Op Management Final

the ability of a product or service to consistently meet or exceed customer expectations - has not always been foremost in the minds of U.S. business organizations

a dimension of quality - main characteristics of the product/service

a dimension of quality - appearance, feel ,smell, taste

a dimension of quality - extra characteristics

a dimension of quality - how well product/service conforms to customer expectations

a dimension of quality - risk of injury or harm

a dimension of quality - consistency of performance

a dimension of quality - usefule life of the product/service

a dimension of quality - reputation

a dimension of quality - complaints, repair, recall

4 determinants of quality

4 consequences of poor quality

costs incurred by defective parts/ products or faulty services

costs incurred to fix problems that are detected before the product/service is delivered to the customer

all costs incurred to fix problems that are dected after the prouct/servoce is delivered to the customer

all product and or service inspection costs

all TQM training, TQM planning, customer assessment, process control, and quality improvement costs to prevent defects from occurring

initial effors in quality management was aimed at catching defects

during the 50s and 60s quality managment efforts shifted to detecting defects

modern quality management emphasizes ________- mistakes rather than finding and correcting them

a key contributer to quality management - known for control charts; variance reduction - non random/assignable variation

a key contributer to quality management - known for 14 points; special and common causes of variation

a key contributer to quality management - known for quality is fitness for usel quality trilogy planning, control, improvement

quality trilogy?

a key contributer to quality management - known for quality is a total field, customer - quality

a key contributer to quality management - known for quality is free, zero defects

a key contributer to quality management - known for cause and effect diagrams; circles

a key contributer to quality management - known for taguchi loss fn. - cost of poor quality

annual award given by the us govt to recognize quality acheivements of us compaines - given in business and education

honors W. Edwards Deming
Japan's highly coveted award
main focus on statistical quality control

Organizational excellence
four categories of awards: award winner, prize winners, finalists, and recognized for excellence

certification is essential for companies wanting to deal with the European Union - require firms to document their quality control systems at every step 14000 pertains to the environmental performance of organizations

a philosopy that involves everyone in an organization in a continual effort to improve quality and achieve customer satisfaction - extends to suppliers as well as customers
total involvement from CEO on down

find out what the customer wants
design product or service that meets or exceeds this
design a production process that does it right the first time
keep track of results and use to guide improvements
extend concepts to suppliers & to distribution

continual improvement
competitve benchmarking
employee empowerment
team approach
decisions based on facts
knowledge of tools
supplier quality
tqm champion
quality at the source
suppliers are partners

philosophy that seeks to make never ending improvements to the process of converting inputs into outputs

4 steps to the PDSA cycle

indentify the problem
describe the current and revised process
generate ideas for improving the process
achieve consensus among team members
evaluate and monitor results

7 basic quality tools

Necessary to physicallly examine some of the goods

do existing shipments meet predetermined standards

is the process stable --> future output is it acceptable?

Where to inspect in the process

special equipment, more favorable testing atmosphere

quicker decisions, avoidance of other extraneous factors

characteristics which are present or not present - counted

characteristics which are present in varying degrees - measured

form of inspection applied to lots or batches of items before or after a process to judge conformance with predetermined standards

plans that specify lot size, sample size, number of samples, and acceptance/ rejection criteria - single sampling, double sampling, multiple sampling

one random sample is drawn from the lot nd every item in sample is examined

take a second sample if the first sameple is inconclusive

same logic as double plan except addional samples are drawn until you clearly fall into either the acceptance or rejection category

important feature of this is how well it discriminates between lots of high quality and lots of low quality

shows the probability that use of the sampling plan will result in lots with various fraction defectives being accepted

the percentage level of defects at which consumers are willing to accept lots a good

the upper limit on the percentage of defects that a consumer is willing to accept

the probability that a lot containing defectives exceeding the ltpd will be accepted

the probability that a lot containing the acceptable quality level will be rejected

periodic samples of process output are taken and evaluated

natural variations in the output of a process, created by countless minor factors. Inherent

a variation whose source can be idntified and eliminated

graphical tools to differentiate between random and non random output - centerline(avg), ucl and lcl

Control charts for means reflect the _____ ______ of a process while control charts for ranges reflect _____ _____.

control chart used to monitor t

proportion of defectives in a process

control chart used to monitor the number of defects per unit

determining whether a machine or process is capable of producing acceptable output

determining whether the inherent variability of the process output falls within the acceptable range of variability allowed by the design specifications

a process is capable if it is greater than or equal to

a sequence of observations with a certain characteristic, followed by one or more observations with a different characteristic

5 types of inventories

to meet anticipated demand
smooth production requirements
decouple components of the production distribution
protect against stock outs
take advantage of order cycles
help hedge against price increaces or take advantage of discounts
permit operations

inventory counting system
forecast of demand
knowledge of lead times and variability
estimate of inventory costs
classification system for inventory items

fundamental inventory issues

order quantity is constant but the time interval between orders can vary
inventories are monitored and when they reach a designated level, an order is placed for Q units
perpetual accounting system required

inventories are examined at fixed intervals and orders are plaved for varying amounts to bring inventories bavk up to certain predetermined levels
periodic accounting system
more succeptible to stockouts

cost to carry an item in inventory for a length of time

costs associated with ordering and reveiving intventory.

costs resulting from demand exceeding the supply on hand

a schedule of the quantity of each material required in each time period in the planning horizon - computer based system that is both an inventory and scheduling tool - material control is VITAL

improve customer service
reduce inventory investment
improve plant operating efficiency

one of three primary inputs in mrp - states which end items are to be produced when hese are needed and in what quantities.

the sume of the lead times that sequential phases of a process require from ordering of parts or raw materials to completion of final assembly

series of time intervals during which order changes are allowed or restricted

the process of determining short range capacity requirements

department or work center reports that compare known and expected future capacity requirements with projected capacity availability

one of the three primary inputs of MRP a listing of all of the raw materials, parts, subassemblies, and assemblies needed to produce one unit of a product

visual depiction of the requirements in a bill of materials where all components are listed by levels

a complete record of each material held in inveorynt

schedule indicating the amount and timing of future orders

authorization for the execution of planned orders

revisions of due dates or order quantities or cancellations of orders

performance control reports
planning reports
exception reports

low levels of in process inventories
ability to track material requirements
ability to evaluate capacity requirements
means of allocating production time

computer and necessary software
accurate and up to date master schedules, BOM, and inventory records
integrity of data

expanded MRP with an emphasis placed on integration

expanded effort to integrate standardized record keeping that will permit information sharing maong different areas of an org in order to manage the sstem more effectively

movement of goods during production and deliveries from suppliers are carefully timed so that at each step of the process the next batch arrives for processing just as the preceding batch is completed

unique one time operations designed to accomplish a specific set of objectives in a limited time frame

an effort that is required to complete a part of the project

an activity that has no room for schedule slippage; if it slips the entire project completion will slip

a beginning completion point or milestone accomplishment within the project

the amount of time that an activity or group of activities can slip without causing a delay in the completion of the project

developed in 1950s - DuPont - designed for unique complex projects with many activities where ontime completion is imperative

earliest that an activity can start from the beginning of the project

earliest that an activity can finish from the beginning of the project

latest that an activity can start from the beginning of the project without causing a delay in the completion of the project

latest that an activity can finish from the beginning of the project without causing a delay in the completion of the project

differs from CPM only in the activity time estimate -three time estimates are made( pesimistic, most likely, optimistic) make statements about path completion time

might be possible to reduce the length of a project bby injecting addition resources
if both sources of cost are available, identify the plan which will minimize the sum of the indirect and direct project costs

do not crash non critical activities
crash only critical activities
crash activities with the lowest crashing cost per unit of time
parallel critical paths must both be compressed
crash as long as the cost to crash is less than the benefit