Total Quality Management (TQM)
Philosophy that seeks to improve quality by eliminating causes of product defects and by making quality the responsibility
... [Show More] of everyone in the organization.
Supply Chain Management (SCM)
Management of the flow of materials from suppliers to customers in order to reduce overall cost and increase responsiveness to customers.
Operations Management
The business function responsible for planning, coordinating, and controlling the resources needed to produce a company's goods and services.
Sustainability
A trend in business to consciously reduce waste, recycle, and reuse products and parts.
Cross Functional Decision Making
The coordinated interaction and decision making that occur among the different functions of the organization
CRM (Customer Relationship Management)
Software solutions that enable the firm to collect customer-specific data.
ERP (Enterprise Resource Planning)
Large, sophisticated software systems used for identifying and planning the enterprisewide resources needed to coordinate all activities involved in producing and delivering products.
Role of Operations Management
To transform organizational inputs into outputs
Human Relations Movement
A philosophy based on the recognition that factors other than money can contribute to worker productivity.
Industrial Revolution
An industry movement that changed production by substituting machine power for labor power.
Just-in-time (JIT)
A philosophy designed to achieve high-volume production through elimination of waste and continuous improvement.
Lean Systems
A concept that takes a total system approach to creating efficient operations.
A number of historical milestones have shaped operations management into what it is today. Some of the more significant of these are:
Industrial Revolution, scientific management, the human relations movement, management science, and the computer age.
OM is a highly important function in today's dynamic business environment. Among the trends that have had a significant impact on business are:
just-in-time, total quality management, reengineering, flexibility, time-based competition, supply chain management, a global marketplace, and environmental issues.
Every business is managed through what three major functions?
Finance, Marketing, OM
Which business function is responsible for sales, generating customer demand, and understanding customer wants and needs?
Marketing
Inputs:
Managers, Buildings, technology, info
What are companies that have low customer contact and are capital intensive, yet provide a service, called?
Quasi-manufacturing organizations
Hawthorne Studies
The studies responsible for creating the human relations movement, which focused on giving more consideration to workers' needs.
What is it called when the production of a good is broken down into a series of small tasks, each performed by a different worker?
Division of Labor
What was Frederick W. Taylor's background?
Engineering
Which of the following operations management concepts did not evolve from scientific management?
Interchangable parts
Which of the following operations management concepts did Evolved from scientific mgmt
Moving assembly lines, stopwatch time studies, piece rate incentives, setting time standards for task performance
What term describes the approach of giving workers a larger portion of the total task to do?
Job enlargement
What is a philosophy that aggressively seeks to improve product quality by eliminating causes of product defects and making quality an all-encompassing organizational philosophy?
TQM
Electronic Commerce is the use of
Internet to conduct business activities
Enterprise Resource Planning systems can be described as?
large sophisticated software
Of all the business functions, operations is?
Most diverse in terms of tasks performed
Decisions within the OM function must?
must be linked to the other business functions
To meet customer needs, Marketing managers need to
understand and know what operations can produce and what due dates it can and cannot meet
The seven most notable individuals who shaped today's concept of quality are
Walter A. Shewhart, W. Edwards Deming, Joseph M. Juran, Armand V. Feigenbaum, Philip B. Crosby, Kaoru Ishikawa, and Genichi Taguchi.
Seven features of TQM
customer focus, continuous improvement, employee empowerment, use of quality tools, product design, process management, and managing supplier quality
Quality function deployment (QFD)
a tool used to translate customer needs into specific engineering requirements. Seven problem-solving tools are used in managing quality. Often called the seven tools of quality control, they are cause-and-effect diagrams, flowcharts, checklists, scatter diagrams, Pareto analysis, control charts, and histograms
Reliability
The probability that the product will function as expected. Computed as the product of the reliabilities of the individual components.
The Malcolm Baldrige Award
given to companies to recognize excellence in quality management. Companies are evaluated in seven areas, including quality leadership and performance results. These criteria have become a standard for many companies that seek to improve quality.
Evolution of TQM: 1900's focus
Inspection,
old concept of quality
Evolution of TQM: 1940s focus
Statistical Sampling
Old concept of quality
Evolution of TQM: 1960s focus
Organizational quality focus
Old concept of quality
Old Concept of TQM
to inspect for quality after production
Evolution of TQM: 1980's and beyond
Customer Driven Quality
New concept of TQM:
Build quality into the processes. Identify and correct causes quality problems.
Conformance to specifications
How well a product or service meets the targets and tolerances determined by its designers.
Fitness for use
focuses on how well the product performs its intended function or use.
Value for price paid
Quality defined in terms of product or service usefulness for the price paid. combines economics with consumer criteria.
Support services
how the quality of a product or service is judged
Psychological criteria
focuses on the judgmental evaluation of what constitutes product or service quality.
Quality Definitions for Manufacturing
Conformance to specifications
Performance
Reliability
Features
Durability
Serviceability
Quality definitions for Service organizations
Intangible factors
Consistency
Responsiveness to customer needs
Courtesy/Friendliness
Timeliness/Promptness
Atmosphere
Cause and Effect Diagrams (fishbone)
A chart that identifies potential causes of particular quality problems. Problem-solving tools commonly used by quality control teams. The "head" of the fish is the quality problem, such as damaged zippers on a garment or broken valves on a tire. The diagram is drawn so that the "spine" of the fish connects the "head" to the possible cause of the problem.
Flowcharts
A schematic diagram of the sequence of steps involved in an operation or process. It provides a visual tool that is easy to use and understand. By seeing the steps involved in an operation or process, everyone develops a clear picture of how the operation works and where problems could arise.
Checklist
A list of common defects and the number of observed occurrences of these defects. It is a simple yet effective fact-finding tool that allows the worker to collect specific information regarding the defects observed.
Control Charts
Charts used to evaluate whether a process is operating within set expectations relative to some measured value such as weight, width or volume.
Scatter Diagram
Graphs that show how two variables are related to each other. Good for detecting the amount of correlation, or the degree of linear relationship between two variables. Greater correlation, the more linear the observations.
Pareto Analysis
A technique used to identify quality problems based on their degree of importance. Also called 80-20 rule. In Quality management logic, it is that most quality problems are a result of a few causes.
Histogram
A chart that shows the frequency distribution of observed values of a variable. We can see from the plot what type of distribution a particular variable displays, such as whether it has a normal distribution and whether the distribution is symmetrical.
Benchmarking
Studying business practices of companies considered "best in class"
The strength of the relationship between customer requirements and product characteristics is shown in the __________ matrix.
Relationship
The last step in constructing the house of quality includes
Setting targets for our own product
The Baldrige Award is intended to
Reward and stimulate quality initiatives
Juran stressed that quality improvement should be continuous as well as
breakthrough
Product tolerances are often called
product specifications
the way to reduce the ppm defective is to
change product specifications
Which company is known for coining the term "six-sigma?"
Motorola
If capacity is excessive, a company may have to ______________________.
decide how to use a partially empty facility
factors of capacity
-approach used to measure capacity
-economies of scale
-prepare to deal with capacity in "chunks"
-identify the best operating level
The ratio of actual output rate to capacity is ___________________________
utilization
Last month TMJG Co. started producing a new product called Thingamajigs from its new plant. Sales were quite good for the first couple of weeks. Unfortunately, a technological innovation was then announced by a competitor. This innovation will almost completely eliminate the demand for Thingamajigs. As a result, TMJG has decided to shut down and dismantle the plant next week. The average cost per unit will be highest if the plant was _________________________
In a large facility
Long-term capacity requirements are identified on the basis of _____________________.
forecasts of future demand
The center of gravity approach
may identify a location that may not be feasible to locate to
Intermittent operations
used to produce a variety of products with different processing requirements in lower volumes. Labor intensive.
-volume of goods produced directly tied to number of customer orders
-general purpose equipment
-workers need to be able to perform different tasks depending on the processing needs of the product
-produce many different products with varying processing requirements
Examples are an auto body shop, a tool and die shop, or a healthcare facility.
Repetitive operations
Used to produce one or a few standardized products in high volume. Examples are a typical assembly line, cafeteria, or automatic car wash. Capital intensive
Project Process
Make one-of-a-kind products exactly to customer specifications. high customization and low product volume. (construction, shipbuilding, medical procedures, creation of artwork, custom tailoring, and interior design)
Batch processes
Used to produce small quantities of products in groups or batches based on customer orders or product specifications. (bakeries, education, and printing shops. ) Small volume, high customization
Line processes
designed to produce a large volume of a standardized product for mass production. High volume, no customization (assembly line that produces everything from cars, computers, television sets, shoes, candy bars, even food items.)
Continuous processes
operate continually to produce a very high volume of a fully standardized product. ( oil refineries, water treatment plants, and certain paint facilities.) high capital intensive and automated.
The classes that you are taking at the university use a ___________ process.
Batch
Which is a tool for evaluating an operation in terms of the sequence of steps from inputs to outputs with the goal of improving its design?
Process Flow Analysis
Why is a process flowchart useful?
for seeing the totality of the operation and for identifying potential problem areas
process layout
Layouts that group resources based on similar processes or functions. Found in intermittent processing systems. (Arrange items by type) Production of many products with different characteristics.
EX: Hospitals, universities,
Product Layout
layouts that arrange resources in a straight-line fashion to promote efficient production. Found in repetitive processing systems. Provide efficiency.
Examples: Assembly lines, cafeterias, car wash
Hybrid layout
Layouts that combine characteristics of process and product layouts.
Retail stores, grocery stores
Fixed position layout
A layout in which the product cannot be moved due to its size and all the resources have to come to the production site.
EX: building construction, dam or bridge construction,
group technology (GT) or cell layouts
Hybrid layouts that create groups of products based on similar processing requirements.
Block Plan
schematic showing the placement of resources in a facility. helps visualize the available space and evaluate whether we can meet space needs
Which of the following is more like a product layout as compared to a process layout?
Processing rates are faster
When developing a detailed layout, what tools would be used?
3-D models and CAD software
For the general warehouse layout problem, which department should be located furthest from the dock?
smallest ratio of trips needed to area needed
Infinite loading
A scheduling approach that ignores capacity constraints.
Finite loading
Scheduling that loads work centers up to a predetermined amount of capacity.
Forward Scheduling
Schedule that determines the earliest possible completion date for a job. Starts immediately regardless of due date.
Backward Scheduling
begin scheduling the job's last activity so that the job is finished right on the due date. [Show Less]