Page 87 - DMGT206_PRODUCTION_AND_OPERATIONS_MANAGEMENT

Production and Operations Management

Notes Self Assessment

Fill in the blanks:
12. Reduced variation makes the process more predictable with process output closer to the
desired or ……………… value.

13. A checklist is a ……………… used to record the frequency of occurrence of certain product
or service characteristic related to quality.
14. Line graphs represent data sequentially with ……………… connected by line segments to
highlight trends in the data.
15. A Pareto chart is used to graphically summarize and display the ……………… importance
of the differences between groups of data.

4.4 Summary

 Quality is a state in which value entitlement is realized for the customer and provider in
every aspect of the business relationship.
 World-class companies combine early inspection with Statistical Process Control (SPC) to
monitor quality and detect and correct abnormalities.

 Statistical Process Control uses control charts to determine if a process is within controlled
parameters.

 There can be two types of control charts representing the two types of sampling which are
Control charts for variables, and Control charts for attributes.
 The R chart is developed from the ranges of each subgroup data, which is calculated by
subtracting the maximum and the minimum value in each subgroup.
 In the case of variables, control of the process average or mean quality level is usually
determined with the control chart for means (µ), or the X bar chart.

 The c-chart is useful where the opportunity for defects is large while the actual occurrence
is small.
 The ‘p’ chart is used to control the fraction defective in the output of an operation while the
operation is being performed.
 Two common methods to capture the data are (a) checklists, and (b) tally charts.
 A Pareto chart is used to graphically summarize and display the relative importance of the
differences between groups of data.

4.5 Keywords

Hard Attributes: These are those attributes that must be met by the delivered product or service
if it is to be considered satisfactory.
Operating Characteristic Curves (OCC): Curves drawn on certain parameters that determine
the sampling plan that will meet the specified performance requirements.

Quality: It is a state in which value entitlement is realized for the customer and provider in
every aspect of the business relationship.
Statistical Process Control: Control that monitors quality, and detects and corrects abnormalities
through sampling based on the principles of the Central Limit Theorem.

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