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MGT 364 - Exam 2

What does it mean to be in control, and out of control? In control means that the sample is within the UCL & LCL.
Control chart limits are based on individual, small, or large samples? Normally about 20-25 m
What is an "assignable cause"? Variation in the production process that can be traced to specific causes.
What do SPC Charts do? process used to monitor standards by taking measurements & competitive action as a product or service that is being produced.
What can you assume when something is outside control limits? There is an issue that has caused the sample to be outside normal control limits. There is an issue in the sample that makes it bad....I don't know...
What is the difference between measuring "variables" vs. measuring "attributes". V: Characteristics that can take real value. Normally whole #'s, fractions, or range of #'s. (Things that are measured) A: Defect-related characteristics, classifying products either good, or bad. Sometimes when you count.
How does acceptance sampling work? 1.) Take samples @ random 2.) Inspect each of the items 3.) Decide whether to reject the whole lot based on the inspection results
What is Producer's Risk? probability that a "good" lot will be rejected *Type I Error* -risk is normally set at .05 or 5% -Symbol is infinity sign with right loop halfway cut off
What is Consumer's Risk? probability that a "bad" lot will be accepted *Type II Error* -Looks like a B with a long straight line. -Is normally set at .10 or 10%
What are "Acceptable Quality (AQL)"? Poorest level of quality that you are willing to accept
What is "Lot Tolerance Percent"? The quality level of a lot considered bad
What is "natural variation"? the many variations that occur within a process that is in statistical control.
What does the x-bar chart do? QUALITY control for variables that indicate when changes occur in the CENTRAL TENDENCY of production process **Used when there are continuous dimensions**
What does the R-chart do? Control chart that tracks the "range" within a sample; if that a gain or loss in uniformity has occurred in dispersion of a product proces
What is a "run test"? Help identify the kind of abnormalities in a process that we see. Normally 5 points above, or below target. May suggest that an assignable, or nonrandom variations present. When found, you should investigate why this is happening.
What is the purpose of acceptance sampling? Form of quality testing used for incoming materials or finished goods.
What is capacity? throughput, or the # of units a facility can hold, receive, store, or produce in a given time.
What is "effective capacity"? Capacity a firm can EXPECT to achieve, given it's production product mix, methods of scheduling, maintenance, & standards of quality
What kinds of products are made in a "job shop" environment? Machine, print, hospitals, and resturants
What is the disadvantage of using "repetitive" processes? low to minimal flexibility
What are the characteristics of a "process" focus? Low volume, & High Variety *Also called intermittent process Many departments and routing between them
What is "mass customization" and why is it possible today, and it wasn't in the past? Rapid, low-cost production of goods & services that fulfill increasingly unique customer desires.
What types of company or process has low equipment utilization? Process Focused (Made to Order)
An assembly line or a job shop is an example of what type of process? Process Focused
How do you improve service processes? *Postponement-customizing @ delivery (Last Step) *Modules-part of component of product previously prepared (Often in a continuous process) *Separation-go where service is offered *Self-service-compare @ their own pace.
What does "made to order" mean? producing to customers order, not forcasted | high-volume system in which products are built to order
How do you achieve flexibility in your operations? Cross-train, advance technology, more space, postponement
What are the 3 main processes? Repetitive Focus - flexibility of people & equipment Process Focus - High Variety, Low Volume, Low Utilization Product Focus - Low variety, High volume, High Utilization, Specialized equitment
What is a breakeven? objective is to find the point in dollars & units @ which cost equals revenue
Who focuses on minimizing cost? Manufacturing
Who focuses on maximizing profits? Service
Examples of tangible, and intangible cost include? T: Labor, taxes, depreciation (Things that are readily identifiable, and precisely measured) IT: Public facilities, community attitudes toward industry (less easily quantified)
Location decisions for SERVICE or MANUFACTURING typically attempts to focus on doing what? Clustering near their competitors, locate near their materials, and suppliers, locate near customers to increase business or lower shipping costs
What type of business is concerned with entertainment opportunities? Service
What are the key concerns when making a location decision at the "site level"? Political risk, proximity to markets, proximity to suppliers, proximity to competitors (Clustering)
What type of layout is associated with using "departments"? Process-Oriented
What are the chief concerns of an office layout, and what are not it's concerns? Focuses on flow of information, technology allows flexibility, need for space
What type of layout emphasizes placing departments, who have frequent contact, close to one another? Process Oriented Layout
What types of layout would be best for a "fancy" restaurant? Process Oriented
Low volume, High variety production would usually encourage what type of layout? Process-oriented layout
A good layout requires that you determine material handling requirements. What else does it require? *Environment & Aesthetics *Flows of Information *Capacity & Space requirements *Cost of moving between various work areas
What is the most common tactic you are trying to do with process-layout planning? *Arrange departments or work centers to minimize costs of material handling *# of loads, distance related costs of moving loads between departments
What type of layout needs flexible equipment and labor assignments? Process Oriented Layout
What is a drawback to using product layout? *work stoppage @ any point will tie-up entire operation *high volume required due to large investment to obtain process *lack of flexibility when handling variety of processes
What does the term "heuristic" mean? Rule of thumb
What are some "heuristic" rules for assigning tasks to work stations in a product layout? 1.) Longest task time 2.) Most following tasks 3.) Ranked positional weight
What type of layout has the best equipment utilization? Product-Oriented layout (also called repetitive, or continuous production)
The type of layout that can most easily improve employee morale is? Process Oriented Layout
Created by: ekmabary92
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