Test 2 Flashcards
Total quality management definition
Managing the entire organization so that it excels on all dimensions of products and services they are important to the customer
TQM fundamental operational goals
Design of of the product/service
Design of the system
Malcolm baldridge national quality award
Established by department commerce given to companies that excel in quality
What does it take to apply for Malcom Baldrige National Award?
Submit 50 pages on approach, deployment, and results of their quality under 7 major categories
7 categories of winning the Malcom baldrige award
Leadership
Strategic planning
Customer and market focus
Information and analysis
Human resource focus (how much the organization cares about its employees)
Process management (must be well designed)
Business results (does it make money)
The quality gurus
Crosby
Deming
Juran
How to achieve outstanding quality…
Leadership from senior management
Customer focus
Total involvement of the workforce
Continuous improvement based on analysis of processes
Design quality
The inherent value of the product in the marketplace
Dimensions of design quality
Performance Features Reliability/durability Serviceability Aesthetics Perceived quality
Conformance quality
Degree to which the product design specifications are met
Quality at the source
The person who does the work takes responsibility for ensuring everything is met
Justifying costs of quality
Failures are caused
Prevention is cheaper
Performance can be measured
Cost of quality classification
Appraisal costs
Prevention costs
Internal failure costs
External failure costs
What does six sigma do?
Seeks to reduce variation in the processes that lead to product defects
Refers to no more than 3.4 defects per million units
What is DPMO
Defects per million opportunities
A metric used to describe the variability of a process
Six sigma methodology (DMAIC)
Define Measure Analyze Improve Control
Analytical tools for six sigma
Flowcharts Run charts Pareto charts Check sheets Cause and effect diagram Opportunity flow diagram Process control charts
What are run charts
Depict trends in data overtime
What do Pareto charts do
Break down a problem into the contributions of the problem. Believe a large percent of problems are due to small percent of causes
Cause and effect diagrams (fishbone)
Show hypothesized relationships between potential cause and the actual problem. Then finds what is actually the problem
Opportunity flow diagram
Used to separate value added from non value added steps in a process
Failure mode and effect analysis
Calculates a Risk priority number (RPN) based on the occurrence and severity of the problem. High RPMs should be target for improvement first
Six sigma roles
Executive leaders committed to six sigma
Corporatewide training in six sigma concepts
Setting objects for improvements
Continuous reinforcement and rewards
Black belts
Lead a six sigma improvement team
Master black belts
Perform same functions as black belts. They have in depth training process improvement
Green belts
Employees who have received enough six sigma training to be apart of a team
Statistical quality control
Different techniques designed to evaluate quality from a conformance view
Assignable variation
Deviation in the output of a process that can be clearly identified and managed
(Ex: improper machine adjustments)
Common variation
Deviation in the output of a process that is random and cannot be fixed
Traditional view view of the cost of variability
If it is in the range of lower and upper specifications then it’s good. Doesn’t focus on continuous improvement
Taguchi’s view of the cost of variability
The farther away you are from the target the more cost it is to the society
Process capability
Want variance to be small
Ability of process to consistently produce a good with a low probability of generating a defect
Statistical process control
Testing a random sample of output to determine if it is correct
Attributes
Quality characteristics that are classified as conforming or not
Ex: a lawnmower either runs or it doesn’t
Variables
Quality characteristics that are measured in actual weight, volume, and inches
What is the lean logic
Nothing is produced until needed
Sale of an item pulls replacement
Requires quality, strong vendor relationships, and predictable demand
Two dimensions of Toyota production systems
Elimination of waste
Respect for people
7 waste examples
Overproduction Transportation Processing Product defects Waiting time Inventory Motion
Characteristics of respect for people
Lifetime employment Company unions Workers as assets Maintain level payroll Bonuses
Value stream
The value adding and non value adding activities required in the supply chain
What are the lean focused supply chain components
Lean suppliers Lean procurement Learn warehousing Lean logistics Lean customers
Lean procurement
A key is automation
Visibility, suppliers must be able to see each customers operations
Lean supply chain processes
Lean layouts
Lean production schedule
Lean supply chains
What goes into lean layouts?
Group technology
Quality at the source
JIT production
Group technology
Similar parts are grouped into families, the processes required to make the parts are in a manufacturing cell
Lean production schedules
Uniform plant loading
Kanban
Minimizing set up time
How to create a lean productions?
Level scheduling
Freeze windows
Underutilization of capacity
Freeze window
Period of time during which scheduled is fixed and no further changes are possible
Backflush
Calculating how much of each part was used in production.
This eliminates the need to actually track each part used in production
Uniform plant loading
Smoothing production flow to dampen schedule variation
Kanban pull system
System that uses a signaling device to regulate flows
What goes into lean supply chains?
Specialized plants
Collaboration with suppliers
Building a lean supply chain
Value stream mapping as a two part process
Depicting the current state of the process
Predicting a future state process with suggested improvements
Kaizen (continuous improvement bursts
Identify short term products (kaizen events) for teams to work on
Lean services reasons they are are to control
Uncertainty in task times
Uncertainty in demand
Customers production roles
Successful techniques applied to service companies
Problem solving groups Upgrade housekeeping Upgrade quality (consistency) Clarify processes flows Revise equipment Level the facility load Eliminating unnecessary activities Reorganize physical configuration Introduce demand pull scheduling Develop supplier networks
Define logistics
Obtaining producing and distributing material in the proper place and in the proper quantities
Third party logistics
A company that mangages part of another company’s product delivery operations (ex: fedex)
6 aspects in the logistics system
Highway Water Air Rail Pipelines Hand delivery
Define cross docking
Used in consolidation warehouses where large shipments are broken down into small shipments for local delivery in an area
Warehouse consolidation
When shipments from various sources are pulled together (uses economy of scale and scope)
Hub and spike systems
Sorts good and sends them to a consolidation area
What things does logistic management manage?
Transportation Warehouse Material handling Packaging Inventory management Logistic info
Locating logistics facilities
Proximity to customers, business climate, total costs, infrastructure, quality of labor, suppliers, other facilities, free trade zones, political risks, government barriers, trading blocs, environmental regulations, host community, competitive advantage
Plant location methods
Factor rating system
Centroid method
Transportation method of linear programming
What is factor rating system
An approach for selecting a facility by evaluating it base on criterion with points
Centerpiece method
A technique for locating single facilities that considers the existing facilities
What is postponement warehousing
Allows fines to put off inal assembly until the last possible moment (assemble to order)
What caused deregulation of logistics?
MCA-80
Why forecast?
Asses long term capacity needs
Develope budgets
Plan productions
Strategic forecast
Medium forecasts that are used for decisions related to strategy and aggregate demand
Tactical forecasts
Short term forecasts used for making day to day decisions related to meeting demand
Types of forecasts
Qualitative
Time series analysis
Casual relationship
Simulation
Components of demand
Average demand
Trend
Seasonal element
Cyclical element (influenced by elections)
Random variation
Autocorrelation (used the past to predict future)
Common trend types
S-curve (like life cycle of a product)
Asymptotic (most of the demand is at the beginning)
Exponential
Time series analysis
Try to predict future based on past data
Which forecasting model a company should choose depends on…
Time horizon to forecasts Data availability Accuracy required Size of forecasting budge Availability of qualified persons
Simple moving average
A forecast based on average past demand
