Operations Management: TQM, Lean, and Six Sigma (Vocabulary Flashcards)

A set of 50 vocabulary flashcards drawn from the video notes on TQM, Lean, Six Sigma, and related operations management concepts.

TQM (Total Quality Management)

An all-inclusive management approach that seeks to advance the quality of processes, products, services, and culture through continual minor changes in response to constant feedback.

Six Sigma

A data-driven methodology and set of tools aimed at reducing defects and variation in processes to improve quality and efficiency; introduced in the 1980s by Motorola.

Lean

A management philosophy focused on maximizing customer value while minimizing waste; originated from Toyota and the Toyota Production System.

7 Deadly Wastes

The seven Lean wastes: Overproduction, Waiting, Transport, Motion, Over-processing, Inventory, and Defects.

Overproduction

Producing more than customer demand.

Waiting

Lag time between steps in production with no value added.

Transport

Waste from inefficient movement of materials or products.

Motion

Inefficient worker movement and poor work standards between tasks.

Over-processing

Spending too much time or producing in an inefficient way.

Inventory

Excess inventory or work-in-progress.

Defects

Time spent identifying and fixing production mistakes.

Define (DMAIC)

First step; define the problem and its effect on the current process.

Measure (DMAIC)

Second step; measure current data and identify what isn’t working.

Analyze (DMAIC)

Third step; analyze data to get to the root of the problem.

Improve (DMAIC)

Fourth step; develop, test, and implement improvements.

Control (DMAIC)

Maintain improvements over time; sustain the process.

DMAIC

Define, Measure, Analyze, Improve, and Control; Six Sigma process improvement method.

CTQ (Critical-to-Quality) Characteristics

Attributes determined by customer needs that are critical to quality.

Data-Driven Decision Making

Using statistical analysis and data to measure, analyze, and improve processes.

Cross-Functional Teams

Teams spanning multiple departments to solve problems.

Value Stream Mapping

Lean tool to map all steps in a process to identify value-added vs non-value-added activities.

Kaizen

Continuous improvement through small, ongoing changes in Lean.

5S

Sort, Set in order, Shine, Standardize, Sustain—workplace organization method.

Just-In-Time (JIT)

Lean focus on delivering only what is needed when it is needed to reduce inventory.

Mass Customization

Rapid, low-cost production of goods/services to fulfill changing, unique customer desires.

New Supply Chain Management

Management of the sequence of organizations, facilities, functions, and activities involved in producing and delivering a product or service.

Outsourcing

Buying goods or services rather than producing them internally.

Agility

Ability to respond quickly to demands or opportunities; a flexible system.

Electronic Commerce

Use of computer networks, primarily the internet, to buy and sell products, services, and information.

Cost Leadership

Strategy emphasizing efficiency and cost reduction to offer products/services at lower prices.

Differentiation

Strategy focusing on unique products or services, often with higher quality or innovation.

Flexibility

Ability to adapt quickly to changes in the market or customer demands.

Speed

Ability to deliver products or services faster than competitors.

Quality

Emphasizing quality as a strategic priority to meet or exceed customer expectations.

Cost Focus

One of three Evolution focuses in Operations Management, prioritizing cost reduction.

Quality Focus

One of three Evolution focuses, prioritizing quality improvements.

Customization Focus

One of three Evolution focuses, prioritizing customization.

Simple Product Supply Chain

A basic supply chain: Supplier’s Supplier → Direct Supplier → Producer → Distributor → Final Consumer.

GPS

Global Positioning System; an example of Technology and Information Systems management.

Inputs and Outputs

Understanding the transformation from inputs (materials, labor, technology) to outputs (goods/services).

Processes

Identifying and managing the processes that convert inputs into outputs; includes optimization.

Supply Chain Management

Coordinating the flow of materials, information, and finances from suppliers to consumers.

Quality Management

Ensuring products or services meet or exceed customer expectations; includes quality control and improvement.

OM (Operations Management)

The field focused on designing, overseeing, and controlling the production and delivery of goods and services.

Competitive Advantage

A source of advantage; well-managed operations enable quicker responses to market changes.

Innovation

Drives improvements in processes and products, contributing to organizational growth.

Lean Six Sigma

Integration of Lean and Six Sigma to combine waste reduction with defect/variation reduction for comprehensive process improvement.