MGSC 346 Exam 2

What are the multiple plant manufacturing strategies?

product plant, market area, process plant, general-purpose plant strategy

Product Plant

entire products or product lines are produced in separate plants

Market Area

serve a particular geographic segment of the market

Process Plant

different plants focus on different aspects of a process

General-purpose Plant Strategy

plants are flexible and capable of handling a range of products

Quality

the ability of a product or service to consistently meet or exceed customer expectations

TQM

a philosophy that involves everyone in an organization in a continual effort to improve quality and achieve customer satisfaction

Kaizen

continuous improvement

Quality at the Source

the philosophy of making each worker responsible for the quality of his or her work

Process Improvement

a systematic approach to improving a process (map the process, analyze the process, redesign the process)

Six Sigma

a business process for improving quality, reducing costs, and increasing customer satisfaction

Quality Circles

groups of workers who meet to discuss ways of improving products or processes

Performance

main characteristics of the product

Aesthetics

appearance, feel, smell, taste

Special Features

extra characteristics

Conformance

how well the product conforms to design specifications

Reliability

ability to perform the intended function

Durability

the useful life of the product

Perceived Quality

indirect evaluation of quality

Serviceability

handling of complaints or repairs

Consistency

quality doesn’t vary

Appraisal Costs

costs of activities designed to ensure quality or uncover defects

Prevention Costs

all TQ training, TQ planning, customer assessment, process control, and quality improvement costs to prevent defects from occurring

Failure Costs

costs incurred by defective parts/products or faulty services

Internal Failure Costs

costs incurred to fix problems that are defected before the product/service is delivered to the customer

External Failure Costs

all costs incurred to fix problems that are detected after the product/service is delivered to the customer

Substandard Work

defective products, substandard service, poor designs, shoddy workmanship, substandard part and materials

What are the 3 major awards?

Deming Prize, Malcolm Baldrige National Quality Award, European Quality Award

ISO

international organization for standardization

ISO 9000

quality management and quality assurance, critical to international business

ISO 14000

assess a company’s environmental performance

ISO 24700

pertains to the quality and performance of office equipment that contains reused components

Flowchart

a diagram of the steps in a process

Check Sheets

a tool for organizing and collecting data; a tally of problems or other events by category

Histogram

a chart that shows an empirical frequency distribution

Pareto Chart

arranges categories from highest to lowest frequency of occurrence

Scatter Diagram

shows the degree and direction of relationship between two variables

Control Chart

a statistical chart of time-ordered values of a sample statistc

Fishbone Diagram

used to organize a search for the cause(s) of a problem

Quality Control

a process that evaluates output relative to a standard and takes corrective action when output doesn’t meet standards

What are the phases of quality assurance from least progressive to most?

acceptance sampling, process control, continuous improvement

Acceptance Sampling

inspection of lots before/after production

Process Control

inspection and corrective action during production

Continuous Improvement

quality built into the process

Inspection

an appraisal activity that compares goods or services to a standard

Statistical Process Control

statistical evaluation of the output of a process; helps us to decide if a process is “in control” or if corrective action is needed

What are the issues of process control?

if nonrandom variation is present, the process is said to be unstable

What are the issues of process capability?

is the inherent variability of the process within a range that conforms to performance criteria?

Random (common cause) Variation

natural variation in the output of a process, created by countless minor factors

Assignable (special cause) Variation

a variation whose cause can be identified; a nonrandom variation

Control Charts

a time ordered plot of representative sample statistics obtained from an ongoing process, used to distinguish between random and nonrandom variability

Control Limits

the dividing lines between random and nonrandom deviations from the mean of the distribution; upper and lower control limits define the range of acceptable variation

Type 1 Error

concluding a process is not in control when it actually is; manufacturer’s risk

Type 2 Error

concluding a process is in control when it is not; consumer’s risk

Variables

generate data that are measured (mean and range)

Attributes

generate data that are counted (p-chart and c-chart)

Tolerances/Specifications

range of acceptable values established by engineering design or customer requirements

When do you use mean control charts?

used to monitor the central tendency of a process

When do you use range control charts?

used to monitor the process dispersion

Process Capability Analysis

the inherent variability of process output (process width) relative to the variation allowed by the design specification (specification width)

How to improve process capability?

simplify, standardize, mistake-proof, upgrade equipment, automate

Inventory

a stock or store of goods

Periodic System

physical count of items in inventory made at periodic intervals

Perpetual System

systems that keeps track of removals from inventory continuously, thus monitoring current levels of each item

Two-bin System

two containers of inventory; reorder when the first is empty

Forecasts

reliable estimates of the amount and timing of demand

Point-of-sale System

electronically records actual sales; useful for enhancing forecasting and inventory management

Lead Time

time interval between ordering and receiving the order

Purchase Cost

the amount paid to buy the inventory

Holding (Carrying) Cost

cost to carry an item in inventory for a length of time, usually a year

Ordering Cost

costs of ordering and receiving inventory

Setup Cost

the costs involved in preparing equipment for a job; analogous to ordering costs

Shortage Cost

costs resulting when demand exceeds the supply of inventory; often unrealized profit per unit

Cycle Counting

a physical count of items in inventory

Quantity Discounts

price reduction for large orders offered to customer to induce them to buy in large quantities

Fixed-order-interval Model

orders are placed at fixed time intervals

RoP

when the quantity on hand of an item drops to this amount, the item is reordered