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Operations Management > OM Test 4 > Flashcards

OM Test 4 Flashcards

1
Q

fitness for use

A

the ability of a good or service to meet customer needs (quality)

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2
Q

Quality of conformance

A

the extent to which a process is able to deliver output that confirms to design specifications

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3
Q

Specifications

A

targets and tolerances determined by designers

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4
Q

service quality

A

consistently meeting or exceeding customer expectations (external focus) and service delivery system performance criteria (internal focus)

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5
Q

tangibles

A

what the customer sees, such as physical facilities, equipment and the appearance of employees

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6
Q

reliability

A

the ability to provide what was promised

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7
Q

responsiveness

A

the willingness to help customers and provide prompt service

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8
Q

assurance

A

the knowledge and courtesy of service providers and their ability to convey trust and confidence

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9
Q

empathy

A

caring, individual attention the firm provides its customers

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10
Q

principles of total quality

A

1) a focus on customers and stakeholders
2) a process focus supported by continuous improvement
3) participation and teamwork by everyone in the organization

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11
Q

ISO 9000:2000

A

quality standards that are internationally recognized and has set of basic principles for quality management

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12
Q

Deming

A

reduced uncertainty, 14 points, Deming cycle

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13
Q

Joseph Juran

A

quality is fitness for use, quality trilogy (planning, control, improvement), used stats

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14
Q

Philip B. Crosby

A

“Quality is Free”, absolutes of quality management

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15
Q

The GAP model

A

comparing to a set of expectations, recognizes that there are several ways to mismanage the creation and delivery of high levels of quality

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16
Q

Six sigma

A

eliminates causes of defects in processes by focusing on outputs that are critical to customers

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17
Q

defect

A

(nonconformance) any mistake or error that is passed on to the customer

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18
Q

Unit of work

A

the output of a process or an individual process step

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19
Q

how does the six sigma quantify quality performance?

A

defects per million opportunities

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20
Q

dpmo=

A

defects per million opportunities (in service its errors per million opportunities)

dpmo= (number of defects discovered/ opportunities for error) x 1,000,000

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21
Q

Six Sigma perfect quality

A

3.4

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22
Q

6 key concepts of six sigma

A

1) dpmo or epmo are standard metrics that can be applied to all parts of an organization
2) provide extensive training followed by project team deployment
3) corporate sponsors are responsible for supporting team activities
4) Create highly qualified process improvement experts
5) Ensure that appropriate metrics are identified early in the process and that they focus on business results
6) set stretch objectives for improvement

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23
Q

DMAIC process for implementing six sigma

A

1) Define: identify customers and their priorities, identify and define a suitable project, identify CTQs
2) Measure: how to measure process and how it is performing, measure current defects
3) Analyze: determine likely causes of defects and understand why defects are generated by identifying what causes process variation
4) Improve: identify means to remove causes of defects, confirm key variables, modify the process to stay within acceptable range
5) Control: determine how to maintain improvements, put tools in place to ensure that key variables remain within acceptable ranges under the modified process

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24
Q

CTQ

A

critical to quality characteristics

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25
Q

concepts and methods for implementing six sigma

A
  • elementary statistical tools
  • advanced statistical tools
  • product design and reliability
  • measurement
  • process control
  • process improvement
  • implementation and teamwork
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26
Q

cost of quality

A

costs associated with poor quality

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27
Q

prevention costs

A

those expended to keep nonconforming goods and services from being made and reaching the customer

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28
Q

appraisal costs

A

those expended on ascertaining quality levels through measurement and analysis of data to detect and correct problems

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29
Q

internal-failure costs

A

incurred as a result of unsatisfactory quality that is found before delivery

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30
Q

external-failure costs

A

incurred after poor quality stuff reaches the customer

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31
Q

Seven QC Tools

A

1) flowcharts
2) run charts and control charts
3) checksheets
4) histograms
5) pareto diagrams
6) cause-and-effect diagrams
7) scatter diagrams

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32
Q

flowcharts

A

process mapping to identify sequences and flows

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33
Q

run charts and control charts

A

run chart: line graph with data plotted over time

control charts: same but with control limits

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34
Q

histogram

A

graphically represent frequency of values within a specified group

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35
Q

pareto diagrams

A

separating the vital few from the trivial many causes

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36
Q

cause-and-effect diagram

A

fishbone diagram

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37
Q

scatter diagrams

A

graphical component of regression analysis

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38
Q

root cause analysis

A

used to designate the source of a problem

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39
Q

5-why technique

A

identifies chain of causes and source by asking why 5 times

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40
Q

kaizen

A

focuses on small, gradual and frequent improvements over the long term with minimum financial investment and with participation by everyone in the organization

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41
Q

kaizen blitz

A

an intense and rapid improvement process in which a team or a department throws all its resources into an improvement project over a short time period

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42
Q

poka-yoke

A

(Mistake proofing) uses automatic devices or methods to avoid simple human error (ex: flash drives can only be inserted one way

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43
Q

Quality control systems 3 components

A

1) a performance goal
2) a means of measuring actual performance
3) comparison of goal and actual performance

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44
Q

1:10:100 Rule

A

if a defect is corrected during design stage, it will cost $1 to fix. if a defect is corrected during production, it will cost $10 to fix. If a defect is discovered by the customer, it will cost $100 to fix.

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45
Q

quality at the source

A

(doing it right the first time) the people responsible for the work control the quality of their processes by identifying and correcting any defects or errors when they first are recognized or occur

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46
Q

supplier certification and management

A

(manufacturing) ensures conformance to requirements before value-adding operations begin

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47
Q

in-process control

A

(manufacturing) prevents defects before they leave

48
Q

finished goods control

A

(manufacturing) verifies that product meets customer requirements

49
Q

Statistical Process Control (SPC)

A

a methodology for monitoring quality of processes to help find and get rid of unwanted causes of variation

50
Q

common cause variation

A

the result of complex interactions of internal variables (materials, tools, machines, info, workers, environment)

  • about 80-95% of variation
  • controlled by management
51
Q

special (assignable) cause variation

A

from external sources that are not inherent in the process, appear sporadically and disrupt the random pattern of common causes

  • about 15% of variation
  • controlled by front-line employees and supervisors
52
Q

A process is in control

A

if no special causes affect it’s output

53
Q

A process is out of control

A

if special causes are present

54
Q

two basic mistakes when attempting to control a process

A

1) Adjusting a process that is already in control

2) Failing to correct a process that is out of control

55
Q

How to construct a control chart (6 steps)

A

1) Preparation: choose a metric to be monitored, determine the size basis and frequency, set it up
2) Data collection: record the data, calculate relevant stats, plot on the chart
3) Determine the trial control limits: draw the center line (process avg) on the chart, compute upper and lower control limits
4) Analysis and interpretation: investigate the chart for lack of control, eliminate, out of control points, recompute control limits if necessary
5) Use chart as a problem-solving tool: continue data collection and plotting, identify out of control situations and take corrective action
6) Determine process capability

56
Q

continuous metric

A

one that is calculated from data that are measured as the degree of conformance to a specification on a continuous scale of measurement

57
Q

discrete metric

A

calculated from data that are counted

58
Q

Steps to x bar and r charts

A

1) calculate the x bar and r for each subgroup (n=subgroup size, k= number of subgroups)
2) calculate the overall process mean and range
3) calculate control limits

59
Q

control limits for R

A

UCLr= D4*R

LCLr=D3*R

60
Q

control limits for X double bar

A

UCLx=X+(A2*R)

LCLx=X-(A2*R)

61
Q

D and A values on x bar and r charts are taken from

A

charts and depend on n value

62
Q

Control charts: process is in control when

A
  • no points are outside control limits
  • No. of points above and below center line is about the same
  • points seem to fall randomly above and below the center line
  • most points are near center line
63
Q

Control charts: Identifying a shift in the process

A

when a lot of points are above or below the center line consecutively

64
Q

p-chart

A

monitors the proportion of nonconforming items

65
Q

p

A

the fraction of nonconforming in a sample

66
Q

average fraction nonconforming

A

P bar= sum of p’s over k

67
Q

standard deviation

A

sp = square root of Pbar * (1-Pbar) over n

68
Q

Control limits in p charts

A

UCLp= P+3(sp)

LCLp=P-3(sp)

69
Q

if LCL is negative…

A

it is automatically set to zero

70
Q

c-chart

A

monitors the number of nonconformances per unit when the size of the sampling unit is constant

71
Q

Control limits for c charts

A

UCLc=Cbar+(3 times square root of Cbar)

LCLc=Cbar-(3 times square root of Cbar)

72
Q

sample size in SPC implementation

A

smaller sample sizes are cheaper, larger sample sizes are more accurate

73
Q

SPC is a useful methodology for processes that…

A

operate at a less than or equal to 3-sigma level

74
Q

Process capability

A

the natural variation in a process that results from common causes

75
Q

process capability study

A

a carefully planned study designed to yield specific information about the performance of a process under specific operating conditions

76
Q

process capability index

A

the relationship between natural variation and specifications

Cp = (USL-LSL) / 6s

77
Q

Process capability index: what the numbers mean

A

Cp=1 means the natural variation is the same as the design specification width

Cp<1 means a significant percentage of output will not conform to specifications

Cp>1 means nearly all the output will conform

78
Q

Normal Cp value required

A

1.66 or more

79
Q

lean thinking

A

approaches that focus on the elimination of waste in all forms to obtain higher quality and lower costs

80
Q

principles of lean operating systems

A

eliminate waste (non value added activities), increase speed and response, improve quality, reduce costs

81
Q

5Ss

A

sort, set in order, shine, standardize and sustain

82
Q

sort

A

each item is in the proper place

83
Q

set in order

A

arrange materials so that they are easy to find and use

84
Q

shine

A

clean work area

85
Q

standardize

A

formalize procedures and practices

86
Q

sustain

A

keep the process going

87
Q

visual controls

A

indicators for operating activities that are placed in plain sight of all employees so that everyone can quickly and easily understand the status and performance of the work system
ex: electronic scoreboards, painted floors showing where certain things should be, signal lights

88
Q

Single Minute Exchange of Dies (SMED)

A

quick setup or changeover of tooling and fixtures in processes so that multiple products in smaller batches can be run on the same equipment

89
Q

batching

A

producing large quantities of items as a group

90
Q

single-piece flow

A

using batch sizes of one

91
Q

Total productive maintenance (TPM)

A

focused on ensuring that operating systems will perform their intended function reliably

92
Q

goals of TPM

A

1) maximize equipment effectiveness and eliminate unplanned downtime
2) create worker “ownership” of equipment

93
Q

difference between lean and six sigma

A

lean focuses on streamlining processes, while six sigma focuses on root causes of problems

Lean: efficiency, intuitive
Six Sigma: effectiveness, requires advanced training

94
Q

push system

A

produces finished goods inventory in advance of customer demand using a forecast of sales

95
Q

pull system

A

units of production are withdrawn from preceding workstations as needed. Finished goods coincide with the actual rate of customer demand. (minimal inventories and maximum responsiveness)

96
Q

Just-in-time systems are based on

A

pull production because it synchs the entire manufacturing process to the final assembly schedule.

97
Q

kanban

A

a flag or piece of paper that contains all relavent info for an order, circulated within a JIT system to initiate withdrawal and production of items
-simple visual controls

98
Q

the number of kanban cards is directly proportional to the amount of

A

WIP inventory

99
Q

project

A

a temporary and often customized initiative that consists of many smaller tasks and activities that must be coordinated and completed to finish the entire initiative on time and within budget

100
Q

examples of some projects

A

market research studies, construction, movie production, software development, book publishing, wedding planning

101
Q

the scope of project management

A

define, plan, organize, control, close

102
Q

pure project organizational structure

A

team members are assigned exclusively to projects and report to a project manager
-results in a duplication of resources

103
Q

pure functional organizational structure

A

charters projects exclusively within functional departments

-ignores cross functional issues

104
Q

matrix organizational structure

A

lends resources to projects while still maintaining functional control
-minimizes duplication of resources and facilitates communication

105
Q

all project management decisions involve three factors

A

time, resources and cost

106
Q

key steps to plan projects

A

1) project definition
2) resource planning
3) project scheduling
4) project control

107
Q

project network

A

a graphic that has circles (nodes) and arrows (arcs) to define relationships between activities (activity-on-node network representation)

108
Q

resource planning…

A

includes developing time estimates for each activity and allocating resources that will be required

109
Q

critical path

A

the sequence of activities that takes the longest time and defines the total project completion time

110
Q

Critical path assumes

A
  • activities are independent of one another
  • activity time estimates are accurate
  • activities are uninterrupted
111
Q

Gantt charts

A

graphically depict the project schedule so that a project manager knows exactly what activities should be performed at a given time

112
Q

crashing a project

A

reducing the total time to complete the project to meet a revised due date

113
Q

crash time

A

the shortest possible time the activity can realistically be completed

114
Q

crash cost

A

the total additional cost associated with completing an activity in its crash time rather than in its normal time

115
Q

crash cost per unit of time

A

crash cost-normal cost / normal time-crash time

116
Q

PERT

A

project evaluation and review technique

117
Q

PERT estimates

A

optimistic time, most probably time, pessimistic time

Operations Management (4 decks)

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