Operations Management: MRP and MPS Concepts

A computer system for managing inventory and scheduling orders for items whose demand depends on other items.

Components of finished products (raw materials, parts, subassemblies) whose demand is tied to the production of the final product.

A plan showing the quantity of finished products to be produced and when.

A method of calculating the needed materials to build a product by breaking down the final product into its components and determining when to order resources.

The total amount of material needed to meet the production schedule, before considering existing inventory.

The amount of material needed to be ordered from outside after adjusting for existing inventory.

The data needed to run an MRP system, including the production schedule, parts lists, and inventory status.

The results of the MRP process, which determines the quantities and timing of components needed for production.

Understanding organizations as interconnected systems of functions working together, considering the psychology of people involved, recognizing process variations, and basing decisions on facts and data.

Quality problems translate to costs. Poor quality negatively affects profitability.

Fluctuations in outputs of a process caused by various factors, categorized into common causes (inherent) and special causes (external).

Preparing to meet quality goals by understanding customer needs and designing products for those needs.

Ensuring quality goals are met during operations by continually monitoring and correcting deviations.

A process focused on surpassing established quality levels and achieving even greater performance

Recognizes an organization as a system with interconnected components working together to achieve goals.

A method of managing quality focused on quality planning, control, and improvement; product quality viewed as 'fitness for use' as seen by the customer.

The process of fixing a service mistake to restore customer satisfaction. It emphasizes speed and effectiveness in rectifying problems.

Promises about the quality and performance of a service, providing a clear standard for customer expectations and a mechanism for feedback.

A service guarantee without any conditions or restrictions, making it easy for customers to claim and receive satisfaction.

A service guarantee that is clearly written and easily understandable by customers.

A service guarantee that addresses important aspects of the service, relevant to customer needs and concerns.

A service guarantee that has a simple and convenient claims process.

A strategic planning method that aligns all levels of an organization around a shared vision, using a cycle of planning, implementing, checking, and acting.

Key components of Hoshin Planning include establishing quality policies, defining quality goals, deploying these goals throughout the organization, creating plans to meet goals, ensuring adequate resources, measuring progress, reviewing performance, and providing ongoing training.

Planning and administrating activities to achieve high quality in business processes, identifying improvement opportunities, and ultimately aiming for customer satisfaction.

A method of monitoring processes for continuous improvement by using statistical tools to identify and control variations.

Devices or methods designed to prevent defects from occurring in the production process.

Essential processes for running the business and achieving a competitive advantage. (Examples: Design, Production)

Processes important to an organization's value creation, employee needs, and daily operations. (Examples: Human Resources, Accounting)

Reasons why Total Quality Management (TQM) efforts might not achieve their intended goals.

Examples of issues that contribute to TQM implementation failures: lack of focus on core competencies and outdated organizational cultures.

Requires total integration of TQM into day-to-day operations. Key elements include integrity, ethics, trust, training, teamwork, communication, and recognition.

Methods used to control, measure, and improve processes. These techniques focus on ensuring repeatability and measurability for better efficiency.

The person or team responsible for the performance of a specific process. They have the authority to manage and improve it.

The act of ensuring a process meets its requirements and taking corrective action when necessary.

A framework that defines and establishes an organization's quality policy and objectives. It involves documenting and implementing procedures to achieve these goals.

A set of international standards for quality management systems. They provide a framework for organizations to ensure their products and services meet customer requirements.

Continually refining and enhancing processes to improve value creation and efficiency. It's a constant pursuit of better performance.

A production system that aims to produce goods only when needed. It relies on zero defects and continuous improvement to operate effectively.

A collection of standards related to quality management systems that provide guidelines for achieving, maintaining, and improving quality.

ISO certification can improve product quality, enhance market credibility, boost customer confidence, increase market opportunities, and help a company compete effectively.

ISO 9000 explains fundamental quality concepts and provides guidelines for choosing and applying specific ISO standards, like ISO 9001.

These principles serve as a framework for effective quality management. They include customer focus, leadership, engagement of people, process approach, improvement, evidence-based decision making, relationship management, and achieving results.

Some key standards within the ISO 9000 series include ISO 9001 (quality management systems), ISO 9002 (quality assurance for production, installation, and servicing), and ISO 9003 (quality assurance in final inspection and testing).

ISO is a specialized agency that develops and publishes international standards, including those for quality management. It consists of national standards bodies from various countries.

ISO 9004 acts as a guide for companies in implementing and applying quality management principles in a way that aligns with the ISO 9000 framework.