Chapter 11 Flashcards
whats a just in time system
a system whose objective is to produce or to procure products or components as they are required by a customer or for use, rather than for inventory
6 essential elements of JIT systems
close relationship with suppliers
small batch sizes
cellular manufacturing - employees grouped into small cells of multi skilled workers, grouped by product
employee empowerment - empowering them to stop production when needed
non value added functions - holding inventory/ supervision
simplification of products and processes
potential problems with JIT
not always easy to predict patterns of demand
absence of inventories make you vulnerable to any disruption in the supply chain
definition of target cost
an estimate of a product cost which is derived by subtracting a desired profit margin from a competitive market price
how can quality be achieved - traditional views
establishing standards
establishing procedures for quality assurance
monitoring actual quality
taking control action if standards not achieved
how can quality be achieved - modern views
no optimal level of quality - should be zero defects
failure costs are severely underestimated
what is total quality management
process of applying a zero defects philosophy to the management of all resources and relationships within an organisation as a means of developing and sustaining a culture of continuous improvement which focuses on meeting customers needs and expectations
two costs of conformance
prevention and appraisal costs
two costs of non-conformance
internal and external failure
goal of six sigma
reduce the failure rate to less than 3.4 in a million
key themes of six sigma
focus on performances and processes important to the customer
decisions based on data and facts
processes are key to success
5 key steps six sigma recommends (DMAIC)
Define scope of project
Measure current performance
Analyse the existing process
Improve the process
Control the new process
4 benefits of six sigma
processes become more rigorous as they use hard timely data
reduced variation in service processes
improved financial performance through cost savings from projects, improved revenue from improved products
increased customer loyalty
