Term
|
Definition
| the terminal management function |
|
|
Term
|
Definition
Which business process?
Inputs: preventative or feud forward
Conversion: concurrent control
Output: feedback |
|
|
Term
|
Definition
Which business process?
Inputs: establishes standards to prevent problems
Conversion: measures the activity when performed
Output: measures the final activity- what impacts the customer? |
|
|
Term
|
Definition
| comes from within the person and serves to regulate personal behavior |
|
|
Term
|
Definition
| includes quality control, quality checks, inspections and rewards systems |
|
|
Term
| controlling influences EVERYTHING |
|
Definition
| it is done even when you put together a job description; even when you purchase raw materials |
|
|
Term
| steps in the control process |
|
Definition
1) set performance standards
2) measure performance
3) compare actual performance to standard
4) take corrective action if necessary |
|
|
Term
| set performance standards |
|
Definition
| set realistic measures to evaluate results; choosing the wrong measure leads to unwanted extremes |
|
|
Term
|
Definition
| quantify and record activity; complex activity; requires consistency |
|
|
Term
| compare actual performance to standard |
|
Definition
| measure the discrepancies and communicate them; must use good judgment to report info to appropriate parties |
|
|
Term
| take corrective action if necessary |
|
Definition
| do nothing, resolve the problem, or revise the standard; must be open-minded and ready to make necessary changes |
|
|
Term
|
Definition
| a unit of measurement used to evaluate results |
|
|
Term
| examples of Quantitative standards |
|
Definition
| cost of sales, profit, time |
|
|
Term
| examples of qualitative standards |
|
Definition
| attitude, emotional response, perspective |
|
|
Term
|
Definition
| indicates the size of the discrepancy b/t performance standards and actual results |
|
|
Term
|
Definition
| a plan, expressed in numbers, for allocating resources |
|
|
Term
| EVA (Economic Value Added) |
|
Definition
| measures how much more (or less) a company earns in profits than the minimum amount its investors expect it to earn (perception an investor has: 20-30%) |
|
|
Term
|
Definition
a concept and software for business analysis and control
1) customer satisfaction
2) internal processes
3) innovation and improvement activities
4) financial measures |
|
|
Term
|
Definition
| quality, employee skills, and productivity |
|
|
Term
|
Definition
| learning and growth of employees |
|
|
Term
|
Definition
| profitability, growth, shareholder values |
|
|
Term
|
Definition
| priority is taking care of the customer |
|
|
Term
| characteristics of effective controls |
|
Definition
1) accepted by employees
2) relevant, timely, and meaningful
3) diagnostic by design
4) self-administering
5) consistent w/other controls already in place
6) flexible, allowing for random variations
7) cost effective |
|
|
Term
|
Definition
| In Six Sigma, what are the acceptable amount of defects per million? |
|
|
Term
| how we arrive at six sigma level |
|
Definition
1) identify the CTQ's
2) define defect opportunities
3) look for defects in products or services
4) arrive at DPMO
5) convert DPMO to sigma level
--> defects per million of opportunity |
|
|
Term
| CTO (Critical to Quality) |
|
Definition
| characteristics or the customer requirements for a product or service |
|
|
Term
| define defect opportunities |
|
Definition
| any step in the process where a defect could occur in a CTQ |
|
|
Term
| look for defects in products or services |
|
Definition
| count defects or failures to meet CTQ requirements in all process steps |
|
|
Term
| defects per million opportunities |
|
Definition
|
|
Term
| convert DPMO to sigma level |
|
Definition
| use the sigma table to ___ |
|
|
Term
|
Definition
Measure
Analyze
Improve
Control |
|
|
Term
| six sigma black or green belt |
|
Definition
| who leads the team to help identify root causes of defects and/or variation in an existing process (or product) and then improve and control that process |
|
|
Term
|
Definition
|
|
Term
| defects per million opportunities |
|
Definition
|
|
Term
| measure, analyze, improve, control |
|
Definition
|
|
Term
|
Definition
| In ___, analysis is performed on all aspects of the business from the raw materials coming in, to the process of production or service delivery, to changing customer needs |
|
|
Term
| Suppliers, Input, Process, Output, Customer |
|
Definition
|
|
Term
|
Definition
1) physical
2) H.R.
3) informational
4) financial
5) structural
6) cultural |
|
|
Term
| The Shewhart Cycle (aka the Deming Cycle) |
|
Definition
1) plan
2) do (experimental run)
3) study (check used in book)
4) act |
|
|
Term
|
Definition
| Ford spent $1 billion developing the mustang |
|
|
Term
|
Definition
| Japanese will make a few tests for the market and focus to reach customer needs |
|
|
Term
|
Definition
| create ____ towards improvement; replace short-term reaction with long-term planning |
|
|
Term
|
Definition
| adopt a new philosophy; the implication is that management should actually adopt his philosophy, rather than merely expect the workforce to do so |
|
|
Term
|
Definition
| cease dependence on inspection; if variation is reduced, there is no need to inspect items for defects b/c there wont be any; eliminate variations in processes before made |
|
|
Term
| don't buy on the price tag alone |
|
Definition
| move towards a single supplier for any one item; multiple suppliers mean variation b/t feedstocks; having a supplier means developing a relationship that will foster quality and reliability |
|
|
Term
|
Definition
| improve constantly and forever; constantly strive to reduce variation |
|
|
Term
|
Definition
| institute training on the job (creates less errors); if people are inadequately trained, they will not all work the same way, and this will introduce variation and error |
|
|
Term
|
Definition
| supervision is quota- and target-based- while ___ is helping the worker and machines to perform at their best ability to create quality parts; keeps people on the same level by eliminating quotas |
|
|
Term
|
Definition
| employee will work to satisfy boss, not quality production; management by fear is counterproductive in the long-term b/c it prevents workers from acting in the organization's best interest |
|
|
Term
| break down barriers b/t departments |
|
Definition
| internal customer; each department serves not only management, but the other departments that use its input |
|
|
Term
|
Definition
| it's not people make most mistakes- it's the process they are working within; harassing the workforce w/o improving the processes they use is counterproductive |
|
|
Term
| Method- eliminate management by objectives |
|
Definition
| focuses on objectives, not quality production; production targets encourage the delivery of poor quality goods |
|
|
Term
|
Definition
| remove barriers to pride of workmanship; performance appraisals create a win-lose environment instead of a win-win environment; at the end of year employee has no consistent feedback |
|
|
Term
|
Definition
| institute education and self-improvement; remember that there is no shortage of good people; shortage exists at the high levels of knowledge; this is true in any field; company grows, more capacity |
|
|
Term
| accomplish the transformation |
|
Definition
| the transformation is everyone's job; management and employees must take on the 14 points wholeheartedly; a lifelong commitment towards continual improvement is needed with everyone working towards a common goal |
|
|
Term
| TED (Technology Education and Design) |
|
Definition
wise people know when to ignore the rules
1) to serve other people
2) they are made, not born (experience) |
|
|
Term
|
Definition
| better in short-run, but bad in long-run; war on wisdom |
|
|
Term
|
Definition
| 2 reasons to do the same thing (not always good); demoralized activity |
|
|
