exam 2 Flashcards
(100 cards)
1
Q
quality
A
ability of G/S to consistently meet or exceed expectatioms/requirements
2
Q
5 costs of quality
A
- prevention costs
- appraisal costs
- internal failure costs
- external failure costs
- ethical failure costs
3
Q
prevention costs
A
costs associated w preventing defects BEFORE they happen or G/S is in production
4
Q
appraisal costs
A
costs incurred when firm assesses performance level of it processes AFTER G/S is in production
5
Q
internal failure costs
A
costs resulting from defects, discovered during production of G/S
6
Q
external failure costs
A
costs that arise when defect is discovered after customer received G/S
7
Q
ethical failure costs
A
cost that arise by deceptively passing defective items such that it jeopardizes stockholders, customers, employees, partners, n creditors
8
Q
total quality management
A
the idea that 3 principles are important for achieving high level of process performance and quality
1. customer satisfaction
2. employee involvement
3. continuous improvement
9
Q
customer satisfaction
(total quality management)
A
ensure that:
1. conformance to specifications
2. value how well product serves its purpose at price customers are willing to pay
3. fitness for use-mechanical, looks, style, durable, reliable, craftsmanship, and serviceable
4. support
5.psychological impressions (atmosphere, image, aesthetics
10
Q
employee involvement
(total quality management)
A
- cultural change (internal customers must be satisfied before external)
- teams
11
Q
continuous improvement
(total quality management)
A
The Deming Wheel: PDCA Cycle
- plan improvement
- execute change
- analyze results.. did it work?
- institutionalize change, do it again, or abandon
12
Q
acceptance sampling
A
statistical techniques to determine if a batch of RM from supplier should be accepted or rejected based on inspection
13
Q
acceptable quality level
A
quality level desired by consumer
14
Q
acceptance sampling steps
A
- take n measure random sample
- if sample pass, entire batch is accepted
- if sample fail, inspect 100% and correct defective/rejected goods
15
Q
statistical process control
A
statistical techniques to determine whether a process is delivering what customer wants
16
Q
variation of outputs (finished g/s)
(statistical process control)
A
the idea that no 2 g/s are the same since processes used to produce them contain many sources of variation
17
Q
performance measurements
(statistical process control)
A
- variables - g/s traits that can be measured
- attributes - g/s traits that can be quickly counted for acceptable performance
18
Q
samples
(statistical process control)
A
- complete - inspect g/s at each stage for quality
- portion - take a portion of production
- distribution
19
Q
sample mean
A
sum of observations divided by the total number of observations
20
Q
sample range
A
largest observation - smallest in a sample
21
Q
categories of variation
(statistical process control)
A
- random cause
- assignable cause
22
Q
random cause
A
purely random, unidentifiable sources of variation that are unavoidable w the current process
23
Q
assignable cause
A
any variation causing factors that can be identified and eliminated
24
Q
control charts
A
time-ordered diagram that identifies abnormal variations, with a center line, upper control limit (UCL), and lower control limit (LCL).
25
1st control chart distribution
normal - no action needed
- look at pictures
26
2nd control chart distribution
run - take action
- look at pictures
27
3rd control chart distribution
sudden change - monitor
- look at pictures
28
4th control chart distribution
exceeds control limits - take action
- look at pictures
29
Statistical process control errors
1. Type 1 error
2. Type 2 error
30
type 1 error
error occurs when an employee concludes a process is out of control based on a sample outside control limits, though it’s due to random chance.
31
type 2 error
employee mistakenly concludes a process is in control because results fall within control limits, even though the process is actually out of control.
32
control charts for variables
R-chart - measure variability (how spread out) of the process
X-chart - measures whether the process is generating results, on avg, consistent w a target value
33
control charts for attributes
p-chart - measure proportion of defective g/s generated by the process
c-chart - measures # of defects when more than 1 is presented
34
There are equations, look back at C03 slides
35
process capability
ability of process to meet design specification for g/s
36
nominal value
target for design specifications
37
tolerance
allowance above or below the nominal value
Ex: nominal value =100
Tolerance of +- 1 means that length falls between 99 and 101
38
process capability ratio
- look back at slides for equations
39
process capability index
measures potential for process to generate defective outputs relative to either upper or lower specifications
40
inspections
check if:
1. how much/often
a. low $ - high volume - little
b. high $ - low volume - more
2. when to inspect?
a. incoming RM
b. finished products
c. before costly operation
d. before irreversible process
c. before covering process
3. centralized or off site
41
Quality gurus (someone who made significant contribution)
W. Edward Deming
significant contributions:
1. Cease dependence on Mass inspection
2. eliminate suppliers w no statistical evidence of quality
3. institute modern methods of training on the job
42
Baldrige award for quality
(qyality awards)
1. characteristics of baldrige winner
A. Clear Quality Vision – Defined goals for quality and how to achieve them.
B. Senior Management Involvement- Leaders actively support and engage in quality efforts.
C. Strategic Planning – Thoughtful, well-structured approach to launching initiatives.
D. Rigorous Process Control – Consistent monitoring to ensure quality standards are met.
43
Baldrige award 7 major criteria
1. leadership
2. strategic planning
3. customer focus
4. measurement, analysis
5. HR workforce focus
6. operation focus
7. business results
44
capacity
max rate of output of a process or a system
- ex:
equipment
space (rent)
employee skills
45
When to use output measures of capacity?
when firm use high volume and standardized processes
- ex: unit/day
46
when to use input measures of capacity
when firm uses low-volume and flexible processes
- ex: labor hrs
47
utilization equation
avg output rate / max capacity x 100
48
economies of scale
avg unit costs decrease as output rate increases
49
diseconomies of scale
avg unit cost increase as output rate increase
50
capacity cushions
extra capacity a process keeps to manage sudden demand spikes or temporary production losses.
51
parts of capacity cushions
1. can vary with industry
a. capital intensive industries prefer cushions under 10%
b. hotel industry can live w 30-40% and supply uncertainty
2. larger cushions helps industries w high custom products, changing product mixes, and supply uncertainty
3. small cushion prefer expensive capital equip.
52
Timing and Sizing Expansion
1. sometimes based on market conditions
a. consumer interest
b. recent competitive mergers
2. expansionist strategy
- planned unused capacity
3. wait-and-see strategy
- planned used of short term option
53
estimating capacity requirement
for 1 service or prodcut processed at 1 operation w a 1 yr period, the capacity requirement, M, in number of machines
54
Evaluating capacity alternatives
1. growth rate and demand variability/patterns
2. costs of building and operating facilities of various sizes
3. rate and direction of technology changes
4. behavior of competitors
55
tools for capacity planning
1. waiting-line models
2. simulation
3. decision trees
56
waiting line models
useful in high customer-contact processes
57
simulation
useful when models are too complex for waiting-line analysis
58
decision trees
useful when demand is uncertain and sequential decisions (series of choice) are involved
59
importance of capacity decisions
1. impacts ability to meet future demand
- demand exceeds cap = loss customers
2. affects operating costs
(ex: rent, utility) ( ↑ capacity ↑ costs)
3. involves long term commitment
- contracts, leases
4. affects competitiveness
(lil cap = loss sales to competitor)
5. globalization adds complexity
- ↓ cap = all else being equal
- different regions have dif cap requirement
6. impacts long range planning
- cap must align w long-term goals
60
determinants of capacity
1. facilities
2. product/service design
3. process factors
4. human factors
5. Policy focus
6. operational factors
7. external factors
61
facilities
involves size, location, and layout
62
product/service design
where standardization increase capacity
- standardization = making product to the standards
63
process factors
Quality and batch can impact product efficiency
1. quality where bad quality = ↓ capacity
2. batch
- Mass-producing requires a system to be implemented
64
human factors
1. skills --> low skills = ↓ cap
2. turnover -->high turnover = ↓ cap
3. absenteeism --> high = ↓ cap
65
policy factors
weekends and overtime
66
operational factors
1. equipment types
2. inventory stocking decisions
3. shortages
67
external factors
1. union --> union restrictions = ↓ cap
2. regulations ↑ = ↓cap
68
capacity patter
1. long term
2. short terms
69
planning service capacity
1. needs to be near customers
- cap and location are closely tied
2. inability to store services
- cap must match demand
3. degree of volatility (unpredicted) of demand
- peak demand periods
70
constraint
any factor that limits the performance of a system and restricts its output
71
physical constraints
includes
1. machine
2. labor
3. work station capacity
4. material shortages
5. space
6. quality
without these, output can be produced
72
market constraints
producing a product that does not lead to sales
- ex: if people decide that plastic is bad, they they won't buy anything w plastics
73
managerial constraints
constraints that limits manager ability to make decisions
1. policy
2. metrics
3. mind sets
74
managing bottlenecks in SERVICE processes
1. throughput
2. bottleneck (discover it and eliminate)
75
theory of constraints
management approach that focus on actively managing those constraints
76
throughput
total time it takes for a job or customers to be processed from start to finish
77
bottleneck
Slowest part of process that holds everything up
-ex: step 1 take 5 mins
step 2 take 15 min
step 3 take 10
step 2 is bottleneck cuz it takes the longest
78
managing bottlenecks in manufacturing processes
1. job and batch processes
2. relieving bottlenecks
79
job and batch processes
- if no setup time and same utilization THEN
(time of product x demand) + product loads
- workstation w biggest load = bottleneck
80
relieving bottleneck
1. new equipment
- can take a long time
2. facility expansion
- can take a long time
3. hiring
- requires short time
4. multiple shifts
- require medium time
5. more days/week
81
drum-buffer-rope systems
regulate process flow at a bottleneck
- bottleneck schedule =drum
- time buffer (extra time) places before bottleneck to prevent disruption = buffer
- controls when material gets release into production process = rope
82
line balancing
assign work to stations in line to achieve desired output rate w smallest number of workstations
83
idle time
total amount of unproductive time when workers or machines are not actively working
ex: delays, disruption, waiting for materiala
84
efficiency
ratio of productive time to total time
85
% idle time or balance delay
amount by which efficiency falls short of 100%
86
project
set of activities w definite start n end point resulting in unique outcome for specific allocation of resources
87
program
interdependent set of projects w common purpose
-ex: well that product gas --> transfer to gas station
88
list of organizational structures projects
1. functional project
2. pure project
3. matrix project
4. organizational structure affects how projects are managed
89
function project
project for specific department
90
pure project
people from various department works tgt on a project exclusively
91
matrix project
Team member report to functional and pure leader
92
organizational structure affects how projects are managed
93
critical path
path that takes the longest to complete without any room for delays
94
earliest start time
earliest finish time of the task
95
earliest finish time
ES + estimated time
96
what to do when nodes has multiple directions? (ES+EF)
use the longest EF
97
latest finish time
latest start times of activity that follows
98
latest start time
latest finish time - estimated time
99
what to do when nodes has multiple directions? (LS+LF)
use smallest LS
100
