Which definition is used for quality, evaluates how well a product performs its intended function?
Fitness for use
14 points for quality
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Which total quality management (TQM) process was developed to stress management's responsibility for quality?
ISO 9000
Set of international standards on quality management and quality assurance, critical to international business
-TQM process consists of 13 published standards and guidelines
-Like when joint commission shows up at the hospitals
Checklist
A list of common defects and the number of observed occurrences of these defects.
scatter diagram
a plot of two variables showing whether they are related
Control Chart
A graph that shows whether a sample of data falls within the common or normal range of variation.
mean
A statistical measure of central tendency, or average, based on dividing a total by the number of individual cases.
assignable causes of variation
-Causes can be identified and eliminated
-e.g. poor employee training, worn tool, machine needing repair
common causes or random
Stuff you cannot identify
-Random causes that we cannot identify, unavoidable
Cpk measures
How close one is to a target and how consistent one is with the average performance.
-How closely it measures
Six Sigma
Technical tolls and people involvement
The empirical rule, 3 standard deviations. This is 3 sigma's.
6 sigmas and you are almost at 100%
DMAIC
DMAIC (Define, Measure, Analyze, Improve, Control)
a six sigma process that outlines the steps that should be followed to improve an existing business process
define stage
includes the voice of the customer and value stream
Job Design
It does not have anything to do with people.
-The process by which managers decide how to divide tasks into specific jobs
waiting time
-Screen patients and fast track those with minor ailments
-amount of time a process has been waiting in the ready queue
Service location decisions
-proximity to customers
-Quality of life issues
proximity to customers
-key factor of a location analysis for a service company
-if you need to have a car repaired, you wont drive too far.
Capacity Planning
Hospital- Capacity is beds and output is the patients. If you have 1 pt for 2 days and one for 3 days. The output is how many patients and not how many beds we have.
capacity utilization
are you using more workers and what are your resources? Measures how much of the available capacity is actually being used. Measures effectiveness.
Capacity Focus
facilities that are small, specialized, and focused on a narrow set of objectives.
effective capacity
...
capacity measurement at the best operating level
when the average unit cost is minimized
center of gravity approach
an approach for locating a single facility that minimizes the distance to existing facilities.
-use the breakeven analysis -how many units needed to manufacture to breakeven.
break-even analysis
the process of determining the number of units a firm must sell to cover all costs. Considers fixed costs, variable costs.eg Fed EX is in Tennessee so it will be in the middle
repetitive process
classic assembly line. A line process, a continuous process.
Project Process
make a one-at-a-time product exactly to customer specifications, expensive. Like an automobile collision shop that does body and engine repair as well as custom vehicle paint job.
Batch Process
a process in which goods or services are produced in groups (batches) and not in a continuous stream eg. auto shop offers body repair, engine repair, and custom vehicle paint options
Bottleneck in a flowchart
the longest part in the process eg manufacturing a car and the car needs to be painted or the time the cake in the oven.
compute process velocity
Throughput time/value-added time
-How fast we are going
Actual output/standard output
Which formula would indicate that a fast-food restaurant was performing at, above, or below its benchmark?
-We know how many burgers were making and what the standard is
output/input
productivity formula
Throughput time/value-added time
How long it takes from the raw materials to become finished goods.
Process
Each item goes through process
Which total quality management (TQM) process was developed to stress management's responsibility for quality?
14 points for quality improvement [Show Less]