Final OPM Study Guide Vocab

Shingo Rule of 10’s (Quality at the Source)
every time an error passes a stage, it costs 10 times more

DRIFT principle
“do it right the first time”

Process Control Chart
run chart with Upper Control Limits and Lower Control Limits, 3 standards (99.7%) of all data points in between Control Limits;can have outlier but if it happens too much then the Control Limits are expanding

Cost of Poor Quality (COPQ) /Cost of Quality (COQ)
1.Internal prevention
2.External prevention
3.Internal appraisal of failure
4.External appraisal of failure

5-why diagramming
systematic approach, ask 5 questions for each problem, can break problems into small chunks for individual teams

Failure mode and effect analysis (FMEA)
structured approach to identify, estimate, prioritize and evaluate risk of possible failures at each stage

Design of experiments (DOE)
statistics methodology to determine cause and effect relationships between variables and output; permits experimentation with many variables simultaneously

MAD
average of absolute misses from mean of process

Variable
characteristics that are measured using an actual value (quantitative)

Supplier Certification
way of eliminating waste and overhead, earned trust with an organization so we don’t have to check on them, count accuracy new area considered

Red Tag Process
choosing an area to 5S and eliminating all unneeded in materials in the area

Squirrel Day
pick day to red tag things

Product and Service Flow
Involves movement of goods and services from suppliers to customers as well as handling customer service needs and product returns

Information flow
Involves sharing forecasts and sales data, transmitting orders, tracking shipments, and updating order status

Financial flow
involves credit terms, payments, and consignment and title ownership arrangements

Traffic management
Overseeing the shipment of incoming and outgoing goods

(RFID) Radio frequency identification
used to label products and track movement and transactions

Rail
designed to move large volumes of good long distances at good speed; limited in terms of where it can go

Road (trucks and cargo vans)
commonly used to ship door to door

Air
carries lightweight, small, expensive and emergency items (jewelry, jewels, transplant organs);most expensive way to ship, high cost per pound

Water (maritime shipping)
designed for moving low value cargo over long distances where water routes are available

Pipeline
designed to move large volumes of fluid (petroleum, water, etc) quickly and continuously

Disintermediation
Reducing one or more steps in a supply chain by cutting out one or more intermediaries

DMIAC (define, measure, analyze, improve, control)
reminder of what good process is so you don’t cheat on making product

Lean Building Blocks
-product design
-process design
-personnel/organizational elements
-manufacturing planning and control

Juran’s Trilogy
-Quality Improvement
-Quality Planning
-Quality Control

Standard Word
best in class examples of process

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