Chapter 8

DMADV methodology

this methodology is used when the company wants to create a new product design or business process that is more predictable and defect free

changeover time

time taken to adapt and modify the manufacturing equipment and systems to produce a different product or a new batch of the same product

setup time

time taken to prepare and format the manufacturing equipment and systems for production

uniform plant loading

Planning up to capacity in earlier time periods to meet demand in later time periods.

components of LEAN Manufacturing

1. Waste Reduction 2. LEAN Layouts 3. Inventory, Setup Time, & Changeover Time Reduction 4. Small Batch Scheduling and Uniform Plant Loading 5. LEAN Supply Chain Relationships 6. Workforce Empowerment 7. Continuous Improvement

seven tools of quality control

1. check sheets 2. histograms 3. Pareto analysis 4. cause & effects diagrams 5. flow diagram 6. control charts 7. scatter diagram

Cost of Quality

An approach that supports a company's efforts to determine the level of resources necessary to prevent poor quality, and to evaluate the quality of the company's products and services

DOWNTIME

Defects Overproduction Waiting Non-Utilized Talent Transportation Inventory Motion/Movement Extra-Processing

DMADV (what it stands for)

Define Measure Analyze Design Verify

DMAIC

Define Measure Analyze Improve Control

Joseph juran

Defined quality as "fitness for use" Developed concept of quality planning, quality control, quality improvement

Kaoru Ishikawa

Developed cause-and-effect diagrams. Identified concept of "internal customer".

small batch scheduling can be facilitated through the use of

Kanbans meaning signal or card in Japanese

six sigma was originated by

Motorola in 1980s

non-value added process

Process steps that take time, resources, or space, but do not add value to the product or service

value added process

Process steps that transform or shape a product or service which is eventually sold to a customer.

______ for all people must exist for an organization to be at its best

Respect

buyer's risk

The buyer accepts a shipment of poor-quality units because the sample falsely provides a positive result against the acceptance standard (type II error)

supplier's risk

The buyer rejects a shipment of good-quality units because the sample quality level did not meet the acceptance standard (type I error)

Acceptance sampling

When a shipment is received from a supplier, a statistically significant representative sample is taken and measured against the quality acceptance standard

six sigma

a disciplined, statistical-based, data-driven methodology for identifying and removing the causes of defect and minimizing variability in manufacturing and in guess processes

Total quality management

a management philosophy based on the principle that every employee must be committed to maintaining high standard of work in every aspect of a company's operations

make-to-order

a manufacturing strategy in which manufacturing starts only after a customer's order is received

engineer-to-order

a manufacturing strategy in which the product is designed, engineered and built to the customer's specifications after receipt of the order evolution of make-to-order involves building a unique product every time

the 5 how's

a questioning technique for drilling down into the details of a potential solution to a known problem

the 5 why's

a questioning technique for identifying the root cause of the problem

cost of good quality

appraisal costs and prevention costs

setup time and changeover time

both considered a waster as they are times when the equipment is not performing its intended function non value added operations

assemble to order is a hybrid strategy of

both make-to-stock and make-to-order

Philip crosby

coined the phrase "quality is free" as defects are costly. introduced the concepts of zero defects, and focus on prevention

cost of quality can be divided into

cost of good quality and cost of poor quality

appraisal costs

costs associated with the evaluation of purchased materials, processes, products and services to ensure that they conform to specifications

project process

creates a custom product for each customer. High customization

pull approach system

each stage in the supply chain requests quantities needed from the previous stage no excess inventory generated & uncovers production problems

3) Inventory & Setup / Changeover Time Reduction

excess inventory takes up space and costs money to hold, maintain, protect, secure and insure

line process

has standard products with a limited number of variations moving on an assembly line through stages of production

Six Sigma focuses on

improving the quality of process outputs by identifying and removing the causes of defects and minimizing variability in manufacturing and business processes

continuous process

is used to manufacture such items as gas, laundry detergent and chemicals inflexible processes high capital investment

types of manufacturing strategies

make-to-stock make-to-order assemble-to-order engineer-to-order

6. Workforce Empowerment

managers must support LEAN Manufacturing by providing subordinated with the skills, tools, time and other necessary resources

batch process

manufactures a small quantity of an item in a single production run

assemble-to-order

manufacturing strategy where products ordered by customers are produced quickly and are customizable to a certain extent

DMAIC methodology

methodology is used when the company wants to improve an existing products or business process

caron-neutral

offsetting the carbon footprint of a firm's operations

the goal is not to reduce the number of ____ in an organization, it is to use ___ ___ more wisely

people; people resources

operations management

refers to managing the process to convert resources unto goods and services, in alignment with the company's business strategy as efficiently and effectively as possible

prevention costs

related to the design, implementation and maintenance of the quality management system

traditional inventory approach

supply chains work as "push" systems, and inventory is carries to cover up problems

voice of customer (VOC)

term used in business to describe the in-depth process of capturing internal and external customer's stated and unstated expectations, preferences, likes, and dislikes

4. Small Batch Scheduling and Uniform Plant Loading

the ideal schedule is to produce every product as quickly as possible and a the same rate as customer demand

value definition

the inherent worth of a product as judged by the customer which is reflected in its selling price and market demand

manufacturing management

the management of all the processes which are involved in manufacturing

intermittent processes

used to produce a large variety of products with different processing requirements in lower volumes

repetitive processes

used to produce one, or a few, standardized products in high volumes

1. waste reduction

wait times, inventories, material and people movement, processing steps, variability

W. Edwards Deming

widely considered the father of TQM, creator of the plan do check act model

manufacturing processes are put into 2 categories

- intermittent process - repetitive processes

LEAN history

- starting in the 1910's by Henry Ford's mass production line -in the 1940s taichii oho and shigeo Shinto created the Toyota Production System (TPS) - the term LEAN was first coined by John Krafcik in 1988 and the definition was expanded in the 1990 book

components of LEAN

-LEAN manufacturing -total quality management -respect for people

key principles of TQM

-Management Commitment -Employee Empowerment -Fact Based Decision Making -Continuous Improvement -Customer Focus

categories measured by Malcolm baldrige national quality award

-leadership -strategic planning -customer and market focus -information and analysis -Human Resource focus -process management -business results

In the 1990s, Supply Chain Management combined:

-quick response - efficient consumer response - just-in-time - keiretsu relationship

the five-S's

-sort: keep only necessary items -straighten: organize and arrange the be efficient -shine: clean work area -standardize: schedule regular cleaning/maintenance -sustain: stick to the rules

Malcolm baldric national quality award objectives

-stimulate firms to improve -recognize firms for quality achievements -establish guidelines so that organizations can evaluate their improvement and provide guidance to others

six sigma certification levels (worst to best)

-yellow belt -green belt -brown belt -black belt -master black belt

typically, only __ to __ % of the process steps or activities are value added

1 to 10%

six sigma methodology

1. quality is defined by the customer 2. use of statistical technical tools 3. employee involvement

2. LEAN Layouts

move people and materials when and where needed and as soon as possible ex. subway or jersey mikes

LEAN

an operating philosophy of waste reduction and value enhancement

cost of bad quality

internal failure costs and external failure costs

5. LEAN Supply Chain Relationships

mutual dependency and benefits occur among these partners developed with key customers and key suppliers to remove waste, reduce cost and improve quality and customer service

external failure costs

occur when the product or service does not meet the designed quality standards

internal failure costs

occur when the product or service does not meet the designed quality standards

make-to-stock

to manufacture products for stock based on demand forecasts will prevent excess inventory&avoid stockouts

manufacturing

to process or make raw materials or components into a finished product