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SCM 405 - Exam #2
| Question | Answer |
|---|---|
| The driving forces for product and service design or redesign are market opportunities or threats | Economic Social and Demographic Political, Liability, or Legal Competitive Cost or Availability Technological |
| Manufacturability | the capability of an organization to produce an item at an acceptable profit |
| Serviceability | the capability of an organization to provide a service at an acceptable cost or profit |
| Product liability | The responsibility a manufacturer has for any injuries or damages caused by as faulty product |
| concomitant costs | Litigation Legal and insurance costs Settlement costs Costly product recalls Reputation effects |
| Uniform Commercial Code | Under the UCC, products carry an implication of merchantability and fitness |
| Normative Behavior | Produce designs that are consistent with the goals of the organization, give customers the value that they expect, Make health and safety a concern |
| Sustainability | Using resources in ways that do not harm ecological systems that support human existence |
| Life Cycle Assessment (LCA) | The assessment of the environmental impact of a product or service throughout its useful life |
| LCA Focus Factors | Global warming Smog formation Oxygen depletion Solid waste generation |
| Value analysis | Examination of the function of parts and materials in an effort to reduce the cost and/or improve the performance of a product |
| Remanufacturing | Refurbishing used products by replacing worn-out or defective components |
| Design for disassembly (DFD) | Designing a product to that used products can be easily taken apart |
| Design for recycling (DFR) | Product design that takes into account the ability to disassemble a used product to recover the recyclable parts |
| Standardization | Extent to which there is an absence of variety in a product, service, or process |
| Advantages of Standardization | Fewer parts to deal with in inventory & mftcg,less training costs More routine purchasing, Orders fillable from inventory, Allows for long production runs and automation, justifies increased expenditures on perfecting designs and improving quality |
| Disadvantages of Standardization | Designs may be frozen with too many imperfections remaining. High cost of design changes increases resistance to improvements Decreased variety results in less consumer appeal. |
| Mass customization | A strategy of producing basically standardized goods or services, but incorporating some degree of customization in the final product or service Facilitating Techniques Delayed differentiation Modular design |
| Delayed Differentiation | The process of producing, but not quite completing, a product or service until customer preferences are known |
| Modular Design | A form of standardization in which component parts are grouped into modules that are easily replaced or interchanged |
| Robust design | A design that results in products or services that can function over a broad range of conditions |
| Phases in Design & Development | Idea generation Feasibility analysis Product specifications Process specifications Prototype development Design review Market test Product introduction Follow-up evaluation |
| Idea Generation | Supply-chain based Competitor based Research based |
| Concurrent engineering | Bringing engineering design and manufacturing personnel together early in the design phase |
| Kano Model | Describes 3 levels of quality: Basic, performance, and excitement |
| Basic quality | Refers to customer requirements that have only limited effect on customer satisfaction if present, but lead to dissatisfaction if absent |
| Performance quality | Refers to customer requirements that generate satisfaction or dissatisfaction in proportion to their level of functionality and appeal |
| Excitement quality | Refers to a feature or attribute that was unexpected by the customer and causes excitement |
| Service Design | Begins with a choice of service strategy, which determines the nature and focus of the service, and the target market. Key issues in service design: Degree of variation in service requirements Degree of customer contact and involvement |
| Capacity | The upper limit or ceiling on the load that an operating unit can handle Capacity needs include Equipment Space Employee skills |
| Strategic Capacity Planning | Goal is to achieve a match between the long-term supply capabilities of an organization and the predicted level of long-run demand |
| Design capacity | maximum output rate or service capacity an operation, process, or facility is designed for |
| Effective capacity | Design capacity minus allowances such as personal time, maintenance, and scrap |
| Actual output | rate of output actually achieved--cannot exceed effective capacity. |
| Efficiency (Formula) | actual output / effective capacity |
| Utilization (Formula) | Actual output / design capacity |
| Leading | Build capacity in anticipation of future demand increases |
| Following | Build capacity when demand exceeds current capacity |
| Tracking | Similar to the following strategy, but adds capacity in relatively small increments to keep pace with increasing demand |
| Capacity Cushion | Extra capacity used to offset demand uncertainty |
| Economies of Scale | If output rate is less than the optimal level, increasing the output rate results in decreasing average per unit costs |
| Diseconomies of Scale | If the output rate is more than the optimal level, increasing the output rate results in increasing average per unit costs |
| Constraint | Something that limits the performance of a process or system in achieving its goals |
| Cost-volume analysis | Focuses on the relationship between cost, revenue, and volume of output |
| Break-even point (BEP) | The volume of output at which total cost and total revenue are equal |
| Cash flow | The difference between cash received from sales and other sources, and cash outflow for labor, material, overhead, and taxes |
| Present value | The sum, in current value, of all future cash flow of an investment proposal |
| Quality Assurance | Reactive, Emphasis is on finding and correcting defects before they reach the market |
| Strategic Approach to Quality | Proactive, Focuses on preventing mistakes from occurring, Greater emphasis on customer satisfaction |
| The Consequences of Poor Quality | Loss of business Liability Productivity Costs |
| Failure Costs | costs incurred by defective parts/products or faulty services. |
| Appraisal Costs | Costs of activities designed to ensure quality or uncover defects |
| Prevention Costs | All TQ training, TQ planning, customer assessment, process control, and quality improvement costs to prevent defects from occurring |
| Substandard work | Defective products Substandard service Poor designs Shoddy workmanship Substandard parts and materials |
| Total Quality Management | A philosophy that involves everyone in an organization in a continual effort to improve quality and achieve customer satisfaction. |
| Continuous Improvement | Philosophy that seeks to make never-ending improvements to the process of converting inputs into outputs |
| Six Sigma | A business process for improving quality, reducing costs, and increasing customer satisfaction |
| Lean Six Sigma | A balanced approach to process improvement that integrates principles from lean operation and statistical tools for variation reduction from six sigma to achieve speed and quality |
| PDSA Cycle | Plan, Do, Study Act |
| PDSA: Plan | Begin by studying and documenting the current process. Collect data on the process or problem Analyze the data and develop a plan for improvement Specify measures for evaluating the plan |
| PDSA: Do | Implement the plan, document any changes made, collect data for analysis |
| PDSA: Study | Evaluate the data collection during the do phase Check results against goals formulated during the plan phase |
| PDSA: Act | If the results are successful, standardize the new method and communicate it to the relevant personnel Implement training for the new method If unsuccessful, revise the plan and repeat the process |
| Process Improvement | A systematic approach to improving a process |
| Quality Circle | Groups of workers who meet to discuss ways of improving products or processes |
| Benchmarking Process | Identify a critical process that needs improving Identify an organization that excels in this process Contact that organization Analyze the data Improve the critical process |
| Coefficient of Variation | Standard deviation of a process time / mean of a process time |
| Squared Coefficient of variation | standard deviation of a process time squared / mean of a process time squared |
| Availability | mean time to failure / (mean time to failure + mean time to repair) |
| Queuing Measures | CT = CTq + te WIP = ra x CT (arrival rate x expected waiting time in queue) WIPq = ra x CTq |
| ra CT CTq WIP WIPq | Arrival Rate Process Time Process Queue Time Work In Progress in a process Work in Progress in the queue |
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jmm5149