Module 6 Flashcards
RFI
the acronym for request for information, which is a formal invitation you send to potential suppliers, asking them to provide detailed information for a specific SKU
Multi-criteria analysis
a valuable tool that can be applied to many complex decisions. Often seen a solving problems that are a choice among alernatives
Analytical Hierarchy Process
structured technique for organizing and analyzing complex decisions based on math and psychology
Competitive Bidding
involves soliciting formal “bids” from potential suppliers. When the bids are submitted, you analyze the bids and select the supplier that best meets your needs.
Reverse Auctions
are a form of competitive bidding where you invite suppliers to bid for the contract online in real-time.
Negotiation
is more expensive than bidding. You negotiate when your buying scenario is more complex or uncertain, but only after you have narrowed your supplier pool down to a small set of high-performing suppliers.
caveat emptor
the principle that the buyer alone is responsible for checking the quality and suitability of goods before a purchase is made.
nominal group technique
group brainstorming process involving problem identification, solution generation, and decision making
Balanced Scorecard measures
Customer Expectations, Operational Excellence, Future Capability Development, and Financial Performance
supplier certification
the formal process of working with selected suppliers to evaluate, certify, and improve performance
dock to stock
no longer quality check shipments, they go straight to warehouse or production
early supplier involvement
practice of inviting suppliers to participate in the early stages of new product development so they can shar their expertise right up front
vendor managed inventory
practice of turning over to suppliers the responsibility of managing your inventory
process capability analysis
the analysis that verifies that the supplier’s production process is capable of consistently producing product within the design specifications your engineers have set
guardbanding
Engineers set the product specifications higher than they need to be
Plan, Do, Check, Act (PDCA)
Plan—First, you need to define the problem and identify the root cause. Deming argued that you need to ask the question “Why?” five times in order to get past the superficial symptoms and to the real root cause. Once you know what the root causes are, you can develop an action plan.
Do—Next, you implement your corrective action to solve the problem.
Check—Then, you check to see if the corrective action really solved the problem. If you don’t follow through, you won’t make progress. Worse, members of your team will begin to view problem solving efforts as hollow “sloganeering.”
Act—Finally, if your solution worked, make it a formal part of the process. Share your process, solution, and results wherever and whenever possible. Now, it is time to look for new quality problems and their underlying sources of variance so you can begin the cycle anew.
Ishikawa cause-and-effect diagram
simple tool that helps you identify, isolate, and break down the major causes of variation
Pareto Chart
helps you make priorities visible by showing the frequency for which each phenomenon of interest occurs
Ishikawa cause-and-effect diagram sources of variation
People: Consider everyone who touches the process. What are the sources of human error? Some classic issues include poor training, fatigue, and lack of experience.
Methods: Look at every aspect of the process. How is it performed? How do policies, procedures, et cetera affect process performance?
Machines: Evaluate the equipment and technology used in the process. Are there any issues like poor maintenance, worn equipment, or the use of the wrong equipment that hurt process performance?
Materials. Assess ALL of the materials used in the process. How do defective, damaged, or poorly specified materials affect performance?
Measurements. Ask, “What data do you have to help you better understand process relationships and performance?”
Environment. Question how environmental conditions—e.g., location, time, temperature, et cetera—influence the process.
