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Operations Management > OM Test 4 > Flashcards

OM Test 4 Flashcards

(117 cards)

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1
Q

fitness for use

A

the ability of a good or service to meet customer needs (quality)

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2
Q

Quality of conformance

A

the extent to which a process is able to deliver output that confirms to design specifications

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3
Q

Specifications

A

targets and tolerances determined by designers

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4
Q

service quality

A

consistently meeting or exceeding customer expectations (external focus) and service delivery system performance criteria (internal focus)

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5
Q

tangibles

A

what the customer sees, such as physical facilities, equipment and the appearance of employees

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6
Q

reliability

A

the ability to provide what was promised

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7
Q

responsiveness

A

the willingness to help customers and provide prompt service

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8
Q

assurance

A

the knowledge and courtesy of service providers and their ability to convey trust and confidence

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9
Q

empathy

A

caring, individual attention the firm provides its customers

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10
Q

principles of total quality

A

1) a focus on customers and stakeholders
2) a process focus supported by continuous improvement
3) participation and teamwork by everyone in the organization

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11
Q

ISO 9000:2000

A

quality standards that are internationally recognized and has set of basic principles for quality management

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12
Q

Deming

A

reduced uncertainty, 14 points, Deming cycle

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13
Q

Joseph Juran

A

quality is fitness for use, quality trilogy (planning, control, improvement), used stats

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14
Q

Philip B. Crosby

A

“Quality is Free”, absolutes of quality management

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15
Q

The GAP model

A

comparing to a set of expectations, recognizes that there are several ways to mismanage the creation and delivery of high levels of quality

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16
Q

Six sigma

A

eliminates causes of defects in processes by focusing on outputs that are critical to customers

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17
Q

defect

A

(nonconformance) any mistake or error that is passed on to the customer

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18
Q

Unit of work

A

the output of a process or an individual process step

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19
Q

how does the six sigma quantify quality performance?

A

defects per million opportunities

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20
Q

dpmo=

A

defects per million opportunities (in service its errors per million opportunities)

dpmo= (number of defects discovered/ opportunities for error) x 1,000,000

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21
Q

Six Sigma perfect quality

A

3.4

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22
Q

6 key concepts of six sigma

A

1) dpmo or epmo are standard metrics that can be applied to all parts of an organization
2) provide extensive training followed by project team deployment
3) corporate sponsors are responsible for supporting team activities
4) Create highly qualified process improvement experts
5) Ensure that appropriate metrics are identified early in the process and that they focus on business results
6) set stretch objectives for improvement

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23
Q

DMAIC process for implementing six sigma

A

1) Define: identify customers and their priorities, identify and define a suitable project, identify CTQs
2) Measure: how to measure process and how it is performing, measure current defects
3) Analyze: determine likely causes of defects and understand why defects are generated by identifying what causes process variation
4) Improve: identify means to remove causes of defects, confirm key variables, modify the process to stay within acceptable range
5) Control: determine how to maintain improvements, put tools in place to ensure that key variables remain within acceptable ranges under the modified process

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24
Q

CTQ

A

critical to quality characteristics

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25
concepts and methods for implementing six sigma
- elementary statistical tools - advanced statistical tools - product design and reliability - measurement - process control - process improvement - implementation and teamwork
26
cost of quality
costs associated with poor quality
27
prevention costs
those expended to keep nonconforming goods and services from being made and reaching the customer
28
appraisal costs
those expended on ascertaining quality levels through measurement and analysis of data to detect and correct problems
29
internal-failure costs
incurred as a result of unsatisfactory quality that is found before delivery
30
external-failure costs
incurred after poor quality stuff reaches the customer
31
Seven QC Tools
1) flowcharts 2) run charts and control charts 3) checksheets 4) histograms 5) pareto diagrams 6) cause-and-effect diagrams 7) scatter diagrams
32
flowcharts
process mapping to identify sequences and flows
33
run charts and control charts
run chart: line graph with data plotted over time | control charts: same but with control limits
34
histogram
graphically represent frequency of values within a specified group
35
pareto diagrams
separating the vital few from the trivial many causes
36
cause-and-effect diagram
fishbone diagram
37
scatter diagrams
graphical component of regression analysis
38
root cause analysis
used to designate the source of a problem
39
5-why technique
identifies chain of causes and source by asking why 5 times
40
kaizen
focuses on small, gradual and frequent improvements over the long term with minimum financial investment and with participation by everyone in the organization
41
kaizen blitz
an intense and rapid improvement process in which a team or a department throws all its resources into an improvement project over a short time period
42
poka-yoke
(Mistake proofing) uses automatic devices or methods to avoid simple human error (ex: flash drives can only be inserted one way
43
Quality control systems 3 components
1) a performance goal 2) a means of measuring actual performance 3) comparison of goal and actual performance
44
1:10:100 Rule
if a defect is corrected during design stage, it will cost $1 to fix. if a defect is corrected during production, it will cost $10 to fix. If a defect is discovered by the customer, it will cost $100 to fix.
45
quality at the source
(doing it right the first time) the people responsible for the work control the quality of their processes by identifying and correcting any defects or errors when they first are recognized or occur
46
supplier certification and management
(manufacturing) ensures conformance to requirements before value-adding operations begin
47
in-process control
(manufacturing) prevents defects before they leave
48
finished goods control
(manufacturing) verifies that product meets customer requirements
49
Statistical Process Control (SPC)
a methodology for monitoring quality of processes to help find and get rid of unwanted causes of variation
50
common cause variation
the result of complex interactions of internal variables (materials, tools, machines, info, workers, environment) - about 80-95% of variation - controlled by management
51
special (assignable) cause variation
from external sources that are not inherent in the process, appear sporadically and disrupt the random pattern of common causes - about 15% of variation - controlled by front-line employees and supervisors
52
A process is in control
if no special causes affect it's output
53
A process is out of control
if special causes are present
54
two basic mistakes when attempting to control a process
1) Adjusting a process that is already in control | 2) Failing to correct a process that is out of control
55
How to construct a control chart (6 steps)
1) Preparation: choose a metric to be monitored, determine the size basis and frequency, set it up 2) Data collection: record the data, calculate relevant stats, plot on the chart 3) Determine the trial control limits: draw the center line (process avg) on the chart, compute upper and lower control limits 4) Analysis and interpretation: investigate the chart for lack of control, eliminate, out of control points, recompute control limits if necessary 5) Use chart as a problem-solving tool: continue data collection and plotting, identify out of control situations and take corrective action 6) Determine process capability
56
continuous metric
one that is calculated from data that are measured as the degree of conformance to a specification on a continuous scale of measurement
57
discrete metric
calculated from data that are counted
58
Steps to x bar and r charts
1) calculate the x bar and r for each subgroup (n=subgroup size, k= number of subgroups) 2) calculate the overall process mean and range 3) calculate control limits
59
control limits for R
UCLr= D4*R | LCLr=D3*R
60
control limits for X double bar
UCLx=X+(A2*R) | LCLx=X-(A2*R)
61
D and A values on x bar and r charts are taken from
charts and depend on n value
62
Control charts: process is in control when
- no points are outside control limits - No. of points above and below center line is about the same - points seem to fall randomly above and below the center line - most points are near center line
63
Control charts: Identifying a shift in the process
when a lot of points are above or below the center line consecutively
64
p-chart
monitors the proportion of nonconforming items
65
p
the fraction of nonconforming in a sample
66
average fraction nonconforming
P bar= sum of p's over k
67
standard deviation
sp = square root of Pbar * (1-Pbar) over n
68
Control limits in p charts
UCLp= P+3(sp) | LCLp=P-3(sp)
69
if LCL is negative...
it is automatically set to zero
70
c-chart
monitors the number of nonconformances per unit when the size of the sampling unit is constant
71
Control limits for c charts
UCLc=Cbar+(3 times square root of Cbar) | LCLc=Cbar-(3 times square root of Cbar)
72
sample size in SPC implementation
smaller sample sizes are cheaper, larger sample sizes are more accurate
73
SPC is a useful methodology for processes that...
operate at a less than or equal to 3-sigma level
74
Process capability
the natural variation in a process that results from common causes
75
process capability study
a carefully planned study designed to yield specific information about the performance of a process under specific operating conditions
76
process capability index
the relationship between natural variation and specifications Cp = (USL-LSL) / 6s
77
Process capability index: what the numbers mean
Cp=1 means the natural variation is the same as the design specification width Cp<1 means a significant percentage of output will not conform to specifications Cp>1 means nearly all the output will conform
78
Normal Cp value required
1.66 or more
79
lean thinking
approaches that focus on the elimination of waste in all forms to obtain higher quality and lower costs
80
principles of lean operating systems
eliminate waste (non value added activities), increase speed and response, improve quality, reduce costs
81
5Ss
sort, set in order, shine, standardize and sustain
82
sort
each item is in the proper place
83
set in order
arrange materials so that they are easy to find and use
84
shine
clean work area
85
standardize
formalize procedures and practices
86
sustain
keep the process going
87
visual controls
indicators for operating activities that are placed in plain sight of all employees so that everyone can quickly and easily understand the status and performance of the work system ex: electronic scoreboards, painted floors showing where certain things should be, signal lights
88
Single Minute Exchange of Dies (SMED)
quick setup or changeover of tooling and fixtures in processes so that multiple products in smaller batches can be run on the same equipment
89
batching
producing large quantities of items as a group
90
single-piece flow
using batch sizes of one
91
Total productive maintenance (TPM)
focused on ensuring that operating systems will perform their intended function reliably
92
goals of TPM
1) maximize equipment effectiveness and eliminate unplanned downtime 2) create worker "ownership" of equipment
93
difference between lean and six sigma
lean focuses on streamlining processes, while six sigma focuses on root causes of problems Lean: efficiency, intuitive Six Sigma: effectiveness, requires advanced training
94
push system
produces finished goods inventory in advance of customer demand using a forecast of sales
95
pull system
units of production are withdrawn from preceding workstations as needed. Finished goods coincide with the actual rate of customer demand. (minimal inventories and maximum responsiveness)
96
Just-in-time systems are based on
pull production because it synchs the entire manufacturing process to the final assembly schedule.
97
kanban
a flag or piece of paper that contains all relavent info for an order, circulated within a JIT system to initiate withdrawal and production of items -simple visual controls
98
the number of kanban cards is directly proportional to the amount of
WIP inventory
99
project
a temporary and often customized initiative that consists of many smaller tasks and activities that must be coordinated and completed to finish the entire initiative on time and within budget
100
examples of some projects
market research studies, construction, movie production, software development, book publishing, wedding planning
101
the scope of project management
define, plan, organize, control, close
102
pure project organizational structure
team members are assigned exclusively to projects and report to a project manager -results in a duplication of resources
103
pure functional organizational structure
charters projects exclusively within functional departments | -ignores cross functional issues
104
matrix organizational structure
lends resources to projects while still maintaining functional control -minimizes duplication of resources and facilitates communication
105
all project management decisions involve three factors
time, resources and cost
106
key steps to plan projects
1) project definition 2) resource planning 3) project scheduling 4) project control
107
project network
a graphic that has circles (nodes) and arrows (arcs) to define relationships between activities (activity-on-node network representation)
108
resource planning...
includes developing time estimates for each activity and allocating resources that will be required
109
critical path
the sequence of activities that takes the longest time and defines the total project completion time
110
Critical path assumes
- activities are independent of one another - activity time estimates are accurate - activities are uninterrupted
111
Gantt charts
graphically depict the project schedule so that a project manager knows exactly what activities should be performed at a given time
112
crashing a project
reducing the total time to complete the project to meet a revised due date
113
crash time
the shortest possible time the activity can realistically be completed
114
crash cost
the total additional cost associated with completing an activity in its crash time rather than in its normal time
115
crash cost per unit of time
crash cost-normal cost / normal time-crash time
116
PERT
project evaluation and review technique
117
PERT estimates
optimistic time, most probably time, pessimistic time

Operations Management (4 decks)

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