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MGMT 4000 Final Blackstone
UGA MGMT 4000 taught by John Blackstone
77
Management
Undergraduate 3
05/04/2011

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Term
Total Quality Management
Definition
Japanese-style management approach, long-term success through customer satisfaction. TQM is based on the participation of all members of an organization in improving processes, goods, services, and the culture in which they work.
Term
Project Quality Dimensions
Definition
Performance
Features
Reliability
Conformance

Durability
Serviceability
Aesthetics
Perceived Quality
Term
Service Quality Dimensions
Definition
Tangibles
Service Reliability
Responsiveness
Assurance
Empathy
Term
Concurrent Engineering
Definition
Concept referring to the participation of all functional areas of the firm into product design.

get everyone involved to make high quality at low costs.
Term
William Edward Deming
Definition
American statistician credited with improving production in WWII.

"A loyal customer is a profitable customer."

Created the 14 points for MGMT.

Create a constancy of purpose towards improve,et of product service with the aim to become competitive, stay in business, and provide jobs.
Term
PDCA
Definition
Shewart/Deming Wheel.

Plan Do Check Act
Term
Old Quality Images
Definition
Low quality caused by people
Loss of work ethic
Some defects acceptable
Inspect for product problems
Higher quality means higher costs
Term
New Quality image
Definition
Low quality caused by management of people
Need for good management
Zero defects is the goal
Inspect for process problems
Higher quality means higher profits
Term
Joseph Moses Juran
Definition
American industrial engineer and philanthropist.

a business and industrial quality "guru," is known worldwide as one of the most important 20th century thinkers in quality management.
Term
Pareto's Law
Definition
80/20 rule, majority of quality problems are the result of relatively few issues. (juran)
Term
Philip Crosby
Definition
was a businessman and author who contributed to management theory and quality management practices.

initiated the Zero Defects program at the Martin Company

As the quality control manager of the Pershing missile program, Crosby was credited with a 25 percent reduction in the overall rejection rate and a 30 percent reduction in scrap costs.
Term
Kaoru Ishikawa
Definition
Japanese University professor and influential quality management innovator

Ishikawa or cause and effect diagram (also known as Fishbone Diagram) that are used in the analysis of industrial process. He is considered one of the Quality Gurus.
Term
Genichi Taguchi
Definition
drafted into the Astronomical Department of the Navigation Institute of the Imperial Japanese Navy.

joined the Ministry of Public Health and Welfare where he came under the influence of eminent statistician Matosaburo Masuyama who kindled his interest in design of experiments

The Taguchi Loss function
Term
Taguchi Loss Function
Definition
graph used to get the ideal amount, too little or too much loses profits. (12 oz drink)
Term
Tolerance stack up
Definition
failures occur largely because components, within tolerance but not precisely on specification, don’t fit perfectly and cause excessive wear.
Term
Armand Feigenbaum
Definition
American quality control expert


First Ph. D. in Quality (MIT, 1950s)

Authored Total Quality Control

Credited with initializing the field of Total Quality Management (as differentiated from to Deming’s Statistical Quality Control)
Term
Shigeo Shingo
Definition
Japanese industrial engineer who distinguished himself as one of the world’s leading experts on manufacturing practices and The Toyota Production System


Poka-yoke (failsafing) – Rather than relying entirely on statistical control techniques, create a method that will not permit a part to be made that is not with tolerance.
Made numerous contributions to just-in-time practice. Has half a dozen books translated into English including Zero Quality Control.
Term
The Malcolm Baldridge National Quality Award
Definition
Administered by the National Institute of Standards and Technology, Department of Commerce. Established 1989.
Six categories, 2 awards per category per year (All 12 have never been awarded in a single year):
Small Business (less than 500 employees)
Large Manufacturers
Service Sector
Education
Hospitals
Non profits
Term
Baldridge Award categories
Definition
Leadership 120
Strategic Planning 85
Customer and Market Focus 85
Measurement, Analysis and Knowledge Management 90
Human Resource Focus 85
Process Management 85
Business Results 450
Term
The Deming Prize
Definition
Japanese Quality award. Oldest quality prize.
Term
Deming Categories
Definition
Policy
Organization and operations
Collecting useful Information
Analysis
Planning for the Future

Education and training
Quality assurance
Quality effects
Standardization
Control
Term
Quality Management/Process control stages
Definition
(1) no quality management, (2) inspection, and (3) process control.
Term
Myth: Quality work takes more time
Definition
Reality: Quality work requires a good and structured process, and then it takes less time. For example, working with a complete kit in development, sales, or production processes requires fewer cycles in the process and naturally a smaller time investment and shorter cycle time.
Term
Myth: Quality costs more money
Definition
Reality: High-quality work and a quality process cost less money because they result in less rework and fewer cycles, and they reduce the garbage plant. Thus, quality costs less and contributes to higher profit. Many customers are willing to pay a premium for quality services or products.
Term
Myth: It is not possible to provide a quality service or quality product in large quantities.
Definition
Reality: It is possible to provide quality service and produce a quality product even in large quantities if the process is good, consistent, and reliable…and a quality process of selecting, training, and controlling the employees.
Term
Six Sigma
Definition
quality tools and philosophies in an honest effort to provide rigor and repeatability to quality improvement efforts

more cost-reduction-oriented than traditional continuous improvement

creates champions, black belts, green belts, and in some situations, yellow belts
Term
Champion
Definition
Work with black belts to identify possible projects
Term
Master Black Belts
Definition
Work with and train new black belts
Term
Black Belts
Definition
Committed full time to completing cost-reduction projects
Term
Green Belts
Definition
Trained in basic quality tools
Term
DMAIC
Definition
Define
Measure
Analyze
Improve
Control
Term
DMAIC Phases
Definition
Develop the business case
Project evaluation
Pareto analysis
Project definition
Term
Reasons for Six-Sigma failure:
Definition
Lack of leadership by champions
Misunderstood roles and responsibility
Lack of appropriate culture for improvement
Resistance to change and the Six-Sigma structure
Faulty strategies for deployment
Lack of data
Term
Statistical Thinking
Definition
All work occurs in a system of interconnected processes
All process have variation (The amount of variation tends to be underestimated)
Understanding variation and reducing variation are important keys to success
Term
sample
Definition
drawn from a production or service process in order to ask the question, Is the process in control (i.e. conforming to specifications). Because we take a sample rather than a complete census, it is possible that we can draw an unrepresentative sample and reach the wrong conclusion
Term
Type I error
Definition
producer’s risk
Term
Type II error
Definition
consumer’s risk
Term
Random variation
Definition
Centered around the mean
Consistent amount of dispersion
This type of variation cannot be controlled….The statistical tools discussed in this chapter are not designed to correct random variation
Term
Nonrandom variation
Definition
“Special Causes”
Results from some uncommon event
Dispersion and mean of the process are changing
Process that is not repeatable
Find a bad symptom, then “ask why 5 times” to get to the underlying core problem
Term
variable
Definition
a continuous measurement such as weight, height, or volume.
Term
attribute
Definition
either counted or is a yes/no decision.
Term
procedure for developing process charts
Definition
Identify critical operations in the process

Identify critical product characteristics

Determine whether the critical product characteristic is a variable or an attribute

Select the appropriate statistical process control chart

Establish the control limits and use the chart to continually monitor the critical parameter and (offline) improve the process using the information obtained by monitoring the process

Update the mean as well as the upper and lower control limits as needed when changes made to the process change the population parameters.
Term
Tests for process control
Definition
One or more points fall outside Zone A

Two of any three points fall outside the Zone B on the same side of the mean.

Four of any consecutive five points fall outside the Zone C on the same side of the mean.

Seven consecutive intervals either increase or decrease

Eight or more consecutive points fall on the same side of the center line

Fifteen consecutive points lie within Zone C

Any obvious nonrandom pattern occurs.
Term
Masaaki Imai’s Kaizen
Definition
Continuous, incremental, improvement is achieved
by having everyone participate in the Continuous
Improvement effort.
Term
Just-in-Time
Definition
From raw material to final customer, deliver each item just as needed.

Drive continuous improvement by striving for faster flow of goods, which causes problems and forces one to deal with them.
Term
Taichi Ohno
Definition
The idea for JIT came to Toyota VP Taichi Ohno while visiting a U.S. supermarket.

Shigeo Shingo made JIT possible at Toyota by dramatically lowering setup times. Shingo is known today for SMED (Single Minute Exchange of Dies).
Term
American Production and Inventory Control Society (APICS)
Definition
Brought JIT to the USA with their Zero Inventory Crusade and by the big three automobile manufacturers, who adopted JIT and required their suppliers to adopt it.
Term
Management Commitment
Definition
managers are educated in the nature of the system they want implemented, actively involved in bringing about the implementation, and interested and concerned about the impact the system will have on workers.
Term
Kanban
Definition
Cards, standardized containers, or even a square painted on the floor may be used to signal to a worker that it is time for him or her to produce one container of parts
Term
Rocks and Stream Analogy
Definition
Problems can be covered up by more inventory but JIT seeks to reduce inventory to expose problems and get rid of them.

Inventory is water, problems are rocks.
Term
Setup time
Definition
the time between finishing the last part of one order and starting the first part of the next.
Term
Obsolete Measures of Performance
Definition
Equipment utilization

Worker efficiency

Individual incentives

Costing based on direct labor hours
Term
JIT 3 rules
Definition
Rule I: Work only as needed in terms of time, quantity, and specifications.

Rule II: Work in small, appropriate, and smart batches.

Rule III: Avoid waste and activities that do not add value to the organization.
Term
Transfer batch
Definition
The number of units, number of work hours, or frequency of transfer between one work station and another.
Term
Process (working or production) batch
Definition
The number of units (or labor hours) that are worked on continuously at a workstation. This is the amount of work between one setup and the next.
Term
Examples of waste
Definition
Overproduction
Waiting times
Unnecessary conveyance
Rejected products in processing
Surplus stock
Term
Controlling bad multitasking
Definition
Teach and explain
Apply strict control using tactical gating
Measure, follow up, can control the number of tasks assigned to each worker
Term
Resource/Feeder buffer
Definition
early warnings given to resource required to enter in the CC at a later time.
Term
Project Completion Buffer
Definition
Protects against the CC itself, 1/2 the length of the CC.
Term
Project Development life cycle
Definition
objectives
required definitions
design (ext. and int.)
Construction (Most time and resources)
System tests
implementation/maintenance
Term
Phase Reviews
Definition
to establish agreement that all required work for that Phase has been done properly, and that the organization supports a decision for the project to proceed to the next phase, or conversely, to terminate the project.
Term
Quantitative Objectives for success
Definition
1) Did the end product meet the design specifications set forth?
2) Does it perform well?
3) Were all project objectives achieved?
4) Can the financial benefits be quantified? Was the necessary basic data saved from the old environment to be compared to results in the new environment?
5) Do these results measure up to the commitments made in the financial business case used to justify the project?
6) Is the design of the product thoroughly documented and maintainable?
7) Have project requirements for all constituencies been satisfied?
Term
why projects fail
Definition
*Uninvolved Users/Customers
*Poorly Defined End Products
*Scope and the Multiplication of Interfaces
*Uncontrolled Changes
*Undisciplined Management System
*Inappropriate Focus on Technology
*Assuming 100% Availability of Committed Resources
*Poor Scheduling
Term
How long should the forecast be?
Definition
As long as the longest lead time for the thing to be planned.
Term
Independent demand items
Definition
finished goods (such as automobiles) and replacement parts (such as replacement tires) need to be forecast.
Term
Dependent demand items
Definition
– component parts (such as tires included as original equipment) are derived from demand for their parent items.
Term
forecasting techniques
Definition
Moving averages
Weighted Moving Averages
Exponential Smoothing
Decomposition
Term
Forecast Accuracy and Bias
Definition
Forecast accuracy measures how far, on the average a forecast is removed from actual demand.

Forecast bias measures the tendency of the forecast to be systematically either too high or too low
Term
supply chain
Definition
consists of all stages involved, directly or indirectly, in fulfilling a customer request. The supply chain not only includes the manufacturer and suppliers, but also transporters, warehouses, retailers, and customers themselves.
Term
Objective of a supply chain
Definition
The objective of every supply chain is to maximize the overall value generated. The value a supply chain generates is the difference between what the final product is worth to the customer and the effort the supply chain expends in filling the customer’s request. For most commercial supply chains, value will be strongly correlated with supply chain profitability.
Term
Supply chain strategy or design
Definition
Strategic decisions made by companies include the location and capacities of production and warehousing facilities, products to be manufactured or stored at various locations, modes of transportation to be made available along different shipping legs, and type of information system to be utilized
Term
Supply chain planning
Definition
Planning includes decisions regarding which markets will be supplied from which locations, the planned building of inventories, the subcontracting of manufacturing, and the replenishment and inventory policies to be followed.
Term
Supply chain operation
Definition
The goal of supply chain operations is to implement the operating policies in the best possible manner
Term
How is strategic fit achieved?
Definition
Understanding the customer

Understanding the supply chain

Achieving strategic fit
Term
Product Life cycle attributes
Definition
Demand has become more certain
Margins are lower due to an increase in competitors and more competitive pressure
Price becomes a significant factor in customer choice
Term
Obstacles to achieving strategic fit
Definition
Increasing variety of products
Decreasing product life cycle lengths
Increasingly demanding customers
Fragmentation of supply chain ownership
Globalization
Difficulty executing new strategies
Term
Paradigm
Definition
the way we see the world - not in terms of our visual sense of sight, but in terms of perceiving, understanding, interpreting. - Stephen Covey
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