MGMT 4000 - Exam 3 Master Quizlet - Montgomery
Six Sigma Roles and Responsibilities
1. Executive leaders must champion the process of improvement 2. Corporation-wide training in six sigma concepts and tools 3. Setting stretch objectives for improvement 4. Continuous reinforcement and rewards
Plan-Do-Study-Act (PDSA)
A framework for problem solving and improvement activities. Incudes (1) plan (2) do (3) study (4) act
Six Sigma
A philosophy and set of methods companies use to eliminate defects in their products and processes Seeks to reduce variation that lead to product defects Refers to the variation that exists within plus or minus 3 standard deviations Allows managers to readily describe process performance using a common metric: Defects per million opportunities (DPMO)
Process improvement
A systematic approach to improving a process
Type 2 Waste
A type of waste that is non-value add and unnecessary
Type 1 waste
A type of waste that is non-value add but necessary
Variable data
AKA continuous data. Things we measure. Usually measured by the mean and standard deviation. Examples: height, weight, length, volume, temperature, time, etc. X-bar and R chart applications
Attribute Data
AKA discrete data. Things we count. Go or no go information. Examples: number or % of defective items in a lot, number of defects per item, types of defects, value assigned to defects (1 = minor; 5 = major) Defectives refers to the acceptability of product across a range of characteristics Defects refers to the number of defects per unit which may be higher than the number of defectives P chart & C chart application
DMAIC
An acronym for the Define, Measure, Analyze, Improve, and Control improvement methodology followed by companies engaging in Six Sigma programs.
Waste
Anything other than the minimum amount of equipment, materials, parts, space, and workers time, which are absolutely essential to add value to the product
colored golf balls
Appropriate golf ball signals production in kanban
Capital Cost
One of the obvious carrying costs of inventory interest or opportunity cost of capital tied up in stock
Control
One of the phases of Six Sigma DMAIC. Determine how to maintain the improvements
Measure
One of the phases of Six Sigma DMAIC. Determine how to measure the process and how it is performing
Analyze
One of the phases of Six Sigma DMAIC. Determine the most likely defects
Define
One of the phases of Six Sigma DMAIC. Identify customers and their priorities
Improve
One of the phases of Six Sigma DMAIC. Identify means to remove the causes of defects
Histogram
One of the six sigma tools. A chart of empirical frequency distribution
Flow Chart
One of the six sigma tools. A diagram of the sequence of operations
Checklist
One of the six sigma tools. Basic form to standardize data collection. A tool to record and organize data to help identify a problem
Run Chart
One of the six sigma tools. Depict trends in data over time
Pareto Diagram
One of the six sigma tools. Help to break down a problem into components. A technique used for classifying problem areas according to the degree of importance, and focusing on the most important
Cause & Effect (Fishbone) Diagram
One of the six sigma tools. Show relationships between causes and problems. A diagram used to search for the causes of a problem. AKA a fishbone diagram
Control Chart
One of the six sigma tools. Used to assure that processes are in statistical control
Internal Failure Costs
One of the types of costs of quality. Costs for defects incurred within the system
External Failure Costs
One of the types of costs of quality. Costs for defects that pass through the system
Appraisal Costs
One of the types of costs of quality. Costs of the inspection and testing to ensure that the product or process is acceptable
Prevention Costs
One of the types of costs of quality. Sum of all the costs to prevent defects
Common cause (random) variation
One of the types of variation in a production process. Inherent in the process
Assignable (special cause) variation
One of the types of variation in a production process. Caused by factors that can be clearly identified and possibly managed
SQC (Statistical Quality Control) People Feedback
In the Shingo Model, regarding fail safe design, it states that... 1. _______________ methods do not prevent defects 2. Defects arise when __________ make errors 3. Defects can be prevented by providing workers with ____________ on errors
Poka-yoke
In the Shingo System, _____________ includes checklists
Increase Decrease
In the traditional view of quality costs, as quality increases... Prevention and appraisal costs ___________ (decrease/increase), while internal and external costs ___________ (decrease/increase)
Backflush
Calculating how many of each part were used in production and using these calculations to adjust actual on-hand inventory balances. This eliminates the need to actually track each part used in production.
Action Workout (aka Kaizen Event)
Change process originating at GE Empowers employees and creates a new dynamic with leadership Emphasizes quick action Necessitates a clear challenge to solve
Lean Six Sigma
Combines the implementation and quality control tools of Six Sigma and the inventory management concept of lean manufacturing.
One sided capability index
Concentration on the side which is closest to the specification (closest to being "bad")
Set Up (Production Change) Costs
Costs for arranging specific equipment setups and so on Examples - Clean up costs - Re-tooling costs - Adjustment costs one of the types of inventory costs
Pull System
Customer pulls an inventory item from final assembly by pulling material in small lots, inventory cushions are removed, exposing problems and emphasizing continual improvement Manufactured cycle time is reduced
Conformance quality
Degree to which the product or service design specifications are met
Green Belts
Employees who have enough Six Sigma training to participate in improvement teams.
ISO 9000
Formal standards for quality certification developed by the international organization for standardization
attributes
Quality characteristics that are classified as either conforming or not conforming to specification.
variables
Quality characteristics that are measured in actual weight, volume, inches, centimeters, or other measure.
Shingo's Argument
Regarding fail safe design, the idea that... 1. SQC methods do not prevent defects 2. Defects arise when people make errors 3. Defects can be prevented by providing workers with feedback on errors
1. Successive Check 2. Self-Check 3. Source Inspection
Regarding the Shingo System, defects can be prevented by providing workers with feedback on errors using what 3 things?
Process capability
Sampling to determine if the process is within acceptable limits. A standard of measure of how good a process is. Ratio of specification width/actual process control width More proactive if done on a continuous basis Used to reduce variation in the process
The capability index (Cpk)
Shows how well parts being produced it into design limit specifications. Compares the spread and location of the process, relative to the specifications Shows how well the parts are being produces to fit into the range specified by the design specification. A ratio of the range of values produces divided by the range of values allowed _______ larger than one indicates the process is capable of producing all output within the specification If the 2 numbers are not equal, the mean has shifted from the center of the specification limits
Fail-safe procedures
Simple practices that help prevent errors.
Defects per million opportunities (DPMO)
Six Sigma allows managers to readily describe process performance using WHAT common metric? it is a metric used to describe the variability of a process
Quality at the source
The philosophy of making each worker responsible for the quality of his or her work.
level schedule
a schedule that pulls material into final assembly at a constant rate
Customer Value
in the context of lean production, something for which the customer is willing to pay
Kanban Squares
marked spaces on the floor to identify where material should be stored
Preventative Maintenance
periodic inspection and repair designed to keep equipment reliable
Poka-yokes
procedures that prevent mistakes from becoming defects. They are commonly found in manufacturing but can also be used in service procedures
False (other way around)
True or False? Organizations need to get rid of type 1 waste immediately and type 2 waste eventually
True
True or False? Value add are essential tasks
holding costs capital costs
What are 2 categories of obvious carrying/holding costs?
1. Elimination of Waste 2. Respect for People
What are 2 key elements to the Japanese approach to productivity?
1. Failures are caused 2. Prevention is cheaper 3. Performance can be measured
What are 3 assumptions when it comes to the costs of quality?
1. Flow Chart 2. Run Chart 3. Pareto Diagram 4. Checklist 5. Histogram 6. Control Chart 7. Cause and Effect (Fishbone) Diagram 8. FMEA
What are 8 tools used in six sigma?
1. Careful design of product/service 2. Ensuring organization's systems can consistently produce the design
What are the 2 fundamental operational goals of TQM?
Attribute Data & Variable Data
What are the 2 types of data in statistical process control?
1. Assignable (Special) Cause Variation 2. Common Cause (Random) Variation
What are the 2 types of variation in a production process?
1. Holding/Carrying Costs 2. Set Up/Production Change Costs 3. Ordering Costs 4. Shortage Costs
What are the 4 categories of inventory costs?
1) Appraisal Costs 2) Prevention Costs 3) Internal Failure Costs 4) External Failure Costs
What are the 4 types of costs of quality?
D - Design M - Measure A - Analyze I - Improve C - Control
What are the 5 Six Sigma DMAIC Phases?
1. Sort 2. Set in order 3. Shine 4. Standardize 5. Sustain - maintain order
What are the 5 steps in the 5S model for waste elimination?
1. buffer market uncertainty 2. decouple the dependencies between stages in supply chain 3. Maintain independence of operations 4. Meet variation in product demand 5. Flexibility in product scheduling 6. safeguard variation in raw material delivery time 7. Take adv of economic purchase order size
What are the 7 primary functions of inventory?
DOWNTIME D - Defects O - Overproduction W - Waiting Time N - non-utilized people T - transportation I - inventory M - motion E - Extra processing
What are the 8 types of waste?
"Waste"
What does Muda mean/translate to?
# of Kanbans needed
What is this a formula for? K = expected demand during lead time + safety stock/size of the containter AKA DL (1+S)/C
Respect for People
Which element is this of the Japanese approach to productivity? o Lifetime employment for permanent positions o Maintain payrolls even when business conditions deteriorate o Company unions o Bonuses o View workers as assets
Elimination of Waste
Which element is this of the Japanese approach to productivity? o Waste from overproduction o Waste of waiting time o Transportation waste o Inventory waste o Processing waste o Waste of motion o Waste from product defects o Underutilizing people's talent, skills, etc
Value Stream Mapping
a graphical way to analyze where value is or is not being added as material flows through a process
5 S
Methodology that helps to organize the workplace by allowing for quick identification and elimination of waste Sort Set in Order Shine Standardize Sustain (maintain order)
Waste Reduction
the optimization of value-adding activities and elimination of non-value-adding activities that are part of the value stream
Dimensions of Quality
criteria by which quality is measured
Upper and Lower Specification Limits
the range of values in a measure associated with a process that is allowable given the intended use of the product or service
semi-obvious carrying costs
type of inventory cost - Obsolescence - Inventory planning and management - Stock record keeping - Physical inventory taking
Costs of Quality
expenditures related to achieving product or service quality, such as the costs of prevention, appraisal, internal failure, and external failure
Master Black Belts
Individuals with in-depth training on statistical tools and process improvement.
Black Belts
Individuals with sufficient Six Sigma training to lead improvement teams.
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.
Kaizen
Japanese term for continuous improvement
Kanban
Japanese word for card. A signaling device used to control production Authorizes production form downstream operations Pulls material through plant May be a card, flag, verbal signal, etc. Used often with fixed sized containers Add or remove containers to change production rate
Lean Logic (Pull System)
Logic that nothing will be produced until it is needed A sale pulls a replacement from the last position in the system This triggers an order to the factory production line Each upstream station then pulls from the next station further upstream
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.
Total Quality Management (TQM)
Managing the entire organization so that it excels on all dimensions of products and services that are important to the customer 2 fundamental operational goals 1. Careful design of the product or service 2. Ensuring that the organization's systems can consistently product the design
1.2 2.0
Many companies want a Cpk of ______ or better. Six sigma companies want _______
Failsafe Design
Special tooling that prevents workers from making errors
Obvious Holding Costs
Stockroom costs of · Space · Storage implements · Insurance on space, equipment, and inventories · Inventory taxes · Stock keepers wages · Damage and shrinkage while in storage
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 range.
Value Stream
These are the value-adding and non-value-adding activities required to design, order, and provide a product from concept to launch, order to delivery, and raw materials to customers.
Kanban pull system
an inventory or production control system that uses a signaling device to regulate flows
Value add
any activity that changes the form, fit or function of a product or service OR something customers are willing to pay for
Uniform Plant Loading
smoothing the production flow to dampen schedule variation
Container System
the container is used as a signal device in kanbans
