Chapter 8

Six Sigma - Made by who? 3 foundational aspects (nothing) 1. Quality 2. Use 3. People 2 key methodologies (nothing) 1. - 2. -

--improves process outputs by removing causes of defects and minimizing variablity --Motorola 1. Quality is defined by customer 2. Use of technical tools 3. People Involvement 1. DMADV - define measure analyze design verify 2. DMAIC - define measure analyze improve control

Manufacturing (nothing) Manufacturing management - Major Strategies (nothing) MTS (___ _____ _____) - --> ____ system ----> 1 challenge MTO (___ ___ ____) - --> challenge ATO (___ ____ _____) - --> hybrid between ____ & ______ ETO (____ _____ _____) - ---> challenge

--management of all the processes which are involved in manufacturing --Make to Stock (MTS) - manufacture products based on demand forecasts (push system) → challenge - excess inventory --Make to order (MTO) - strategy that allows customers to purchase products customized to specifications → challenge - excess inventory -- Assemble to order (ATO) - product gets produced quickly and are customizable to a certain extent (hybrid between order and stock) --Engineer to order (ETO) - product is designed, engineered, and built to customer specifications → challenge - additional costs

LEAN - --> created by _____ What was the first breakthrough using continuous assembly and flow system? 5 Lean principles (nothing) 1. D 2. M 3. C 4. E 5. P Lean results to... 1. C 2. I 3.I

--philosophy of waste reduction and value enhancement created by Toyota Production System -- Henry fords mass production 1. Define value 2.Map value stream 3. create flow 4. Establish pull 5. Pursuit perfection Large cost reductions. -Improved quality. -Increased customer service

Costs of Good Quality (nothing) 1.A. - ex - 2.P. - ex - 3. I - ex - 4.E. - ex -

1. Appraisal costs - associated with uncovering defects ex - includes testing and evaluating quality 2. Prevention costs - costs incurred in process of preventing poor quality ex - includes costs of implementing quality plan 3. Internal failure costs - occur when product doesn't meet standards ex - scrap rework 4.External Failure Costs - occur when product does not mean standards ex - returns and repairs

Manufacturing Processes (nothing) 2 broad categories 1. I - -- J --> wait time --B --> wait time 2. R - -- L --> wait time -- C. --> wait time Total cost of Manufacturing (nothing) 1. P & P activates (as volume goes up.. cost goes ____) 2. I & W actives (as volume goes up, cost goes____) 3. T activities (as volume goes up, cost goes ____)

1. Intermittent - large variety of products with lower volumes --Job shop - high customization.. Very long wait time --Batch process - small quantity ... long wait 2. Repetitive processes - used to produce one or few standardized products in higher volumes --Line process - standard products with limited variations.. Short wait --Continuous processes - make things like gas, chemicals, detergent ... very short wait 1. Production and procurement activities (down) 2; Inventory and warehousing activities → up 3. Transportation activities → down

Components of Lean (nothing) 1. W Downtime - 2. L 5 S's (nothing) Sort - straighten - shine. - standardize - sustain - 3. I, S, & C S - C - 4. S B S & U P L Uniform plant loading - Kanban.- Large batches can ______ ______ _________ _________ 5. L ______ ________ relations - work to remove _____,________,______ and __________ 6. W 7. C Lean Green Practices (nothing) 1. Reduce 2.Lead to 3. Increase

1. Waste reduction - defects , overproduction, waiting, non utilized talent, transportation, inventory, motion, extra processing 2. Lean Layouts - only keep necessary items -organize and arrange - clean - schedule cleanings - stick to rules 3. Inventory, set up time and changeover time reduction -Set up time - time taken to prepare manufacturing equipment and systems for production - Changeover time - time taken to modify manufacturing equipment to product different product or batch 4. Small batch scheduling and uniform plant loading --planning up to capacity in earlier time periods to meet demand later in time periods -- signal or card in japaneese -- can exacerbate the bullwhip effect 5. Lean supply chain relations -Work to remove waste, reduce cost, improve quality and customer service 6. Workforce Commitment 7. Continuous improvement 1. Reduce the cost of environmental management 2. lead to improved environmental performance 3. Increase the bandwagon

Quality tools (nothing) Check Sheet - HIstogram - Pareto Analysis - Cause and Effect Diagrams - Flow Diagram - Control charts - scatter diagrams - Acceptance sampling -

Check sheet - used to determine frequencies for specific problems Histogram - a graphical display where Dara is grouped into ranges Pareto Analysis - presenting process problems in organized fashion from most to least Cause and Effect Diagrams - used to aid in brainstorming and isolating causes of problem Flow Diagram - sequence of movements or actions of people involved in a complex system Control charts - graph to study how a process changes over time scatter diagrams - values of two variables plotted along two axes -when shipments are received from supplier, samples are taken and measured against quality acceptance standard

Total Quality Management (nothing) Key principles 1. M 2. E 3. F 4. C 5. C Gurus (nothing) W. Edwards Deming - Phillip Crosby - Joseph Juran - Kaoru Ishikawa - Malcom Baldrige National Quality Award (nothing) Objective - Voice of the customer -

Management Commitment Employee Empowerment Fact Based Decision Making Continuous Improvement Customer Focus -- father of TQM -- made the phrase "quality is free" --> four absolutes of quality --defined quality as "fitness for use" --> cost of quality --developed cause and effect diagram or Ishikawa -stimulate firms to improve -term used to describe in depth process of capturing internal or external inputs on likes and preferences

5 how's used to - 5 why's used to -

develop details of solution to problem getting to the root of problem