MGMT 4000 Final Blackstone Flashcards

Terms Definitions
Total Quality Management
Japanese-style management approach, long-term success through customer satisfaction. TQM is based on the participation of all members of an organization in improving processes, goods, services, and the culture in which they work.
Project Quality Dimensions
Performance Features Reliability ConformanceDurability Serviceability Aesthetics Perceived Quality
Service Quality Dimensions
Tangibles Service Reliability Responsiveness Assurance Empathy
Concurrent Engineering
Concept referring to the participation of all functional areas of the firm into product design. get everyone involved to make high quality at low costs.
William Edward Deming
American statistician credited with improving production in WWII. "A loyal customer is a profitable customer." Created the 14 points for MGMT. Create a constancy of purpose towards improve,et of product service with the aim to become competitive, stay in business, and provide jobs.
Shewart/Deming Wheel.Plan Do Check Act
Old Quality Images
Low quality caused by people Loss of work ethic Some defects acceptable Inspect for product problems Higher quality means higher costs
New Quality image
Low quality caused by management of people Need for good management Zero defects is the goal Inspect for process problems Higher quality means higher profits
Joseph Moses Juran
American industrial engineer and philanthropist.a business and industrial quality "guru," is known worldwide as one of the most important 20th century thinkers in quality management.
Pareto's Law
80/20 rule, majority of quality problems are the result of relatively few issues. (juran)
Philip Crosby
was a businessman and author who contributed to management theory and quality management practices.initiated the Zero Defects program at the Martin CompanyAs the quality control manager of the Pershing missile program, Crosby was credited with a 25 percent reduction in the overall rejection rate and a 30 percent reduction in scrap costs.
Kaoru Ishikawa
Japanese University professor and influential quality management innovatorIshikawa or cause and effect diagram (also known as Fishbone Diagram) that are used in the analysis of industrial process. He is considered one of the Quality Gurus.
Genichi Taguchi
drafted into the Astronomical Department of the Navigation Institute of the Imperial Japanese Navy.joined the Ministry of Public Health and Welfare where he came under the influence of eminent statistician Matosaburo Masuyama who kindled his interest in design of experimentsThe Taguchi Loss function
Taguchi Loss Function
graph used to get the ideal amount, too little or too much loses profits. (12 oz drink)
Tolerance stack up
failures occur largely because components, within tolerance but not precisely on specification, don’t fit perfectly and cause excessive wear.
Armand Feigenbaum
American quality control expertFirst Ph. D. in Quality (MIT, 1950s)Authored Total Quality ControlCredited with initializing the field of Total Quality Management (as differentiated from to Deming’s Statistical Quality Control)
Shigeo Shingo
Japanese industrial engineer who distinguished himself as one of the world’s leading experts on manufacturing practices and The Toyota Production SystemPoka-yoke (failsafing) – Rather than relying entirely on statistical control techniques, create a method that will not permit a part to be made that is not with tolerance.Made numerous contributions to just-in-time practice. Has half a dozen books translated into English including Zero Quality Control.
The Malcolm Baldridge National Quality Award
Administered by the National Institute of Standards and Technology, Department of Commerce. Established 1989.Six categories, 2 awards per category per year (All 12 have never been awarded in a single year):Small Business (less than 500 employees)Large ManufacturersService SectorEducationHospitalsNon profits
Baldridge Award categories
Leadership 120 Strategic Planning 85Customer and Market Focus 85Measurement, Analysis and Knowledge Management 90Human Resource Focus 85Process Management 85Business Results 450
The Deming Prize
Japanese Quality award. Oldest quality prize.
Deming Categories
PolicyOrganization and operationsCollecting useful InformationAnalysisPlanning for the Future Education and trainingQuality assuranceQuality effectsStandardizationControl
Quality Management/Process control stages
(1) no quality management, (2) inspection, and (3) process control.
Myth: Quality work takes more time
Reality: Quality work requires a good and structured process, and then it takes less time. For example, working with a complete kit in development, sales, or production processes requires fewer cycles in the process and naturally a smaller time investment and shorter cycle time.
Myth: Quality costs more money
Reality: High-quality work and a quality process cost less money because they result in less rework and fewer cycles, and they reduce the garbage plant. Thus, quality costs less and contributes to higher profit. Many customers are willing to pay a premium for quality services or products.
Myth: It is not possible to provide a quality service or quality product in large quantities.
Reality: It is possible to provide quality service and produce a quality product even in large quantities if the process is good, consistent, and reliable…and a quality process of selecting, training, and controlling the employees.
Six Sigma
quality tools and philosophies in an honest effort to provide rigor and repeatability to quality improvement effortsmore cost-reduction-oriented than traditional continuous improvementcreates champions, black belts, green belts, and in some situations, yellow belts
Work with black belts to identify possible projects
Master Black Belts
Work with and train new black belts
Black Belts
Committed full time to completing cost-reduction projects
Green Belts
Trained in basic quality tools
DMAIC Phases
Develop the business caseProject evaluationPareto analysisProject definition
Reasons for Six-Sigma failure:
Lack of leadership by championsMisunderstood roles and responsibilityLack of appropriate culture for improvement Resistance to change and the Six-Sigma structureFaulty strategies for deploymentLack of data
Statistical Thinking
All work occurs in a system of interconnected processesAll process have variation (The amount of variation tends to be underestimated)Understanding variation and reducing variation are important keys to success
drawn from a production or service process in order to ask the question, Is the process in control (i.e. conforming to specifications). Because we take a sample rather than a complete census, it is possible that we can draw an unrepresentative sample and reach the wrong conclusion
Type I error
producer’s risk
Type II error
consumer’s risk
Random variation
Centered around the meanConsistent amount of dispersion This type of variation cannot be controlled….The statistical tools discussed in this chapter are not designed to correct random variation
Nonrandom variation
“Special Causes”Results from some uncommon eventDispersion and mean of the process are changing Process that is not repeatableFind a bad symptom, then “ask why 5 times” to get to the underlying core problem
a continuous measurement such as weight, height, or volume.
either counted or is a yes/no decision.
procedure for developing process charts
Identify critical operations in the processIdentify critical product characteristicsDetermine whether the critical product characteristic is a variable or an attribute Select the appropriate statistical process control chartEstablish the control limits and use the chart to continually monitor the critical parameter and (offline) improve the process using the information obtained by monitoring the processUpdate the mean as well as the upper and lower control limits as needed when changes made to the process change the population parameters.
Tests for process control
One or more points fall outside Zone A Two of any three points fall outside the Zone B on the same side of the mean.Four of any consecutive five points fall outside the Zone C on the same side of the mean.Seven consecutive intervals either increase or decreaseEight or more consecutive points fall on the same side of the center lineFifteen consecutive points lie within Zone CAny obvious nonrandom pattern occurs.
Masaaki Imai’s Kaizen
Continuous, incremental, improvement is achievedby having everyone participate in the ContinuousImprovement effort.
From raw material to final customer, deliver each item just as needed. Drive continuous improvement by striving for faster flow of goods, which causes problems and forces one to deal with them.
Taichi Ohno
The idea for JIT came to Toyota VP Taichi Ohno while visiting a U.S. supermarket.Shigeo Shingo made JIT possible at Toyota by dramatically lowering setup times. Shingo is known today for SMED (Single Minute Exchange of Dies).
American Production and Inventory Control Society (APICS)
Brought JIT to the USA with their Zero Inventory Crusade and by the big three automobile manufacturers, who adopted JIT and required their suppliers to adopt it.
Management Commitment
managers are educated in the nature of the system they want implemented, actively involved in bringing about the implementation, and interested and concerned about the impact the system will have on workers.
Cards, standardized containers, or even a square painted on the floor may be used to signal to a worker that it is time for him or her to produce one container of parts
Rocks and Stream Analogy
Problems can be covered up by more inventory but JIT seeks to reduce inventory to expose problems and get rid of them. Inventory is water, problems are rocks.
Setup time
the time between finishing the last part of one order and starting the first part of the next.
Obsolete Measures of Performance
Equipment utilization Worker efficiency Individual incentives Costing based on direct labor hours
JIT 3 rules
Rule I: Work only as needed in terms of time, quantity, and specifications.Rule II: Work in small, appropriate, and smart batches.Rule III: Avoid waste and activities that do not add value to the organization.
Transfer batch
The number of units, number of work hours, or frequency of transfer between one work station and another.
Process (working or production) batch
The number of units (or labor hours) that are worked on continuously at a workstation. This is the amount of work between one setup and the next.
Examples of waste
OverproductionWaiting timesUnnecessary conveyanceRejected products in processingSurplus stock
Controlling bad multitasking
Teach and explainApply strict control using tactical gatingMeasure, follow up, can control the number of tasks assigned to each worker
Resource/Feeder buffer
early warnings given to resource required to enter in the CC at a later time.
Project Completion Buffer
Protects against the CC itself, 1/2 the length of the CC.
Project Development life cycle
objectivesrequired definitionsdesign (ext. and int.)Construction (Most time and resources)System testsimplementation/maintenance
Phase Reviews
to establish agreement that all required work for that Phase has been done properly, and that the organization supports a decision for the project to proceed to the next phase, or conversely, to terminate the project.
Quantitative Objectives for success
1) Did the end product meet the design specifications set forth?2) Does it perform well?3) Were all project objectives achieved?4) Can the financial benefits be quantified? Was the necessary basic data saved from the old environment to be compared to results in the new environment?5) Do these results measure up to the commitments made in the financial business case used to justify the project?6) Is the design of the product thoroughly documented and maintainable?7) Have project requirements for all constituencies been satisfied?
why projects fail
*Uninvolved Users/Customers*Poorly Defined End Products*Scope and the Multiplication of Interfaces*Uncontrolled Changes*Undisciplined Management System*Inappropriate Focus on Technology*Assuming 100% Availability of Committed Resources*Poor Scheduling
How long should the forecast be?
As long as the longest lead time for the thing to be planned.
Independent demand items
finished goods (such as automobiles) and replacement parts (such as replacement tires) need to be forecast.
Dependent demand items
– component parts (such as tires included as original equipment) are derived from demand for their parent items.
forecasting techniques
Moving averagesWeighted Moving AveragesExponential SmoothingDecomposition
Forecast Accuracy and Bias
Forecast accuracy measures how far, on the average a forecast is removed from actual demand.Forecast bias measures the tendency of the forecast to be systematically either too high or too low
supply chain
consists of all stages involved, directly or indirectly, in fulfilling a customer request. The supply chain not only includes the manufacturer and suppliers, but also transporters, warehouses, retailers, and customers themselves.
Objective of a supply chain
The objective of every supply chain is to maximize the overall value generated. The value a supply chain generates is the difference between what the final product is worth to the customer and the effort the supply chain expends in filling the customer’s request. For most commercial supply chains, value will be strongly correlated with supply chain profitability.
Supply chain strategy or design
Strategic decisions made by companies include the location and capacities of production and warehousing facilities, products to be manufactured or stored at various locations, modes of transportation to be made available along different shipping legs, and type of information system to be utilized
Supply chain planning
Planning includes decisions regarding which markets will be supplied from which locations, the planned building of inventories, the subcontracting of manufacturing, and the replenishment and inventory policies to be followed.
Supply chain operation
The goal of supply chain operations is to implement the operating policies in the best possible manner
How is strategic fit achieved?
Understanding the customerUnderstanding the supply chainAchieving strategic fit
Product Life cycle attributes
Demand has become more certainMargins are lower due to an increase in competitors and more competitive pressurePrice becomes a significant factor in customer choice
Obstacles to achieving strategic fit
Increasing variety of productsDecreasing product life cycle lengthsIncreasingly demanding customersFragmentation of supply chain ownershipGlobalizationDifficulty executing new strategies
the way we see the world - not in terms of our visual sense of sight, but in terms of perceiving, understanding, interpreting. - Stephen Covey
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