SCO 3059 Final Study Guide (Chapters 7., 8., 9., 10., 11., 12.)

9 Lessons learned from Decoding the DNA of the Toyota Production System (WATCH)

. Why not replicated? Visitors confuse tools and practices with the system. Processes are rigid, system is responsive and flexible. System is a culture of change and process improvement. TPS is more than a set of rules and a set of tools Create a community of scientists - each applying the Scientific Method to make improvements Stimulate workers to experiment - cornerstone of a 'Learning Organization' B. What is the role of employees in TPS? All are responsible for continuous learning and improvement All apply the Scientific Method - frame problem, formulate and test hypotheses, work toward improvement Improvements are done at the lowest level under the guidance of a teacher Employees expected to experiment - make improvements in their own work C. What is the DNA of the TPS? Employees ability to use the Scientific Method to reduce variation People trained in the Scientific Method Application of the four rules to continuously improve 1. All work is highly specified as to content, sequence, timing 2. Every customer-supplier relationship is direct, unambiguous 3. Pathways for every product and service must be simple (yes/no) and direct 4. Improvements are made per the Scientific Method under the guidance of a teacher at the lowest possible level in the organization

7) Explain the four principal activities of Design for Six Sigma (DFSS)

1) Concept development: Focuses on creating and developing a product idea and determining its functionality based upon customer requirements, technological capabilities, and economic realities 2) Detailed Design: Focuses on developing specific requirements and design parameters such as specifications and tolerances to ensure that the product fulfills the functional requirements of the concept 3) Design optimization: Seeks to refine designs to identify and eliminate potential failures, achieve reliability, and ensure that it can be easily manufactured, assembled, or delivered in an environmentally responsible manner 4) Design verification: Ensures that the quality level and reliability requriements of the product are achieved

7) Building the HOUSE OF QUALITY

1) Identify customer reqs 2) IDentify technical reqs 3) Relate the customer requirements to the technical reqs 4) Conduct an evaluation of competition 5) Evaluate technical reqs and develop targets 6) Determine which technical reqs to deploy in the remainder of the production/delivery process

Tenants of Lean Thinking:

1) Specify value from customer viewpoint 2) Improve values stream to reduce waste 3) Simplify process flows 4) Implement a pull system 5) Strive for perfection

9 Lean thinking - able to apply the five elements of lean thinking towards improving a business process and the impacts on; facility design, batch sizes, working capital, workers, flow of raw materials, wip and finished goods inventory, qulaity/defects, relationship with suppliers

1) Specify value from the customer's viewpoint 2) Utilize value stream map to analyze waste 3) Flow the product or service through the system 4) Pull the product from the customer 5) Strive for perfection - Relentless elimination of waste Facility Design: Smaller plant size --> Inventory kept on shop floor instead of stockroom, no warehousing, inventories always available Plant layout: Eliminate inventory buffers, Parts flow from one workstation to the next Batch Sizes: batch size of 1 Working Capital Workers: Roles/implications for employees: Problem solvers, emphasis on improving quality, reduce set-up times, generate smaller lot sizes Multi functional worker/cross trained Production - operate several machines, maintenance - emergency and preventive , inspection, change reward system away from seniority, learn from the experts, suggestion system ● Flow of raw materials ○ Increase flow of materials ● WIP and Finished goods inventory ○ Decreased WIP and finished goods ● Quality/defects ○ Decreased defects, increased quality ● Relationship with suppliers ○ Develop long-term strategic supplier partnerships ○ External suppliers viewed same as internal ○ No inspection of incoming materials ○ Long-term exclusive agreements ○ Frequent delivery direct to production line ○ Suppliers are extensions of the plant ○ Physical proximity of suppliers ○ EDI ○ Information sharing

8) Understand variation - be able to apply the 'questioning process of control charts' to improve business decision-making

1) is the variability of the process in control 2) IS the estimate of sigma "valid"? 3) Is the level of the process in statistical control 4) Can the existing control limits be used to monitor future process output? ---- If no evidence of special causes, only routine variation remains, we continue with questioning process 5) Can we live with the variation that remains? 6) Can we live with the level that remains?

8)Identify factors in designing control charts, how the sample data are taken, the sample size, the sampling frequency, and the location of the control limits

1)Prepare 2) Collect data 3) Determine trial control limits 4) Analyze and interpret results 5) Use as a problem solving tool 6) Compute process capability

8) Describe Shewhart's original rule for determining special cause variation

3 sigma limit?

9) Tenets of Lean 4P model and 14 Mgmt Principles

4P Model (Toyota) Philosophy - Long term thinking 1) Base decisions on Long Term philosophy not Short Term Financial goals\ Process - Eliminate Waste 2) Create continuous flow 3) Use pull system 4) Level out the workload 5) Build a culture of fixing problems 6) Standardize the tasks 7) Use Visual Controls 8) Use Technology to support people and processes People and Partners 9) Grow Leaders from within 10) Develop People 11) Treat Suppliers/Partners as extensions of the firm

9 Identify the Key tools of Lean including the Toyota A3 Report

5S Hoshin Kanri (Image) Kaizen JIT Kanban Muda Poka Yoke Root Cause Analysis SMED Takt Time

9 Apply the key tools used in lean production; the 5S's; visual controls; efficient layout and standardized work; pull production; single minute exchange of dies (SMED); total productive maintenance; source inspection; and continuous improvement.

5S: Sort, Set in Order, shine, standardize, sustain Visual controls: Indicators for tools, parts, and production activities that are placed in plain sight of all workers so that everyone can understand the status of the system at a glance. Efficient layout and standardized work: Cellular arrangement Standardizing the individual tasks by clearly specifying the proper method reduces wasted human movement and energy Pull Production: Single Minute Exchange of dies (SMED): Refers to rapid changeover of tooling and fixtures in machine shops so that multiple products in smaller batches can be run on the same equipment. Reducing setup time adds value to the operation and facilitates smoother production flow. Total Productive Maintenance: Designed to ensure that equipment is operational and available when needed Source inspection: Inspection and control by process operators guarantees that product passed on to the next production stage conforms to specifications Continuous improvement: Provides the link to six sigma. must get to the root causes of problems and permanently remove them

8) Performance metrics for Statistical Process Control - identify control applications in both service and manufacturing organizations

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10) Based on the readings and coursework create a high level synopsis of each of the major frameworks and philosophies. Identify similarities and differences. Evaluate. Describe how to implement a quality framework for a given business application

? come on Huch do not be that guy

11) Video applications - identify key takeaways from the video applications, compare and contrast similarities/differences between the businesses and how they deploy strategy. Connect the videos to the concepts in the chapter

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9 Kanban System - Explain to upper management how a kanban system works (e.g., video application)

A 'pull' production system JIT @ Federal Signal A physical control system (typically visual in nature) Composed of cards and containers (production card and withdrawal card) Parts "pulled" via containers Limited number of containers for parts Fill containers when they are delivered When all containers are full -stop Parts provided only when needed Quality problems exposed quickly - no inventory to hide errors

8) Given capability analysis computer output, identify the key measures and develop recommendations for management action

AC 8.3

8) Given capability index numbers of CPL, CPU, Cp, be able to illustrate the situation graphically and provide recommendations for management actions

AC 8.3

11) Describe how organizations link the mission, vision, and guiding principles to daily actions through the organization

ALT CAT 11.1 supposedly? (no key?) Vaheed document had --> The gist of this topics is to think of an actual organization, several examples were used in class. ○ CASE Corp: ■ Formed a Guiding Principle/Strategic Imperatives ● Customer Focus ● Superior Products ● Real Partnerships ● Speed ● Outstanding Dealers ● Cost Leadership ○ CASE CORP linked all projects to these Six Strategic Imperatives ■ Example was an Order Fulfillment Supply Chain Project ● Customer Focus ○ Improve parts availability - OTC fill ● Superior Products ○ CASE is easy to work with...making them the preferred service parts supplier ● Real Partnerships ○ Better forecasts to suppliers ○ Easy to do business with CASE ● Speed ○ Improve order response cycle ○ Improve cumulative parts availability ● Outstanding Dealers ○ Free up dealer resources ○ Gain competitive advantage ● Cost Leadership ○ Reduce parts inventory in supply chain ○ Shrink surplus ● A common theme talked about by Deming and Juran, as well as at Toyota. Mission and Vision need to be embraced on an organizational level and in every action. ○ For instance, there was an example of a company, General Mills, that uses 5S techniques not just on the workfloor but also in offices (they had work outlines for staplers, hole punches, etc...not just brooms/other utensils/tools) ■ By doing this they made sure there was organization wide acceptance of 5s techniques.

12) Operational definitions -be able to list the important considerations for data collection

ALT CAT 12.1

12) Build a performance metrics matrix for a given business application

ALT CAT 12.1 Measures at organizational level, process level, job/performer level Create operational definitions SMART (Simple, measurable, actionable, related, timely) EXAMPLES on Slides 41-45 Chapter 12

11) Describe how leadership and strategic planning are fundamental to the Baldrige criteria, ISO 9000:2000, and Six Sigma.

Although the relative emphasis varies, each of these frameworks views leadership as critical to successful implementation of quality and performance excellence initiatives, and strategic planning activities as a means of focusing the organization and ensuring that longer-term directions are achieved. These strategies, and in any organizational push towards quality, require top level involvement. Without organization-wide acceptance, these tools and awards will be hard to obtain.

11) Explain the role of organization's leadership in governance - the system of management and controls exercised in the stewardship of an organization and its responsibility to the public through the practices of good citizenship, including ethics, protection of public health and safety, and the environment.

An organization's leadership should make ethical decisions and ensure that the business decisions they make reflect the company's values and mission. This could include how and where they source materials from to where they dispose waste to child labor in outsourced overseas factories

10) Compare and contrast the baldridge framework with the Deming Philosophy

Baldridge award better suited with some national cultures than with others Baldridge is better fit to the national culture of japan than US Baldridge framework was initially influenced heavily by Japanese quality management practices, and that changes to the criteria over the years are focused on changed US management culture, not reflecting its current practice These results validate deming's observation related to the Theory of Knowledge, that best practices cannot be copied blindly, but must be understood and adapted intelligently

10) Compare and contrast the Bladridge framework with ISO 9000 and six sigma as quality frameworks

Bladridge = Comprehensive, focuses on performance excellence and is the biggest management framework. Results is key ISO = Focuses on conformity. Do you have standards? Fix nonconformities. Works as marketing tactic. Six Sigma = DPMO and process improvement. DMAIC

8) Capability index (CPL, CPU, Cpk) - formula, be able to explain the results to upper management

CPL = (mean-LSL)/3sigma CPU = (USL-mean)/3sigma Cpk = min (CPU, CPL)

10) Evaluate a given business application utilizing the Bladridge criteria. Identify whether or not the company meets the Baldridge criteria.

Characteristics of role model organizations: Achievement in results Entrepreneurism and Innovation Agility Governance and leadership metrics Work systems and work processes

9 Compare and Contrast a pull system with a push system with respect to use of forecasts vs. market demand, economies of scale vs. economies of scope, overall objective, key performance metrics, impact on raw materials inventory, wip, finished goods

Circle Graph of ACT PLAN DO STUDY (Know it!)

8) Common causes of variation vs. special causes of variation - definitions, identify the problems caused by each and what actions management can take to reduce each

Common causes: Controlled, predictable, routine variation, random noise, unassignable causes of variation Special cause: Uncontrollable, unpredictable, exceptional variation, signal in the data, assignable causes of variation

7) Compare and contrast concurrent engineering with sequential engineering

Concurrent engineering: All major functions involved with bringing a product to market are continuously involved with product development from conception through sales Sequential engineering: Production in linear format. Different steps are done one after another, with all attention and resources focused on that one task.

8) Compare and contrast control vs. capability. Identify tools used for analyzing each

Control = Process is in control if no special cause variation. use control charts Capability: Process is capable if it can meet specification (Cp >1).

8) Create common control charts for variables and attributes, show how they can be constructed, and describe their use in organizations

Control charts for Variables Data: X-bar chart and R-chart: X-bar chart is used to monitor the centering of the process R-chart is used to monitor the variation in the process Overall mean and average range are used to compute the upper and lower control limits for the charts... not sure if we need to know these formulas... PAGE 409-410 Control Charts for Attributes Data: Fraction nonconforming (p) chart: p-chart monitors the proportion, or fraction, of nonconforming units np-charts for number nonconforming: instead of using a chart for the proportion of nonconforming units, an alternative is to plot the number of nonconforming units in each sample. Charts for nonconformances: c-chart and u-chart: USed for monitoring the number of nonconformances per unit Table 8.5 (PAGE 437) Summary of control chart formulas ? Figure 8.49 on PAGE 438 = control chart selection..

8) Six Sigma DMAIC - the Control Phase. Provide an overview of the Phase. Describe the key tools utilized during the Phase.

Control phase overview: Used to maintain improvements, establish standard operating procedures, training, checklist reviews. Key tools = SPC charts, process sigma, quality control charts and response plans, run charts

8) Capability index (Cp) - formula, be able to interpret the values of Cp (=1, >1, <1), and explain the results to upper management

Cp = 1 process is minimally capable of meeting specs

8) Capability analysis - be able to use capability analysis to determine if the process is capable of meeting specifications. Use graphical analysis to determine capability.

Cp = VoC/VoP = (USL - LSL)/6sigma (answers qquestion if process is capable of meeting specs

10) Malcolm Baldrige Framework: Criteria for performance excellence - describe each and identify the relative points assigned to each criteria. Show Framework visually ncluding "leadership Triad" and the "Results Triad"

Criteria for performance excellence (points): Leadership (120): Strategic Planning (85): Customer Focus (85): Measurement, analysis, and knowledge management (90): Workforce focus (85): Operations focus (85): Business results (450): Total points (1000) Important visual on slide 7 chapter 10

8) Variables control charts: XbarR, ImR chart - be able to calculate centerline and control limits for an XbarR chart. [Table of Control Chart Constants will be provided with the exam]. Analyze XbarR and ImR charts, use any given chart to identify specific problems in the underlying production process, be able to identify processes that are under control and processes that are not under statistical control. Analyze XbarR and ImR control charts given computer output. Analyze control charts with the 'questioning process of control charts'

DAMNIT HUCH Xbar Chart: x double bar = sum of all data/number UCL = X double bar + (A2* Rbar) LCL = X double bar - (A2 *Rbar) IMR Chart: R bar = sum of all R's/n UCL = D4*Rbar LCL=D3*Rbar

7) Explain the various applications of Design for Six Sigma across firms DMADV, IDOV,

DMADV: Define Measure Analyze Design Verify

7) Identify advantages of DoE for determining causal relationships

Data driven business decisions: Emphasis is on data analysis over one time experiences Efficient: Determine impact of many factors simultaneously. More efficient than one-at-a-time approach Validity/Rigor: measures main effects, measures interaction effects, improves repeatability Emphasis is on bigger picture: Forces team to brainstorm casual effects, cross-functional team emphasizes concurrent engineering

Table 9.3 Common 6 sigma tools used in DMAIC

Define: Project charter Cost of quality analysis Pareto High level process mapping Analyze: Scatter diagrams detailed process mapping Statistical inference Cause and effect diagrams failure mode and effect analysis Root cause analysis Control: Control charts Standard operating procedures Measure: Run Charts Check Sheets Descriptive statistics Measurement system evaluation Process capability analysis Bench-marking Improve: Design of experiments Mistake proofing Lean production Deming Cycle Seven Management and planning tools

8) Describe the managerial factors that contribute to successful implementation of SPC, including top management commitment, a champion, good initial projects, training, and an accurate measurement system.

Definition of SPC goals Conditions for a successful SPC system: Integration with a formal quality management system, management support, use of information for data-driven decisions and management reviews, ensuring competence of those who will be using the tools

9 Explain the impact of dependent events and statistical fluctuations on the throughput of a plant Cannot run a 'balanced' plant due to:

Dependent events: Special cause Variation Statistical Fluctuations: Common cause variation: Total variability = sum of individual variances. the variability do not average out. 5 machines with an average of 10 parts per hour. What is the throughput of the plant? NOT 10

12)Compare and contrast discrete metrics vs. continuous metrics

Discrete: Only two outcomes (most of time) or consists of a finite number of answers Continuous: Numbers on an interval, they are NOT finite rather infinite

8) Runs test - given computer output, apply the runs test to check for data patterns: clustering, mixtures, trends, oscillation. Show the appropriate steps to the hypothesis test

Ho: Data comes from random distribution Ha: Data exhibits a pattern if p-value is less than common levels of alpha .1, .05, .01 then reject Ho

10) Describe other international quality awards in terms of similarity/differences with the Baldrige framework

European quality award (diagram on slide 26 chapter 10) Canadian Awards for business excellence Australian Business Excellence Award Chinese National Quality Award

7) Catapult experiment - utilize the catapult experiment to describe a factorial experiment, treatment combinations, main effects, interaction effects. Describe key takeaways from the catapult experiment

Factorial experiment ○ In a factorial experiment, all combinations of levels of each factor are considered. The simplest type of factorial experiment is one with two factors at two levels. This would result in 2^2 = 4 possible combinations to test. ● Treatment combinations ○ Each combination of the different levels of the factor ● Main effects ○ measures the difference that a factor has on the response ● Interactions effects ○ the effect of changing one factor has on the level of other factors. ○ Interaction describes a dependency between one factor and the other. ● Key Takeaways (Check ALT CAT KEY) ○ Human error (PEMMMM) ○ Process is susceptible to variation

12) Balanced scorecard - describe the four levels of the original Kaplan & Norton Balanced scorecard. Explain the direction of causation between the four levels. Develop measures for each of the four levels for any given business scenario

Financial measures - If we succeed, how will we look to our shareholders? Measures the ultimate results that the business provides to its shareholders. They include profitability, revenue growth, return on investment, economic value added (EVA), and shareholder value Customer - To achieve our vision, how must we look to our customers? Focuses on customer needs and satisfaction as well as market share. This includes service levels, satisfaction ratings, and repeat business Internal business processes - To satisfy our customers, which processes must we excel at? Focuses attention on the performance of the key internal processes that drive the business. They include such measures as quality levels, productivity, cycle time, and cost Learning and growth - To achieve our vision, how must our organization learn and improve? Directs attention to the basis of a future success - the organization's people and infrastructure. Key measures might include intellectual assets, employee satisfaction, market innovation, and skills development

9 Lean tools. Apply the concept of lean production that focus on the elimination of waste in all forms, including defects requiring rework, unnecessary processing steps, unnecessary movement of materials or people, waiting time, excess inventory, and overproduction. Apply the key tools used in lean production; the 5S's; visual controls; efficient layout and standardized work; pull production; single minute exchange of dies (SMED); total productive maintenance; source inspection; and continuous improvement.

Find

9 Describe the Goal of a company. Compare and contrast the three performance metrics of the GOAL with traditional manufacturing performance metrics. Explain the correct criteria to use when adopting new technology - e.g., new machines and robots on the assembly line

Goal is to make money 3 performance metrics of the GOAL 1) Throughput 2) Inventory 3) Operating Expense Correct criteria when adopting new technology -- ?

7) Taguchi loss function. Compare and contrast the 'goalpost' view of specifications versus the Taguchi loss function.

Goalpost view of specifications, as long as you're within the goalposts, it's acceptable. Taguchi loss function, the further away you get from target, the losses exponentially increase

8) Create performance metrics based on the SMART technique - Simple, Measureable, Actionable, Related (to customer requirements), and Timely. Utilize SMART to describe the process of developing process metrics. For any given business application, identify plausible process metrics

Good measures should come at critical parts of a process or value adding processes.

7) Describe lessons learned in videos of Design for reliability, manufacturing (DFM), recycle, disassembly, remanufacturing, reuse, environment (DFE), and design for excellence (DFX)

Green manufacturing at Xerox: Xerox uses several "design for" techniques that allows for them to reuse parts of their products in new products. Design for manufacturing allows Xerox to reduce its carbon footprint, and saves millions of dollars. Design for assembly allows them to reduce the number of parts in a machine so it can be disassembled at the end of its life. Use of component parts allows Xerox to mix and match parts.

11) Explain to upper management how to deploy policy through hoshin kanri, or policy deployment, that emphasizes organization-wide planning and setting of priorities, providing resources to meet objectives, catchball, and measuring performance as a basis for improving it and is essentially a total quality approach to executing strategy.

Hoshin Kanri (policy Deployment) ALSO KNOWN AS CATCH BAll: management by planning. The idea is to point, or align, the entire organization in a common direction. Policy deployment is essentially a quality-based approach to executing a strategy by ensuring that all employees understand the business direction and are working according to a plan to make the vision a reality. All levels of employees actively participate in generating strategy and action plans to attain the vision. Top management is not involved in creating action plans, only strategic guidelines . (WTF?)

8) Compare and contrast CPL, CPU, Cpk and Cp. Explain to upper management what happens to each as a distribution slides away from the center of the specification limits

If control limits are the same, then the process is centered. CP does not change when the process slides. CPU and CPL change depending on which way the process slides. Max value of Cpk is when process is centered

11) Explain how the management and planning tools can help managers to implement policy deployment.

Incorporate Hoshin Kanri into mission, value , and vision Tools: Annual objectives and action plans

8) Utilize the questioning process of data analysis when conducting process capability

Is process capable? Is it conforming?

9 Explain the kaizen philosophy to upper management. Compare and contrast kaizen with kaizen blitz

Kaizen: Gradual and continuous improvement Focuses on small, gradual, frequent improvements over the long term with minimum financial investment, and participation by everyone in the organization Kaizen Blitz: An intense and rapid improvement process in which a team or a department throws all its resources into an improvement project over a short time period, as opposed to traditional kaizen applications, which are performed on a part time basis

9 Describe the benefits of a Lean approach identifying results that are possible

Lower WIP Reduction in lead time Improvement in productivity Reduction in overtime Lower amount of raw materials Lower finished goods

8) Rational subgroups - utilize rational subgroups to develop an appropriate experimental design for analyzing a process

Maximize variation between subgroups Minimize variation within subgroups Example = Production plant has 3 shifts per day. There are differences between shifts, so data should be taken for each shit (rational subgroup)

11) For a given business application, develop the mission, vision and values or guiding principles for the organization

Mission: Defines the reason for a firm's existence Vision: Where the organization is headed and what it intends to be. Statement of the future that would not happen by itself Guiding principles: Culture and values of an organization. Define attitudes and policies

8) Compare and contrast the two types of mistakes any manager can make

Mistake 1: React to an outcome as if it was a special cause of variation when it is a common cause Mistake 2: Treat an outcome as if it was a common cause of variation when it is a special cause of variation

9 Elements of a lean production system - be able to flow chart this; identify major tasks and activities (need to expand this)

Receiving, Production, finished goods, export

7) Define and compare nominal specifications, target specifications, tolerance

Nominal refers to the ideal dimension or the target value that manufacturing seeks to meet. Tolerance is the permissible variation, recognizing the difficulty of meeting a target consistently

12)List and describe the elements to be included in a project review of the measure phase

One should provide data to: Form a foundation for management review, assess organizational success and performance relative to competitors, and align data to the organization

12) Identify how to link together overall high level strategy, mission, and values with day to day operations

Operations goals should be tied into the overall strategic vision for the company. Employees should also follow company values as they go about their day to day operations

8) Statistical process control methodology - apply the methodology for preparing, collecting, selecting, and analyzing control charts

Prepare: Choose measurement. Determine how to collect data, samples size, and frequency of sampling. set up initial control chart Collect Data: Record data. Calculate appropriate stats. Plot on chart Selecting: Determine trial control limits Analyze and interpret: Determine if in control. Eliminate out of control points. Use as problem solving tool Compute process capability

9 Describe the effect of a lean system on 1) production layout, 2) production technology and equipment, 3) workers, 4) suppliers, 5) batch size

Production layout: JIT TIE fighter, pull system Production technology and equipment: Kanbans, automation, poka-yokes Workers (continually educated, minimal amount of workers, owners of the process) Supplier- Strategic partnerships vendor managed inventory, possible vertical integration Batch size (small, lot sized of one)(based on customization and economies of scope) - Low level of finished goods inventory and WIP

Types of control charts

Quantitative Data (variables charts): Subgrouped data: X (X bar chart) R (R Range chart) S (Std Deviation chart) XR (X bar R chart) XS (C bar S chart) Zone Individuals chart: I or X (Individuals chart (I or X) mR (Moving Range chart (mR)) ImR (Individuals-moving Range Chart) Z-MR (z-moving Range chart) Qualitative Data (Attributes Charts): P Chart (Proportion of defectives in each subgroup) NP Chart (Number of defectives in each subgroup) C chart (Number of defects in each subgroup. Use when subgroup size is constant) U chart (# of defects per unit samples in each subgroup. Use when subgroup size varies)

8) Be able to choose the proper control chart technique, based on an assessment of the situation that needs to be under control and the type of business data - e.g., XbarR, ImR, -s charts, individuals charts, p-charts, np-charts, c-charts and u-charts.

Slide 25 Chapter 8 seems solid

8) Statistical Process Control (SPC) - be able to use time series plots (run charts) to identify patterns in the data. Describe what the run chart looks like for each

Slides 28-31

8) Centerline / lower control limit / lower specification limit / upper control limit / upper specification limit - definitions, use the limits on a control chart to identify problems in processes

Spec limits are determined by customer. Problem in process if out of control centerline=Average LCL = centerline -3 std UCL = Centerline + 3 standard deviations

8) Compare and contrast spec limits with control limits

Spec limits are determined by the customer and control limits are determined through the data in the process

8)Utilize statistical process control as a means to give workers the information that they need on when a process should be adjusted and when it should not be adjusted

Statistical Process Control (SPC): 1) Identification and elimination of special causes of variability 2) Identification and reduction of common causes of variation Can you live with the routine variation that remains? Focus of SPC - REDUCTION OF VARIABILITY Relies on control charts

11) Identify the steps in strategy formulation beginning with determining the organization's mission, vision, and guiding principles. Identify the role of top management and lower-level employees, customer focus, environmental assessment, supplier involvement, and well-established measurement and feedback systems on the Strategic Plan.

Steps: Determine organization's mission, vision, and guiding principles Conduct a SWOT Develop strategic objectives Create an action plan Deploy the strategy

11) Provide a definition of strategic leadership. Identify the role of leaders in creating values and integrating these into the organization's strategy. Include the role of leadership for executives, teams, and individuals.

Strategic leadership refers to a manager's potential to express a strategic vision for the organization, or a part of the organization, and to motivate and persuade others to acquire that vision. Strategic leadership can also be defined as utilizing strategy in the management of employees

11) Provide a definition of strategic planning and the role of strategic planning in the organization

Strategic planning is the process of envisioning the organization's future and developing the necessary goals, objectives, and action plans to achieve that future A strategy provides a road map to achieve a vision of what the organization should and could be 3, 5, or more years into the future

9 Theory of Constraints (ToC) - apply the Theory of Constraints and the process of ongoing improvement towards reducing bottlenecks and improving a process

The Theory of Constraints: 1) Identify the constraint: Find the bottleneck or system constraints (WIP piled up) 2) Exploit the constraint: Make the best use of the constraint. Change the product mix, set the production schedule 3) Subordinate to the constraint: Release materials according to the constraint 4) Elevate the constraint: Improve the performance and reduce its limitation on the system's performance. Alleviate the load on the constraint 5) Repeat for a Process of Ongoing Improvement: Identify, Exploit, Subordinate, Elevate, Go back to Step One

7) Describe how to link together the "house of quality" across a design process: Know how to draw the damn thing!

Tool used to find the Voice of the Customer often using design specifications Technical definition: Developing a basic functional design involves translating customer req. into measurable specifications and into detailed design specifications Important points: Every decision is made to meet needs of customer QFD benefits companies --> Improved communication and teamwork between all parties in value chain. Manufacturing specifications consists of nominal dimensions and tolerances: Nominal is the target value manufacturing seeks to meet tolerance is the permissible variation 4 linked houses of quality: Technical requirements > Component char > Process Operations > Quality Plan

9 7 wastes +8th

Transportation Inventory Motion Waiting time Over processing Overproduction Defects Eight Waste - Under-utilization of Employees

11) Describe key characteristics of strategic leadership

Understand the organization's operating environment and its key relationships with customers, suppliers, partners, and stakeholders Understand the competitive environment, the principal factors that determine success, the organization's core competenciesm and strategic challenges - associated with organizational sustainability gather data pertaining to voice of the customer and voice of process could do a SWOT analysis

8) Voice of the Process vs. the Voice of the Customer - compare and contrast, know how to measure each

Vop= Variability of the process itself (control limits) VoC = What is acceptable to the customer (spec limits)

7) Design of Experiment (DoE) - Utilize DoE as a tool for drawing conclusions regarding controllable process factors and/or comparing methods for process development or improvement.

When looking at the controllable process factors that affect the process, we must remember that optimizing one factor at a time might not always be the best approach, seeing as most of the factors exist cohesively, and are contingent upon one another. Optimizing one factor may not help the others, and in some cases may inhibit them. We must design experiments to test a multitude of impacts throughout the controllable factors and find the best end result, not just the best result for one of the factors. DMAIC does a good job of this because it looks at the process as a whole and requires you to improve throughout, rather than in just one step.

Variables are Attributes are

continuous (Expressed as means and Std.) Performance characteristic that is either present or absent in the product or service under consideration. Discrete and countable (expressed as proportions or rates)

8) Attributes control charts: the p-Chart, np-chart, c-chart, u-chart - use the charts to analyze attributes data in a given business application. Be able to calculate the center line and control limits of a p-chart for a given business application. Describe the differences between a p-chart and an np-chart. Know when to use each type of chart.

p-chart is used to plot proportion of yes/no data Np-chart shows the # of defectives (instead of proportion) need constant sample size pbar = sum of number nonconforming/n UCL= Pbar + (3) * square root ((Pbar (1-Pbar)/n)) LCL= Pbar - (3) * square root ((Pbar (1-Pbar)/n)) C Chart: Nonconformances per unit (collect samples of equal size) U chart: Nonconformances per unit (use if samples are unequal size)

Sources of process variation - identify the major sources of process variation

people, environment, machines, materials, measurements, methods

7) Define concept development

process of applying scientific, engineering, and business knowledge to produce a basic functional design that meets both customer needs and manufacturing or service delivery requirements. This involves developing creative ideas, evaluating them, and selecting the best concept.