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111 Cards in this Set
- Front
- Back
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Walter Shewart |
father of statistical quality control |
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W. edwards Deming |
statistical professor in the 1940s who helped Japanese, they later mad Deming prize |
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Demin prize |
for firms that distinguish themselves with quality management programs has 14 points to reduce variation of output |
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quality design |
the intention of designers to include or exclude certain features in a product or service |
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quality of conformace |
degree to which goods and services conform to the intent of designers |
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appraisal costs |
inspection testing and other activities intended to uncover defects |
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prevention costs |
attempt to prevent defects from occuring |
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internal failures |
discovered during the production process |
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external failures |
discovered after delivery to customer |
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return on quality |
focuses on economics of quality efforts |
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Baldrige award |
annual award given by the US government to recognize quality achievements to US companies |
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Europeon quality award |
europeon award for organizational excellence |
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ISO 9000 |
a set of international standards on quality management and quality assurance, critical to international business |
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ISO 14000 |
set of international standards forr assessing a company's enviormental performance |
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ISO 24700 |
a set of international standards that pertains to quality and performance of office equiprment that contains reused compnents |
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(TQM) total quality management |
a philosophy that involves everyone in an organization in a continual effort to improve quality and achieve customer satisfaction |
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fail safing |
incorporation design that prevents incorrect use |
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continuous improvement |
philossphy that seeks to make never ending improvements to the process of converting inputs into outputs |
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kaizen |
japanese term for continuous improvement |
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quality at the source |
the philosophy of making each worker responsible for the quality of his or her work |
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plan-do-study-act (PDSA) |
a framework for problem solving and improvement activities |
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process improvement |
a systematic approach to improving a process |
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six sigma |
no more than 3.4 defects per million opportunities |
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flowchart |
vdiagram of steps in a process |
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check sheet |
tool for recording and organizing data into identify problems |
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histogram |
a chart of an empirical fequency distribution |
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parteto analysis |
technique for classifying problem areas according to degree of importance and focusing on the most important |
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scatter diagram |
a graph that shows degree and direction of relationship between two variables |
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Control chart |
a statisical chart of time ordered values of a sample statistic |
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cause and effect diagram |
used to search for the causes of a problem |
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run chart |
tool for tracking results over a period of time |
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brainstorming |
technique for generating a free flow of ideas in a group of people |
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quality circles |
groups of workers who meet to discuss ways of improving products or processes |
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benchmarking |
process of measuring performance against best in the same or another industry |
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inspection |
appraisal of goods or services |
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quality conformace |
a product or service conforms to specifications |
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statistical process control |
statistical evaluation of the output of a process |
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random variation |
natural variation in the output of a process, created by countless minor factors |
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assignable variation |
variation whose cause can be indentified a nonrandom variation |
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sampling distribution |
a theoretical distribution of sample statistics |
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central limit theorem |
the distribution of sample averages tends to be normal regardless of the shape of the process distribution |
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control chart |
a time ordered plot of sample statistics used to distinguish between random and nonrandom cariability |
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control limits |
the dividing lines between random and nonrandom variations |
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type 1 error |
concluding a process is not in control when it actually is |
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type 2 error |
concluding a process is in control when it is not |
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variables |
generate data that are measured |
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attributes |
generate data that are counted |
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mean control chart |
control chart used to monitor the central tendency of a process |
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p-chart |
control chart for attributes used to monitor the proportion of defective items in a process |
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c-chart |
control chart for attributes used to monitor the number of defects per unit |
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run test |
a test for patterns in a sequence |
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run |
sequence of observation with a certain characteristic |
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simulation models |
computer models that can be tested under different scenarios to identify acceptable solutions to problems |
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yield management |
the application of pricing strategies to allocate capacity among various categories of demand |
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master production scedule |
this schedule indicates the quantity and timing of planned completed production |
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rough cut capacity planning |
approximate balancing of capacity and demand to test the feasibility of a master sedule |
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time fences |
points in time that separate phases of a master schedule planning horizon |
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availible-to-promise inventory (ATP) |
uncommitted inventory |
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master schedule |
one og three primary inputs in MRP; states which end items are to be produced, when these are needed and in what quanitities |
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cumulative lead times |
the sum of the lead times that sequential -phases of a process require, from ordering of parts or raw materials to completion of final assembly |
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bill of materials |
one of the three primary inputs of MRP; a listing of all the raw materials, parts, assemblies and assemblies needed to produce on unit of a product |
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product structure tree |
visual depiction of the requirements in a bill of materials where all components are listed by levels |
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low level coding |
restructuring the bill of materials so that multiple occurrences of a component all coincide with the lowest level at which the component occurs |
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gross requirements |
total expected demand for an item or raw material in a time period |
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scheduled receipts |
open orders sceduled to arrive from vendors or elsewhere in the piupeline |
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projected on hand |
expected amount og inventory that will be on hand at the beginning of each time period |
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net requirements |
the actual amount needed in each time period |
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planned-order receipts |
quantity oexpected to be recieved by beggining of the period in which it is hown |
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planned order releases |
planned amount to order in each time period; planned-order receipts offset by lead time |
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pegging |
the process of identifying the parent items that have generated a given set of material requirements for an item |
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regenerative system |
approach that updates MRP records peridocially |
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net changing system |
approach that updates MRP records continuously |
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Planned orders |
a schedule indicating the amount and timing of future orders |
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order releases |
authorizating the execuution of planned orders |
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changes |
to planned orders, including revisions of due dates or order quantities and cancellations of orders |
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performance-control reports |
evaluate system operation. they aid managers by measuring deviations from plans, including missed deliveries and stockouts, and by providing information that can be used to assess cost performance |
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planning reports |
are useful in forecasting future inventory requirements. they include purchase commitments and other data that can be used to assess future material requirements |
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exception reports |
call attention to major discrepancies such as late and overdue orders, excessive scrap rates, reporting errors and requirements for nonexistent parts |
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backflushing |
exploding an end items BOM to determine the quantities of the compnents that were used to make an item |
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manufacturing resources planning |
expanded approach to production resource planning, involving other areas of a firm in the planning process and enabling capacity requirements planning |
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capacity requirement planning |
the process of determining short-range capacity requirements |
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Time fences |
series of time intevals during which order changes are allowed or restricted the nearest fence is most restrictive to change the farthest is least restrictive |
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load reports |
department or work center reports that compare known expected future capacity requirements with projected capcity requirement with projected capacity availibility |
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distrobution |
a method for planning orders in a supply chain |
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enterprise resource planning |
integration of financial manufacturing and human resources in a single database |
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littles law |
the average amount of inventory in a system is equal to the product of the average demand rate and the average time a unit is in the system |
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inventory turnover |
ratio of annual cost of goods sold to average inventory investment |
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periodic system |
physical count of item in inventory made at periodic intervals |
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perpetual system |
physical count of items in inventory made at periodic intervals |
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two bin system |
two containers of inventory reorder when the first is empty |
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universal product code (UPC) |
bar code printed on a label that has information about the item which is attached |
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point of sale pystem |
record items at time of sale |
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lead time |
time interval between ordering and receiving time |
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purchase cost |
the amount paid to buy the inventory |
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holding (carrying) cost |
cost to carry an item in inventory for a length of time, usually a year |
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ordering cost |
costs of ordering and recieving inventory |
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setup costs |
the costs involved in preparing equipment for a job |
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shortage costs |
costs resulting when demand exceeds the suply of inventory; often unrealized profit per unit |
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A-B-C approach |
classify inventory according to some measure of importance and allocating control efforts accordingly |
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cycle counting |
a physical count of itekms in inventory |
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cycle stock |
the amount of inventory needed to meet expected demand |
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safety stock |
extra inventory carried to reduce the probability of a stock out due to demand and or lead time variability |
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economic order quantity |
the order size that minimizes total annual cost |
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reorder point |
when the quantity on hand of an item drops to this amount the item is reordered |
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safety stock |
stock that is held in excess of expected demand due to variable demand or lead time |
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service level |
probability that demand will not exceed supply during lead time |
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fill rate rate |
the percentage of demand filled by the stock on hand |
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fixed order interval model |
orders are placed at fixed time intervals |
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single period model |
model for ordering perishables and other items with limited useful lives |
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shortage cost |
generally the unrealized profit per unit |
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excess cost |
difference between purchase cost and salvage value of items left over at the end of a period |
