Supply chain management Flashcards

Terms Definitions
What is quality?
a) the characterisics of a product or service that bear on its ability to satisfy stated or implied needs. Or B) a product or service free of deficiencies.
What is valve perspective?
a quality perspective that holds that quality must be judged, in part, by how well the characteristics of a particular product or service align with the needs of a specific user.
What are eight qualities used to evaluate a service?
performance, features, reliability, durability, conformance, aesthetics, serviceability, and percieved quality.
What is a conformance perspective?
a quality perspective that focuses on whether or not a product was made or a service was performed as intended.
What must an organization do in order to provide high quality products or services
1.) understand what dimensions of quality are most important to users.2.) develop products or services that will meet the users requirements3.) put in place business processes capable of meeting the specifications driven by the users' requirements.4) verify that the business processes are indeed meeting the specifications.
what are internal failure costs?
costs caused by defects that occur prior to delivery to the customer, including money spent on repairing or reworking defective products, as well as time wasted on these activities.
What are external failure costs?
costs incurred by defects that are not detected until a product or service reaches the customer.
what are appraisal costs?
costs a company incurs to assess its quality levels.
what are prevention costs?
the costs an organization incurs to actually prevent defects from occurring to begin with.
What is the total cost of quality curve?
a curve that suggests there is some optimal quality level, Q. the curve is calculated by adding costs of internal and external failures, prevention costs, and appraisal costs.
what do each of the curves look like?
total cost of quality- upsidedown bellprevention costs- exponential negative slope.internal failure costs- exponential positive slopeappraisal costs - straight line.
to fully address both the value and the conformance perspectives on quality, organizations must...
1.) understand what dimensions of quality are most important to users.2.) develop products and services that will meet the users' requirements.3.) put in place business processes capable of meeting the specifications driven by the user's requirements.4.) verify that the business processes are indeed meeting the specifications.
What is total quality management?
a managerial approach in which the entire organization is managed so that it excels in all quality dimensions that are important to customers.
what seven core principles is TQM based around.
1) customer focus2.) leadership involvement3.) continuous improvement4.) employee empowerment5.) quality assurance6.) supplier partnerships7.) strategic quality plan
What is continuous improvement?
a principle of TQM that assumes there will always be room for improvement, no matter how well an organization is doing.
What is employee empowerment?
giving employees the responsibility, authority, training, and tools necessary to manage quality.
What is quality assurance?
the specific actions firms take to ensure that their products, services, and processes meet the quality requirements of their customers
what is quality function developement?
a technique used to translate customer requirements into technical requirements for each stage of product developement and production.
What is statistical quality control?
the application of statistical techniques to quality control
What is a strategic quality plan?
An organizational plan that provides the vision, guidance, and measurements to drive the quality effort forward and shift the organization's course when necessary.
What is the process owner?
a team or induvidual who has the authority and responsibility for improving the organization's business processes and who is awarded accordingly.
What are the main differences between tqm and six sigma?
1.) tqm is a managerial approach in which the entire organization is managed so that it excels in all quality dimensions that are important to customers.2.) SSM methodology builds upon TQM.3.) SSM includes specific processes such as DMAIC, DMADV4.) SSM defines specific organizational roles and career paths5.) SSM has an expanded tool kit that includes computer simulation, optimization model, etc.6.) TQM encapsulates the managerial vision behind quality management; SSM builds upon this to provide organizations with the processes, people, and tools required to carry out this vision.
What is the process capability ratio?
A mathematical determination of a process's capability to meet certain quality standards. A Cp > or equal to 1 means the process is capable of meeting the standard being measured.
What is the upper tolerance limit?
The highest acceptable value for some measure of interest.
What is the lower tolerance limit
the lowest acceptable value for some measure of interest.
What is the process capability index?
A mathematical determination of a process's capability of meeting certain tolerance limits.
What is the six sigma quality?
A term used generally to indicate that a process is well controlled, i.e., tolerance limits are + or - 6 sigma, standard deviations from the centerline in a control chart. the term is usually associated with motorola, which named ne of its key operational initiative six sigma quality.
What is a control chart
A specialized run chart that helps an organization track changes in key measures over time.
What is a continuous variable?
A variable that can be measured along a continuous scale, such as weight, length, height, and tempoerature.
What is an attribute?
a characteristic of an outcome or item that is accounted for by its presence or absence, such as defective versus god or late versus on time.
what is a sample average?
a key measure that represents the central tendency of a measure of interest in a specific sample; used in conjunction with range ( R )
What is the range R
a key measure that represents the variation of a specific sample group used in conjunction with sample average x.
What is a proportion?
A measure of the percent of the sample that does or does not have a particular characteristic.
What are control limits?
the upper and lower limits of a control chart. they are calculated so that if a sample result falls inside the control limits, the process is considered under control.
What is the X bar chart
a specified type of control chart for continuous variable that is used to track the average value for future samples
What is the R chart?
a specific type of control chart for a continuous variable that is used to track how much the individual observations within each sample vary.
What is the process for setting up control charts.
1.) take m samples of size n each while the process is under control2.) use the sample results to set up the control chart using the tables or formulas provided.3.)Continue to take samples of size n, and plot them against the control charts.4.) interpret the results and take appropriate action.
What is a p chart?
a specific type of control chart for attributes that is used to track sample proportions.
What is acceptable sampling?
the process of sampling a portion of goods for inspection rather than examining the entire lot.
What is the acceptable quality level?
a term used in acceptance sampling a cut off value, representing the maximum defect level at which a consumer would always accept a lot.
What is the lot tolerance percent defective?
a term used in acceptance sampling; represents the highest defect level a consumer is willing to tolerate.
What is consumer risk?
a term used in acceptance sampling; represents the probability of accepting a lot with quality worse than the LTPD level.
What is the producer's risk?
a term used in acceptance sampling; represents the probability of rejecting a lot with quality equal or better than the AQL level.
What is the operating characteristics curve?
used in acceptance sampling. shows the probability of accepting a lot, given the actual fraction defective in the entire lot and the sampling plan being used. Different sampling plans will result in different OC curves.
What is the ISO 9000
a family of standards, supported by the international organizational for standardization representing an international consensus on good quality management practices. ISO 9000 adresses business processes, rather than specific outcomes.
What is the formula for the process capability ratio?
Cp= ( UTL - LTL ) / 6o
What is a project?
A temporary endeavor undertaken to create a unique product, service, or result. Unlike more typical business activities, projects have clear starting and ending points, after which the people and resources dedicated to the project reassigned.
How are projects different from typical business activities?
1.) projects are non routine2.) the non routine nature of projects often makes them very difficult to manage.3.) projects typically require significant levels of cross functional and interorganizational coordination.4.) projects unlike routine activites have a defined ending point which the project is completed.
What is project management?
the application of knowledge, skills, tools, and techniques to meet project requirements.
What are the two trends of interest that have pushed project management to the forefront?
1.) the faster pace of strategic change2.) The changing role of middle management.
What is the concept phase?
the first of five phases of a project, here, project planners develop a broad definition of what the project is and what its scope will be.
What is the project definition phase?
the second of five phases in a project. Here, project planners identify how to organize for the project, the key personnel and resources required to support the project, tentative schedules, and tentative budget requirements.
What is the planning phase?
the third of five phases of a project. here project planners prepare detailed plans that identify activities, time and budget targets, and the resources needed to complete each task, this phase also includes putting in place the organization that will carry out the project.
What are milestones?
A performance or time target for each major group of activities in a project.
What is the performance phase?
the fourth of five phases of a project. in this phase, the organization actually starts to execute the project plan
What is the postcompletion phase
the fifth of five phases of a project. this is the phase in which the project manager or team confirms the final outcome, conducts a posimplementation meeting to critique the project and personnel, and reassigns project personnel.
What is a Gantt chart
A graphical tool used to show expected start and end times for project activities, and to track actual progress against these time targets.
What is a network diagram?
A graphical tool that shows the logical linkages between activities in a project
What is a critical path method?
A network based technique in which there is a single time estimate for each activitity. An alternative approach is PERT which has multiple time estimates for each activity.
What is the program evaluation and review technique, PERT?
a network based technique in which there are multiple time estimates for each activity. An alternative approach is CPM, which has a single time estimate for each activity.
What is an activity on node diagram?
A network diagram in which each activity is represented by a node, or box, and the precedence relationships between various activities are represented with arrows.
What are critical activities?
Project activites for which the earliest start time and latest start time are equal. Critical activites cannot be delayed without lengthening the overall project duration
What is a network path
A logically linked sequence of activities in the network diagram
What is a critical path?
the longest path in the project network. there may be more than one critical path.
What is a forward pass?
the determination of the earliest start and finish times for each project activity.
What is the earliest start time?
the earliest an activity can be started, as determined by the earliest finish time for all immediate predecessors.
What is the earliest finish time?
the earliest an activity can be finished, calculated by adding the activity's duration to its earliest start time.
What is a backward pass?
the determination of the latest finish and start times for each project activity.
What is the latest finish time?
the latest an activity can be finished and still finish the project on time, as determined by the latest start time for all immediate successors.
What is the latest start time?
the latest an activity can be started and still finish the project on time, calculated by subtracting the activity's duration from its latest finish time.
What is slack time?
the difference between an activity's latest start time ( LS ) and earliest start time ( ES ). Slack time indicated the amount of allowable delay. Critical activities have a slack time of zero.
What is crashing?
shortening the overall duration of a project by reducing the time it takes to perform certain activities.
What are the set of steps to follow when crashing a project?
1.) List all network paths and their current lengths. Mark all activities that can be crashed.2.) Focus on the critical path or paths. Working on one period at a time, choose the activity that will shorten all critical paths at the least cost. One rule: never crash an activity not on a critical path, regardless of the costs.3.) Recalculate the lengths of all paths, and repeat step 2 until the target project completion time is reached or until all options have been exhausted.
The advent of cheap computer power has resulted in...
an explosion in the number of project management software packages.
What does the PMI do?
Project management institution is dedicated to the advancement of operations and supply chain practices.
What is product design?
the characteristics or features of a product or service that determine its ability to meet the needs of the user.
What is product development process?
the overall process of strategy, organization, concept generation, product and marketing plan creation and evaluation, and commercialization of a new product.
What are four reason for developing new products and services?
1.) new products or services can give firms a competitive advantage in the marketplace.2.) new products or services provide benfits to the firm.3.) companies develop new products or services to exploit existing capabilities.4.) Companies can use new product development to block out competitors.
What is supply chain design?
the process of designing the flow of goods and materials between multiple locations.
What are the 6 dimensions a product design centers around?
1.) repeatability2.) testability3.) serviceability4.) product volumes5.) product costs6.) match between the design and existing capabilities.
what is a robust design?
the design of products to be less sensitive to variations, including manufacturing variation and misuse, increasing the probability that they will perform as intended.
What is testability?
the ease with which critical components or functions can be tested during production
What is serviceability?
the ease with which parts can be replaced, serviced or evaluated.
When a company decides to go forward with a new product or service, it becomes the job of the supply chain managers...
to make sure that the company can handle the resulting volumes.
what are three main drivers of hidden costs?
1.) the number of parts in a product.2.) engineering changes3.) transportation costs.
What is an engineering change?
a revision to a drawing or design released by engineering to modify or correct a part.
operations and supply chain managers are always concerned with...
how well new products or services match up with existing products or capabilties.
What is the concept developement phase?
the first phase of a product developement effort. Here a company identifies ideas for new or revised products and services.
what is the planning phase
the second phase of a product developement effort, here the company begins to address the feasibility of a product or service.
What are the 5 stages of product and service developement?
concept developement, planning, design and developement, commercial prepartion, launch
what is the design and developement phase
the third phase of a product developement effort. here the company starts to invest heavily in the developement effort and builds and evaluates prototypes.
What is the commercial preparation phase?
the fourth phase of a product development effort. at this stage, firms start to invest heavily in the operations and supply chain resources needed to support the new product or service.
What is the launch phase?
the final phase of a product developement effort. For physical products, this usually means filling up the supply chain with products. for services it can mean making the service broadly available to the target marketplace.
What is sequential development process?
a process in which the product or service idea must clear specific hurdles before it can go on the next development phase.
What is concurrent engineering?
An alternative to sequential development in which activities in different stages are allowed to overlap with one another, thereby shortening the total development time.
What are the different functions that contribute to the development effort?
Engineering, marketing, accounting, finance, designers, purchasing, and suppliers.
What is the gray box design?
used to describe a situation in which the supplier works with the customer to jointly design the product.
What is the black box design?
used to describe a situation in which suppliers are provided with general requirements and are asked to fill in the technical specifications.
What is DMADV?
define measure analyze verify. six sigma process that outlines the steps needed to create completely new business processes or products.
What are the five steps of the DMADV process?
1.) define the project goals and customer deliverables.2.) measure and determine customer needs and specifications3) analyze the product or process options to meet the customer needs.4.) design the product or process5) verify the new product or process.
What is quality function deployment?
a graphical tool used to help organizations move from vague notions of what customers want to specific engineering and operational requirements, also called the house of quality.
What are the four matrices of the QFD process?
1st- customer requirements -> product characteristics2nd- product characteristics -> product specifications3rd- product specifications -> process characteristics.4th- process characertistics -> process specifications
What are computer aided design systems?
information systems that allow engineers to develop, modify, share, and even test designs in a virtual world. CAD systems helps organizations avoid the time and expense of paper based drawings and physical prototypes.
what are computer aided design. computer aided manufacturing systems?
An extension of CAD. Here, CAD based designs are translated into machine instructions, which are then fed automatically into computer controlled manufacturing equipment.
What is design for manufacturability?
the systematic consideration of manufacturing issues in the design and development process. facilitating the fabrication of the product's components and their assembly into the overall product.
what are parts standardization?
the planned elimination of superficial, accidental, and deliberate differences between similiar parts in the interest of reducing parts in the interest of reducing part and supplier proliferation.
what is modular architecture?
a product architecture in which each functional element maps into its own physical chunk. Different chuncks perform different functions; the interactions between the chunks are minimal, and they are generally well defined.
What is design maintainability?
the sytematic consideration of maintainability issues over the product's projected life cycle in the design and development process.
What is the design for six sigma?
an approach to product and process design that seeks to ensure the organization is capable of providing products or services that meet six sigma quality levels- in general, no more than 3.4 defects per million opportunities.
What is design for the environment
an approach to new product design that adresses enviromental, safety, and health issues over the product's projected life cycle in the design and development process.
What is target costing?
the process of designing a product to meet a specific cost objective. target costing involves setting the planned selling price and subtracting the desired profit, as ell as marketing and distribution costs, thus leaving the required target cost.
What is value analysis?
a process that involves examining all elements of a component, assembly, end product, or service to make sure it fufills its intended function at the lowest total cost.
what is the formula for value?
value= function / cost
What are two reasons why service process decisions are very important to firms?
1.) they tend to be expensive and far reaching.2.) process decisions deserve extra attention because different processes have different strengths and weaknesses.
What are a few general principles to keep in mind when selecting and implementing a manufacturing process:
1.) selecting an effective manufacturing process means much more than just choosing the right equipment. Manufacturing processes also include people, facilities and physical layouts, and info systems.2.) Different manufacturing processes have different strengths and weaknesses. 3.) the manufacture of a particular item might require many different types of manufacturing processes, spread over multiple sites and organizations in the supply chain.
What is flexible manufacturing systems?
highly automated batch processes that can reduce the cost of making groups of similiar products.
What are some questions that arise during a selection process?
What are the physical requirements of the company's product?how similiar are the products the company makeswhat are the company's production volumes?where in the value chain does customization take place ( if at all )
What is a production line?
a type of manufacturing process used to produce a narrow range of standard items with identical or highly similiar designs.
What is product based layout?
a type of layout where resources are arranged sequentially according to the steps required to make a product.
what is cycle time
for a line process the actual time between completions of successive units on a production line
What is continuous flow process?
A type of manufacturing process that closely resembles a production line process. The main difference is the form of the product, which usually cannot be broken into discrete units. examples include yarns and fabric, food products, and chemical products such as oil or gas.
What is a job shop?
A type of manufacturing process used to make a wide variety of highly customized products in quantities as small as one. Job shops are characterized by general purpose equipment and workers who are broadly skilled.
What is a functional layout?
A type of layout where resources are physically grouped by function.
What is batch manufacturing?
A type of manufacturing process where items are moved through the different manufacturing steps in groups or batches.
What is a fixed position layout?
A type of manufacturing process in which the position of the product is fixed. materials, equipment, and workers are transported to and from the product.
What is hybrid manufacturing processes?
a general term referring to manufacturing processes that seek to combine the characteristics, and hence advantages, of more than one of the classic processes. examples include flexible manufacturing systems, machining centers, and group technology.
What is a machining center?
A type of manufacturing process that completes several manufacturing steps without removing an item from the process.
What is group technology?
A type of manufacturing process that seeks to achieve the efficiencies of a line process in a batch environment by dedicating equipment and personnel to the manufacture of products with similar manufacturing characteristics.
What is a cellular layout?
a type of layout usually used in group technology settings; resoruces are physically arranged according to the dominant flow of activities for the product family.
What is a product family?
in group technology, a set of products with very similiar manufacturing requirements.
What is the product process matrix?
matrix with process choice on y axis, and product characteristics on the x axis, and is used to designate where a product should go.
what are the four levels of customization?
Make to stock, assemble to finish, make to order, or engineer to order products.
What are make to stock product?
products that require no customization. they are generic products and are produced in large enough volumes to justify keeping a finished goods inventory.
What are assemble - or finish - to- order products
Products that are customized only at the very end of the manufacturing process.
What are make to order products
products that use standard components, but the final configuration of those components is customer specific
What are engineer to order products
products that are designed and produced from the start to meet unusual customer needs or requirements. They represent the highest level of customization.
to manufacturing personnel, the key difference between the four product type is not so much the degree of customization, but ....
the point at which it occurs.
What are upstream activities?
in the context of manufacturing customization, activities that occur prior to the point of customization
What are downstream activities
in the context of manufacturing customization, activities that occur at or after the point of customization.
What is law of variability?
the greater the random variability either demanded of the process or inherent in the process itself or in the items processed, the less productive the process is. this law is relevant to customization because completing upstream actvities off line helps isolate these activities from the variability caused by either the timing or the unique requirements of individual customers.
when customization occurs early in the supply chain...
flexibility in response to unique customer needs will be greater. Lead times will tend to be longer, and products will tend to be more costly.
When customization occurs late in the supply chain,
flexibility in response to unique customer needs will be limited. lead times to the customer will tend to be shorter. products will tend to be less costly.
What is a service package?
Includes all the value added physical and intangible activites that a service organization provides to the customer.
What are some managerial challenges in service environments
1.) nature of the service package2.) degree of customization3.) Degree of customer contact.
What is the difference between the emphasis on tangible and intangible activites?
physical activities- the more managements attention will be directed to capital expenditures, material costs, etc. The greater the emphasis on intangible activties is, the more critical is the training and retention of skilled employees and the developeement and maintenance of the firm's knowledge assets.
As the degree of customization decreases, the service package becomes more...
As the degree of customization increases, the service package becomes...
less predictable and more variable.
What is the front room?
the physical or virtual point where the customer interfaces directly with the service organization.
What is the back room?
the part of a service operation that is completed without direct customer contact.
What is service blueprinting?
A specialized form of business process mapping that allows the user to better visualize the degree of customer contact. The service blue print lays out the service process from the viewpoint of the customer. it parses out the organizations service actions based on the extent to which an action involves direct interaction with the customer, and whether or not an action takes place as a direct response to a customer's needs.
What do service operations compete and position themselves in the marketplace based on three dimensions
nature of the service package,degree of customization, and degree of customer contact.
what does a conceptual model of service processes look like
a cube
What is line balancing?
a technique used in developing product based layouts, as would be found in a production line or group technology work cell.
what is takt time?
in production line setting, the available production time divided by the required output rate. takt time sets the maximum allowable cycle time for a line.
What are the 6 steps to line balancing?
1.) identify all the process steps required, including the time for each task, the immediate predecessor for each task, and the total time for all tasks.2.) draw a precedence diagram based on the information gathered in step 1. This diagram is used when assigning individual task to work stations.3.) determine the takt time for the line. T time = available production time / required output rate.4.) compete theoretical minimum number of workstations needed.5.) working on one workstation at a time, use a decision rule to assign tasks to the workstation. ( assign the largest eligible task that will still fit within the workstation without exceeding the takttime, assign the eligible task with the most asks directly dependent on it, assign some combination of the two)6.) evaluate the performance of the proposed line by calculation of cycle time, idle time, percent idle time, and efficiency delay.
to minimize total distance traveled, what is the process to do this?
1.) identify the potential department locations and distances between the various location.2.) for each dept, identify the expected number of trips between the dept and all other depts.3.) attempt to assign dept locations in such a way to minimize total distance traveled.
What are some key points about capacity?
Capacity can take many different forms, and capacity planning is an important activity in both service and manufacturing organizations.Thought there are many quantitative tools to help managers make informed capacity decisions, there is some degree of risk inherent in nearly all such decisions.
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