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Operations And Supply Chain Management > Final Exam! > Flashcards

Final Exam! Flashcards

1
Q

Total quality management definition

A

Managing the entire organization so that it excels on all dimensions of products that are important to the customer

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2
Q

TQM operational goals (2)

A

Careful design of the product

Systems that can consistently produce the design

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3
Q

Who administers the Malcolm baldrige award?

A

National institute or standards and technology (NIST)

And agency of the U.S. department of commerce

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4
Q

A total of how many awards can be given and in what categories?

A 
18
Manufacturing
Service
Small business
Education and healthcare 
Not for profit
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5
Q

What does it take to apply for Baldrige award?

A 
50 page that details the 
Approach
Deployment 
Results 
Of their quality under seven categories
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6
Q

Seven categories of the baldrige award?

A 
Leadership
Strategic planning
Customer focus
Information
HR Focus
Process management
Business results
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7
Q

Baldrige scoring

A

Total of 1000 points

Applicants that get 650 or more points get a site visit

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8
Q

Who are the quality gurus?

A

Crosby
Deming
Juran

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9
Q

What do the quality gurus all believe must happen to age I’ve outstanding quality?

A

Leadership from management

Customer focus

Total involvement of workforce

Continuous improvement

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10
Q

What’re the dimensions of quality?

A 
Performance
Features 
Reliability
Serviceability
Aesthetics
Perceived quality
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11
Q

Define quality at the source

A

Making the person who does the work responsible for ensuring that specifications are met

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12
Q

What’re the costs of quality?

A

Appraisal costs
Prevention costs
Internal failure costs
External failure costs

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13
Q

Six sigma define

A

Set of methods used to eliminate defects
Seeks to reduce variation
Means no more than 3.4 defects per million

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14
Q

Six sigma methodology (DMAIC)

A 
Define
Measure
Analyze
Improve
Control

Developed by Motorola and GE to reduce variation and focus on the customer wants

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15
Q

What does define stand for (DMAIC)

A

Identify customers and their priorities

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16
Q

What does analyze stand for (DMAIC)

A

Determine the most likely causes of defects

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17
Q

What is a flow chart?

A

A diagram of the sequence of operations

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18
Q

What is a check sheet?

A

Basic form to standardize data collection

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19
Q

What is a run chart?

A

Depicts trends in data over time

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20
Q

Pareto chart

A

Helps break down a problem into components

Based on the rule that a large percent of problems are caused by a small percent of things

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21
Q

Cause and effect diagram

A

AKA fishbone diagram

Shows the main causes and sub causes leading to an effect using hypothetical situations

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22
Q

Opportunity flow diagram

A

A diagram used to separate value added and non value added steps

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23
Q

Process control chart

A

Used to assure that processes are in statistical control

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24
Q

How to properly implement six sigma

A

Executive leaders must champion the process improvement

Corporate wide training in six sigma

Setting objectives for improvement

Continuous reinforcement and rewards

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25
Q

What is the Shingo system: fail safe design

A

A method to prevent defects, defects arise when people make errors
Defects can be prevented by providing workers with feedback on errors
- successive checks
- self check
- source inspection

All feedback require poka yokes
(Simple practices that prevent errors)

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26
Q

ISO 9000 is concerned with what?

A

International reference for quality

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27
Q

ISO 14000 is concerned with what?..

A

Environmental management

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28
Q

Three forms of ISO certification

A

First party (firm audits itself)

Second party (customer audits it’s supplier)

Third party (a qualified national agency audits a company )

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29
Q

Statistical quality control (SQC)

A

Different techniques designed to evaluate quality from a conformance view

Uses sampling

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30
Q

Define assignable variation

A

Deviation in the output of a process that can be clearly identified and managed

Ex: improper machine adjustments

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31
Q

Common variation define

A

Deviation in the output of a process that is random and inherent in the process itself

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32
Q

Taguchis view of cost of variability

A

Being within a specification is a continuous function the farther it is from the goal, the more cost it is to society

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33
Q

Process VS specification limits

A

Process- the limits we determine

Specification- the limits that the customer wants

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34
Q

Statistical process control define (SPC)

A

Technique for testing a random sample of output from a process to determine if it is producing within a prescribed range

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35
Q

Attributes define

A

Quality characteristics that are classified as either conforming or not conforming specification

Ex: a lawn mower either runs or it doesn’t

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36
Q

What is a p chart and what is it used for?

A

Evaluated the stability of a process in terms of the percentage of the total number of units in a sample in which an event occurs over time

Used for either a yes or no decision

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37
Q

C chart define

A

When it is desired to monitor the number of defects per unit
Refers to poisson where defects occur randomly at each unit

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38
Q

Process control with variable measurements requirements for r and X charts

A

Size of sample (4 unite)
Number of samples( 25 or so)
Frequency of samples (trade off between cost of sampling and benefit of adjusting the system)
Control limits (use Z= 3)

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39
Q

Lean production define

A

Integrated activities designed to achieve high volume production using Minsk inventories

Involves elimination of waste

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40
Q

Lean logic

A

Nothing is produced until needed

A sale pulls a replacement

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41
Q

What two categories go into Toyota production system (TPS)

A

Elimination of waste

Respect for people

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42
Q

What goes into elimination of waste?

A 
Overproduction
Time
Transportation
Inventory waste
Processing 
Motion
Product defects
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43
Q

What goes into respect for people

A

Lifetime employment
Level payroll
Bonuses
Consider workers a part of the family

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44
Q

Lean focused supply chain components

A 
Suppliers
Procurement
Warehousing
Logistics
Customers
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45
Q

Chacteristics of lean suppliers

A

Able to respond to changes
Lowe prices
Higher quality

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46
Q

What goes into lean procurement

A

Key is automation

Supplies must see into the customers operations

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47
Q

What goes into lean warehousing

A

Eliminate non value added

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48
Q

What goes into lean logistics

A

Looking orders
Multi ship truck loads
Optimized routing
Cross docking

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49
Q

Lean customers

A

Understand their business needs and value speed and flexsbility

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50
Q

Principles of lean supply chain design (3)

A

Lean layouts
Lean production schedules
Lean supply chain

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51
Q

What goes into lean layouts?(3)

A

Group technology
Quality at source
JIT

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52
Q

What is group technology

A

Philosophy in which similar parts are grouped into families and arranged in a specialized work cell

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53
Q

What’s is quality at the source

A

Do it right the first time and when something goes wrong, stop the process

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54
Q

Level schedule

A

A schedule that pulls material into final assembly st a constant rate

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55
Q

Backflush define

A

Using calculations to determine how much of each part were used in production and using these calculations to adjust inventory

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56
Q

Uniform plant loading define

A

Smoothing the production flow to dampen schedule variation

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57
Q

Kanban pull system

A

A control system that uses a signaling device to regulate flows

58
Q

How god accomplish a stable schedule (3)

A

Level scheduling
Freeze windows
Underutilization of capacity

59
Q

Value stream mapping as a two part process

A

It depicts the current state of the process

It shows a map of the same process with suggested improvements

60
Q

Kaizen bursts define

A

Identify specific short term projects that teams work on to implement changes to the process

61
Q

What are the uncertainty in SERVICES

A

Uncertainty in task times
In demand
Customers production roles

62
Q

Define logistics

A

Obtaining, producing, and distributing material in the proper place and quantities

63
Q

Third party logistics define

A

An outside company is used to manage all parts of another company’s logistic functions

Ex: UPS

64
Q

Logistic strategy

A

A plan for the logistics elements of a business including warehousing, info systems, and transportation

65
Q

Logistics management covers a wide range of business activities including..

A 
Transportation
Warehousing
Handling
Packaging
Inventory management
Information systems
66
Q

In 1980 what marked the beginning of deregulation in logistics?

A

MCA- 80

Staggers rail act

67
Q

Different transportation modes

A 
Truck 
Ship
Plane
Train 
Pipeline
Hand delivery
68
Q

Cross docking define

A

Large shipments are broken down into small shipments for local delivery in an area

Minimized inventory

69
Q

Hub and spoke system define

A

Combine consolidation and cross docking

Sole purpose is sorting goods to consolidation areas

70
Q

Consolidation warehousing

A

Pulls together shipments from a number of sources and combines them into larger and more economical loads

71
Q

Break bulk define

A

A separation of a single consolidated bulk load into smaller individual shipments

72
Q

Facility location issues

A 
Proximity to customers
Business climate
Total costs
Infrastructure
Quality of labor
Suppliers
Free trade zones
Political risk
Government barriers
Trading blocs
Enviromental regulation
Host community
Competitive advantage
73
Q

Trading blocs define

A

Grins within a block take advantage of new markets or lower total costs

74
Q

Factor rating system define

A

List of factors is developed, range of possible points is assigned to each factor

75
Q

Strategic forecasts define

A

Medium to long term forecasts that are used for decisions related to strategy and aggregate demand

76
Q

Tactical forecasts

A

Short term forecasts used for making day to day decisions

77
Q

Decoupling point

A

Point war which inventory is stored which allows SC to operate independently

78
Q

The four basic types of forecasts are?…

A

Qualitative
Time series analysis
Casual relationships
Simulation

79
Q

Time series analysis define

A

Past demand can be used to predict future data

80
Q

Components of demand

A 
Average demand 
Trend
Seasonal element
Cyclical elements (political elections)
Random variation
Autocorrelation
81
Q

What’re the common trend types?

A

Linear

S curve

Asymptotic

82
Q

Choosing an appropriate forecasting model depends upon

A 
Time horizon 
Data availability
Accuracy required
Size of forecasting budget
Availability of qualified personnel
83
Q

Sales and operations planning

A

Process that companies use to keep demand and supply in balance and to coordinate distribution, financial, and marketing plans

Focuses on cross functional work

84
Q

Aggregate operations plan

A

A plan for labor and production at the intermediate term with an objective to minimize costs of resources needed to meet demand

85
Q

Aggregation on the supply side is done by who?

Aggregation on the demand side is done by who?

A

Supply side: product families

Demand side: groups of customers

86
Q

What is the main purpose of the aggregate operations plan?

A

To specify the optimal combination of…
Production rate
Workforce level
Inventory on hand

87
Q

With services, cycles are more often measure in hours than in months

A

True

88
Q

Complementary products may work for firms facing cyclical demand fluctuations

A

Ex: lawn mowers for summer and snow blowers for winter

89
Q

Production planning strategies define

A

The plans for meeting demand that involve trade offs in the number of workers employed, work hours, inventory and shortages

90
Q

What are the actual production planning strategies? (4)

A

Chase strategy
Stable workforce
Level strategy
Sub contracting

91
Q

Define chase strategy

A

Matches the production rate by hiring and laying off employees

92
Q

What is stable workforce strategy?

A

Vary the number of hours work through flexible work schedules or overtime

93
Q

Define level strategy.

A

Demand changes are absorbed by fluctuating inventory levels, order backlogs, and lost sales

94
Q

Relevant costs to the aggregate production plan

A

Basic production costs
Costs with changes in production rates
Inventory holding costs
Backorder costs

95
Q

Aggregate planning techniques (3)

A

Cut and try approach
Linear programming
Simulation

96
Q

Alternative plan 1 to cut and try approach.

A

Product to exact production requirements by varying workforce size

97
Q

Cut and try alternative plan 2

A

Product to meet demand by maintaining a constant workforce

98
Q

Cut and try alternative plan 3

A

Product to meet the minimum expected demand using a constant workforce and subcontract to need additional requirements

99
Q

Cut and try alternative plan 4

A

Produce to meet expected demand for all but the first two months using a constant work for and overtime to need additional requirements

100
Q

Advantages of level scheduling

A

Entire system can minimize inventory

Product modifications are up to date

Smooth flow in production process

Purchased items can be delivered when needed

101
Q

Level scheduling requirements

A

Production shouldn’t be repetitive

Must contain excess capacity

Output must be fixed

Cost of carrying inventory must be high

Equipment costs must be low

Workforce must be multi skilled

102
Q

Yield management define

A

Process of allocating the right type of capacity to the right type of customer at the right price and time to maximize revenue

103
Q

Where did yield management start?

A

Started with American Airlines (SABRE)

104
Q

When is yield management most successful?

A 
Demand can be segmented by customers
Fixed costs are high, variable costs are low
Inventory is perishable
Product can be sold in advance
Demand is highly variable
105
Q

Yield management is most common when…

A

Price is variable and duration is predicable (hotels, airlines, rental cars, cruise lines)

106
Q

Inventory velocity

A

Speed at which inventory passes through an organization measured by inventory turnover

107
Q

Inventory models (3)

A

Single period model
Fixed order quantity model
Fixed time period model

108
Q

Single period inventory model define

A

Used when making a one time purchase of an item

Super bowl t shirt

109
Q

Fixed order quantity inventory model define

A

Used when we want to maintain an item in stock and when we restock a certain number of units must be ordered

110
Q

Fixed time period inventory model

A

Items are ordered at certain intervals in time

111
Q

Inventory system define

A

Set of policies and controls that monitor levels of inventory

Determines what levels should be maintained, when it should be replenished, and how much to order

112
Q

What is the purpose of inventory? (5)

A

To maintain independence of operations

To meet variation in product demand

Allow flexibility

Provide safeguard for variation in raw material delivery time

To take advantage of economic purchase order size

113
Q

What are the different inventory costs?

A

Carrying costs

Setup costs

Ordering costs

Shortage costs

114
Q

Single period model applications

A

Overbooking is airline flights
Ordering of clothing
One time order for events

115
Q

Characteristics of fixed order quantity models?

A

Also called economic order quantity (EOQ)

Event triggered

116
Q

Fixed time period models characteristics

A

Also called periodic system

Time triggered

117
Q

What are some examples that use a fixed order model

A

Small average inventory
Favors more expensive items
More automated
More expensive to implement

118
Q

What are some examples of fixed time period model?

A

Larger inventory
Favors less expensive items
Less expensive to implement

119
Q

Enterprise resource planning (ERP)

A

Framework for organizing, defining, and standardizing the business process

120
Q

Material requirements planning (MRP)

A

A mean for determine the number of material needed to produce a product

121
Q

Time phased MRP begins with the items listed on the MPS and determines….

A

The quantity needed

The date they are required

122
Q

Master schedule define

A

A format that includes dates, forecasts, customer orders and the master production schedule

123
Q

Master production schedule (MPS)

A

It represents what the company plans to produce expressed in specific configurations

124
Q

Dependent demand drives the MPR system

A

True

125
Q

Top down model of manufacturing

A

Sales and operations planning

Master schedule

Material requirements planning

126
Q

Aggregate plan vs MPS

A

Aggregate: shows overall quantities to produce without specifying type

MPS: shows quantities of each type with info about production time frame

127
Q

Ex ability with a master production schedule depends on…

A 
Lead time
Commitment of parts to a end item
Relationship with vendor
Amount of excess capacity
Willingness of management to make changes
128
Q

What is the purpose of time fences?

A

To maintain a reasonably controlled flow through the production system

129
Q

Product demand sources (2)

A

Customers

Aggregate production plan

130
Q

Bill of materials

AKA product structure, product tree

A

Shows how the product is put together listing the materials needed and the sequence in which the product is created

131
Q

Bill of materials can be stocked as a sub assembly

A

True

132
Q

Gross requirements define

A

End items

133
Q

Net requirements

A

Calculated with on hand balance and schedule of orders

134
Q

Lot sizing strategies (4)

A

Lot for lot

Last total cost

Least unit cost

Economic order quantity

135
Q

Lot for lot define

A

Produces exactly what is needed each week

Does not take into account setup costs or capacity limitations

136
Q

Goldratts rules of production scheduling

A

Don’t balance capacity balance flow

An hour saved at a non bottleneck is a mirage

Bottlenecks Dover throughput and inventory

137
Q

Process batch define

A

Volume of output that is to be completed st a workstation before switching to a different type of work

138
Q

Goldratts theory of constraints (TOC)

A

Identify system constraints
Decide how to exploit them
Support everything to that decision
Elevate the constraints

139
Q

Throughput define

A

Rate at which money is generated by the system through sales

140
Q

Productivity does not guarantee profitability

A

Throughput needs to increase
Inventory needs to decrease
Operational expenses need to decrease

141
Q

Capacity constrained resource define

A

When capacity is close to demand and could become a bottleneck

142
Q

Drum-buffer-rope

A

Drum: bottleneck

Buffer: inventory

Rope: communication

Operations And Supply Chain Management (3 decks)

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