GMS 401 - TEST 2 Questions and Answers 100% Verified

American Society for Quality defines quality as: - the totality of features and characteristics of a product or service that bears on its ability to satisfy stated or implied needs. An operations manager's job is to: - build a total quality management system that identifies and satisfies customer need. 4 possible "causes" of quality problems - Material, Machinery, Manpower, and Methods 6 Supply Chain Strategies for goods and services to be obtained from outside sources - 1. negotiating with many suppliers and playing one supplier against another 2. developing a long term partnering a relationships with a few suppliers 3. vertical integration 4. joint ventures 5. Developing keirestu networks 6. developing virtual companies that use suppliers on an as-needed basis. 7 tools for TQM - Tools for Generating Ideas --Check Sheet -- Scatter Diagram -- Cause-and-Effect Diagram Tools to Organize Data -- Pareto Chart -- Flowchart (Process Diagram) Tools for Identifying Problems -- Histogram-- Statistical Process Control Chart A firm can persue a learning cost steeper than industry average by: - 1. Following an aggressive pricing policy 2. Focusing on continuing cost reduction and productivity improvement 3. Building on a shared experience 4. Keeping capacity growing ahead of demand A process is said to be operating in statistical control when: - the only source of variation is common (natural) causes. advanced shipping notice (ASN) - a shipping notice delivered directly from vendor to purchaser Arithmetic Approach - uses the production doubling equation T x L^n = time required for nth unit Assignable Variation - variation in a production process that can be traced to specific causes attribute inspection - an inspection that classifies items as being either good or defective Benchmarking - selecting a demonstrated standard of performance that represents the very best performance for a process or an activity blanket order - A long-term purchase commitment to a supplier for items that are to be delivered against short-term releases to ship Bullwhip Effect - the increasing fluctuation in orders that often occurs as orders move through the supply chainc-chart - a quality control chart used to control the number of defects per unit of output Cause-and-effect Diagram - a schematic technique used to discover possible locations of quality problems Central Limit Theorem - The theoretical foundation for x-charts, which states that regardless of the distribution of the population of all parts or services, the distribution of x's tends to follow a normal curve as the number of samples increases. channel assembly - a system that postpones final assembly of a product so the distribution channel can assemble it Collaborative Planning, Forecasting, and Replenishment (CPFR) - a joint effort of members of a supply chain to share information in order to reduce supply chain costs Control Charts - graphic presentations of process data over time, with predetermined control limits Cost of Quality (COQ) - the cost of doing things wrong - that is, the price of non conformance Determinants of Service Quality - reliability, responsiveness, competence, access, courtesy, communication, credibility, security, understanding/knowing the customer, tangibles