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138 Cards in this Set
- Front
- Back
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Completeness
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Garvins dimensions of quality for a manufactured good include all of the following except
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Quality of conformance
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A producer would most likely view quality as
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Scatter diagram
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Shows the relationship between two variables in a process
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Fitness for use
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How well a product does what it is supposed to do
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Feigenbaum
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Proposed the concept of total quality control (TQC)
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Appraisal costs
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Include inspection, testing, equipment and operator costs
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Cost of quality
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Crosby was best known for his ideas on:
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Malcolm Baldrige Award
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A top quality award in the U.S.
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Production Rate
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Does not improve quality productivity ratio
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"Black Belt" in Six Sigma
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A full time position as a project leader
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DPMO
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Defects per million opportunities
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Six Sigma
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Align, mobilize, accelerate and govern deal
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Aesthetics
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Is not the ease and speed of getting repairs and the competence of the repair person
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Total quality management
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The quality standard is not "minimal defects"
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Quality management (QMS)
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A quality system that complements other company system functions
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Five percent customer retention
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Increase in profits by 80 to 100 percent
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An example of Quality improvement
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Participative problem solving
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Six sigma thinking
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Does not only apply to supply chain to suppliers
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A Pareto Chart shows:
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Large numbers of quality defects are attributed to small numbers of poor quality
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Service Defects
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Easy to measure, intangible outputs
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The goal of Total Quality Management
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Cost of achieving good quality equal to the cost
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Total cost of poor quality
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Internal and external failure costs
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Iso 9000
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Impacts all global economies
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Continuous production
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Very high volume of a commodity product
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Process flow chart
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Traces the path of a product though a production process
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Flexible manufacturing system (FMS)
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Produces a wide variety of parts
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Process strategies define:
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Process flexibility, vertical integration and capital intensity
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Process innovation embraces:
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Breakthrough improvement
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Financial analysis of technology includes
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Purchase costs, annual savings, and replacement analysis
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Computer aided process planning (CAPP)
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Is not classified as a product technology
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Product data management (PDM)
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Is not classified as a process technology
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CAD/CAM
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Is not classified as a manufacturing technology
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E-procurement
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Is not classified as an information technology
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Continuous Production
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Used for producing very high volumes of commodity products
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Batch Production
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Used for producing a high variety of products in low to medium volumes
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Project production
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Used for producing a unique product
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Process planning
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Determines how a product will be produced or a service produced
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Capital budgeting techniques
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Used to evaluate technology decisions
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Assembly Chart
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A schematic diagram of a product that shows the relationship of component parts to parent assemblies
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Breakeven point
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Total Revenue = Total Cost
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Process planning
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Converts designs into workable instructions for manufacture or delivery
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Outsourcing
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A complex decision for more firms
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Breakeven analysis
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A quantitative technique utilized for process analysis
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Flowcharts
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Used to analyze the efficiency of a process and to identify opportunities for improvement
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Innovation
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Total redesign of a process for breakthrough improvement
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Process analysis
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Drives continuous improvement
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Kaizen
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Also means continuous improvement
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Total productive maintenance (TPM) combines
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Total quality and preventive maintenance
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Lean production improves quality by:
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Allowing workers to stop production if defects are detected
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Pull production
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Invented from american supermarket patterns
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Converting internal to external setups
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Reduces setup time
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Poka-yoke
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A quality at the source approach based on fool proofing operations
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Lean production encourages:
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Fewer workers, less inventory, and less space
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Detailed production schedules
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Is not a basic element of lean production
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Cellular manufacturing
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Grouping dissimilar machines together to manufacture a family of parts
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Signal kanban
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Used to indicate the need to start production at the previous workstation
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Internal setup activities
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Performed only when a process is stopped
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Final assembly line
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Uniform production levels are maintained in a lean production system
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Element of lean production
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Target the elimination of waste
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Lean production does not include
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Zero lot production
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Poka-yoke
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Visual control device that prevents defects from occurring
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Examples of flexible resources
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Multifunctional workers and general purpose machines
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Mass production
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Preferred method for high volume repetitive items
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Lean concepts
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Popular in health care
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Value stream mapping (VSM)
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Analyzing process flow and identifies opportunities to eliminate waste
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Procurement
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Purchase of goods and services from suppliers
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Continuous replenishment
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Supplying orders in a short period of time according to a pre-determined schedule
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E-procurement
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Business to business commerce
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E-marketplaces
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Provide a neutral internet site where companies can find new business partners
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Reverse auction
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Companies post orders on the internet for suppliers to bid on
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Logistics
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Transportation and distribution of goods and services
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Order fulfillment
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Ensuring on time delivery of an order
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Distribution Centers
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Used to receive, handle, store, package and then ship products
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Postponement
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Moves final manufacturing steps like assembly or product customization into a distribution center
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Warehouse management system
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Automated system that runs the day to day operations of a distribution center
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Trucking
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Main mode of feright transportation in the United States
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Global supply chain management obstacles are:
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Increased documentation, regulations, limited shipping modes
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Landed cost
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Total cost of producing, storing and transporting a product to the site of consumption or another port
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Value added tax
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Assessed on the increase value of a good at any stage of the production process
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Cross enterprise teams
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Coordinate processes between a customer and its supplier
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Outsourcing
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Is not a short term tactical decision made by a supplier for its customer
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Over the internet, companies purchase
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Indirect products
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Postponement
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Does not consolidate inventory into one location so that demand can be met more quickly
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Internet transportation exchanges
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Bring together shippers that post loads and carriers that post their available capacity
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Due to its differences in organization, relationships and technology, China has been proven a challenge in regards to:
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Sourcing
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Impact of the internet on distribution:
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More frequent orders in smaller amounts
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High material handling cost
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Not a characteristic of product layouts
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Block diagram
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Primarily used in determining location of machine centers within a process layout
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Cellular layout
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Groups machines into small assembly lines that produce families of parts
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In a process layout
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Work stations are arranged according to the general function they perform
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Cycle times are:
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Daily operating time divided by desired production, how often items roll off the assembly line and the maximum allowable time at each work station
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Minimizing material handling costs
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A common goal in designing process layouts
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Mixed model assembly lines
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Are U-shaped
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Capacity lag strategy
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Increases capacity in response to an increase in demand
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Cycle time
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The maximum amount of time a product is allowed to stay at each work station
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Balance delay
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Total idle time of a product layout
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Hybrid layouts
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Combine elements of both process and product layouts
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Best operating level
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The capacity at which economies of scale equals diseconomies of scale
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Relationship diagramming
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Utilizes subjective inputs
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Most supermarkets
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Do not use a free flow layout
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Service layouts should be
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attractive, functional and customer friendly
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Cellular layouts
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Provide flexibility without sacrificing efficiencies
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Buffer Inventories provide
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Independence between stages in a production process
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Quantity discount model
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Minimize the sum of annual ordering, carrying and purchase costs
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Availability of quantity discounts result in
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Order quantities larger than the economic order quantity
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Quantity discounts
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Sometimes are available for ordering larger quantities
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Periodic inventory systems
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Always require safety stock
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Inventory management
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Always change as a result of advances in information technology
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ABC classification system
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Is not an example of a continuous inventory system
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Dependant demand items
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Used to produce final products
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Holding cost
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Cost of holding an item in inventory
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High customer service levels requires
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Sufficient inventory levels for all items
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Safety stock
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Used to minimize the probability of a stockout
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To calculate safety stock you need:
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Demand rate, lead time, and service level
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ABC classification system
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A small percentage of items accounts for most of the inventory value
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Economic order quantity (EDQ)
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Determines the oder size that minimizes total inventory cost
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Periodic inventory system
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The time between orders is constant
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Economic order quantity assumes
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All costs are known and constant
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Reorder point is expressed as
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Units for the basic economic order quantity model
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Final products
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Include independent demand
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Three basic costs of inventory management
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Carrying costs, ordering costs and shortage costs
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Continuous inventory system
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Constant quantity is ordered when inventory declines to a predetermined level
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Most inventory items are classified as
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Class C items
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Supply chain
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Includes delivering, sourcing and producing
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Sourcing
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The selection of suppliers
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Bullwhip effect
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Cause by inaccurate demand forecasts
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Inventory level
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Is nopt a key performance indicator for measuring supply chain performance
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All of these are used in supply chain management
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Inventory turnover, days of supply, fill rate
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Fill rate
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A fraction of orders filled by a distribution center or warehouser
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Members of a downstream portion of a supply chain
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combining inventory from multiple locations, reducing parts and product variability and creating flexible capacity to satisfy demand
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Bar codes
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Have had a great impact on supply chain management
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Key elements in achieving supply chain integration
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Information sharing, collaborative planning and workflow coordination
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Flow upstream and downstream in supply chain
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Information, goods and services
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Bullwhip effect
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Is not managed by firms unless they increase inventory levels
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Supply chains include
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delivering, sourcing and producing
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Supply chain management includes
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inventory turnover, days of supply and fill rate
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Factories
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Are not part of the downstream portion of a supply chain
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To reduce uncertainty via risk pooling
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combine inventory from multiple locations, reduce parts and product variability and create flexible capacity to satisfy demand
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