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Supply chain management
supply chain ch. 4-7
157
Business
Undergraduate 3
07/08/2011

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Term
What is quality?
Definition
a) the characterisics of a product or service that bear on its ability to satisfy stated or implied needs. Or B) a product or service free of deficiencies.
Term
What is valve perspective?
Definition
a quality perspective that holds that quality must be judged, in part, by how well the characteristics of a particular product or service align with the needs of a specific user.
Term
What are eight qualities used to evaluate a service?
Definition
performance, features, reliability, durability, conformance, aesthetics, serviceability, and percieved quality.
Term
What is a conformance perspective?
Definition
a quality perspective that focuses on whether or not a product was made or a service was performed as intended.
Term
What must an organization do in order to provide high quality products or services
Definition
1.) understand what dimensions of quality are most important to users.
2.) develop products or services that will meet the users requirements
3.) put in place business processes capable of meeting the specifications driven by the users' requirements.
4) verify that the business processes are indeed meeting the specifications.
Term
what are internal failure costs?
Definition
costs caused by defects that occur prior to delivery to the customer, including money spent on repairing or reworking defective products, as well as time wasted on these activities.
Term
What are external failure costs?
Definition
costs incurred by defects that are not detected until a product or service reaches the customer.
Term
what are appraisal costs?
Definition
costs a company incurs to assess its quality levels.
Term
what are prevention costs?
Definition
the costs an organization incurs to actually prevent defects from occurring to begin with.
Term
What is the total cost of quality curve?
Definition
a curve that suggests there is some optimal quality level, Q. the curve is calculated by adding costs of internal and external failures, prevention costs, and appraisal costs.
Term
what do each of the curves look like?
Definition
total cost of quality- upsidedown bell
prevention costs- exponential negative slope.
internal failure costs- exponential positive slope
appraisal costs - straight line.
Term
to fully address both the value and the conformance perspectives on quality, organizations must...
Definition
1.) understand what dimensions of quality are most important to users.
2.) develop products and services that will meet the users' requirements.
3.) put in place business processes capable of meeting the specifications driven by the user's requirements.
4.) verify that the business processes are indeed meeting the specifications.
Term
What is total quality management?
Definition
a managerial approach in which the entire organization is managed so that it excels in all quality dimensions that are important to customers.
Term
what seven core principles is TQM based around.
Definition
1) customer focus
2.) leadership involvement
3.) continuous improvement
4.) employee empowerment
5.) quality assurance
6.) supplier partnerships
7.) strategic quality plan
Term
What is continuous improvement?
Definition
a principle of TQM that assumes there will always be room for improvement, no matter how well an organization is doing.
Term
What is employee empowerment?
Definition
giving employees the responsibility, authority, training, and tools necessary to manage quality.
Term
What is quality assurance?
Definition
the specific actions firms take to ensure that their products, services, and processes meet the quality requirements of their customers
Term
what is quality function developement?
Definition
a technique used to translate customer requirements into technical requirements for each stage of product developement and production.
Term
What is statistical quality control?
Definition
the application of statistical techniques to quality control
Term
What is a strategic quality plan?
Definition
An organizational plan that provides the vision, guidance, and measurements to drive the quality effort forward and shift the organization's course when necessary.
Term
What is the process owner?
Definition
a team or induvidual who has the authority and responsibility for improving the organization's business processes and who is awarded accordingly.
Term
What are the main differences between tqm and six sigma?
Definition
1.) tqm is a managerial approach in which the entire organization is managed so that it excels in all quality dimensions that are important to customers.
2.) SSM methodology builds upon TQM.
3.) SSM includes specific processes such as DMAIC, DMADV
4.) SSM defines specific organizational roles and career paths
5.) SSM has an expanded tool kit that includes computer simulation, optimization model, etc.
6.) TQM encapsulates the managerial vision behind quality management; SSM builds upon this to provide organizations with the processes, people, and tools required to carry out this vision.
Term
What is the process capability ratio?
Definition
A mathematical determination of a process's capability to meet certain quality standards. A Cp > or equal to 1 means the process is capable of meeting the standard being measured.
Term
What is the upper tolerance limit?
Definition
The highest acceptable value for some measure of interest.
Term
What is the lower tolerance limit
Definition
the lowest acceptable value for some measure of interest.
Term
What is the process capability index?
Definition
A mathematical determination of a process's capability of meeting certain tolerance limits.
Term
What is the six sigma quality?
Definition
A term used generally to indicate that a process is well controlled, i.e., tolerance limits are + or - 6 sigma, standard deviations from the centerline in a control chart. the term is usually associated with motorola, which named ne of its key operational initiative six sigma quality.
Term
What is a control chart
Definition
A specialized run chart that helps an organization track changes in key measures over time.
Term
What is a continuous variable?
Definition
A variable that can be measured along a continuous scale, such as weight, length, height, and tempoerature.
Term
What is an attribute?
Definition
a characteristic of an outcome or item that is accounted for by its presence or absence, such as defective versus god or late versus on time.
Term
what is a sample average?
Definition
a key measure that represents the central tendency of a measure of interest in a specific sample; used in conjunction with range ( R )
Term
What is the range R
Definition
a key measure that represents the variation of a specific sample group used in conjunction with sample average x.
Term
What is a proportion?
Definition
A measure of the percent of the sample that does or does not have a particular characteristic.
Term
What are control limits?
Definition
the upper and lower limits of a control chart. they are calculated so that if a sample result falls inside the control limits, the process is considered under control.
Term
What is the X bar chart
Definition
a specified type of control chart for continuous variable that is used to track the average value for future samples
Term
What is the R chart?
Definition
a specific type of control chart for a continuous variable that is used to track how much the individual observations within each sample vary.
Term
What is the process for setting up control charts.
Definition
1.) take m samples of size n each while the process is under control
2.) use the sample results to set up the control chart using the tables or formulas provided.
3.)Continue to take samples of size n, and plot them against the control charts.
4.) interpret the results and take appropriate action.
Term
What is a p chart?
Definition
a specific type of control chart for attributes that is used to track sample proportions.
Term
What is acceptable sampling?
Definition
the process of sampling a portion of goods for inspection rather than examining the entire lot.
Term
What is the acceptable quality level?
Definition
a term used in acceptance sampling a cut off value, representing the maximum defect level at which a consumer would always accept a lot.
Term
What is the lot tolerance percent defective?
Definition
a term used in acceptance sampling; represents the highest defect level a consumer is willing to tolerate.
Term
What is consumer risk?
Definition
a term used in acceptance sampling; represents the probability of accepting a lot with quality worse than the LTPD level.
Term
What is the producer's risk?
Definition
a term used in acceptance sampling; represents the probability of rejecting a lot with quality equal or better than the AQL level.
Term
What is the operating characteristics curve?
Definition
used in acceptance sampling. shows the probability of accepting a lot, given the actual fraction defective in the entire lot and the sampling plan being used. Different sampling plans will result in different OC curves.
Term
What is the ISO 9000
Definition
a family of standards, supported by the international organizational for standardization representing an international consensus on good quality management practices. ISO 9000 adresses business processes, rather than specific outcomes.
Term
What is the formula for the process capability ratio?
Definition
Cp= ( UTL - LTL ) / 6o
Term
What is a project?
Definition
A temporary endeavor undertaken to create a unique product, service, or result. Unlike more typical business activities, projects have clear starting and ending points, after which the people and resources dedicated to the project reassigned.
Term
How are projects different from typical business activities?
Definition
1.) projects are non routine
2.) the non routine nature of projects often makes them very difficult to manage.
3.) projects typically require significant levels of cross functional and interorganizational coordination.
4.) projects unlike routine activites have a defined ending point which the project is completed.
Term
What is project management?
Definition
the application of knowledge, skills, tools, and techniques to meet project requirements.
Term
What are the two trends of interest that have pushed project management to the forefront?
Definition
1.) the faster pace of strategic change
2.) The changing role of middle management.
Term
What is the concept phase?
Definition
the first of five phases of a project, here, project planners develop a broad definition of what the project is and what its scope will be.
Term
What is the project definition phase?
Definition
the second of five phases in a project. Here, project planners identify how to organize for the project, the key personnel and resources required to support the project, tentative schedules, and tentative budget requirements.
Term
What is the planning phase?
Definition
the third of five phases of a project. here project planners prepare detailed plans that identify activities, time and budget targets, and the resources needed to complete each task, this phase also includes putting in place the organization that will carry out the project.
Term
What are milestones?
Definition
A performance or time target for each major group of activities in a project.
Term
What is the performance phase?
Definition
the fourth of five phases of a project. in this phase, the organization actually starts to execute the project plan
Term
What is the postcompletion phase
Definition
the fifth of five phases of a project. this is the phase in which the project manager or team confirms the final outcome, conducts a posimplementation meeting to critique the project and personnel, and reassigns project personnel.
Term
What is a Gantt chart
Definition
A graphical tool used to show expected start and end times for project activities, and to track actual progress against these time targets.
Term
What is a network diagram?
Definition
A graphical tool that shows the logical linkages between activities in a project
Term
What is a critical path method?
Definition
A network based technique in which there is a single time estimate for each activitity. An alternative approach is PERT which has multiple time estimates for each activity.
Term
What is the program evaluation and review technique, PERT?
Definition
a network based technique in which there are multiple time estimates for each activity. An alternative approach is CPM, which has a single time estimate for each activity.
Term
What is an activity on node diagram?
Definition
A network diagram in which each activity is represented by a node, or box, and the precedence relationships between various activities are represented with arrows.
Term
What are critical activities?
Definition
Project activites for which the earliest start time and latest start time are equal. Critical activites cannot be delayed without lengthening the overall project duration
Term
What is a network path
Definition
A logically linked sequence of activities in the network diagram
Term
What is a critical path?
Definition
the longest path in the project network. there may be more than one critical path.
Term
What is a forward pass?
Definition
the determination of the earliest start and finish times for each project activity.
Term
What is the earliest start time?
Definition
the earliest an activity can be started, as determined by the earliest finish time for all immediate predecessors.
Term
What is the earliest finish time?
Definition
the earliest an activity can be finished, calculated by adding the activity's duration to its earliest start time.
Term
What is a backward pass?
Definition
the determination of the latest finish and start times for each project activity.
Term
What is the latest finish time?
Definition
the latest an activity can be finished and still finish the project on time, as determined by the latest start time for all immediate successors.
Term
What is the latest start time?
Definition
the latest an activity can be started and still finish the project on time, calculated by subtracting the activity's duration from its latest finish time.
Term
What is slack time?
Definition
the difference between an activity's latest start time ( LS ) and earliest start time ( ES ). Slack time indicated the amount of allowable delay. Critical activities have a slack time of zero.
Term
What is crashing?
Definition
shortening the overall duration of a project by reducing the time it takes to perform certain activities.
Term
What are the set of steps to follow when crashing a project?
Definition
1.) List all network paths and their current lengths. Mark all activities that can be crashed.
2.) Focus on the critical path or paths. Working on one period at a time, choose the activity that will shorten all critical paths at the least cost. One rule: never crash an activity not on a critical path, regardless of the costs.
3.) Recalculate the lengths of all paths, and repeat step 2 until the target project completion time is reached or until all options have been exhausted.
Term
The advent of cheap computer power has resulted in...
Definition
an explosion in the number of project management software packages.
Term
What does the PMI do?
Definition
Project management institution is dedicated to the advancement of operations and supply chain practices.
Term
What is product design?
Definition
the characteristics or features of a product or service that determine its ability to meet the needs of the user.
Term
What is product development process?
Definition
the overall process of strategy, organization, concept generation, product and marketing plan creation and evaluation, and commercialization of a new product.
Term
What are four reason for developing new products and services?
Definition
1.) new products or services can give firms a competitive advantage in the marketplace.
2.) new products or services provide benfits to the firm.
3.) companies develop new products or services to exploit existing capabilities.
4.) Companies can use new product development to block out competitors.
Term
What is supply chain design?
Definition
the process of designing the flow of goods and materials between multiple locations.
Term
What are the 6 dimensions a product design centers around?
Definition
1.) repeatability
2.) testability
3.) serviceability
4.) product volumes
5.) product costs
6.) match between the design and existing capabilities.
Term
what is a robust design?
Definition
the design of products to be less sensitive to variations, including manufacturing variation and misuse, increasing the probability that they will perform as intended.
Term
What is testability?
Definition
the ease with which critical components or functions can be tested during production
Term
What is serviceability?
Definition
the ease with which parts can be replaced, serviced or evaluated.
Term
When a company decides to go forward with a new product or service, it becomes the job of the supply chain managers...
Definition
to make sure that the company can handle the resulting volumes.
Term
what are three main drivers of hidden costs?
Definition
1.) the number of parts in a product.
2.) engineering changes
3.) transportation costs.
Term
What is an engineering change?
Definition
a revision to a drawing or design released by engineering to modify or correct a part.
Term
operations and supply chain managers are always concerned with...
Definition
how well new products or services match up with existing products or capabilties.
Term
What is the concept developement phase?
Definition
the first phase of a product developement effort. Here a company identifies ideas for new or revised products and services.
Term
what is the planning phase
Definition
the second phase of a product developement effort, here the company begins to address the feasibility of a product or service.
Term
What are the 5 stages of product and service developement?
Definition
concept developement, planning, design and developement, commercial prepartion, launch
Term
what is the design and developement phase
Definition
the third phase of a product developement effort. here the company starts to invest heavily in the developement effort and builds and evaluates prototypes.
Term
What is the commercial preparation phase?
Definition
the fourth phase of a product development effort. at this stage, firms start to invest heavily in the operations and supply chain resources needed to support the new product or service.
Term
What is the launch phase?
Definition
the final phase of a product developement effort. For physical products, this usually means filling up the supply chain with products. for services it can mean making the service broadly available to the target marketplace.
Term
What is sequential development process?
Definition
a process in which the product or service idea must clear specific hurdles before it can go on the next development phase.
Term
What is concurrent engineering?
Definition
An alternative to sequential development in which activities in different stages are allowed to overlap with one another, thereby shortening the total development time.
Term
What are the different functions that contribute to the development effort?
Definition
Engineering, marketing, accounting, finance, designers, purchasing, and suppliers.
Term
What is the gray box design?
Definition
used to describe a situation in which the supplier works with the customer to jointly design the product.
Term
What is the black box design?
Definition
used to describe a situation in which suppliers are provided with general requirements and are asked to fill in the technical specifications.
Term
What is DMADV?
Definition
define measure analyze verify. six sigma process that outlines the steps needed to create completely new business processes or products.
Term
What are the five steps of the DMADV process?
Definition
1.) define the project goals and customer deliverables.
2.) measure and determine customer needs and specifications
3) analyze the product or process options to meet the customer needs.
4.) design the product or process
5) verify the new product or process.
Term
What is quality function deployment?
Definition
a graphical tool used to help organizations move from vague notions of what customers want to specific engineering and operational requirements, also called the house of quality.
Term
What are the four matrices of the QFD process?
Definition
1st- customer requirements -> product characteristics
2nd- product characteristics -> product specifications
3rd- product specifications -> process characteristics.
4th- process characertistics -> process specifications
Term
What are computer aided design systems?
Definition
information systems that allow engineers to develop, modify, share, and even test designs in a virtual world. CAD systems helps organizations avoid the time and expense of paper based drawings and physical prototypes.
Term
what are computer aided design. computer aided manufacturing systems?
Definition
An extension of CAD. Here, CAD based designs are translated into machine instructions, which are then fed automatically into computer controlled manufacturing equipment.
Term
What is design for manufacturability?
Definition
the systematic consideration of manufacturing issues in the design and development process. facilitating the fabrication of the product's components and their assembly into the overall product.
Term
what are parts standardization?
Definition
the planned elimination of superficial, accidental, and deliberate differences between similiar parts in the interest of reducing parts in the interest of reducing part and supplier proliferation.
Term
what is modular architecture?
Definition
a product architecture in which each functional element maps into its own physical chunk. Different chuncks perform different functions; the interactions between the chunks are minimal, and they are generally well defined.
Term
What is design maintainability?
Definition
the sytematic consideration of maintainability issues over the product's projected life cycle in the design and development process.
Term
What is the design for six sigma?
Definition
an approach to product and process design that seeks to ensure the organization is capable of providing products or services that meet six sigma quality levels- in general, no more than 3.4 defects per million opportunities.
Term
What is design for the environment
Definition
an approach to new product design that adresses enviromental, safety, and health issues over the product's projected life cycle in the design and development process.
Term
What is target costing?
Definition
the process of designing a product to meet a specific cost objective. target costing involves setting the planned selling price and subtracting the desired profit, as ell as marketing and distribution costs, thus leaving the required target cost.
Term
What is value analysis?
Definition
a process that involves examining all elements of a component, assembly, end product, or service to make sure it fufills its intended function at the lowest total cost.
Term
what is the formula for value?
Definition
value= function / cost
Term
What are two reasons why service process decisions are very important to firms?
Definition
1.) they tend to be expensive and far reaching.
2.) process decisions deserve extra attention because different processes have different strengths and weaknesses.
Term
What are a few general principles to keep in mind when selecting and implementing a manufacturing process:
Definition
1.) selecting an effective manufacturing process means much more than just choosing the right equipment. Manufacturing processes also include people, facilities and physical layouts, and info systems.
2.) Different manufacturing processes have different strengths and weaknesses.
3.) the manufacture of a particular item might require many different types of manufacturing processes, spread over multiple sites and organizations in the supply chain.
Term
What is flexible manufacturing systems?
Definition
highly automated batch processes that can reduce the cost of making groups of similiar products.
Term
What are some questions that arise during a selection process?
Definition
What are the physical requirements of the company's product?
how similiar are the products the company makes
what are the company's production volumes?
where in the value chain does customization take place ( if at all )
Term
What is a production line?
Definition
a type of manufacturing process used to produce a narrow range of standard items with identical or highly similiar designs.
Term
What is product based layout?
Definition
a type of layout where resources are arranged sequentially according to the steps required to make a product.
Term
what is cycle time
Definition
for a line process the actual time between completions of successive units on a production line
Term
What is continuous flow process?
Definition
A type of manufacturing process that closely resembles a production line process. The main difference is the form of the product, which usually cannot be broken into discrete units. examples include yarns and fabric, food products, and chemical products such as oil or gas.
Term
What is a job shop?
Definition
A type of manufacturing process used to make a wide variety of highly customized products in quantities as small as one. Job shops are characterized by general purpose equipment and workers who are broadly skilled.
Term
What is a functional layout?
Definition
A type of layout where resources are physically grouped by function.
Term
What is batch manufacturing?
Definition
A type of manufacturing process where items are moved through the different manufacturing steps in groups or batches.
Term
What is a fixed position layout?
Definition
A type of manufacturing process in which the position of the product is fixed. materials, equipment, and workers are transported to and from the product.
Term
What is hybrid manufacturing processes?
Definition
a general term referring to manufacturing processes that seek to combine the characteristics, and hence advantages, of more than one of the classic processes. examples include flexible manufacturing systems, machining centers, and group technology.
Term
What is a machining center?
Definition
A type of manufacturing process that completes several manufacturing steps without removing an item from the process.
Term
What is group technology?
Definition
A type of manufacturing process that seeks to achieve the efficiencies of a line process in a batch environment by dedicating equipment and personnel to the manufacture of products with similar manufacturing characteristics.
Term
What is a cellular layout?
Definition
a type of layout usually used in group technology settings; resoruces are physically arranged according to the dominant flow of activities for the product family.
Term
What is a product family?
Definition
in group technology, a set of products with very similiar manufacturing requirements.
Term
What is the product process matrix?
Definition
matrix with process choice on y axis, and product characteristics on the x axis, and is used to designate where a product should go.
Term
what are the four levels of customization?
Definition
Make to stock, assemble to finish, make to order, or engineer to order products.
Term
What are make to stock product?
Definition
products that require no customization. they are generic products and are produced in large enough volumes to justify keeping a finished goods inventory.
Term
What are assemble - or finish - to- order products
Definition
Products that are customized only at the very end of the manufacturing process.
Term
What are make to order products
Definition
products that use standard components, but the final configuration of those components is customer specific
Term
What are engineer to order products
Definition
products that are designed and produced from the start to meet unusual customer needs or requirements. They represent the highest level of customization.
Term
to manufacturing personnel, the key difference between the four product type is not so much the degree of customization, but ....
Definition
the point at which it occurs.
Term
What are upstream activities?
Definition
in the context of manufacturing customization, activities that occur prior to the point of customization
Term
What are downstream activities
Definition
in the context of manufacturing customization, activities that occur at or after the point of customization.
Term
What is law of variability?
Definition
the greater the random variability either demanded of the process or inherent in the process itself or in the items processed, the less productive the process is. this law is relevant to customization because completing upstream actvities off line helps isolate these activities from the variability caused by either the timing or the unique requirements of individual customers.
Term
when customization occurs early in the supply chain...
Definition
flexibility in response to unique customer needs will be greater. Lead times will tend to be longer, and products will tend to be more costly.
Term
When customization occurs late in the supply chain,
Definition
flexibility in response to unique customer needs will be limited. lead times to the customer will tend to be shorter. products will tend to be less costly.
Term
What is a service package?
Definition
Includes all the value added physical and intangible activites that a service organization provides to the customer.
Term
What are some managerial challenges in service environments
Definition
1.) nature of the service package
2.) degree of customization
3.) Degree of customer contact.
Term
What is the difference between the emphasis on tangible and intangible activites?
Definition
physical activities- the more managements attention will be directed to capital expenditures, material costs, etc. The greater the emphasis on intangible activties is, the more critical is the training and retention of skilled employees and the developeement and maintenance of the firm's knowledge assets.
Term
As the degree of customization decreases, the service package becomes more...
Definition
standardized.
Term
As the degree of customization increases, the service package becomes...
Definition
less predictable and more variable.
Term
What is the front room?
Definition
the physical or virtual point where the customer interfaces directly with the service organization.
Term
What is the back room?
Definition
the part of a service operation that is completed without direct customer contact.
Term
What is service blueprinting?
Definition
A specialized form of business process mapping that allows the user to better visualize the degree of customer contact. The service blue print lays out the service process from the viewpoint of the customer. it parses out the organizations service actions based on the extent to which an action involves direct interaction with the customer, and whether or not an action takes place as a direct response to a customer's needs.
Term
What do service operations compete and position themselves in the marketplace based on three dimensions
Definition
nature of the service package,degree of customization, and degree of customer contact.
Term
what does a conceptual model of service processes look like
Definition
a cube
Term
What is line balancing?
Definition
a technique used in developing product based layouts, as would be found in a production line or group technology work cell.
Term
what is takt time?
Definition
in production line setting, the available production time divided by the required output rate. takt time sets the maximum allowable cycle time for a line.
Term
What are the 6 steps to line balancing?
Definition
1.) identify all the process steps required, including the time for each task, the immediate predecessor for each task, and the total time for all tasks.
2.) draw a precedence diagram based on the information gathered in step 1. This diagram is used when assigning individual task to work stations.
3.) determine the takt time for the line. T time = available production time / required output rate.
4.) compete theoretical minimum number of workstations needed.
5.) working on one workstation at a time, use a decision rule to assign tasks to the workstation. ( assign the largest eligible task that will still fit within the workstation without exceeding the takttime, assign the eligible task with the most asks directly dependent on it, assign some combination of the two)
6.) evaluate the performance of the proposed line by calculation of cycle time, idle time, percent idle time, and efficiency delay.
Term
to minimize total distance traveled, what is the process to do this?
Definition
1.) identify the potential department locations and distances between the various location.
2.) for each dept, identify the expected number of trips between the dept and all other depts.
3.) attempt to assign dept locations in such a way to minimize total distance traveled.
Term
What are some key points about capacity?
Definition
Capacity can take many different forms, and capacity planning is an important activity in both service and manufacturing organizations.
Thought there are many quantitative tools to help managers make informed capacity decisions, there is some degree of risk inherent in nearly all such decisions.
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