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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 doesnât 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 companyâs 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 doesnât 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 âin controlâ 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; manufacturerâs risk
Type 2 Error
concluding a process is in control when it is not; consumerâs 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
Note
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