1
Q
What are the seven principles of Total Quality Management (TQM)?
A
- customer focus
- continuous improvement
- employee empowerment
- use of quality tools
- product design
- process management
- managing supplier quality
These principles guide organizations in their efforts toward quality improvement.
2
Q
What does the Process Capability Index (Cpk) measure?
A
The process potential and performance of processes. A higher Cpk indicates better process ability to meet requirements.
It is a basic function of Six Sigma methodology.
3
Q
Define Six Sigma.
A
A disciplined, data-driven approach for eliminating defects in any process, aiming for six standard deviations between the mean and the nearest specification limit.
Six Sigma applies to manufacturing, transactional processes, products, and services.
4
Q
What is Design Capacity?
A
The theoretical maximum output of a system under ideal conditions.
Factors influencing design capacity include proximity to customers and suppliers, labor availability, and community attitudes.
5
Q
What is Location Analysis?
A
The technique for determining location decisions for operations.
It considers various factors, including transportation and proximity to customers.
6
Q
What characterizes Line Processes?
A
Used to produce a large volume of standardized products with limited customization.
High volume is a key feature of line processes.
7
Q
What are Batch Processes?
A
Processes used to produce a small number of products in groups based on customer orders.
They allow for high customization and moderate volume.
8
Q
Describe Project Processes.
A
Processes used to make one-at-a-time products exactly to customer specifications.
They represent the highest level of customization and the lowest volume.
9
Q
What are Continuous Processes?
A
Processes that operate continually to produce high volumes of fully standardized products.
They involve no customization and aim for maximum volume.
10
Q
What is a Bottleneck in a process?
A
The longest task in the process that limits overall throughput.
Identifying bottlenecks is crucial for improving process efficiency.
11
Q
Define Flexible Manufacturing System (FMS).
A
An automated system that combines flexibility of intermittent operations with efficiency of continuous operations.
FMS adapts to different production requirements.
12
Q
What does Output/Input Control monitor?
A
The flow of jobs between work centers.
It is essential for effective production management.
13
Q
What is Value-Added?
A
The net increase created during the transformation of inputs into final outputs.
It reflects the effectiveness of production processes.
14
Q
What are Hybrid Layouts?
A
Layouts that combine characteristics of process and product layouts.
Examples include group technology and cell technology layouts.
15
Q
What is a Relationship Chart (REL)?
A
A table reflecting managers’ opinions on the importance of having two departments close together.
It aids in optimizing facility layout.
16
Q
Define Rectilinear Distance.
A
The shortest distance between two locations using north-south and east-west movements.
It is commonly used in location analysis.
17
Q
What is a From-To Matrix?
A
A table showing the number of trips or units moved between any pair of departments.
It helps in understanding movement patterns within facilities.
18
Q
What is a Block Plan?
A
A schematic showing the placement of resources in a facility.
It is used for planning and optimizing layouts.
19
Q
What are Mean Observed Times?
A
The average of observation times for each work element.
It is used in time study analysis.
20
Q
What is Normal Time?
A
Mean observed time multiplied by the performance rating factor by frequency of occurrence.
It estimates the time required for a task.
21
Q
What does Standard Time represent?
A
The time a qualified worker should take to complete a specific job, accounting for personal fatigue and delays.
It is crucial for planning and scheduling.
22
Q
What is Just-in-Time (JIT)?
A
A philosophy aimed at high-volume production through waste elimination and continuous improvement, based on a ‘pull’ system.
It integrates manufacturing, quality management, and respect for people.
23
Q
What is a Kanban card?
A
A card specifying the exact quantity of product that needs to be produced.
It is part of the JIT system.
24
Q
Who are Tier One Suppliers?
A
Suppliers that provide materials or services directly to the processing facility.
They play a critical role in production supply chains.
25
What do Tier Two Suppliers do?
Supply specialty materials to Tier One suppliers for packaging and production needs.
## Footnote
They are crucial for maintaining quality in the supply chain.
26
Define Tier Three Suppliers.
Suppliers that directly provide materials or services to Tier Two suppliers, often extracting raw materials.
## Footnote
Examples include oil and raw chemical suppliers.
27
What is Capacity Requirements Planning (CRP)?
Determines the labor and machine resources needed to fulfill open and planned orders generated by MRP.
## Footnote
It ensures sufficient resources are scheduled for operations.
28
What is Enterprise Resource Planning (ERP)?
Large software programs used for planning and coordinating all resources throughout the enterprise.
## Footnote
ERP systems integrate various business processes.
29
What do Aggregate Plans include?
Budgeted levels of finished products, inventory, backlogs, workforce size, and aggregate production rate.
## Footnote
They support the marketing plan.
30
What is Third-Party Logistics (3PL)?
Businesses that outsource elements of a company's distribution and fulfillment services.
## Footnote
They specialize in warehousing and transportation services.
31
What is the Supply Chain Operations Reference model (SCOR)?
A leading supply chain framework that links business processes, performance metrics, practices, and skills into a unified structure.
## Footnote
It aims to improve inventory turns and support learning goals.
32
What are the phases of the Project Life Cycle?
* Conception
* Feasibility/Study analysis
* Planning
* Execution
* Termination
## Footnote
Each phase is crucial for project management success.
33
What is a Master Production Schedule (MPS)?
A plan for individual commodities to be produced in each time period, linked to manufacturing demands.
## Footnote
It informs production, planning, and management.
34
What does the Total Quality Management (TQM) define?
Quality as defined by the customer.
## Footnote
It emphasizes meeting customer needs and expectations.
35
What is the Advertising revenue model?
Provides users with information on services and products while offering suppliers an opportunity to advertise.
## Footnote
It is commonly used in digital platforms.
36
What are Appraisal costs?
Costs associated with uncovering defects in products or services.
## Footnote
They are part of the quality management process.
37
What are Automated order entry systems?
Methods using telephone models to send digital orders to suppliers.
## Footnote
They streamline the ordering process.
38
Define Backwards integration.
Owning or controlling sources of raw materials and components.
## Footnote
It helps companies secure their supply chain.
39
What is Benchmarking?
Studying other companies' business practices for comparison.
## Footnote
It identifies best practices for improvement.
40
What does the Bullwhip effect refer to?
Inaccurate or distorted demand information created in the supply chain.
## Footnote
It can lead to inefficiencies and excess inventory.
41
What is Business to Business commerce?
Businesses buying and selling to other businesses.
## Footnote
It differs from Business to Consumer commerce.
42
What does Business to Consumer commerce entail?
Businesses selling directly to individual consumers.
## Footnote
It includes retail and online transactions.
43
What are Cause and effect diagrams?
Charts that identify potential causes of quality problems.
## Footnote
They are used in quality control processes.
44
Define Checklist in quality management.
A list of common defects and the number of observed occurrences of each.
## Footnote
It aids in identifying quality issues.
45
What is Conformance to specifications in TQM?
How well a product or service meets the targets and tolerances set by designers.
## Footnote
It is a key measure of quality.
46
What is Continuous improvement?
A philosophy of never-ending improvement in processes and products.
## Footnote
It is central to quality management practices.
47
What are Control charts used for?
To evaluate whether a process is operating within expectations.
## Footnote
They help in maintaining quality standards.
48
What is Crossdocking?
Eliminates storage and order picking functions of a distribution warehouse.
## Footnote
It improves efficiency in logistics.
49
What does Customer defined quality refer to?
An integrated effort designed to improve quality performance at every level of the organization.
## Footnote
It focuses on satisfying customer needs.
50
What is the Deming Prize?
A Japanese award recognizing companies for quality improvement efforts.
## Footnote
It encourages excellence in quality management.
51
What is Distribution management?
Responsible for the movement of material from the manufacturer to the customer.
## Footnote
It involves logistics and supply chain coordination.
52
What is a Distribution warehouse used for?
Short-term storage, consolidation, and product mixing.
## Footnote
It plays a role in distribution logistics.
53
What is Distributor crossdocking?
Receiving and consolidating inbound products from different vendors into a multi-SKU pallet.
## Footnote
It optimizes inventory management.
54
Define E-commerce.
Using the internet and web to conduct business transactions.
## Footnote
It includes buying and selling goods online.
55
What are E-distributors?
Independently owned net marketplaces with catalogs representing thousands of suppliers.
## Footnote
They facilitate spot purchases.
56
What is E-purchasing?
Connecting online MRO suppliers to businesses for long-term contractual purchasing.
## Footnote
It streamlines procurement processes.
57
What is Early supplier involvement (ESI)?
Involvement of critical suppliers in new product design.
## Footnote
It enhances collaboration and innovation.
58
What is Electronic data interchange (EDI)?
A form of computer-to-computer communication for sharing business documents.
## Footnote
It improves efficiency in transactions.
59
What are Electronic requests for quotes (eRFQs)?
Electronic requests for quotes on goods and services.
## Footnote
They facilitate faster procurement processes.
60
Define Electronic storefront.
Online catalogs of products made available to the general public by a single supplier.
## Footnote
It serves as a digital sales platform.
61
What are Exchanges in e-commerce?
Marketplaces focusing on spot requirements of larger firms in a single industry.
## Footnote
They facilitate trade between businesses.
62
What are External Failure costs?
Costs associated with failures that occur at the customer site.
## Footnote
They impact customer satisfaction and company reputation.
63
What are Extranets?
Intranets linked to the internet to include suppliers and customers.
## Footnote
They enhance communication and collaboration.
64
What does Fitness for use mean in TQM?
How well the product performs its intended purpose.
## Footnote
It is a key aspect of customer satisfaction.
65
What is a Flowchart?
A schematic of the sequence of steps involved in a process.
## Footnote
It helps visualize workflows.
66
Define Forward integration.
Owning or controlling the channels of distribution.
## Footnote
It secures market access for products.
67
What is a General warehouse used for?
Long-term storage of products.
## Footnote
It supports inventory management.
68
What is Green supply chain management?
Focuses on the supply chain's environmental impact.
## Footnote
It promotes sustainability in operations.
69
What is a Histogram?
A chart showing frequency distribution of observed values of a variable.
## Footnote
It is used in data analysis.
70
What is Incoming inspection?
Verifying the quality of incoming goods.
## Footnote
It is crucial for maintaining product standards.
71
What are Industry consortia?
Industry-owned markets for purchasing direct inputs from a limited number of suppliers.
## Footnote
They enhance bargaining power and reduce costs.
72
What are Insourced processes?
Activities completed in-house by the company.
## Footnote
They allow for greater control over quality.
73
What are Internal failure costs?
Costs associated with discovering poor quality products before they reach customers.
## Footnote
They can be mitigated through quality control.
74
What are Intranets?
Networks internal to the organization.
## Footnote
They facilitate internal communication.
75
What is ISO 14000?
A set of standards and certification focused on environmental responsibility.
## Footnote
It encourages sustainable practices in business.
76
What is ISO 9000?
A set of quality standards and certification indicating companies have met that standard.
## Footnote
It ensures quality management practices are in place.
77
What does Kaizen mean?
A Japanese term for continuous improvement through learning and problem-solving.
## Footnote
It is a fundamental concept in quality management.
78
What is Logistics?
The process of obtaining, producing, and distributing materials and products.
## Footnote
It is essential for supply chain efficiency.
79
What is the Malcolm Baldridge Award?
An award for demonstrating quality excellence and establishing best practices.
## Footnote
It promotes competitiveness among organizations.
80
What is Manufacturing crossdocking?
Receiving and consolidating inbound supplies for JIT manufacturing.
## Footnote
It streamlines production processes.
81
What are Net Marketplaces?
Platforms where suppliers and buyers conduct trade in an internet-based environment.
## Footnote
They facilitate B2B transactions.
82
What are Outsourced processes?
Activities completed by suppliers rather than in-house.
## Footnote
They can reduce costs and increase efficiency.
83
What is Pareto Analysis?
A technique used to identify quality problems based on their degree of importance.
## Footnote
It follows the 80/20 rule in problem-solving.
84
What is Partnering?
Developing long-term relationships with suppliers based on trust and shared information.
## Footnote
It enhances collaboration and reduces risks.
85
What is the Plan-do-study-act (PDSA) cycle?
A diagram describing the activities needed for continuous improvement.
## Footnote
It is a framework for quality management.
86
What is Postponement in production?
Shifting production differentiation closer to the consumer by postponing final configuration.
## Footnote
It allows for customization based on demand.
87
What are Prevention costs?
Costs associated with preventing poor quality or defects from occurring.
## Footnote
Investing in prevention reduces overall costs.
88
What is the significance of Price and availability?
Current prices and whether the quantity is available when needed.
## Footnote
It affects purchasing decisions.
89
What are Psychological criteria in TQM?
Ways of defining quality based on judgment of product or service excellence.
## Footnote
They influence customer perceptions.
90
What is a Purchase order?
A legal document committing to buy goods with details of the purchase.
## Footnote
It formalizes the procurement process.
91
What is Quality at the source?
The principle of uncovering problems at the source and correcting them.
## Footnote
It emphasizes proactive quality management.
92
What is a Quality Circle?
A team of volunteer workers and supervisors meeting regularly to solve quality issues.
## Footnote
It fosters employee involvement in quality improvement.
93
What is Quality function deployment (QFD)?
A tool to translate customer preferences into specific technical requirements.
## Footnote
It aligns product development with customer needs.
94
What is Radio frequency identification (RFID)?
Unpowered microchips used to transmit encoded information through antennae.
## Footnote
It enhances inventory tracking.
95
What is Reliability?
The probability that a part, product, or service will perform as intended.
## Footnote
It is a key aspect of quality assurance.
96
What is a Requisition?
A request indicating the need for an item.
## Footnote
It initiates the procurement process.
97
What is Retail crossdocking?
Sorting product from multiple vendors onto outbound trucks for specific stores.
## Footnote
It optimizes distribution efficiency.
98
What is Robust design?
A design that results in a product performing well under various conditions.
## Footnote
It enhances product reliability.
99
What is the Sales revenue model?
A means of selling goods, information, or services directly to consumers.
## Footnote
It generates income for businesses.
100
What is a Scatter diagram?
Graphs showing how two variables relate.
## Footnote
It is used in data analysis to identify correlations.
101
What is a Sourcing strategy?
A plan indicating suppliers to be used when making purchases.
## Footnote
It is essential for effective procurement.
102
What is the Subscription revenue model?
A website charging a subscription fee for access to its contents and services.
## Footnote
It creates a steady revenue stream.
103
What is Supply Chain?
All activities involved in delivering a finished product or service to the customer.
## Footnote
It encompasses the entire production and distribution process.
104
What is Supply chain management (SCM)?
Coordinates and manages all activities of the supply chain to reduce costs and increase responsiveness.
## Footnote
It is critical for business success.
105
What is Supply chain velocity?
The speed at which a product moves through a pipeline from the manufacturer to the customer.
## Footnote
It affects delivery times and inventory management.
106
What are Support Services in TQM?
Quality defined in terms of the support provided after the product or service is purchased.
## Footnote
They enhance customer satisfaction.
107
What is the Taguchi loss function?
Costs of quality increase as conformance values move away from the target.
## Footnote
It emphasizes the importance of meeting quality standards.
108
What do Tier one suppliers provide?
Materials directly to the processing facility.
## Footnote
They are essential for production operations.
109
What do Tier two suppliers do?
Directly supply Tier one suppliers with materials and services.
## Footnote
They are critical for maintaining supply chain integrity.
110
What do Tier three suppliers provide?
Materials and services to Tier two suppliers in the supply chain.
## Footnote
They often focus on raw material extraction.
111
What is Total quality management?
The meaning of quality as defined by the customer.
## Footnote
It is a holistic approach to quality improvement.
112
What is the Transaction fee model?
A company receives a fee for executing a transaction.
## Footnote
It is commonly used in e-commerce platforms.
113
What is Transportation crossdocking?
Consideration of LTL shipments to gain economies of scale.
## Footnote
It optimizes transportation logistics.
114
What is Value for price paid in TQM?
Quality defined in terms of consumer's perception of usefulness related to prices paid.
## Footnote
It reflects the customer’s value assessment.
115
What is Vertical integration?
A measure of how much of the supply chain is owned by the manufacturing company.
## Footnote
It can impact control and efficiency in production.
116
What is a tier three supplier?
Directly supplies materials or services to a tier two supplier in the supply chain.
117
What does total quality management mean?
The meaning of quality as defined by the customer.
118
What is the transaction fee model?
A company receives a fee for executing a transaction.
119
What is vertical integration?
A measure of how much of the supply chain is owned by the manufacturing company.
120
Define break even analysis.
Used to compute the amount of goods that must be sold just to cover costs.
121
What is capacity in a manufacturing context?
Maximum output rate that can be achieved by a facility.
122
What is capacity planning?
The process of establishing the output rate that can be achieved by a facility.
123
What are diseconomies of scale?
A condition in which the cost of each additional unit made increases.
124
What are economies of scale?
A condition in which the cost of each additional unit made decreases.
125
What does effective capacity refer to?
Maximum output rate under normal conditions, lower than design capacity.
126
What is the expected value in decision-making?
A weighted average of chance events, where each chance event is given a probability of occurrence.
127
What is factor rating in location analysis?
A procedure that can be used to evaluate multiple alternative locations based on a number of selected factors.
128
What defines focused factories?
Facilities that are small specialized and focused on a narrow set of objectives.
129
What is the load-distance model?
A procedure for evaluating location alternatives based on distance.
130
What are the beliefs defining JIT philosophy?
Operations, simplicity, continuous improvement, visibility, and flexibility.
131
What does the pull system in JIT refer to?
A JIT system based on a pull rather than a push system.
132
What is the purpose of poka-yoke?
Foolproof devices or mechanisms that prevent defects from occurring.
133
What is the purpose of a withdrawal card in Kanban?
A Kanban card that authorizes withdrawal of material.
134
What is backward integration?
Owning or controlling the source of raw materials and components.
135
What is the first step in making location decisions?
Identify Dominant Location Factors.
136
What does throughput measure in process performance?
Standard time it takes for a product to move through the entire system.
137
What is process velocity?
Throughput/value added time.
138
What does productivity measure?
Output/input.
139
What are process layouts?
Resources grouped based on process.
140
What is the purpose of internal functions in supply chain?
Processing and packaging facilities.
141
What is finite loading in scheduling?
Used to understand what available capacity can be utilized to cover needs.
142
What is the Theory of Constraints?
A focus on constraints to improve the effectiveness of a system.
143
What is the purpose of aggregate planning?
To determine production rates and necessary workforce size.
144
What is the first generation of ERP?
Interface software that managed routine activities for internal purposes only.
145
What is independent demand?
Demand for the products that the company produces.
146
Who is known for the concept of 'zero defects'?
Philip Crosby.
147
What did Joseph Duran define quality as?
Fitness for use.
148
What is a Bill of Material (BOM)?
Generated by the MRP, indicating how much and when materials will be needed.
149
What does visibility in JIT philosophy imply?
Problems must be visible to be identified and solved.
150
What is the definition of waste in a production context?
Anything that does not add value.
151
What is the hybrid aggregate plan?
A planning approach that uses a combination of level and chase approaches.
152
What is the definition of 'setup costs'?
Costs incurred when setting up production equipment.
153
Fill in the blank: A _______ is a Kanban card that authorizes production.
Production card
C215
flashcards
Decks in class (17)
# Cards
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C215 - Chapter 563
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C215 - Chapter 620
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Final153
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C215- Chapter 325
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C215 - Chapter 925
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C215 - Chapter 1016
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C215 - Chapter 1119
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C215 - Chapter 1512
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Chapter 533
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C215 - Chapter 716
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C215 - Chapter 416
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C215 - Chapter 1213
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Key Terms49
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C215- Chapter 1314
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C215 - Chapter 166
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C215 - Chapter 1413
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Terms/Definitions104
