Pre-Assessment: Operations and Supply Chain Management (PAM1)

A website for a utility company makes customers enter their bank payment information twice. The system compares the data and only proceeds if the data matches.Which cost of quality is represented in this scenario?

Prevention costs

After each tool in a manufacturing facility is produced, its maximum RPM is tested. A manager would like to use a data visualization tool to see how many of the 1,000 tools produced last week had a maximum RPM of 10,000–10,049, how many had a maximum RPM of 10,050–10,099, etc.

Histogram

A production facility manufactures a varying number of units per day. A manager has data on the number of units produced and the number of defective units found for each day over the past several months. The manager would like to use a data display to see if the number of defects is related to the total number of units produced per day.

Scatterplot

Which activity is involved in the define phase of Six Sigma?

Detailing an improvement opportunity

Which phase of Six Sigma involves implementing measures to make errors more quickly detectable?

Control

TQM

total quality management- everyone responsibility

tangibles

the appearance of physical facilities, equipment, personnel, and communication materials, including the access and effectiveness of internet-based information

empathy

the provision of caring, individualized attention to customers

assurance

the knowledge and courtesy of employees and their ability to convey trust and confidence

responsiveness

the willingness to help customers and provide prompt service

service reliability

the ability to perform the promised service dependably and accurately

reliability:

the length of time a product will function before it fails or the probability it will function for a stated period of time

durability:

: the ability of a product to function when subjected to hard and frequent use

serviceability

the speed, courtesy, and competence of repair

aesthetics:

how a product looks, feels, sounds, tastes, or smells

perceived quality:

the image, advertising, or brand name of a product

conformance to standards: the degree to which a product's design and operating characteristics match pre-established standards

features

the secondary characteristics that supplement the product's basic functioning

prevention costs

putting a stop to the quality problem

failure costs:

failure costs can be subdivided into two sections: internal to the organization or external, involving the customer

appraisal costs

an investment in measuring quality and assessing customer satisfaction

DMFA - Design for manufacture and assembly

products should be designed so they are simple and inexpensive to produce. This is also known as Quality by Design or Design for Operations

Product Design

how the product, either a good or a service, functions

Process Design:

how the product, either a good or service, is produced

Process Performance

the performance of the plan created in the product and process design

Inspection (QA/QC)

an assessment of the quality of the good or service.

Standardization

involves developing a preset procedure for performing an activity or job.

Documentation

the act of putting that procedure into writing

5 key measures of performanance

Efficacy

Efficiency

Effectiveness

Ethical

Elegance

Efficacy

is measuring performance by the ability to get things done. Did the system produce the output?

Efficiency

is measuring performance through the cost-benefit of getting things done. Did the system make the best use of resources like money or time?

Effectiveness

is measuring performance by looking at meeting the overall desired results of the goods or services. Did the system achieve its goal?

Ethical

behavior is measuring performance by the way business is conducted following moral principles and environmentally sound procedures. Is the system morally and environmentally acceptable?

Elegance

is measuring performance by the attractiveness and neatness of the product or service. Is the change aesthetically pleasing? Does the effect of the service or good make customers feel good, make the area look better, etc.?

Cause-and-effect diagrams

show the impact of various inputs in a process and help to identify factors that may contribute to dependent outcomes

Check sheets

means used to record data points in real time at the site where the data is generated.

scatterplot

uses dots to represent values for two different numeric variables. The position of each dot on the horizontal and vertical axis indicates values for an individual data point

histogram

shows the distrubution of a single variable,, uses bars where each bar represents a frequency of data within a speciifc range

Pareto Chart

to identify areas to focus on first in process improvement.a check sheet to represent the data values for each defect in descending order to easily visualize the event with the most frequent occurrences. uses bars and lines... Pareto principle, the principle that 80% of an outcome comes from 20% of its inputs

statistical process control (SPC)

a method used to monitor and control a process by analyzing data in real-time, ensuring consistent quality and efficiency

Control charts

graphical depictions of process output where the raw data is plotted in real-time within upper (UCL) and lower control limits (LCL)

flow chart

a visual representation of a process, system, or algorithm, using symbols and connecting lines to illustrate the flow of steps

PDCA cycle

1. Plan

2. Do

3. Check

4. Act

Six Sigma

Define, Measure, Analyze, Improve, Control

value stream mapping

provide an overview of an entire process from beginning to end with regard to the VOC and identifies what is required to meet the customer's needs

SIPOC diagram

high-level process mapping tool used during the define stage to help depict the supplier-input-process-output-customer relationships in a process.

FMEA

Failure Mode and Effects Analysis

DMADV

Define, Measure, Analyze, Design, Verify

Utilization

Actual Output ÷ Design Capacity

Efficiency

Actual Output ÷ Effective Capacity

TOC

Theory of Constraints

Theory of Constraints (TOC)

management philosophy that focuses on identifying and improving the weakest link (constraint) in a process. The idea is that any system can only produce as much as its most limiting factor allows.

TOC step 1

Identify the constraint (what's holding back production).

TOC Step 2

Exploit the constraint (use it as efficiently as possible).

TOC step 3

Subordinate everything else to the constraint (align other processes to support it).

TOC step 4

Eleveate the constraint (add resources or make changes to eliminate it).

TOC step 5

Repeat the process (go back to Step 1 and evaluate if a new constraint appears

Proactive

Doing something in prediction of something else

Reactive

Doing something based off of results from something else

Master Production Schedule (MPS)

detailed and focuses on day-to-day or weekly operations

Aggregate

is for intermediate range planning (typically months ahead).

Lean Systems

aim to eliminate waste and improve efficiency

Economic production quantity

when production happens gradually over time, and the company can produce more than it needs at once.

Economic order quantity

instant replenishment (you receive the full order all at once).

What is the inventory management model that assumes that an organization's manufacturing capacity for a product exceeds the demand for that product?

economic production quantity

Order Point

specific inventory level at which you reorder.

Safety Stock

extra inventory to prevent stockouts, but doesn't trigger ordering on its own.

Perpetual system

track inventory in real-time, often with tech like RFID or scanners — which can be costly to install/maintain

What is the definition of market share?

Market share is a company's sales divided by the sales of all companies in its industry.

In general, when productivity increases, the cost to produce a product _______.

decrease...

the cost to produce a product generally decreases. This is because more efficient processes allow for greater output with the same or fewer resources, leading to lower production costs.

What is true regarding the ABC classification of inventory table?

ABC classification, items are categorized based on their importance, with "C" items representing the lowest priority items and typically making up about 50% of the total inventory.

The EOQ is the point at which holding costs ___

Economic order quantity (EOQ) is the point at which holding costs (the cost of storing inventory) are equal to ordering costs (the cost of replenishing inventory). This is the ideal balance for inventory management.

What might have caused a smartphone manufacturer to incur a stockout or run out of inventory for a new phone when they first released it?

A stockout can occur when demand for a product exceeds expectations, and lead times for restocking are longer than anticipated. This mismatch can result in running out of inventory.

QDM

Quantity discounts method (QDM)

TRIPLE BOTTOM LINE

people, planet, profit

target level

level of inventory sufficient to cover anticipated demand before the next replenishment.

What is one of the assumptions of the economic order quantity model?

The economic order quantity model assumes that

1) demand is constant and known,

2) purchase cost is independent of order quantity,

3) orders are delivered at once, and

4) ordering costs and carrying costs are independent and known.

What is a characteristic of the economic order quantity model of inventory management?

The economic order quantity model focuses on minimizing total costs by determining where ordering costs and carrying costs are equal.