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78 Cards in this Set
- Front
- Back
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Product Quality
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A products fitness for consumption in terms of meeting customers needs and desires
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Design quality
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A measure of how well a products designed features match up to the requirements of a given customer group
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Quality Management
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A management approach that establishes an organization wide focus on quality
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Conformance quality
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A measure of whether or not a delivered product meets its design specifications
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8 Dimensions of quality for goods and services
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Performance. Features. Reliability. Durability. Conformance. Aesthetics. Support/responsiveness. Perceived quality
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Deming's 14 points
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Look in book.
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Total quality management (TQM)
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An integrated business management strategy aimed at embedding awareness of quality in all organizational processes
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Cost of quality (COQ)
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A framework for quantifying the total cost of quality related efforts and deficiencies
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Appraisal costs
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Costs resulting from inspections used to assess quality levels
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Internal failure costs
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Costs associated with quality failures uncovered before products are delivered to customers
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External failure costs
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Costs associated with quality failures uncovered after products reach customers
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TQM Values
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Holistic view of quality. Emphasis on customer. Extended process view of operations. Emphasis on prevention, not inspection. Disdain for variability. Data based decision making. Employee empowerment. Top management support. Supplier quality. Continuous improvement. Bench marking. Champion. Quality at the source. Team approach.
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Plan do check act cycle
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Plan-Identify problem and actions improvement
Do- implement formulated plan Check- monitor results Act- take corrective action and institutionalize changes. |
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Six Sigma
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A management program that seeks to improve the quality of process outputs by identifying and removing the causes of defects and variation in the various processes
5 steps- DMAIC- Define, Measure, analyze, Improve, and control |
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Standard deviation
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A measure of the variability or dispersion of a population, data set, or distribution
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Design for Six Sigma (DFSS)
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A design approach balances customer requirements with the constraints and capabilities of the supporting manufacturing and service processes
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ISO 9000
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A set of internationally accepted standards for business quality management systems
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How to attain ISO 9000 award
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1. The customers quality requirements
2. Applicable regulatory requirements while aiming to 3. Enhance customer satisfaction, and 4. Achieve continual improvement of its performance in pursuit of these objectives |
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Malcolm Baldridge Award
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A national quality award bestowed by the United States National Institute for Standards and Technology in recognition of superior quality and performance excellence
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Criteria for Malcolm Baldridge Award
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Leadership
Strategic planning Customer and market focus Information and analysis Human resource focus Process management Business results |
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Quality-Cost relationship
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Difference between price of noncomformance and conformance
Cost of doing things wrong- 20-35% of revenues Cost of doing things right- 3-4% of revenues |
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Quality Gurus
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W Edwards Deming
Joseph M. Juran Philip B. Crosby Imai |
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Quality Improvement tools
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Histogram- Uncover patterns
Cause and effect analysis- Uncover contributors to a problem Check Sheets- Frequency and location of problems Pareto Analysis- Identify critical problems |
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Just in time (JIT)
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An older name for lean systems
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Toyota production system (TPS)
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Another name for lean systems; refers to the specific lean system implemented in toyota
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Lean systems approach
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A philosophy that emphasizes the minimization of the amount of resources used in the various activities of the enterprise
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5 Principals of JIT
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1. Precisely specify value for each specific product
2. Identify the value stream for each product 3. Make value flow without interruptions 4. Let the customer pull value from the producer 5. Pursue perfection |
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Seven basic types of waste
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Overproduction-Processing more units then needed
Waiting- Resources wasted waiting for work Transportation- Units being unnecessarily moved Processing- Excessive or unnecessary operations Inventory- Units waiting to be processed or delivered Motion- Unnecessary or excessive resource activity Product defects- Waste due to unnecessary scrap, rework, or correction |
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Pull System
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Activities in the operating processes are initiated by actual customer demands, and not by forecasted demands
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Lean system culture
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The culture that is present in lean systems that places high value on respect for people in the system
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Employee Empowerment
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Putting the responsibility for attacking waste with the employees directly involved in the processes
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Group Technology (GT)
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An approach to work layout and scheduling that gathers in one location all of the equipment and work skills necessary to complete production of a family of similar products
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Focused Factory
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Organizing operations systems by grouping together similar customers and then designing and implementing product systems to serve these specific customers
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Takt time flow balancing
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A scheduling approach aimed at synchronizing the output rate with the rate of customer demand
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Kanban Pull Scheduling
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A scheduling system that builds output in response to actual customer demand
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Level mixed model scheduling
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The practice of leveling quantities pf different product models produced over a period of time with the goal of reducing batch sizes and lead times
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Single minute exchange if dies (SMED)
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A systematic three stage procedure for reducing long setups
1. Separate internal and external setups 2. Convert internal setups to external setups 3. Streamline all activities in a setup 4. Internal setup: Can be performed only when a process is stopped 5.External setup can be performed in advance |
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Jidoka
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A focus on developing technological features of equipment and processes that automatically detect and flag problems
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Kaizen Event
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A short term cross functional team project aimed at improving an existing process
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Gemba Kaizen
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Managers and employees are obligated to see the problems and issues in person rather then relying on reports
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Poka Yoke (Foolproofreading)
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An emphasis on redesigning processes in such a way as to make mistakes either impossible or immediately apparent to the worker
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5 S Program
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Sort-Clear out
Straighten- Configure Scrub- Clean and Check Systematize- Conform Standardize - Custom and practice |
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Customer Service management
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The design and execution of the processes that provide customers with products and services they desire
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Customer Success
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Helping customers to meet their real business requirements
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Customer satisfaction
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Meeting or exceeding customer expectations
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Lead time
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The amount of time that passes between the beginning and ending of a set of activities
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Procurement lead time
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Time associated with obtaining the inputs requires for processing the order
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Production lead time
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Begins at the moment the production or service system begins working on an order. It ends when the completed order is transferred to the distribution system of delivery
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Delivery lead time
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Measure the time consumed by the distribution system, including warehousing and transportation. It ends the moment the product reaches the customer
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Order to delivery lead time
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The time that passes from the instant the customer places an order until the instant that the customer receives the product
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Perfect order
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The notion that an order should be delivered with out failure in any attribute
Complete On time Damage free Documented correct |
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ETO
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Engineer to order
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MTO
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Make to order
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ATO
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Assemble to order
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MTS
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Make to stock
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Order Winners
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Why customers choose your firm; these product traits cause customers to choose a product over a competitors offering
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Order qualifiers
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Minimum standards met; product traits that must be a certain level in order for the product to even be considered by customers
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How to pursue perfection
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Specify Value
Identify value stream Make value flow w/o interruption Customer value pull Pursue perfection |
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Market orientation
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focused on discovering and meeting the needs and desires of its customers through its product mix
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Customer satisfaction
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Meeting or exceeding customer expectations including:
Reliability Responsiveness Access Communication Credibility Security Courtesy Competence Tangibles Knowing your customer |
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Customer satisfaction model gaps
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Knowledge: Understanding customer needs
Standards: Internal performance and customer expectations Performance: Standard and actual performance Communication: Actual performance and communications and performance Perception: Customers view of performance and actual performance Satisfaction: Customers perceptions and expectations of performance |
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Customer Success
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Have a long term focus
Comprehensive knowledge of customer needs Consideration of customers customers Adapt product production and distribution |
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Product availability
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Inventory available when and where desired by customer
Order Line Unit |
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Supply management
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Identification, acquisition and management of inputs and supplier relationships
Also called purchasing or procurement |
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Effective supply management
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-Ensure timely availability of resources
-Reduces total cost -Enhances quality -Enables access to technology and innovation -Fosters social responsibility |
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Total cost of ownership
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Sum of costs incurred before during and after purchase
Before: Costs of finding, assessing, selecting a supplier During: costs of buying and receiving items After: risks of storing and owning items including those incurred after sale to customers |
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Social responsibility
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Behaviors that benefit related communities
Add value to communities Increase social diversity Environmental responsibility Ethical behavior Financial responsibility Respect human rights safe working rights |
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Make or buy decision
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Choose between insourcing or outsourcing
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Each step of sourcing strategy
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Analyze spend and market
Develop sourcing strategy Identify potential suppliers Assess and select suppliers Manage relationship |
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Spend analysis
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???
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Sourcing strategy
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Bottleneck, Strategic, Noncritical, leverage
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Identify potential suppliers
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Starting point is to consider the firms current supplier or those used in the past.
Source of info about new potential suppliers include internet, catalog or trade directories |
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Supplier selection process
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Competitive bidding, RFP or RFQ
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Supply risk
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The probability of an unplanned event that negatively affects a firms ability to serve its customers
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Arms length relationships
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Relationships characterized by distrust and limited communications
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Request for proposal RFP
Request for quotation RFQ |
Documents that describe the purchase requirements as specifically as possible
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Electronic data interchange EDI
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Structured secured mode of transmitting data
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Reverse auctions
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Suppliers bid in real time for buyers business
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