BA339 Chapter 10 & 12 Operations and Supply Chain Management: THE CORE, F. Robert Jacobs, Richard B. Chase Exam

What is Total Quality Management (TQM)? - ANS Managing the entire organization so that it excels on all dimensions of products and services that are important to the customer. What are the two fundamental operational goals of TQM? - ANS Careful design of the product or service Ensuring that the organization's systems can consistently produce the design What is design quality? - ANS The inherent value of the product in the marketplace What is conformance quality? - ANS The degree to which the product or service design specifications are met What are the 6 quality specifications? - ANS Performance Features Reliability/durability Serviceability Aesthetics Perceived quality What are appraisal costs? - ANS Costs of the inspection and testing to ensure that the product or process is acceptable What are prevention costs? - ANS The sum of all the costs to prevent defects What are internal failure costs? - ANS Costs for defects incurred within the system What are external failure costs? - ANS Costs for defects that pass through the system What are the International Organization for Standardization (ISO)? - ANS The series of standards agreed upon by the ISO. Adopted in 1987 and followed by more than 160 countries. Potentially a prerequisite for global competition. What is ISO 9000? - ANS Requirement to document what you do and then do as you documented What is ISO 14000? - ANS A family of standards on environmental management What is the Six Sigma? - ANS A philosophy and set of methods companies use to eliminate defects in their products and processes. Seeks to reduce variation in the processes that lead to product defects. No more than 4 defects per million units What is the methodology behind Six Sigma? - ANS Define, Measure, Analyze, Improve, and Control (DMAIC) What are the Six Sigma Analytical Tools? - ANS Flowchart Run chart Pareto chart Checksheet Cause-and-effect diagram Opportunity flow diagram Process control chart What is assignable variation? - ANS Variation that is caused by factors that can be identified and managed What is common variation? - ANS Variation that is inherent in the process itself What is upper specification? - ANS The maximum acceptable value for a characteristic What is lower specification? - ANS The minimum acceptable value for a characteristic What is process capability? - ANS The ability of a process to consistently produce a good or deliver a service with a low probability of generating a defect What is acceptance sampling? - ANS Sampling performed on goods that already exist to determine what percentage of the products conform to specifications Results in accept, reject, or retest What is Lean Production? - ANS Integrated activities designed to achieve high-volume production using minimal inventories (raw materials, work in process, and finished goods) Also involves elimination of waste in production effort Involves the timing of production resources What is customer value? - ANS Something for which the customer is willing to pay What is waste? - ANS Anything that does not add value from the customer's perspective What is lean logic? - ANS Lean is based on the logic that nothing will be produced until it in needed. What is the Value Stream? - ANS The value-adding and non-value-adding activities required to design, order, and provide a product or service What is Waste Reduction? - ANS The optimization of the value-adding activities and the elimination of non-value-adding activities What is value stream mapping? - ANS A special type of flow-charting tool used to analyze where value is or is not being added as material flows through a process What are characteristics of lean supply chains? - ANS Specialized plants Work with suppliers Building a lean supply chain What is quality at the source? - ANS Do it right the first time and if something goes wrong, stop the process immediately. Workers are personally responsible for the quality of their output What is a level schedule? - ANS Pulls materials into final assembly at a constant rate What is a freeze window? - ANS Period of time during which the schedule is fixed and no further changes are possible What is backflush? - ANS Calculation of how many of each part were required to produce the actual quantity of finished products built