Chapter 8 Flashcards
Quality is measured by what?
Customer Satisfaction
How do companies maintain customer satisfaction?
- Understand customer needs
- Set up activities
- Perform activities (consistently)
- Measure customer satisfaction and cost
- Improve
What is the output of SCM in Customer Service?
- Low cost/efficiency
- Quality
- Responsiveness to needs
What is Process Management?
The application of knowledge, skills, tools, techniques, and systems to define, visualize, measure, control, report, and improve processes with the goal to meet customer requirements efficiently.
What does Process Management enable a firm to do?
Achieve desired levels of customer service (low cost, quality, responsiveness).
What are the key philosophies & practices of Process Management?
- Lean Production (Lean Manufacturing) (waste)
- Six Sigma (reduce variation)
- Lean Six Sigma (combination)
Where did Lean Production originate?
Japan
What is Lean Production?
The operating philosophy of waste reduction & value enhancement of the Toyota Production System (TPS)
What factors is Lean Production based on?
- Waste reduction
- Continuous improvement
- Lean supply chain relationships & Channel integration
- Lean layouts (Visual)
- Inventory and setup time reductions (Synchronization)
- Small batch scheduling
- Workforce empowerment
What are the key concepts incorporated in TPS?
Muda
Kanban
Poka-Yoke
Yokoten
What is Muda?
Waste in all aspects of production
What is Kanban?
Signal card & part of JIT
What is Poka-Yoke?
Error or mistake-proofing
What is Yokoten?
Sharing of best practices
What are the seven wastes of lean manufacturing?
- Overproducing
- Waiting
- Transportation
- Overprocessing
- Excess Inventory
- Excess Movement
- Scrap and Rework
What are International Paper’s 8 Forms of Waste that don’t add value to the customer?
- Defects
- Overproduction
- Waiting
- Non-Utilization of Talent
- Transportation
- Inventory
- Motion
- Extra-Processing
What are the 5-S’s?
- Sort: First we get rid of all that we do not need!
- Set: We find a place for everything and its placed there
- Shine: Clean and polish. Make sure we detect deviations
- Standardize: Checklist and procedures
- Sustain: Training, measure, communicate, enforce
What are Lean Layouts?
Very visual (lines of visibility are unobstructed) with operators at one processing center able to monitor work at another.
How is Lean Layout usually shaped?
U-shaped
What are the characteristics of Lean layout?
- Grouped by similar activities, reduces machinery, increases skills
- Reduce movements
- Feed to the line, eliminates stock areas
- More flexible, easy to adapt to changes
What is the key principle of lean manufacturing?
Waste reduction and continuous improvement.
Inventory hides_____!
Waste
Small production batches are accomplished with the use of ____.
Kanbans
What are Kanbans?
Generate demand for parts at all stages of production creating a “pull” system
What is the Pull System?
A production system that uses customer demand as the primary driver for production planning
What is the Push System
A production system that focuses on maximizing the use of production capacity, and therefore is based on estimated customer demand (most often provided by a forecast).
What is the PDCA cycle used for?
Continuous Improvement
What are the steps of the PDCA cycle?
- Plan a change aimed at improvement.
- Execute the change.
- Study the results; did it work?
- Institutionalize the change or abandon. REPEAT
Why use Lean Green practices?
- Reduces waste
- Reduces the cost of environmental management
- Leads to improved environmental performance
- Increase the possibility that firms will adopt more advanced environmental management systems
What are the two ways in which companies demonstrate that they have good processes?
- International Organization for Standardization - ISO 9000
2. Baldrige Awards
What is ISO 9000?
Concerned with “quality management”. This means what the organization does to enhance customer satisfaction by meeting customer and applicable regulatory requirements and continue to improve its performance in this regard.
What is ISO 14000
Primarily concerned with “environmental management”. This means what the organization does to minimize harmful effects on the environment caused by its activities and continue to improve its environmental performance.
What is Six Sigma all about?
Quality!
Meeting, or exceeding, customer requirements now and in the future.
Minimum Variance
What is Six Sigma?
An enterprise and supply chain-wide philosophy, that emphasizes a commitment toward excellence and encompasses suppliers, employees, and customers
What is Total quality management (TQM)?
Managing the entire organization so that it excels on all dimensions of products and services that are important to the customer.
What are the six major sources of variation?
- People
- Machines
- Materials
- Methods
- Measurement
- Environment
What is design quality?
The inherent value of the product in the marketplace.
What factors play a role in design quality?
Performance, Features, Reliability, Durability, Serviceability, Response, Aesthetics, and Reputation.
What is conformance quality?
The degree to which the product or service design specifications are met
What are the four costs of quality?
Appraisal Costs
Prevention Costs
Internal Failure Costs
External Failure Costs
What factors affect Appraisal Costs?
- Inspections (incoming, in-process & final)
* Audits
What factors affect Prevention Costs?
- Quality Planning
- Supplier capability
- Quality improvement
What factors affect Internal Failure Costs?
- Scrap & rework
- Re-inspection & re-testing
- Defects BEFORE delivery
What factors affect External Failure Costs?
- Warranty costs
- Returns
- Customer complaints
- Recalls & lawsuits
What is DMAIC?
Define, Measure, Analyze, Improve, and Control
What are the six Six Sigma Roles?
- White Belt
- Yellow Belt
- Green Belt
- Black Belt
- Master Black Belt
- Champion
What are the characteristics of a White Belt?
Reports process issues to Green and Black Belts
What are the characteristics of a Yellow Belt?
Participates in project teams and receives just-in-time training.
What are the characteristics of a Green Belt?
Provides just-in-time training to others.
What are the characteristics of a Black Belt?
Functions as a coach, mentor, teacher, and project leader for project teams
What are the characteristics of a Master Balck Belt?
Works with leaders to identify gaps and select projects.
What are the characteristics of a Champion?
The executive leader who drives the initiative.
What are Flow Diagrams?
Annotated boxes representing processes to show the flow of products or customers.
What are check sheets used for?
To determine frequencies for specific problems.
What are Pareto Charts used for?
For presenting data in an organized fashion, indicating process problems from most to least severe.
What are Cause and Effect Diagrams?
Used to aid in brainstorming & isolating the causes of a problem.
Statistical Process Control allows firms to?
- Visually monitor process performance
- Compare the performance to desired levels or standards
- Take corrective action
All processes have ______.
Variation
What are two causes of variation?
- Assignable causes
2. Natural/Common Causes
What are Assignable Causes?
Factors that can be clearly identified and possibly managed. These can be eliminated.
What are Natural/Common Causes?
Inherent to the production process. In order to reduce variation due to common causes, the process must be changed.
What are Control Charts?
A managerial tool used to analyze whether a process is “in control” or “out of control”.
What are the steps to complete a Variable Data Control Chart?
- Gather data when the process is in control.
- Calculate the mean & the range for each sample.
- Calculate the overall mean and average range of all the samples. Use the x-means to calculate the upper & lower control limits.
- Use the means and control limits to construct x-bar and R control charts.
- Collect samples over time and plot.
What are the three forms of ISO certification and how do you get each one?
First-party: A firm audits itself against ISO 9000 standards.
Second-party: A customer audits its supplier.
Third-party: A “qualified” national or international standards or certifying agency serves as an auditor.
What is the Baldridge Award?
It promotes better quality management practices and improved quality results by American industry
