mba operations and supply chain management lecture notes 2

8/13/2019 MBA Operations and Supply Chain Management Lecture Notes 2

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We first reviewed Chapter 9 PowerPoint on Six-Sigma

Understand total quality management.

Describe how quality is measured and be aware of the different dimensions of quality.

Explain the define, measure, analyze, improve, and control (DMAIC) quality improvement process.

Understand what ISO certification means.

Learning Objectives for Chapter 9:

Key Six Sigma Concepts

attributes most important to the customer

Critical to quality:

failing to deliver what customer wants

Defect:

what your process can deliver

Process capability:

what customer sees and feels

Variation:

ensuring consistent, predictable processes to imp

what the customer sees and feels

Stable operations:

designing to meet customer needs and process

capability

Design for six-sigma:

managing the entire organization so that it excels on all dimensions of products and services

that are important to the customer

Careful design of the product or service1.

Ensuring that the organizations systems can consistently produce the design2.

Total quality management:

inherent value of the product in the marketplace

Design quality:

degree to which the product or service design

specifications are met

Conformance quality:

the person who does the work takes responsibility

making sure it meets specifications

Quality at the source:

000,000,1unitsofNumberunitpererrorforiesopportunitofNumber

defectsofNumberDPMO

One metric is defects per million opportunities (DPMO)

If you created 1,000,000 units and find 8 defects with 2

(8/2*1,000,000)*1,000,000=4E12

Which is 4 opportunities per 1,000,000 units

Analytical Tools for Six Sigma and Continuous Improvement

Flowcharts

Run charts

Make sure to have the thumb drive for tables and formulas

Will be open book

Review Formulas for flow-time, cycle-time, Little's Law, etc. from Chapter 5

Mid-Term is next Class!!!!In-Class Lecture 10/11/2010Monday, October 11, 2010

8:07 PM

Lecture Notes 10-4-2010 Page 1


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Helps to identify which items to tackle first by putting them side by side in order from greatest to least

Pareto charts

Can be mental

Checksheets

What causes problems?

Visually describe how things can go wrong

Cause-and-effect diagrams



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Often called the Fishbone Diagram

Offer opportunity for improvement

Opportunity flow diagrams

Control charts



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Allows for seeing if processes exit control limits, if they are you know you have an issue

Established in 1987 by Department of Commerce

Goal is to help companies review and structure their quality programs

Has requirement that suppliers demonstrate they are measuring and documenting their quality

practices

Malcolm Baldrige National Quality AwardNew Trained Employee

Green Belts

Trained Employee as he gains experience

Usually lead a Six-Sigma team

Black Belt

In depth training in improvements

Receive Statistical tools & Training

Master Black Belt

Corporate Training Creates:

SQC methods do not prevent defects

Defects arise when people make errors

Make sure to document everything that occurs

Successive check1.Self-check2.

Source inspection3.

Defects can be prevented by providing workers with feedback on errors

Shingos argument:

Such as the checksheets

Checklists

Special tooling that prevents workers from making errors

Poka-Yoke includes:

ISO 9000 and ISO 14000

Adopted in 1987

More than 160 countries

Series of standards agreed upon by the International Organization for

Standardization (ISO)

A prerequisite for global competition?

These organizations are only created to create these standards

Certification is done by other organizations

They do not audit or certify

The entire auto industry utilizes this

ISO 9000 an international reference for quality, ISO 14000 is primarily concerned

with environmental management

You can do it yourself by checking your firm against standards

A customer can audit the supplier

An certified outside organization can qualify

To standardize

Next we went over the quiz

Next we went over Chapter 9A PowerPoint

Learning objectives for 9A

Explain what statistical quality control is.1.

Calculate the capability of a process.2.

Understand how processes are monitored with control charts.3.

Recognize acceptance sampling concepts.4.



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variation that is inherent in the production process

Example: a molding process that always leaves burrs or flaws on a molded item

Process is in "control"

Common variation:

caused by factors that can be clearly identified and possibly managed

Example: a poorly trained employee that creates variation in finished product output

Process is "out of control"

Assignable variation:

Variances must be kept within tolerance levels

Lower Tolerance Limits Upper Tolerance Limits

This is where you want to be an are always striving to get to

6

Cp = UTL - LTL

Cp is capability



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Better then the original process

Capability Index

3

X-UTLor

3

LTLXmin=Cpk

Capability index (Cpk) shows how well parts being produced fit into design limit specifications

XUTLZ

XLTLZ UTLLTL

Also useful to calculate probabilities

Lower limit of 55 psi, upper limit of 65 psi

Designed for an average of 60 psi

Sample mean of 61 psi, standard deviation of 2 psi

Data

Calculate Cpk

6667.06667.0,1min

236165,

235561min

3,

3min

xUSLLSLxCpk

Example

Defective

Defective

55

6061

65

Probability (X > 65)

Probability(X -61/2 > 65-61/2)

Probability (Z > 2)

*** can be calculated in Excel

0.02275

Probability

02410.002275.000135.0)2or3(

02275.0)2(

22

6165

psi65thanMore

00135.0)3(

32

6155

psi55thanLess

ZZP

ZP

XXZ

ZP

XXZ

Example of probability. See chapter 9A PowerPoint



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6667.06667.0,1min

23

6165,

23

5561min

3,

3min

xUSLLSLxCpk

02410.002275.000135.0)2or3(

02275.0)2(

22

6165

psi65thanMore

00135.0)3(

32

6155

psi55thanLess

ZZP

ZP

XXZ

ZP

XXZ

Lower control limit (LCL) =

n

3

Upper control limit (UCL) =

n

3

for LCL UCL

Sample mean

( )

Sample range

(R)

RAx 2 RAx 2RD3 RD4

mba operations and supply chain management lecture notes 2

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