Ch 7 Flashcards
Common supply requirements
Quality, quantity, delivery, price, and service
Quality output, there are three choices
- Better than out competitors
- Same quality as our competitors
- Lower quality than our competitors
Value- added concept
Each department or function must add value and strive to minimize cost of doing so by process control and continuous improvement in congruence with org goals and strategies
Quality
The ability of the supplier to provide goods and services in conformance with specifications.
-whether the item performs in the actual use to the expectations of the original requisitioned, regardless of conformance with specifications
Function
The actions that an item of service is designed to perform
Eg: “something that fastens”
Suitability
The ability of a material, good, or service to meet the intended functional use
- ignores the commercial considerations, refers to FITNESS FOR USE.
Reliability
Mathematical probability that a product will function for a stipulated period of time.
-complexity = enemy because of the multiplicative effect of probabilities of failure of components
Quality dimensions (8 of them)
- Performance - primary function
- Features - bells and whistles
- Reliability - probability of failure with in a specified time period
- Durability - life expectancy
- Conformance - meeting of specifications
- Serviceability - maintainable and ease of fixing
- Aesthetics - the look, smell, feel and sound
- Perceived quality - image in the eyes of consumer
.. Procurement POV , 9th dimension is “procurability” - short and long term availability on the market at reasonable prices and subject to cont. improvement
“Best Buy”
Certain minimum measure of suitability but considers ultimate customer needs, cost, and procurability, transportation, and disposal as well.
-combination of characteristics
5 major cost categories applicable to quality of goods and services
Prevention, appraisal, internal failure, external failure, morale
Prevention costs
Relate to all activities that eliminate the occurrence of future defects of no conformance to requirements
-include diverse costs as various quality assurance programs, employee training, awareness programs, preventative maintenance , etc
Appraisal costs
Represents the costs of inspection, testing, measuring, and other activities, designed to ensure conformance of the product or service to quality standards and performance requirements
-occur at both the sellers, and buyers org, as each uses a variety of inspection systems to ensure quality conformance
Internal failure costs
Costs incurred within the operating system as a result of poor quality
- returns to suppliers, scrap, rework, reinspection, and retesting, lost labor, order delays
- all costs associated with expediting replacement materials or parts or the carrying of extra safety stock
External failure costs
Incurred when poor quality goods or services are passed on to the customer
-cost of returns, replacement services, warranty costs, MGT time handling customer complaints.
Morale costs
Producing (or having to use) defective products or services
-remove pride in ones work or the incentive to keep searching for cont improvement
“Don’t care” attitude
Lean enterprise
Philosophy focused on maximizing customer value while minimizing waste
- overproduction, waiting, transportation, nonvalue adding processes, inventory, motion and cost of quality
- also called JUST-IN-TIME (JIT) manufacturing
Goal of lean enterprise
To optimize the flow of products and services through value streams that flow internally across technologies, assets, and dept to customers and externally with supply chain partners
Value stream
A series of steps executed in the right way and at the right time to create value for the cistern
- each step is valuable to the customer, capable, available, adequate, and flexible
- require advance modeling tools to consider all costs, provide strategies
Total quality management (TQM)
Philosophy and system of management focused on long-term success through customer satisfaction
- all members participate in improving processes, products, services, and culture
- top mgt develops vision and provide commitment and support
- customer can be internal/external
Demings 14 points
Concept in implementing TQM, set of mgt practices to help companies to increase their quality and productivity
Continuous improvement
(Kaizen)
Relentless pursuit of product and process improvement through a series of small, progressive steps.
-integral part of both (JIT) and (TQM)
-follows Pareto analysis, histogram, scatter, check sheets, fish one, control charts
-plan-do-check-act cycle (Demings wheel) is good for continuous improvement
Plan-do-check-act cycle
Deming Wheel
Plan: collect data and set performance target
Do: implement countermeasures
Check: measure and evaluate the results of countermeasures
Act: standardize and apply improvement to other parts of org
Quality function deployment (QFD)
Important aspect of TQM
- quality system aimed at satisfying customers throughout development and business process -end to end
- method for listening and effectively responding to the voice of the customer to develop higher-quality new products at less cost and in less time
- used both for tangible and no tangible products and services across business sectors
QFD (quality function deployment), comprehensive quality system that
- seek both spoken and unspoken customer needs
- maximizes “positive” quality that creates value
- translate these actions and designs by using transparent analytic and prioritization
- empowers org to exceed normal expectations
- provide a level of unanticipated excitement that generates value
Based on teamwork and customer involvement
Six sigma
Approach to quality focuses on preventing defects by using data to reduce variation and waste
- no more than 3.4 defects per million opportunities
- close to zero defects and correspond to Cpk value of 2.0
- have measurable goals like cost reduction or profit increase through improvements in cycle time, delivery, safety
Statistical process control (SPC)
Sampling processes and using data and statistical analysis to establish performance criteria and monitor process
- technique that noodles testing a random sample of output from a process in order to detect if no random, assignable changes in the process are occurring
Process control
Key aspect of TQM
-method of monitoring a process to prevent defects
Sampling
Small number of items selected from a larger group or population of items
- goal to secure a sample that is representative of the total population being tested
- result: used to accept or reject the entire batch or lot
- random sampling is common
Random sampling
One in which every element in the population has an equal chance of being selected
- method will depend on the characteristic of the product to be inspected
Sequential sampling
Used to reduce the number of items inspected in accept-reject decisions without loss of accuracy
- based on cumulative effect of information that every additional item in the sample adds as it is inspected
- 3 decisions: accept, reject, or sample another item
100% inspection or screening
Most desirable inspection method … NOT TRUE
-seldom accomplishes a completely satisfactory job of separating the acceptable from the nonacceptable or measuring variables properly
Testing
Testing products necessary before a commitment is made to purchase
- original selection of a given item may be based on either a specific test or a preliminary trial
- accept only samples that have some reasonable chance of being uses
- buyers likely to accept samples rather to reject them
Quality assurance and quality control
To establish and maintain effective controls for monitoring processes and quip net and supporting efforts to help supplies and to design, implement, and monitor continuous quality improvement programs
ISO 9000 quality standards
Represents an international consensus on good quality management practices
