FINAL EXAM REVISION (LEC 5, 6, 7 & 8) Flashcards
Total quality management
continuously improve the quality of products and processes by involving all employees in the organization
Goals:
- careful design
- ensuring the organization can consistently produce the design
Malcom bridge national quality award
Performance excellence award given to companies that excel in quality
Design quality
Value of design to customers (in the market place)
Conformance quality
Degree to which a product/service meets design standard
Judged on:
- performance
- features
- reliability
types of cost of quality
- appraisal cost
- prevention cost
- internal failure cost
- external failure cost
Appraisal costs
Cost of inspection and testing
Prevention costs
Costs to prevent the number of errors
Internal failure costs
Costs of defects before a product leaves the system (factory)
External failure costs
Costs of defects after a product reaches the customer
Six sigma
A methodology that helps companies eliminate defects in the products and processes
Six sigma cycle (DMAIC)
- Define
- Measure
- Analyze
- Improve
- Control
Shingo system
Argues that service quality control does not prevent defects as they arise from people making errors
Believes that defects can be prevented by providing employees with feedback on errors
Poke-Yoke
Special tool that prevents workers from making errors
Production processes
Used to make any manufactured item
- Sources the parts
- Make the product
- Deliver the product
Lead time
time needed to respond to a customer order
Customer order decoupling point
Inventory is positioned to allow entities in the supply chain to operate independently
Lean manufacturing
Means of achieving high levels of customer service with minimal inventory investment
Make to stock
Serve from finished goods inventory
What’s available on “stock”
example:
- TV
- packaged foods
issue:
- excessive inventory
Assemble to order
Preassembled products that are customized to meet a customer’s specifications
issue:
- have longer lead times
- higher inventory costs
Make to order
Make the customer’s product from raw material, parts and components as soon as they place an order
issue:
- require more accurate forecasting
Engineer to order
Work with the customer to design and then make the product
issue:
- face higher design costs
- longer lead times.
Manufacturing process flow design
step-by-step guide on how to use materials to build a product through different stages of the process
tools;
- assembly drawing (visual)
- assembly chart (build and inspect each stage)
- operation and route sheet
- process flow chart (step by step flowchart)
Four categories of the service triangle
- the service strategy
- the customer
- employees
- support systems
Customer contact
interactions between the customer and service provided
extent of contact
% of time a customer is in the system compared to the service time
- high contact; hair salon
- low contact: automated car wash
Service capacity
Maximum amount of service that a service system or process can provide during a given period of time
Difference between service design and product design?
- the process is the product
- lack legal protection
- service package is defined by trained staff
- services can be changed virtually overnight
service-system design matrix
defines the relationship between sales opportunity and production efficiency against the amount of customer contact
- production efficiency decreases with more customer contact
- los contact = system works more efficiently
Lowest contact to highest
- mail contact
- internet
- phone contact
- f2f tight specs
- f2f loose specs
- f2f total customization
Pure virtual customer contact
customers interact in a digital environment
- eBay
- SeconLiife
mixed virtual and actual customer contact
Customer interact digitally and physically
-e-commerce
Types of variability
the differences and fluctuations that can occur in various aspects of service delivery
- arrival variability
- request variability
- capability variability
- effort variability
- subjective preference variability
Strategies to manage customer-introduced variability
- require reservations
- persuade customers to compromise their requests
- target customers on the basis of capability
- use reward and penalties to get customers to increase their effort
- persuade customers to adjust their expectations to match the value proposition
Arrival variability
Customers arriving at times when there are not enough service providers
Request variability
Differences in the specific service requests made by customers
- Travelers requesting a room with a view
Capability variability
Differences in the skills and abilities of service providers
- A patient being unable to explain symptoms to doctor
Effort variability
Differences in the effort made by customers to participate in the service process
- Shoppers not putting up carts
Subjective preference variability
Differences in the subjective preferences of customers for aspects of the service process
- Interpreting service action differently
Service guarantee
a formal promise made by a service provider to their customers that outlines the level of service that they can expect to receive and what will happen if the service provider fails to meet those expectations
Service blueprinting
process mapping tool used to understand and improve service processes
it includes the line of visibility, which separates the front-office activities (visible to customers) from the back-office activities (not visible to customers)
- helps to identify customer actions and interactions, and to ensure that the service design meets customer expectations
How to apply Poke-yoke in services
- warning methods
- physical or visual contact methods
- tangible features of the service
Characteristics of a well-designed service system
- user-friendly
- robust
- cost-effective
- each element of the service process is consistent with the operating focus
3 contrasting service designs
- The production line approach
- The self-service approach
- The personal attention approach
The production line approach
Involves creating a standardized and efficient process for delivering services,
The self-service approach
Involves providing customers with the tools and resources they need to serve themselves
The personal attention approach
Involves providing personalized and individualized service to each customer
Cycle time
Average time between completions of units
Utilization
Ratio of: Time activated / time available
Process flowcharting
using a diagram to present elements of a process
Types of processes
- single stage
- multiple stage
Single stage
activities could be analyzed using a single cycle time to represent the speed of the process
Multiple stage
group of activities that are linked through flows
Computer systems and networking terms
- buffer
- blocking
- starving
- bottleneck
Buffering
temporarily storing data or information in a buffer, a designated area of memory or storage, before it is processed or transmitted
Blocking
process is unable to continue until a particular event or condition has been satisfied
Starving
process or resource is not receiving the necessary inputs or resources to continue executing properly
Bottleneck
stage that limits the capacity of the process (slows it down)
Pacing
having a fixed time for movement of items through the process
