Supply Chain Management, Operations Management with Lean and Six Sigma

Flashcards related to supply chain management, operations management, Lean, and Six Sigma.

Operations Management

Refers to the design, execution, and control of the operations that convert resources into desired goods and services, aligned with the company's business strategy.

Make-to-Stock (MTS)

To manufacture products for stock based on demand forecasts, which is a push system.

Make-to-Order (MTO)

A manufacturing strategy that typically allows customers to purchase products that are customized to their specifications and only manufactures the end product once the customer places the order (Pull System).

Assemble-to-Order (ATO)

A manufacturing strategy where products ordered by customers are produced quickly and are customizable to a certain extent, requiring that the basic parts for the product are already manufactured but not yet assembled.

Engineer-to-Order (ETO)

A manufacturing process in which the component is designed, engineered, and built to specifications only after the order has been received. The essence of ETO is building a unique product every time.

Total Cost of Manufacturing (TCM)

The complete cost of producing and delivering products to your customers, incorporating both fixed and variable costs.

LEAN

An operating philosophy of waste reduction and value enhancement, originally created as the Toyota Production System (TPS).

Six Sigma

An enterprise and supply chain-wide philosophy that emphasizes a commitment toward excellence, encompassing suppliers, employees, and customers, including the Identification and reduction of defects (errors).

Value

The inherent worth of a product as judged by the customer, and reflected in its selling price and market demand.

Value Added Process

Process steps that transform or shape a product or service which is eventually sold to a customer.

Non-Value Added Process

Process steps that take time, resources, or space, but do not add value to the product or service.

Defects

Anything that does not meet the acceptance criteria

Overproduction

Production before it is needed, or in excess of customer requirements. Providing a service that is not needed.

Waiting

Elapsed time between processes when no work is being done

Non-Utilized Talent

Underutilizing people’s talents, skills or knowledge. De-motivating the workforce by not asking for input or recognizing success

Transportation

Unnecessary movement of materials or products

Inventory

Excess products or materials not being processed

Motion/Movement

Unnecessary movement of people. Multiple hand-offs

Extra-Processing

Unnecessary steps in a process. Redundancies between processes. More work or higher quality than required by the customer

Seiri (Sort)

Keep only necessary items in the workplace, eliminate the rest

Seiton (Straighten)

Organize and arrange items to promote an efficient workflow

Seiso (Shine)

Clean the work area so it is neat and tidy

Seiketsu (Standardize)

Schedule regular cleaning and maintenance

Shitsuke (Sustain)

Stick to the rules. Maintain and review the standards

Setup Time

The time taken to prepare and format the manufacturing equipment and systems for production.

Changeover Time

The time taken to adapt and modify the manufacturing equipment and systems to produce a different product or a new batch of the same product.

Uniform Plant Loading

Planning up to capacity in earlier time periods to meet demand in later time periods, also called “front-loading” the plan or “leveling” the plan.

Carbon-neutral

Offsetting the carbon footprint of a firm’s operations

Six Sigma

Seeks to improve the quality of process outputs by identifying and removing the causes of defects (errors) and minimizing variability in manufacturing and business processes, with the goal of less than 3.4 Defects Per Million Opportunities (DPMO).

DMADV Methodology

A data-driven quality strategy for designing products & processes, used when the company wants to create a new product design or process that is more predictable and defect free.

DMAIC Methodology

A data-driven quality strategy for improving products & processes, used when the company wants to improve an existing business process, and the most widely adopted and recognized Six Sigma methodology in use.

Yellow Belt

Has a basic understanding of Six Sigma Methodology and the tools in the DMAIC problem-solving process and is a team member that reviews processes and process improvements in support of a Six Sigma process improvement project.

Green Belt

A Six Sigma trained individual that can work as a team member on complex projects and also lead small, carefully defined Six Sigma projects.

Brown Belt

A Six Sigma Green Belt who has passed the Black Belt certification examination but has not yet completed their second Six Sigma project

Black Belt

A full-time quality professional who has a thorough knowledge of Six Sigma philosophies and principles, and possesses technical and managerial process improvement / innovation skills. Leads the Six Sigma project team and problem-solving efforts.

Master Black Belt

A career path including a seasoned individual with a proven mastery of process variability reduction, and waste reduction, acting as an advisor to executives, and a coach and mentor on projects that are led by black belts and green belts.

Total Quality Management (TQM)

A management philosophy based on the principle that every employee must be committed to maintaining high standards of work in every aspect of a company's operations, focused on meeting customer needs and organizational objectives.

Voice of the Customer (VOC)

A term used in business to describe the in-depth process of capturing internal and external customer's stated and unstated expectations, preferences, likes, and dislikes.

Cost of Quality

An approach that supports a company’s efforts to determine the level of resources necessary to prevent poor quality, and to evaluate the quality of the company’s products and services.