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Unit 3

Operations + Supply Chain Management

TermDefinition
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)
Created by: drister05
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