MGT

The ability of a product or service to consistently meet or exceed customer expectations

Intention of designers to include or exclude features in a product or service

The degree to which goods or services conform to the intent of the designers

Increase the likelihood that a product will be used for its intended purpose and in such a way that it will continue to function properly and safely

taking care of issues and problems that arise after the sale

costs of activities designed to ensure quality or uncover defects

all TQ training, TQ planning, customer assessment, process control, and quality improvement costs to prevent defects from occuring

costs incurred by defective parts/products or faulty services

costs incurred to fix problems that are detected before the product is delivered to the customer

all costs incurred to fix problems that are detected after the product is delivered to the customer

A philosophy that involves everyone in an organization in a continual effort to improve quality and achieve customer satisfaction

• 1. Find out what the customer wants
• 2. Design a product that meets or exceeds their wants
• 3. Design processes that facilitate doing the job right the first time
• 4. keep track of results
• 5. Extend these concepts throughout the supply chain

Plan-Do-Study-Act

groups of workers who meet to discuss ways of improving products

the sequence of organizations - their functions, facilities, and activities - that are involved in producing and delivering a product or service (value chains)

• the sequence of the supply chain begins with basic suppliers and extends all the way to the final customer
• - warehouses
• - factories
• - processing centers
• - distribution centers
• - retail outlets
• - offices

• - forecasting
• - purchasing
• - inventory management
• - information management 
• - scheduling
• - customer service

the strategic coordination of business functions within a business organization and throughout its supply chain for the purpose of integrating supply and demand management

the goal of SCM is to match supply to demand as effectively and efficiently as possible

• - determine appropriate levels of outsourcing
• - managing suppliers
• - managing customer relationships
• - managing risk

The purchasing department is responsible for obtaining the materials, parts, and supplies and services needed to produce a product

develop and implement purchasing plans for products and services that support operations strategies

the use of electronic technology to facilitate business transactions

• -choosing suppliers
• - supplier audits
• - supplier certification

variations in demand cause inventory fluctuations to fluctuate and get out of control

refers to the movement of materials, services, cash, and information in a supply chain

analyzing the procurement process to lower costs by reducing waste and non-value-added activities, increase profits, reduce risks, and improve supplier performance

refers to deciding on the way production of goods will be organized

the discovery and development of new or improved products, services, or processes for producing or providing them

the configuration of departments, work centers, and equipment, with particular emphasis on movement of work (customers or materials) through the system

layout that uses standardized processing operations to achieve smooth, rapid, high-volume flow

layouts that can handle varied processing requirements

layout in which the product or project remains stationary, and workers, materials, and equipment are moved as needed

can be categorized as product, process, or fixed position

= the process of assigning tasks to a workstation in such a way that the workstations have approximately equal time requirements

obtain task grouping that represent approximately equal time requirements since this minimizes idle time along the line and results in a high utilization of equipment and labor

• 1. It allows us to use labor and equipment more efficiently 
• 2. To avoid fairness issues that arise when one workstation must work harder than another

giving a worker a larger portion of the total task by horizontal loading

workers periodically exchange jobs

increasing responsibility for planning and coordination tasks, by vertical loading

the amount of time it should take a qualified worker to complete a specified task, working at a sustainable rate, using given methods, tools and equipment, raw material inputs, and workplace arrangement

- used to develop a time standard based on observations of one worker taken over a number of cycles

• 1. Define the task to be studied 
• 2. Determine # of cycles to observe
• 3. Time the job, and rate the worker's performance
• 4. Compute the standard time

A technique for estimating the proportion of time that a worker or machine spends on various activities and the idle time

-does not require timing an activity or involve continuous observation of the activity

• - profit potential or cost and customer service
• - finding a number of acceptable locations from which to choose
• - position in the supply chain

• - technique for evaluating location choices in economic terms
• 1. Determine the fixed and variable costs for each alternative
• 2. Plot the total-cost lines for all alternatives on the same graph
• 3. Determine the location that will have the lowest total cost for the expected level of output

general approach to evaluating locations that includes quantitative and qualitative inputs

-treats distribution costs as a linear function of the distance and the quantity shipped

- a process that evaluates output relative to a standard and takes corrective action when output doesn't meet standards

An appraisal activity that compares goods or services to a standard

a product or service conforms to specifications

a time ordered plot of representative sample statistics obtained from an ongoing process, used to distinguish between random and nonrandom variability

measured

counted

control chart used to monitor the proportion of defectives in a process

control chart used to monitor the number of defects per unit

Once a process has been determined to be stable, it is necessary to determine if the process is capable of producing output that is within an acceptable range

range of acceptable values established by engineering design or customer requirements

natural or inherent variability in a process

The inherent variability of process output (process width) relative to the variation allowed by the design specification

A powerful quantitative tool used by operations and other manages to obtain optimal solutions to problems that involve restrictions or limitations

• 1. list and define the decision variables
• 2. State the objective function
• 3. List the constraints
• 4. Non-negativity constraints

a nonrepetitive set of activities directed toward a unique goal within a limited time frame.

linking key product or service requirements to process capabilities

standardized layout arranged according to a fixed sequence of production tasks

standardized layout arranged according to a fixed sequence of assembly tasks

the maximum time allowed at each workstation to complete its set of tasks on a unit

operating time per day / cycle time

operating time / desired output rate

percentage of idle time of a line

idle time per cycle / (actual # of ws x Cycle time)

100% - percent of idle time

compensation based on time an employee has worked during a pay period

compensation based on amount of output an employee produced during a pay period

incorporation of human factors in the design of the workplace

basic elemental motion that make up a job

OT= Sum of recorded times / number of observations

NT= Observed time x Performance rating

ST = NT x AF 

AF is allowance factor - all possible delays in workplace

AF= 1 + A (allowance percentage based on job time)

AF= 1 / (1-A)

• 1. decide on the criteria to use for evaluating location alternatives
• 2. identify important factors, such as location of markets or raw materials
• 3. develop location alternatives
• 4. Evaluate the alternatives and make a decision

similar types of businesses locate near each other

main characteristics of the product

appearance, feel, smell, taste

how well a product corresponds to design specifications

indirect evaluation of quality

handling of complaints or repairs

prize established by the Japanese and awarded annually to firms that distinguish themselves with quality management programs

given to recognize quality achievements of US companies

incorporating design elements that prevent incorrect procedures

Japanese term for continuous improvement

a business process for improving quality, reducing costs, and increasing customer satisfaction

Concluding a process is not in control when it actually is

concluding a process is in control when it is not

sequence of observations with a certain characteristic

a range of acceptable values established by engineering design or customer requirements

natural or inherent variability in a process

the inherent variability of process output relative to the variation allowed by the design specification

screening returned goods to prevent incorrect acceptance of goods

a technology that uses radio waves to identify objects, such as goods in supply chains

finding ways to minimize the number of items that are returned

a manufacturer controls both the forward and reverse shipment of product

a technique whereby goods arriving at a warehouse from a supplier are unloaded from the supplier's truck and loaded onto outbound trucks, thereby avoiding warehouse storage

production of standard components and subassemblies, which are held until late in the process to add differentiating features

reducing one or more steps in a supply chain by cutting out one or more intermediaries

substituting the coordinates of each corner point into the objective function to determine which corner point is optimal

a constraint that forms the optimal corner point of the feasible solution space

When the values of decision variables are substituted into a > constraint the amount by which the left side exceeds the right-hand-side value.

when the values of decision variables are substituted into a < constraint the amount by which the left side is less than the right side value