lecture 10 Flashcards
holding vs output example hospital
Holding/storing measurements (input measures)
Beds available
Output rates
Number of patients treated per week
holding vs output theatre example
Holding/storing measurement
Number of seats
Output rates
Number of customers entertained per week
Capacity utilization rate
Capacity used/best operating level
capacity MGT in operations and scm graph
Job process (low volume, customized process)
Small batch - large batch process (Multiple products, with low to moderate volume, disconnected line flows, moderately repetitive work)
Line process (few major products, higher volume, connected line and highly repetitive work)
Continuous flow process (high volume, high standardization commodity products, continuous flows)
Changing capacity systems
system ballance: bottleneck
Additions: too much or too little
Decreasing: plan less, sell?
External sourcing: outsourcing
capacity requirements
forecast –> equipment and labor needed -> equipment and labor available
Decision tree
value of the alternatives are given; Percentages (probabilities) are given = make the tree and the best choice
planning service capacity
service vs manufacturing
time: cant be stored
Location: no distribution after production
Volatility: higher (no inventories, customer differences, behavior)
Total quality management
managing the entire organization so that it excels on all dimensions of products and services that are important to the customer
two fundamental operational goals
Careful design of the product or service
Assurance that the organizations systems can consistently produce the design
International reference for quality management standards
ISO 9000 (quality principles) ISO 14000 (environmental)
TQM: specifications and costs
quality specifications: Design (performance, features, reliability, serviceability, aesthetics, perceived quality) and conformance to the design by the source
Quality costs: costs when quality is not perfect, appraisal (inspections) prevention (redesign), internal (reworking), external (warranties)
Six Sigma
a philosophy and set of methods companies use to eliminate defects in their products and processes
Seeks to redue variation in the processes that lead to product defects
six sigma stats definition
A statistical term to describe the quality goal of no more than 3.4 defects out of every million units
sigma six tierlist
sigma 1 DPMO = 500000
process yield = 50%
Sigma 2 DPMO = 308537
process yield = 65%
Sigma 3 DPMO = 66807
Process yield = 93%
Sigma 4 DPMO = 6210
Process yield = 99.4%
Sigma 5 DPMO 233
process yield = 99.976%
Sigma six DPMO = 3.4
Process yield 99.9997%