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Unit 3
Operations + Supply Chain Management
Term | Definition |
---|---|
statistical process control (SPC) | use of statistical methods to determine when a process that produces a good or service is getting close to producing an unacceptable level of defects |
SPC tools | fishbone charts ( cause and effect diagram or Ishikawa diagram), check sheets, control chart, run chart (or flow chart), histogram (or box chart), pareto chart, scatter plot (or diagram) |
fishbone charts ( cause and effect diagram or Ishikawa diagram) | show the impact of various inputs into the result of a process |
fishbone charts ( cause and effect diagram or Ishikawa diagram) | help organizations isolate the root causes of problems such as bottlenecks in their processes |
check sheets | used to record data points in real time at the site where the data is generated |
control charts | raw data is plotted in real time |
run chart (or flow chart) | mean- average value, median- middle point value, mode- most frequent value |
histogram (or box chart) | demonstrate the frequency of data observations within a preset range of values |
pareto charts | representing data values in highest to lowest order (descending order) to visualize the most frequent occurrences |
scatter plot (or diagram) | shows the correlation between two variables; positive, negative, or no relationship at all |
check sheets | is often used first in the SPC process |
check sheets | used to create a histogram, pareto, scatter plot, etc. |
control charts | can instantly determine whether the process is stable or trending toward instability and take corrective action before variations result in nonconforming products |
pareto charts | always reflect the data in descending order to emphasize the most common occurrences among the data points |
pareto charts | determines the likely causes of quality problems |
pareto analysis | studying another organization's products or operations |
six sigma | a continuous improvement strategy that relates to the firm's ability to produce error free products. Specifically, 3.4 defects per 1 million units |
six sigma - Define | when the company or organization determines what the problem is they're trying to solve or the improvement opportunity |
six sigma - Measure | determining how the process is currently performing and describing the significance of the problem |
six sigma - Analyze | involves discovering what is causing the problem. Get into the root cause and brainstorming why the problem exists |
six sigma - Improve | determines where we're trying to go or how the process will change moving forward. The improved stage says how it will be done moving forward. |
six sigma - Control | monitor the situation to see if the problem has been solved. If it has, you go back to step one and you determine what the next problem is. If it hasn't been solved, you go back to step 1 and you try to solve the exact problem again. |
six sigma - Designed (DMADV) | new products going through six sigma has to be designed |
six sigma - Verified (DMADV) | new products going through six sigma, you monitor the situation by verifying the design and how it will be done moving forward |
six sigma - Analyze | This is when companies actually do what we call Statistical Process Control (SPC). They get a ton of data around the problem or what could actually be in the root cause of the problem, and find the best way to solve that problem |
six sigma - DMADV | The last two steps are for BRAND NEW products or systems to analyze – D and V |
six sigma - DMADV | There is no existing process to change so it has to be DESIGNED and you monitor the situation by VERIFYING the design and how it will be done moving forward. |
PLAN-DO-CHECK-ACT (PDCA) | Shewart created this wheel that embodies continuous improvement. Sometimes called the Shewart Cycle |
PLAN-DO-STUDY-ACT (PDSA) | In 1986 Deming changed the “C” for Check to “S” for Study to allow for a more thorough review. Sometimes called the Deming Wheel |
Plan (PDCA) | everything is documented and standardized and documented; identify problems or opportunities for improvement; Plan to make changes |
Do (PDCA) | implement the plan |
Check (PDCA) | analyze to determine if goals have been achieved |
Act (PDCA) | if the goals have been achieved, then standardize and document the changes. Communicate the results to others that could benefit from similar changes. If the goals have not been achieved, determine why not and proceed accordingly |
5 dimensions of quality | reliability, responsiveness, assurance, empathy, tangibles |
reliability | ability to perform the promised service dependably and accurately |
responsiveness | willingness to help customers and provide prompt service |
assurance | knowledge and courtesy of employees and their ability to convey trust and confidence |
empathy | provision of caring, individualized attention to customers |
tangibles | appearance of physical facilities, equipment, personnel, and communication materials, including access and effectiveness of Internet based information |
quality of goods | performance, features, reliability, conformance, durability, serviceability, aesthetics, perceived quality |
performance | how a product works |
features | secondary characteristics that complement the products basic workings |
reliability | the length of time a product will work before it fails or the probability it will work within a stated amount of time |
conformance | degree to which a product's design and operations match pre-established standards |
durability | the ability of a product to work when subjected to hard and everyday use |
serviceability | speed, courtesy, and competence of repair |
aesthetics | how product looks, feels, sounds, tastes, or smells |
perceived quality | image, advertising, or brand name of a product |
3 costs of quality | failure costs, appraisal costs, prevention costs |
failure costs | internal to the organization or external involving the customer (ex. Replacing up to six defective entry doors) |
appraisal costs | investment in measuring quality and assessing customer satisfaction (ex. daily inspection procedures) |
prevention costs | put a stop to the quality problem (ex. Money for a separate paint booth) (ex. When customers place product orders at BlueShoes.com, the retailer’s computer system requires customers to enter their e-mail addresses twice) |