DSCI304 Final

Lean

1980's, order as little as possible and as late as possible want to minimize S in EOQ pull-system, implicit plan, single-based operation

material requirement planning

60 years ago, planned order push-system, explicit plan, calculation based operation

p-charts

A control chart that monitors the proportion of some characteristic within a sample.

c-charts

Control chart used to monitor the number count of some characteristic within a sample

How does a single card kanban system differ from other kanban systems?

It only uses one loop in which kanban cards circulate.

_______ is a mathematical observation that the overall amount of some item in a system is the result of its average arrival rate (pulled in by demand) multiplied by its average wait in the system.

Littles Law

_______ is often measured as an index value (Cp) comparing the variation tolerated by the design to the variation inherent in the process.

Process capability

The lean philosophy suggests minimizing which value in the traditional EOQ formula, S, fixed cost of order, H, annual holding cost or D, annual demand?

S, fixed cost of order

producers risk

The likelihood of a type I error.

kanban

a "card" used to regulate production

control limit

a control chart boundary, where values observed beyond this limit signal the process is not in control

control chart is known as

a graph illustrating observed values in a relationship to allowable limits on those values

smaller batch sizes yield

a lower inventory level

push systems

a production system that calculates and anticipates demand, relying on the implementation of explicit plans instead of internal coordination to achieve outcomes

pull systems

a production system that reacts to signals of demand, relying on internal coordination instead of the implementation of explicit plans to achieve outcomes

An organization that estimates the quality of conformance of large batches through inspection of smaller samples is utilizing the process of _______.

acceptance sampling

Selecting an appropriate sampling plan requires declaration of _______, indicating what percent defective is considered reasonable.

an acceptable quality level

With regard to p-charts, the general recommendation for the number of samples to be taken when estimating p is _____

at least 25 samples

traditional reorder point systems

century ago, oder economic amount, when stock drops to reorder point pull-system, implicit plan, single-based operation

type 2 error

concluding a process is in control when it is not

type error 1

concluding the process is out of control when it is not

the critical tool for monitoring conformance

control chart

Increasing from 3 kanbans to 4 kanbans in a loop results in what?

higher inventory levels

lot tolerance percent defective

indicates the amount of defects the consumer can actually tolerate.

In lean operations, if order sizes from suppliers are reduced what happens to frequency of deliveries?

it increases

In a kanban system, the path of travel followed by kanbans is known as a _______.

kanban loop

A control chart used in monitoring the central tendency of some characteristic within a sample is called a _______.

mean chart

smaller order sizes yield

more deliveries

Which type of variation cannot be avoided and is therefore always present in production?

natural variation

A traditional reorder point operation is also known as a _______, because it allows demand to consume existing inventory and then reacts to the lower stock level by ordering replacements

pull system

natural variation is also known as

random variation

acceptable quality level

represents the amount of defects a consumer considers acceptable

What type of inventory is common in traditional production systems, but particularly troublesome to lean systems?

safety stock

kanban loop 1

signals and limits production

kanban loop 2

signals and limits withdrawals for consumption

lower fixed costs enable

smaller batch sizes

SPC

statistical process control

consumers risk

the likelihood of a type 2 error

Sampling plans are based on four different criteria. Which of the following is NOT one of those criteria?

the rules for assignable variation versus natural variation

An Xbar chart has __________ on the x-axis and _____________ on the y-axis.

time periods at which samples are taken, sample means

What is indicated by the control limit?

whether or not a process is out of control