SCM Test 2

why is quality important?

- A company's reputation for its quality follows it everywhere - Companies are liable for their faulty products or services that cause damage or injury when used... can lead to legal expenses, large settlements, publicity exposure - Company must meet global quality, design and price expectations to compete in the global economy effectively

1st p- people

- How decisions affect people - Employees, customers, and people that live in the communities in which they operate - Companies must be careful with selecting their suppliers- performance criteria regarding appropriate wages, child labor, and proper work hours - Consumers today increasingly want to know that the materials in the products are safe and produced in a responsible/sustainable way - Transparency with sustainability is key

systems view

- Looking at a products life from design to disposal- including all the resources required - Product/service is a small part of much larger social, economic, and environmental systems - Understand how changes in one system will affect another - EX: dumping chemicals down the drain has negative effects on other systems

process charts

- Use symbols, time and distance to provide an objective and structured way to analyze and record the activities that make up a process - Allow us to focus on value-added activities - Reduce waste and increase % of value added

computer-integrated manufacturing (CIM)

- includes computer-aided design (CAD), computer aided manufacturing (CAM), flexible manufacturing systems (FMSs), ASRSs, AGVs, and robots to provide an integrated and flexible manufacturing process - A design change initiated at CAD terminal, can result in a change being made in the part produced in a matter of minutes!

time function mapping

A modified flowchart with time added on the horizontal axis Nodes indicate activities and the arrows represent the flow direction Identify and eliminate waste such as extra steps, duplication, delay

vision systems

Combine video cameras and computer technology- often used in inspection roles - Important in food-processing and manufacturing - Vision inspection can be performed by humans- but vision systems are more accurate

3rd p- profit

Economic sustainability= appropriately allocating scarce resources to make a profit - How companies remain in business Social and environmental sustainability do not exist without a profit

7 steps to building the house of quality

Identify customer wants Identify how the good/service will satisfy the customer wants Relate customer wants to product hows Identify relationships between the firms "hows"... how do our hows tie tg? Develop importance ratings (using customer's importance ratings) Evaluate competing products Determine desirable technical features- your performance vs competitors performance against these features

how to increase sales and reduce cost

Increase SALES: - Improved reputation for quality products - Flexible pricing - Improved response Reduced COST: - Increased productivity - Lower rework, and scrap costs - Lower warranty costs

profit

Increases in quality helps firms increase sales and lower their costs

service blueprinting

Process analysis technique that focuses on the customer and the provider's interaction with the customer - Maps out the entire interaction with a customer Organized by levels; each level suggests different management issues Notes potential failure points

2nd p- planet

Reducing the environmental impact of operations (many ways to do this) carbon footprint - measure of total greenhouse gas emissions caused directly or indirectly by an organization, a product, an event, or a person

distinct departments in the traditional US approach

Research and development department→ engineering department → manufacturing engineering department → production department

commons

Resources that do not have a market price- are owned by the public - misallocated - fish depletion in waters, "just a few more fish will not hurt" solutions: - Moving some of the common to private property - Allocation of rights (establishing fishing boundaries) - Allocation of yield (only so many fish can be harvested)

flow charts

Schematic or drawing of the movement of material, product or people Helps understanding, analysis and communication of a process

histogram

Shows range of values and the frequency with which each value occurs Visual presentation of the distribution may provide insight into causes of variation

central limit theorem

The theoretical foundation for x-charts, which states that regardless of the distribution of the population of all parts or services, the distribution of Xs tends to follow a normal curve as the number of samples increases

value-stream mapping

Variation of time-function mapping; takes an expanded look at where value is added and NOT added in the entire production process - Extends analysis all the way back to suppliers

robot

a flexible machine with the ability to hold, move or grab items. It functions through electronic impulses that activate motors and switches

assembly chart

a graphic schematic form of how a product is assembled - Words/numbers and diagram vs. picture/drawing

product-by-value analysis

a list of products, in descending order of their individual dollar contribution to the firm, as well as the total annual dollar contribution of the product

SERVQUAL

a measurement scale for service quality that compares service expectations with service performance

house of quality

a part of the quality function deployment process that utilizes a graphic planning matrix to relate customer "wants" to "how" the firm is going to meet those wants - Managers must define this relationship in order to design products/processes with features desired by customers

Quality function deployment (QFD)

a process for determining customer requirements (customer "wants") and translating the customer desires into the target design - Used early in the design process to help determine what will satisfy the customer and where to station quality efforts

group technology

a product and component coding system that specifies the size, shape, and type of processing; allows similar products to be grouped - When families of parts are identified- activities and machines can be group to minimize set ups, and material handling

Total Quality Management (TQM)

a quality emphasis that encompasses the entire organization, from supplier to customers -Emphasizes a commitment by management to have a continuing companywide drive toward excellence in all aspects of products and services important to customer

automative identification system

a system for transforming data into electronic form (bar codes) where can be easily manipulated

Flexible Manufacturing System (FMS)

a system that uses electronic signals from a centralized computer to automate production and material flow (robots, ASRSs, AGVs) - FLEXIBLE because they are controlled by easily changed electronic signals... operators can easily load new programs to produce different products

virtual reality

a visual form of communication in which images substitute for the real thing but still allow the user to respond interactively - Develop 3D layouts of stores or amusement parks

Radio Frequency Identification (RFID)

a wireless system in which integrated circuits with antennas send radio waves RFID tags provide unique identification that enables the tracking and monitoring of parts, people and pets- anything that moves No line of sight required

manufacturability and value engineering

activities that are concerned with the improvement of design and specifications at the research, development, design and pre-production stages - Reduced complexity of the product - Reduction of environmental impact - Cost reduction - Improved job design and job safety

low-cost

affordable, lower prices than competitors- but still has high quality and value - EX: Taco Bell has a menu at low costs and high values

assembly drawing

an exploded view of the product, three dimensional, parts are shown in relation to one another to show how to assemble the unit

work order

an instruction to make a given quantity of a particular item, to a given schedule (Ex- a ticket a waiter writes in your favorite restaurant)

process strategy

an organization's approach to transforming resources into goods and services GOAL: create a process than can produce offerings that meet customer requirements within cost and other management constraints

life cycle assessment

analysis of environmental impacts of products from the design stage through end-of-life - Goal: make decisions that help reduce the environmental impact of a product throughout its entire life

PCN analysis

analysis that focuses on the ways in which processes can be designed to optimize interaction between firms and their customers

migration of existing products

build on product platforms

engineering change notices

change or modification of some aspect of the product's definition or documentation (engineering drawing or bill of materials)

enhancements

changes in color, size, weight, taste or features Enhancing company's already existing products is faster and less risky than starting from scratch

crossover charts

chart of costs that compare processes by locating the point where the total cost of the processes changes

repetitive process

classic assembly line; uses modules to produce something larger - fast food firms - most modules are used and assembled to get a customizable burger

variable inspection

classifications of inspected items as falling on a continuum scale, such as dimensions or strength

attribute inspection

classifies items as being either good or defective - Does not address degree of failure

time-based competition

competition based on time, rapidly developing products and moving them to the market

Automated Storage and Retrieval System (ASRS)

computer-controlled warehouses that provide for the automatic placement and withdrawal of parts and products into and from designed places in a warehouse Commonly used in distribution centers of retailers like Walmart and Tupperware

source inspection

controlling or monitoring at the point of production or purchase - Employee empowerment- individuals self check their own work

alliances

cooperative agreements that allow firms to remain independent but use complementing strengths to pursue strategies consistent with their individual missions - Reduce risks and enhance human/capital resources available

shared value

developing policies and practices that enhance the competitiveness of an organization while advancing the economic and social conditions in the communities in which it operates

engineering drawing

drawing that shows the dimensions, tolerances, materials, and finishes of a component (ONE item on the bill of materials)

automated guided vehicles

electronically guided and controlled carts used in manufacturing and warehousing to move parts and equipment - Also used in agriculture to distribute feed - Offices to move mail

joint ventures

firms establishing joint ownership to pursue new products or markets

poka yoke

foolproof device or technique that ensures the production of good units every time - EX: the french fry scoop at Mcdonald's ensures correct portion sizes

acceptance sampling

form of testing that involves taking random samples of "lots" or batches of finished products and measuring them against predetermined standards - quality of sample is used to judge all items in the lot

Life Cycle Assessment

formal evaluation of a products environmental impact

control charts

graphic presentation of data over time that shows upper and lower limits for the process we want to control - New data can be quickly compared with old data - Take samples of process output and plot averages of each sample on a chart (time on horizontal axis)

control chart

graphical representation of process data over time - A process is operating in statistical control when the only source of variability is natural causes... performance is now predictable

quality circle

group of employees who meet regularly to solve work-related problems - Members receive training in group planning, problem-solving, statistical quality control - Cost-effective way to increase productivity and quality

4 phases of product life cycle

introduction, growth, maturity and decline

Employee Empowerment

involving employees in every step of the production process so that the added responsibility and authority is moved to the lowest level possible in the organization - Those dealing directly with the system understand it better than top management would

bill of materials

lists the hierarchy of components, their description and the quantity of each required to make one unit of product

route sheet

lists the operations necessary to produce the component with the material specified in the bill of materials

computer numerical controls

machinery with its own computer and memory - Allows more complex and precise items to be made

Corporate Social Responsibility

managerial decision making that considers environmental, societal, and financial impacts

natural variations

many sources of variation that occur within a process, even one that is in statistical control - Form a pattern called a "distribution" that must remain within specified limits

Sustainability

meeting needs of the present without compromising ability of future generations to meet their needs

sustainability

meeting the needs of the present without compromising the ability of future generations to meet their needs - Systems view, commons, and triple bottom line

Pareto charts

method of organizing errors, problems or defects to help focus on problem-solving efforts - Plots problems in descending order of frequency - Indicates which problems may yield the greatest payoff

statistical process control

monitors standards, makes measurements, takes corrective action as a product or service is being produced

Differentiation

offering a distinctive, unique product (or service)

process focused strategy

organized around specific activities that provide a high degree of product variability as products move between the specialized processes - hospital

robust design

product is designed so that small variations in production or assembly do not adversely affect the product (may find you can produce it cheaper/faster/better)

modular design

products designed in easily segmented components - Customization allows customers to mix and match to their own tastes - Makes product development, production and changes easier

quality robust

products that can be produced uniformly and consistently in an adverse manufacturing and environmental conditions - REMOVE effects of adverse conditions instead of removing the causes - So... small variations and process do not destroy quality

mass customization focus

rapid, low-cost production that caters to constantly changing unique customer desires - What the customer wants, when they want it economically - CHALLENGING - EX: Spotify and apple music allow you to download music and make your own playlists

rapid response

responding quickly to changing customer demands/trends - EX: Toyota has driven the speed of product development down to under 2 years when the average is over 2 years for other companies... they get new cars to market first

benchmarking

selecting a demonstrated standard of products, services, costs, or practices that represent the very best performance for processes or activities very similar to your own - Develop a target to shoot for and then develop a benchmark against which to compare your performance

process chain

sequence of steps that accomplishes an activity or purpose of providing value to process participants (participants could be service providers, customers or manufacturers)

process domain

set of activities that it has control over 1. direct interaction = interaction between participants 2. surrogate interaction - one participant is acting on another's resources 3. independent processing - acts on resources without interaction of another participant, participant has maximum control

concurrent engineering

simultaneous performance of the various stages of product development

product life-cycle management

software programs that tie together many phases of product design and manufacture decisions can be performed more creatively, faster and more economically when integrated

closed- loop supply chains

supply chains that consider forward and reverse product flows over the entire life cycle - Firms can no longer sell a product and then just forget about it - MUST design and implement an end-of-life system for the physical return of products that facilitate recycling or reuse

value analysis

takes place during the production process, seeks improvements that lead to either a better product, or a product made more economically, or a product with less environmental impact

product development teams

teams charged with moving from market requirements for a product to achieving project success - Success is more likely in an open environment where open contributions can be made

run test

test used to examine points in a control chart to see if nonrandom variation is present - In general, a run of 5 points above or below target may suggest an assignable variation is present - flag is raised

process capability

the ability of a process to meet design specifications, set by engineering design or customer requirements - 2 measures: Process capability ratio and process capability index

SPC

the application of statistical techniques to ensure that processes meet standards - Certain degree of variability is expected in processes

make-or-buy decisions

the choice between producing a component or service vs. purchasing it from an outside source - Variations in cost, delivery times, quality.... Decision is critical

product focused strategy

the facility is organized around products - EX: Glass, paper, beer, lightbulbs, potato chips

assignable variation

the process that can be traced to a specific reason - Machine wear, fatigued or untrained workers

additive manufacturing

the production of physical items by adding material layer upon layer - "3-D printing" - design testing, prototypes - May be more efficient than removing material; minimal assembly, low inventory, reduced time to markets, innovative design - The future of personalized mass markets!

product decision

the selection, definition and design of products - OBJECTIVE: develop and implement a product strategy that meets the demand of the marketplace with a competitive advantage - Via- differentiation, low cost, rapid response

configuration management

the system by which a product's planned and changing configurations are accurately identified and control and accountability of change are maintained

quality

the totality of features and characteristics of a product or service that bears on its ability to satisfy stated or implied needs

process control

the use of information technology to monitor and control a physical process - EX: Process control is used to measure the moisture content and thickness of paper as it travels over a paper machine at thousands of feet per minute

service recovery

training and empowering frontline workers to solve problems immediately - EX: Training hotel workers on how to react to issues people may encounter

checklists

type of poka-yoke to ensure consistency and completeness in carrying out a task - EX: To do list

computer-aided design (CAD)

use of computers to interactivity design products, make numerous model options and prepare engineering documentation - Faster development, better products, cheaper

computer-aided manufacturing (CAM)

use of specialized computer programs to direct and control manufacturing equipment - When CAD info is translated into instructions for CAM→ powerful duo for manufacturing efficiency (fewer defective products, less rework)