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135 Cards in this Set
- Front
- Back
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List the types of graphical charts used in operations management. |
Flowcharts check sheets histograms pareto diagram cause and effect diagram scatter diagram run charts control charts |
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Which charts are important in statistical process control (SPC)? |
Control charts control limits mean and control chart, p chart c chart |
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Describe the uses of functional flowcharts. |
A flowchart is a problemsolving tool, which can help investigators in identifying possible points in a process where problems occur. It identifies the sequence of activities or the flow of materials and information in a process. |
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Describe the uses of histograms. |
Histograms help you get a sense of the distribution of observed values. They can help you see if the distribution is symmetrical, what the range of values is, and if there are any unusual values. |
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Describe the uses of run charts. |
A run chart can be used to track the values of a variable over time. This helps when identifying trends or patterns that may be occurring. |
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Describe the uses of control charts. |
Control charts are used to monitor a process to see if process output is random. They can also indicate when a problem occurred and give insight into what caused the problem. |
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What are the methods for developing a quality management system? |
Deming Cycle – Plan, Do, Study, Act (PDSA) 2) Six sigma quality management approach which is DMAIC (define, measure, analyze, implement, control) 3) TQM 1. Find out what customers want. 2. Design a product or service that will meet it. 3. Design processes that facilitate doing the job right the first time. 4. Keep track of results and use them to guide improvements. 5. Extend these concepts throughout the supply chain |
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TQM |
1. Find out what customers want. 2. Design a product or service that will meet it. 3. Design processes that facilitate doing the job right the first time. 4. Keep track of results and use them to guide improvements. 5. Extend these concepts throughout the supply chain |
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Describe the problems management faces when implementing quality and incorporating improvements into daily operations. |
Some issues management could face would be: lack of a strategic plan for change, lack of customer focus, lack of employee empowerment, lack of strong motivation, inordinate presence of internal politics, quality can be seen as a “quick fix,” poor intraoffice communication. |
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Identify procedures that lead to process improvement. |
Focus on the processes, recognize internal customers, involve and educate employees, reduce hierarchy, use steering committees, and be open to adjustments. |
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How do you evaluate processes to determine if process variation is acceptable or unacceptable? |
Are the variations random? Nonrandom variations can be seen as unstable, and corrective action may need to be taken. When the outcome is stable, you would want to determine if the output is within a range that meets the performance criteria. To do this you would need to assess the process’s capability to meet standards, if that cannot be done corrective action may need to be taken. |
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What are some of the costs associated with quality? |
Appraisal costs- costs of activities designed to ensure quality or uncover defects Prevention costs- costs of preventing defects from occurring Failure costs- costs caused by defective parts or products or by faulty services |
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Appraisal costs |
costs of activities designed to ensure quality or uncover defects |
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Prevention costs |
costs of preventing defects from occurring |
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Failure costs |
costs caused by defective parts or products or by faulty services |
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What is the point at which costs associated with improvement are no longer warranted?
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When the cost of improving the product exceeds your profit you would not want to continue to improve the product. |
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What are some of the costs of customer dissatisfaction? |
Some costs of dissatisfied customers can be returned goods, warranty costs, liability costs, the reputation of the store or product could be damaged. They could lose the future business of the customer. |
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List some of the losses resulting from process variation. |
Variation can result in additional cost, delay and shortages, poor quality, and inefficient work systems. Poor quality and product shortages or service delays can lead to dissatisfied customers and damage an organizations reputation. |
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Describe the role of the International Organization for Standards (ISO). |
ISO provides standards and guidelines that enable organizations to meet &/or exceed their customers’ requirements for quality products and services. It can help you improve your organizations quality management system. |
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Describe the practices employed by the International Organization for Standards (ISO). |
Onsite audits, quality document review, and recertification. |
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List the steps to receive quality certification through the International Organization for Standards (ISO). |
1. Get top management commitment 2. Train personnel 3. Prepare quality policy manual 4. Prepare operating procedures 5. Hold internal audit 6. Select registrar 7. Go through registration process 8. Obtain ISO 9000 registration |
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List the key elements of total quality management (TQM). |
Continuous improvement Involvement of everyone Customer satisfaction |
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What are some of the appropriate goals of process improvement teams? |
Some goals of process improvement include increasing customer satisfaction, achieving higher quality, reducing waste, reducing costs, increasing productivity, and reducing processing time. |
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Describe the responsibilities that rest with team members. |
Some responsibilities of team members are for group problem solving. You get groups synergy, you get people involved. Teams also promote a spirit of cooperation and shared values among employees. |
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Team champion |
team sponsor and manager responsible for project success, ensures team communicates and works well together, assigns team members and provides necessary and correct training, looks over project documents and approves them |
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Team coach |
more involved than champion on a daytoday basis, provides suggestions, support, advice on DMAIC, and advises on interpersonal issues |
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Team leader |
most involved with team members, helps choose those team members and who works where, ensures work gets done, sets agendas for meetings and encourages meeting participation and minutes are taken |
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Team members |
they are the most knowledgeable because they do the job, they share knowledge, have open minds to solve problems, participate in DMAIC, shares progress |
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Team champion |
monitors and supports the team |
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Team coach |
provides advice and support |
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Team leader |
works with team on daytoday basis, has experience with the process |
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Team members |
perform DMAIC process – Define problem, Measure defects, Analyze data, Improve process, Control process |
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ISO 9000 Standards Structure |
21 elements organized into 4 sections: -Management responsibility -Resource management -Product realization -Measurement, analysis, & improvement |
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DMAIC |
Define- critical outputs & identify gaps for improvement Measure- the work & collect process data Analyze- the data Improve- the process Control- the new process to make sure performance is maintained |
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Quality dimensions in service |
-time -timeliness -completeness -courtesy -consistency -assesibility & convienience |
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Describe the basic steps in problem solving. |
Step 1 – Define the problem and establish an improvement goal. Thoughtful care and specific detailed description is important as this will serve as the focal point of problem-solving efforts. Step 2 – Develop performance measures and collect data. This data MUST be factual as the decision MUST be based on facts. Possible tools include check sheet, scatter diagram, histogram, run chart, and control chart. Step 3 – Analyze the problem. Give thorough analysis, use Pareto chart, and cause and effect diagram to help. Step 4 – Generate potential solutions. Step out of the box, brainstorm, interview, survey, etc... Step 5 – Choose a solution. Identify the criteria for choosing a solution (refer to the goal established in step 1); apply criteria to potential solutions and select the best one. Step 6 – Implement the solution. Keep everyone informed. Step 7 – Monitor the solution to see if it accomplished the goal; if not modify the solution or return to step 1. Useful tools include control chart and run chart. |
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Describe the challenges associated with implementing a solution to a problem. |
1. The problem was inaccurately identified: the underlying problem was something other than what it first appeared, the problem was not as acute as initially believed, or the police agency or the community was not as concerned about the problem as first thought. 2. The problem was insufficiently or inadequately analyzed: the real contributing or causal factors were not discovered, or insufficient or inadequate evidence was mounted to persuade others to take interest in the problem. 3. The responses developed from the problem analysis were improperly or insufficiently implemented, or not implemented at all. 4. The problem was properly identified and analyzed, and responses were implemented, but the responses did not have the desired effect. |
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Describe the guidelines for communicating solutions to employees affected by the solution. |
Clarifying who has the decision making authority. • Updated description of the mission, vision, and goals of the unit. Ensure that these are in alignment with those of the larger organization. • Timeframe and implementation plan for changing business processes, organizational roles and the organization structure if needed. • Before and after flow charts to help clarify the transition of business processes. • A new organization chart. • Job descriptions for the new positions, classified by Compensation. • Plan for filling positions in the new structure. Options include lateral reassignments as well as full recruitments for all new positions. Managers are strongly encouraged to consult with both Labor & Employee Relations and Recruitment experts regarding filling positions. Large scale restructuring may involve recruiting for all new positions and Recruitment can assist with skill assessments and developing a recruitment plan. |
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Describe criteria and guidelines for evaluating problem responses. |
Define the problem, define the solution, implement the solution, define alternatives, measure effectiveness of solution, continuously improve. |
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Inspirers |
nurture people and relationships and have the ability to inspire confidence |
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Reflectors |
take their time, mull things over and reflect |
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Innovators |
come up with creative solutions to problems |
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Influencers |
good at getting others to support their cause |
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What are some of the skills required to be an effective problem solver? |
They are good communicators, tenacious, have the ability to observe and listen, pay attention to detail, trust their instincts; they are adaptable, take action and get along with others. |
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Describe conditions that encourage creative thinking. |
Encourage freeflow of ideas Fair and constructive judgment of ideas Rewards and recognition for creative work Sufficient financial material freedom to decide what work is to be done and how to do it a supervisor who communicates effectively, shows confidence in others and supports the work group work group members who support and trust each other . |
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Describe the uses, advantages, and criteria for team decision-making. |
Advantages: • Greater pool of knowledge- A group a lot more knowledge and experience to a group • Different perspectives- Individuals with varied experiences & interests help members see decision situations and problems from different angles. • Greater comprehension- Those who tend to experience the give & take of group discussion about alternative courses of action tend to understand the rationale behind the final decision. • Increased acceptance- Those who play an active role in group decision making & problem solving tend to view the outcome as “ours” • Training ground- Less experienced participants in group action learn how to cope with group dynamics by being involved. |
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Describe the uses, disadvantages, and criteria for team decision-making. |
Disadvantages: • Social pressure- Unwilling to “rock the boat” & pressure to conform may combine to stifle the creativity of individual contributors. • Domination by a vocal few- Sometimes the quality of a group action is reduced when the group gives in to those who talk the loudest & longest. • Logrolling- Political wheeling and dealing can displace sound thinking when an individual’s pet project or vested interest is at stake. • Goal displacement- Sometimes secondary considerations such as winning an argument, making a point, or getting back at a rival displace the primary task of making a sound decision or solving a problem. • Groupthink- Sometimes cohesive in-groups let the desire for unanimity override sound judgment when generating and evaluation alternative courses of action. |
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Describe the ways power, authority, responsibility, and accountability influence decision making. |
All of these things can be used in either a positive or negative way. If you are using them in a positive way and working well with a team then chances are you will make a good decision. On the other hand if you are taking advantage of these factors and are using them negatively then chances are you will make a poor decision. |
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List some of the major decision-making styles. |
Directive- Task and technical oriented • Analytical- Are characterized by a tendency to over-analyze a situation • Conceptual- Tend to focus on people or social aspects of a work situation • Behavioral- The most people oriented of all four styles |
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Directive |
Task and technical oriented |
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Analytical |
characterized by a tendency to over-analyze a situation |
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Conceptual |
Tend to focus on people or social aspects of a work situation |
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Behavioral |
The most people oriented of all four styles |
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List the four steps in the rational model of decision making.
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1. Identifying the problem 2. Generating alternative solutions 3. Selecting a solution 4. Implementing and evaluating the solution |
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Brainstorming |
process to generate a quantity of ideas |
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Nominal group technique |
process to generate ideas and evaluate solutions (Individuals silently generate ideas in writing, and then everyone offers up one solution. They are all discussed, and then voted upon.) |
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Delphi technique |
process to generate ideas from physically dispersed experts (questionnaire sent to participants and returned to the manager. The manager sums up the responses and sends feedback to the participants.) |
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List some of the decision-making biases and barriers to effective decision making or problem solving.
Availability |
Availability- the tendency of basing decisions on information that is readily available in memory. This barrier causes people to overestimate the occurrence of unlikely events such as a plane crash or school shooting. |
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List some of the decision-making biases and barriers to effective decision making or problem solving.
Representativeness |
Representativeness- Used when people estimate the probability of an event occurring. It reflects the tendency to assess the likelihood of an event occurring based on one’s impressions about similar occurrences. |
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List some of the decision-making biases and barriers to effective decision making or problem solving.
Confirmation bias |
Confirmation bias- The first component is to subconsciously decide something before investigating why it is the right decision. The second component is to seek information that supports our point of view and to discount information that does not. |
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List some of the decision-making biases and barriers to effective decision making or problem solving.
Anchoring bias |
Anchoring bias- Occurs when decision makers are influenced by the first information received about a decision, even if it is irrelevant. |
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List some of the decision-making biases and barriers to effective decision making or problem solving.
Overconfidence bias |
Overconfidence bias- Relates to our tendency to be overconfident about estimates or forecasts. This bias is strong when moderate to difficult questions rather than easy ones asked. |
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List some of the decision-making biases and barriers to effective decision making or problem solving.
Hindsight bias |
Hindsight bias- Occurs when knowledge of an outcome influences our belief about the probability that we could have predicted the outcome earlier |
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List some of the decision-making biases and barriers to effective decision making or problem solving.
Framing bias |
Framing bias- is a tendency to consider risks about gains- saving lives- differently than risks pertaining to losses- losing lives. |
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List some of the decision-making biases and barriers to effective decision making or problem solving.
Escalation of commitment bias
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Escalation of commitment bias- Refers to the tendency to stick to an ineffective course of action when it is unlikely that the bad situation can be reversed. |
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Describe what an organization can do to avoid discouraging productive creativity and to provide a workplace environment that will help increase creativity. |
Match jobs to individuals’ creative abilities. Tolerate failures and establish direction. Improve motivation. Improve communication so that ideas can be shared. Place highly creative people in special jobs. |
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Socialized Power |
Used to create motivation and accomplish group goals, is unselfish. |
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Personalized Power |
used for personal gain, is selfish. |
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Reward Power |
Obtaining compliance with promised or actual rewards |
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Coercive Power |
Obtaining compliance through threatened or actual punishment |
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Legitimate Power |
Obtaining compliance through formal authority |
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Expert Power |
Obtaining compliance through one’s knowledge or information |
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Referent Power |
Obtaining compliance through charisma or personal attraction |
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Describe the phases in the auditing process. |
1. Plan- Decide what it is you are going to look for 2. Organize- how you’re going to do it 3. Preliminary phase- this is where you begin to start to do it 4. Conducting phase- this is where you do it 5. Summarize phase- the final report of audit is complete |
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Given the results of an audit, list the appropriate follow-up actions. |
Once your audit is complete and you have the necessary information you need to decide what action needs to be taken. If changes are needed you would need to contract that supplier with the changes you would like them to make. |
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Describe the factors that should be covered by a supplier audit.
Financial |
-Return on assets • Cost • Cash flow • profits |
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Describe the factors that should be covered by a supplier audit.
Inventory
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• average value • turn over • weeks of supply |
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Describe the factors that should be covered by a supplier audit.
Suppliers |
• Quantity • On time delivery • Cooperation • Flexibility |
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Describe the factors that should be covered by a supplier audit.
Order Fulfillment |
- order accuracy • time to fill orders • Percentage of incomplete orders shipped • Percentage of orders delivered on time |
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Describe the factors that should be covered by a supplier audit.
Operations |
• Productivity • quality |
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Describe the factors that should be covered by a supplier audit.
Customers |
- customer satisfaction • percentage of customer complaints |
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Describe the purpose of aggregate planning. |
Aggregate planning is a planning and organizational method that helps you creates a production plan that will utilize the company’s resources and match unexpected demand in a fluctuating market. Aggregate planning usually covers anywhere from 2-12 months’ time |
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What is the expected output from aggregate planning? |
Expected outputs can be from: total cost of a plan or projected levels of: inventory, output, employment, subcontracting, and backordering |
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Identify the variables that must be considered when developing the aggregate plan. |
Production Rate Changes Equipment Rental Backorders Temporary Employees Overtime |
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Describe strategies for developing aggregate plans that bridge strategic planning and short-
Proactive |
Proactive- they attempt to alter demand so that it matches capacity |
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Describe strategies for developing aggregate plans that bridge strategic planning and short-
Reactive |
Reactive- they attempt to alter capacity so that it matches demand |
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Describe strategies for developing aggregate plans that bridge strategic planning and short-
Mixed |
Mixed- they have an element of each in it. |
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List some of the issues related to managing different types of inventory within an organization. |
Risks can relate to supply (e.g., supplier failure, quality issues, sustainability issues, transportation issues, terrorism), costs (e.g., increasing commodity costs), and demand (e.g., decreasing demand, demand volatility, and transportation issues). Still other risks can involve intellectual rights issues, contract compliance issues, competitive pressure, forecasting errors, and inventory management. |
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Describe approaches used to match supply and demand. |
The goal is to synchronize supply and demand. Having Manufacturing Resource Planning (MRP) and Distribution resource planning (DRP), allowed for changes in the system and rescheduling occur. |
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List some of the issues that influence the scheduling function. |
run size of jobs the timing of jobs sequence in which jobs should be processed. |
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Reevaluation of outsourcing. |
when considering outsourcing you would want to consider other costs and issues that were previously unaccounted for. Some of these costs include transportation costs, inventory costs, port handling, and duty costs. You also lose flexibility due to long lead times. |
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Risk Management |
businesses are doing more risk management partly due to all of the recent recalls. They have added more risk management by implementing procedures to reduce risk. |
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Inventory Management |
management are starting to realize how important it is to keep track of inventory. |
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Lean Supply |
many businesses are applying lean principles to the supply chains. Doing this eliminates non-value-added processes, imporves product flow by using pull systems rather than push systems, using fewer suppliers. |
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Sustainability |
companies are starting to consider how pollution and other environmental factors may affect us in the future. Companies are becoming more green. |
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List some of the factors involved in choosing a supplier. |
1. Base purchasing decisions on quality as well as cost 2. Reduce the number of suppliers 3. Establish long-term contracts 4. Measure and certify supplier performance 5. Develop cooperative relationships and strategic alliances |
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Describe the requirements for effective inventory management. |
1. A system to keep track of the inventory on hand and on order 2. A reliable forecast of demand that includes an indication of possible forecast error. 3. Knowledge of lead times and lead time variability 4. Reasonable estimates of inventory holding cost, ordering costs, and shortage costs. 5. A classification system for inventory items. |
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Explain the key concepts for determining how much inventory to order |
In order to determine when and how much inventory to order you need to know how much inventory you have on hand. You also need to know the turnover time of the products that may need re-ordering. You can also use the fixed-order-interval(FOI) model when ordering inventory ths way orders are placed at fixed time intervals. |
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What is the Economic Order Quantity (EOQ) model? |
It is used to find a fixed order quantily that will minimize total annual inventory costs. There are 6 assumptions: 1. Only one product is involved 2. Annual demand requirements are known 3. Demand is even throughout the year 4. Lead time does not vary 5. Each order is received in a single delivery 6. There are no quantity discounts |
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Chase Approach |
capacities are adjusted to match demand requirements over the planning horizon. Advantages: • investment in inventory is low • labor utilization is kept high Disadvantages: • the cost of adjusting output rates and/or workforce levels |
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Level Approach |
capacities are kept constant over the planning horizon Advantages: • stable output rates and workforce levels Disadvantages: • greater inventory costs • increased overtime and idle time • resource utilization that vary over time |
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Describe the demand options and the supply options that can be applied to aggregate planning. |
1. Pricing- Some companies change the price of their products or service more desirable. 2. Promotion- advertising, displays, and other marketing can be used to bring in more sales if done at the correct time. 3. Back Orders- Some companies shift demand to other periods by allowing back orders. This only works if the customer is willing to wait for the wanted product. 4. New Demand- Some businesses are changing aspects of their business to bring in new demand for its product or services in an otherwise slow time. |
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material requirements planning (MRP). |
is a computer based system that translates the finished product requirements of the master schedule into time phased requirements. The MRP works backwards from the due date to determine how much and when to order. |
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Inventory Management |
this is a very important management activity. A well-run organization has been able to have a well-executed inventory management system. In order to manage your inventory you keep track of inventory transactions, accurate information, demand, and lead times, as well as realistic estimates of certain inventory related costs and a priority system for classifying the inventory items. |
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Explain the three major sources of information input into an MRP system |
- The Master Schedule • Bill of Materials (BOM) • Inventory Records |
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The Master Schedule |
states which end items are to be produced, when these are needed, and in what quantities. Needs to cover: --- Cumulative lead time- the sum of the lead times that sequential phases of a process require, from ordering parts or raw materials, to completion of final assembly.
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Bill of Materials (BOM) |
a listing of all the raw materials, parts, subassemblies, and assemblies needed to produce one unit of a product. Is clear when you consider: -- Product Structure tree- a visual depiction of the requirements in a bill of
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Inventory Records |
includes information on the status of each item by period. materials, where all components are listed by levels. |
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ERP |
ERP- is an extension of MRP. This is a way of keeping records so information can be shared so an organization can manage the system more effectively. |
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Net requirements= |
gross requirements-(projected receipts + scheduled receipts) |
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List the seven categories of constraints that can limit the performance of a process or system. |
1. Market: insufficient demand 2. Resource: too little of one or more resources 3. Materials: too little of one or more materials 4. Financial: insufficient funds 5. Supplier: unreliable, long lead time, substandard quality 6. Knowledge or competence: missing knowledge or skills 7. Policy: laws or regulations interfere |
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List the key metrics and the main tools that are utilized when employing project management. |
Time, Cost, Performance objectives • Work Breakdown Structure- A planning tool that is used to breakdown a list of activities, sequences and a budget. • Network Diagram-visual aid used to project in project duration, identify activities that are critical for timely completion, develop activity schedules. • Risk Management- analysis of potential failures or problems, assessment of consequences |
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Work Breakdown Structure |
A planning tool that is used to breakdown a list of activities, sequences and a budget. |
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Network Diagram |
visual aid used to project in project duration, identify activities that are critical for timely completion, develop activity schedules. |
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Risk Management
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analysis of potential failures or problems, assessment of consequences |
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Describe issues that impact facility location and design. |
Site selection tends to focus more on accessibility, consumer demographics, traffic patterns, and local customs. You will also need to think about where your raw materials will come from. You will need to consider where your suppliers are located and if you are near their markets. |
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List the steps for selecting a production site. |
Stage 1: establishment of project organization Stage 2: project definition Stage 3: definition of regional scope Stage 4: regional screening Stage 5: longlisting Stage 6: shortlisting Stage 7: site visits Stage 8: selection of preferred site options Stage 9: definition of preferred site Stage 10: decision |
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Geographical information system |
it is a computer based tool for collecting, storing, retrieving, and displaying demographic data on maps. |
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Center of gravity method |
is a method for locating a distribution center that minimizes distribution costs. |
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Location cost-profit-volume analysis |
technique for evaluating location choices in economic terms. |
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Factor rating |
General approach to evaluating locations that include quantitative and qualitative inputs |
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The Transportation Model |
it is a special-purpose algorithm used to determine the minimum transportation cost that would result if a new location was added to the system |
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Explain some of the issues to consider when developing a layout appropriate for an organization’s operations. |
Concerns in choosing among alternative layouts include initial costs in setting up the layout, expected operating costs, the amount of effective capacity created, and the ease of modifying the system. |
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List the three primary questions that bear on process selection. |
1. How much variety in products or services will the system need to handle? 2. What degree of equipment flexibility will be needed? 3. What is the expected volume of output? |
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Describe what is meant by "Sustainable Production Processes" and identify goals of such processes. |
Sustainable production is the creation of goods and services using processes and systems that are: non-polluting; conserving of energy and natural resources; economical efficient, safe and healthful for workers, communities, and consumers. |
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Describe the tools used for capacity planning. |
Wait-line analysis- this is helpful in helping managers choose a capacity level that will remain cost effective, while still trying to avoid bottleneck operations that tend to form long lines. |
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Quantitative Aspects
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o Surveys/Questionnaires o Pre/Post Tests o Existing Databases o Statistical Analysis |
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Qualitative Aspects
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o Observations o Interviews o Focus Groups o Non-statistical |
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PERT (Program evaluation and review technique) |
this is for planning and coordinating large projects. |
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CPM (Critical path method) |
this is planning and coordinating large projects |
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Describe the tools used in project management.
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-PERT (Program evaluation and review technique) -CPM (Critical path method) |
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8 Quality Management Principles |
1. customer focus 2. leadership 3. involvement of people 4. process approach 5. system approach to management 6. continual improvement 7. factual approach to decision making 8. beneficial supplier relationships |
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Process Orientation |
a process is a sequence of activities that is intended to achieve some result |
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The Deming Cycle |
continous improvement Plan, Do, Study, Act |
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Determinates of quality |
-design -conformance to design -ease of use -after-sale service |
