Final Exam Flashcards
(104 cards)
1
Q
what is TQM
A
total quality management is managing organization so that it excels on all dimensions that are important to the customer
2
Q
what are the two fundamental objectives of TQM
A
- Process: something that works for the customer needs
2. Consistency: understanding and constantly improving the process
3
Q
what are the 4 TQM commitments
A
- commitment to customer satisfaction
- commitment to understanding/constantly improving system
- commitment to complete employee commitment
- commitment to data-based decision making
4
Q
name the three quality gurus
A
- Crosby
- Deming
- Juran
5
Q
what did crosby say about quality
A
conformance to requirements
6
Q
what did deming say about quality
A
a predictable degree of uniformity and dependability at low cost and suited to the market
7
Q
what did jura say about quality
A
fitness for use; satisfies customer needs
8
Q
design quality
A
the inherent value of the product in the marketplace; the value of that item to me as a customer
9
Q
conformance quality
A
the degree to which the product of service design specs are met (more engineering based)
10
Q
what might be the most important TQM commitment?
A
total employee involvement and commitment; quality is everyones job; you should not rely on inspecting step to validate quality; might require additional training
11
Q
the two types of variations
A
- random - natural variation inherent in any system
- assignable - changes in process that can be attributed to a specific cause i.e. equipment, improper training, or bad materials
12
Q
detection
A
reacting to problems as they arise
13
Q
prevention
A
taking care of special cases by removing assignable variations in the system (more ideal)
14
Q
what are the 4 costs of quality?
A
appraisal - same thing as detection; the costs of inspecting and texting to ensure quality
prevention - sum of p costs
internal failure costs - scrapping, OT, rush shipping
external failure costs - recalls
15
Q
C suite is more concerned with ______
A
external failure costs
16
Q
ISO9000
A
international organization for standardization: “document what you do and do as you document”…focuses on the consistency aspect of TQMl; some kind of a focus on suppliers??
17
Q
what is six sigma?
A
a methodology; seeks to improve the quality by identifying and elimination the variations in manufacturing or business processes; each SS project has defined sequence of steps
18
Q
how does six sigma work?
A
uses quality management methods (like stats) and then creates an infrastructure of experts to implement and use these methods within the organization
19
Q
if implemented, there would be _____ defects per million
A
3.4
20
Q
what are the six key concepts of six sigma?
A
- critical to quality
- defect
- process capability
- variation
- stable operations
- design for six sigma
21
Q
critical to quality
A
attributes most important to the customer; if the customer doesn’t want it then don’t do it
22
Q
defect
A
failing to deliver what the customer wants
23
Q
process capability
A
what your process can deliver…is capable of maintaining your sigma
24
Q
variation
A
what the customer sees and feels
25
stable operations
ensuring consistent, predictable processes to improve variations
26
design for six sigma
designing to meet customer needs and process capability; every part of the manufacturing process has to be aware of the six sigma
27
what is the six sigma methodology
DMAIC
define - identify customers and their priorities
measure - determine how to measure the process and how it is performing
analyze - determine the most likely causes of defects
improve - identify means to remove the causes of defects
control - figure how to maintain the improvements
28
attributes
quality characteristics that are classified as wither conforming or not conforming; yes/no
p-charts
29
variable
characteristics that are measured using an actual value; measuring
x bar and r chart
30
what does x bar mean
accuracy
31
what does r chart mean
precision
32
a process is out of control if:
1. above/below UCL/LCL
2. 2 pt spike near top/bottom (consecutive)
3. 5 consecutive above or below
33
what are the 2 ways to ensure quality?
1. SPC (x chart, r chart, p chart)
| 2. acceptance sampling (been around a lot longer than SPC)
34
what is acceptance sampling?
performed on goods that already exist to determine what percentages of the products conform to specifications ; executed through a sampling plan; results include accept, reject, or retest
35
what are the purposes of acceptance sampling?
1. determine quality level
| 2. ensure quality is within predetermined level
36
how to design an acceptance sampling plan
1. determine how many units to sample from a lit
| 2. determine eat maximum number of defective items that can be found in the lot before it is rejected (AQL)
37
AQL
acceptance quality level; maximum acceptable percentage of defectives defined by producer
38
what is lean manufacturing/lean production?
consider the use of materials on anything other than adding value for the end customer to be wasteful and should be eliminated..while also doing less work
39
what are the four rules of "lean" logic
1. lean is based on the logic that nothing will be produced until it is needed
2. a sale pulls a replacement from the last position in the system
3. this triggers an order to the factory production line
4. each upstream station then pull fro the next upstream
40
value chain
each step in the supply chain should create value for the end customer
41
waste
anything that does not add value from the customers perspective
42
the two pillars of Toyota production
1. eliminating waste
| 2. respect for people
43
lean suppliers are:
able to respond to changes, lower prices, and higher quality
44
lean procurement is:
key is automation (e-procrument); suppliers must see into customers operations and customers must see into their suppliers operation
45
lean LAYOUTS principles
manufacturing cells, quality at the source, JIT production
46
lean PRODUCTION SCHEDULES principles
uniform plant loading, kanban production control systems
47
lean SUPPLY CHAIN principles
specialized plant, work with suppliers, building a lean supply chain system
48
preventative maintenance
to avoid downtime bc if a machine goes down then that cut into lean manufacturing; the actual operators are responsible for preventative maintenance
49
lean manufacturing is NOT ____
flexible/variable --> but most firms use a combo of lean and also flexible
50
manufacturing cells
a cell makes one specific item; eliminates movement and queue time, reduces inventory and employees needed
51
quality at the source
the responsibility is on the employees to get it right the first time and if they don't then to stop the process and fix it; workers are put in charge of quality and preventative maintenance
52
JIT
prouduce what is needed and nothing more; usually for repetitive manufacturing; vendors ship several times a day based on customer demand; JIT exposes problems hidden by inventory
53
what are Kanban System?
trigger to action; mean "sign" or "instruction card"; make up the PULL system; important part of lean production schedules
54
name three kanban approaches
1. K Squares - marked spaces on the floor to identify where material should be stored
2. Container System - signal device
3. Colored Golf Balls
55
each K container represents ____
the minimum production lot size
56
K calculations are _____
daily or weekly events!
- demand goes up, need more Ks
- figure out how to replenish in 2 hours instead of 1, need less Ks
57
Set-Up times in lean production
- reductions in set-up and change over necessary for smooth work flow
- Ks help reduce setup costs
- reduction in setup can help reduce inventory
58
specialized plants (focused factory)
perform tasks where they are most efficient rather than vertically integrating tasks; by outsourcing other activities the operation can be operated in a cost effective manner
59
Lean Supply Chain Overview
1. value must be defined jointly for each product family based on the customers perception
2. all firms along the value stream must make an adequate ROI
3. firms must work together to eliminate waste
4. when cost targets are met, then set new analyzes and goals for continuous improvement
5. every participating form has the right to examine very activity relevant to the value stream
60
service operation waste uncertainty
1 uncertainty in task time (TIME)
2. volatility in demand
3. service location (related to demand)
61
explain what purchasing was before the use of outsourcing
use in vertically integrated businesses, purchased cost was financially important but strategically not the center of attention
62
in the past, sourcing was another name for _______
purchasing
63
what is strategic sourcing
the development and management of supplier relationships to acquire goods and services in a way that aids in a achieving the immediate needs of the business
64
as a result of globalization, sourcing now implies________
a more complex process suitable for products that are strategically important ; sourcing now includes collaboration
65
RFP
request for proposal; used for items that are more complex/expensive and where there may be a number of potential vendors
66
VMI
vendor management inventory; when a customer actually allows the suppliers to manage an item or group of items for them
67
strategic sourcing: questions to ask in the concept development / strategy phase
1. what do we want to achieve?
| 2. make in house or buy from a vendor?
68
strategic sourcing: questions to ask in the market research phase
1. what is our vendor pool and what are their capabilities
2. what is the subject matter literature research telling us
3. gartner "magic quadrant"
69
strategic sourcing: questions to ask in the requirements gathering stage
1. what do we want to achieve (again)
2. build requirements to meet the need/desire vs. conform to vendor solution
3. may involve extensive EPO involvement
70
contracting will have one or more of the following documents:
- purchase order
- Master Services Agreement
- statement of work
71
what is a SOW
statement of work: specific agreement, with time and/or deliverable parameters
72
what is a Master Services Agreement
general agreement between parties, overrides all other documents
73
the bullwhip effect
phenomenon of variability magnification as we move from the customer to the producer in the supply chain; a slight change in consumer sals ripples backwards as magnified oscillations upstream
74
what are some examples of ways to mitigate the bullship effect???????
continuous replenishment - a program for automatically supplying groups of items to customers on a regular basis using EDI (electronic data interchange) and forecasting
75
functional products
staples that people buy in a wide range of retail outlets like grocery stores and gas stations
76
innovative products
can allow for higher profit margins; but newness makes them unpredictable; competitors come in quickly making it necessary to always innovate
77
efficient supply chains
utilize strategies aimed at creating the highest cost of efficiency
78
risk-hedging supply chains
utilize strategies aimed at pooling and sharing resource in a supply chchian to share risk
79
responsive supply chain
utilize strategies aimed at being responsive and flexible
80
TCO
total cost of ownership; estimate of the cost of an item that includes all the costs related to the procurement and use of an item, including any related costs in disposing of the item; can be applied to internal costs or more broadly to costs throughout the supply chain
81
acquisition costs
purchase planning costs, quality costs taxes, purchase price, financing costs, searching cots
82
ownership costs
energy costs, maintenance and repair, financing, supply chain network costs
83
post-ownership costs
disposal, environmental costs, warranty, product liability, customer dissastification costs
84
outsourcing
moving some of a firm's internal activities and decision responsibility to outside providers; allows company to create a competitive advantage while reducing costs; an entire function may be outsources or some elements of an activity
85
purchasing/procrument/sourcing is usually tied into the overall function called _____
Procure to pay
86
what all is included in procure to pay
1. sourcing
2. procurement/contracting process
3. execution of goods transfer and receipt
4. invoice process
5. payment and reconciliation processes
87
potential improvements in the procure to pay
1. e-procrument
2. vendor managed inventories
3. blanket purchase orders
88
logistics
the art and science of obtaining, producing, and distributing material and product in the proper place and in the proper quantities
89
international logistics
managing these functions when the movement is on a global scale
90
third party logistics company
an outside company used to manage all or part of another company's logistics functions
91
logistic options
truck - great flexibility
ship - high capacity and low cost, but slow
plane - fast but expensive
train - low cost but slow and variable
pipeline - highly specialized and limited to liquids gases and solids in slurry form
hand deliver - last step and labor intensive
92
when it is best to outsource 3PL
- understanding local markets/emerging markets
- worldwide presence
- better coordination of internal capabilities
- "core competency"
93
when it is best to insource 3PL
- proprietary or security issues
- stable supply chain, able to effectively negotiate and control the related logistics
- industry alliances
- specific cost issues that are favorable to insourcing
94
why do people use 3PL?
as cost factors such as component price and transportation narrows among production locations, total landed cost become critical information for decision making; in addition to agility, speed, and increased capability
95
facility location factors
1. free trade zones
2. political risk
3. government barriers
4. trading blocs
5. environmental regulation
6. host community
7. competitive advantage
8. proximity to customers
9. business climate
10. total costs
11. infrastructure
12. quality of labor
13. suppliers
14. other facilities
96
what is competitive clustering
competitors in the same service industry locating close together; synergistic effects attracts more customers; facilities comparison shopping
97
saturation marketing
multiple facilities of the same company locating close together; segments to a high-density area into a small, focused market; cannibilation offset by closer proximity to more customers
98
co-location
putting personnel in (or very near) a customer's facility; they can often make decisions that will help meet customers need without the customer having to ask
99
how to obtain data for location decisions
1. syndicated data = commercially available, at a cost
2. primary research
3. POS (point of sale) like Dunhumby
100
cross-docking
large shipments are broken down into small shipments for local delivery in an area; minimizes inventory in the warehouse
101
hub and spoke systems
the sole purpose for the hub (warehouse) is sorting goods to consolidation areas where each area is assigned a specific location
102
the two plant location methods:
1. factor rating system
| 2. centroid method
103
factor rating system
- most widely used
- list of factors is developed
- range of possible points assigned to each factor
- each site is rated against each factor
- the sums of the assigned points for each site are computed
- the site with the most points is selected `
104
centroid method
- used for locating single facilities that considers existing facilities, distances between them, and the volume of goods to be shopped between them
- assumes outbound and inbound transportation costs are equal
