WGU Operations and Supply Chain Management - C720 Study Guide

WGU Operations and Supply Chain Management - C720 Study Guide Leave the first rating Students also studied Terms in this set (209) Social SciencesBusinessBusiness management Save Basic Training Manual for Healthcar...Teacher 48 terms m8524209Preview WGU D351 Functions of Human Res...Teacher 319 terms wambuimorgan Preview MGMT 4660 Exam 3 Teacher 178 terms joshuawesonga93 Preview B101 wi Teacher quiz TeamworkTeamwork in operations benefit the customer when coordinated decisions within an organization produce high quality products that customers value. 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.Product and process designProduct and process design are 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.Common goalsMost organizations develop common goals during the budgeting and planning process, which are done annually.Most common type of organizationMany 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 decisionmaking 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." Organizational focus pointsOrganizations need to focus on how a decision affects not just profitability, but also 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.VIRALVIRAL= Value 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. Strength, Weakness, Opportunity and Threat Key processes organizations must have:Strategy development, product development, development of systems to produce services and goods, and order fulfillment to leverage impact.Systems developmentKey to meeting strategic goals. Resources include: people, facilities, equipment, materials, and energy.Process redesignFacilitates 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 FormulaProductivity = Output / Input. Change in productivity = (new productivity - old productivity) / old productivity.Labor Productivity FormulaLabor productivity = Quantity or value of units produced divided labor hours or labor cost.QualityDetermined by the customer and how the customer will use a product.

Used to judge service quality:Reliability- ability to perform the promised service dependably and accurately.Responsiveness- willingness to help customers and provide prompt service.Assurance- knowledge and courtesy of employees and their ability to convey trust and confidence.Empathy- provision of caring, individualized attention to customers.Tangibles- appearance of physical facilities, equipment, personnel, and communication materials.Factors that determine quality for goods:Performance- primary operating characteristic of a product Features- secondary characteristics that supplement the product's basic functioning.Reliability- length of time a product will function before it fails or the probability it will function for a stated period of time.Conformance- degree to which a product's design and operating characteristics match pre-established standards.Durability- ability of a product to function when subjected to hard and frequent use.Serviceability- speed, courtesy and competence of repair.Aesthetics- how a product looks, feels, sounds, tastes, or smells.Perceived quality- image, 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 ShewhartFather 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:

a.1. Create constancy of purpose toward improvement of product and service. Aim to become competitive and to stay in business, and provide jobs.

• Adopt the new philosophy.
• Cease dependence and inspection to achieve quality.
• End the practice of awarding business on the basis of price tag.
• Improve constantly and forever the system of production and service.
• Institute training on the job.
• Institute leadership.
• Drive out fear so everyone may work effectively for the company.
• Break down barriers between department.
• Eliminate slogans, exhortations, and targets for the workforce asking for zero

defects and new levels of productivity.

• Eliminate work standard on the factory floor. Substitute leadership. Eliminate

management by objective.

• Remove barriers robbing the hourly worker of his right to pride of

workmanship.

• Institute a vigorous program education and self-improvement.
• Put everybody in the company to work to accomplish the transformation.

Deming's basic premise:Systems, not employees cause defects.

DemingDeming 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.Juran believed 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"