OPM Sheet

And continuous improvement statistical process

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Unformatted text preview: ect M anagement Triangle – Cost/Time Schedule/Performance Objectives. Six Sigma – comprehensive and flexible approach for achieving, sustaining, and m aximizing business success by m inimizing defects and variability in process. Define, m easure, analyze, improve, control – having no more than 2.4 defects per m illion opportunities. Reduce spread, center process. Driven by close understanding of customer needs. Support process  ­ provides vital resources and inputs to the core processes and is essential to m anagement of business. Strategy Formation – core competencies, environmental scanning(SWOT). Total quality m anagement – stresses customer satisfaction(conformance to specifications, value, fitness for use, support, psychological impressions), employee involvement – cultural change,quality at the source, teams, employee empowerment, quality circles, special purpose teams, self ­m anaged team. and continuous improvement – statistical process control m ethods, plan ­do ­study ­act cycle ­ deming w heel. in performance. Utilization – amount of production capability a company is using at a given time, displayed as percentage. Capacity utilization levels give insight into the overall slack in the economy or a firm at a given time. If company runs at 70% capacity utilization, has room to increase production up to 100% utilization w ithout incurring additional costs of building a new plan t or facility.Type I error – occurs w hen conclusion is m ade that process is out of control based on sample results that falls outside control lmiites, w hen in fact it w as due to pure randomness. Type II  ­ occurs w hen conclusion is that the process is in control and only randomness is present, w hen process...
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