OM 300 1st Edition Exam 2 Study Guide Chapters 6 9 Chapter 6 Managing Quality Different Views of Quality this impacts a Company Reputation b Product Liability c Global Implications Cause and Effect Diagrams 4 M s Manpower Machinery Materials and Methods Six Sigma Two Definitions 1 Statistical process that is 99 9997 capable 3 4 defects per million opportunities 2 Program designed to decrease defects and costs save time and increase customer satisfaction DMAIC Approach Defines Measures Analyzes Improves and Controls Techniques for Employee Empowerment Build open communication networks that include employees Develop supportive supervisors that are accessible Give responsibility to employees Develop high morale atmosphere Create formal team structure within different groups Chapter 6 Supplement Statistical Process Control C charts P Charts P chart is for discrete attribute data while C chart requires equal sample sizes for each data point Acceptance Sampling Type of quality testing used for incoming materials or finished goods does not drive quality improvement efforts Chapter 7 Process Strategy Process Strategies 1 Process Focus facilities are centered around specific activities and processes 2 Repetitive Focus high usage of modules with parts and assemblies made previously very efficient but less flexible than other strategies 3 Product Focus has a high volume but low variety of products this typically leads to high fixed costs but low variable cost 4 Mass Customization involves rapid low cost productions of goods services to meet unique customer needs and desires Chapter 8 Location Strategies FedEx Location Choice and Advantages Location Clustering retail restaurants try to locate near each other in locations that will build them up ex downtown Tuscaloosa Location Factor Rating Weighted Score Widely used due to wide variety of factors that can be assessed in the analysis Six Steps o Develop list of relevant factors key to success o Assign a weight to each individual factor o Develop a scale for each individual factor o Score each location for each individual factor o Multiply score given by weights for each factor at each location o Create recommendation based on scores Center of Gravity Method method finds the location of distribution center that minimizes distribution costs be able to calculate x and y coordinates for center of gravity method assumes cost is directly proportional to the distance volume shipped Service Firm 8 determinants of Revenue Volume 1 Purchasing power of customer drawing area 2 Service image compatibility with demographics 3 Competition 4 Quality of competition in the area 5 Uniqueness of locations 6 Physical characteristics of facilities and neighborhood 7 Operating policies of firm 8 Quality of product Chapter 9 Layout Strategies McDonald s Seven Major Innovations Largely layout decisions for competitive advantage 1 Indoor Seating 2 3 4 5 6 7 Drive through window Breakfast added to menu Children s play areas added to layout Kitchen Redesign Self Service Kiosk added 3 Separate Dining Sections a Linger zone has comfortable seating with wifi capabilities Grab and Go Zone offers tall counters and the flexible zone is specifically for kids and families Advantages of Work Cells these reorganize people machines into groups to focus on specific areas Less floor space is required Reduced inventory for raw materials and finished goods Increased sense of employee participation Increased equipment machinery usage Investment in equipment machinery decreased Takt Time used for staffing and balancing work cells Takt Time Total Work Time Available Units Required