C215 Operations Management

One common definition of quality is _____, which focuses on measuring how well the product or service meets targets and tolerances determined by its designer

Conformance to specification

What is fitness for use?

It evaluates how well the product performs for its intended use

The cost of defect correction

Is less costly the earlier defects are found

Cost of quality inspections, testing, auditing, and test equipment are examples of _____ costs

Appraisal cost

Warranty Claims, customer complaints, and costs of litigations are examples of _____ cost

External failure

According to Dr. Taguchi’s view of quaility

as conformance values move away from target, loss increases as a quadratic function

_______ is the philosophy that seeks to improve quality by eliminating the causes of product defects

Total quality management

Who coined the saying “Quality is free”

Philip Crosby

A chart used in TQM that identifies potential causes of particular quality problems is called

Cause and effect diagram

The purpose of the ISO 9000 is to

Establish international quality standards

ISO 14000 provides tools to identify and report on the adverse impacts of business, including systems and standards for promoting

Environmental responsibility

Which of the following is a common cause for TQM failure

Lack of top management support

Companies that have attained the benefits of TQM have developed a process to identify

the meaning of customer-defined quality

TQM is a complete philosophy that has to be

embraced with true belief

Fitness for use

How well a product works for its intended purpose

Value for price paid

the worth of usefulness of a product relative to its cost

technical perception

a customers view of the products performance or features

judgmental evaluation

a subjective opinion about quality based on personal feelings or preferences

Conformance to specifications

How closely a product meets design or manufacturing standards

Internal failure

defects found before the product reaches the customer

IE —> during production or quality checks

External failure

Defects found after the product reaches the customer

IE —> Phone is returned because it wont turn on

Taguchi’s loss function (general)

Quality should be measured by the loss a product causes to society, not just specifications

Small deviations from target cause loss

The further the product is from the ideal (target), the greater the loss —> loss grows quadratically and not linearly

Loss = Cost constant (actual value - target value)²

Service Quaility

How well a service meets or exceeds customer expectations

Total quality managment

A company-wide approach focused on continuous improvement, customer satisfaction, and employee involvement

Root cause problem solving

Identifying the underlying cause of a problem to prevent it from happening again

ISO 9000

Is a set of international standards for quality management systems.

Provides guidelines to help organizations ensure they meet customer and regulatory requirements through consistent processes and continuous improvement

ISO 1400

Is a family of international standards focused on environmental management

It helps organizations minimize their environmental impact, comply with laws, and continually improve their environmental performance.

Appraisal cost

Cost incurred in the process of uncovering defects

benchmarking

the process of studying the practices of companies considered “best-in-class” and comparing your company’s performance against theirs

Cause and effect diagram

A chart that identifies potential causes of particular quality problems

Checklist

A list of common defects and the number of observed occurrences of these defects

Conformance to specifications

how well a product or service meets the targets and tolerances determined by its designers

Continuous improvement

A philosophy of never ending improvement

control charts

charts used to evaluate whether a process is operating within set expectations

customer-defined quaility

the meaning of quality as defined by the customer

Deming prize

A Japanese award given to companies to recognize efforts in quality improvement

External failure costs

Cost associated with quality problems that occur at the customer site

Fitness for use

a definition of quality that evaluates how well the product performs for its intended use

flowchart

a schematic of the sequence of steps involved in an operation or process

histogram

a chart that shows the frequency distribution of observed values of a variable

internal failure costs

cost associated with discovering poor product quality before the product reaches the customer

ISO 14000

A set of international standards and a certification focusing on a company’s environmental responsibility

ISO 26000

A set of international standards developed to help organizations evaluate and address their social responsibility

ISO 9000

A set of international quality standards and a certification demonstrating that companies have met all the standards specified

Kaizen

A Japanese term that describes the notion of a company continually striving to be better through learning and problem solving

Malcolm Baldrige National Quality Award

An award given annually to companies that demonstrate quality excellence and establish best practices standards in industry

Pareto Analysis

A technique used to identify quality problems based on their degree of importance

Plan-do-study-act (PDSA) cycle

A diagram that describes the activities that need to be performed to incorporate continuous improvement into the operation

Prevention Cost

Cost incurred in the process of preventing poor quality form occurring

Psychological criteria

A way of defining quality that focuses on judgmental evaluations of what constitutes product or service excellence

Quality at the source

The belief that it is best to uncover the source of quality problems and eliminate it

Quality circle

A team of volunteer production employees and their supervisors who meet regularly to solve quality problems

Quality function deployment (QFD)

A tool used to translate the preferences of the customer into specific technical requirements

Reliability

The probability that a product, service, or part will perform as intended

Robust design

A design that results in a product that can preform over a wide range of condition

Scatter diagrams

Graphis that show how two variables are related to each other

Support services

Quality defined in terms of the support provided after the product or service is purchased

Total quality management (TQM)

Philosophy that seeks to improve quality by eliminating causes of product defects and by making quality the responsibility of everyone in the organization

Value for price paid

Quality defined in terms of product or service usefulness for the price paid

3-d printing

three dimensional printing technology that deposits materials like plastics and metals in thick layers one atop the other with the process gradually building up one layer at a time until the object is produced

A broad view of JIT

A philosophy that encompasses the entire organization

ABC classification

A method for determining level of control and frequency of review of inventory items

Acceptable quality level (AQL)

The small percentage of defects that consumers are willing to accepts

Acceptance sampling

the process of randomly inspecting a sample of goods and deciding whether to accept the entire lot based on the results

Action bucket

the current time period

Action noticies

Output from an MRP system that identifies the need for an action to be taken

Activity-on-node

Network diagramming notation that places activities in the nodes and arrows to signify precedence relationships

Advertising revenue model

Provides users with information on services and products and provides an opportunity for suppliers to advertise

Affiliate revenue model

Companies receive a referral fee for directing business to an affiliate

Aggregation plan

includes the budgeted levels of finished products, inventory, backlogs, workforce size, and aggregate production rate needed to support the marketing plan

ALDEP and CRAFT

computer software packages for designing process layouts

Allowance factor

The amount of time the analyst allows for personal time, fatigue, and unavoidable delays

Alternative workplace

Brings work to the worker rather than the worker to the workplace

Anticipation inventory

inventory built in anticipation of future demand

Application service provider (ASP)

sets up and runs ERP systems

Assemble to order strategy

Produces standard components that can be combined to customer specfications

Assignable causes of variation

causes that can be identified and eliminated

Attribute

a product characteristic that has a discrete value and can be counted

Automated order entry system

a method using telephone modems to send digital orders to suppliers

automation

using machinery to perform work without human operators

Average number of jobs in the system

measures work-in-process inventory

Average outgoing quality (AOQ)

the expected proportion of defective items that will be passed to the customer under the sampling plan

Back order

delaying delivery to the customer until the item becomes available

back orders

Unfilled customer orders

backward integration

owning or controlling sources of raw materials and components

backward scheduling

starts with the due date for an order and works backwards to determine the start date for each activitiy

balance delay

the amount by which the line efficiency falls short of 100 percent

batch process

a type of process used to produce a small quantity of products in a groups or batches based on customer orders or specifications

behavioral feasibility

degree to which the job is intrinsically satisfying to the employee

benchmarking

the process of studying the practices of companies considered “best-in-class” and comparing you company’s performance against theirs

best operating level

the volume of output that results in the lowest average unit cost

beta probability distribution

typically represents project activities

Bill of material (BOM)

list all the subassemblies, component parts, and raw materials that go into an end item and shows the usage quantity of each required

block plan

schematic showing the placement of resources in a facility

bottle neck

longest task in the process

Bottom round management

consensus management by committees or teams

break-even analysis

a technique used to compute the amount of goods that must be sold just to cover cost

broad view of the organization

tasks and procedures are important only if they meet the company’s overall goals

bullwhip effect

inaccurate or distorted demand information created in the supply chain

business-to-consumer (B2C) e-commerce

Online businesses sell to individual consumers