Data type #1: variable data: measured, variable, continuous data, like the weight of a cereal box.

More difficult to obtain variable data. 4-5 sample sizes. Mean chart: searches for shift in mean/avg. of process. Range chart: done first and searches for shift in variability (rise/increase). Both used on analysis. Data type #2: attribute data: discrete, categorical data, defects, problems. It works or it doesnt. (ex: yes/no, pass/fail, works/broken. Non-defect/defect). Easy to obtain. Sample size 50-100+. P chart (binomial distribution): % or fraction (ex: 4/100, 4%). C chart: number of defects. Not out of anything. Edward Deming: lowering variation and 14 points. TQM: 0 defects, process avoiding poor quality. SQC: too many defects > allowable defects= reject shipment entirely. Acceptance sampling: <3. Forms of inspection applied to lots of batches to judge conformance with predetermined standards. SPC: inspection to determine process within acceptable limits. (Mean, range, p, and c charts). Statistical sampling data: attributes: go/no, good/bad, use p chart. Large samples (50-100+). Variables: measured on a continuous scale. (Lbs., inches, volts) use x range chart. AQL: avg./standard amount of defects, good lot. Prods risk: the probability of rejecting a good lot, typically 5%. LTPD: highest % of defects consumer will tolerate. Conss risk: probability of accepting a bolt lot, typically 10%. Common cause: variation inherent in a process, natural and expected/allowed. Above variability line. Special causes: traceable problems. Stable system: common causes. In control: no special causes affect output. Out of control: special causes present. Control limits: high probability that pts. Will fall between limits, in control. Type 1 error: error of first kind-false alarm, prob. happening: alpha. 2: secret problem, consumers risk. Beta. OSM: design, operations and improvement of the systems that create and deliver the firms primary products and services. Servitization: builds service activities to support firms product offerings. Efficiency: doing something at the lowest cost. Effectiveness: doing the right things to create most value in company. Value: ratio of quality to price paid. Increase quality and reduce price while maintaining profit margin. +customer retention, market share. Mass customization: producing products in lot sizes of one. Sustainability: maintain balance in system. Triple bottom line: economic, employee, and environmental impact of firms strategy. Supply chain network: Planning: The processes needed to determine the set of future actions required to operate an existing supply chain. Sourcing: The selection of suppliers. Making: A type of process where the major product is produced or service provided. Delivering: A type of process that moves products to warehouses or customers. Returning: Processes that involve the receiving of worn out, defective, and excess products back from customers and support for customers who have problems. Service: A business where the major product is intangible that cannot be weighed or measured. TQC: A philosophy, which aggressively seeks to eliminate causes of production defects. Business Process Reengineering: An approach that seeks to make revolutionary changes as opposed to evolutionary changes (which is advocated by total quality management). Lean Manufacturing: An approach that combines TQM and JIT. Six-Sigma Quality: Tools that are taught to managers in Green and Black Belt Programs. Service Science Management: A program to apply the latest concepts in information technology to improve service productivity. Sustainable: A strategy that is designed to meet current needs without compromising the ability of future generations to meet their needs. Cost: It is probably most difficult to compete on this major competitive dimension. Order Winner: A criterion that differentiates the products or services of one firm from those of another. Order Qualifier: A screening criterion that permits a firms products to he considered as possible candidates for purchase. Activity System Map: A diagram showing the activities that support a companys strategy. 7 dimensions: Cost, quality, delivery speed, delivery reliability, coping with changes in demand, flexibility and new product introduction speed, other product-specific criteria. Productivity: ratio of output/input. Make-to-order: A firm that makes predesigned products directly to fill customer orders has this type of production environment. Decoupling Point: A point where inventory is positioned to allow the production process to operate independently of the customer order delivery process. Engineer to Order: A firm that designs and builds products from scratch according to customer specifications would have this type of production environment. Cell: This is a production layout where similar products are made. Typically it is scheduled on an asneeded basis in response to current customer demand. Product Process Matrix: The relationship between how different layout structure are best suited depending on volume and product variety characteristics is depicted on this type of graph. EX: What is the efficiency of an assembly line that has 25 workers and a cycle time of 45 seconds? Each unit produced on the line has 16 minutes of work that needs to be completed based on a time study completed by engineers at the factory. [85% = (16 60)/(25 45)]. Degree of Customer Contact: Service systems can he generally categorized according to this characteristic that relates to the customer. Service System Design Matrix: A framework that relates to the customer service system encounter. Line of Visibility: This is the key feature that distinguishes a service blueprint from a normal floss chart. Poka-Yoke: This is done to make a system mistake proof. Queuing models: Waiting time in the first system is two times the second. EX: What is the average utilization of the servers in a system that has three servers? On average, 15 customers arrive every 15 minutes. It takes a server exactly three minutes to wait on each customer. 100%. EX: Firms that desire high service levels where customers have short wait times should target server utilization levels at no more than this percent. 70-80%. EX: If a firm increases its service capacity by 10 percent it would expect waiting times to be reduced by what percent? Assume customer arrivals and service times are random. Greater than 10%. Design Quality: This refers to the inherent value of the product in the marketplace and is a strategic decision for the firm. Conformance: Relates to how well a product or service meets design specifications Fitness for Use: Relates to how the customer views quality dimensions of a product or service. ISO 9000: The series of international quality standards. Variation: What is the enemy of good quality DMAIC: The standard quality improvement methodology developed by General Electric. Assignable: Variation that can he clearly identified and possibly managed. Taguchi: An alternative to viewing an item as simply good or had due to it falling in or out of the tolerance range. Attribute: Quality characteristics that are classified as either conforming or not conforming to specification. Variable: A quality characteristic that is actually measured, such as the weight of an item. P-chart: A quality chart suitable for when an item is either good or bad. C-chart: A quality chart suitable for when a number of blemishes are expected on each unit, such as a spool of yarn. Acceptance Samples: Useful for checking quality when we periodically purchase large quantities of an item and it would be very costly to check each unit individually. Op Characteristics Curve: A chart that depicts the manufacturer and consumers risk associated with a sampling plan. EX: A Six-Sigma process that is running at the center of its control limits would expect this defect rate= 2 parts per billion units. EX: If a process has a capability index of 1 and is running normally (centered on the mean), what percent of the units would one expect to be defective? = Design limits are at 3 or 2.7 defects per thousand. 1:10:100= cost $1, prod. cost $10, customer cost $100 to fix. CPK: results from common causes, process center, how well product fits into range, want >1 (1.66=best). Maketo-stock: from finished inventory (shoes, TV.). Make-to-order: produce delivered (weddings, surgery). Assemble to order: standard parts subassemblies. Custom selected (subway sandwich). Projects: large scale consists of smalls tasks finish on time, within budget. Job shop: A manufacturing facility that generates a variety of products in relatively low numbers and in batch lots. Job shop processes: types of gen-purpose equip flexible of custom work for cust. Signif setup, batch, low to mod volume, dif products, high labor skills, custom to specs. hospitals, legal services. Flow shop: process around fixed steps. Auto, aircraft assembly line, and hospital lab work. Contin flow: very high vol goods services, 24/7., high invest in system, continuous op, automat, chem, gas, steel; Value Chain: A supply chain delivers product, cradle-to-grave model adds value. network of process which flow goods, services, info, cash suppliers to cust. Info back to suppliers. GSC: customer preferences w/ supply nets. Processes: Planning: process to op supply chain strategically. Sourcing: suppliers. Produce, Deliver, Return: defective, excess products. Durable good: 3<. Non-durable good <3. Service not produce a phys. product. US is Manuf 20% jobs, Service grow. US Manuf #1 in world. Amer output highest world. Half of manuf jobs involve services ( Op Mgmt, resource, Acctg, fin) 90% of the US Jobs are service processes. Services intangible, not patented, interact w/ custr, design for cust, heterogeneous, perishable, time dependent. cannot be stored. Challenges: 1. Coord support, sep orgs 2. Optimiz global 3. Mang cust touch pts 4. Raise senior mgt aware op as compet weapon 5. Sustain triple bottom line (Econ, employee, and envlro viability). Op and supply strategy: set broad policies plans for use recourse firm to best support long-term compet strat. Part of a plan process that coord op goals with larger org. Op drives core biz proces to run biz. Mission umbrella then Corp Strat then ops strat to support Compet advan: a cos ability to achieve market superiority. Core Competencies: Effective strategies develop around key competitive priorities e.g., low cost, fast service, speed/time, qual, flex, innov. Provides a focus for the org. 1. Provides cust benefits 2. hard for competitors to imitate 3. Lever widely to products. Compet dimensn: emphasis a co places on perform measure in value chain. Quality meas degree output of process meets cust requires. Speed reliability are the most important sources of compet adv. Flexibility ability adapt quick effectv to change requirmnts, demand, vol, bring new goods/services fast. Straddle: co seeks to match competitor by new features, services, to existing activ. Not Focused. Creates probs, risky. #1: how org provides value to cust.. Good decis facilitated via measure. Good measures enable mgrs to control process make decisions. Measures - not too many or too few - Safety Measur vital to all orgs, Other measur; complaints, loyalty, retention, warranty, claims, failures. Qual measurs degree to which output of process meets cust requimnts. Common measure of goods qual is number of defects per unit. Dimensions of qual (Garvin) 1Performce, 2Features, 3Reliability, 4Conformance (the degree to which charact match pre-est standards), 5ServIce Quality (defects errors per million opportunities) 6Durability, 7Serviceability, 8Aesthetics, 9Flexibility flexibilities respond quickly to changes in the volume and type of demand, Innovation new and unique goods and services delight customers and create compet adv. Learn refers creating, acquiring, transfer knowledge to employees as demands change. How Productivity incr: more effic (incr input) Downsize (reduce Input costs) Expand (both I/0 Incr, but Output grows faster). Retrench (both I/O decrease, Input decreases faster) Breakthroughs (output Increases, while Input decreases) Productivity confused with effic or effect. Efficiency is degree to which process generates outputs with min inputs. Effects is achieving the orgs object, mission, goal. Wall Street Evaluate (not include EPS). Efficiency, turnover, productivity, margin, asset utilil, growth. Queuing system 3 elements: customers that enter the system (machines awaiting repair, plane waiting to take off), servers that provide service (ATMs, comp.), waiting line (enrolling online, on location line). Throughput: parts per day, transaction per min, cust. per hour, ect. Bottleneck: slowest point, limits throughput. Balking: line too long, lose customers. Reengineering: fundamental rethinking and radical redesign. Achieving dramatic improvements in critical performance in cost, quality, service, and speed. Service op: issue is balancing cost of additional channels vs. costs of customers waiting. Queuing system factors: waiting line and # servers available. Types of arrival: constant (less common0, and variable (more typical). [true/false chap 5] 1. A car wash is an ex. of single channel, multiphase (T). 2. Standing in line to buy a ticket for a movie where there is only one window to buy ticket is..? (Single channel, single phase. 3. A tellers window in a bank is an ex. of single channel, multiphase (F). 4. Demand on a hospitals emergency medical service is considered uncontrollable arrival pattern of the calling population (multichannel, multiphase). 5. An infinite population in waiting line management refers to a population that is large enough in relation to the service system so that the population size caused by subtraction or additions to the population does not significantly affect the system probabilities (T). 7. Machine breakdown and repair in a twelve machine factory having three pair mechanics would develop which type of queuing system line structure concerning machine breakdowns (multichannel, single phase). 8. Buying food at a grocery store w/ multiple checkout counters (multichannel, single phase). 9. In the service

system design matrix, a mail contact service encounter is expected to have which of the following (low sales opp). 10. The basic notion of economies of scale is that as a plant gets larger and volume increases, the avg. cost per unit out output drops (T). 11. The demand on hospitals emergency medical services is considered a controllable arrival pattern of the calling population (F). 12. The frequency of additions t productive capacity should balance the costs of upgrading too frequently and the costs upgrading too frequently (T). 13. The obj. of strategic capacity planning is to provide an approach for determining the overall capacity level of labor intensive (F). 14. Capacity flexibility means having the ability to rapidly increase/dec. prod. levels, or to shift cap. Quickly from one prod. or service to another (F). 15. A constant arrival rate is more common in waiting line management than a variable arrival rate (F). 16. a service system w a high degree of cust. contact is less difficult to control than a low degree of customer contact serv. Sys (F). 17. Roller coaster ride: constant service. 18. The obj. of strategic cap. Planning is to determine the overall cap. Level of cap. Intensive resources that best support the companys long-range comp. strat (T). Partial measure of productivity: output/materials. Multifactor measure: output/(labor+cap+energy). Total measure: output/input. 1) There are different queuing models to fit dif. Queuing situations: True 2) The objec. Of strategic capacity planning is to determine the overall capacity level of capital intensive resources that best supports the companys long-range competitive strategy: True 3)The line of visibility in service blueprinting distinguishes between those activities that the customer sees presence & those the customers does not see: TRUE 4) The term Queue discipline involves the art of controlling unruly customers who have been irritated by waiting: FALSE. 5) Best operating level is the volume of output at avg unit cost ins minimized: TRUE 6) A car wash is an example of single channel, multiphase queuing system: TRUE 7)A production facility works best when it focuses on a fairly limited set of production objectives: TRUE 8)A college registration process several department heads have to approve an indiv. Student: SINGLE CHANNEL, MULTIPHASE. 9) Constant arrival rate is more common in waiting line management than a variably arrival rate: FALSE 10) Longest waiting time in line is a queue discipline mentioned in the textbook: TRUE 11) A roller coaster ride in a amusement park: SINGLE CHANNEL, Single PHASE. 1. an operations and supply strategy must be integrated with the organizations corp. strategy (T). 2. During a recession, efficient firms often have an opportunity to increase market share while maintaining profability (T). 3. The ops and supply activities of the firm need to strategically support the comp. Priorities of the firm (T). 4. A worker can be efficient without being effective (T). 5. The term value refers to the relationship between quality and the price paid by the customer (T). 6. Attempting to balance the desire to efficiently use resources while providing a highly effective service may create conflict between the two goals (T). 7. Surgeon performs a perfect heart op w no error but the patient dies the next day (not effective). 8. Efficiency means doing the right things to create the most value for the company (F). 9 Wall street analysts are not concerned w how efficient companies are from an ops and supply view (F). 10. One of the comp. Dimensions that form comp. position when panning their strategies is making the best trade-off (F). 11. Op and supply can be viewed as planning process that coordinates op goals w those of the larger org. (T). 1) Variation that is inherent in a production process itself is called assignable variation: FALSE 2) Process control is concerned w. monitoring quality after the product or service has been produced: FALSE 3) SIX-SIGMA refers to the philosophy & methods t hat some leading companies use to eliminate defects in their products & processes: TRUE 4) It is impossible to have zero variability in production process: TRUE 5)Quality at the source refers to the degree to which product or service design specifications are met: FALSE 6) COST OF QUALITY(4 types): 1. Prevention: Good training, quality equipment, quality at source, quality material. 2. Appraisal: inspections, testings. 3) Internal Fail: Scrap, rework worker injury 4). External Fail: Law suite, warranty, field repair. 7) Which of the following should a p chart to monitor process quality? Grades in a freshman Pass/Fail course 8) Which of the following should we use an R chart? Tire pressures in an auto assembly plant. 9)One SPC tool used in total quality management is the run chart: TRUE 10)An operational goal of total quality mang. Is the careful design of the product or service: TRUE 11) Variation that is inherent in a production itself Is called assignable variation: FALASE 12) A quality guru named Joseph Juran defined quality as fitness for use: TRUE 13) A process that is in six-sigma control will produce no more than two defects out of every mill. Units: False 14) Which of the following is an analytical tool used in 6-sigma? Pareto Charts 13. It is critical that a sustainable strategy meet the needs of shareholders and employee. It is also highly desirable that it presers environment (F).