Chapters 3, 5, 6, 9 ,10 Flashcards
Manufacturability
The ease with which a product can be made.
Product Design
The process of defining all of the product’s characteristics.
Service Design
The process of establishing all the characteristics of the service, including physical, sensual, and psychological benefits.
Benchmarking
The process of studying the practices of companies considered “best-in-class” and comparing your company’s performance against theirs.
Reverse Engineering
The process of disassembling a product to analyze its design features.
Early Supplier Involvement (ESI)
Involving suppliers in the early stages of product design.
Break-Even Analysis
A technique used to compute the amount of goods a company would need to sell to cover its costs.
Fixed Costs
Costs a company incurs regardless of how much it produces.
Variable Costs
Costs that vary directly with the amount of units produced.
Design for Manufacture (DFM)
A series of guidelines to follow in order to produce a product easily and profitably.
Product Life Cycle
A series of stages that products pass through in their lifetime, characterized by changing product demands over time.
Concurrent Engineering
An approach that brings together multifunction teams in the early phase of product design in order to simultaneously design the product and the process.
Remanufacturing
The concept of using components of old products in the production of new ones.
Intermittent Operations
Processes used to produce a variety of products with different processing requirements in lower volumes.
Repetitive Operations
Processes used to produce one or a few standardized products in high volume.
Project Process
A type of process used to make a one-at-a-time product exactly to customer specifications.
Batch Process
A type of process used to produce a small quantity of products in groups or batches based on customer orders or specifications.
Line Process
A type of process used to produce a large volume of standardized product
Continuous Process
A type of process that operates continually to produce a high volume of a fully standardized product.
Process flow analysis
A technique used for evaluating a process in terms of the sequence of steps from inputs to outputs with the goal of improving its design.
Bottleneck
Longest task in the process
Make-to-stock strategy
Produces standard products and services for immediate sale or delivery
Assemble-to-order strategy
Produces standard components that can be combined to customer specifications.
Make-to-order strategy
Produces products to customer specifications after an order has been received.
Process Performance metrics
Measurements of different process characteristics that tell how a process is performing
Throughput time
Average amount of time it takes a product to move through the system.
Process Velocity
Ratio of throughput time to value-added time. A measure of wasted time in the system
Productivity
Ratio of outputs over inputs. A measure of how well a company uses its resources
Utilization
Ratio of time a resource is used to time it is available for use. The proportion of time a resource is actually used.
Efficiency
Ratio of actual output to standard output. Measures performance relative to a standard
Automation
Using machinery to perform work without human operators
Service Package
A grouping of physical, sensual, and psychological benefits that are purchased together as part of a service.
Conformance to specifications
How well a product or service meets the targets and tolerances determined by its designers
Fitness for use
A definition of quality that evaluates how well the product performs for its intended use.
Value for price paid
Quality defined in terms of product or service usefulness for the price paid.
Support services
Quality defined in terms of the support provided after the product or service is purchased.
Psychological criteria
A subjective definition that focuses on the judgmental evaluation of what constitutes product or service quality. A way of defining quality that focuses on judgmental evaluations of what constitutes product or service excellence.
Prevention costs
Costs incurred in the process of preventing poor quality from occurring.
Appraisal costs
Costs incurred in the process of uncovering defects.
Internal failure costs
Costs associated with discovering poor product quality before the product reaches the customer.
External failure costs
Costs associated with quality problems that occur at the customer site.
Total quality management (TQM)
Philosophy that seeks to improve quality by eliminating causes of product defects and by making quality the responsibility of everyone in the organization.
Robust design
A design that results in a product that can perform over a wide range of conditions.
Taguchi loss function
Costs of quality increase as a quadratic function as conformance values move away from the target.
Continuous improvement
A philosophy of never-ending improvement.
Kaizen
A Japanese term that describes the notion of a company continually striving to be better through learning and problem solving.
Plan–do–study–act (PDSA) cycle
A diagram that describes the activities that need to be performed to incorporate continuous improvement into the operation.
Quality circle
A team of volunteer production employees and their supervisors who meet regularly to solve quality problems.
Cause-and-effect diagram (Fishbone)
A Chart that identifies potential causes of particular quality problems.
Flowchart
A schematic of the sequence of steps involved in an operation or process.
Checklist
A list of common defects and the number of observed occurrences of these defects.
Control charts
Charts used to evaluate whether a process is operating within set expectations.
Scatter diagrams
Graphs that show how two variables are related to each other.
Pareto analysis
A technique used to identify quality problems based on their degree of importance.
Histogram
A chart that shows the frequency distribution of observed values of a variable.
Quality function deployment (QFD)
A tool used to translate the preferences of the customer into specific technical requirements.
Reliability
The probability that a product, service, or part will perform as intended.
Quality at the source
The belief that it is best to uncover the source of quality problems and eliminate it.
Malcolm Baldrige National Quality Award
An award given annually to companies that demonstrate quality excellence and establish best practice standards in industry.
Deming Prize
A Japanese award given to companies to recognize efforts in quality improvement.
ISO 9000
A set of international quality standards and a certification demonstrating that companies have met all the standards specified.
ISO 26000
A set of international standards developed to help organizations evaluate and address their social responsibility.
ISO 14000
A set of international standards and a certification focusing on a company’s environmental responsibility.
Customer-defined quality
The meaning of quality as defined by the customer
Statistical quality control (SQC)
The general category of statistical tools used to evaluate organizational quality.
Descriptive statistics
Statistics used to describe quality characteristics and relationships.
Statistical process control (SPC)
A statistical tool that involves inspecting a random sample of the output from a process and deciding whether the process is producing products with characteristics that fall within a predetermined range.
Acceptance sampling
The process of randomly inspecting a sample of goods and deciding whether to accept the entire lot based on the results.
Common causes of variation
Random causes that cannot be identified.
Assignable causes of variation
Causes that can be identified and eliminated.
Mean (average)
A statistic that measures the central tendency of a set of data.
Range
The difference between the largest and smallest observations in a set of data.
Standard deviation
A statistic that measures the amount of data dispersion around the mean.
Out-of-control
the situation in which a plot of data falls outside preset control limits.
Variable
A product characteristic that can be measured and has a continuum of values (e.g., height, weight, or volume).
Attribute
A product characteristic that has a discrete value and can be counted.
Process capability
The ability of a production process to meet or exceed preset specifications.
Product specifications
Preset ranges of acceptable quality characteristics.
Process capability index
An index used to measure process capability.
Six Sigma quality
A high level of quality associated with approximately 3.4 defective parts per million.
Capacity
The maximum output rate that can be achieved by a facility.
Capacity planning
The process of establishing the output rate that can be achieved by a facility
Design capacity
The maximum output rate that can be achieved by a facility under ideal conditions
Effective capacity
The maximum output rate that can be sustained under normal conditions.
Capacity utilization
Percentage measure of how well available capacity is being used.
Best operating level
The volume of output that results in the lowest average unit cost.
Economies of scale
A condition in which the average cost of a unit produced is reduced as the amount of output is increased.
Capacity cushion
Additional capacity added to regular capacity requirements to provide greater flexibility.
Decision tree
Modeling tool used to evaluate independent decisions that must be made in sequence.
Location analysis
Techniques for determining location decisions.
Proximity to Sources of Supply
Many firms need to locate close to sources of supply. The reasons for this can vary. In some cases, the firm has no choice, such as in farming, forestry, or mining operations, where proximity to natural resources is necessary.
Proximity to Customers
Locating near the market they serve is often critical for many organizations, particularly service firms. To capture their share of the business, service firms need to be accessible to their customers. For this reason, service firms typically locate in high-population areas that offer convenient access.
Proximity to Source of Labor
Proximity to an ample supply of qualified labor is important in many businesses, especially those that are labor intensive. The company needs to consider the availability of a particular type of labor and whether special skills are required.
Community Considerations
The success of a company at a particular location can be affected by the extent to which it is accepted by the local community. Many communities welcome new businesses, viewing them as providing sources of tax revenues and opportunities for jobs, and as contributing to the overall well-being of the community. However, communities do not want businesses that bring pollution, noise, and traffic and that lower the quality of life.
Site Considerations
Site considerations for a particular location include factors such as utility costs, taxes, zoning restrictions, soil conditions, and even climate.
Quality-of-Life Issues
Another important factor in location decisions is the quality of life a particular location offers the company’s employees. This factor can also become important in the future when the business is recruiting high-caliber employees. Quality of life includes factors such as climate, a desirable lifestyle, good schools, and a low crime rate.
Globalization
The process of locating facilities around the world
Factor rating
A procedure that can be used to evaluate multiple alternative locations based on a number of selected factors
Load–distance model
A procedure for evaluating location alternatives based on distance.
Rectilinear distance
The shortest distance between two points measured by using only north–south and east–west movements
Center of Gravity Approach
When we used the load–distance model, we compared only two location alternatives. The load–distance was lower for Springfield than for Mansfield. However, we can also use the model to find other locations that may give an even lower load–distance score than Springfield. An easy way to do this is to start by testing the location at the center of gravity of the target area.
Break-even analysis
A technique used to compute the amount of goods that must be sold just to cover costs.
Transportation Method
The transportation method of linear programming is a useful technique for solving specific location problems
Layout planning
Deciding on the best physical arrangement of all resources that consume space within a facility.
Intermittent processing systems
Systems used to produce low volumes of many different products.
Repetitive processing systems
Systems used to produce high volumes of a few standardized products.
Process layouts
Layouts that group resources based on similar processes or functions.
Product layouts
Layouts that arrange resources in sequence to allow for an efficient buildup of the product.
Hybrid layouts
layouts that combine characteristics of process and product layouts.
Group technology (GT) or cell layouts
Hybrid layouts that create groups of products based on similar processing requirements.
Fixed-position layout
A layout in which the product cannot be moved due to its size and all the resources have to come to the production site.
Block plan
Schematic showing the placement of resources in a facility
Load–distance model
A procedure for evaluating location alternatives based on distance.
ALDEP and CRAFT
Computer software packages for designing process layouts.
Flexible layouts
Layouts that remain desirable many years into the future or can be easily modified to meet changing demand.
Line balancing
The process of assigning tasks to workstations in a product layout in order to achieve a desired output and balance the workload among stations.
Immediate predecessor
A task that must be performed immediately before another task.
Output rate
The number of units we wish to produce over a specific period of time.
Cycle time
The maximum amount of time each workstation has to complete its assigned tasks.
Single-model line
A line designed to produce only one version of a product.
Mixed-model line
A line designed to produce many versions of a product
