MAR 3203 Exam 3 Study Materials for the University of Central Florida

Prevention cost

incurred to prevent or avoid quality problems; design, implementation, maintenance ex. product or service requirements, quality planning, quality assurance, training

Appraisal costs

associated with measuring and monitoring activities related to quality; suppliers & customers evaluation of purchased materials, processes, products and services, ex. verification, quality audits, supplier rating, cost to maintain instruments and equipment

internal failure costs

incurred to remedy defects discovered before the product or service is delivered to the customer, ex. wastes, scrap, rework or rectification, downgrading

external failure cost

incurred to remedy defects discovered by the customers, ex. repairs and servicing, warranty claims, complaints, returns, product liability costs

quality

the totality of features and characteristics of a product or service that bears on its ability to satisfy stated or implied needs

Quality

__________ is based off of 3 things:

User based - better performance, more features

Manufacturing based - conformance to standards, making it right the first time

Product based - specific and measurable attributes

Total Quality Management (TQM)

a management philosophy that focuses on satisfying customers through empowering employees to be an active part of continuous quality improvement

Taguchi Concepts

Quality robustness

Quality loss function

Target-oriented quality

PDCA Model

1. Plan

2. Do

3. Check

4. Act

repeat

Generating Ideas

TQM Tools for _____________:

check sheet

scatter diagram

cause and effect diagram

Organizing Data

TQM Tools for _____________:

Pareto chart, flowcharts

Identifying Problems

TQM Tools for _____________:

histogram, statistical process control chart

more

Service quality is _______ difficult to measure than the quality of goods

Statistical Process Control (SPC)

provides a statistical signal when assignable causes of variation are present

5Ms

materials

methods

manpower

machinery

mother nature

process cabability

measures the relationship between the natural variation of the process and the design specifications

Lean Operations

Eliminate waste

Remove variability

Improve throughput

wastes

overproduction, queues, transportation, inventory, motion, over processing, defective products

Variability

any deviation from the optimum process

Throughput

the rate at which units move through a process

Pull system

increases throughput; pull materials in small loads; inventory cushion removed emphasizing continual improvement

Lean and Just-In-Time

materials arrive when they are needed only when they are needed;

meaningful buyer/supplier relationships

JIT supplies:

few vendors, supportive supplier relationships, quick delivery times

JIT layout:

work-cells, flexible machinery, organizaed, reduces space for inventory

JIT Inventory

small lot sizes

JIT employee empowerment

empower cross trained employees

Supplier partnerships

a supplier and purchaser work together to remove waste and drive down costs

Lean & the Toyota Production System

-Continuous improvement

-respect for people

-empower employees

-completely specified work as to content, sequences timing & outcome

-internal/external customer supplier connects are direct

-material/service flows must be simple and directly linked to the people or machinery involved

-process improvement must be made in accordance w the scientific method at lowest possible level of org.

Jidoka

stop production because of defect right away, uses human intelligence and technology to stop problems when it happens

- Dual focus- education/training and responsiveness of system problems

Lean in Services

- understanding the customer and their expectations

- open communication/ respect

- Gemba walks

ex. Restaurant:

- Suppliers-spoilage of food

- Layout-kitchen layout

- Inventory-minimize

- Scheduling-employees

quality robust

products that are consistently built to meet customer needs in spite of adverse conditions in the production process

target oriented

a philosophy of continuous improvement to bring a product exactly on target

quality loss function

a mathematical function that identifies all costs connected with poor quality and shows how these costs increase as product quality moves from what the customer wants

check sheet

organized method of recording data

scatter diagram

a graph of the value of one variable against the value of another variable

cause and effect diagram

A tool that identifies process elements (causes) that might effect an outcome

parato chart

identifies and plots problems or defects in descending order of frequency

flowchart

describes the steps in a process

histogram

distribution that shows the frequency of occurences of a variable

Statistical Process Control chart

a chart with time on the horizontal axis to plot values of a statistic

natural variation

(Common Cause)

Normal part of the process

assignable variation

variation in a production process that can be traced to specific causes

control limit theorem

regardless of distribution of the population of all parts/services, the distirbution of x tends to follow a normal curve as the number of samples increase

process capability

Measure of the ability of a process to meet preset design specifications and determines whether the process can do what we are asking it to do.

kaize

continuous improvement