BUSOBA 3230 Exam 3

15

(X-bar/R-Chart) However, when sample sizes exceed __ or so, it would be better to use X-bar charts with standard deviation (sigma) rather than X-bar charts with the range R, as used in c-Charts

5

(X-bar/R-Chart) Samples sizes greater than _ give narrower process control limits and thus more sensitive

25

(X-bar/R-Chart) To set up the charts, however, prudence and statistics suggest that __ or so sample sets to be analyzed.

Dimensions of Quality

1. Performance 2. Features 3. Reliability/ Durability 4. Serviceability 5. Aesthetics 6. Perceived Quality

Sample Size (X-bar and R- Charts)

1. The sample needs to be taken within a reasonable length of time; otherwise; the process might change while samples are taken. 2. The larger the sample, the more it costs to take. These two things are reasons why it is preferable to keep the ______ ______ small.

Four Main Issues to Address when Creating a Control Chart

1. The size of the samples 2. The number of samples 3. Frequency of samples 4. Control Limits

Seven Types of Waste of Lean Production

1. Waste from overproduction 2. Waste of wasting time 3. Transportation waste 4. Inventory waste 5. Processing waste 6. Waste of motion 7. Waste from product defects

Work Breakdown Structure (WBS)

A hierarchy of projects, tasks, subtasks, and work packages

Lean Procurement

A key to _____ __________ is automation. The term e-______________ relates to automatic transaction, sourcing, bidding, and auctions using Web0based applications, and the use of software that removes human interaction and integrates with the financial reporting of the firm. The key to it is visibility. Suppliers must be able to "see" into the customers' operating, and customers must be able to "see" into their suppliers' operations

Defects per Million Opportunities (DPMO)

A metric used to describe the variability of a process. The calculation of ____ requires # of Units, # of Defects, and # of opportunities for error per unit. The formula is as follows ____ = (# of Defects) / (# of Opportunities for Error Per Unit x # of Units)

Early Start Schedule

A project schedule that lists all activities by their early start times.

Late Start Schedule

A project schedule that lists all activities by their late start times. This schedule may create savings by postponing purchases of material and other costs associated with the project.

Efficiency

A ratio of actual output of a process relative to some standard. Also, being "_________" means doing something at the lowest possible cost.

200

A rule of thumb when setting up a p-chart is to make the sample size large enough to expect to count the attribute twice in each sample. So an appropriate sample size, if the defective rate were approximately 1%, would be _________ units

Pure Project

A self-contained team works full time on the project.

Project

A series of related jobs usually directed toward some major output and requiring a significant period of time to perform

Project Milestone

A specific event in a project.

Six Sigma

A statistical term used to describe the quality of goal of no more than 3.4 defects out of every million units. Also refers to a quality improvement philosophy and program. OR Refers to the philosophy and methods companies such as GE and Motorola use to eliminate effects in their products and processes.

Immediate Predecessor

Activities that need to be completed immediately before another activity

Process Velocity

Also known as throughput ratio, it is the ratio of the value-added time to the flow time.

Sampling by Attributes

Alternatively, a lawnmower's torque and horsepower can be measured as an amount of deviation from a set standard, this type of measurement is known as __________ __ ___________

X-bar Chart, X-bar

An _-___ _____ is simple a plot of the means of the samples that were taken from a process. _ is the average of the means

R-chart, R, R-bar

An _-_____ is a plot of the average of the range within each sample. The range is the difference between the highest and lowest numbers in that sample. _ values provide an easily calculated measure of variation used, like a standard deviation. _-___ is the average of the range of each sample.

Malcom Baldrige National Quality Award

An award established by the U.S. Department of Commerce given annually to companies that excel in quality. (1987)

Matrix Project

Attempts to blend properties of functional and pure project structures. Each project utilizes people from different functional areas. The project manager (PM) decides what tasks will be performed and when, but the functional managers control which people and technologies are used. If the _____ form is chosen, differentiations projects (rows of the _____) borrow resources from the functional areas (columns).

Lean Six Sigma

Combines the implementation and quality control tools of Six Sigma and the inventory management concept of lean manufacturing. Lean Manufacturing achieves the high-volume production and minimal waste through the use of just-in-time inventory methods. The term lean in this context is a focus of reducing cost by lowering raw material, work-in-process, and finished goods inventory to an absolute minimum. Lowering inventory requires a high level of quality because processes need to be predictable since extra inventory is not available. Reducing variability is a key driver in successful ____ ___ _____ programs.

Conformance Quality

Degree to which the product or service design specifications are met. The activities involved in achieving ___________ are of tactical, day-to-day nature. It should be evident that a product or service can have high design quality but low ___________ _______, and vice versa.

Green Belts

Employees who have enough Six Sigma training to participate in improvement teams or, in some companies, to work individually on a small-scale project directly related to their own job.

Cost of Quality

Expenditures related to achieving product or service quality, such as the costs of prevention, appraisal, internal failure, and external failure. From the pursuit POV, it means all of the costs attributable to the production of quality that is not 100% perfect. A less stringent definition considers only those costs that are the difference between what can be expected from excellent performance and the current costs that exist. They are typically classified into four types: Appraisal costs, Prevention costs, Internal Failure costs, and External Failure costs.

Time-Cost Models

Extension of the critical path models that considers the trade-off between the time required to complete an activity and the cost. This is often referred to as "crashing" the project.

ISO 9000

Formal standards for quality certification developed by the International Organization for Standardization.

Quality at the Source

Frequently discussed in the context of conformance quality. This means that the person who does the work takes responsibility for making sure that his or her output meant its specifications. Where a product is involved, achieving the quality specifications is typically the responsibility of the manufacturing management; in a service firm, it is usually the responsibility of the location operations manager.

Frequent

How often to take a sample is a trade-off between the cost of sampling and the benefit of adjusting the system. Usually, it is best to start off with __________ sampling of a process and taper off as confidence in the process increases. (X-bar/R-Chart)

Sample Size (p-chart)

If __________ _____ varies, the sample standard deviation and upper and lower process control limits should be recalculated for each sample.

Variables Sampling

In ___________ __________, we measure the actual weight, volume, number of inches, or other ________ (don't answer for this, one of the words is used in the main term) measurements, and develop control charts to determine the acceptability or rejection of the process based on those measurements.

Range

In practice, the actual standard deviation of the process is not know. For this reason, an approach that uses a substitute measure called the _____ is used.

Supply Chains

In the context of ______ ______, lean production refers to a focus of eliminating as much waste as possible

Customer Value

In the context of learn production, is defined as something for which the customer is willing to pay

Functional Project

In this structure, team members are assigned from the functional units of the organization. The team members remain a part of their functional units and typically are not dedicated to the project.

Master Black Belts

Individuals with in-depth training on statistical tools and process improvement. They perform many of the same functions as black belts but for a larger number of teams.

Black Belts

Individuals with sufficient Six Sigma training to lead improvement teams; individuals who coach or actually lead a Six Sigma improvement team.

Design Quality

Inherent value of the product in the marketplace

Lean Production

Integrated activities designed to achieve high-volume, high-quality production using minimal inventories of raw materials, work-in-process, and finished goods. It is the most significant operations and supply management approach of the past 50 years.

Productivity

Is the ratio of output to input; a measure of how well resources are used.

Reduced

It is generally accepted that as variation is _______________ (reduced or increased), quality is improved.

Lean Logistics

Lean concepts can be applied to the functions associated with the movement of material through the system. Some of the key areas include optimized mode selection and pooling orders; combined multistop truckloads; optimized routing; cross docking; import/export transportation processes; and backhaul minimization. Just as with the other areas, these _________ (Word used in term/DNA) functions need to be optimized by eliminating non-value-adding activities while improving the value-adding activities.

External Benchmarking

Looking outside the company to examine what excellent performers inside and outside the company's industry are doing in the way of quality. It involves two steps: 1. Identify processes needing improvement 2. Analyze data

More

Manufacturing operations, compared to service operations, are far ____ controllable (more or less).

Attributes

Measurement by ___________ means taking samples and using a single decision - the team is good or it is bad

Leaning

Moves that are not needed, unnecessary processing steps, and excess inventory in the supply chain are targets for improvement during the _______ process

Activities

Pieces of work within a project that consume time. The completion of all the _________ of a project marks the end of the project.

Project Management

Planning, directing, and controlling resources (people, equipment, material) to meet the technical, cost, and time constraints of a project.

Poka-yokes

Procedures that prevent mistakes from becoming defects. They are commonly found in manufacturing but can also be used in service processes

Quality

Process control is concerned with monitoring ________ while the product or service is being produced

Variables

Quality characteristics that are measurable; such as the diameter or weight of a part, are also known as _____________

Upper and Lower Specification Limits

Say for example, a manufacturer of a car engine are given the acceptable dimensions for the parts. One of the parts has dimensions of 10.00 inches +/- 0.02 in. 9.98 and 10.02 would be examples of acceptable _______ ___ ______ _________________ ________

Value Chain

Some consultants in the industry have coined the phrase _____ ______ to refer to the concept that each step in the supply chain processes that deliver products and services to customers should create _____ (Word is part of the main phrase, do not repeat when answering)

Three (3)

Standard practice in statistical process control for variables is to set control limits _____ standard deviations above the mean and ______ standard deviations below. This means that 99.7 percent of the sample means are expected to fall within these process control limits. Therefore, if one sample mean falls outside the obviously wide band, we have strong evidence that the process is out of control.

True

T/F: Uncertainty in task times, uncertainty in demand, and customers' production roles are all sources that cause more uncertainty and variability within service operations.

Statistical Process Control (SPC)

Techniques for testing a random sample of output from a process to determine whether the process is producing items within a prescribed/preselected range.

Value Stream

The ______ _______ consists of the value-adding and non-value adding activities required to design, order, and provide a product or service from concept to launch, order to delivery, and raw materials to customers

Inventory Turn

The cost of goods sold divided by the total average value of inventory. It scales the amount of inventory relative to the cost of goods sold, therefore provides a measure that has some compatibility, at least across similar firms.

Days of Supply

The inverse of inventory turns scaled to days; The number of days of inventory of an item.

Throughput Rate

The output rate that the process is expected to produce over a period of time

Critical Path

The sequence(s) of activities in a project that form the longest chain in terms of their time to complete. This path contains zero slack time. It is possible for there to be multiple _______ _____ in a project.

Operation Time

The sum of the setup time and run time for a batch of parts that are run on a machine

Value-Added Time

The time in which useful work is actually being done on the unit. Assuming that all of the activities included in the process are _______-______ activities, _____-______ time should be the sum of activity operation times in the process.

Setup Time

The time required to prepare a machine to make a particular item. Machines that have significant _____ ____ will typically run parts in batches.

Run Time

The time required to produce a batch of parts. This is calculated by multiplying the time required to produce each unit by the batch size.

Slack Time

The time that an activity can be delayed without delaying the entire project; the difference between the late and early start times of an activity.

Total Average Value of Inventory

The total average investment in raw material, work-in-process, and finished goods inventory

Lean Warehousing

This relates to eliminating non-value-added steps and waste in product storage processes. Typical functions include the following: receiving material; putting-away/storing; replenishing inventory; picking inventory; packing for shipment; and shipping. Waste can be found in many _____ ___________ processes including shipping defects, which creates returns; overproduction or overshipment of products; excess inventory, which requires extra space and reduces ___________ (Word used in term/DNA) efficiency; excess motion and handling; waiting for parts; and inadequate information systems.

Task times

Uncertainty in ____ ______ (variability) typically leads to a negative exponential distribution of ____ _____ (Repeated word, DNA). Simply put, this means that while most ____ executions will fall within some tight range, other executions will take a long time.

Assignable

Variation that is caused by factors that can be clearly identified and possibly even managed is called ______________ variation

Common (or Random)

Variation that is inherent in the process itself is called _____________ variation

Waste Reduction

When applied to supply chains, ______ ____________ relates to the optimization of the value-adding activities and the elimination of non-value adding activities that are part of the value stream

4 or 5

When using X-bar or R-charts, the preferred sample sizes are _ or _ units.

Uncertainty in Demand

While service _____ (DNA/part of term) can be forecasted, no forecast is 100 percent perfect. Manufacturers can buffer this forecast uncertainty with some finished goods inventory, The simultaneous production and consumption in services precludes this tactic. The capacity must be available when the _____ (DNA/part of term) arises. This described the ____________ __ ________ regarding service operations.

Lean Manufacturing

_____ __________ systems produce what the customers want, in the quantity they want when they want it, and with minimum resources. Applying lean concepts in ______ _____________ typically presents the greatest opportunities for cost reduction and quality improvement

Lean Suppliers

_____ _____________ are able to respond to changes. Their prices are generally lower due to the efficiency of the lean processes, and their quality has improved to the point incoming inspection at the next link is not needed. They deliver on time and their culture is one of continuous improvement. To develop them, organizations should include them in their value stream planning

Lean Customers

______ _________ have a great understanding of their business needs ands specify meaningful requirements. They value speed and flexibility and expect high levels of delivery performance. They are interested in establishing effective partnerships with their suppliers. They expect value from the products they purchase and provide value to their ____________ (DNA/word used in term)

Stream Mapping

______ ___________ is a tool that can be used to drive out waste and improve the efficiency of the supply chain

Kaizen

______ is the Japanese philosophy that focuses on continuous improvement. The _______ bursts identify specific short-term projects (often referred to as "________ events") that teams work on to implement changes to the process.

Attributes

_____________ are quality characteristics that are classified as either conforming or not conforming to specification. Goods or services may be observed as either good or bad, or functioning or malfunctioning.

Process

any part of an organization that takes inputs and transforms them into outputs that, it is hoped, are of greater value to the organization than the original inputs

Value Stream Mapping

is a special type of flowcharting tool that is valuable for the development of lean processes. The technique is used to visualize product flows through various processing steps. The tool also illustrates information flows that result from the process, as well as information used to control flow through the process.

Waste

is defined as anything that does not add value from the customer's perspectives. Examples: defective products, overproduction, inventories, excess motion, processing steps, transportation, and waiting

Total Quality Management

managing the entire organization so that it excels on all dimensions of products and services that are important to the customer. It has two fundamental operational goals: 1. Careful design of the product or service 2. Ensuring that the organization's systems can consistently produce the design

Cycle Time

the average time between completions of successive units in a process

Flow Time

the average time that it takes a unit to move through an entire process. Includes the time the unit spends actually being worked on, together with the time spent waiting in a queue. Often referred to as "cycle time".

Utilization

the ratio of the time that a resource is actually activated relative to the time that it is available for use