WGU C720 Operations and supply chain managment

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C720 -

72 terms Dan TeamworkTeamwork in operations benefit the customer when coordinated decisions within an organization produce high quality products that customers value.Product designconsideration of the characteristics, features, and performance of the product.Product technologyapplication of knowledge to improve the product.Process designdescribes how a product will be made.Process technologyapplication of knowledge to improve a process

C720: OPERATIONS & SUPPLY CHANGE MANA GEMENT

- NOTES / STUDY GUIDE

TeamworkTeamwork in operations benefit the customer when coordinated decisions within an organization produce high quality products that customers value.Product and process designare crucial and relate to both the design of goods and services.Product designconsideration of the characteristics, features, and performance of the product.Product technologyapplication of knowledge to improve the product.Process designdescribes how a product will be made.Process technologyapplication of knowledge to improve a process.

Teamwork can help make improvements to products . To remain competitive in the global marketplace, teamwork should be utilized to help solve quality and productivity problems.Most organizations develop common goals during the budgeting and planning process, which are done annually.Many businesses are shifting to organization by process due to today's fast paced environment.Organizational structuresdesigned by process cross-functional lines.Cross-functionalitya unique feature important to any organization.Eliminating functional silosallows teams to share knowledge and understanding of decision-making across the organization. Decentralizing decision-making leads to more cross-functional teams.Relative advantagethe difference between the lowest cost producer and the next-lowest cost producer Ethicsa sense of what is right and wrong that guide behavior.Sustainabilityreflects the efforts organizations are expected to make to balance their interconnected obligations to economic viability, the societies in which they operate, and the natural environment - the "triple bottom line." Organizations need to focus on how a decision affects profitability, employees, the community, and the environment, in the long and short term.Competitive advantagea capability that customers value that gives an organization an edge against its competition.VIRALValue to consumers, it should be Inimitable (not easily imitated), Rare, and an organization should have the Aptitude and Lifespan to earn appropriate returns on the advantage.SWOT Analysisassists in planning to achieve objectives.Key processesorganizations must have: strategy development, product development, development of systems to produce services and goods, and order fulfillment to leverage impact.Systems development key to meeting strategic goals. Resources include: people, facilities, equipment, materials, and energy.Process redesign facilitates working toward a common goal in organizations.

Productivitya mathematical calculation. It is the ratio of the outputs achieved divided by the inputs consumed to achieve those outputs. Productivity Output / Input. Change in productivity = (new productivity - old productivity) / old productivity.Labor productivityQuantity or value of units produced divided labor hours or labor cost. Labor Productivity = Quantity or Value of Units Produced / Labor Hours or Labor Costs.Qualityis determined by the customer and how the customer will use a product.to judge service quality:Reliability- ability to perform the promised service dependably and accurately.Responsiveness- willingness to help customers and provide prompt service.Reliabilityability to perform the promised service dependably and accurately.Responsivenesswillingness to help customers and provide prompt service.Assuranceknowledge and courtesy of employees and their ability to convey trust and confidence.Empathyprovision of caring, individualized attention to customers.Tangiblesappearance of physical facilities, equipment, personnel, and communication materials.

Factors that determine quality for goods:

Performanceprimary operating characteristic of a product Featuressecondary characteristics that supplement the product's basic functioning.Reliabilitylength of time a product will function before it fails or the probability it will function for a stated period of time.Conformancedegree to which a product's design and operating characteristics match pre- established standards.Durabilityability of a product to function when subjected to hard and frequent use.Serviceabilityspeed, courtesy and competence of repair.Aestheticshow a product looks, feels, sounds, tastes, or smells.Perceived qualityimage, advertising, or brand name of a product.Failure costscan be internal to the organization (defects found before product reaches consumer) or external after reaching the customer (cost of warranty repair work,

handling complaints, or replacing products). Failure costs can lead to: lost

goodwill, legal liability if someone is injured/killed, and even loss of customers.

Appraisal costsinvestment in measuring the quality and assessing customer satisfaction. Appraisal costs include: costs involved with customer satisfaction surveys, hiring individuals to inspect property at a hotel chain, or testing computers to ensure they will operate as intended.Prevention costsput a stop to the quality problem. Prevention costs include: activities such as employee training, quality control procedures or other activities designed to prevent product defects.Statistical process control (SPC)the use of statistical methods to determine when a process that produces a good or service is getting close to producing an unacceptable level of defects. Walter Shewhart - father of statistical quality control. Founding father of statistical process control. Developed the P-D-C-A (Plan Do Check Act) which came to be known as Shewhart Cycle, and also the Deming Wheel. However, Deming preferred to call it the Shewhart Cycle. Deming later revised it to P-D-S-A (Plan Do Study Analyze) because he felt "check" emphasized inspection over analysis.Deming's 14 points for transformation of management Deming's basic premise: systems, not employees cause defects. Deming emphasized the importance of training employees to use tools of statistical process control.Joseph Juran1950s began his "cost of quality" approach, which stressed the desirability of lowering costs associated with prevention. Juran also suggested the Pareto Principle (he named it after Italian economist Vilfredo Pareto). Pareto Principle is known as 80/20 Rule (80% of effects come from 20% of causes). Pareto Principle has become standard term to describe any situation where a relatively small percentage of factors are responsible for the substantial percentage of effect.Juranbelieved that product quality means "fitness for use" which gives the customer the best value. Emphasized management's responsibility for ensuring quality.

Emphasized need for continuous improvement through 3 quality elements:

planning, control, improvement.Quality planning (Juran)the development of products and services that appeal to the ever-changing customer wants and needs.Quality Control (Juran)Inspection and control functions revolve around understanding the customer's perception of fitness of use.Quality improvement (Juran)The elimination of waste and errors is something that must be led by leadership of a firm.Crosbystated that all errors must be eliminated. Believed that failure costs were much higher than companies thought and creating a zero-error environment was key."Do it right the first time" Taguchiused "Robust design" to ensure the highest quality product or procedure. Quality must be designed into the product. Quality must be designed into a product.Ishikawadeveloped a diagram to show cause and effect relationships. (Fishbone diagram).Teamwork is essential - quality circles.