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78 Cards in this Set

  • Front
  • Back
A diagram that arranges catergories from highest to lowest frequency of occurance.
Pareto Chart
A graph that shows the degree and direction of the relationship between two variables.
Scatter Diagram
What do the blue areas represent in the graph (a/2)
Type 1 Error
A chart that describes the steps in the process.
Flowchart
A organized method of recording data
Check Sheet
Identifies process elements (cause) that might effect an outcome.
Ex. Cause: Materials, Methods, Manpower, Machinery= Effect
Cause and Effect
Tool for generating Ideas
Check Sheet
Scatter diagram
Cause and Effect diagram
Tools to organize the data
Pareto Charts
Flowcharts
Tools to help Identify Problems
Histogram
Statistical Process Control Chart (SPC Chart)
Shows the frequency of occurance of a variable; lets you see if distribution is symmetrical.
Histogram
Statistical Process Chart (SPC Chart)
Uses statistics and control charts to tell when to take corrective action; drives process improvement; 4 key steps: 1) Measure process 2) When change indicated find the assignable cause 3) Eliminate or incorporate the cause 4) Restart the revised process
Identifies trends or other patterns that may occur over time; time sequenced
Run Chart
Can be used to monitor a process to see if the process output is random. Control charts also can indicate when a problem occured and give insight into what caused the problem
Control Chart
A philosopy that involves everyone in an organization in a continual effort to improve quality ad achieve customer satisfaction
Total Quality Management
A business process for improving quality reducing costs and increasing customer satisfaction. No more than 3.4 defects per million; Program designed to reduce defects; Requires the use of certain tools and techniques
Six Sigma
Reviews and approves the team charter and implements plan
Team Champion
Shares teams progress with coworkers
Team member
Provides suggestions in tools as the team proceeds with its problem. Expert of daily operations, providing advice
Team Coach
Represents team to management
Team Leader
a 5 step process that helps keep process improvement teams focusted and moving in a productive direction
DMAIC: 1) D: Define the problem
2) M: Measure the defects
3) A: Analyze data
4) I: Improve the process
5) C: Control the process
1st list evidence opposing your business decision
2nd Explain both sides to collegue and get their imput

OPPOSING OBJECTIVES
Devil's Advocacy Technique
Is the supply chain responsible for moving materials from supplier to manufacturing plant.
Inbound Logistics
Purchasing works with customer data to support quality requirements and Distribution channel members supply information to purchasing
The key relationship involved in the inbound logistics process
A comprehensive supply chain strategic plan addresses
Quality
Employee involvement
Global Markets
Customer Satisfaction
Benefits of understanding intergrated supply chain mgmt.
Enables efficient mgmt of day to day activities
Enables appropriate stratgic planning
Supports increasing levels of customer satisfaction
The system responsible for distibution of finished goods.
Outbound Logistics
The principle players in outbound logistics are:
Manufacturer
Wholesaler
Retailer
Directly contributes to lowering costs and increasing profit. AVOID COSTLY DELAYS
Purchasing
Primary purchasing objectivies or activities
1) Obtain high quality production materials
2) Participate in the product testing
3) Maintain reliable and competitive supplies
Purchasing management roles need to balance
- Prices
- Qualities
- Quantities
- and lead time
Effective Supplier Selection Process
1) Develop set criteria
2) Analyze business health
3) Create a short list of finalists
4) Solicit bids
5) Define performance objectives
Rate according to EASE of implementation
Rate according to EFFECT of implementation
Rate and prioritize solutions
(ex. +1 ease, -3 effect, prioritize, P1 confidence rating)
Ease and Effect Matrix
1) Annoymously voting on initial favored solution
2) Recording the votes in round robin fashion
3) Clarifying any confusing ideas
4) Evaluating the final solutions
Nominal Group Technique
Limits input (reduces bias)
Relies on annoymous voting
No selling ideas
Do not reject any initial ideas
Secret ballot evaluation
Nominal Group Technique
1) Establishing revenue projections
2) Specifying anticipated expenditures
3) Calculating the resulting net cash flow
Return on Investment
Time frame
Subjectivity
Your Thinking
Your Results
Step #1 in Return on Investment
"Establishing revenue projections"
Do not include sunk costs
Do include Promo costs, admin costs, dev costs
Step #2 in Return on Investment
"Specify anticipated expenditures"
Total estimated after tax revenue over forcast
Then substract anticipated "cash outlays" Keep in mind no sunk costs included
Final returns: Net Cash Flow/Expenditures =
Step #3 in Return on Investment
"Calculating the resulting net cash flow"
Document quality goals and a means for achieving them
(Plan)
PDCA first step
Provide training so that employees perform quality activities as intended
(Do)
PDCA second step
Monitor and evaluate the degree to which quality activities have achieved the stated quality goals
(Check)
PDCA third step
Make modifications to procedures and skills to better achieve the organization's quality goal
(Act)
PDCA fourth step
Drafting and publishing the organization policy
PLAN
Training mgrs on quality procedures
DO
Conduct random unannounced on-site evaluations
CHECK
Implementing improvements based upon internal and customer input
ACT
1) customer focus, 2) Leadership, 3) Involvement of ppl
4) Process approach, 5) System approach to mgmt,
6) Continual Improvement, 7) factual approach to decision making, 8) benefical supplier relationships
The 8 principles of QM
QM fundemental and vocabulary
ISO 9000-2000
QM requirements
ISO 9000-2000
QM guidlelines for performance improvement
ISO 9004-2000
Environmental
ISO 19011
It's mission is to provide guidance on QM systems, including the processes for continual improvement.
ISO 9000-2000
1) Mgmt Resposibility: Involves commitment implementing a quality policy, plus planning, admin and reviewing the QM system
1st primary clause for ISO 9001 and 9004
2) Resource Mgmt: Includes HR facility and equip resources, and the work environment required to achieve quality standards
2nd primary clause for ISO 9001 and 9004
Product Realization: Planning cust related processes, design and dev, purchasing, production and svc operations, plus monitoring control.
3rd primary clause for ISO 9001 and 9004
Measurement, Analysis, and Improvement: Planning, measurements and monitoring, control and nonconformity, analysis of data, and improvement
4th primary clause for ISO 9001 and 9004
addresses QM guidelines, mgmt responsibilities, resource mgmt, measurement, analysis, and improvement
ISO 9004
1) The improved ability to FULFILL cust requirements
2) The improved ability to OFFER quality products & svcs
3) The improved ability to RETAIN & attract new cust
The benefits of reducing variations
considered a defect in Six Sigma
Variation
3 key characteristics of _____________ are that its sources are often hidden, the sources can occur in different places
Variation
Materials
Methods
Measures
Mother Nature
People
Are all sources (problems) of variations

Note: consistant process reduces variation
Results from sources that are NOT inherent to the process, such as an operator who falls asleep at the switchboard
Special Cause Variation
Is the result of naturally occuring sources that ARE inherent to the process such as the normal wear and tear of a part
Common Cause Variation
Chooses only solutions that are truly sensible
The Analytical Style
Relies on instints when choosing a solution
The Reflexive Style
Manage levels of product at various points
Inventory Mgmt System
Move products from production to customer
Physical Distribution
Move products from the factory floor to the customer's hands
Outbound Logistics
Manager levels of product at various points
Marketing Channel
Works with engineering to determine input quality
Purchasing
Works with suppliers to obtain high quality materials
Purchasing
Works with customer data to support quality requirements
Purchasing
Partners provide information for inventory mgmt
Distribution Channel
Members supply information to purchasing
Distribution Channel
Involve startegic suppliers in the product design process
Effective Supplier Mgmt Strategy
Involve partners in the strategi planning process
Effective Supplier Mgmt Strategy
Work with suppliers to improve their production process
Effective Supplier Mgmt Strategy
Supports effective strategic planning
Enables comprehensive supply chain mgmt
Ensures support of cust satisfaction goals
Provides support for appropriate cust svc levels
Supports maintenance of desired levels of quality
Benefits of effectively implemented channel mgmt