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
