Operations Management

1. Company Reputation 2. Product Reliability 3. Global implications

a set of quality standards developed by the International Organization for Standardization (ISO).

A series of environmental management standards established by the International Organization for Standardization (ISO). Five core elements: 1. Environmental management 2. Auditing 3. Performance Evaluation 4. Labeling 5. Life Cycle Assessment

Management of an entire organization so that it excels in all aspects of products and services that are important to the customer.

Continuous improvement 2. Six sigma 3. Employee empowerment 4. Benchmarking 5. Just in time(JIT) 6. Taguchi concepts 7. Knowledge of TQM tools

1. Check sheet: any kind of a form that is designed for recording data. 2. Scatter diagrams: Show the relationship between two measurements 3. Cause-and-effect diagram: schematic technique used to discover possible locations of quality problems. EX: Fishbone chart 4. Pareto charts: graphics that identify the few critical items as opposed to many less important ones. 5. Flowchart: block diagrams that graphically describe a process or system. 6. Histograms: show the range of values of a measurement and the frequency with which each value occurs. 7. Statistical process control (SPC): process used to monitor standards, make measurements, and take corrective action as a product or service is being produced.

a means of ensuring that an operation is producing at the quality level expected.

1. At your suppliers plant while the supplier is producing 2. At your facility upon receipt of goods from your supplier 3. Before costly or irreversible processes 4. During the step-by-step production service 5. When production or service is complete 6. Before delivery to your customer 7. At the point of customer contact

the personal component of services is more difficult to measure than the quality of the tangible component

is an approach of continuous and forced problem solving via a focus on throughput and reduced inventory.

focus on continuous improvement, respect for people, and standard work practices.

eliminates waste through a focus on exactly what the customer wants.

o JIT emphasizes forced problems solving o TPS emphasizes employee learning and empowerment in an assembly-line environment o Lean Operations emphasize understanding the customer

1. Overproduction: producing more than customer orders. 2. Queues: Idle time, storage, and waiting 3. Transportation: moving material between plants or between work centers and handling more than once is waste. 4. Inventory: unnecessary raw material, work in process, finished goods, and excess operating supplies 5. Motion: movement of equipment or people that adds no value is waste. 6. Overprocessing: work performed on the product that adds no value is waste. 7. Defective product: Returns, warranty claims, rework, and scrap

1. Sort/segregate: Keep what is needed and remove everything else from the work area. 2. Simplify/straighten: arrange and use methods analysis tools to improve work flow and reduce wasted motion. 3. Shine/sweep: Clean daily. 4. Standardize: remove variations from the process by developing standard operating procedures and checklists. 5. Sustain/self-discipline: review periodically to recognize efforts and to motivate to sustain progress.

the time required to move orders through the production process, from receipt to delivery.

time between the arrival of raw materials and the shipping of finished products.

concept that results in material being produced only when requested and moved to where it is needed just as it is needed.

reduce another kind of waste—Movement

the minimum inventory necessary to keep a perfect system running

is a Japanese word for CARD. In their effort to reduce inventory, they use a system that "pull" inventory through work centers.

o 1st JIT cuts the cost of obtaining good quality o 2nd JIT improves quality; as JIT shrinks queues and lead time, it keeps evidence of errors fresh and limits the number of potential sources of error. o 3rd Better quality means fewer bluffers are needed and, therefore, a better, easier-to-employ JIT system can exist.

1. Continuous improvement under TPS means building an organizational culture and instilling in its people a value system stressing that processes can be improved. 2. Respect for the people means people are recruited, trained, and treated as knowledge workers. 3. Standard Work Practice

o Can be thought of as the end result of a well-run OM function. o Lean operation production begins externally with a focus on the customer.