MGT 3325 Exam 2- Austin

Operational performance objectives

-cost

-delivery (speed)

-flexibility

-quality

Quality

the degree to which a product or service meets or exceeds customers' needs and expectations

Quality management

set of activities that an organization performs to improve and maintain the quality of its products and services

Kinds of quality

-conformance quality

-performance quality

Operations management

The management of the entire process that transforms inputs into outputs

Bottleneck

The slowest part of any process

Cycle time

The time between successive (finished product) units coming off the end of the process

Capacity (sequential and parallel processes)

The maximum output (number of units finished) in a specified time period

As production systems are developed, managed and improved, _____ turns to _______.

chaos, order

Lean Thinking

a socio-technical operations management system by which the main objective is to eliminate waste and maximize value (to the customer).

The Idea of Toyota production system (TPS)

To produce the kind of units needed, at the time needed, and in the quantities needed so that unnecessary intermediate and finished product inventories can be eliminated

What is the objective of lean thinking?

To produce more goods while using fewer resources- less factory space, fewer worker movements, and fewer assembly steps

How is lean thinking accomplished?

Through continuous refinement of practices and procedures

Three broad categories of waste

Muda, mura, muri

Muda

production activities that are wasteful and do not add value to the goods or services

Mura

Waste associated with the unevenness of demand

Muri

The waste resulting from unnecessarily difficult or complex activity

7 wastes of lean

inventory, waiting, defects, overproduction, motion, transportation, over-processing

Kaizen

change for the better

elimination of waste and inefficiencies

Process focus

systemic, holistic view of process and results

don't want to create problems elsewhere

Team focus

examination of assumptions, non-blaming

Continuous improvement

often focused, local and repetitive 'events'

constant, incremental changes, 'small steps'

Plan-Do-Check-Act

A process utilized in continuous improvement

5S + Safety

Sort, straighten, shine, standardize, sustain

Two objectives of process control:

detect and reduce variability

Detect variability

by measuring process steps and establishing systems to flag when a process exceeds its set bounds - goal is to detect quality problems before they result in flawed products

Reduce variability

by improving product or process design, inputs, or process execution - this will reduce the probability that unexpected variance will lead to quality problems

Statistical process control

a set of statistical tools that allows us to monitor a process, see if it is stable, and distinguish randomness from variation that we can track down and eliminate

Common variation

this is the random variation that inherently exists in every system

Assignable variation

this is variability that is not inherent to the system, but is the result of some change in the system and can usually be traced to a specific cause

Push system

a production system that focuses on maximizing the use of production capacity, and therefore is based on estimated customer demand

Pull system

a production system that uses customer demand as the primary driver for production planning

In control

a process that exhibits only common variation is said to be in control or stable

Out of control

a process is out of control when it exhibits assignable variation. Process control allows us to detect this change and eliminate or incorporate it

Capable

process that is capable consistently meets design specifications or customer specifications. A process that is in control or may not be capable if its common variation is too great.

A process that is _________ may not be ______ if its common variation is too great.

In control; capable

According to The Goal, a system can never have a capacity _______ than the bottleneck's capacity.

greater

What is the relationship between a bottleneck and a non-bottleneck (pg. 95)?

When non-bottlenecks do more work, they produce excess inventory.

What happened with Pete and the robots?

Petes shortfall was passed on to the robot.

What is a bottleneck?

any resource whose capacity is equal to or less than the demand placed upon it

What is a non-bottleneck?

any resource whose capacity is greater than the demand placed on it

What bottlenecks were discovered at the Bearington plant? How did they find them?

The NCX-10 and the heat-treat department

What happens when you lose time at a bottleneck?

The plant's overall throughput is lower by whatever amount this bottleneck could have produced in that time.

How do we get the most out of bottlenecks? (3 rules)

1. Don't have it sit idle during workers' lunch breaks

2. Don't have it process defective parts

3. Make the bottlenecks work only on what contributes to current throughput

Where should we put quality control?

Weed out the bad parts before the bottleneck and all you've lost is scrap.

What are some things the Bearington team did to get the most out of their bottlenecks?

Did the bottlenecks really spread?

No because...

How did they address the excess inventory issues?

They develop a final assembly schedule and then calculate backwards and schedule a release date of relevant non-bottleneck materials.

What is DBR?

Drum Buffer Rope System

Is achieving 100% efficiency for all operations always a good thing?

No because it will create excess inventory on the non-bottlenecks

What was the "next logical step"?

Cut non-bottlenecks batch sizes in half, which results reduction in work in process, investment in materials and improves cash flow.

What is the difference between queue time and wait time?

Queue time- the major factor for parts going through the bottlenecks

Wait time- the major time factor for parts that do not go through bottlenecks

Smaller batches increase setups on non-bottleneck steps, but an hour lost on a bottleneck is...?

Downtime

How did the team respond to Burnside's rush order? Did they focus the entire plant on that order?

Half the batches, orders rescheduled to arrive on time, and weekly airfreighting. No they did not focus the entire plant on that order

How did Rogo explain changing assumptions?

What is POOGI?

Process of ongoing improvement. There is always room for better results.

Are bottlenecks always people or machines?

No. It would be external- in the market.

What are 5 focusing steps of the Theory of Constraints?

1. Identify the systems constraints

2. Decide how to exploit the systems constraints

3. Subordinate everything else to the above decisions

4. Elevate the systems constraints

5. Go back to step 1

Throughput time

The maximum time it takes for one unit to go from beginning to the end of the process

Throughput time- batch

The maximum time it takes for one batch to go from beginning to the end of the process

Lead time

The time needed to complete an activity from start to finish

Takt time

Cycle time required to meet demand

Represents adherence to design specifications:

conformance quality

T/F: conformance quality can be free because it reduces total cost.

True

In the modern view of quality management, who is responsible for quality?

All employees

What is the "enemy" of quality control?

variability

Although conformance is ultimately a measurement of the ______, the best way to achieve it is to monitor and adjust the process.

Output

The two objectives of process control are to _______ and _______ variability.

Detect; reduce

Rnadom variation that inherently exists in every system is:

Common variation

Prevention cost

costs associated with tasks intended to prevent defects from occurring.

Appraisal cost

costs of monitoring, inspecting, and testing to detect quality problems at various points in a process

Internal failure costs

cost of recovering from defects within the production process

External failure cost

costs incurred when a defect reaches the customer

Quality failure costs ______ rapidly as a product or service moves through the production process.

Rise

Customer deaths caused by the listeria outbreak represent the highest form of what type of cost of quality?

External failure cost

Control costs

prevention costs and appraisal costs

Failure costs

internal failure costs and external failure costs

Two ways to deal with assignable variation:

-eliminate

-accomodate