Test Review Flashcards
Joseph Juran
Quality is “fitness for use”
Pareto Principle
Cost of Quality
General Management approach as well as statistics
W. Edwards Deming
14 points for transformation of management
Transformation of management
- Constant purpose towards improvement
- Systems, not employees, cause defects
- Break down barriers between departments
Ishikawa
Cause and effect diagrams- fishbone diagrams
Teamwork is essential- quality circles
Taguchi
Robust design to ensure highest quality product or procedure
Quality must be designed into product
Crosby
All errors eliminated
Do it right the first time
Six Sigma Quality
System to eliminate defects in processes/products
Reduce variation in processes that lead to product defects
+/- six standard deviations- 3.4 defects per 1 million
99.99996% defect free
DMAIC Process- Six Sigma Roadmap
Define Measure Analyze Improve Control
Continuous Improvement
Kaizan- Japanese- step by step
PDCA- Plan- Do- Check- Act- Deming
Benchmarking- what do top performers do
Tools used for continuous improvement (7)
Process flowchart Run chart Control Charts Cause and Effect Check sheet Histogram Pareto
Run chart
Central tendency
Control charts
Upper and lower control limits
Cause and Effect Diagrams
Fishbone
Check Sheet
data recorded in real time
Pareto
Most frequent- in descending order
Gantt Chart
Timeline for project management to illustrate how it will run
Very specified, large to-do list
Shows how long (start and end date) and who is responsible
Trying to manage all aspects of organization in order to excel in all dimensions important to customer
Quality Management
Two aspects of quality
Features- customer needs
Freedom from trouble (defects)
Total Quality Management (TQM)
Continuous Improvement
Leadership Development
Partnership Development
Culture
Relates customer needs and expectations to specific design characteristics through series of grids or matrices
Quality Function Deployment (QFD)
Processes that require inputs and transform them into outputs for the public to consume
Operations
Processes through which capital, materials, and people are combined to produce services and goods for the public
Operations
A condition or circumstance that puts a company in a superior or favorable business position over its competitors
Competitive advantage
How do operations managers help firms
Implementing strategy by allocating resources
4 Types of Demand
- Peak
- Seasonal
- Chase
- Unexpected
Goods available for sale and raw inventory to produce goods for sale
Inventory
Purpose of inventory
Help businesses meet demand and work more efficiently
Types of Inventory (6)
- Raw Materials
- Work in process
- Finished good
- Replacement Parts inventory
- Supplies
- Transportation (pipeline)
Systems that companies use to track inventory
Periodic and Perpetual Systems
Inventory system that continuously monitors inventory levels
Perpetual system
Inventory system that randomly monitors inventory systems
Period system
5 main reasons to use Perpetual Inventory System
- inventory requires exact balance at all times
- Big businesses, banks
- High volume, high value items
- Best for accurate financial statements
- Expensive to implement and maintain
5 Reasons to use periodic inventory system
- Requires a physical count to know exact inventory
- Supplier only delivers at specific time intervals
- Low value, low volume items
- Small businesses
- Inexpensive to implement and maintain
Two models used to help companies control the cost of ordering, receiving, and holding inventory
EOQ- Economic Order Quantity
EPQ- Economic Production Quantity
Measure of an organization’s ability to sustainably provide customers with demanded services/goods in the amount requested, in a timely manner, given current resources
Capacity
Max rate of output in the current system
Throughput
The ability of an overall organization to produce sufficient number of goods and services to meet demands of customers, considering both strongest and weakest production points
System Capacity
Determined by the department with the lowest output or the slowest time
System Capacity
Needed to support customer demand and maintain production capacity as demands for products change
Capacity Planning
Capacity Planning Strategies (4)
Lead
Lag
Match
Adjustment
Adds capacity with anticipation of increase in demand
lead strategy- proactive
Adding capacity only after a company is at full capacity or more due to increase in demand
lag strategy- reactive
Adds capacity in small amounts in response to changing demands
Match strategy
Add or reduce capacity in small or large amounts as consumer demand or major changes to product or system occurs
Adjustment Strategy
Maximum achievable output of a process or system
Design Capacity
Maximum capacity given product mix, equipment changeovers, and scheduled downtime of production schedule
Effective Capacity
Capacity Utilization Formula
Actual Output/Design Capacity
Efficiency Formula
Actual Output/Effective Capacity
Types of facility layouts
Process layout
Product layout
Layout for high demand of same or similar products
Product layout (Sequential layout)
Layout for many different products with the same equipment and low volume of any individual product
Process layout (Functional Layout)
Requires that each production facility has a defined marketing area and each facility produces a complete line or products for that area
Regional facility strategy
When Regional facility strategy is used
When transportation costs are too high
When customer access and convenience are important
One facility is responsible for producing one product or product line and shipping that product throughout the world and country
Product facility strategy
When to use product facility strategy
when production process is complex and hard to control
Total cost formula
Variable costs x # of units + fixed costs
VC(x) + FC
The ability to produce more goods at a lower cost by better utilizing the same fixed costs
Economies of scale
Building the volume necessary to cover fixed costs by producing a variety of products on the same equipment- requires flexibility by the organization
Economies of scope
Determining the most appropriate method for completing a task
Process selection
Types of process selection (4)
Job Shop
Batch
Assembly Line
Continuous Flow
The most limiting constraint on a system
Bottleneck
A constraint in the supply chain that requires the longest time or has the slowest rate
Bottleneck
