OPS MGMT Exam 2 Study Guide

What does TQM stand for?

Total Quality Management.

What is the goal of Total Quality Management?

To achieve excellence in all aspects of products and services important to the customer.

What is Six Sigma?

A program designed to reduce defects, lower costs, save time, and improve customer satisfaction.

What does DMAIC stand for in Six Sigma?

Define, Measure, Analyze, Improve, Control.

What is Just In Time (JIT) production?

A 'pull' system of production scheduling that allows production only when signaled.

What is the purpose of continuous improvement in quality management?

To engage in a never-ending process of improving operations, aiming for perfection.

Who is primarily responsible for quality within an organization?

Top management is responsible for setting the vision, objectives, and standards for quality.

What are some common TQM tools for generating ideas?

Check Sheet, Scatter Diagram, Cause-and-Effect Diagram.

What does the Quality Loss Function illustrate?

Costs increase as the product moves away from what the customer wants.

What are the control charts for variables?

X bar and R charts.

What does it mean for a process to be statistically out of control?

When variability exceeds what is expected by random chance.

What is the main focus of a process-focused layout?

Group similar machines and equipment for flexibility and handling a variety of products.

What is vertical integration?

A business strategy where a company controls multiple stages of its supply chain.

What is the bullwhip effect?

Fluctuations in orders that increase at each step of the supply chain.

What does Kanban refer to in a production process?

A card that authorizes the production of the next container of material.

What is a push system in production?

Producing goods based on forecasted demand, regardless of actual customer orders.

How does JIT affect inventory levels?

Minimizes inventory levels, reduces storage costs, and increases inventory turnover.

What is the relationship between TQM and Lean Production?

Both focus on waste reduction and continuous improvement to enhance operational efficiency.

What is necessary for successful implementation of JIT?

Strong supplier partnerships, effective workflow management, and consistent quality control.