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Exam 2 OM(b)
Chap 6, 6s, 13
| Question | Answer |
|---|---|
| ___:an inspection that classifies items as being either good or defective | Attribute inspection: |
| ___:selecting a demonstrated standard of performance that represents the very best performance for a process or an activity | Benchmarking: |
| ___:a systematic technique used to discover possible locations of quality problems | Cause-and-effect diagram, Ishikawa diagram, or fish-bone chart: |
| ___:graphic presentations of process data over time, with predetermined control limits | Control charts: |
| ___:the cost of doing things wrong—that is, the price of nonconformance | Cost of quality (COQ): |
| ___:enlarging employee jobs so that the added responsibility and authority is moved to the lowest level possible in the organization | Employee empowerment: |
| ___:block diagrams that graphically describe a process or system | Flowcharts: |
| ___:a means of ensuring that an operation is producing at the quality levels expected | Inspection: |
| ___:an environmental management standard established by the International Organization for Standardization (ISO) | ISO 14000: |
| ___:a set of quality standards developed by the International Organization for Standardization (ISO) | ISO 9000: |
| ___:graphics that identify the few critical items as opposed to many less important ones | Pareto chart: |
| ___:a continuous improvement model of plan, do, check, act | PDCA: |
| ___:literally translated, ”foolproof”; it has come to mean a device or technique that ensures the production of a good unit every time | Poka-yoke |
| ___:the ability of a product or service to meet customer needs | Quality: |
| ___:a group of employees meeting regularly with a facilitator to solve work-related problems in their work area | Quality circle: |
| ___:a mathematical function that identifies all costs connected with poor quality and shows how these costs increase as product quality moves from what the customer wants. Traditional conformance specifications are too simplistic. | Quality loss function (QLF): Shows that costs increase as product moves away from what customer wants. Costs include customer dissatisfaction, warranty and service, internal scrap and repair, and costs to society. |
| ___:products that are consistently built to meet customer needs in spite of adverse conditions in the production process | Quality robust: Ability to produce products uniformly in adverse manufacturing and environmental conditions.Remove the effects of adverse conditions.Small variations in materials and process do not destroy product quality. |
| ___:training and empowering frontline workers to solve a problem immediately | Service recovery: |
| ___:a program to save time, improve quality, and lower costs | Six Sigma: |
| ___:controlling or monitoring at the point of production or purchase—at the source | Source inspection: |
| ___:a process used to monitor standards, make measurements and take corrective actions as a product or service is being produced | Statistical process control (SPC): |
| ___:a philosophy of continuous improvement to bring the product exactly on target | Target-oriented quality: |
| ___:management of an entire organization so that it excels in all aspects of products and services that are important to the customer | Total quality management (TQM): |
| ___:classification of inspected items as falling on a continuum scale, such as dimension, size, or strength | Variable inspection: |
| International QUALITY Standards: ISO 9000 1. Establishes quality management procedures through leadership, detailed documentation, work instructions, and recordkeeping | 2. Focus on standards not actual quality of product 3. Upgraded in 2008 and includes more emphasis on top management leadership and customer satisfaction |
| Environmental management standards: ISO 14000 | a. Environmental management b. Auditing c. Performance evaluation d. Labeling e. Life cycle assessment |
| ISO 14001 | Addresses environmental impacts of activities systematically |
| ISO 24700 | a. Reuse of recovered components from products b. Qualify as “good as new” c. Meet all safety and environmental criteria |
| Total Quality Management – emphasis on quality throughout the entire organization | Continuous Improvement: 1. Never ending process 2. Every aspect of an operation can be improved – Goal is perfection, which is never achieved 3. Plan-Do-Check-Act |
| Six Sigma | 1. Managerial concept related to statistical process control 2. Includes strategy, discipline, and measurement 3. Set of tools to measure and control |
| Employee Empowerment:Added responsibility and authority moved to the lowest level possible in the organization. a. These people understand the operations | b. Usually problem not the direct worker c. Build comm networks that include employees d. Develop supportive supervisors e. Move responsibility from both managers and staff to employees f. Build high-morale orgs g. Create teams/quality circles |
| Typical ___ measurements are defects, costs, processing time, service response time, return on investment, customer satisfaction, and customer retention | Benchmarking |
| Taguchi Concepts: 1. Quality robust so consistent production can occur in adverse manufacturing conditions 2. Remove effects of adverse conditions – less expensive than removing causes -Variations in materials or process do not destroy quality | 3. Quality loss function spots costs of poor quality/models the problems of performing below target 4.Loss = (Square of dist from target value)(cost of dev from limit) 5. focus on reaching target-not falling with a 3 SD control limit 6)improvement |
| 7 tools of TQM | IDEAS:1)Check Sheets 2)Scatter Diagrams 3)Cause & Effect Diagrams ORGANIZE DATA:4)Pareto Charts 5)Flowcharts IDENTIFY PROBLEMS: 6)Histograms 7)Statistical Process Control (SPC) |
| TQM in Services | A. Difficult to measure because of intangibility of the service B. Quality is often a bundle of attributes. C. Focus on reliability and courtesy during the process. expectations. D. Work on service recovery strategies when something goes wrong |
| ___:the quality level of a lot considered good | Acceptable quality level (AQL): |
| ___:a method of measuring random samples of lots or batches of products against predetermined standards | Acceptance sampling: |
| ___:variation in the production process that can be traced to a specific cause | Assignable variation: |
| ___:the percent defective in an average lot of goods inspected through acceptance sampling | Average outgoing quality (AOQ): AOQ=((Pd)(Pa)(N - n))/N |
| ___:a quality control chart used to control the number of defects per unit of output | c-chart |
| ___:the theoretical foundation for Xbar-charts, which states that regardless of the distribution of the population of all parts or services, the distribution of xbar(s) will tend to follow a normal curve as the number of samples increases | Central limit theorem: |
| ___:a quality control chart for variables that indicates when changes occur in the central tendency of a production process | xbar-chart |
| ___:the mistake of having a customer's acceptance of a bad lot overlooked through sampling | Consumer’s risk: |
| ___:a graphical presentation of process data over time | Control chart: |
| ___:a ratio for determining whether a process meets design specifications; a ratio of the specifications to the natural tolerance | Cp |
| ___:a proportion of natural variation (3σ) between the center of the process and the nearest specification limit | Cpk |
| ___:the quality level of a lot considered bad | Lot tolerance percent defective (LTPD): |
| ___:variability that affects every production process to some degree and is to be expected; also known as common cause | Natural variations: |
| ___:a graph that describes how well an acceptance plan discriminates between good and bad plots | Operating characteristic (OC) curve: |
| ___:a quality control chart that is used to control attributes | p-chart |
| ___:the ability to meet design specifications | Process capability: |
| ___:the mistake of having a producer’s good lot rejected through sampling | Producer’s risk: |
| ___:a control chart that tracks the range within a sample; it indicates that a gain or loss in uniformity has occurred in dispersion of a production process | R−chart |
| ___:a test used to examine the points in a control chart to see if nonrandom variation is present | Run test: |
| ___:a process used to monitor standards by taking measurements and corrective action as a product or service is being produced | Statistical process control (SPC): |
| ___:statistically, the probability of rejecting a good lot | Type I error: |
| ___:statistically, the probability of accepting a bad lot | Type II error: |
| An operations manager’s objective is to build a ___ system that identifies and satisfies ___. | total quality management, customer needs |
| Two Ways Quality Improves Profitability (Improved quality, and Increased profits) | 1)Sales Gains via: Improved response Flexible pricing Improved reputation 2)Reduced Costs via: Increased productivity Lower rework and scrap costs Lower warranty costs |
| Defining Quality | The totality of features and characteristics of a product or service that bears on its ability to satisfy stated or implied needs |
| Implications of Quality | 1)Company reputation- Perception of new products Employment practices Supplier relations 2)Product liability- Reduce risk 3)Global implications-Improved ability to compete |
| 9 Key Dimensions of Quality | Performance Features Reliability Conformance Durability Serviceability Aesthetics Perceived quality Value |
| Malcolm Baldrige (National Quality Award): Established in 1988 by the U.S. government.Designed to promote TQM practices. | Applicants are evaluated on: Categories Points Leadership 120 Strategic Planning 85 Customer & Market Focus 85 Measurement, Analysis, and Knowledge Management 90 Workforce Focus 85 Process Management 85 Results Total: 450 |
| 4 COSTS OF QUALITY: ___- reducing the potential for defects ___ - evaluating products, parts, and services ___ - producing defective parts or service before delivery ___ - defects discovered after delivery | Prevention costs(LESS),Appraisal costs(LESS), Internal failure(MORE), External costs(MORE) |
| 4 Leaders in Quality: | W. Edwards Deming- 14 Points for Management Joseph M. Juran- Top management commitment, fitness for use Armand Feigenbaum- Total Quality Control Philip B. Crosby- Quality is Free, zero defects |
| Deming’s Fourteen Points (1-4) | 1)Create consistency of purpose 2)Lead to promote change 3)Build quality into the product; stop depending on inspections 4)Build long-term relationships based on performance instead of awarding business on price |
| Deming’s Fourteen Points (5-11) | 5) Continuously improve product, quality, and service 6)Start training 7)Emphasize leadership 8)Drive out fear 9)Break down barriers between departments 10)Stop haranguing workers 11) Support, help, and improve |
| Deming’s Fourteen Points (12-14) | 12)Remove barriers to pride in work 13)Institute education and self-improvement 14)Put everyone to work on the transformation |
| Seven Concepts of TQM | Continuous improvement Six Sigma Employee empowerment Benchmarking Just-in-time (JIT) Taguchi concepts Knowledge of TQM tools |
| Shewhart’s PDCA 4 step Model | 1)Plan- Identify the pattern and make a plan 2)Do- Test the plan 3)Check-Is the plan working? 4)Act- Implement the plan document |
| 2 meanings of Six Sigma | 1)Statistical definition of a process that is 99.9997% capable, 3.4 defects per million opportunities (DPMO) 2)A program designed to reduce defects, lower costs, and improve customer satisfaction |
| 6 Sigma DMAIC | DEFINE critical outputs and identify gaps for improvement MEASURE the work and collect process data ANALYZE the data IMPROVE the process CONTROL the new process to make sure new performance is maintained |
| 5 Best Practices for Resolving Customer Complaints: 1)Make it easy for clients to complain-It is free market research | 2)Respond quickly to complaints- adds customers/loyalty 3)Resolve complaints on first contact-reduces cost 4)Use computers to manage complaints- see trends, align your services 5)Recruit the best for customer service jobs-part of formal training |
| JIT relationship to quality: | JIT cuts the cost of quality. JIT improves quality. Better quality means less inventory and better, easier-to-employ JIT system. |
| 4 key steps of Statistical Process Control (SPC) | Measure the process When a change is indicated, find the assignable cause Eliminate or incorporate the cause Restart the revised process |
| When and Where to Inspect (1-3 of 7) | 1)At the supplier’s plant while the supplier is producing 2)At your facility upon receipt of goods from the supplier 3)Before costly or irreversible processes |
| When and Where to Inspect 4-7 | 4)During the step-by-step production process 5)When production or service is complete 6)Before delivery to your customer 7)At the point of customer contact |
| Variables (vs attributes) | Characteristics that can take any real value. May be in whole or in fractional numbers. Continuous random variables. |
| Attributes (vs variables) | Defect-related characteristics. Classify products as either good or bad or count defects. Categorical or discrete random variables. |
| Xbar formula (variable control chart) Xbar is the average | Upper control limit (UCL) = xdblebar + (z) sigmax |
| For xcharts (variable control chart)we dont know sigma we use Range. Rbar chart formula: (range is highest minus lowest. Rbar is the average of those #s | Upper control limit (UCL) = x + (A2)(Rbar) Lower control limit (LCL) = x - (A2)(Rbar) |
| R-chart (variable control chart). Shows diff in range of largest and smallest. Formula: | Upper control limit (UCLR) = (D4)(Rbar) Lower control limit (LCLR) = (D3)(Rbar) |
| P-chart (attribute chart)- % or rate defective | UCLp = Pbar + (Z)(sigmaP) LCLp = Pbar - (Z)(sigmaP) SigmaP = (Pbar(1-Pbar))/ n -then ^.5 |
| C-chart (attribute chart)- # of defects | UCLc = Cbar + (3)(Cbar^.5) LCLc = Cbar - (3)(Cbar^.5) |
| Process Capacity Ratio aka Cp A capable process must be at least Cp and/or Cpk of 1.0 | ratio is Cp= (U-L)/(6)(Sd) index is Cpk= min of either U-Xbar/3Sigma or Xbar-L/3Sigma prof thinks index is a better measure than ratio. |
| ___:an approach to determine the quantity and timing of production for the intermediate future (usually 3 to 18 months ahead) | Aggregate planning (or aggregate scheduling): |
| ___:a planning strategy that sets production equal to forecasted demand | Chase strategy: |
| ___:the process of breaking an aggregate plan into greater detail | Disaggregation: |
| ___:aggregate planning techniques that work with a few variables at a time to allow planners to compare projected demand with existing capacity | Graphical technique: |
| ___:maintaining a constant output rate, production rate, or workforce level over the planning horizon | Level scheduling: |
| ___:a formal planning model built around a manager’s experience and performance | Management coefficients model: |
| ___:a timetable that specifies what is to be made and when | Master production schedule: |
| ___:a planning strategy that uses two or more controllable variables to set a feasible production plan | Mixed strategy: |
| ___:plans that match production to changes in demand | Scheduling decisions: |
| ___:a way of solving for the optimal solution to an aggregate planning problem | Transportation method of linear programming: |
| ___:capacity decisions that determine the allocation of resources to maximize profit or yield | Yield (or revenue) management: |
| Info required to do aggregate planning (4) | 1. A unit to measure sales and output 2. A forecast of demand over the intermediate term 3. Method to determine costs 4. A model that combines forecasts and costs to make scheduling decisions |
| The objective of ___ is to meet forecasted demand while minimizing cost over the planning period | aggregate planning |
| 5 Aggregate Planning Strategies | 1)Use inventories to absorb changes in demand 2)Accommodate changes by varying workforce size 3)Use part-timers, overtime, or idle time to absorb changes 4)Use subcontractors & maintain a stable workforce 5)Change prices/other factors to influence dem |
| the 4 Ms of cause and effect diagrams are | material, machinery/equipment, manpower, methods |
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