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78 Cards in this Set
- Front
- Back
A diagram that arranges catergories from highest to lowest frequency of occurance.
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Pareto Chart
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A graph that shows the degree and direction of the relationship between two variables.
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Scatter Diagram
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What do the blue areas represent in the graph (a/2)
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Type 1 Error
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A chart that describes the steps in the process.
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Flowchart
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A organized method of recording data
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Check Sheet
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Identifies process elements (cause) that might effect an outcome.
Ex. Cause: Materials, Methods, Manpower, Machinery= Effect |
Cause and Effect
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Tool for generating Ideas
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Check Sheet
Scatter diagram Cause and Effect diagram |
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Tools to organize the data
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Pareto Charts
Flowcharts |
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Tools to help Identify Problems
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Histogram
Statistical Process Control Chart (SPC Chart) |
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Shows the frequency of occurance of a variable; lets you see if distribution is symmetrical.
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Histogram
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Statistical Process Chart (SPC Chart)
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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
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Identifies trends or other patterns that may occur over time; time sequenced
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Run Chart
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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
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Control Chart
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A philosopy that involves everyone in an organization in a continual effort to improve quality ad achieve customer satisfaction
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Total Quality Management
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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
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Six Sigma
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Reviews and approves the team charter and implements plan
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Team Champion
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Shares teams progress with coworkers
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Team member
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Provides suggestions in tools as the team proceeds with its problem. Expert of daily operations, providing advice
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Team Coach
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Represents team to management
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Team Leader
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a 5 step process that helps keep process improvement teams focusted and moving in a productive direction
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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 |
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1st list evidence opposing your business decision
2nd Explain both sides to collegue and get their imput OPPOSING OBJECTIVES |
Devil's Advocacy Technique
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Is the supply chain responsible for moving materials from supplier to manufacturing plant.
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Inbound Logistics
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Purchasing works with customer data to support quality requirements and Distribution channel members supply information to purchasing
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The key relationship involved in the inbound logistics process
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A comprehensive supply chain strategic plan addresses
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Quality
Employee involvement Global Markets Customer Satisfaction |
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Benefits of understanding intergrated supply chain mgmt.
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Enables efficient mgmt of day to day activities
Enables appropriate stratgic planning Supports increasing levels of customer satisfaction |
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The system responsible for distibution of finished goods.
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Outbound Logistics
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The principle players in outbound logistics are:
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Manufacturer
Wholesaler Retailer |
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Directly contributes to lowering costs and increasing profit. AVOID COSTLY DELAYS
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Purchasing
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Primary purchasing objectivies or activities
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1) Obtain high quality production materials
2) Participate in the product testing 3) Maintain reliable and competitive supplies |
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Purchasing management roles need to balance
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- Prices
- Qualities - Quantities - and lead time |
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Effective Supplier Selection Process
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1) Develop set criteria
2) Analyze business health 3) Create a short list of finalists 4) Solicit bids 5) Define performance objectives |
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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
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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
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Limits input (reduces bias)
Relies on annoymous voting No selling ideas Do not reject any initial ideas Secret ballot evaluation |
Nominal Group Technique
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1) Establishing revenue projections
2) Specifying anticipated expenditures 3) Calculating the resulting net cash flow |
Return on Investment
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Time frame
Subjectivity Your Thinking Your Results |
Step #1 in Return on Investment
"Establishing revenue projections" |
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Do not include sunk costs
Do include Promo costs, admin costs, dev costs |
Step #2 in Return on Investment
"Specify anticipated expenditures" |
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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" |
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Document quality goals and a means for achieving them
(Plan) |
PDCA first step
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Provide training so that employees perform quality activities as intended
(Do) |
PDCA second step
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Monitor and evaluate the degree to which quality activities have achieved the stated quality goals
(Check) |
PDCA third step
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Make modifications to procedures and skills to better achieve the organization's quality goal
(Act) |
PDCA fourth step
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Drafting and publishing the organization policy
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PLAN
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Training mgrs on quality procedures
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DO
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Conduct random unannounced on-site evaluations
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CHECK
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Implementing improvements based upon internal and customer input
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ACT
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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
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QM fundemental and vocabulary
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ISO 9000-2000
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QM requirements
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ISO 9000-2000
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QM guidlelines for performance improvement
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ISO 9004-2000
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Environmental
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ISO 19011
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It's mission is to provide guidance on QM systems, including the processes for continual improvement.
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ISO 9000-2000
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1) Mgmt Resposibility: Involves commitment implementing a quality policy, plus planning, admin and reviewing the QM system
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1st primary clause for ISO 9001 and 9004
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2) Resource Mgmt: Includes HR facility and equip resources, and the work environment required to achieve quality standards
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2nd primary clause for ISO 9001 and 9004
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Product Realization: Planning cust related processes, design and dev, purchasing, production and svc operations, plus monitoring control.
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3rd primary clause for ISO 9001 and 9004
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Measurement, Analysis, and Improvement: Planning, measurements and monitoring, control and nonconformity, analysis of data, and improvement
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4th primary clause for ISO 9001 and 9004
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addresses QM guidelines, mgmt responsibilities, resource mgmt, measurement, analysis, and improvement
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ISO 9004
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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
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considered a defect in Six Sigma
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Variation
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3 key characteristics of _____________ are that its sources are often hidden, the sources can occur in different places
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Variation
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Materials
Methods Measures Mother Nature People |
Are all sources (problems) of variations
Note: consistant process reduces variation |
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Results from sources that are NOT inherent to the process, such as an operator who falls asleep at the switchboard
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Special Cause Variation
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Is the result of naturally occuring sources that ARE inherent to the process such as the normal wear and tear of a part
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Common Cause Variation
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Chooses only solutions that are truly sensible
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The Analytical Style
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Relies on instints when choosing a solution
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The Reflexive Style
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Manage levels of product at various points
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Inventory Mgmt System
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Move products from production to customer
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Physical Distribution
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Move products from the factory floor to the customer's hands
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Outbound Logistics
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Manager levels of product at various points
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Marketing Channel
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Works with engineering to determine input quality
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Purchasing
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Works with suppliers to obtain high quality materials
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Purchasing
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Works with customer data to support quality requirements
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Purchasing
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Partners provide information for inventory mgmt
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Distribution Channel
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Members supply information to purchasing
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Distribution Channel
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Involve startegic suppliers in the product design process
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Effective Supplier Mgmt Strategy
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Involve partners in the strategi planning process
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Effective Supplier Mgmt Strategy
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Work with suppliers to improve their production process
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Effective Supplier Mgmt Strategy
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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
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