Ch 12

What are the analytical tools for Six Sigma?

There are eight analytical tools for Six Sigma:

Check Sheets, Cause and Effect Diagram, DOE, Failure mode and effect analysis, flow charts, process control charts, run charts.


What is the Malcolm Baldrige National Quality Award and ISO 9000?

The Baldrige National Quality Award (formally known as the Malcolm Baldrige National Quality Award or MBNQA) is based on the Baldrige Performance Excellence Program.


What are the dimensions of design quality?

1 Performance.

2 Features.

3 Reliability. .

4 Conformance.

5 Durability.

6 Serviceability.

7 Aesthetics.

8 Perceived Quality.


What are the types of cost of quality (COQ)?

Prevention costs, Appraisal costs, internal failure costs, external failure costs, cost of quality and organizational objectives,


What is the failure mode and effect analysis (FMEA) in Six Sigma projects?

Failure modes and effects analysis (FMEA) is a step-by-step approach for identifying all possible failures in a design, a manufacturing or assembly process, or a product or service. “Failure modes” means the ways, or modes, in which something might fail. … FMEA is used during design to prevent failures.


What is the design of experiments (DOE)?

Design of experiments (DOE) is a systematic method to determine the relationship between factors affecting a process and the output of that process. In other words, it is used to find cause-and-effect relationships.


Ch 13

What evidences lead us to or not to investigate a process control chart?

Control charts are running records of the performance of the process and, as such, they contain a vast store of information on potential improvements.


What value are people interested in in an R-chart?

In statistical quality control, the and R chart is a type of control chart used to monitor variables data when samples are collected at regular intervals from a business or industrial process.


How to interpret Cpk?

The Cp and Cpk indices are the primary capability indices. Cp shows whether the distribution can potentially fit inside the specification, while Cpk shows whether the overall average is centrally located. If the overall average is in the center of the specification, the Cp and Cpk values will be the same.


How to calculate fraction defective?

The proportion or fraction nonconforming (defective) in a population is defined as the ratio of the number of nonconforming items in the population to the total number of items in that population. The item under consideration may have one or more quality characteristics that are inspected simultaneously.


When should we use an R-chart to monitor process quality?

In a situation like tire pressures in an auto assembly plant.


When should we use a p-chart to monitor process quality?

For Grades in a freshman “pass/fail” course.



Ch 17

What is Enterprise resource planning (ERP) system?

Enterprise resource planning (ERP) is business process management software that allows an organization to use a system of integrated applications to manage the business and automate many back office functions related to technology, services and human resources.


Which are the four aspects of ERP software that determine the quality of the ERP system?

Utilization, Platform, User count, and functionality.


What is the primary goal of an ERP system?

The main purpose of ERP system is to improve productivity, and to enable easy communication with clients and partners.


What are the main functions of SAP?

SAP is also the third-largest software supplier in the world. … There are many components to the logistics functions in SAP. The components include the following SAP areas: Materials Management (MM) – the materials management component is the foundation for the logistics functions of a company.


What is CRP?

Conference room pilot (CRP) is a term used in software procurement and software acceptance testing. A CRP may be used during the selection and implementation of a software application in an organization or company.


What are the benefits of processing transactions in real time?

The Advantage TPS maintains database stability in the event of workstation or network failure. Should a workstation or the network fail during a transaction, a transaction that is being committed will finish to completion, and an uncommitted transaction will automatically be rolled back. If the file server crashes during a transaction, the Advantage TPS log files are used when the Advantage Database Server is reloaded to return the database to a known state.


What are the functions of Human Resources module in an ERP system?

Human resource management system. Human Resources Software is used by businesses to combine a number of necessary HR functions, such as storing employee data, managing payrolls, recruitment processes, benefits administration and keeping track of attendance records.


What is the formula for Average days of accounts receivable?

The formula for calculating days sales outstanding can be represented with the following formula: A low DSO value means that it takes a company fewer days to collect its accounts receivable. A high DSO number shows that a company is selling its product to customers on credit and taking longer to collect money.


Ch 20

What is the inventory holding cost?

The cost of carrying or holding inventory is the sum of the following costs: Money tied up in inventory, such as the cost of capital or the opportunity cost of the money. Physical space occupied by the inventory including rent, depreciation, utility costs, insurance, taxes, etc. Cost of handling the items.


What is the formula of computing the fixed-order-quantity total annual cost (TC)?

Total cost = Purchase cost + Ordering cost + Holding cost

TC = DC + (D/Q) S + (Q/2) H


What are the categories of manufacturing inventory?

Three Categories. A typical manufacturer will identify three types of inventory: raw materials, work in process and finished goods. Raw materials are the basic “inputs” of production — steel, wood, plastic, chemicals and anything else that gets turned into the final product.


What could be examples of a fixed-time-period inventory model?

Fixed-Order Quantity Models. Event triggered (Example: running out of stock).


How to determine the reorder point for a fixed-order quantity model?

The reorder point formula allows us to determine the safety stock (SS) needed to achieve a certain cycle service level. In general, the longer the lead times are, and the greater the variability of demand and lead times, the more SS we will need.


What are A, B, and C referred to in ABC classification?

The ABC classification process is an analysis of a range of items, such as finished products or customers into three categories: A – outstandingly important; B – of average importance; C – relatively unimportant as a basis for a control scheme.


Ch 21

What is MRP system and what are the main purposes of an MRP system?

Material requirements planning (MRP) is a production planning, scheduling, and inventory control system used to manage manufacturing processes. Most MRP systems are software-based, but it is possible to conduct MRP by hand as well. Plan manufacturing activities, delivery schedules and purchasing activities.


What are the inputs to run a MRP system? (see exhibit 21.4)

The three major inputs of an MRP system are the master production schedule, the product structure records, and the inventory status records. Without these basic inputs the MRP system cannot function. The demand for end items is scheduled over a number of time periods and recorded on a master production schedule (MPS).


What are the primary reports in an MRP system? (exhibit 21.4)

The primary inputs of MRP are a bill of materials.


What is a product tree (BOM file) for?

OM is a computer file format used by the Mac OS X installer. BOM stands for “Bill Of Materials” and is used to determine which files to install, remove, or upgrade. A bill of materials, “BOM”, contains all the files within a directory, along with some information about each file.


What are the four lot-sizing techniques?

Lot for Lot (LFL): Order the exact amount of the net requirement each period.

Single Lot: Order quantity is equal to the total requirement and only one order is to be placed.

Economic Order Quantity (EOQ): Order an EOQ or ERL amount.

Least Unit Cost (LUC): Order the net requirement for the current period or current plus next or current plus next two and so on, depending upon which gives the lowest unit cost.


Be able to calculate Economic Order Quantity (EOQ).

The Economic Order Quantity (EOQ) is the number of units that a company should add to inventory with each order to minimize the total costs of inventory—such as holding costs, order costs, and shortage costs.


What can inventory records tell us?

Manual or computer-based record of the quantity and kind of inventory (1) at hand, (2) committed (allocated) to firm-orders or to work-in-process, and (3) on order. It often also includes history of the recent transactions in each inventory item. Also called stock record.