Term
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Definition
| The planning, scheduling, and control of the activities that transform inputs into finished goods and services |
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Term
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Definition
| ACTIVE management of supply chain activities and relationships to maximize customer value and achieve a sustainable competitive advantage |
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Term
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Definition
Upstream = suppliers ect.
Downstream = Retailers Distributors
ect.
1st tier suppliers and 2nd tier suppliers |
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Term
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Definition
| Long-term master plan for the company; establishes the general direction |
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Term
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Definition
| Further develop the business strategy in segments of business - must be aligned and coordinated |
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Term
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Definition
| Organizational strengths that provide focus and foundation for the company's strategies |
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Term
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Definition
Differentiators - performance not yet duplicated by competitiors
Competitive advantage - performance better than all or most of the competitiors |
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Term
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Definition
| Minimus accptable level of performance |
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Term
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Definition
A process for determining the best choice when there are no unambiguous formulas for doing so
Helps maintain focus in gathering and assessing relevant data |
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Term
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Definition
Just-in-time
Repetitive production system in which processing and movement of materials and goods occur JUST AS THEY ARE NEEDED |
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Term
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Definition
Tighter coordination along the supply chain
Goods are pulled along, only make and ship what is needed |
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Term
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Definition
Eliminate disruptions
Make the system flexible
Reduce setup times and lead times
Minimize inventory
ELIMINATE WASTE |
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Term
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Definition
| anything other than the minimum amount of equipment, materials, parts, space and workers' time, which are absolutely essential to add value to the product |
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Term
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Definition
| Process of reducing inventory leads to reduction of the other wastes and exposes problems in order of severity (Iceburg analogy) |
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Term
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Definition
| A methodology that combines well with Lean goals, helps address the "rocks" as they become exposed when reducing inventory |
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Term
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Definition
Product design: Standard parts, modular design, quality
Process design
Personnel and organizational elements
Manufacturing planning and control |
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Term
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Definition
Uses simple visual signals to control production - Pull processing
ex. empty slot in hamburger chute
empty space on floor
Kanban card |
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Term
| Primary business processes |
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Definition
| Value-added work dircting related to what the custormer pays for |
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Term
| Support business processes |
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Definition
| Purchasing, maintenance, transportation to point-of-sale, moving and tracking material between value-added steps, administration, ect |
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Term
| Development Business Processes |
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Definition
| Design, assessment, and marketing efforts to provide new services or products, training new job skills |
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Term
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Definition
Shows functional relationships versus time
Can help in measuing loading on various functional areas
Illustrates cross-function communication processes |
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Term
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Definition
Poductivity
Efficiency
Cycle Time
Benchmarking |
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Term
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Definition
A comparison of a company's actual performance ot some standard
100%(actual rate/standard rate) |
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Term
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Definition
Total time required to complete a process from start to finish
Also called througput, fulfillment, or takt time |
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Term
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Definition
A comparison of a company's performance to the performance of
Other firms in its industry (stratigic)
Firms identified as "world-class" (process) |
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Term
| Six Sigma: Core value defect level |
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Definition
based on allowing the mean of a process to drift to within about 4.5 standard deviations of either specification limit.
A true six sigma variation around a mean centered within specifications would correspond to a defect level of 2 parts per billion |
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Term
| Two basic Six Sigma processes are |
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Definition
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Term
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Definition
| Define-measure-analyze-improve-control) |
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Term
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Definition
| Define Measure Analyze Design Verify |
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Term
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Definition
Performance
Features
Reliability
Durability
Conformance
Aesthetics
Serviceability
Perceived Quality |
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Term
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Definition
| Quality analyzed in economic terms |
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Term
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Definition
Failure Costs
Appraisal Costs
Prevention Costs |
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Term
| Total Quality Management TQM |
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Definition
Managing the entire organization so that it excels in all dimensions important to the customer
Product development
Marketing
Operations
Supply chain
Support services |
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Term
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Definition
Customer focus
Leadership involvement
Continuous improvement
Employee empowerment
Quality assurance (including SQC or SPC)
Strategic partnerships
Strategic quality plan |
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Term
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Definition
| Statistical Quality Control |
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Term
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Definition
| Statistical Process Control |
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Term
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Definition
| Each employee has a customer whether internal or external to the company |
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Term
| TQM Leadership involvement |
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Definition
| Must be 'top' down, throughout the company |
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Term
| TQM Continuous improvement |
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Definition
| supports other core principles |
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Term
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Definition
Key to success
Lack of empowerment major cause of TQM/SPC failures |
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Term
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Definition
Quality Function Deployment (QFD) discussed in Ch. 6
Statistical quality control (SQC) aslo called statistical process control (SPC)
Acceptance sampling (OC curve) |
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Term
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Definition
| Can the process provide accptable quality CONSISTENTLY |
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Term
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Definition
Upper Tolerance Limit - Lower Tolerance Limit / 6o
o is the estimated standard deviation for the individual ovservation |
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Term
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Definition
| When a process operates with +-6o vartiaton centered between the tolerance limits, only 2 parts out of a billion will be unaccptable |
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Term
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Definition
| Used when the process is not precisely cntered between the tolerance limits |
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Term
| Statistical Process Control |
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Definition
Statistical - Uses statistics of samples rather than individual items
Reduces cost compared to inspecting every item
Only used when defects can be quantified |
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Term
| Sample size vs Number of Samples |
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Definition
| Sample size = number in each group n (12 eggs) Number of samples = number of groups k (1 carton) |
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Term
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Definition
| continuous values - lenght weight ect |
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Term
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Definition
| Good, bad, #defects/unit, % |
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