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Operation Management Final

Terms in this set (38)

Quality
the totality of features and characteristics of a product or service that bears on its ability to satisfy stated or implied needs
ISO 9000
Set of international standards on quality management and quality assurance, critical to international business
Cost of Quality (COQ)
the cost of doing things wrong - that is, the price of non-conformance
Total Quality Management (TQM)
a comprehensive approach - led by top management and supported throughout the organization - dedicated to continuous quality improvement, training, and customer satisfaction
PDCA
Plan - define the problem; Do - implement and collect data; Check - study and analyze; Act - if successful, follow the new standard.
Six Sigma
A business process for improving quality, reducing costs, and increasing customer satisfaction
Employee Empowerment
giving employees responsibility and authority to make decisions regarding all aspects of product development or customer service
Quality Circles (QC)
- consists of a small voluntary group of employees who work together on a particular job and meet regularly to discuss job-related problems and solutions
- representatives from the group then present their solutions to management
- have a positive impact on employee attitudes but no effect on job performance
Benchmarking
A process of continuously measuring system results, comparing those results to optimal system performance (benchmark values), and identifying steps and procedures to improve system performance
Quality Robust
products are products that can be produced uniformly and consistently in adverse manufacturing and environmental conditions
Target-oriented quality
continuous improvement to bring the product exactly on target
Quality Loss Function (QLF)
A mathematical function that identifies all cost connected with poor quality and shows how these costs increase as product quality moves from what the customer wants.
cause and effect diagram (fishbone diagram)
A diagram that maps out a list of factors that are thought to affect a problem or the desired outcome.
Statistical Process Control (SPC)
The process of testing statistical samples of product components at each stage of the production process and plotting those results on a graph. Any variances from quality standards are recognized and can be corrected if beyond the set standards.
Control Chart
a time-ordered diagram that is used to determine whether observed variations are abnormal
source inspection (source control)
ensure perfect product to your customer
Poka-yoke
Safeguards built into a process to reduce the possibility of errors.
variable inspection
classifications of inspected items as falling on a continuum scale, such as dimension or strength
attribute inspection
classifies items as being either good or defective
Just-in-time (JIT)
An inventory-management approach in which supplies arrive just when needed for production or resale
Taguchi Concepts
Quality robustness
Quality loss function
Target-oriented quality
Statistical Process Control
a system in which management collects and analyzes information about the production process to pinpoint quality problems in the production system
Control Chart
a statistical chart of time-ordered values of a sample statistic
xbar chart
a quality control chart for variables that indicates when changes occur in the central tendency of a production process
R-chart
ca control chart that tracks the "range" within a sample; it indicates that a gain or loss in uniformity has occurred in dispersion of a production process
crossover chart
a chart of costs at the possible volumes for more than one process
Process Strategy
an organization's overall approach for physically producing goods and services
Capicty
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Design Capacity
The maximum output rate or service capacity an operation, process, or facility is designed for
Effective capacity
the capacity a firm can expect to achieve, given its product mix, methods of scheduling, maintenance, and standards of quality
utilization
the percentage of time a system is used
Capacity analysis
determining throughput capacity of workstations or an entire production system
Bottleneck
process in which a large population declines in number, then rebounds
Process time
the amount of time work is actually done on the product
Bottleneck time
the time of the longest (slowest) process; the bottleneck
throughput time
the amount of time required to turn raw materials into completed products
breakeven analysis
the process of determining the number of units a firm must sell to cover all costs
Net Present Value (NPV)
the sum of the present values of expected future cash flows from an investment, minus the cost of that investment
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