Process Management and Design Quiz 2 Flashcards
What are the components of TPS quality improvement
Fool-proofing: components are designed in a way that there is one single way of assembling them
Visual feedback: to make any production problem instantly self-evident and stop the process immediately whenever a defect is detected and alert the line supervisor (Andon cord)
“Built-in” quality inspection: quality inspection happens at every step in the line, as opposed to relying on a final inspection step alone
What are the elements of just-in-time production
Achieve a one-unit-at-a-time flow: mixed model production, product variants are mixed together on the assembly line, production pans are designed to avoid large batches of the same variant
Produce at the rate of customer demand: takt time is the cycle time necessary to met customer demand, it is calculated by dividing the time available to produce a certain product by customer demand, if cycle time is lower than takt time you are overproducing, if cycle time is greater than takt time you are underproducing, and implement a pull system
What is a pull system
An essential part of JIT, it is where external demand is transferred step by step through the process, leading to an information flow moving in the opposite direction as the physical flow of the units
What are the human resource practices
quality circles where workers work together to solve production problems, fishbone diagrams which can be used to structure brainstorming sessions and visualize a complex system, five whys which help get to the root of the problem and see what other things are just symptoms of the root cause, and skill development
What are the sources of waste
Overproduction, waiting, transport, inventory, over processing, rework, motion, and human intellect (non-utilized talent)
What is value stream mapping
VSM is a lean-management method used to analyze to analyze and design the flow of materials and information required to bring a product or service to a customer. The goal is to identify and eliminate waste, this improving the overall efficiency of the process. It involves creating a visual map of the process. Emphasizes how much value we are creating at each step and if the step is creating value or waste.
What is the purpose and key focus of value stream mapping
The purpose is to identify waste and areas of improvement in the process. The key focus is visualizing value vs non-value added activities
How can you determine if a step adds value
Check by asking if the customer would be willing to pay for this step, in lean they only care about the value added steps, even if the step is necessary but the customer wouldn’t pay for it, it does not directly add value and would be a non-value added step
How does lean relate to the first 3 sources of waste
Defects: (rework in TPS) leads to rework because of errors or mistakes in production that lead to rework or scrap
Overproduction: producing more than what is needed or producing it too early, leads to excess inventory and additional storage costs
Waiting: idle time created when materials, information, people, or equipment are not ready, includes waiting for a machine to finish processing or for materials to arrive
How does lean relate to the next two sources of waste
Human intellect (non-utilized talent): not full using people’s skills, knowledge, and talents, this waste occurs when employees are not given the opportunity to fully contribute to the organization, usually due to poor job design, or inadequate training
Transportation: unnecessary movement of materials, products, or information between processes, this can lead to delays, damage, or additional handling costs
What is the 5S methodology
Sort: remove unnecessary items and reduce clutter
Set in order: arrange necessary items in order to ensure easy access
Shine: clean the workplace and equipment regularly and identify issues early
Standardize: establish standards and procedures to ensure consistency
Sustain: develop habits and discipline to foster an improvement culture
How does lean relate to the last three sources of waste
Inventory: excess products or materials not being processed, inventory waste ties up capital and increases storage costs
Motion: unnecessary movement by people, such as walking or reaching for tools or materials, this waste increases the time and effort required to complete tasks, leading to fatigue and inefficiency
Extra processing: performing more work or using more materials than necessary to met customer needs, includes over-engineering or adding unnecessary features that do not add value for the customer
What are lean layout tactics to reduce waste due to movement
Minimize distance, build work cells for families of products, design little space for inventory, improve employee communication, build flexible or moveable equipment, replace large lots and long production lines with smaller, flexible cells, often U-shaped for shorter paths and improved communication
What is the critical path
The path with the longest duration, NOT necessarily the path with the most steps. This path determines the duration of the overall project and each step in this path has a slack time of 0, meaning any delays in the activities in this path will directly impact the project’s completion time.
What are the components of a network diagram
Activity name, beneath it is activity duration
Next column is earliest start time which is the MAXIMUM time of the steps before this step. Net to this is the earliest completion time which is EST + duration of activity.
Bottom row is duration, then latest start time, which is the latest completion time - duration of activity. Next to this is the latest completion time, which is the MINIMUM of the latest start time of the activities after the activity of interest.
What is slack
Slack sis the latest start time - earliest start time
What is the bullwhip effect
An effect that occurs because demand variability increases as you move up the supply chain (from retailers to raw material suppliers), it means variability at one level is greater than variability of the next downstream level in the supply chain. It means small fluctuations in customer demand can cause much larger fluctuations up the supply chain, leading to inefficiencies and increased costs
What are the causes of the bullwhip effect
Demand forecast errors: occur due to delayed or distorted signals from downstream members of the supply chain
Order batching: the batch quantity requirement forces retailers to order in a way that is more variable than customer demand
Trade promotions: occur when discount off the wholesale price is available for a short period of time, which leads retailers to purchase more than they need to fill short term requirements
Shortage gaming: the behavior of ordering more than needed due to the anticipation of a possible shortage because retailers think they’re only going to receive a fraction of their order
What are strategies to mitigate the bullwhip effect
Sharing information: giving the supplier access to consumer demand data, merchandising, promotion, advertising, and assortment planning information
Eliminate generous return policies: the supplier can limit the number of items that can be returned, or they can limit the time in which they can be returned, the supplier can also impose a cancellation policy or require a non-refundable deposit when orders are submitted
Using vendor-managed inventory (VIM): a supply chain strategy where the supplier (vendor) takes responsibility for managing and maintaining the inventory levels of their products at the customer’s location, the firms mutually agree on an objective that the supplier will use to guide replenishment decisions
What is outsourcing
Outsourcing is the transfer of traditional internal activities and resources of a firm to outside vendors, utilizes the efficiency that comes with specialization, allows management to focus on its core competencies, forms outsource IT, accounting, legal, logistics, and production
What is offshoring
Offshoring is primarily a geographic activity, organizations relocate their processes to a foreign country, associated with cost savings and access to global talent, stimulates wealth and provides jobs in foreign countries
What is the difference between outsourcing and offshoring
Outsourcing is moving tasks to an external provider while offshoring is relocating entire operations to another country, outsourcing is not about location, offshoring does not give processing to another company, they are still in change of production. Outsourcing is the result of a firm selecting the most efficient ownership structure (external or in-house) for its production activities, while offshoring is the result of a firm selecting the most efficient location for production
In the make or buy decision, what are the reasons for buying
Lower acquisition costs compared to producing in house, preserve supplier commitment, obtain technical or management skills, inadequate capacity, inadequate managerial or technical resources, reduce inventory costs, ensure alternative sources, and item is protected by patent or trade secret
In the make or buy decision, what are the reasons for making
Lower production cost compared to acquisition, ensure adequate supply (quantity or delivery), utilize surplus labor or facilities, obtain desired quality, remove supplier collusion, protect personnel from a layoff, protect proprietary design or quality, and increase or maintain size of company
