping the system stressed means that fewer upper and miidle managers are needed to monito production
-automation must increase mgmt. flexibility, not decrease it
continouous improvement
autonomation0<refers to technoloyg that dettects production problems
-woreres do work, mgmt. uses them as prototype->need to be able to flexiibly assign workers to new duties and force "cooperation"
stopping the line
-sotp line=bad to group leader
-signal leader for help, leaves them unavailable, peer pressure
-"go into the hole"->move down the assembly line to finish the task.
pitfalls of managing supply chain inventory
-no supply chain metrics, inadequate definition of customer service, inaccurate livery status data (may want updated order deliery status), inefficient information system s, ignoring the impact oof uncertaintines(lead time, quality, etc.), simplistic inventory stocking policies, discrimination against internal custtomers, poor coordiation, incompelete shipment method analyis, incorrect assessment of inventory costs, organizational barriers, product-process design w/o supply chain consideration, separation of supply chain design from operational decisions, incomepleete supply chain,
opportunities for managing supply chain inventory
-design for supply chaing mgmt, integrate databases throughout the supply chain, integrate control and plannign support systems, redesign organizaitonal incentives, institute supply chian performance measurement, expand view of supply chian
turning the suppply chain into a revenue chain
-cost to produce the additional units must be less than the incremental revnue they generate, addministrative burden associated with revenue sharing must be small enough that the cost of running the pgrom doesnt eat up al the gains , by not saddlign providers w/ high intial costs, revenue sharing helps spur the development of the market,
bullwhip effect
The variance of orders is greater than that of sales, and the distortion increases as one moves upstream.
causes of bullwhip effect
Misperceptions of feedback
Demand Forecasting
Order Batching
Price Variations
Rationing Game
Vendor Managed Inventory
Vendors receive inventory and POS data from the retailers and calculates how much to ship to retailers. The vendor (supplier) manages the inventory of the retailer.
Quick Response:
Vendors receive POS data from retailers, and use this information to synchronize their production and inventory activities. In this strategy, the retailers still prepare individual orders, but the POS data is used by the supplier to improve forecasting and scheduling.
continuous improvement
level/balanced production
light board
takt time
time calcuated time per day/ daily demand
automation, to detect defects
battling bullwhip effect
VMI, quick response, product transshipment