POM Midterm Reviewer

Facility Layout It is an arrangement of different aspects of manufacturing in

an appropriate manner as to achieve desired production
results.
It considers available space, final product, safety of users
and facility and convenience of operations.
It refers to the way in which work stations, equipment,
machinery and employees are positioned within a work
facility.
Layout The __________ can affect productivity and costs generated
by the system.
Project Deals with one-of-a-kind products that are tailored to the
unique requirements of each customers. Cannot be
standardized.
Intermittent The goods are manufactured specially to fulfill orders made
System by customers rather that for stock. Production facilities are
flexible and had a wide variety of products and sizes.
Continuous The specialized manufacture of identical products on which
Production the machinery is full engaged. Large quantities.
System
Job Shop Appropriate for manufacturers of small batches of many
products, each of which is custom designed and
consequently, requires its own unique set of processing steps
or routing through production process
Batch This process is adopted when batches or lots of items are to
be produced using the same set of machines in the same
sequence.
Mass (Assembly Standardization is fundamental characteristic of this system.
Line) Uniform and uninterrupted flow of material is maintained
through predetermined sequence of operations required to
produce the product.
Process The products is highly standardized. Affords high volume,
(Continuous around-the-dock operation with capital intensive, specialized
Flow) automation.
Process Layouts __________ are found primarily in job shops, or firms that
produce customized, low-volume products that may require
different processing requirements and sequences of
operations. Process layouts are facility configurations in
which operations of a similar nature or function are grouped
together. Their purpose is to process goods or provide
services that involve a variety of processing requirements.
Critical Path __________ is production mapping technique uses a visual
Method string of nodes representing individual activities to show the
flow of materials in a multi-step process, while conveying a

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 range of useful information about each activity, including its
shortest and longest possible completion times, its required
inputs, expected outputs and labor needs. Using CPM to map
out your production processes can reveal areas of slack time,
non-value-adding activities and opportunities to streamline
production processes.
***
What are Ease of future expansion or change
factors in Flow of movement
determining Materials handling
layout and Output needs
design? Space utilization
Shipping and receiving
Ease of communication and support
Impact on employee morale and job satisfaction
Promotional value
Safety
***
Functional Process layout is also called __________.
Layout
Process Layout A design of a floor plan of a plant which aims to improve
efficiency by arranging equipment according to its function.
Work stations and machinery are not arranged according to a
particular production sequence. Instead, there is an
assembly of similar operations or similar machinery in each
department.
Product Layouts Machines and equipment are arranged in the way in which
they would be used in the process of manufacturing a
product or group of related products.
Cellular Operations required to produce a particular family (group) of
Manufacturing parts are arranged in the sequence required to make that
Layouts family
Used when the operations system must handle a moderate
variety of products in moderate volumes
Group One of the most popular hybrid layouts uses __________ and a
Technology (GT) cellular layout.
Layout
It has the advantage of bringing the efficiencies of a product
layout to a process layout environment.
Fixed Position Product remains in a fixed position, and the personnel,
Layout material and equipment come to it
Used when the product is very bulky, large, heavy or fragile
Hybrid Layout Actually, most manufacturing facilities use a combination of
layout types
An example of a hybrid layout is where departments are

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 arranged according to the types of processes but the
products flow through on a product layout.
***
Quality Gurus Individuals who have been identified as making a significant
contribution to improving the quality of goods and services.
Walter A. Statistician at Bell Laboratories
Shewhart 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.
W. Edwards Advocated Statistical Process Control (SPC)
Deming 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.
Joseph M. Juran Emphasized the importance of producing quality
products through an approach focused on quality
planning, control, and improvement.
Defined product quality as fitness for use as viewed
by the customer in:
- Quality of design
- Quality of conformance
- Availability
- Safety
- Field use
Categorized the cost of quality as:
- Cost of prevention
- Cost of detection/appraisal
- Cost of failure
Armand Proposed the concept of total quality control,
Feigenbaum making quality everyones responsibility.
Stressed interdepartmental communication.
Philip Crosby Preached that quality is free.
Genichi Taguchi Emphasizes the minimization of variation.
Concerned with the cost of quality to society.
Extended Jurans concept of external failure.

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Technical The core element of the good or service.
quality
Functional Customer perception of how the good functions or the
quality service is delivered
Expectations Customers prior ________________ of service performance
and Perception affect their satisfaction with a service.
Satisfaction = (Perception of Performance) (Expectation)
Cost of Quality Framework for identifying quality components that are
related to producing both high quality products and low
quality components, with the goal of minimizing the total
cost of quality.
Traditional View Improve quality > Increase Appraisal Cost > Result: Quality
goes up, Cost goes up
Demings view Improve quality > Increase Process Quality > Result: Quality
goes up, Cost goes down
JURANS MODEL
Cost of Costs associated with the development of programs to
prevention prevent defectives from occurring in the first place
Cost of Costs associated with the test and inspection of
detection/ subassemblies and products after they have been made.
appraisal
Cost of failure Costs associated with the failure of a defective product.
Internal failure producing defective products that are identified before
costs shipment.
External failure producing defective products that are delivered to the
costs customer.
40. ***
Total Quality An approach for integrating quality at all levels of an
Management organization
Organization-wide initiative encompassing all
functional areas and levels within the organization.
Focuses on producing high quality goods and services.
Leadership Top management vision, planning and support
Employee All employees assume responsibility for inspecting the
involvement quality of their work.
Product/Process Involves product design quality and monitoring the process
Excellence for continuous improvement.
Poka-yokes _____ are devices that prevent defects from being produced.
Continuous A concept that recognizes that quality improvement is a
Improvement journey with no end and that there is a need for continually
looking for new approaches for improving quality.
Fitness for Customer Focus on __________.
Use
Design quality Specific characteristics of a product that determine its value
in the marketplace.
Conformance The degree to which a product meets its design

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quality specifications.
Successful Requires total integration of TQM into day-to-day operations.
Implementation
of TQM
What are the Lack of a company-wide definition of quality.
obstacles in Lack of a formalized strategic plan for change.
implementing Lack of a customer focus.
TQM? Poor inter-organizational communication.
Lack of real employee empowerment.
Lack of employee trust in senior management.
View of the quality program as a quick fix.
Drive for short-term financial results.
Politics and turf issues.
Six Sigma To reduce process variation to the point where only 3.4
defects per million are produced by a process that
involves a high volume of manufactured units or
service transactions on a continuous basis.
Provide a framework and methodologies to analyze
and evaluate business processes and reduce waste.
Training and selection of the workforce
Impressive cost savings of program
Malcolm Established in 1987 to recognize total quality
Baldrige management in American industry.
National Quality Stimulate U.S. companies to improve quality and
Award productivity.
Establish guidelines and criteria to evaluate quality.
Recognize those firms that improve their quality.
Provide guidance in how to achieve quality
Baldrige Help define and design a total quality system.
guideline Evaluate ongoing internal relationships among
department, divisions, and functional units within an
organization.
Assess and assist outside suppliers of goods and
services to a company.
Assess customer satisfaction.
ISO 9000 Series An international set of standards for documenting the
of Quality processes that an organization uses to produce its goods and
Standards services.
International Meaning of ISO
Organization
for
Standardization
ISO 9001:2000 Quality Management Systems: Requirements
ISO 9004:2000 Quality Management Systems: Guidelines for Performance
Improvement

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ISO 9000:2000 Quality Management Systems: Fundamentals and Standards
European Stimulate and assist European organizations in quality
Foundation for improvement activities.
Quality Support managers in the adoption of TQM.
Management
(EFQM)
EFQM A non-prescriptive frame work based on nine criteria that
Excellence recognizes that there are many approaches to achieving
Model sustainable excellence.
Deming Prize Initiated by Japan in 1951 to recognize the importance
of high quality products.
Name after W. Edwards Deming
***
W. A. Shewhart Economic Control of Quality of Manufactured Product.
Relationship between quality and economy
A.VFeigenbau Definition of TQCat the most economical level
m
J.M. Juran focus on strengthening QM through financial management
Evolution of conformity to customer satisfaction
quality concept
The economy of has been more and more important.
quality
Quality Cost The cost of avoiding poor quality, or incurred as a result of
poor quality
Translates defects, errors, etc. into the language of
management $$$
Provides a basis for identifying improvement opportunities
and success of improvement programs
Quality All expenses spent on preventing product defects and
Control/Assuran appraising whether the output satisfies the specified quality
ce Cost requirements.
Prevention Cost It can be divided into __________ and __________.
Appraisal Cost
Quality Failure The costs resulting from products or services not conforming
Cost to requirements or customer/ user needs.
Internal Failure It can be divided into __________ and __________.
Cost
External Failure
Cost
Prevention Cost Costs associated with designing, installing, maintaining and
auditing plans for control of manufacturing products and
services to prevent the creation of defects and failures or the
creation of process wastes.
Appraisal Cost Costs associated with the measuring, evaluating, or auditing
of goods, components, services and purchased materials to

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 verify conformance with quality standards and performance
requirements. the cost of evaluating processes and their
outputs to ensure quality
Internal Failure Costs associated with defective products, components, and
Cost materials which fail to meet quality requirements and found
before delivery to the customer, namely costs incurred to
correct an identified defect before the customer receives the
product
External Failure Costs associated with deficiencies found to the customer and
Cost with customer dissatisfaction
Costs that relate to all errors not detected and corrected
before delivery to the customer
Total Quality Prevention Cost + Appraisal Cost + Failure Cost
Cost
Finance To establish a QCM system to organize and coordinate the
Department work concerning QCM, in which the policy and contents could
be decided jointly by the QM and __________
True All the departments should be involved in the QCM since
quality issue concerns each department
Return on Measure of revenue gains against costs associated with
Quality quality efforts
Validity It answers: Does the indicator measure what it says it does?
Reliability It answers: How well does an indicator consistently measure
the true value of the characteristic?
Accessibility It answers: Do the right people have access to the data?
Analysis Statistical summaries and charts
Trends over time
Comparisons with key benchmarks
Aggregate summaries and indexes
Cause-and-effect linkages and correlations
(interlinking)
Data mining
Quality Cost It can be structural cost indexes or indexes concerning
Indexes quality cost
Structural Cost prevention cost ratio, appraisal cost ratio, internal failure
Indexes cost ratio, external failure cost ratio
Indexes Ratio of quality cost to total cost, sales or profit, ratio of
Concerning internal failure cost to man-hour, ratio of external failure cost
Quality Cost to sales
***
Purpose of To be more effective in finding out the reasons behind those
quality cost quality problems, instead of finding out whose fault it is, thus
management helping relevant departments and people prevent the similar
problems, or address them as soon as possible
It is objective Problems of nonconformity are hard to avoid, and the loss

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for quality concerned and expenses on prevention would occur
costs to exist consequentially.
Quality cost is It is quality requirements that constitute the basis for judging
relevant to the conformity and nonconformity.
quality
requirements

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