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Op. Man. Test 2
Test 2 Operations Management IUP
| Question | Answer |
|---|---|
| JIT | Just in Time; a way of continuous problem solving to increase throughput and decrease inventory |
| TPS | emphisizes continuos improvement, respect for people, and standard work practices. |
| Lean Production | Supplying the customer with their exact wants when the customer needs it without waste. |
| Taiichi Ohno's Seven Wastes to Eliminate | Overproduction, Queues, Transportation, Inventory, Motion, Overprocessing, Defective products |
| "Push" Manufacturing | When a product is pushed through the manufacturing facility. Uses each day saying that something should be done that day, has more supervisors, and has finished goods inspection. Leads to excess inventory. |
| "Pull" Manufacturing | Pulls the product through manufacturing by the section after it. Has W.I.P. Does not use day-by-day scheduling. |
| JIT inventory tactics | use a pull system to move inventory, reduce lot sizes, develop just-in-time delivery systems with suppliers, deliver directly to point of use, perform to schedule, reduce setup time, use group technology. |
| Reduce Lot Sizes | When an average order is 200, average inventory should be 100. When the average order size is 100, the average inventory size should be 50. Two changes necessary; improve material handling and reduce setup time. |
| Reduce Setup Costs | High setup costs = large lot sizes Reducing setup costs reduces lot size and reduces average inventory Setup time can be reduced |
| The 5 S's | Sort- "when in doubt, throw it out" Simplify Shine- clean daily Standardize- remove variations Sustain- review work and recognize process |
| Two additional S's | Safety Support- reduce unplanned downtime |
| JIT Layout Tactics/ Reduce waste due to movement | Build work cells for families of products Include a large number operations in a small area Minimize distance Design little space for inventory Improve employee communication Build flexible or movable equipment Cross-train workers to add flexibility |
| Jidoka | Empowerment of employees |
| Andon | traffic light signal |
| Kaizen | Continuous improvement (good change) |
| Kanban | A container labeled with the materials that should be in it. |
| Number of Kanban Cards (equation) | K = (Demand x Lead Time + Safety Stock)/Container capacity. |
| Planning | Objectives, resources, work break-down schedule, organization |
| scheduling | project activities, start and end times, network |
| controlling | monitor, compare, revise, action |
| Planning the project | Set the goals (time and cost), define the project, develop work breakdown schedule, identify teams and resources |
| bid rigging | divulging confidential information to give some bidders an unfair advantage |
| "low balling" contractors | try to "buy" the project by bidding low and hope to renegotiate or cut corners |
| Six Steps PERT & CPM (First three) | 1. Define the project and prepare the work breakdown structure 2. Decide what order to schedule the activities in 3. Draw the network connecting all of the activities network – this is called the critical path |
| Six Steps PERT & CPM (Last three) | 4. Assign time and/or cost estimates to each activity 5. **Compute the longest time path through the network - this is called the critical path 6. Use the network to help plan, schedule, monitor, and control the project |
| Questions PERT & CPM Can Answer (1-4) | When will the project be completed? What are the critical activities or tasks in the project? Which are the noncritical activities? What is the probability the project will be completed by a specific date? |
| Questions PERT & CPM Can Answer (5-8) | Is the project on schedule? Is the money spent ok within the budget? Are there enough resources available to finish the project on time? If the project must be finished in a shorter time, what is the way to accomplish this at least cost? |
| Preforming a Critical Path Analysis: | The critical path is the longest path through the network The critical path is the shortest time in which the project can be completed Any delay in critical path activities delays the project Critical path activities have no slack time |
| Determine the Product schedule start and end time | Earliest start (ES) Earliest finish (EF) Latest start (LS) Latest finish (LF) |
| Variability in Activity Times | CPM assumes we know a fixed time estimate for each activity and there is no variability in activity times PERT uses a probability distribution for activity times to allow for variability |
| You may face these common situations... | The project is behind schedule The completion time has been moved forward |
| Project crashing | Shortening the duration of the project |
| Factors to consider when crashing a project | The amount by which an activity is crashed is, in fact, permitted Taken together, the shortened activity duration will enable us to finish the project by the due date The total cost of crashing is as small as possible |
| Advantages of PERT/CPM (1-3) | 1. Especially useful when scheduling and controlling large products 2. Straightforward concept and not mathematically complex 3. Graphical networks help highlight relationships among project activities |
| Advantages of PERT/CPM (4-5) | 4. Critical path and slack time analyses help pin point activities that need to be closely watched5. 5. Project documentation and graphics point out who is responsible for various activities |
| Advantages of PERT/CPM (6-7) | 6. Applicable to a wide variety of projects 7. Useful in monitoring not only schedules but costs as well |
| Limitations of PERT/CPM (1-3) | 1. Project activities have to be clearly defined, independent, and stable in their relationships 2. Precedence relationships must be specified and networked together 3. Time estimates tend to be subjective and are subject to fudging by managers |
| Limitations of PERT/CPM (4) | 4. There is an inherent danger of too much emphasis being placed on the longest, or critical path |
| Quality | The features of a product or service that bears on its ability to satisfy stated or implied needs |
| Two ways quality improves profitability | improved reputation, increased productivity, lower repair and scrap costs, lower warranty costs, flexible pricing, improved response |
| user-based manufacturing-based product-based | better preformance, more features making it right the first time measurable attributes of the product |
| Implications of Quality | Company reputation (perception of new products, employment practices, supplier relations) Product liability (reduce risk) Global implications (improved ability to compete |
| Key dimensions of Quality (9) David Garvin | Performance, features, reliability, conformance, durability, serviceability, appearance, perceived quality, value |
| Award that is given for great quality management skills to companies. What are companies evaluated on? | Malcom Baldrige National Quality Award Evaluated on: Leadership, strategic planning, customer and market focus, measurement management, workforce focus, process management, results |
| Costs of quality | prevention costs- reducing the potential for defects appraisal costs- evaluating products, parts, and services internal failure- producing defective parts or service before delivery external costs- defects discovered after delivery |
| 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! |
| Ethics in Quality Management | Must deliver healthy and safe products Poor quality risks injuries and recalls Organizations are judged by how they respond to problems All stakeholders must be considered |
| ISO 9000 series | Quality Standards for products sold in Europe (even if made in US) |
| ISO 14000 series | Environmental standards- environmental management auditing performance evaluation labeling life cycle assessment |
| Total Quality Management (TQM) | Commitment to drive towards excellence in all aspects of the products and services that are important to the customer |
| Deming's 14 points (1-5) | 1. create consistency of purpose 2. lead to promote change 3. build quality into the product; stop depending on inspection 4. build long-term relationships based on performance, not price 5. continuously improve product, quality, and service |
| Deming's 14 points (6-12) | 6. start training 7. emphasize leadership 8. drive out fear! 9. break down barriers between departments 10. stop lecturing workers 11. support, help, improve 12. remove barriers to pride in work |
| Deming's 14 points (13-14) | 13. institute a vigorous program of education and self-improvement 14. put everybody in the company to work on the transformation |
| Seven concepts of TQM | Continuous improvement six sigma employee empowerment benchmarking just-in-time taguchi concepts knowledge of TQM tools |
| Continuous improvement | represents continual improvement of all processes involves all operations and work centers including suppliers and customers |
| Shewhart's PDCA Model | Continuous circle 1. Plan- Identify the improvement and make a plan 2. Do- Test the plan 3. Check- Is the plan working 4. Act- Implement the plan Continuous back to 1 once you hit 4 |
| Six Sigma | A program designed to reduce defects, lower costs, and improve customer satisfaction 3.4 defects per million opportunities 99.9999999997% great |
| Six Sigma- DMAIC Approach | 1. Define critical outputs and identify gaps for improvement 2. Measure the work and collect process data 3. Analyze the data 4. Improve the process 5. Control the new process to make sure new performance in maintained |
| Employee Empowerment | Getting employees involved in product and process improvements |
| Quality circles | A group of employees who meet regularly to solve problems |
| Benchmarking | Selecting the best practices to use as a standard for performance |
| JIT's realtionship to quality | cuts the cost of quality improves quality better quality= less inventory |
| Taguchi Concepts | quality robustness quality loss function target-oriented quality |
| Service Quality | the tangible component of services is also important the service process is important the service is judged against the customer's expectations exceptions will occur |
| Determinants of Service Quality (10) | Reliability Responsiveness Competence Access Courtesy Communication Credibility Security Understanding and knowing the customer Tangibles |
| Marriott's LEARN | Listen Empathize Apologize React Notify |
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sarahbrunazzi
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