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  1. Quality
    The ability of a product or service to consistently meet or exceed customer expectations
  2. Quality of Design
    Intention of designers to include or exclude features in a product or service
  3. Quality of conformance
    The degree to which goods or services conform to the intent of the designers
  4. Ease-of-use
    Increase the likelihood that a product will be used for its intended purpose and in such a way that it will continue to function properly and safely
  5. After-the-sale service
    taking care of issues and problems that arise after the sale
  6. Appraisal costs
    costs of activities designed to ensure quality or uncover defects
  7. prevention costs
    all TQ training, TQ planning, customer assessment, process control, and quality improvement costs to prevent defects from occuring
  8. Failure costs
    costs incurred by defective parts/products or faulty services
  9. Internal failure costs
    costs incurred to fix problems that are detected before the product is delivered to the customer
  10. External failure costs
    all costs incurred to fix problems that are detected after the product is delivered to the customer
  11. Total quality management
    A philosophy that involves everyone in an organization in a continual effort to improve quality and achieve customer satisfaction
  12. TQM Approach
    • 1. Find out what the customer wants
    • 2. Design a product that meets or exceeds their wants
    • 3. Design processes that facilitate doing the job right the first time
    • 4. keep track of results
    • 5. Extend these concepts throughout the supply chain
  13. PDSA Cycle
  14. Quality Circle
    groups of workers who meet to discuss ways of improving products
  15. Supply chain
    the sequence of organizations - their functions, facilities, and activities - that are involved in producing and delivering a product or service (value chains)
  16. Facilities
    • the sequence of the supply chain begins with basic suppliers and extends all the way to the final customer
    • - warehouses
    • - factories
    • - processing centers
    • - distribution centers
    • - retail outlets
    • - offices
  17. Functions and activities of supply chain
    • - forecasting
    • - purchasing
    • - inventory management
    • - information management 
    • - scheduling
    • - customer service
  18. Supply chain management
    the strategic coordination of business functions within a business organization and throughout its supply chain for the purpose of integrating supply and demand management
  19. Key SCM issues
    the goal of SCM is to match supply to demand as effectively and efficiently as possible

    • - determine appropriate levels of outsourcing
    • - managing suppliers
    • - managing customer relationships
    • - managing risk
  20. Procurement
    The purchasing department is responsible for obtaining the materials, parts, and supplies and services needed to produce a product
  21. The goal of procurement
    develop and implement purchasing plans for products and services that support operations strategies
  22. E-Business
    the use of electronic technology to facilitate business transactions
  23. Supplier management
    • -choosing suppliers
    • - supplier audits
    • - supplier certification
  24. The bullwhip effect
    variations in demand cause inventory fluctuations to fluctuate and get out of control
  25. Logistics
    refers to the movement of materials, services, cash, and information in a supply chain
  26. Strategic sourcing
    analyzing the procurement process to lower costs by reducing waste and non-value-added activities, increase profits, reduce risks, and improve supplier performance
  27. Process selection
    refers to deciding on the way production of goods will be organized
  28. Technology innovation
    the discovery and development of new or improved products, services, or processes for producing or providing them
  29. layout
    the configuration of departments, work centers, and equipment, with particular emphasis on movement of work (customers or materials) through the system
  30. Product layout
    layout that uses standardized processing operations to achieve smooth, rapid, high-volume flow
  31. Process layout
    layouts that can handle varied processing requirements
  32. fixed position layout
    layout in which the product or project remains stationary, and workers, materials, and equipment are moved as needed
  33. service layout
    can be categorized as product, process, or fixed position
  34. Line balancing
    = the process of assigning tasks to a workstation in such a way that the workstations have approximately equal time requirements
  35. Goal of line balancing
    obtain task grouping that represent approximately equal time requirements since this minimizes idle time along the line and results in a high utilization of equipment and labor
  36. Why is line balancing important?
    • 1. It allows us to use labor and equipment more efficiently 
    • 2. To avoid fairness issues that arise when one workstation must work harder than another
  37. Job enlargement
    giving a worker a larger portion of the total task by horizontal loading
  38. Job rotation
    workers periodically exchange jobs
  39. Job Enrichment
    increasing responsibility for planning and coordination tasks, by vertical loading
  40. Standard time
    the amount of time it should take a qualified worker to complete a specified task, working at a sustainable rate, using given methods, tools and equipment, raw material inputs, and workplace arrangement
  41. Stopwatch Time Study
    - used to develop a time standard based on observations of one worker taken over a number of cycles

    • 1. Define the task to be studied 
    • 2. Determine # of cycles to observe
    • 3. Time the job, and rate the worker's performance
    • 4. Compute the standard time
  42. Work Sampling
    A technique for estimating the proportion of time that a worker or machine spends on various activities and the idle time

    -does not require timing an activity or involve continuous observation of the activity
  43. Location decisions are based on:
    • - profit potential or cost and customer service
    • - finding a number of acceptable locations from which to choose
    • - position in the supply chain
  44. Location Cost-Profit-Volume Analysis
    • - technique for evaluating location choices in economic terms
    • 1. Determine the fixed and variable costs for each alternative
    • 2. Plot the total-cost lines for all alternatives on the same graph
    • 3. Determine the location that will have the lowest total cost for the expected level of output
  45. Factor rating
    general approach to evaluating locations that includes quantitative and qualitative inputs
  46. Center of Gravity method
    -treats distribution costs as a linear function of the distance and the quantity shipped
  47. Quality Control
    - a process that evaluates output relative to a standard and takes corrective action when output doesn't meet standards
  48. Inspection
    An appraisal activity that compares goods or services to a standard
  49. Quality of conformance
    a product or service conforms to specifications
  50. Control Chart
    a time ordered plot of representative sample statistics obtained from an ongoing process, used to distinguish between random and nonrandom variability
  51. Variables generate data that are
  52. attributes generate data that are
  53. p-Chart
    control chart used to monitor the proportion of defectives in a process
  54. c-Chart
    control chart used to monitor the number of defects per unit
  55. Process Capability
    Once a process has been determined to be stable, it is necessary to determine if the process is capable of producing output that is within an acceptable range
  56. Tolerances or specifications
    range of acceptable values established by engineering design or customer requirements
  57. Process variability
    natural or inherent variability in a process
  58. Process Capability
    The inherent variability of process output (process width) relative to the variation allowed by the design specification
  59. Linear Programming
    A powerful quantitative tool used by operations and other manages to obtain optimal solutions to problems that involve restrictions or limitations
  60. Model formation
    • 1. list and define the decision variables
    • 2. State the objective function
    • 3. List the constraints
    • 4. Non-negativity constraints
  61. Project
    a nonrepetitive set of activities directed toward a unique goal within a limited time frame.
  62. Product or service profiling
    linking key product or service requirements to process capabilities
  63. Production line
    standardized layout arranged according to a fixed sequence of production tasks
  64. Assembly line
    standardized layout arranged according to a fixed sequence of assembly tasks
  65. Cycle time
    the maximum time allowed at each workstation to complete its set of tasks on a unit
  66. Output rate =
    operating time per day / cycle time
  67. Cycle time =
    operating time / desired output rate
  68. Balance delay
    percentage of idle time of a line
  69. Percentage of idle time =
    idle time per cycle / (actual # of ws x Cycle time)
  70. Efficiency =
    100% - percent of idle time
  71. Time based system
    compensation based on time an employee has worked during a pay period
  72. Out-put based system
    compensation based on amount of output an employee produced during a pay period
  73. Ergonomics
    incorporation of human factors in the design of the workplace
  74. Therblings
    basic elemental motion that make up a job
  75. Stopwatch time study

    Observed time
    OT= Sum of recorded times / number of observations
  76. Normal Time
    NT= Observed time x Performance rating
  77. Standard time =
    ST = NT x AF 

    AF is allowance factor - all possible delays in workplace
  78. AF job time
    AF= 1 + A (allowance percentage based on job time)
  79. AF work day
    AF= 1 / (1-A)
  80. Location decision steps
    • 1. decide on the criteria to use for evaluating location alternatives
    • 2. identify important factors, such as location of markets or raw materials
    • 3. develop location alternatives
    • 4. Evaluate the alternatives and make a decision
  81. clustering
    similar types of businesses locate near each other
  82. Product Quality: Performance
    main characteristics of the product
  83. Product Quality: Aesthetics
    appearance, feel, smell, taste
  84. Product Quality: conformance
    how well a product corresponds to design specifications
  85. Product Quality: Perceived quality
    indirect evaluation of quality
  86. Product Quality: serviceability
    handling of complaints or repairs
  87. Deming Prize
    prize established by the Japanese and awarded annually to firms that distinguish themselves with quality management programs
  88. Baldrige Award
    given to recognize quality achievements of US companies
  89. Fail-safing
    incorporating design elements that prevent incorrect procedures
  90. Kaizen
    Japanese term for continuous improvement
  91. Six Sigma
    a business process for improving quality, reducing costs, and increasing customer satisfaction
  92. Type I Error
    Concluding a process is not in control when it actually is
  93. Type II Error
    concluding a process is in control when it is not
  94. run
    sequence of observations with a certain characteristic
  95. specifications
    a range of acceptable values established by engineering design or customer requirements
  96. process variability
    natural or inherent variability in a process
  97. Process capability
    the inherent variability of process output relative to the variation allowed by the design specification
  98. gatekeeping
    screening returned goods to prevent incorrect acceptance of goods
  99. RFID
    a technology that uses radio waves to identify objects, such as goods in supply chains
  100. avoidance
    finding ways to minimize the number of items that are returned
  101. closed-loop supply chain
    a manufacturer controls both the forward and reverse shipment of product
  102. cross-docking
    a technique whereby goods arriving at a warehouse from a supplier are unloaded from the supplier's truck and loaded onto outbound trucks, thereby avoiding warehouse storage
  103. Delayed differentiation
    production of standard components and subassemblies, which are held until late in the process to add differentiating features
  104. Disintermediation
    reducing one or more steps in a supply chain by cutting out one or more intermediaries
  105. Enumeration approach
    substituting the coordinates of each corner point into the objective function to determine which corner point is optimal
  106. binding constraint
    a constraint that forms the optimal corner point of the feasible solution space
  107. Surplus
    When the values of decision variables are substituted into a > constraint the amount by which the left side exceeds the right-hand-side value.
  108. Slack
    when the values of decision variables are substituted into a < constraint the amount by which the left side is less than the right side value
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