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Supply Chain > Chapter 8 Operations Management > Flashcards

Chapter 8 Operations Management Flashcards

(85 cards)

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1
Q

What is Operations Management

A

managing the process of converting raw materials into goods and services, in alignment with the company’s business strategy as efficiently and effectively as possible, while also controlling costs

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2
Q

What is Manufacturing

A

to process or convert raw materials or components into a finished product, especially by means of a large-scale industrial operation (ie mass production)

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3
Q

What is LEAN

A

an operating philosophy of waste reduction and value enhancement
- improves and streamlines the supply chain “flow” by eliminating waste

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4
Q

What is Six Sigma

A

A disciplined, statistics-based, data-driven methodology for identifying and removing the causes of defects (errors) and minimizing variability in manufacturing quality and in business processes

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5
Q

Make-to-Stock

A

means to manufacture products for stock based on demand forecasts (Push system)

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6
Q

Make-to-Order

A

a manufacturing strategy in which manufacturing starts only after a customer’s order is received

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7
Q

Assemble to Order

A

a manufacturing strategy where products ordered by customers are assembled quickly and are customizable to a certain extent

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8
Q

Engineer to Order

A

a manufacturing strategy in which the product is designed, engineered, and built to the customer’s specifications after receipt of the order

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9
Q

Intermittent Manufacturing Processes

A

used to produce a large variety of products with different processing requirements in lower volumes

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10
Q

Repetitive Manufacturing Processes

A

used to produce one, or a few, standardize products in high volumes

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11
Q

Job Shop production

A

creates a custom product for each customer

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12
Q
A
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13
Q

Batch Production

A

manufacturing of a small fixed quantity of an item in a single production run

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14
Q

Line Flow production

A

assembly line, for standardized products with a limited number of variations

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15
Q

Continuous Flow Production

A

high capital investment, frequently dedicated to one specific product, involves series of processes that are very inflexible, highly automated

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16
Q

What is LEAN

A

a management philosophy based on the Toyota Production System

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17
Q

Objective of LEAN

A

eliminate everything that does not add value (waste) in the customer’s eyes

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18
Q

Focus and Scope of LEAN

A

Using Value Stream Mapping as a primary work unit, focusing on improving process performance, having a clear view of the end state

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19
Q

Approach and Tools of LEAN

A

A wide range of Lean tools are available, learn-by-doing approach to performance improvement and capability-building

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20
Q

LEAN regularly results in

A

large cost reductions, improved quality, increased customer service

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21
Q

Value is defined as:

A

the inherent worth of a product or a product feature as judged by the customer and reflected in its selling price and market demand

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22
Q

Value added process

A

process steps that transform or shape a product or service which is eventually sold to a customer

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23
Q

Non-Value Added Process

A

process steps that take time, resources, or space, but do not transform or shape the product or service

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24
Q

Incidental Waste

A

no value created but required by current thinking, process limitations, current technology, or current regulations

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25
Pure Waste
consumes resources but creates no value for customer, could be stopped and would be invisible to customer
26
Three components of LEAN
1) LEAN Manufacturing 2) Respect for People 3) Total Quality Management
27
Waste Reduction (Elements of LEAN Manufacturing)
Waste encompasses wait times, inventories, material and people movement, processing steps, variability, and any other non-value-adding activity
28
LEAN Layout (Elements of LEAN Manufacturing)
Move people and materials where and when needed, and as soon as possible - Are very visual with operators at one processing center able to monitor work at another
29
Manufacturing cells
Process similar parts or components together saving duplication of equipment and labor - Are often U-shaped to facilitate easier operator and material movements
30
The 5 S's of the visual workplace
Sort, Set in Order, Shine, Standardize, Sustain
31
Inventory, Setup Time, & Changeover time reduction (Elements of LEAN Manufacturing)
Some inventory may be necessary but excess inventory is a waste
32
The Pull System
Each stage in the supply chain requests quantities needed from the previous stage, no excess inventory is generated, reducing inventory levels can also uncover production problems
33
Setup Time
the time taken to prepare and format the manufacturing equipment and systems for production
34
Changeover Time
the time taken to adapt and modify the manufacturing equipment and systems to produce a different product or a new batch of the same product
35
Small Batch Scheduling and Uniform Plant Loading (Elements of LEAN Manufacturing)
The ideal schedule is to produce every product as quickly as possible and at the same rate as customer demand - Large batches can exacerate the Bullwhip Effect as production in large batches creates an uneven workload
36
LEAN Supply Chain Relationships (Elements of LEAN manufacturing)
Firms develop lean supply chain relationships with key customers and key suppliers, mutual dependency and benefits occur among these partners
37
Workforce Commitment (Elements of LEAN Manufacturing)
Managers must support LEAN Manufacturing by providing subordinates with the skills, tools, time, and other necessary resources to identify problems and implement solutions
38
Continuous Improvements (Elements of LEAN Manufacturing)
a system involving every employee that is based on making little changes on a regular basis, anywhere changes can be made, to reduce process, delivery, and quality problems
39
Respect for people (LEAN)
respect for all people must exist for an organization to be at its best
40
Role of workers in LEAN
Perform tasks and actively pursuing company goals: - Improve production process - Correct quality problems - Monitor quality
41
The Role of Management in LEAN
Create the cultural change needed for LEAN to succeed: - Provide an atmosphere of cooperation - Empower workers to take action based on their ideas - Develop incentive systems to recognize and reward LEAN behaviors
42
The Role of Suppliers in LEAN Manufacturing
LEAN involves building long-term supplier relationships - Partnerships with suppliers - Improving process quality - Sharing information The goal is to have the fewest number of high quality suppliers possible without unnecessarily increasing risk
43
Categories of Waste
DOWN TIME: Defects, overproduction, waiting, non-utilized talent, transportation, inventory, motion, extra processing
44
Benefits of LEAN Waste Reduction
Reduced cycle times, greater throughput, better productivity, improved quality, reduced costs
45
What does the F S's do
Focuses on effective workplace organization and standardization. It allows us to easily spot variation from standard operating conditions (Cleaner, safer work environment, organized user friendly workstations, open up space and reduce clutter)
46
Kanbans
means signal or card and is used for communication between workstations
47
Uniform Plant Loading
planning up to capacity in earlier time periods to meet demand in later time periods also called front loading or leveling the plan
48
Small Batch Scheduling
production in small batches creates a smooth workload as production can be synchronized with customer demand, facilitating a pull system.
49
Total Quality Management
A management philosophy based on the principle that every employee must be committed to maintaining high standards of work in every aspect of a company's operations
50
Key Principles of TQM
Management commitment, employee empowerment, fact based decision making, continuous improvement, customer focus
51
Voice of the Customer (VOC)
Term used in business to describe the in-depth process of capturing internal and external customers expectations, preferences, likes, and dislikes
52
Cost of Quality
An approach that supports a company's efforts to determine the level of resources necessary to a) prevent poor quality, and to b) evaluate the quality of the company's products and services
53
Cost of Good Quality
- Appraisal Costs - Prevention Costs
54
Cost of Poor Quality
- internal failure costs - external failure costs
55
Appraisal Costs
associated with the evaluation of purchased materials, processes, products, and services to ensure that they conform to specifications
56
Prevention Costs
related to the design, implementation, and maintenance of the quality management system. They are planned and experienced before actual products or materials are acquired or produced
57
Internal Failure Costs
Occur when the product or service does not meet the designed quality standards and are identified before the product is delivered to the customer
58
External Failure Costs
occur when the product or service does not meet the designed quality standards, but is not detected until after the product or service is delivered to the customer
59
Acceptance Sampling
when a shipment is recieved from a supplier, a statistically significant representative sample is taken and measured against the quality acceptance standard
60
What is Six Sigma
A quality management process that focuses on improving the quality of process outputs by identifying and removing the causes of defects (errors) and minimizing variability in manufacturing and business processes
61
The goal of six sigma is to attain less than
3.4 defects per million opportunities
62
Three foundational aspects of Six Sigma
1. Quality is defined by the customer 2. The use of technical tools 3. People Involvement
63
Quality is Defined by the Customer
Quality and excellence are what your customers say they are, customers of your products and services define quality
64
The Use of Technical Tools
Six sigma provides a statistical approach for solving any problem and thereby improves the quality level of the product as well as the company
65
Root cause analysis
A collective term that describes a wide range of approaches, tools, and techniques used to uncover causes of problems
66
The root cause is the ____
core issue that sets in motion the entire cause-and-effect reaction that ultimately leads to the problem(s)
67
The Seven Tools of Quality Control
1. Check Sheets 2. Histograms 3. Pareto Analysis 4. Cause & Effect Diagrams 5. Flow Diagram 6. Control Charts 7. Scatter Diagrams
68
Check Sheets
used to determine frequencies for specific problems
69
Histograms
a graphical display where the data is grouped into ranges
70
Pareto Analysis
for presenting data in an organized fashion, indicating process problems from most to least severe
71
Cause and Effect Diagrams
used to aid in brainstorming and isolating the causes of a problem
72
Control Charts
graph to study how a process changes over time
73
Scatter Diagrams
The values of two variables plotted along two axes to reveal any correlation present
74
Six Sigma Methodologies
DMADV and DMAIC
75
DMADV Methodology stands for
Define, Measure, Analyze, Design, Verify A data-driven quality strategy for DESIGNING products and processes
76
DMAIC Methodology stands for
Define, Measure, Analyze, Improve, Control A data-driven quality strategy for IMPROVING an existing business process or product
77
Who was W. Edwards Deming
stressed management's responsibility for quality, developed 14 points to guide companies in quality improvement
78
Philip Crosby
Introduced the concepts of zero defects, and the focus on prevention not inspection Introduced the four absolutes of quality: quality is conformance to requirements, the system of quality is prevention, performance standard is zero defects, the measure of quality is the price of nonconformance
79
Joseph Juran
Quality Planning, Quality Control, Quality Improvement
80
Kaoru Ishikawa
Developed the Cause and Effect Diagram
81
The concept of Six Sigma was originated by
Motorola
82
Flow Diagram
sequence of movements or actions of people or things involved in a complex system or activity
83
The 5 Whys Technique
A questioning technique for identifying the root cause of a problem
84
The 5 Hows Technique
A questioning technique for drilling down into the details of a potential solution to a known problem
85
People Involvement
A company must involve all its employees in the Six Sigma program and provide opportunities and incentives for employees to focus their talents on satsifying customers

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