Supply Chain Chapter 8 operations management

What is the term VOC voice of the customer?

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

What is make to order?

the strategy of producing customized products and services air crafts, bridges, ocean vessels

What is Lean Layouts?

moving people and materials when and where needed visual fix

What is the role of workers?

perform tasks and actively pursing company goals

What is the Role of Management?

provide an atmosphere of cooperation Empower workers to take action based on their ideas Develop incentive systems to recognize and reward LEAN behaviors

What is Assemble to Order?

s a manufacturing strategy where products ordered by customers are produced quickly and are customizable to a certain extent. attempts to combine MTS and MTI

Six sigma is a ______ and ______ approach to drive a near perfect quality goal of "Zero Defect"

structured data driven

Define these two costs of good quality: Appraisal Costs and Prevention Costs

Appraisal Costs are associated with the evaluation of purchased materials, processes, products, and services to ensure that they conform to specifications. Prevention Costs are related to the design, implementation, and maintenance of the quality management system. They are planned, and experienced before actual products or materials are acquired or produced.

What are the seven tools of quality control?

Check Sheets Histogram Pareto Analysis Cause & Effect Diagrams Flow Diagram Control Charts Scatter Diagrams

What is continuous improvement (kaizen)

Continuous approach to reduce process, delivery, and quality problems, such as machine breakdown problems, setup problems, and internal quality problems

What does the acronym DOWNTIME stand for

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

What is the purpose of DMAIC Methodology and what is the acronym?

Define Measure Analyze Improve Control data driven quality strategy for IMPROVING products & processes

Define these two costs of poor quality: Internal Failure Costs & External Failure Costs

External Failure Costs occur when the product or service does not meet the designed quality standards, but is not detected until after the product or service is delivered to the customer

LEAN is composed of three components working in unison

LEAN Manufacturing Total Quality Management Respect for PEOPLE

the manufacturing process can be grouped into two broad categories

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.

who defined quality as fitness for use developed concept of the cost of quality

Joseph Juran

What are the four major manufacturing strategies?

Make to Stock (MTS) Make to Order (MTO) Assemble to Order (ATO) Engineer to Order (ETO)

who coined the concept of zero defects and the quote quality is free and defects are costly

Philip Crosby

What are the 5 s's of Lean layouts?

Sort Straighten Shine Standardize Sustain

What was the objectives of the Malcolm Baldrige National Quality Award

Stimulate firms to improve Recognize firms for quality achievements Establish guidelines so that organizations can evaluate their improvement

What is suppliers risks and buyers risk for the using sampling?

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) Buyers'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)

Traditional Approach vs Pull Approach

Traditional Approach: Supply chains work as "push" systems, and inventory is carried to cover up problems Pull Approach: Each stage in the supply chain requests quantities needed from the previous stage. no excess inventory is generated

Who was the father of TQM and creator of plan do check act model

W.Edwards Deming

There are 7 components of LEAN manufacturing

Waste Reduction LEAN Layouts Inventory, Setup Time, & Changeover Time Reduction Small Batch Scheduling and Uniform Plant Loading LEAN Supply Chain Relationships Workforce Empowerment Continuous Improvement

Some inventory may be necessary but _________

excess inventory is a waste Reducing inventory can free up capital and reduce holding costs

What does waste reduction encompass

firms reduce costs and add value by eliminating waste from the production system like wait times, inventories, material and people movement.

What are three foundational aspects of six sigma?

1. Quality is Defined by the Customer 2. Use of Technical Tools 3. People Involvement

What is 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. Any cost that would not have occurred if quality was perfect contributes to the cost of quality

What problem does Uniform Plant Loading attempt to fix?

Demand exceeds capacity at points in planning horizon Matching the production plan to follow demand exactly can contribute to excess inventory or shortages of inventory. Uniform plant loading: planning up to capacity in earlier time periods to meet demand in later time periods

Small batch scheduling can be facilitated through the use of _______

Kanbans : Kanban's authorize production or the movement of materials to the next workstation.

who developed the first tools in the quality management process, the cause and effect diagram which is also called IShikawa or fishbone

Kaoru Ishikawa

What is workforce commitment

Managers must support LEAN Manufacturing by providing subordinates with the skills, tools, time, and other necessary resources to identify problems and implement solutions

As volume goes up what happens to manufacturing and procurement costs Inventory and warehousing costs and Transportation costs

Manufacturing and Procurement costs go DOWN Inventory and Warehousing costs go UP Transportation costs go DOWN

What is acceptance sampling?

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

Total Quality Management (TQM)

a management philosophy that focuses on satisfying customers through empowering employees to be an active part of continuous high standards of improvement

What is Project Process?

creates a custom product for each customer. High customization

key customers and key suppliers form LEAN supply chain relationships to _____

they can easily exchange information, demand data, and the visibility of status.

respect for all people must exist in an organization to be at its best. Therefor ordinary workers are given _______

greater responsibility

What is the purpose of DMADV Methodology and what is the acronym

Define, Measure, Analyze, Design, Verify data driven quality strategy for designing products

Six sigma was originated by _____

Motorola

What is Line Process?

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

Lowering inventory will help to expose the _______

hidden problems

What is Make to Stock (MTS)?

goods made and held in inventory in advance of customer orders challenge of MTS is to avoid having excess inventory ex: foods textiles

What is Six Sigma?

is a disciplined, statistical-based, data-driven methodology for identifying and removing the causes of defects (errors) and minimizing variability in manufacturing and in business processes. It was originally developed by Motorola.

What is Engineer to Order?

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

What is lean production?

is an operating philosophy of waste reduction and value enhancement. It was originally created as the Toyota Production System (TPS) by key Toyota executives.

What is Continuous Process?

is used to manufacture such items as gasoline, laundry detergent and chemicals. Inflexible processes. High capital investment

What is the issue with large batches? What is the solution

large batches can exacerbate the bullwhip effect as production in large batches creates an uneven workload The ideal schedule is to produce every product as quickly as possible and at the same rate as customer demand Small batch scheduling increases flexibility and throughput times in manufacturing go down --creates a smooth workload

What is Batch Process?

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

Why is setup time and changeover time considered a waste?

they are times when the equipment is not performing its intended function Setup Time is the time taken to prepare and format the manufacturing equipment and systems for production. Changeover Time is the time taken to adapt and modify the manufacturing equipment and systems to produce a different product or a new batch of the same product.

What is the Role of Supplier?

to build long term supplier relationships The goal is to have the fewest number of high quality suppliers possible without unnecessarily increasing risk

Companies must develop a manufacturing strategy that suits the ________ that they produce, their ____________ and their ___________

types of product customers's expectations, strengths