Exam 1 Flashcards
(234 cards)
1
Q
Why Study Operations and Supply Chain Management
A
- Every organization must make a product or provide a service that someone values
- Most organizations function as a part of larger supply chains
- Organizations must carefully manage their operations and supply chains in order to prosper, and indeed, survive
2
Q
Operations Functions (or Operations)
A
Collection of people, technology, and systems within an organization that has primary responsibility for providing the organization’s products or services
3
Q
Supply Chain
A
- A network for manufacturers and service providers that work together to create products or services needed by end users. These manufacturers and service providers are linked together through physical flows, information flows, and monetary flows.
- Primary focus on physical goods- conversion, storage, and movement of materials and products
4
Q
Operations Management
A
The planning, scheduling, and control of the activities that transform inputs into finished goods and services
5
Q
Transformation Process
A
Takes a set of inputs and transform them in some way to create outputs (goods or services)
6
Q
Transformation Process Steps
A
Inputs -> this processes-> outputs
7
Q
Transformation Process Inputs
A
- Materials
- Intangible needs
- Information
8
Q
Transformation Process Includes
A
- Manufacturing Operations
- Service Options
9
Q
Transformation Process Outputs Includes
A
- Tangible goods
- Fulfilled needs
- Satisfied customers
10
Q
Upstream
A
Activities or firms that are positioned earlier in the supply chain relative to some other activity of form of interest.
Ex: corn harvesting takes place upstream of cereal processing, and cereal processing takes place upstream of cereal packaging
11
Q
Downstream
A
Activities or firms that are positioned later in the supply chain relative to some other activity or firm of interest
Ex: sewing a shirt takes place downstream of weaving the fabric, and weaving the fabric takes place downstream of harvesting cotton
12
Q
First- Tier Supplier
A
A supplier that provides products or services directly to a firm
13
Q
Second- Tier Supplier
A
A supplier that provides products or services to a firm’s first-tier supplier
14
Q
Supply Chain Operations Reference Model (SCORR)
A
A framework developed and supported by the Supply Chain Council that seeks to provide standard descriptions of the processes, relationships, and metrics that define supply chain management
15
Q
SCOR Areas
A
- Planning activities
- Sourcing activities
- Make or production activities
- Delivery actives
- Return Activities
16
Q
SCOR Area Planning Activities
A
Seek to balance demand requirements against resources and communicate these plans to the various participants
17
Q
SCOR Area Sourcing Actives
A
Include identifying, developing, and contracting with suppliers and scheduling the delivery of incoming goods and services
18
Q
SCOR Area Make or Production Activities
A
Cover the actual production of goods and services
19
Q
SCOR Area Delivery Activities
A
Include everything from entering customer orders and determining delivery dates to storing and moving goods to their final destination
20
Q
SCOR Area Return Activities
A
Activities necessary to return and process defective or excess products or materials
21
Q
Trends in Supply Chain
A
- Electronic commerce
- Increase competition and globalization
- Relationship management
22
Q
Trends in Supply Chain- Electronic Commerce
A
Use of computer and telecommunication technologies to conduct business via electronic transfer of data and documents
23
Q
Trends in Supply Chain- Increased Competition and Globalization
A
- Rate of change in markets, products and technology increases
- Managers make decisions on shorter notice and with less information
- Customers are demanding delivery quicker
24
Q
Trends in Supply Chain- Relationship Management
A
Manage relationship with upstream suppliers and downstream suppliers
25
Structural Element
Includes tangible resources, such as buildings, equipment, and computer systems
26
Major Decisions Addressed by a Strategy
- Structural element
| - Infrastructural element
27
Infrastructural Element
Includes policies, people, decision rules, and organizational structure choices made by a firm.
28
Strategy
A mechanism by which a business coordinates its decisions regarding structural and infrastructural elements
29
Missions Statement
- A statement that explains why an organization exists
| - Describes what is important to the organization, called its core values, and identifies the organization's domain
30
Business Strategy
Strategy that identifies a firm's targeted customers and sets a time frames and performance objectives for a business
31
Core Competency
An organizational strength or ability, developed over a long period, that customers find difficult or even impossible to copy
32
Functional Strategy
- A strategy that translates a business strategy into specific actions such as marketing, human resources, and finance
- This should align with the overall business strategy with each other
33
Operations and Supply Chain Strategy
- A functional strategy that indicates how structural and infrastructural elements within the operations and supply chain areas will be acquired and developed to support the overall business strategy
- Ex: Choosing the amount of capacity and sourcing strategies
34
Objectives of Operations and Supply Chain Strategy
- Help management choose the right mix of structural and infrastructural elements, based on clear understandings of the performance dimensions valued by customers and the trade-offs involved
- Ensure that the firm's structural and infrastructural choices are strategically aligned with the firm's business strategy
- Support the development of core competencies in the firm's operations and supply chains
35
Structural Decisions Categories
- Capacity
- Facilities
- Technology
36
Capacity- Structural Decisions Categories
Amount, type, and timing of capacity changes
37
Facilities- Structural Decisions Categories
- Services/manufacturing, warehouses, distribution huts
| - Size, location, degree of specification
38
Technology- Structural Decisions Categories
Service/manufacturing process, material handling equipment, transpiration equipment, information systems
39
Infrastructural Decision Categories
- Organization
- Sourcing/perchasing
- Planning and control
- Business Practices and Quality Management
- Product and source development
40
Value Index
A measurement that uses the performance and importance scores for various dimensions of performance for an item or service to calculate a score that indicates the overall value of an item or service to a customer
41
Performance Dimensions
1. ) Quality
2. ) Time
3. ) Flexibility
4. ) Cost
42
Quality
The characteristics of a product or service that bear on its ability to satisfy stated or implied needs
43
Performance Quality
A sub-dimension of quality that addresses the basic operating characteristics of a product or service
44
Conformance Quality
A subdimension of quality that addresses whether a product was made or a service preformed to specifications
45
Reliability Quality
A subdimension of quality that addresses whether a product will work for a long time without failing or requiring maintenance
46
Delivery Speed
A performance dimension that refers to how quickly the operations or supply chin function can fulfill a need once it has been identified
47
Delivery Reliability
A performance dimension that refers to the ability to deliver products or services when promised
48
Delivery Window
The acceptable time range in which deliveries can be made
49
Flexibility
The performance dimension that considers how quickly operations and supply chains can respond to the unique needs of customers
50
Mix Flexibility
The ability to produce a wide range of products and services
51
Changeover Flexibility
The ability to provide a new product with minimal delay
52
Volume Flexibility
The ability to produce whatever volume the customer needs
53
Trade-Off
A decision by a firm to emphasize one performance dimension over another, based on recognition that excellence on some dimensions may conflict with excellence on others
- Ex: a marathon and long distance runner cannot do both
54
- Order Winner
A performance dimension that differentiates a company's product or services from its competitors. Firms win a cusomer's business by providing superior levels of performance on order winners
55
Order Qualifier
- A performance dimension on which customers expect a minimum level of performance.
- Superior performance is not an order qualifier will not, by itself, give a company a competitive advantage
56
Stages of Alignment between Supply Chain and Operations Strategies
1- Internally Neutral
2- Externally Neutral
3- Internally Supportive
4- Externally Supportive
57
Internally Neutral Stage of Alignment
- Management seeks only to minimize any negative potential in the operations and supply chain areas
- No effort made to link these areas with the business strategy
58
Externally Neutral Stage of Alignment
- Industries practice is followed, based on the assumption that what works for competitors will work for the company
- No effort to link the operations and supply chain areas with the overall business strategy
59
Internally Supportive Stage of Alignment
- Operations and supply chain areas participate in the strategic debate
- Management recognizes that the operations and supply chain structural and infrastructural elements must be aligned with the business strategy
60
Externally Supportive Stage of Alignment
- Operations and supply chain areas do more than just support the business strategy
- Business strategy actively seeks to exploit the core competencies found within these areas
61
Manufacturing and Service Processes are Important to Firms Because
- Tend to be expensive and far reaching
- Managers must make sure that the process they choose best support their overall business strategy and the needs of their targeted customers
- Process decisions deserve attention- different processes have strengths and weaknesses
62
Questions to Ask When Selecting a Manufacturing Process
- What are the physical requirements of the company's product?
- How similar are one another are the products the company makes?
- What are the company's production volumes?
- Where in the value chain does customization take place (if at all)?
63
Flexible Manufacturing Systems (FMSs)
Highly automated batch processes that can reduce the cost of making groups of similar products
64
Production Line
A type of manufacturing process used to product a narrow range of standard items with identical or highly similar designs
65
Characteristics of a Production Line
- Follows a product-based layout
- Steps are usually linked by some system that moves the items from one step to the next
- Suitable for high-volume production of the product(s) characterized by similar design attributes
- Need high volumes to justify the required investment in specialized equipment and labor
- Are inflexible with regard to items that do not fit the design characteristics of the production line
66
Product- Based Layout
A type of layout where resources are arranged sequentially, according to the steps required to make a product
67
Cycle Time
For a line process, the actual time between completions of successive units on a production line
68
Continuous Flow Process
- A type of manufacturing process that produces highly standardized products using a tightly linked, paced sequence of steps
- Closely resembles a production line process.
- The main difference is the form of the product, which usually cannot be broken into discrete units.
- Ex: yarns and fabrics, food products, and chemical products like oil and gas
69
Job Shop
- A type of manufacturing process used to make a wide variety of highly customized products in quantities as small as one.
- They are characterized by general puspose equipment and workers who are broadly skilled workers
- Main emphasis is meeting a customer's unique requirements
- Product design is not standardized and work closely with customer
- Typically follow a functional layout
- Ex: custom furniture, specialized machine tools used by manufacturers, and restoration and refurbishing work
70
Functional Layout
- A type of layout where resources are physically grouped by a function
- Ex: molding, welding, paining
- Process steps required vary from one job to the next
71
Batch Manufacturing
- A type of manufacturing process where items are moved through different manufacturing steps in groups or batches
- Fits between job shops and lines in terms of production volumes and flexibility and strikes a balance between the flexibility of job shops and the efficiency of a line
- The most common type of manufacturing process
- The sequence of steps is not as tightly linked as the production line
72
Flexible Manufacturing Systems
Highly automated batch process that can reduce the cost of making groups of similar products
73
Fixed-Position Layout
A type of manufacturing process in which the position of the product is fixed. Materials, equipment, and workers are transported to and from the product
- Ex: shipbuilding, construction projects, and traditional homebuilding
74
Hybrid Manufacturing Process
General term referring to a manufacturing process that seeks to combine the characteristics, and hence advantages, of more than one of the classic processes
- Ex: include flexible manufacturing systems, machining centers, and group technology
75
Machining Center
A type of manufacturing process that completes several manufacturing steps without removing any items from the process
76
Group Technology
A type of manufacturing process that seeks to achieve the efficiencies of a line process in a batch environment by dedicating equipment and personnel to the manufacture of products with similar manufacturing characteristics
77
Cellular Layout
Type of layout typically used in group technology settings in which resources are physically arranged according to the dominant flow of activities for the product family
78
Product Family
In group technology, a set of products with very similar manufacturing requirements
79
Four Levels of Customization
1. ) Made to Stock (MTS)
2. ) Assemble to Order (ATO)
3. ) Make to Order (MTO)
4. ) Engineer to Order (ETO)
80
Make-to-Stock (MTS) Products
- Products that require no customization
| - Are typically generic products and produced in large enough volumes to justify keeping a finished goods inventory
81
Assemble-to-Order (ATO) or (Finish-to-Order Products)
- Products that are customized only at the very end of the manufacturing process
- Ex: a T-shirt with a company name
82
Make-to-Order (MTO) Products
- Products that use standard components but have customer-specific final configuration of those components
- Ex: custom refrigeration units
83
Engineer-to-Order (RTO) Products
Products that are designed and produced from the start to meet unusual customer needs or requirements. They represent the highest level of customization
84
Upstream Activities
In the context of manufacturing customization it is the activities that occur before the point of customization
85
Downstream Activities
In the context of manufacturing customization it is the activities that occur at or after the point of customization
86
Law of Variability
- Greater random variability either demanded of the process or inherent in the process itself or in the terms processed, the less productive the process is
- Customization- Completing upstream activities off-line help isolate those activities from the variability caused by either timing or unique requirements of individual customers
87
When Customization Occurs Early in the Supply Chain
- Flexibility in response to unique customer needs will be greater
- Lead times to the customer will tend to be longer
- Products will tend to be more costly
88
When Customization Occurs Late in the Supply Chain
- Flexibility in response to unique customer needs will be limited
- Lead times to the customer will tend to be shorter
- Products will tend to be less costly
89
Service Processes- Dimensions on Which Services can Differ
- Nature of service package
- Degree of customization
- Level of customer contact
90
Service Package
A package that includes all the value-added physical and intangible activities that a service organization provides to a customer
Emphasis on physical and intangible activities
91
Physical Activities
More management's focus will be towards capital expenditures (buildings, planes, and trucks) material costs, and other tangible assets
92
Intangible Activities
More critical are the training and retention of skilled employees and the development of the firm's knowledge assets.
93
Service Customization
Ranges from highly customized to standardized
94
As Service Customization Decreases
The service package becomes more standardized
95
As Service Customization Increases
Service package becomes less predictable and more variable
96
Customer Contact
The degree determines the relative importance of front room and back room operations in a service process
97
Front Room
Physical or virtual point where the customer interfaces directly with the service organization
- Ex: sales floor in a retail store
98
Back Room
Part of a service operation that is completed without direct customer contact
- Ex: packages sorting at FedEx, Testing medical samples
99
Service Blueprinting
Specialized form of business process mapping the layers out the service process from the viewpoint of the customer and parses out the organization's service actions based on
100
Service Positioning
Service operations complete and position themselves in the marketplace based on three dimensions
1. ) Nature of service package
2. ) Degree of customization
3. ) Degree of customer contact
101
Line Balancing
Technique used in developing product-based layouts that work by assigning tasks to a series of linked workstations in a manner that minimizes the number of workstations and minimizes the total amount of idle time at all stations for a given output level
102
Steps to Line Balancing
1. ) Identify all of the process steps required, their times, immediate predecessors and total time for all tasks
2. ) Draw a presence diagram
3. ) Determine takt time for the line
4. ) Compute a theoretical minimum number of workstations needed
5. ) Use a decision rule to assign tasks to workstations
6. ) Evaluate the performance of the proposed line by calculating some basic performance measures
103
Takt Time
- In production line setting- the available production time devided by the required output rate
- Sets the maximum allowable cycle time for a line
104
Takt Time Formula
Available production time / required output rate
105
Assigning Department Locations in Functional Layouts
- Minimize the distance traveled
| - Arrange functional areas or departments so that departments are close who work together
106
Process
A set of logically related tasks or activities performed to achieve a defined business outcome
107
Primary Process
- A process that addresses the main value-added activities of an organization
- Ex: delivering a service and manufacturing a product
108
Support Process
- A process that performs necessary, albet non value-added, activities
- Ex: evaluating suppliers, recruiting new workers
109
Development Process
- A process that seeks to improve the performance of primary and support processes
- Ex: developing new products, performing basic reasearch
110
Mapping
The process of developing graphic representations of the organizational relationships and/or activities that make up a business process
111
Purpose of Mapping
- Creates common understanding of the content of the process; its activities, its results and who performs various steps
- Defines boundaries of the process
- Provides a baseline against which to measure the impact of improvement efforts
112
Process Map
A detailed map that identifies the specific activities that make up the informational, physical, and/or monetary flows of a process
113
Process Map Rules
- Identify the entity that will serve as the focal point
- Identify clear boundaries and staring and ending points
- Keep it simple
114
Swim Lane Process Map
A process map that graphically arrange the process steps so that users can see who is responsible for each step
115
Measures of Process Performance
1. ) Quality
2. ) Cost
3. ) Time
4. ) Flexibility
116
Productivity
A measure of process performance; the ratio of outputs to inputs
117
Productivity Equation
Outputs/inputs
118
Single-Factor Productivity
- A productivity score that measures output levels relative to single input
- Ex: number of calls a sales person makes per hour
119
Multifactor Productivity
- A productivity score that measures output levels relative to more than one input
- Ex: sales dollar generated- has labor, materials and machine costs
120
Efficiency
- A measure of the process performance; the ratio of actual outputs to standard inputs.
- Usually expressed as a percentage
121
Efficiency Formula
100% (actual outputs/ standard outputs)
122
Standard Output
An estimate of what should be produced, given a certain level of resources
123
Cycle Time
- The total elapsed time needed to complete a business process
- Also called throughput time
124
Percent Value-Added Time
- A measure of process performance
| - The percentage of total cycle time that is spent on activities that actually provide value
125
Benchmarking
The process of identifying, understanding and adopting outstanding practices from within the same organization or from other businesses to help improve performance
126
Competitive Benchmarking
The comparison of an organization's process with those of competing organizations
127
Process Benchmarking
- The comparison of an organization's process with those of noncompetitors that have been identified as having superior processes
- Ex: studying Walmarts methods without competing with Walmart
128
Six Sigma Methodology
A business improvement methodology that focuses an organization on
- Understanding and managing customer requirements
- Aligning key business processes to achieve those retirements
- Utilizing rigorous data analysis to understand and ultimately minimize variation in those processes
- Driving rapid and sustainable improvement to business processes
129
Champion
Senior level executive who "owns: a Six Sigma project and has the authority and resources needed to carry it out
130
Master Black Belt
A full-time Six Sigma expert who is "responsible for Six Sigma strategy, training, mentoring, deployment and results"
131
Black Belt
A fully trained Six Sigma expert with up to 160 hours of training who performs much of the technical analyses required of Six Sigma projects, usually on a full time basis
132
Green Belt
An individual who has some basic training in Six Sigma methodologies and tools and is assigned to a project on a part-time basis
133
Team Members
Individuals who are not trained in Six Sigma but are included on a Six Sigma project team due to their knowledge or direct interest in a process
134
Six Sigma People
- Black belt
- Green belt
- Team members
- Master black belt
- Champion
135
DMAIC (Define Measure Analyze Improve Control)
A Six Sigma process that outlines the steps that should be followed to improve an existing business process
- Define the goals of the improvement activity
- Measure the existing process
- Analyze the process
- Improve the process
- Control the new process
136
DMADV (Define Measure Analyze Design Verify)
A Six Sigma process that outlines the steps needed to create completely new business processes or products
137
Continuous Improvement
The philosophy that small, incremental improvements can add up to significant performance improvements over time
138
Root Cause Analysis
A process by which organizations brainstorm about possible causes of problems (effects) and then, through structured analysies and data-gathering efforts, gradually narrow the focus to a few root causes
139
Cause-and-Effect Diagram
A graphical tool used to categorize the possible causes for a particular result
140
The Five M's
The five main branches of a typical cause and effect diagram
141
Components of the Five M's
1. ) Manpower
2. ) Methods
3. ) Materials
4. ) Machines
5. ) Measurements
142
Manpower
People do not have the right skills, authority or respect.
143
Methods
Poor business practices- poor process, products, or service designs
144
Materials
Poor quality inputs
145
Machines
Equipment is not capable of doing the job
146
Measurements
Performance measurements that are not geared towards eliminating the problem
147
Five Whys
- An approach used during the narrow phase of root cause analysis, in which trams brainstorm successive answers to the question "why is this a cause of the original problem?"
- The name comes from the general observation that the questioning process can require up to five rounds
148
Scatter Plot
A graphical representation of the relationship between two variables
149
Check Sheet
A sheet used to record how frequently a certain event occurs
150
Pareto Chart
A special form of bar chart that shows frequency counts from highest to lowest
151
Bar Graph
Graphical representation of data that places observations into specific categories
152
Histogram
A special form of bar chart that tracks the number of observations that fall within a certain interval
153
Run Chart
A graphical representation that tracks changes in a key measure over time
154
How the Standardize Process Should be
Consider tools suchas process mapping and DMAIC to be overused and applied in environments where flexibility and variability in outcomes are valued
155
Four Types of Processes
1. ) Mass process
2. ) Mass customization
3. ) Artistic process
4. ) Nascent (broken) process
156
Mass process
Output the same every time
157
Mass Customization
Variation is controlled
158
Artistic process
Variability in process and outputs are valued
159
Nascent (broken) process
Mismatch between what the consumer wants and what the process is capable of providing
160
Business Process Reengineering (BPR)
A procedure that involves the fundamental rethinking and radical redesign of business processes to achieve dramatic organizational improvements in such critical measures of performance as cost, quality, service and speed
161
Supply Chain Operations Reference (SCOR) Model
A comprehensive model of the core management processes and individual process types that, together, define the domain of supply chain management
162
Five Core Management Processes
1. ) Source
2. ) Make
3. ) Deliver
4. ) Return
5. ) Plan
163
Source Five Core Management Processes
Process that procure goods and services to meet planned or actual demand
164
Make Five Core Management Processes
Process that transform products to a finished stat to meet planned or actual demand
165
Deliver Five Core Management Processes
Process that provide finished goods and services to meet planned or actual demand. The process include order management as well as logistics and distribution activities
166
Return Five Core Management Processes
Process associated with returning or receiving returned products for any reason
167
Plan Five Core Management Processes
Process that balance aggregate resources with requirements
168
Quality
- The characteristics of a product or service that bear on its ability to satisfy stated or implied needs
- A product or service that is free of deficiencies
169
Perspectives on Quality
1. ) Value perspective
| 2. ) Conformance perspective
170
Value Perspective
A quality perspective that holds that quality must be judged, in part, by how well the characteristics of a particular product or service align with the needs of a specific user
171
Eight Dimensions of Quality
1. ) Performance
2. ) Features
3. ) Reliability
4. ) Durability
5. ) Conformance
6. ) Aestetics
7. ) Serviceability
8. ) Perceived quality
172
Performance- Eight Dimensions of Quality
Basic operating characteristics of the product and service
173
Features- Eight Dimensions of Quality
What extra characteristics the product has
174
Reliability-Eight Dimensions of Quality
How long can a product go before needing maintenance
175
Durability- Eight Dimensions of Quality
- Useful life of the product
| - How it handles extreme use
176
Conformance- Eight Dimensions of Quality
- Did the product perform to expectations
| - Ex: number of defects in the car
177
Aestethics- Eight Dimensions of Quality
How the product appeals to the senses
178
Serviceability- Eight Dimensions of Quality
How easy it is to repair the product
179
Perceived Quality- Eight Dimensions of Quality
What the reputation is of the product/ service
180
Conformance Perspective
A quality perspective that focuses on whether or not a product was made or a service was performed as intended
181
Total Cost of Quality
- Prevention costs
- Appraisals cost
- Internal failure cost
- External failure cost
182
Internal Failure Costs
Cost caused by defects that occur prior to delivery to the customer, including money spent on repairing on reworking defective products, as well as time wasted on these activities.
183
External Failure Costs
Cost incurs by defects that are not detected until a product or service reaches the customer
184
Appraisal Costs
Costs a company incurs for assessing its quality levels
185
Prevention Costs
The costs an organization incurs to actually prevent defects from occurring to begin with
186
Total Cost of Quality Curve
The curve that suggests that there is some optimal quality level, Q*. The curve is calculated by adding costs of internal and external failures, prevention costs, and appraisals cost
187
Total Quality Management (TQM)
A managerial approach in which an entire organization is managed so that is excels in all quality dimensions that are important to customers
188
Principles of Total Quality Management (TQM)
1. ) Customer focus
2. ) Leadership involvement
3. ) Employee empowerment
4. ) Quality assurance
5. ) Strategic partnerships
6. ) Strategic quality plan
189
Continuous Improvement
A principle of TQM that assumes there will always be room for improvement, no matter how well an organization is doing
190
Employee Empowerment
Giving employees the responsibility, authority, training, and tools necessary to manage quality
191
Quality Assurance
The specific actions firms take to ensure that their products, services, and processes meet the quality requirements of their customers
192
Quality Function Deployment (QFD)
A technique used to translate customer requirements into technical requirements for each stage of product development and production
193
Statistical Quality Control (SQC)
Application of statistical techniques to quality control
- Process capability
- Six Sigma Quality
- Control Charts
- Acceptance sampling
194
Strategic Quality Plan
An organizational plan that provides for a vision, guidance, and measurements to drive the quality effort forward and shift the organization's course when necessary
195
Process Capability Ratio (Cp)
- A mathematical determination of the capability of a process to meet certain quality standards
- Goal to get greater than one- means process is capable of meeting standards being measured
196
Upper Tolerance Limit (UTL)
- The highest acceptable value for some measure of interest
| - Ex: weight, temperature,or time
197
Lower Tolerance Limit (LTL)
The lowest acceptable value for some measure of interest
198
Process Capability Index (Cpk)
A mathematical determination of the capability of a process to meet certain tolerance limits
199
Six Sigma Quality
- Level of quality that indicates that a process is well controlled
- Associated with Motorola, which named one of its key operational incentives Six Sigma Quality
- Goal is to get capability ratio greater than two
200
Control Chart
- A specialized run chart that helps an organization track changes in key measures over time
- Shows continuous variables and attributes
201
Continuous Variable
A variable that can be measured along a continuous scale, such as weight, length, height, and temperature
202
Attribute
A characteristic of an outcome or item that is accounted for by its presence or absence, such as "defective" versus "good: or "late: versus "on-time"
203
Sampling
Using carefully selected samples to get a fairly good idea of how well a process is working
204
Good Sampling is One Where
Every outcome has an equal chance of being selected into the sample
Random sample of the entire population
205
Sample Average (X Bar)
A key measure that represents the central tendency of a group of samples used in conjunction with range (R)
206
Range (R)
A key measure that represents the variation of a specific sample group, used in conjunction with sample average (x-bar)
207
Proportion
A measure that refers to the presence or absence of a particular characteristic
208
Control Limits
- The upper and lower limits of a control chart
| - They are calculated so that if a sample falls inside the control limits, the process is considered in control
209
X Bar Chart
A specific type of control chart for a continuous variable that is used to track the average value of future samples
210
R Chart
A specific type of control chart for a continuous variable that is used to track how much the individual observation within each sample vary
211
P Chart
A specific type of control chart for attributes that is used to track sample proportions
212
Acceptance Sampling
The process of sampling a portion of goods for inspection rather than examining the entire lot
213
Acceptance Quality Level (AQL)
- In acceptance sampling
| - A cut-off value that represents the maximum defect level at which a coonsumer would always accept a lot
214
Low Tolerance Percent Defect (LTPD)
- In acceptance sampling
| - The highest defect level a consumer is willing to "tolerate"
215
Consumer's Risk (B)
- Acceptance sampling
| - The probability of accepting a lot of quality worse than LTPD level
216
Producer's Risk
- Acceptance sampling
| - The probability of rejecting a lot with quality better than AQL level
217
Operating Characteristics (OC) Curve
- Curve in acceptance sampling
- Used to show the probability of accepting a lot, given the actual fraction defective in the entire lot and the sampling plan being used.
- Different sampling plans will result in different OC curves
218
ISO 9000
- A family of standards, supported by the International Organization for Standardization, representing an international consensus on good quality management practices.
- Addresses business processes rather than specific outcomes
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Just in Time (JIT)
- Philosophy of manufacturing based on planned elimination of all waste and on continuous improvement of productivity
- Applies to all forms of manufacturing and to many service industries as ell
- Used synonymously with lean
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Lean
- A philosophy of production that emphasizes the minimization of the amount of all the resources (including time) used in the various activities of an enterprise
- Involves identifying and eliminating non-value-adding activities in design, production, supply chain management and dealing with customers
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8 Characteristics of Waste
1. ) Overproduction
2. ) Waiting
3. ) Unnessary transportation
4. ) Inapproprite process
5. ) Unnecessary Inventory
6. ) Unnessary/Excess Motion
7. ) Defects
8. ) Underutalization of employees
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Waste- Overproduction
Inflexible and unreliable process may cause organizations to produce goods before they are required
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Waste- Waiting
Inefficient layouts or an inability to match demand with output levels may cause waiting
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Waste- Unnessary Transportation
Unnecessary transportation
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Waste- Innapropriate process
Companies use hard process when easier ones will work
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Waste- Unnessary Inventory
Uncertainty with regards to quality levels and delivery lead times
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Waste- Unnessary/Excess Motion
Poorly designed processes
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Waste
Any activity that does not add value to the goods or service in the eyes of the consumer
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Keban System
Production control approach that uses containers, cards, or visual cues to control the production and movement of goods through supply chain
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Characteristics of Keban System
- Use signaling mechanisms to indicate when specific items should be produced or moved
Can be used to synchronize activities either within a plant or between supply partners
- Are not considered planning tools but control mechanisms that are designed to pull parts or goods through the supply chain based on downstream demand
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Two Card Keban System
Special form that uses one card to control production and another card to control movement of materials
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Cards in Two card system
Move and production
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Move Card
Used to indicate when a container of parts should be moved to the next process
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Production Card
Used to indicate when another container of parts should be produced
