Professional Documents
Culture Documents
Transformation
Process
(components)
Outputs
(goods
and
services)
Supply Chain
The steps and the firms that perform these steps in the transformation of
raw inputs into finished products bought by customers.
Inbound Logistics
The delivery of goods and services that are purchased from suppliers
and/or their distributors.
Outbound Logistics
The delivery of goods and services that are sold to a firms customers
and/or distributors.
JIT (just-in-time)
A coordinated approach that continuously reduces inventory while also
improving quality.
Seeks to achieve high volume production using minimal inventories of
raw material, work in process, and finished goods.
Big JIT (lean production)
Seeks to eliminate all forms of waste in production activities.
Little JIT
Focuses on scheduling goods inventories and providing service
resources.
Kanban Pull System
A manual, self-regulating system for controlling the flow of material.
Workers produce only when the Kanban ahead of them is empty, thereby
creating a pull system through the factory.
Key words
Hawthorne Studies
Yielded unexpected results in the productivity of Western Electric plant
workers after changes in their production environment.
Led to recognition of the importance of work design and employee
motivation.
Competitive Priorities
How the operations function provides a firm with a competitive
advantage.
PrioritiesLow cost, high quality, fast delivery, flexibility, and service.
Start-up services
New services in established markets already served by existing services.
Customer Contact
The presence of the customer in the system.
Service businesses
Facilities-based services that provide assistance to customers who come to
the service facility.
Field-based services that provide on-site services to customers.
Productivity
The operational efficiency with which inputs are transformed (converted)
into outputs.
Variable output
Capacity
Utilization
Actual
Total
Outputs
Inputs
Machine
Machine
Hours
Hours
Used
Available
Modularization
Use of standard components and subassemblies to produce customized
products.
Reengineering
The process of rethinking and restructuring an organization
For one service or product processed at one operation with a one year time period,
the capacity requirement, M, is
Capacity
=
requirement
W. Edwards Deming
One of the Quality Gurus
Advocated Statistical Process Control (SPC)
Methods which signal shifts in a process that will likely lead to products
and/or services not meeting customer requirements.
Emphasized an overall organizational approach to managing quality.
Demonstrated that quality products are less costly than poor quality
products.
Identified 14 points critical for improving quality.
The Deming Prize
Highest award for industrial excellence in Japan.
Genichi Taguchi
One of the Quality Gurus
Emphasizes the minimization of variation.
Concerned with the cost of quality to society.
Extended Jurans concept of external failure.
Walter A. Shewhart
One of the Quality Gurus
Statistician at Bell Laboratories
Developed statistical control process methods to distinguish between
random and nonrandom variation in industrial processes to keep processes
under control.
Developed the plan-do-check-act (PDCA) cycle that emphasizes the
need for continuous improvement.
Strongly influenced Deming and Juran.
Joseph M. Juran
One of the Quality Gurus
Six sigma
Process Capability
A comparison of control chart limits to design specification limits to
determine if the process itself is (or is not) capable of making products
within design specification (or tolerance) limits.
Process capability ratio
Cp =
Upper tolerance
limit
tolerance
- Lowerlimit
6s
Capability Index
A calculation to determine how well the process is performing relative to
the target dimensions: is the process closer to the upper specification limit
(USL) or the lower specification limit (LSL).
X LSL USL X
C pk min
,
3s
3s
Continuous Improvement
A concept that recognizes that quality improvement is a journey with no
end and that there is a need for continually looking for new approaches for
improving quality.
Servicescape
Product interval time
Product flow-shop layout
Purchase activities
Perceived customer value