Test Review Flashcards by Jennifer Jablonski

Joseph Juran

Quality is “fitness for use”
Pareto Principle
Cost of Quality
General Management approach as well as statistics

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W. Edwards Deming

14 points for transformation of management

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Transformation of management

Constant purpose towards improvement
Systems, not employees, cause defects
Break down barriers between departments

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Ishikawa

Cause and effect diagrams- fishbone diagrams

Teamwork is essential- quality circles

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Taguchi

Robust design to ensure highest quality product or procedure

Quality must be designed into product

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Crosby

All errors eliminated

Do it right the first time

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Six Sigma Quality

System to eliminate defects in processes/products
Reduce variation in processes that lead to product defects
+/- six standard deviations- 3.4 defects per 1 million
99.99996% defect free

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DMAIC Process- Six Sigma Roadmap

Define
Measure
Analyze
Improve
Control

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Continuous Improvement

Kaizan- Japanese- step by step
PDCA- Plan- Do- Check- Act- Deming
Benchmarking- what do top performers do

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Tools used for continuous improvement (7)

Process flowchart
Run chart
Control Charts
Cause and Effect
Check sheet
Histogram
Pareto

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Run chart

Central tendency

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Control charts

Upper and lower control limits

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Cause and Effect Diagrams

Fishbone

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Check Sheet

data recorded in real time

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Pareto

Most frequent- in descending order

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Gantt Chart

Timeline for project management to illustrate how it will run
Very specified, large to-do list
Shows how long (start and end date) and who is responsible

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Trying to manage all aspects of organization in order to excel in all dimensions important to customer

Quality Management

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Two aspects of quality

Features- customer needs

Freedom from trouble (defects)

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Total Quality Management (TQM)

Continuous Improvement
Leadership Development
Partnership Development
Culture

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Relates customer needs and expectations to specific design characteristics through series of grids or matrices

Quality Function Deployment (QFD)

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Processes that require inputs and transform them into outputs for the public to consume

Operations

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Processes through which capital, materials, and people are combined to produce services and goods for the public

Operations

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A condition or circumstance that puts a company in a superior or favorable business position over its competitors

Competitive advantage

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How do operations managers help firms

Implementing strategy by allocating resources

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4 Types of Demand

1. Peak 2. Seasonal 3. Chase 4. Unexpected

Goods available for sale and raw inventory to produce goods for sale

Inventory

Purpose of inventory

Help businesses meet demand and work more efficiently

Types of Inventory (6)

1. Raw Materials 2. Work in process 3. Finished good 4. Replacement Parts inventory 5. Supplies 6. Transportation (pipeline)

Systems that companies use to track inventory

Periodic and Perpetual Systems

Inventory system that continuously monitors inventory levels

Perpetual system

Inventory system that randomly monitors inventory systems

Period system

5 main reasons to use Perpetual Inventory System

1. inventory requires exact balance at all times 2. Big businesses, banks 3. High volume, high value items 4. Best for accurate financial statements 5. Expensive to implement and maintain

5 Reasons to use periodic inventory system

1. Requires a physical count to know exact inventory 2. Supplier only delivers at specific time intervals 3. Low value, low volume items 4. Small businesses 5. Inexpensive to implement and maintain

Two models used to help companies control the cost of ordering, receiving, and holding inventory

EOQ- Economic Order Quantity | EPQ- Economic Production Quantity

Measure of an organization's ability to sustainably provide customers with demanded services/goods in the amount requested, in a timely manner, given current resources

Capacity

Max rate of output in the current system

Throughput

The ability of an overall organization to produce sufficient number of goods and services to meet demands of customers, considering both strongest and weakest production points

System Capacity

Determined by the department with the lowest output or the slowest time

System Capacity

Needed to support customer demand and maintain production capacity as demands for products change

Capacity Planning

Capacity Planning Strategies (4)

Lead Lag Match Adjustment

Adds capacity with anticipation of increase in demand

lead strategy- proactive

Adding capacity only after a company is at full capacity or more due to increase in demand

lag strategy- reactive

Adds capacity in small amounts in response to changing demands

Match strategy

Add or reduce capacity in small or large amounts as consumer demand or major changes to product or system occurs

Adjustment Strategy

Maximum achievable output of a process or system

Design Capacity

Maximum capacity given product mix, equipment changeovers, and scheduled downtime of production schedule

Effective Capacity

Capacity Utilization Formula

Actual Output/Design Capacity

Efficiency Formula

Actual Output/Effective Capacity

Types of facility layouts

Process layout | Product layout

Layout for high demand of same or similar products

Product layout (Sequential layout)

Layout for many different products with the same equipment and low volume of any individual product

Process layout (Functional Layout)

Requires that each production facility has a defined marketing area and each facility produces a complete line or products for that area

Regional facility strategy

When Regional facility strategy is used

When transportation costs are too high | When customer access and convenience are important

One facility is responsible for producing one product or product line and shipping that product throughout the world and country

Product facility strategy

When to use product facility strategy

when production process is complex and hard to control

Total cost formula

Variable costs x # of units + fixed costs | VC(x) + FC

The ability to produce more goods at a lower cost by better utilizing the same fixed costs

Economies of scale

Building the volume necessary to cover fixed costs by producing a variety of products on the same equipment- requires flexibility by the organization

Economies of scope

Determining the most appropriate method for completing a task

Process selection

Types of process selection (4)

Job Shop Batch Assembly Line Continuous Flow

The most limiting constraint on a system

Bottleneck

A constraint in the supply chain that requires the longest time or has the slowest rate

Bottleneck