APICS MOD 4

fishbone analysis

A technique to organize the elements of a problem or situation to aid in the determination of the causes of the problem or situation. The analysis relates the effect of the environment to the several possible sources of the problem.

form-fit-function

A term used to describe the process of designing a part or product to meet or exceed the performance requirements expected by customers.

frequency distribution

A table that indicates the frequency with which data falls into each of any number of subdivisions of the variable. The subdivisions are usually called classes.

fitness for use

A term used to indicate that a good or service fits the customer's defined purpose for that good or service.

finite forward scheduling

An equipment scheduling technique that builds a schedule by proceeding sequentially from the initial period to the final period while observing capacity limits. A Gantt chart may be used with this technique.

funnel experiment

An experiment that demonstrates the effects of tampering. Marbles are dropped through a funnel in an attempt to hit a flat-surfaced target below. The experiment shows that adjusting a stable process to compensate for an undesirable result or an extraordinarily good result will produce output that is worse than if the process had been left alone.

batch processing

1) A manufacturing technique in which parts are accumulated and processed together in a lot. 2) A computer technique in which transactions are accumulated and processed together or in a lot.

design of experiments (DOE)

1) A process for structuring statistically valid studies in any science. 2) A quality management technique used to evaluate the effect of carefully planned and controlled changes to input process variables on the output variable. The objective is to improve production processes.

constraint

1) Any element or factor that prevents a system from achieving a higher level of performance with respect to its goal. [These] can be physical, such as a machine center or lack of material, but they can also be managerial, such as a policy or procedure. 2) One of a set of equations that cannot be violated in an optimization procedure.

gatekeeping

1) In group dynamics, a technique applied by a team leader to effectively manage a situation, discussion, or meeting. For example, in a situation where a dominant spokesperson or person of authority monopolizes a discussion, the [leader] will intervene by requesting additional group members' input. 2) In logistics, the vetting of return materials and issuing of return material authorizations (RMAs) in accordance with the organization's returns policy. The intent is to minimize returns and return costs while managing customer interactions and expectations to maintain intended customer service levels.

cycle time

1) In industrial engineering, the time between the completion of two discrete units of production. For example, [if] motors [are] assembled at a rate of 120 per hour, [this] is 30 seconds. 2) In materials management, the length of time from when material enters a production facility until it exits.

histogram

A graph of contiguous vertical bars representing a frequency distribution in which the groups or classes of items are marked on the x axis and the number of items in each class is indicated on the y axis. The pictorial nature of [this] lets people see patterns that are difficult to see in a simple table of numbers. [It] is one of the seven tools of quality.

distribution

1) The activities associated with the movement of material, usually finished goods or service parts, from the manufacturer to the customer. These activities encompass the functions of transportation, warehousing, inventory control, material handling, order administration, site and location analysis, industrial packaging, data processing, and the communications network necessary for effective management. [...] In many cases, this movement is made through one or more levels of field warehouses. 2) The systematic division of a whole into discrete parts having distinctive characteristics.

acceptance sampling

1) The process of sampling a portion of goods for inspection rather than examining the entire lot. The entire lot may be accepted or rejected based on the sample even though the specific units in the lot are better or worse than the sample. There are two types: attributes sampling and variables sampling. In attributes sampling, the presence or absence of a characteristic is noted in each of the units inspected. In variables sampling, the numerical magnitude of a characteristic is measured and recorded for each inspected unit; this type of sampling involves reference to a continuous scale of some kind. 2) A method of measuring random samples of lots or batches of products against predetermined standards.

hoshin

A Japanese word meaning statement of objectives.

critical ratio

A dispatching rule that calculates a priority index number by dividing the time to due date remaining by the expected elapsed time to finish the job. [This is calculated by dividing time remaining by work remaining. For example, a ratio less than 1.0 indicates the job is behind schedule, a ratio greater than 1.0 indicates the job is ahead of schedule, and a ratio of 1.0 indicates the job is on schedule.]

environmentally responsible business

A firm that operates in such a way as to minimize detrimental impacts on society.

certificate of compliance

A supplier's certification that the supplies or services in question meet specified requirements.

control chart

A graphic comparison of process performance data with predetermined computed control limits. The process performance data usually consists of groups of measurements selected in the regular sequence of production that preserve the order. The primary use of [these] is to detect assignable causes of variation in the process as opposed to random variations. [This] is one of the seven tools of quality.

gemba walk

A management approach in which managers observe the actual work being carried out in order to understand it better, coach, guide, and follow up on corrective actions with the line manager.

cell

A manufacturing or service unit consisting of a number of workstations and the materials transport mechanisms and storage buffers that interconnect them.

decision matrix

A matrix used by teams to evaluate problems or possible solutions. For example, after drawing the matrix, the team lists the solutions in the far left vertical column. Next, the team selects criteria to rate the possible solutions, writing them across the top row. Third, each possible solution is rated on a scale of 1 to 5 for each criterion and the rating recorded in the corresponding grid. Finally, the ratings of all the criteria for each possible solution are added to determine its total score. The total score is then used to help decide which solution deserves the most attention.

A3 method

A means of compactly describing a business process.

backflush

A method of inventory bookkeeping where the book (computer) inventory of components is automatically reduced by the computer after completion of activity on the component's upper-level parent item based on what should have been used as specified on the bill of material and allocation records. This approach has the disadvantage of a built-in differential between the book record and what is physically in stock.

green manufacturing

A method of producing a good or service that minimizes external cost and pollution. It includes design for reuse, design for disassembly, and design for remanufacture.

count point

A point in a flow of material or sequence of operations at which parts, subassemblies, or assemblies are counted as being complete. [These] may be designated at the ends of lines or upon removal from a work center, but most often they are designated as the points at which material transfers from one department to another.

failure mode effects analysis (FMEA)

A procedure in which each potential failure mode in every sub-item of an item is analyzed to determine its effect on other sub-items and on the required function of the item.

design for manufacture and assembly (DFMA)

A product development approach that involves the manufacturing function in the initial stages of product design to ensure ease of manufacturing and assembly.

dedicated line

A production line permanently configured to run well-defined parts, one piece at a time, from station to station.

first-article inspection

A quality check on the first component run after a new setup has been completed.

anticipated delay report

A report, normally issued by both manufacturing and purchasing to the material planning function, regarding jobs or purchase orders that will not be completed on time. This report explains why the jobs or purchases are delayed and when they will be completed. This report is an essential ingredient of the closed-loop MRP system. It is normally a handwritten report.

capacity-constrained resource (CCR)

A resource that is not a constraint but will become a constraint unless scheduled carefully. Any resource that, if its capacity is not carefully managed, is likely to compromise the throughput of the organization.

andon

A sign board with signal lights used to make workers and management aware of a quality, quantity, or process problem.

check sheet

A simple data-recording device. [It] is designed by the user to facilitate the user's interpretation of the results [and] is one of the seven tools of quality. [It is] often confused with data sheets and checklists.

define, measure, analyze, improve, control (DMAIC) process

A six sigma improvement process composed of five stages: (1) Determine the nature of the problem. (2) Measure existing performance and commence recording data and facts that offer information about the underlying causes of the problem. (3) Study the information to determine the root causes of the problem. (4) Improve the process by effecting solutions to the problem. (5) Monitor the process until the solutions become ingrained.

assignable cause

A source of variation in a process that can be isolated, especially when its significantly larger magnitude or different origin readily distinguishes it from random causes of variation.

flow control

A specific production control system that is based primarily on setting production rates and feeding work into production to meet these planned rates, then monitoring and controlling production.

earned hours

A statement reflecting the standard hours assigned for actual production reported during the period.

analysis of variance (ANOVA)

A statistical analysis system that estimates what portion of variation in a dependent variable is caused by variation in one or more independent variables. It also produces a number used to infer whether any or all of the independent-dependent variable relationships have statistical significance (i.e., have not been caused by randomness in the data).

control limit

A statistically determined line on a control chart [...]. If a value occurs outside this [upper or lower] limit, the process is deemed to be out of control.

certified supplier

A status awarded to a supplier that consistently meets predetermined quality, cost, delivery, financial, and count objectives. Incoming inspection may not be required.

house of quality (HOQ)

A structured process that relates customer-defined attributes to the product's technical features needed to support and generate these attributes. This technique achieves this mapping by means of a six-step process: (1) identification of customer attributes; (2) identification of supporting technical features; (3) correlation of the customer attributes with the supporting technical features; (4) assignment of priorities to the customer requirements and technical features; (5) evaluation of competitive stances and competitive products; and (6) identification of those technical features to be used (deployed) in the final design of the product. [This] is part of the quality function deployment (QFD) process and forces designers to consider customer needs and the degree to which the proposed designs satisfy these needs.

cause-and-effect diagram

A tool for analyzing process dispersion. It is also referred to as the Ishikawa diagram (because Kaoru Ishikawa developed it) and the fishbone diagram (because the complete diagram resembles a fish skeleton). The diagram illustrates the main causes and subcauses leading to an effect (symptom). [This] is one of the seven tools of quality.

central point scheduling

A variant of scheduling that employs both forward and backward scheduling, starting from the scheduled start date of a particular operation.

flexible workforce

A workforce whose members are cross-trained and whose work rules permit assignment of individual workers to different tasks.

conformance

An affirmative indication or judgment that a product or service has met the requirements of a relevant specification, contract, or regulation.

feeder workstations

An area of manufacture whose products feed a subsequent work area.

group technology (GT)

An engineering and manufacturing philosophy that identifies the physical similarity of parts (common routing) and establishes their effective production. It provides for rapid retrieval of existing designs and facilitates a cellular layout.

divergent point

An operation in a production process in which a single material/component enters and, after processing, can then be routed to a number of different downstream operations.

block scheduling

An operation scheduling technique where each operation is allowed a "block" of time, such as a day or a week.

finite loading

Assigning no more work to a work center than the work center can be expected to execute in a given time period. The specific term usually refers to a computer technique that involves calculating shop priority revisions in order to level load operation by operation.

certification audits

Audits occurring within registration processes (e.g., for ISO 9000:2000).

excess capacity

Capacity that is not used to either produce or protect the creation of throughput.

common causes

Causes of variation that are inherent in a process over time. They affect every outcome of the process and everyone working in the process.

five Ss

Five terms beginning with "S" used to create a workplace suitable for lean production: sort, simplify, scrub, standardize, and sustain. Sort means to separate needed items from unneeded ones and remove the latter. Simplify means to neatly arrange items for use. Scrub means to clean up the work area. Standardize means to sort, simplify, and scrub daily. Sustain means to always follow the first four Ss. Sometimes referred to by the Japanese equivalents: seiri, seiton, seiso, seiketsu, and shitsuke.

attribute data

Go/no-go information. The control charts based on attribute data include percent chart, number of affected units chart, count chart, count-per-unit chart, quality score chart, and demerit chart.

hazmat

Hazardous material defined by environmental laws and legal precedents. A product has been defined as hazardous by regulations that impose stiff fines if the regulations are ignored.

cost variance

In cost accounting, the difference between what has been budgeted for an activity and what it actually costs.

heijunka

In just-in-time philosophy, an approach to level production throughout the supply chain to match the planned rate of end product sales.

balancing operations

In repetitive just-in-time production, matching actual output cycle times of all operations to the demand or use for parts as required by final assembly and, eventually, as required by the market.

buffer management

In the theory of constraints, a process in which all expediting in a shop is driven by what is scheduled to be in the buffers (constraint, shipping, and assembly buffers). By expediting this material into the buffers, the system helps avoid idleness at the constraint and missed customer due dates. In addition, the reasons items are missing from the buffer are identified, and the frequency of occurrence is used to prioritize improvement activities.

control points

In the theory of constraints, strategic locations in the logical product structure for a product or family that simplify the planning, scheduling, and control functions. [These] include gating operations, convergent points, divergent points, constraints, and shipping points. Detailed scheduling instructions are planned, implemented, and monitored at these locations. Other work centers are instructed to "work if they have work; otherwise, be prepared for work." In this manner, materials flow rapidly through the facility without detailed work center scheduling and control.

failsafe work methods

Methods of performing operations so that erroneous or faulty actions cannot be completed. For example, a part without holes in the proper place cannot be removed from a jig; a computer system rejects invalid numbers or requires double entry of transaction quantities outside the normal range.

alternate operation

Replacement for a normal step in the manufacturing process.

flow rate

Running rate; the inverse of cycle time; for example, 360 units per shift (or 0.75 units per minute).

critical characteristics

The attributes of a product that must function properly to avoid the failure of the product.

design for manufacturability

Simplification of parts, products, and processes to improve quality and reduce manufacturing costs.

floor stocks

Stocks of inexpensive production parts held in the factory, from which production workers can draw without requisitions.

continuous improvement

The act of making incremental, regular improvements and upgrades to a process or product in the search for excellence.

backflush costing

The application of costs based on the output of a process. Backflush costing is usually associated with repetitive manufacturing environments.

capacity required

The capacity of a system or resource needed to produce a desired output in a particular time period.

employee involvement (EI)

The concept of using the experience, creative energy, and intelligence of all employees by treating them with respect, keeping them informed, and including them and their ideas in decision-making processes appropriate to their areas of expertise. [It] focuses on quality and productivity improvements.

contribution

The difference between sales price and variable costs. [It] is used to cover fixed costs and profits.

average cost per unit

The estimated total cost, including allocated overhead, to produce a batch of goods divided by the total number of units produced.

feedback

The flow of information back into the control system so that actual performance can be compared with planned performance.

corrective action

The implementation of solutions resulting in the reduction or elimination of an identified problem.

critical-to-quality characteristics (CTQs)

The important and measurable traits of a product or process whose performance targets must be met to satisfy the customer. They adjust improvement efforts to meet consumer requirements. [They also] represent customer expectations for a product.

analysis of variance

The labor, material, and associated overhead costs that are charged against a job as it moves through the production process.

average outgoing quality limit (AOQL)

The maximum average outgoing quality over all possible levels of incoming quality for a given acceptance sampling plan and disposal specification.

availability

The percentage of time that a worker or machine is capable of working. [The formula for this equals ((S-B)/S) x 100% where S is the scheduled time and B is the downtime.]

employee empowerment

The practice of giving non-managerial employees the responsibility and the power to make decisions regarding their jobs or tasks. It is associated with the practice of transfer of managerial responsibility to the employee. [This] allows the employee to take on responsibility for tasks normally associated with staff specialists. Examples include allowing the employee to make scheduling, quality, process design, or purchasing decisions.

constraints management

The practice of managing resources and organizations in accordance with the theory of constraints (TOC) principles.

basic seven tools of quality (B7)

Tools that help organizations understand their processes in order to improve them. The tools are the cause-and-effect diagram (also known as the fishbone diagram or the Ishikawa diagram), check sheet, flowchart, histogram, Pareto chart, control chart, and scatter diagram.

flowchart

[A] chart that shows the operations, transportation, storages, delays, inspections, and so on related to a process. [This is] drawn to better understand processes [and is] one of the seven tools of quality.

early manufacturing involvement

The process of involving manufacturing personnel early in the product design activity and drawing on their expertise, insights, and knowledge to generate better designs in less time and to generate designs that are easier to manufacture. Early involvement of manufacturing, field service, suppliers, customers, and so on means drawing on their expertise, knowledge, and insight to improve the design. Benefits include increased functionality, increased quality, ease of manufacture and assembly, ease of testing, better testing procedures, ease of service, decreased cost, and improved aesthetics.

early supplier involvement (ESI)

The process of involving suppliers early in the product design activity and drawing on their expertise, insights, and knowledge to generate better designs in less time and designs that are easier to manufacture with high quality.

first pass yield

The ratio of products that conform to specifications without rework or modification to total input.

de-expedite

The reprioritizing of jobs to a lower level of activity. All extraordinary actions involving these jobs stop.

delivery schedule

The required or agreed time or rate of delivery of goods or services purchased for a future period.

capacity requirements

The resources needed to produce the projected level of work required from a facility over a time horizon. [These] are usually expressed in terms of hours of work or, when units consume similar resources at the same rate, units of production.

cost center

The smallest segment of an organization, typically a department, for which costs are collected and formally reported. The criteria in defining [this] are that the cost be significant and that the area of responsibility be clearly defined. [It] is not necessarily identical to a work center; normally, [this] encompasses more than one work center, but this may not always be the case.

go/no-go

The state of a unit or product. Two parameters are possible: [one conforms to specification and the other does not conform to specification].

drum-buffer-rope (DBR)

The theory of constraints method for scheduling and managing operations that have an internal constraint or capacity-constrained resource.

external setup time

The time associated with elements of a setup procedure performed while the process or machine is running.

continuous process control

The use of transducers (sensors) to monitor a process and make automatic changes in operations through the design of appropriate feedback control loops. Although such devices have historically been mechanical or electromechanical, there is now widespread use of microcomputers and centralized control.

appraisal costs

Those costs associated with the formal evaluation and audit of quality in the firm. Typical costs include inspection, quality audits, testing, calibration, and checking time.

downtime

Time when a resource is scheduled for operation but is not producing for reasons such as maintenance, repair, or setup.

expedite

To rush or chase production or purchase orders that are needed in less than the normal lead time; to take extraordinary action because of an increase in relative priority.

hypothesis testing

Use of statistical models to test conclusions about a population or universe based on sample information.

acceptable quality level (AQL)

When a continuing series of lots is considered, a quality level that, for the purposes of sampling inspection, is the limit of a satisfactory process average.