Managing Quality Operations Management

question

Quality and competitive strategy
answer

Higher quality may be important factors in DIFFERENTIATION competitive strategy. Quality may reduce cost in some cases through increased productivity, lower rework and scrap.
question

Leadership
answer

Firm mission, culture, emphasis on quality. Employer fulfillment, Empowerment, commitment to the organization. Customer service.
question

Views of Quality
answer

User based, better performance, more features. Manufacturing base, conformance to standards, making it right the first time. Product based, specific and measurable attributes of the product.
question

Implications of Quality
answer

Company Reputation, Employment practices, product liability, global implications, perception of new products, supplier relations, reduce risk, improved ability to compete.
question

Dimensions of quality
answer

Performance, conformance, aesthetics, features, durability, perceived quality, reliability, serviceability, value.
question

Malcom Baldrige National Quality Award
answer

Established in 1988 by the U.S. government, designed to promote TQM practices, includes a variety of criteria.
question

Cost of Poor Quality
answer

Prevention cost, appraisal costs, internal failure, external failure.
question

International Quality Standards
answer

Industrial Standard Z8101 – 1981 (Japan) ISO 9000 series (Europe/EC): Common quality standards for products sold in Europe ( even if made in U.S.)
question

Names in Quality Management
answer

W. Edwards Deming 14 pints for Management. Joseph M. Juran top management commitment fitness for use. Philip B. Crosby Quality is free.
question

Ethics and quality management
answer

Operations managers must deliver healthy, sage quality products and services. Poor quality risk injuries, lawsuits, recall, and regulation. Organizations are judged by how they respond to problems.
question

Total Quality Management TQM
answer

Encompasses entire organization, from supplier to customer. Stresses a commitment by management to have a continuing, companywide drive toward excellence in all aspects of products and services that are important to the customer.
question

Demings 14 points
answer

1. Create consistency of purpose, 2. Build quality into product, stop depending on inspection, 3. Build long term relationships based on performance, not price. 4. Continuously improve product, quality, and service. 5. Start training.
question

6. Drive out fear, 7. Stop haranguing workers, 8. Remove barriers to pride in work.
answer

9. Institute a vigorous program of education and sell-improvement. 10. Put everybody in the company to work on the transformation. 11. Lead to promote change. 12. Emphasize leadership. 13. Break down barriers between departments. 14. Support, help, improve.
question

Seven Related Concepts of TQM
answer

Continuous improvement: Represent continual improvement of all process. Involves all operations and work centers including suppliers and customers. People, equipment, materials, procedures.
question

Six Sigma
answer

Originally developed by Motorola, Six Sigma refers to an extremely high measure of process capability. A Six Sigma capable process will return no more than 3.4 defects per million operations. Highly structured approach to process improvement.
question

Employe empowerment
answer

Getting employees involved in product and process improvements. Build communication network that include employees. Develop open, supportive supervisor. Build a high-morale organization. Quality circles. Move responsibility to employees. Create forma team structure.
question

Benchmarking: Selecting best practices to use as a standard for performance.
answer

Determine what to benchmark. Identify benchmarking partners. Take action to match or exceed the benchmark. Form a benchmark team. Collect & analyze benchmarking info.
question

Just – in – time JIT
answer

Pull’ system of production scheduling including supply management. Production only when signaled. Allow reduced inventory levels. Inventory costs money and hides process and material problems. Encourages improved process an product quality.
question

Taguchi concepts
answer

Experimental design methods to improve product an process design. Identify key components an process variable affecting product variation. Quality Robustness, ability to produce uniformly in adverse manufacturing and environmental conditions.
question

Remove the effects of adverse conditions.
answer

Small variations in materials and process do not destroy product quality. Quality loss function, shows costs including customer satisfaction, warranty and service, internal scrap & repair, etc. increase as the product moves away from what the customer wants.
question

Tools of TQM
answer

Tools for generating ideas, check sheets, scatter diagrams, cause and effect diagrams. Tools to organize the Data, Pareto charts, flow charts. Tools for identifying problems, histograms.
question

Statistical process control chart
answer

Uses statistics and control charts to tell when to take corrective action, drives process improvement, four key steps, measure the process, when a change indicated, find the assignable cause, restart the revised process.
question

Inspection
answer

Involves examining items to see if an item is good or defective, detect a defective product, does not correct deficiencies in process or product, It is expensive, Many problem, work fatigue, measurement error, process variability, cannot inspect quality into a product.
question

TQM in Services
answer

Service quality is more difficult to measure than the quality of goods.
question

Determinants of Service Quality
answer

Reliability, Responsiveness, Competence, Access, Courtesy, Communication, Credibility, Security, Understanding/ knowing the customer.
question

Production
answer

Creation of goods and services
question

Operations Management / Production
answer

A set of activities that creates value in the form of goods and services by transforming inputs into outputs. Design, operation and improvement of the system that creates and deliver the firm’s primary products and services.
question

Operations is one of the basic functions of any business.
answer

Efficiency, effectiveness and value. Operations Management provides a systematic way of looking at at organization and its process. Concepts and tools of Operations Management are used across other functions of a business.
question

Some of the Activities of operations Management.
answer

Service and product design, Quality management, Process and capacity design, Location Strategies, layout design, human resources & job design, supply-chain management, material requirements planning and inventory management, scheduling, maintenance.
question

Development of Operations Management
answer

Early Development, Adam Smith [1776] and Charles Babbage [1852] specialization of labor. Eli Whitney [1800] interchangeable parts.
question

Scientific Management
answer

Fredrick Taylor [1881] father of scientific management. Gantt [1916] Gantt charts. Frank & Lillian Gilbreth [1922] Motion Studies. Henry Ford & Charles Sorensen [1913] Assembly lines.
question

Quality Management
answer

Walter Shewhart [1924] Statistical Quality Control. W. Edward Deming [1950] TQM. Baldrige Award, ISO, Six Sigma Quality, etc. Business Process Reengineering.
question

Operations Research
answer

Many Researchers, EOQ, Linear Programming, Simulation, PERT/CPM, Waiting-line Theory, etc.
question

Goods VS. Services
answer

Goods, Usually tangible, can be inventoried, production separate from Consumption, can be produced to “tight” specification.
question

Services
answer

Usually intangible, cannot normally be inventoried and usually perishable, Often produced and consumed simultaneously it the interaction with customer. Inherently heterogeneous or variable, often involve a package of services. Continuum between pure goods and pure services.
question

Productivity
answer

Ratio of outputs to the inputs, output divided by input.
question

Productivity can be improved by reducing inputs, while holding outputs constant or increasing outputs while holding constant.
answer

labor productivity
question

Other partial measures of productivity
answer

Capital, materials,energy, etc.
question

Multi-factor productivity
answer

Consider more than one input relative to outputs, usually inputs are measured in dollars so that they can be added together. Measurement of productivity.
question

Examples of operations management positions.
answer

Plant manager, hospital administrator, branch manager of a bank, department store manager, call center manager, supply chain manager, purchasing manager, business process improvement manager, facilities manager, chief operating officer.
question

Operations and Strategy
answer

Mission: Why do we exist? Who are our customers?, What customers needs are being satisfied? What products or services do we provide?
question

Business Strategy
answer

How a firm competes: Competitive strategy, differentiation, cost leadership.
question

How operations fits in
answer

Operations management supports the business strategy.
question

Activities Strategic operations management decisions
answer

Service and product design, Quality management, process and capacity design, location, layout design, Human resources & job design, supply-chain management, inventory, scheduling, maintenance.
question

Project Management
answer

Three phases, 1. planning, 2. scheduling, 3. Controlling.
question

Project Planning
answer

Definition of a project: series of related tasks directed towards a major output.
question

Characteristics of typical projects
answer

Defined with a specific goal and deadline, may be unique or somewhat unfamiliar, may contain complex, interrelated task requiring specialized skills, finite life, cuts across organizational lines.
question

Project Organization
answer

Typical organized in a matrix fashion.
question

Project managers
answer

High visibility, responsible for making sure project is finished on time, within budget, and according to specifications, manage people assigned to the project.
question

Project Scheduling
answer

Sequencing and allotting of time to project activities. Show relationship of each activity to others and to the whole project. Identify precedence relationship among activities.
question

Sets realistic time and cost estimates for each activity. Identifies critical bottlenecks in the project, thus allowing better use of people and other resources.
answer

Project Management Techniques
question

The Techniques are next
answer

Gantt Chart: useful for smaller projects, Pert: Program Evaluation and Review Technique. CPM: Critical Path Method.
question

PERT & CPM
answer

Were developed to schedule, monitor and control large & complex projects.
question

Six Basic Steps for PERT & CPM
answer

1. Define project an prepare work breakdown structure, 2. Development relationship among the activities, including which activities must precede and which activities must follow others.
question

3. Draw network connecting all of the activities 4. Assign time and / or cost estimates to each activity.
answer

5. Compute the longest time path through the network also called the critical path. 6. Use the network to help plan, schedule, monitor and control projects.
question

Approaches
answer

Activity on Node AON AND Activity on Arrow AOA
question

PERT & CPM Advantages
answer

Especially useful for large and or complex projects. Straightforward and not mathematically complex. Graphical network help to visualize relationships among projects activities.
question

Critical path an slack time analyses help pinpoint activities that need to be most closely monitored
answer

Applicable to a wide variety of projects.
question

PERT & CPM
answer

Determine project schedule.
question

ES
answer

Earliest start, the earliest time which an activity can start, assuming all predecessor have been completed.
question

EF
answer

Earliest finish, the earliest time at which an activity can be finished.
question

LS
answer

Latest start, the latest time at which an activity can start so as to not delay the completion of the entire project.
question

LF
answer

Latest finish, the latest time by which an activity has to be finished so as to not delay the completion time of th entire project.
question

Forward pass
answer

Begin at starting event and work forward.
question

Earliest Start time rule
answer

If an activity has only 1 predecessor, the ES is the EF of the predecessor. If an activity has multiple predecessors, then the ES is the maximum of the EFs of all the predecessors.
question

Earliest Finish Time Rule
answer

The earliest finish time EF of an activity is the sum of the earliest start time ES and its activity time.
question

Backward Pass
answer

Begin with the lat event and work backwards.
question

Latest finish rule
answer

If an activity is an immediate predecessor for just a single activity, its LF is the minimum of ALL activity that immediately follow it. If an activity is an immediate predecessor to more than one activity, its LF is the minimum of ALL activities that immediately follow it.
question

Latest Start time rule
answer

The last start time LS of an activity is the difference of its latest finish time LF and its activity time .
question

Compute Slack Time for Each Activity
answer

Slack is the length of time an activity can be delayed without delaying the entire project.
question

Slack = LS – ES or Slack = LF – EF
answer

The critical path has no slack!
question

Variability in activity times
answer

CPM assumes a fixed tim with no variability. PERT uses a probability distribution for activity times.
question

Three time estimates
answer

Optimistic time a, Most-likely time m, Pessimistic time b.
question

Expected time
answer

t=[a+4m+b]/6
question

Variance time
answer

v=[[b-a]/6]^2
question

Project variance
answer

Sum of variances for critical activities.
question

Project standard deviation
answer

Square root of project variance.
question

PERT assumes that total project completion times are normally distributed.
answer

Probability of project completion on time can be estimated using the normal distiribution.
question

Project Crashing
answer

Shortening the projects’s duration. Select activity on critical path can be crashed and the smallest crash cost.

Get instant access to
all materials

Become a Member