lecture 5 Flashcards
wastes
anything that adds cost to the product without adding value
sources of waste
- products defects
- inefficient work methods
- overproduction
- unnecessary transporting
- processing waste
- waiting time
JIT/lean operations
just in time –> highly coordinated processing system in which a goods moves through the system/services are performed just as they are needed
push (traditional) and pull system (JIT)
push system : produce in anticipation of downstream needs (customer demand forecast) –> make-to-stock
pull system : produce in response to the actual downstream need (customer order) –> make-to-order
traditional vs JIT
traditional :
1. much to offset forecast errors
2. few, large
3. large
4. few setups, long runs
5. long-term relationships
6. necessary to do the work
JIT :
1. minimal, necesarry to operate
2. frequent, small
3. small
4. many setups, short runs
5. partners
6. assets (cross-trained workers)
needs for transitioning to JIT
- get top management commitment
- decide which part needs most effort
- support from workers
- try to reduce set up time
- change supplier and operations to JIT
- prepare for obstacles
obstacles of transitioning to JIT
- management not commited
- workers not cooperative
- hard to change company culture
- suppliers may resist
why does the supplier may resist transition to JIT
- uneasy about long term commitments
- unable to commit resources
- frequent small deliveries are difficult
- burden of quality control switch to supplier
- frequent engineering changes because JIT changes
Benefits of JIT
- Reduced inventory level
- high quality
- flexibility
- reduced lead time
- increased productivity
- increased equipment utilization
- reduced scrap and rework
- reduced space requirements
- reduced need of indirect labor
- pressure for good vendor relationships
TQM
total quality managment –> manages the whole organization –> excels on all dimensions of important products and services
TQM fundamental operation goals
- careful design of the product/service
- ensure that the organization’s systems can consistently produce the design
5 dimensions of service quality
RATER
1. responsiveness : willingness to help customers
2. assurance : convey trust, confidence, competence, and knowledge
3. tangible : appearence of physical facilities
4. empathy : provide care, individualized attention to customers
5. reliability : perform promised services dependably and accurately
service quality assesment
expected services (ES) : word of mouth + personal need + past experience + RATER
perceived services (PS) : RATER
ES < PS : expectations exceeded (quality surprise)
ES = PS : expectations met (satisfactory quality)
ES > PS : expectations not met (unacceptable quality)
service quality gap model (SERVQUAL) definition
customer satisfaction determined by many intangible factors –> service quality is hard to measure
service quality gap model (model)
customer expectation (understanding the customer) (market research GAP1) –> management perception of customer expectation (service design) (design GAP2) –> service standards (conformance) (conformance GAP3) –> service delivery (managing the evidence) (communication GAP4)–> customer perception (customer satisfaction GAP5)–> customer expectation
six sigma definition
set of methods that companies use to eliminate defects in their products, seek to reduce variations (no more than 3.4 defects per million units)
DMAIC
define, measure, analyze, improve, control.
six sigma methodology –> identifying and eliminating root causes
DMAIC definitions
define –> identify customers and their priorities
measure –> determine how to measure the process and how it is performing
analyze –> determine what is the most likely cause of defects
improve –> identify ways to remove the defects
control –> identify ways to maintain improvements
six sigma 7 basic tools
- flow chart : diagram of the sequence of operations (measure)
- run chart : depict trends from data over time (define+measure)
- pareto chart : break problem down to components (mostly measure)
- check sheets : basic form of standardize data collection (measure)
- cause-and-effect diagram (fishbone diagram) : shows relationship between causes and problems (analysis)
- opportunity flow diagram : separate value added from non-value added (improve)
- process control chart : assure that processes are in statistical control (control)
