Final Flashcards
What are the five dimensions of quality?
Conformance to specifications, fitness for use, value for the price paid, support services, and psychological criteria.
A dimension of quality that measures how well a product or service meets target and tolerances allowed by its designers.
Conformance to Specifications
A dimension of quality that focuses on how well a product performs its intended function or use.
Fitness for Use
A quality dimension that defines in terms of product or service usefulness for the price paid.
Value for the Price Paid
A dimension of quality that focuses on judgmental evaluations of what constitutes product or service excellence.
Psychological Criteria
What are the four costs of quality?
Prevention costs, appraisal costs, internal failure costs, and external failure costs.
The costs associated with achieving high quality.
Quality Control Costs
The costs incurred in the process of preventing poor quality.
Prevention Costs
The costs of testing, evaluating, and inspecting quality to uncover defects.
Appraisal Costs
The costs associated with the consquences of poor quality.
Quality Failure Costs
The costs associated with poor workmanship, including scrap, rework, and material losses.
Internal Failure Costs
The cost associated with product failure at the customer’s site, including returns, repairs, and recalls.
External Failure Costs
Name the seven quality gurus.
Walter Shewhart, W. Edwards Deming, Joseph Juran, Armand Feigenbaum, Philip Crosby, Kaoru Ishikawa, and Genichi Taguchi.
The quality guru that contributed to the understanding of process variability and who developed the concept of statistical control charts.
Walter Shewhart
The quality guru that stressed management’s responsibility for quality and developed the “14 Points” to guide a company’s quality improvement.
W. Edwards Deming
The quality guru that defined quality as a “fitness for use” and developed the concept of cost of quality.
Joseph Juran
The quality guru that introduced the concept of total quality control.
Armand Feigenbaum
The quality guru that coined the phrase “quality is free” and introduced the concept of zero defects.
Philip Crosby
The quality guru that developed cause-and-effect diagrams and identified the concept of the internal customer.
Kaoru Ishikawa
The quality guru that focused on product design quality and developed the Taguchi loss function.
Genichi Taguchi
A philosophy that seeks to improve quality by eliminating causes of product defects and by making quality the responsibilty of everyone in the organization.
Total Quality Management
The meaning of quality as defined by the customer.
Customer-Defined Quality
A philosophy of never-ending improvement.
Continuous Improvement
A Japanese term that describes the notion of a company continually striving to be better through learning and problem solving.
Kaizen
A process/diagram that describes the activities that need to be performed to incorporate continuous improvement into an organization.
Plan-Do-Study-Act Cycle
The PDSA cycle step that involves evaluating current processes and developing a plan.
Plan
The PDSA cycle step that involves implementing the plan.
Do
The PDSA cycle step that involves studying the data collected during implementation.
Study
The PDSA cycle step that involves acting upon the basis of the study results.
Act
The process of studying the practices of companies considered “best-in-class” and comparing your company’s performance against theirs.
Benchmarking
A team of volunteer production employees and their supervisors who meet regularly to solve quality problems.
Quality Circle
What are the seven quality control tools?
Cause-and-Effect Diagrams, Flowcharts, Checklists, Control Charts, Scatter Diagrams, Pareto Analysis, and Histograms.
A chart that identifies potential causes of particular quality problems.
Cause-and-Effect Diagrams
A schematic of the sequence of steps involved in an operation or process.
Flowchart
A list of common defects and the number of observed occurrences of these defects.
Checklists
Charts used to evaluate whether a process is operating within set expectations.
Control Chart
Graphs that show how two variables are related to one another.
Scatter Diagrams
A technique used to identify quality problems based on their degree of importance.
Pareto Analysis
A chart that shows the frequency distribution of observed values of a variable.
Histogram
A set of international quality standards and a certification demonstrating that companies have met all the standards specified. It is the starting point for understanding the system of standards.
ISO 9000
An international standard for the certification of a firm’s quality management system and how the firm conforms to meet customer requirements.
ISO 9001
An international standard that provides guidelines for establishing a quality management system; focuses on improving performance.
ISO 9004
A set of international standards developed to help organizations evaluate and address their social responsibility.
ISO 26000
A set of international standards and a certification focusing on a firm’s environmental responsibility.
ISO 14000
The general category of statistical tools used to evaluate organizational quality.
Statistical Quality Control
What are the three categories of statistical quality control?
Descriptive statistics, statistical process control (SPC), and acceptance sampling.
Statistics used to describe quality characteristics and relationships
Descriptive Statistics
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.
Statistical Process Control (SPC)
The process of randomly inspecting a sample of goods and deciding whether to accept the entire lot based on the results.
Acceptance Sampling
A plan for acceptance sampling that specifies the parameters of the sampling process and the acceptance/rejection criteria.
Sampling Plan
Random causes of variation that cannot be identified and are typically attributed to variations in materials, workers, machines, and tools used in the production process.
Common Causes of Variation
Causes of variation that can be identified and are caused by poor material quality, poor employee workmanship, or machines in need of repair.
Assignable Causes of Variation
The ability of a production process to meet or exceed preset specifications.
Process Capability
Preset ranges of acceptable quality characteristics.
Product Specifications
An index of the inherent process variability of a given characteristic.
Process Capability Index
A high level of quality associated with approximately 3.4 defective parts per million.
Six Sigma Quality
What are the five steps of six sigma?
Define, Measure, Analyze, Improve, and Contol (DMAIC)
The six sigma step where you would define the quality problem of the process
Step One: Define
The six sigma step where you would measure the current performance of the process.
Step Two: Measure
The six sigma step where you would analyze the process to identify the root causes of the quality problem.
Step Three: Analyze
The six sigma step where you would improve the process by eliminating the root causes of the quality problem.
Step Four: Improve
The six sigma step where you would control the process to ensure the improvements continue.
Step Five: Control
The chance of accepting a lot that contains a greater number of defects than the limit.
Consumer’s Risk
The chance that a lot containing an acceptable quality level will be rejected.
Producer’s Risk
The expected proportion of defective items that will be passed to the customer under the sampling plan.
Average Outgoing Quality (AOQ)
The maximum output rate that can be achieved by a facility.
Capacity
The process of establishing the output rate that can be achieved by a facility.
Capacity Planning
The maximum output rate that can be achieved by a facility by ideal conditions.
Design Capacity
The maximum output rate that can be sustained under normal conditions.
Effective Capacity
A measure of how well available capacity is being used in percentage terms.
Capacity Utilization
The volume of output that results in the lowest average unit cost.
Best Operating Level
A condition in which the cost of each additonal unit produced is reduced as the amount of output is increased.
Economies of Scale
A condition in which the cost of each additional unit made increases as output increases.
Diseconomies of Scale
Facilities that are small, specialized, and focused on a narrow set of objectives.
Focused Factories
What are the three steps of capacity planning decisions?
Identify capacity requirements
Develop capacity alternatives
Evaluate capacity alternatives
The additional capacity added to regular capacity requirements to provide greater flexibility.
Capacity Cushion
A process for determining location decisions.
Location Analysis
What are the seven factors to consider when making a location decision?
Proximity to sources of supply Proximity to customers Proximity to sources of labor Community considerations Site considerations Quality-of-life considerations Other considerations, such as room for expansion
What are the three steps to making a location decision?
Identify dominant location factors
Develop location alternatives
Evaluate location alternatives
A procedure that can be used to evaluate multiple alternative locations based on a number of selected factors.
Factor Rating
A procedure for evaluating location alternatives based on distance.
Load-Distance Model
The process of defining all of a product’s characteristics.
Product Design
The process of establishing all of the characteristics of a service, including physical, sensual, and psychological benefits.
Service Design
What is the primary difference between products and services?
Products are tangible, services are intangible.
What are the four steps of the product design process?
- Idea Development
- Product Screening
- Preliminary Design & Testing
- Final Design
The process of disassembling a product to analyze its design features.
Reverse Engineering
A technique used to compute the amount of goods a company would need to sell to cover its costs.
Break-Even Analysis
The costs a company incurs regardless of how much it produces.
Fixed Costs
The costs that vary directly with the amount of units produced.
Variable Costs
A series of guidelines to follow in order to produce a product easily and profitably.
Design for Manufacture
A series of stages that products must pass through in their lifetime, characterized by changing product demands over time.
Product Life Cycle
An approach that brings together multifunction teams in the early phase of product design in order to simultaneously design the product and the process.
Concurrent Engineering
The concept of using components of old products in the production of new ones.
Remanufacturing
What are the two types of manufacturing process selections?
Intermittent and Repetitive
Process selection that is used to produce a variety of products with different processing requirements in lower volumes.
Intermittent Operations
Process selection type that is used to produce one or a few standardized products in high volume.
Repetitive Operations
What are the two process within Intermittent operations?
Project Processes and Batch Processes
A process type that is used to make one-of-a-kind products exactly to customer specifications.
Project Process
A process type that is used to produce small quantites of products in groups or batches based on customer orders or product specifications.
Batch Process
What are the two types of processes within repetitive operations?
Line Processes and Continuous Processes
A process type that produces a large volume of standardized product for mass production.
Line Process
A process type that operates continuously to produce a very high volume of a fully standardized product.
Continuous Process
What are the two types of process design?
Process Flow Analysis and Process Flowcharts
A design process technique used for evaluating a process in terms of the sequence of steps from inputs to outputs with the goal of improving its design.
Process Flow Analysis
A design process chart that shows the sequence of steps in producing a product or service.
Process Flowchart
A design process that produces standard products and services for immediate sale or delivery.
Make-to-Stock Strategy
A process design that produces standard components that can be combined to customer specifications.
Assemble-to-Order Strategy
A design process that produces products to customer specifications after an order has been received.
Make-to-Order Strategy
The measurements of different process characteristics that tell how a process is performing.
Process Performance Metrics
The average amount of time a product takes to move through a system.
Throughput Time
A measure of wasted time in the system.
Process Velocity
F: throughput time / value-added time
Process Velocity Formula
A measure of how well a company uses its resources.
Productivity
F: output / input
Productivity Formula
The proportion of time a resource is actually used.
Utilization
F: the time a resource is used / the time a resource is available
Utilization Formula
Measures performance relative to a standard.
Efficiency
F: actual output / standard output
Efficiency Formula
Technology that enables storage, processing, and communication od information within and between firms.
Information Technology
Using machinery to perform work without human operators.
Automation
A type of automated system that combines the flexibility of intermittent operations with the efficiency of repetitve operations.
Flexible Manufacturing System (FMS)
A machine controlled by a computer that can perform a variety of tasks.
Numerically Controlled Machine
A system that uses computer graphics to design new products.
Computer-Aided Design (CAD)
A term used to describe the integration of product design, process planning, and manufacturing using an integrated computer system.
Computer-Integrated Manufacturing (CIM)
A grouping of physical, sensual, and psychological benefits that are purchased together as part of a service.
Service Package
The process of deciding on the best physical arrangement of all resources that consume space within a facility.
Layout Planning
What are the four types of layouts?
Process, Product, Hybrid, and Fixed-Position
Layouts that group resources based on similar processes or functions.
Process Layouts
Layouts that arrange resources in sequence to allow for an efficient build-up of product.
Product Layouts
Layouts that combine the characteristics of process and product layouts.
Hybrid Layouts
Layouts in which the product cannot be moved due to its size and all resources must come to the production site.
Fixed-Position Layouts
What are the three steps in designing a process layout?
- Gather Information
- Develop a block plan or schematic
- Develop a detailed layout
A schematic showing the placement of resources in a facility.
Block Plan
A table that gives the number of trips or units of product moved between any pair of departments.
From-to-Matrix
A table that reflects opinions of managers with regard to the importance of having any two departments close together.
REL Chart
The process of assigning tasks to workstations in a product layout in order to achieve a desired output and balance the work load among stations.
Line Balancing
What are the six steps of designing a product layout?
- Indentify tasks and their immediate predecessors.
- Determine output rate.
- Determine cycle time.
- Compute theoretical minimum number of workstations.
- Assign tasks to workstations.
- Compute efficiency, idle time, and balance delay.
A task that must be performed immediately before another task.
Immediate Predecessor
A visual representation of the precedence relationships between tasks.
Precedence Diagram
The number of units we wish to produce over a specific period of time.
Output Rate
The maximum amount of time each workstation has to complete its assigned tasks.
Cycle Time
The number of workstations needed on a line to achieve 100 percent efficiency.
Theoretical Minimum Number of Stations
The ratio of total productive time divided by total time, given as a percentage.
Efficiency
The amount of time by which the line efficiency falls short of 100 percent.
Balance Delay
A system in which the product being worked on is physically attached to the line and automatically moved to the next station when the cycle time has elapsed.
Paced Line
A production line designed to produce only one version of a product.
Single-Model Line
A production line designed to produce many versions of a product.
Mixed-Model Line
The degree to which a job is physically and mentally doable.
Technical Feasibility
The degree to which the cost of the job is less than the value it adds.
Economic Feasibility
The degree to which the job is intrinsically satisfying to the employee.
Behavioral Feasibility
The breadth of the job design.
Specialization
A horizontal expansion of the job through increasing the scope of the work assigned.
Job Enlargement
A vertcal expansion of the job through increased worker responsibility.
Job Enrichment
Small groups of employees and supervisors trained in problem-solving techniques.
Problem-Solving Teams
Highly-focused, short-term teams addressing issues important to management and labor.
Special-Purpose Teams
Integrated teams empowered to control their process.
Self-Directed Teams
A anaylsis concerned with the detailed process for doing a particular job.
Methods Analysis
What are the seven steps of methods analysis?
- Identify
- Gather information
- Gather employee input
- Chart the operation
- Evaluate the proposed changes
- Revise as needed
- Put the operation into effect
Determines how long it should take to complete a job.
Work Measurement
The length of time it should take a qualified worked using appropriate tools and processes to complete a specific job, allowing for personal fatique and unavoidable delays.
Standard Time
A technique for developing a standard time based on actual observations of the operator.
Time Study
A subjective estimate of a worker’s pace relative to a normal work pace.
Performance Rating Factor
How often a work element must be done each cycle.
Frequence of Occurrence
The mean observed time multiplied by the performance rating factor by the frequency of occurrence.
Normal Time
The amount of time the analyst allows for personal time, fatigue, and unavoidable delays.
Allowance Factor
Established standards based on previously completed time studies, stored in an organization’s database.
Elemental Time Data
A technique for estimating the proportion of time a worker spends on a particular activity.
Work Sampling
Pay based on the number of hours worked.
Time-Based Compensation Systems
Pay based on the number of units completed.
Output-Based (Incentive) System
Scheduling that calculates the capacity needed at work centers in the time period needed without regard to the capacity available to do the work.
Infinite Loading
Scheduling that loads work centers up to a predetermined amount of capacity.
Finite Loading
A schedule that determines the earliest possible completion date for a job.
Forward Scheduling
Schedule that starts with the due date for an order and works backward to determine the start date for each activity.
Backward Scheduling
The amount of time a job can be delayed and still be finished by its due date.
Slack
A management philosophy in which a system’s output is determined by three kinds of constraints: internal, market, and policy.
Theory of Constraints (TOC)
A type of constraint a regular process bottleneck represents.
Internal Resource Constraint
A constraint that results when market demand is less than production capacity.
Market Constraint
A condition that results when a specifc policy dictates the rate of production.
Policy Constraint
What are the six aspects of JIT Philosophy?
- Elimination of waste
- Broad view of operations
- Simplicity
- Continuous improvement
- Visibility
- Flexibility
Getting the right quantity of goods at the right place at the right time.
Just-In-Time (JIT) Philosophy
A JIT philosophy that ecompasses the entire organization.
The Broad View of JIT
What are the four types of waste under JIT?
Material, energy, time, and space
Organizational problems must be visible to be identified and solved.
Visibility of JIT
What are the three elements of JIT philosophy?
- Just-In-Time Manufacturing
- Total Quality Management
- Respect for People
The element of JIT that focuses on the production system to achieve value-added manufacturing.
JIT Manufacturing
A philosophy that seeks to improve quality by eliminating causes of product defects and by making quality the responsibility of everyone in the organization.
Total Quality Management (TQM)
An element of JIT that considers human resources as an essential part of the JIT philosophy.
Respect for People
The belief that it is best to uncover the source of quality problems and eliminate it.
Quality at the Source
Why is the kanban card significant to JIT’s “pull” system of manufacturing?
It specifies the exact quantity of a product that needs to be produced.
What is primary purpose of a “push” manufacturing process?
The “push” moves the product foward in anticipation for demand.
What is the primary objective of a “pull” manufacturing process?
To eliminate excessive inventory; product is made on demand.
Which function does marketing play in a JIT organization?
JIT marketing focuses on customer-driven quality.
A network of all the activities involved in delivering a finished product or service to a customer.
Supply Chain
What are the three components of the supply chain?
External suppliers, internal functions of the company, and external distributors.
Mamagement of the flow of materials from suppliers to customers in order to reduce overall cost and increase responsiveness to customers.
Supply Chain Management
All suppliers providing materials or services to manufacturing or service organizations, including the suppliers’ suppliers.
External Suppliers
Supply activities performed by the final product company, such as processing, purchasing, production planning and control, quality assurance, and shipping.
Internal Functions
Transport product or service to appropriate locations for eventual sale to customers.
External Distributors
A supplier that supplies materials or services directly to the processing facility.
Tier One Supplier
A supplier that directly supplies materials or services to a tier one supplier in the suplly chain.
Tier Two Supplier
Activities involved in obtaining, producing, and distributing materials and products in the proper place and in proper quantities.
Logistics
A measure of how much of tye supply chain is actually owned or operated by the manufacturing company.
Vertical Integration
Owning or controlling sources of raw materials and components.
Backward Integration
Owning or controlling the channels of distribution.
Forward Integration
Purchased items or extracted materials transformed into components or products.
Raw Materials
Parts or subassemblies used in the final product.
Components
Items in process of production throughout the plant.
Work-in-Process
Products sold to customers.
Finished Goods
Finished goods in the distibution system.
Distribution Inventory
The ability to satisfy customer requirements.
Customer Service
An inventory system that updates inventory balances after each inventory transaction.
Continuous Review System
An inventory system that requires periodic reviews of the on-hand quantity to determine the size of the replenishment order.
Periodic Review System
An inventory system with one bin that has enough stock to satisfy demand during replenishment time on the floor, with another bin placed in the storage room.
Two-Bin System
A physical counting of inventory that is taken periodically, usually annually.
Periodic Counting
Prespecified items that are counted on a regular basis, usually daily.
Cycle Counting
An inventory system in which a vendor maintains an inventory at the customer’s facility.
Vendor-Managed Inventory (VMI)
An inventory optimizing method used for determining order quantity and reorder points where the demand for the product is known and constant.
Economic Order Quantity (EOQ)
An inventory model designed for use with highly perishable products.
Single-Period Model
A statement of long-range strategy and revenue, cost, and profit objectives.
Strategic Business Plan
The process that brings together all the functional business plans (marketing, operations, engineering, and finance) into one integrated plan.
Sales and Operations Planning
Identifies the markets to be served, desired levels of customer service, product competitive advantage, profit margins, and the market share needed to achieve the objectives of the strategic business plan.
Marketing Plan
Includes the budgeted levels of finished products, inventory, backlogs, workforce size, and the aggregate production rate needed to support the marketing plan.
Aggregate Plan
Identifies the sources and uses of funds; projects cash flows, profits, return on investment, and provides budgets in support of the strategic business plan.
Financial Plan
Identifies new products or modifications to existing products that are needed to support the marketing plan.
Engineering Plan
The anticipated production schedule for the company expressed in specific configurations, quantities, and dates.
Master Production Schedule
A group of options that repsond to demand fluctuations through the use of inventory or back orders, or by shifting the demand pattern.
Demand-Based Options
A group of options that allow a firm to change its current operating capacity.
Capacity-Based Options
A marketing strategy that attempts to shift demand from peak periods to non-peak periods to smooth out the demand pattern.
Shifting Demand
The percentage of normal capacity the company is currently using.
Point of Departure
The relative size of the (capacity) change needed.
Magnitude of the Change
The expected length of time the different capacity level is needed.
Duration of the Change.
A planning approach that produces the same quantity each time period. Inventory and back orders are used to absorb demand fluctuations.
Level Aggregate Demand
A planning approach that varies production to meet demand each period.
Chase Aggregate Plan
A planning approach that uses a combination of level and chase approaches while developing the aggregate plan.
Hybrid Aggregate Plan
Large, sophisticated software systems used for identifying and planning the enterprise-wide resources needed to coordinate all activites involved in producing and delivering products.
Enterprise Resource Planning (ERP)
What are two common challenges of implementing an ERP planning solution?
- It takes a long time to implement and see any benefits.
2. It requires extensive and complex training
A planning system that uses the master production schedule (MPS), inventory record data, and bill of materials (BOM) to calculate material requirements.
Materials Requirement Planning (MRP)
A planning system that determines the labor and machine resources needed to fill the open and planned orders generated by the MRP.
Capacity Requirements Planning (CRP)
Lists all the subassemblies, component parts, and raw materials that go into an end item and shows the usage quantity of each required.
Bill of Material (BOM)
The demand for an item that is unrelated to the demand for other items.
Independent Demand
The demand for component parts that is based on the number of end items being produced.
Dependent Demand
An endeavor with a specific objective, multiple activities, and defined precendence relationships, to be completed in a specific time period.
Project
The longest sequential path through the network diagram (for job planning).
Critical Path
A network planning technique used to determine a project’s planned completion date and identify the project’s critical path.
Program Evaluation and Review Technique (PERT)
A network planning technique, with deterministic times, used to determine a project’s planned completion date and identify the project’s critical path.
Critical Path Method (CPM)
Reducing the completion time of a job or project.
Crashing
What are the five PROJECT life-cycle phases?
Concept, Feasibility Analysis, Planning, Execution, and Termination.
The project life-cycle phase in which the need for the project is identified.
Concept
The project life-cycle phase where the costs, benefits, and risks are evaluated.
Feasibility Study/Analysis
The project life-cycle phase where it is decided who does what, how long the project should take, and what will be needed in order to complete it.
Planning
The project life-cycle phase in which the project is carried out.
Execution
The project life-cycle phase in which the project is terminated.
Termination
