MKT 364 Operations Management Test 2
Terms in this set (83)
Good or service the organization provides society.
To develop and implement a product strategy that meets the demands of the marketplace with a competitive advantage.
Product Strategy options
stage in the product life cycle where fine tuning may warrant unusual expenses for:
2. Product Development
3. Process modification and enhancement
4. Supplier development
stage in the product life cycle where product design begins to stabilize, effective forecasting of capacity becomes necessary, and adding or enhancing capacity may be necessary
stage in the product life cycle where competitors are now established, high volume innovative production may be needed, improved cost control, reduction in options, and paring down of product line.
Stage in the product life cycle where unless the product makes a special contribution to the organization, it must be planned to terminate the offering.
Lists products in descending order of their individual dollar contribution to the firm.
Product is designed so that small variations in production or assembly do not adversely affect the product. Lower cost, higher quality
Products designed in easily segmented components. Adds flexibility to both production and marketing. Improved ability to satisfy customer requirements.
Focuses on design improvement during production.
Bill of Material (BOM)
lists the components of a product and where they're used. also shows product structure.
Parts grouped into families with similar characteristics. Coding system describes processing and physical characteristics. Part families can be produced in dedicated manufacturing cells.
Shows exploded view of the product. details relative locations to show how to assemble the product
identifies the point of production where components flow into subassemblies and ultimately into the final product.
Lists the operations and times required to produce a component.
Instructions to produce a given quantity of a particular item, usually to a schedule
Engineering Change Notice (ECN)
A correction or modification to a products definition or documentation
Process Chain Network
Analysis focuses on the ways in which processes can be designed to optimize interaction between firms and their customers.
steps in the process chain network that involves interaction between participants.
steps in the process chain that includes process steps inwhich one participant is acting, on resources where he each has maximum control.
The objective is to create a process to produce offerings that meet customer requirements within cost and other managerial constraints. Has long term effects on efficiency and production flexibility, costs and quality.
-facilities are organized around specific activities or processes
-General purpose equipment and skilled personnel
-High degree of product flexibility
-Typically high costs and low equipment utilization
-Product flows may vary considerably making planning and scheduling a challenge
-Facilities often organized as assembly lines
-Characterized by modules with parts and assemblies made previously
-Modules may be combined for many output options
-less flexibility than process-focused facilities, but more efficient.
-facilities are organized by product
-high volume, but low variety of products
-Long, continuous production runs enable efficient processes
-Typically high fixed cost but low variable cost
-Generally less skilled labor
-Rapid, low-cost production of goods and service to satisfy increasingly unique customer desires
-Combines the flexibility of a process focus with the efficiency of a product focus.
The ability to respond with little penalty in time, cost, or customer value
Process analysis and design tool that shows the movement of materials
Process analysis and design tool that shows flows and time frame
Process analysis and design tool that shows flows and time and value added beyond the immediate organization.
Process analysis and design tool that uses symbols to show key activities.
Process analysis and design tool that focuses on customer/provider interaction. Defines 3 levels of interaction
develops an effective and efficient layout that will meet the firm's competitive requirements.
Type of layout that positions workers, their equipment, and spaces/offices to provide for movement of information.
Type of layout that Allocates display space and responds to customer behavior.
Type of layout that Addresses trade-offs between space and material handling.
Type of layout that addresses the layout requirements of large, bulky projects such as ships and buildings.
Process-Oriented layout (Job shop, intermittent production)
Type of layout that deals with low-volume, high variety production
Work cell layout
Type of layout that arranges machinery and equipment to focus on production of a single product or group of related products.
Type of layout that seeks the best personnel and machine utilizations in repetitive or continuous production.
fees that manufacturers pay to retailers to get the retailers to display their product.
Reorganizes people and machines into groups to focus on single products or product groups.
total work time available/Units required to satisfy customer demand
Total operation time required/takt time
-Builds components on a series of machines
-Require mechanical or engineering changes to balance
-puts fabricated parts together at a series of workstations
-paced by work tasks
-balanced by moving tasks
The totality of features and characteristics of a product or service that bears on its ability to satisfy stated or implied need
view of quality that requires better performance and more features
view of quality that requires conformance to standards, making it right the first time.
view of quality that requires specific and measurable attributes of the product.
cost of quality that reduces the potential for defects.
cost of quality that evaluates products, parts, and services.
cost of quality resulting from producing defective parts of service before delivery.
cost of quality that result from defects discovered after delivery
Total quality management (TQM)
Encompasses entire organization, from supplier to customer.
Stresses a commitment by management to have a continuing, companywide drive toward excellence in all aspects of products and services that are important to the customer
A TQM concept that represents continual improvement of all processes, involving all operations and work centers including suppliers and customers.
A TQM concept that is the statistical definition of a process that is 99.9997% capable, or a program designed to reduce defects, lower costs, and improve customer satisfaction.
Six Sigma DMAIC
-Defines the purpose, then identifies required process information, keeping in mind the customer's definition of quality
-Measures the process and collects data
-Analyzes the data ensuring repeatability and reproductibility
-Improves by modifying or redesigning existing processes and procedures
-Controls the new process to make sure performance levels are maintained
A TQM concept that gets employees involved in product and process improvements.
Group of employees who meet regularly to solve problems, often led by a facilitator.
A TQM concept that selecs the best practices to use as a standard for performance.
A TQM concept that cuts the cost of quality, improves quality, as easier to employ with less inventory.
A TQM concept that uses engineering and experimental design methods to improve product and process design. Identify key component and process variables affecting product variation.
-Quality loss function
a Taguchi concept that has the ability to produce products uniformly in adverse manufacturing and environmental conditions
Quality loss function
a Taguchi concept that Shows that costs increase as the product moves away from what the customer wants
Seven tools of TQM
A TQM concept that gives tools for generating ideas, to organize data, and for identifying problems.
TQM tool for generating ideas, an organized method of recording data.
TQM tool for generating ideas, a graph of the value of on variable vs. another variable
TQM tool for generating ideas, identifies process elements (causes) that might effect an outcome.
TQM tool to organize data, A graph to identify and plot problems or defects in descending order of frequency
Flowchart (Process diagram)
TQM tool to organize data, A chart that describes the steps in a process.
TQM tool for identifying problems, A distribution showing the frequency of occurrences of a variable.
Statistical process control chart
TQM tool for identifying problems, A chart with time on the horizontal axis to plot values of a statistic.
Statistical Process Control (SPC)
Uses statistics and control charts to tell when to take corrective action. there are 4 key steps
4 steps of Statistical Process Control
1. measure the process
2. when a change is indicated, find the assignable cause.
3. eliminate or incorporate the cause
4. restart the revised process
The concept of foolproof devices or techniques designed to pass only acceptable product.
Statistical Process Control
provides a statistical signal when assignable causes of variation are present
variation that affects virtually all production processes, and the output measures follow a probability distribution. it is the expected amount of variation.
Also called special causes of variation. type of variation that can be traced to a specific reason.
a measure of the relationship between the natural variation of the process and the design specifications.
Acceptable Quality level (AQL)
Poorest level of quality we are willing to accept.
Lot Tolerance Percent Defective (LTPD)
Quality level we consider bad. Consumer does not want to accept lots with more defects than LTPD
Producer's risk (alpha)
Probability of rejecting a good lot, Probability of rejecting a lot when the fraction defective is at or above the AQL
Consumer's risk (beta)
Probability of accepting a bad lot, probability of accepting a lot when fraction defective is below the LTPD.
YOU MIGHT ALSO LIKE...
Introduction to Business | Gaspar, Bierman, Kolari, Hise, Smith, Arreola-Risa
MGT CH 6
CHPT 6 Managing Quality
OTHER SETS BY THIS CREATOR
ACC 311 CHAPTER 1- 1 OF 7
MGT 342 final study guide
MGT 465 Fossum
MGT 465 Missouri State Pace (Exam 3)
THIS SET IS OFTEN IN FOLDERS WITH...
MKT 364 Exam 1 (Chapter 1-4)
MKT 364 Exam 2
MKT 364- Test 2
MKT 364 Exam 1