Operations Mgmt Exam - 2 Review

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The ability of a product or service to meet customer needs.

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Quality

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“The totality of features and characteristics of a product or service that bears on its ability to satisfy stated or implied needs.”

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American Society of Quality

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quality “lies in the eyes of the beholder.” Marketing people like this approach and so do customers. To them, higher quality means better performance, nicer features, and other (sometimes costly) improvements.

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User-based

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To production managers, They believe that quality means conforming to standards and “making it right the first time...this is called...

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Manufacturing based

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views quality as a precise and measureable variable. In this view, for example, really good ice cream has high butterfat levels.

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Product-based

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costs associated with (reducing the potential for defective parts or services (i.e. training, quality improvement programs)

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Prevention costs (good)

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costs related to (evaluating products, processes, parts, and services (i.e. testing, labs, inspectors)

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Appraisal costs (good)

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costs that result from production of defective parts or serv ices before delivery to customers (i.e. rework, scrap, downtime)

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Internal failure (good)

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costs that occur after delivery of defective parts or services (i.e. rework, returned goods, liabilities, lost goodwill, costs to society)

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External costs (bad)

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1. Create consistency of purpose
2. Lead to promote change
3. Build quality into the product; stop depending on inspection
4. Build long-term relationships based on performance, not price
5. Continuously improve product, quality, and service
6. Start training
7. Emphasize leadership
8. Drive out fear
9. Break down barriers between departments
10. Stop haranguing workers
11. Support, help, improve
12. Remove barriers to pride in work
13. Institute a vigorous program of education and self-improvement
14. Put everybody in the company to work on the transformation

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Overall knowledge of Demings 14 points of quality

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Encompasses entire organization, from supplier to customer
Stresses a commitment by management to have a continuing, companywide drive toward excellence in all aspects of products and services that are important to the customer

management of an entire organization so that it excels in all aspects of products and services that are important to the customer. (company wide drive toward excellence)

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TQM

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a program to save time, improve quality, and lower costs. Six sigma is a comprehensive system—a strategy, a discipline, and a set tools—for achieving and sustaining business success

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Six Sigma

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a set of quality standards developed by the International Standard Organization. The focus of the standards is to est. quality management procedures, through leadership, detailed documentation, work instructions and record keeping (deals entirely with the standards of the product not the actual quality of the product)

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ISO 9000

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Three types of process are:

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Process focus
Repetitive focus
Product focus

Front 15

Which of the following industries is likely to have low equipment utilization?

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Which industry is more centric and has a low equipment utilization
i.e. Auto manufacturing has “high” equipment utilization and service management (mixed service) nothing to do with equipment (accounting)

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An assembly line is an example of a

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Repetitive focus

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Which of the following is FALSE regarding repetitive processes?

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What is TRUE about repetitive processes…

-A repetitive focus falls between the product and process focuses. Repetitive processes use modules. Modules are parts or components previously prepared, often in a continuous process.

-The repetitive process line is the classic assembly line. Widely used in the assembly of virtually all automobiles and household appliances, it has more structure and consequently less flexibility than a process facility.

-Fast food firms are an example of a repetitive process using modules

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Which of the following phrases best describes product focus?

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High-volume, low variety processes are product focused. The facilities are organized around products. The are also called continuous processes, because they have very long, continuous production runs. P

Products such as glass, paper, tin sheets, light bulbs, beer, and bolts are made via continuous process.

Some products, such as light bulbs, are discrete; others, such as rolls of paper, are nondiscrete. Still others such, as repaired hernias at Shouldice Hospitial, are services.

It is only with standardization and effective quality control that firms have established product-focused facilities

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Which of the following phrases best describes process focus?

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Seventy-five percent of all global production is devoted to making low-volume, high-variety products in places called “job shops.”

Such facilities are organized around specific activities or processes. In a factory, these processes might be departments devoted to welding, grinding, and painting. In an office, the processes might be accounts payable, sales, and payroll. In a restaurant they might be bar, grill, and backery.

Such facilities are process focused in terms of equipment, layout, and supervision. They provide a high degree of product flexibility as products move intermittently between processes. Each process is designed to perform a wide variety of activities and handle frequent changes. Consequently they are also called intermittent processes.
These facilities have high variable costs with extremely low utilization of facilities, as law as 5%. This is the case for many restaurants, hospitals, and machine shops. However, some facilities do somewhat better through the use of innovative

Front 20

Which of the following phrases best describes repetitive focus?

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A repetitive focus falls between the product and process focuses. Repetitive processes use modules. Modules are parts or components previously prepared, often in a continuous process.

-The repetitive process line is the classic assembly line. Widely used in the assembly of virtually all automobiles and household appliances, it has more structure and consequently less flexibility than a process facility.

-Fast food firms are an example of a repetitive process using modules

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8. Process A has fixed costs of $1000 and variable costs of $15 per unit. Process B has fixed costs of $500 and variable costs of $25 per unit. The crossover point between process A and process B is

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50 units
$1750

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The crossover point is that production quantity where

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Where two processes (A and B ex.) are equal, and where the next unit of production will be cheaper for the process with a lower variable cost.

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A drawing of the movement of material, product, or people is a

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Flow diagram: is a drawing used to analyze movement of people of material.

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The use of information technology to monitor and control a physical process is known as

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Process Control

-Process control is the of information technology to control a physical process.

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Timing a sample of a worker’s performance and using it to set a standard is the work measurement technique of:

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Time study

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In time studies, average observed time for an element is determined by:

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Avg. observed time = Sum of the times recorded to perform each element / Number of observations

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In time studies, normal time is defined as:

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The observed time, adjusted for pace

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Standard time

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Needs to be adjusted for worker fatigue

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The smaller the percentage established for allowances

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The closer is normal time is to standard time

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Which of the following are true regarding allowances in time studies?

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a. They have a “constant” and a “variable” component
b. They are adjusted for work conditions such as heating, lighting, and noise
c. They include allowances for personal time, delay, and fatigue
d. They represent the adjustment between normal time and standard time
e. All of the above are true

= e. all of the above are true

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A technique for estimating the proportion of time a worker spends on various activities is

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Work sampling

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The tally sheet data from a work sampling study provides information regarding

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The percent of time spent on various tasks

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Therbligs are defined as:

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Basic physical elements of motion