Queues occur in a wide range of activities affecting many types of users
Queuing theory is used only in manufacturing environments.
Source populations in a service system can be drawn from a fi
Does anyone know what percent of our final grade this exam accounts for? 40%
Do we have to work out any problems on moving averages or smoothing? NO
CHAPTER 3: Total Quality Management Philosophy: Managing Operations for Quality
What is Quality?
Competing on cost and being the low-cost producer is a guarantee of
profitability and success.
There are two characteristics of a product/service that define quality:
design quality and process quality.
Developing new products and getting them to market quickly is the
challenge facing most manufacturers.
Contract manufacturers specialize in manufacturing products for other
The product design proce
Lean and Sustainable supply
Supplier Production Distribution System
What is Forecasting?
Process of predicting
a future event
Underlying basis of
Forecasting Time Horizons
Up to 1 year, g
What is Inventory?
Inventory is the stock of any item or
resource used in an organization and
can include: raw materials, finished
products, component parts, supplies,
Purposes of Inventory
and the Theory of Constraints
The Goal of the firm
The hockey-stick phenomenon
Capacity and flow issues
Goldratts Rules of Production
Do not balance capacit
MGMT 4000 FINAL (pt. 1)
Quality Fitness for intended use (the customers perspective)
- The degree of excellence which a thing possesses
- A concept that does not lend itself to easy description or simple measurement
o Very difficult to define quality its
Global Sourcing, Procurement
and Supply Chain Management
What is a Supply Chain?
Supply-chain is a term that describes how
organizations (suppliers, manufacturers, distributors,
and customers) are linked together.
What is Supply Chain Managemen
Strategic Capacity Management
Strategic Capacity Management
Capacity can be defined as the ability to
hold, receive, store, or accommodate.
Strategic capacity planning is an approach
for determining the overall capacity level of
In SQC terminology, sigma is often used to refer to the sample standard
N and c define a single sampling plan, where n is the acceptance number
and c is the number of units in the sample.
Diagram: Check your diagram. It should contain two paths leading into
Subassembly I. The first path contains A, B, and C. The second path contains D
and E. The
Synchronous manufacturing refers to the entire production process
working together in harmony to achieve the goals of the firm.
Return on investment is the rate at which money is generated by the
system through sa
Total cost to manufacturer is $1,285,000 which is the total of additional fixed
costs of $80,000, additional labor costs of $200,000, raw materials costs of
$900,000, and additional overh
A fixed cost fluctuates directly with changes in the level of output.
Opportunity costs are expenses that are not incurred if an investment is
made but that must be incurred if the investment is not made.
Thus: I = $2.5 million
L = $560,000
E = $25,000
q = 2.5
Z = 50,000
_$2.5 million_ = .17 per year
$560,000 - $25,000 + 2.5 ($560,000 + 50,000)
p = 3.29 years or
$59,000 - $22,000 + 3
Integrating all aspects of production into one automated system is:
A _ is a totally automated manufacturing system that
consists of machining centers with automated
1. What is Productivity?
Productivity is a common measure on how well resources are being used. In the broadest
sense, it can be defined as the following ratio: Outputs:Inputs
2. You have just determined that your service employees have
Chapter 9 A
p = Total number of defects from all samples (Number of samples x sample
where n = sample size (100)
Simulation can have various meanings depending on its application.
Simulation is not useful for training managers or workers on real systems
because it is only a simulation of reality.
Problem definition in s
MGMT 4000 FINAL (pt. 2)
There is NO Unified Theory of Quality
- Differing approaches to quality improvement represent competing philosophies
- SPC Chart
o Statistical Process Control
- PDCA Cycle
o Plan, Do, Check, Act
W. Edwards Deming
MGMT 4000 FINAL (pt. 4)
- Sigma (), is a Greek letter used to designated Standard Deviation (SD) in statistics
- Six (6) refers to the number of SDs from the upper specification limit to the mean OR
from the lower specification limit to the mean
WSJ ARTICLE: Why Shouldnt Princeton Pay Taxes?
Two exams (45% each) oct 7 and nov 18
Random attendance (10%)
No class oct 4th or nov 22nd
"Why Shouldn't Princeton Pay Taxes?" WSJ Article
Ivy League school is operating like a business, the plai
Mission! Objectives ! Strategy
Strategy is the implementation of objectives to fulll the mission.
Discovering a Mission:
o Set of goals and policies designed to achieve competitive
advantage in a particular marketplace
High volume sales based on low price
Perceived value (price vs. quality)
a. Wal-Mart (Wal-Mart is testing a checkout system for
customers to scan items with their smartphone and then pay
at a self-serve kiosk. They
Supply Chain Management:
Strategic management of all operations linking an organization to its
Goal: achieve efficiency while assuring on-time availability of quality
resources and product
Entrepreneurial Funding and Service
Scientists and academics dont understand this process of
commercialization of intellectual property
Next gure out if it is a true business model; can you create
revenue from it; need cash ow
o Cash ow is not necessary
USA Today Article: The Methodology of Testing the System
Using this article to talk about process capabilities
You have to be careful about what kind of incentives you offer
o Stock options- tie salary to stock price
! Their incentive is now to maximize
*TEST MONDAY 9/9/13
Boston Consulting Group (BCG) Matrix:
GE is getting rid of its nancial services part of the company
o It is refocusing on manufacturing
Dalton and carpet manufacturing
o Something is being built that will bring 2