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OM 300- Chilcutt Exam Two| Questions and
100% Correct Answers
Managing quality supports ____________, ____________, and ____________ strategies differentiation, low cost, and response What is an operations manager's objective? To build a total quality management system that identifies and satisfies customer needs American Society for Quality The totality of features and characteristics of a product or service that bears on its ability to satisfy stated or implied needs User based view Better performance, more features Manufacturing-based view conformance to standards, making it right the first time Product based view
Specific and measurable attributes of the product Prevention costs (Costs of Quality) Reducing the potential for defects (training, quality improvement programs) Appraisal costs (Costs of Quality) Evaluating products, parts, and services Internal failure costs (Costs of Quality) Producing defective parts or service before delivery External failure costs (Costs of Quality) Defects discovered after delivery (recalls) Implications of Quality
- Company reputation: perception of new products, employment practices, supplier relations 2. Product liability: reduce risk 3. Global implications: improved ability to compete Seven Concepts of TQM
Taguchi Concepts Engineering and experimental design methods to improve product and process design. Identify key component and process variables affecting product variation. Quality robustness, Target-oriented quality, Quality loss function (QLF) Quality Robustness Ability to produce products uniformly in adverse manufacturing and environmental conditions. Remove the effects of adverse conditions. Small variations in materials and process do not destroy product quality. Quality Loss Function Target-oriented quality. Shows that costs increase as the product moves away from what the customer wants. Costs include customer dissatisfaction, warranty, and service, internal scrap and repair, and costs to society. Traditional conformance specifications are too simplistic. Poka-yoke the concept of foolproof devices or techniques designed to pass only acceptable products. Checklists ensure consistency and completeness.
What are the four basic strategies?
- Process focus 2) Repetitive focus 3) Product focus 4) Mass customization (Within these basic strategies there are many ways they may be implemented) Process Focus Facilities are organized around specific activities/processes. General purpose equipment and skilled personnel. High degree of product flexibility. Typically high costs and low equipment utilization. Product flows may vary considerably making planning and scheduling a challenge. What are the four M's of the fishbone diagram? Manpower, material, machinery, and methods. Repetitve Focus Labor-planning policies Employment-stability policies. 1. Follow demand exactly- Matches direct labor costs to production, incurs costs in hiring and termination, unemployment, insurance, and premium wages, labor is treated as a variable cost. 2. Holds employment constant-Maintains trained workforce, minimizes hiring, layoff, and
Human resource strategy requires consideration of the psychological components of job design Human Resource Strategy The objective is to manage labor and design jobs so people are effectively and efficiently utilized. Ensures that people: 1. Are efficiently utilized within the constraints of other operations management decisions 2. Have a reasonable quality of work life in an atmosphere of mutual commitment and trust Core Job Characteristics
- Skill variety 2. Job identity 3. Job significance 4. Autonomy 5. Feedback Limitation of Job Expansion
- Higher capital cost 2. Individual differences 3. Higher wage rates 4. Smaller labor pool 5. Higher training costs Ergonomics The study of the human interface with the environment and machines. Often called human factors. Operator input to machines needs to be carefully evaluated. The work environment
Illumination, noise, temperature, humidity Methods Analysis Focuses on how task is performed. Used to analyze 1. Movement of individuals or material (Flow diagrams and process charts) 2. Activities of human and machine and crew activity (activity charts) 3. Body movement (operations charts) Kanban Visual kanbans reduce inventory and foster JIT. Kanban is for inventory Andon Visual signals andon at the machine notify support personnel. Andon is for equipment. The Visual Workplace Best way to manage a team of people. Displays and graphs replace printouts and paperwork. Able to provide timely info in a dynamic environment. System should focus on improvement. Visual signals can take many forms and serve many functions: 1. Present the big picture 2. Performance 3. Housekeeping Four ways of establishing Labor Standards
- Define the task to be studied 2. Divide the task into precise elements 3. Decide how many times to measure the task 4. Time and record element times and rating of performance Rest Allowances
- Personal time: Restroom, water fountain 2. Delay: Based upon actual delays that occur 3. Fatigue: Based on our knowledge of human energy expenditure Sample Size
- How accurate we want to be 2. The desired level of confidence 3. How much variation exists within the job elements. Seven major factors that effect location decisions
- Labor productivity cost 2. Exchange rates and currency risks 3. Costs 4. Political risk, values, and culture 5. Proximity to Markets 6. Proximity to Suppliers 7. Proximity to competitors (Clustering) Objective of location strategy
To maximize the benefit of location to the firm. Options include: 1. Expanding existing facilities 2. Maintain existing and relocating 3. Closing existing and relocating Drivers of globalization Market economics, communication, rapid/ reliable transportation, ease of capital flow, differing labor costs Location Country Decision Key Success Factors ( KSF's)
- Political risks, government rules, attitudes, incentives, 2. Cultural and economic issues 3. Location of markets 4. Labor talent, attitudes, productivity, costs 5. Availability of supplies, communications, energy 6. Exchange rates and currency risks Location Region/ Community Decision Key Success Factors
- Corporate desires
- Attractiveness of region
- Labor availability and costs
- Costs and availability of utilities
quality of life. Location decisions based on costs alone can create difficult ethical decisions. Proximity to Markets Very important to services. JIT (Just in time) systems or high transportation costs may make it important to manufaturers Proximity to Suppliers Perishable goods, high transportation costs, bulky products Proximity to competitors (Clustering) Often driven by resources such as natural info, capital, talent. Found in both manufacturing and service industries. Ex. Fast food restaurants near each other, bars near each other because it makes it easy for the customers to view their options, there is a supply of employees. Factor-Rating Method Popular because a wide variety of factors can be included in the analysis. Factor-Rating Method Steps
- Develop a list of relevant factors called key success factors
- Assign a weight to each factor
- Develop a scale for each factor
- Score each location for each factor
- Multiply score by weights for each factor and total the score for each location
- Make a recommendation based on the highest point score Location Cost-Volume Analysis An economic comparison of location alternatives. Three steps: 1. Determine fixed AND variable costs for each location 2. Plot the cost for each location 3. Select location with the lowest total cost for expected production volume Center-of-gravity method Finds location of distribution center that minimizes distribution costs. Considers: location of markets, volume of goods shipped to those markets, shipping cost (or distance) Problem with Center-of-gravity Method
Service Sector Location Analysis REVENUE FOCUSED Process Strategy objective To create a process to produce offerings that meet customer requirements within cost and other managerial constraints Process focus Facilities are organized around specific activities or processes. General purpose equipment and skilled personnel. High degree of product flexibility. Typically high costs and low equipment utilization. Product flows may vary considerably making planning and scheduling a challenge.
