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information such as machine scrap rates for relevant past periods in a highly visual format charts graphs or tables the objective is a factbased visual presentation of the problem example the section might show a histogram of scrap rates in different departments and in different processes milling turning drilling grinding in the machine shop in part to show that the report preparer is being objective and seeing the big picture objective countermeasures 2018 apics the statement should meet two criteria clearly defined target state with measurement criteria for determining if the goal has been reached for example reduce scrap rate in causeandeffect the current state needs to be investigated to find the root cause of the analysis problem noted through the use of the five whys method or fishbone analysis use of these methods validates that cause and effect have been investigated if several causes appear to contribute tests should cases the root cause may be identified and documented in this section this section identifies and explains the selection of countermeasures for suspected root causes it documents the schedule and results of the testing of countermeasures some suspected causes such as material hardness might be rejected as within specifications 4185 cpim version 60 2018 edition module eacuution and control of uperations i report section description and examples check this section should show that the improvement team has used the standard for comparison measurement criteria established in the objective statement in addition it should hone in on the root or main causes of the problem such as high scrap rate in the machine shop by linkage between the countermeasure taken and the observed effect such as the effect of a machine adjustment on a certain date on reducing the scrap percentage in the period thereafter again action plan this section corresponds to the action step of the pdca cycle it documents steps that need to be taken to sustain the improvement such as establishing a new machine adjustment preventive the machines in the long run this section identifies other departments itisa festa approach build around the pdca tounderstand the problemsolving a3 report process is to understand the power the a3 report is an important visual communication link between workers and brainstorming while a simple technique brainstorming is often overlooked the apics dictionary 15th edition defines it as follows a technique that teams use to generate ideas on a particular subject each person on the team is asked to think creatively and write down as many ideas as possible the ideas are not discussed or reviewed until after the brainstorming session brainstorming often relies on a facilitator to ensure that all team members have an opportunity to participate brainstorming is a subprocess that is embedded in many of the other quality tools it can be used with bothsmall and large groups nominal group technique a tool that is often used to support the seven basic tools of quality is the nominal group technique debe in the dictionary as follows 2018 apics 4186
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that is embedded in many of the other quality tools it can be used with bothsmall and large groups nominal group technique a tool that is often used to support the seven basic tools of quality is the nominal group technique debe in the dictionary as follows 2018 apics 4186 cpim version 60 2018 edition ail rights reserved printed on 100 postconsumer waste recycled paper a technique similar to brainstorming used by teams to generate ideas ona particular subject team members are asked to silently come up with as many ideas as possible writing them down each member is then asked to share one idea which is recorded after all the ideas are recorded they are discussed and root cause analysis root cause analysis is a supporting tool used within control charting causeandeffect diagramming pdca and dmaic according to the dictionaryroot cause analysis is an analytical method to determine the core problems of an organization process product market and so forth the steps to conduct a root cause analysis are 2 establish cause categories 3 identify specific potential causes 2018 apics all rights reserved 4187 cpim version 60 2018 edition printed on 100 postconsumer waste recycled paper progress check the following questions are included asstudy aids and may not follow the format used for questions in the apics cpim examination read each question and respond in the space provided answers and page references follow the progress check questions a employee empowerment c process improvement d selfdirected work teams a manager who is committed to employee involvement typically will a inform employees of decisions b tell decisions to employees c seek employee input on decisions d limit employee decisions who must be involved with continubus improvement efforts a upper management b production line workers c upper and middle management a holding nonmanagerial employées responsible for their mistakes b providing managers with absolute authority over nonmanagerial employees c giving nonmanagerial employees the responsibility to make decisions d hiring nonmanagerial and managerial employees based on an objective performance test asmall group of people who normally work as a unit and who meet frequently to uncover and solve problems concerning the quality of poems produced process capability or process control is most likely called a a crossfunctional team b quality circle c business process quality team d selfdirected work team an effective appraisal and rewards program b uses group and individual appraisals and rewards c involves many appraisers 2018 apics 4188 cpim version 60 2018 edition all rights reserved printed on 100 postconsumer waste recycied paper the most effective results of training are a changes in worker behavior performance and flexibility b the ability to organize schedule and plan work c improvement in teamwork quality and offering of ideas d work standardization and more efficient performance of specialized and repetitive tasks which of the following best represents evidence of upper management leadership at the strategic a attending quality meetings b creating a vision of a total quality culture c inspecting and checking outgoing products
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quality and offering of ideas d work standardization and more efficient performance of specialized and repetitive tasks which of the following best represents evidence of upper management leadership at the strategic a attending quality meetings b creating a vision of a total quality culture c inspecting and checking outgoing products d conducting quality system audits a they have knowledge of what to accomplish and performance against goals and a democratic style of leadership is used b they have knowledge of performance against goals and a means of regulating performance and an authoritative leadership style is used c they have knowledge of performance against goals and what to accomplish and a means of regulating performance d acombination of a democratic pacesetting and coaching leadership style is used causeandeffect analyses are made with the help of which of the following a fishbone chart c scatter chart d pareto chart a classify quality problems as either external or internal b determine relationships between variables c rank causes of quality problems from the most to least significant d eliminate visual signs that alert workers to defective parts the control phase of dmaic may include each of the following except a documenting the improved process c mistakeproofing pokayoke d implementing and monitoring process controls the following are valid activities of the plan step in pdca except for a developing a measurement plan with smart goals b analyzing main and root causes of process and product variations 2018 apics 4189 cpim version 60 2018 edition all rights reserved er biin00 300 jeexcorsumer were recycled panei which of the following statements is true of the check step in pdca a it suggests changes needed before fullscale implementation b it takes permanent countermeasures to improve outcomes and process results c itmakes temporary fixes to enable fullscale implementation which of the following most fully describes the improve phase of dmaic a it evaluates alternative remedies b it evaluates alternative remedies and designs a remedy d it evaluates alternative remedies and designs and tests a remedy which characteristic best describes be problemsolving a3 report a itis aligned with both the pdca and six sigma dmaic methods d itisastructured topdown method for continuous improvement which of the following is the least liktely use of pareto chart analysis in dmaic b inthe analyze phase tabulating the percentage of total shutdown time accounted for by each of 11 steps required to shut down in order to remove a hot mold from the molding machine c inthe improve phase determining the relationship between time in storage and loss of potency d inthe measure phase identifying the vital few categories of symptoms of errors in sales order documentation which of the following least applies to understanding the situation in the pdca improvement cycle b standing alone on the shop oat for a long period of time observing and thinking critically c knowledge of the key principles of lean manufacturing such as standard work procedures level flow and ontime delivery of supplies d looking for root
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understanding the situation in the pdca improvement cycle b standing alone on the shop oat for a long period of time observing and thinking critically c knowledge of the key principles of lean manufacturing such as standard work procedures level flow and ontime delivery of supplies d looking for root causes of meee effects which of the following most fully describes the analyze phase of dmaic a it develops the data collection and analysis plan c it designs alternative remedies d it develops a list of proven root causes 2018 apics 4190 cpim version 60 2018 edition all rights reserved 5 printed on 100 postconsumer waste recycled paper progress check answers 1 b answer b is the best answer because the primary benefit of crosstraining is wasted unless employees have the opportunity to apply the skills they have learned this opportunity is provided primary benefit answers c and d are very indirect beneficiaries of crosstraining p 4150 2 c the manager who is committed to employee involvement will seek employee input on decisions employee involvement p 4138 3 d continuous improvement must involve everyone including managers and workers p 4159 4 c empowerment is a condition whereby employees have the authority to make decisions and take action in their work areas without prior approval p 4140 5 ba quality circle also called a kaizen circle or a workforce team is a small group of people who normally work as a unit and who meet frequently to uncover and solve problems concerning the quality of items produced process capability or process control quality circle members typically select the problems and are given training in problemsolving techniques answer a is incorrect because a crossfunctional team includes members from different departments answer c is incorrect because business process quality teams are crossfunctional teams that improve the quality of crossfunctional processes answer d is incorrect because selfdirected work teams are permanent teams that have operational responsibilities and a much higher level of autonomy than quality circles p 4153 an effective appraisal and rewards program and answer d s inclusion of more efficient performance of specialized and repetitive tasks describes results that are not conducive to the state of worker selfcontrol p 4146 8 b creating a vision of quality is evidence of upper management leadership at the strategic level performance against goals and a means of regulating performance answers a and b are incorrect because using a democratic or authoritative leadership style would not enable workers to be responsible for quality answer d is incorrect even though some of the characteristics of certain styles such as democratic group commitment to common goals pace setting and coaching alignment of personal with organizational goals are supportive of a workercontrollable environment they alone are not enough to enable a worker to be held accountable for quality 2018 apics 4191 cpim version 60 2018 edition all rights reserved printed on 100 postconsumer waste recycled paper effect it also is referred to as the ishikawa diagram because kaoru ishikawa
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of a workercontrollable environment they alone are not enough to enable a worker to be held accountable for quality 2018 apics 4191 cpim version 60 2018 edition all rights reserved printed on 100 postconsumer waste recycled paper effect it also is referred to as the ishikawa diagram because kaoru ishikawa developed it it also is called the fishbone diagram because the complete diagram resembles a fish skeleton answers b c and d are incorrect because although they are ways of analyzing data they are not considered causeandeffect diagrams p ei7et c a pareto chart is a graphic tool for ranking causes from most to least significant answers a b and dare incorrect and do not relate to pareto charts p 4172 the transfer of the selected remedy takes place near the end of the improve phase p 4179 of grasping the situation which thinks critically about the big picture p 4181 answer dis descriptive of the do step whose objective is to test or pilota proposed countermeasure d the improve phase typically evaluates alternative remedies developed in the analyze phase designs a remedy after some experimentation and tests the remedy under conditions that simulate the real world therefore answers b and c are only partly true p 4179 b the problemsolving a3 report is based on collaboration and visual communication among team members to build consensus for the improvements being design and developed answers c and dare incorrect the report author may befa worker welltrained in a3 problem solving and the purpose answer a is not correct because the a3 report and process were developed in a pdca environment were applied answer c is the least tkely because the need for correlation analysis is best met by tools such as scatter diagrams p ai a relying on written reports is given low priority in lean though data are held in utmost regard there is a premium placed on going and seeing what is happening in the factory factory layouts that make production highly visible graphically presented information and evidence of key d a primary deliverable of the analyze phase is a list of proven root causes based on a root cause 2018 apics 4192 cpim version 60 2018 edition all rights reserved printed on 100 postconsumer waste recycled paper section d design concepts and tradeoffs after completing this section students will be able to describe the local design principles for creating an efficient production environment identify the design options and tradeoffs in the design configurations describe how employee teams can use quality tools and principles to make process and product design improvements explain how an organization can practice good corporate responsibility both locally and globally describe how relationships with suppliers can be optimized for the long term manufacturing environment organization gets here it begins with senior management and organizational leaders determining the business strategy and product offerings from there they ve identified customer lead time expectations and based on that selected the appropriate manufacturing environment once they ve completed these
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can be optimized for the long term manufacturing environment organization gets here it begins with senior management and organizational leaders determining the business strategy and product offerings from there they ve identified customer lead time expectations and based on that selected the appropriate manufacturing environment once they ve completed these items they re ready to consider the design concepts covered in this section including the location of production lines and inventory in conjunction with supplier deliveries design principles are an important component of a businesss overall operations both in terms of maximizing the effectiveness of the production process and meeting the needs of employees design principles are classified as product design organizational or plant layout and process design and as seen in exhibit 493 they are applied at three levels exhibit 493 design principle levels design principles affecting the organizations relationship to the physical environment and society including local communities design principles guiding collaborative interactions with up and downstream suppliers and customers design principles shaping the internal activities of organizations 2018 apics 4193 cpim version 60 2018 edition all rights reserved printed on 100 postconsumer waste recycled paper topic 1 principles of design concepts and tradeoffs everything starts and ends with the customer an organization s ability to satisfy its customers depends on the rigor of the design process which is where the goods or services originate all organizations must keep the customer s needs as the central component of their approach to any product process or facility design customer needs along with new product attributes current satisfaction and customer retention are all gathered through market research market research into customer needs for products is inquiry focus groups and telephone and online surveys to name a few conditions performed properly market research provides background information on the gap determine if product loyalty is strong or weak ultimately wellprepared market research will identify customer needs that can be tied to changes in specific attributes of existing products or might require new products the next step is to translate customer needs into product features using quality function siteaieaies qfd defined by the apics dictionary 15th edition as follows customer are identified and subsequently met or exceeded through the resulting product design process and the design and operation of the supporting and translation tools qfd tries to eliminate the gap between what the customer leads to a clear identification of the major requirements of the customers these exhibit 494 quality function deployment process control features customer product process needs features features market research 2018 apics 4194 cpim version 60 2018 edition all rights reserved printed on 100 posconsumer waste recycled paper section d design concepts and tradeoffs product or service or updates or modifications to that product or service it also is voice of the customer because of its purpose in aligning product design with customer requirements a structured process that relates customerdefined attributes to the product s technical features needed to support and generate these attributes this technique achieves this mapping by
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modifications to that product or service it also is voice of the customer because of its purpose in aligning product design with customer requirements a structured process that relates customerdefined attributes to the product s technical features needed to support and generate these attributes this technique achieves this mapping by means of a sixstep process 1 identification of customer attributes 2 identification of supporting technical features 3 correlation of the customer attributes with the supporting technical features 4 assignment of priorities to the customer requirements and technical features 5 evaluation of competitive stances and competitive products and 6 identification of those technical features to be used deployed in the final design forces designers to consider customer needs and the degree to which the proposed designs satisfy these needs design of a product or service with what customers desire for example if a company sets out to design a new cell phone it could use this matrix to evaluate customer requirements against possible designs as well as compare them with competitors exhibit 495 house of quality correlation matrix technical requirements hows starting relationship matrix between customer design requirements competitor a performance competitor b performance importance weighing technical priority 4195 cpim version 60 2018 edition the first step in building the house is to enter customer needs and wants often called whats and their importance which are shown in the rectangle at the left of competing products along those dimensions that analysis appears in the far right next technical characteristics or the counterparts to customer needs and wants are identified in the rectangle immediately above the relationship matrix in the middle this provides a technical response for each what the technical requirements are called hows because they represent how the firm will respond to the whats of the customer next the customer requirements are compared with the technical design requirements and assigned relationship ratings a correlation matrix the roof of the house shows the relationship between the hows again any tradeoffs must be recognized in the design effort for each technical requirement there is some assessment of the degree of difficulty to achieve this requirement and a target value is assigned some of these target values may represent significant breakthroughs in design and if achieved will produce a product that is superior to those of competitors in the marketplace the key issue here is that the customers needs and wants are linked throughout the entire process so when a customer need is recognized the product or service design processes used to support the design and controls on the process all support that the highest level of qfd translates the voice of the customer into technical product and service requirements in this topic we will examine local design principles that pertain to internal organizational processes and the selection of the appropriate engineering approach which impacts the execution system flexibility process choice and speed to market local design principles in the center and work our way out local design principles refer to principles that
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we will examine local design principles that pertain to internal organizational processes and the selection of the appropriate engineering approach which impacts the execution system flexibility process choice and speed to market local design principles in the center and work our way out local design principles refer to principles that influence the design of the internal operations and their processes within the organization 2018 apics all richte recerved 4196 cpim version 60 2018 edition printed on 100 postconsumer waste recycled paper section d design concepts and tradeoffs exhibit 496 local design principles design principles affecting the organizations relationship to the physical environment and society including local communities design principles guiding collaborative interactions with up and downstream suppliers and customers design principles shaping the internal activities of organizations as seen in exhibit 497 the principles range from meeting customer lead time exhibit 497 local design principle summary principles description meet customer lead order fulfillment strategies manufacturing environments for time expectations products must meet customer leadtime expectations for product delivery they are generally consistent with the normal time it takes to fulfill the order using the most appropriate manufacturing environment leadtime expectations for product delivery vary by type of product customers accept long lead times for engineer toorder products such as ships and buildings they expect very short lead times for mts products such as consumer packaged meet product design the processes and equipment needed to transform raw materials and quality into finished goods must meet the design and quality requirements specifications of the product on the other hand product design can anticipate the production process required and design products for ease of manufacturingassembly the required quality of equipment and process design are also important when products have narrow specification limits for product quality and very low operational risk tolerances such as turbine blades for jet engines meet product variety processes equipment and workers must have the flexibility to and flexibility accommodate product variety custom mto products such as requirements meals prepared in a fullservice restaurant require a high degree of equipment process and worker flexibility standard products such as beverages require specialized equipment dedicated to longproduction runs in a repetitive mts bottling filling operation 2018 apics 4197 cpim version 60 2018 edition iit ituibecie macmmenemoe ieeiiaies ariinatimeinaiaiit atindiiteinds principles description meet quantity and quantity and capacity requirements along with product design capacity requirements product variety mentioned above and volume have a major the product and process designs will be quite different than if the volume for a typical production run is several thousand units at fairly regular intervals in the latter the production process would be repetitive or masscontinuous production consider buying rather the decision not to make a component or subassembly relates to than making local internal design in two ways if it displaces the need for components internal capacity outsourcing it might obviate the need for process design still the outsourcer might participate in its suppliers process and product design process for critical products also for strategic reasons a
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subassembly relates to than making local internal design in two ways if it displaces the need for components internal capacity outsourcing it might obviate the need for process design still the outsourcer might participate in its suppliers process and product design process for critical products also for strategic reasons a company might redesign its processes to focus on final assembly this might be part of a buying from a highquality competitivelypriced jit supplier inventory costs would also decrease process and layout choices a critical early design decision is the choice of production processes and process layouts the choice is framed by customer expectations about order fulfillment lead times these expected lead times range from very long to very short they are a primary determinant of manufacturing environment choices which include the following engineertoorder eto maketoorder mto assembletoorder ato manufacturing environments also are naturally differentiated by product volume and variety requirements as are production processes and process layouts you may throughout the curriculum to reinforce the impact of volume and variety 2018 apics 4198 cpim version 60 2018 edition all rights reserved printed on 100 postconsumer waste recycled paper section uv design concepts and radeoffs customer lead time diverse and project exhibit 498 process and layout choices high manufacturing environments manufacturing complex t project process types intermittent tasks frequency manufacturing process layouts repeated flow because of increased competition and rapidly changing market conditions manufacturers must be flexible manufacturing capabilities must evolve to meet changes in the marketplace and customer needs these types of changes are not inexpensive and therefore should not be taken lightly they must be approved scheduled and monitored for execution before they are put into practice for example the ford motor company changed an assembly process for tail lamps due to changes in the marketplace and consumer preferences at one local plant in sandusky ohio it began with ford examining its overall production flow and looking for opportunities to become more efficient in the light of increased global competition they shifted their operation from a workerpaced line flow process to a flexible assembly system fas fas used modular design and group technology concepts which were new to ford this change impacted their entire product development process but it allowed them to stay flexible and produce the products that were in demand in a costeffective manner as market conditions change process market another example of the impact that change can have is change transactions these transactions include engineering changes and other changes to the mpc database including bill of materials routings and product specifications engineering change transactions can be very expensive and are best handled as they arise rather than a complete overhaul after production has begun 2018 apics all rights reserved 4199 cpim version 60 2018 edition other local process design considerations and tradeoffs to this point we have reviewed a number of local design principles that influence important tradeoffs or decisions that determine the choice of production process and process layouts there are six additional local design
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all rights reserved 4199 cpim version 60 2018 edition other local process design considerations and tradeoffs to this point we have reviewed a number of local design principles that influence important tradeoffs or decisions that determine the choice of production process and process layouts there are six additional local design principles to consider in push and pull lean manufacturing that warrant review including decoupling point appropriate technology and equipment coordination with distribution center andor processing center design designing a distribution or processing center environmental footprint decoupling point the decoupling point is the point in the process for example supply chain at which customer demand meets supplier inventory for mts products the decoupling point customer s required due date for custommade products such as men s suits itis raw final customer orders companies can change the decoupling point by redesigning processes to respond to changes in product volume and variety over the product life cycle for example this could involve changing from a work center to repetitive production they can manage the inventory consequences of the decoupling point with lean techniques including leveling customer demand through collaborative demand planning with customers synchronizing throughput takt time with the rate of customer demand this decreases finished goods wip and raw material inventories even though the decoupling point has not changed advantageous order fulfillment strategy in doing so it is important to remember that production becomes less synchronous the lower in a bill of material a component is appropriate technology and equipment technology and equipment choices need to fit the choice of production process flexible machines and workers are needed to meet the product variety requirements of work center processes heavy capital investment is required for dedicated and often highly specialized equipment used in line production assembly 2018 apics 4200 cpim version 60 2018 edition all rights reserved printed on 100 postconsumer waste recycled paper section vu vesign concepts and 1 radeoffs line and masscontinuous production processes high utilization rates and highvolume production runs result in low unit production costs and high production efficiency in an ideal leanbased factory however high utilization of large machinery is not necessarily the path to production efficiency maximum utilization of highly trained fast changeovers for example offset the advantages of long production runs workers are routinely crosstrained and not highly specialized they value being able to perform a wide variety of tasks use of smaller machines is more conducive to small batch production improvement in quality control and the addition or reduction of capacity in small increments when necessary process design must consider the capabilities of workers in mto environments skilled and flexible workers are needed for the lowvolume highvariety product manufacturing required in job shops in repetitive and masscontinuous production worker skills are secondary to investment in machinery and mechanized processes an ideal lean system prefers maximum utilization of highly trained workers rather than machinery as discussed in section c quality communication and continuous improvement crosstrained and empowered workers perform a range of tasks to maintain a
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and masscontinuous production worker skills are secondary to investment in machinery and mechanized processes an ideal lean system prefers maximum utilization of highly trained workers rather than machinery as discussed in section c quality communication and continuous improvement crosstrained and empowered workers perform a range of tasks to maintain a state of selfcontrol of quality and production constant worker focus on process improvement and elimination of muda waste including the reduction in changeover time support high levels of production efficiency coordination with distribution center andor processing center design product volume and variety requirements impact the choice of the manufacturing process and the corresponding choice of shop floor or plant layout layouts range from high variety low volume to low variety high volume the goal of this local design principle is to coordinate equipment configuration with the distribution center and processing center design so they support the five performance objectives of quality dependability flexibility speed and cost the types of equipment used and their positioning in a production facility depend on the choice of plant layout which is dependent on the manufacturing process that best meets the volume and variety production characteristics of a product or service each plant layout has distinctive equipment requirements you were introduced to each of these plant layout types and their corresponding definitions in section a execution 2018 apics all rights reserved 4201 cpim version 60 2018 edition fixedposition layout fixedposition is used in project manufacturing processes such as the construction of large buildings purpose and specialized for the fabrication and assembly of operations taking place there examples include cranes and general purpose machine tools for lifting and installing heavy subassemblies equipment made especially for bonding together the lightweight composite panels that make up the outer shell of the fuselage of boeing corporation s new long distance highcapacity passenger airplanes note that a trend in project manufacturing is toward final assembly and the minimizing of onsite fabrication an example is housebuilding in which major sections of the frame roof floors walls stairwells and door and window units are made in factories and delivered readytoinstall to the building site in summary the wide variety that characterizes products made in fixedposition layouts also applies to the types and positioning of equipment used in fixedposition fabrication and assembly operations functional layout a functional layout also called a process or job shop layout organizes work centers routings and varies widely in terms of sequence and number of workstation operations required the positioning of similar machines in workstations makes sense when the following conditions apply the variety of products produced is high high equipment utilization and work center efficiency can be attained by running many different jobs through the machine clusters that can be considered flexible accommodate many different job routings and due dates examples of process layouts are machine shops hospitals universities automobile repair shops tailor shops department stores and supermarkets in a supermarket for example customers move from one department to another depending on the type 2018 apics all
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that can be considered flexible accommodate many different job routings and due dates examples of process layouts are machine shops hospitals universities automobile repair shops tailor shops department stores and supermarkets in a supermarket for example customers move from one department to another depending on the type 2018 apics all rights reserved 4202 cpim version 60 2018 edition printed on 100 post consumer waste recycled paper section lu uesign loncepts and tradeoffs cellular layout acellular layout consists of machines and workers arranged to handle a linear flow of products or product groupings that follow the same routing such a layout is referred acellis a manufacturing unit consisting of a number of workstations plus the material transport mechanisms and storage buffers that interconnect them machinists work and operate equipment only within the line or cell space between machines is minimized and direct handoff of parts as they are produced from one operation to the next is emphasized usually the most functional arrangement is not a straight line but rather a uline or a cline such lines improve material flow and visibility 4 make it easier for workers to perform multiple tasks which reduces walking time and promotes communication within the cell make it easier to balance and minimize the number of operators needed for any given cycle time or output rate from an equipment performance perspective the deployment of equipment into a cell configuration dedicates it to the operations being performed by the cell which is justifiable when a higher volume and lower variety of products are being produced than in a functional layout in this respect equipment in a cell layout can be considered less flexible than in a functional layout where the same piece of equipment is included in the routings of many different products on the other hand the dedicated equipment in a cell supports dependability of production companies with equipment in cells consistent with lean principles are expected to have some extra capacity on hand to ensure attainment of planned takt an important concept is group technology defined in the apics dictionary 15th edition as follows an engineering and manufacturing philosophy that identifies the physical similarity of parts common routing and establishes their effective production it provides for rapid retrieval of existing designs and facilitates a cellular layout productbased layout the product layout is used for highvolume lowvariety masscontinuous manufacturing processes it is called product layout because in contrast to a functional layout equipment is arranged to facilitate the movement of the product through the manufacturing process to achieve the performance objective of speed all rights reserved 4203 cpim version 60 2018 edition printed on 100 postconsumer waste recycled paper product layout is justified by production volumes that are higher than those found in fixedposition functional and cellular layouts high volumes justify investment in dedicated specialized and often highly automated equipment the recovery of capital investment costs requires high utilization rates because the slowest workstation determines the speed of the product line workstation activity cycle times need
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that are higher than those found in fixedposition functional and cellular layouts high volumes justify investment in dedicated specialized and often highly automated equipment the recovery of capital investment costs requires high utilization rates because the slowest workstation determines the speed of the product line workstation activity cycle times need to be balanced to speed workflow and achieve production targets examples of equipment positioning that support production layouts are found in automobile assembly smallappliance assembly mail sorting by postal services and check processing by banks an example of a type of product line is a dedicated line a dedicated line is a production line permanently configured to run welldefined parts one piece at a time from station to station dictionary designing a distribution or processing center the work completed in distribution centers is much more complex than it used to be historically distribution centers received a pallet broke it down into orders and then distribution centers are now being asked to complete more complex valueadded tasks these tasks could be as simple as repackaging product into smaller or larger units or providing labeling and price marking or they could be as complex as custom hardware or software configurations to meet customer specifications the change is requiring distribution centers to rework their layout and integrate manufacturingassembly layout techniques this takes into consideration the impact on space equipment material and workers design a layout define process requirements and flowcharting the sequence of material handling various processing steps and volumes refine the layout use of conventional to fully automated materials handling and production processes work together to produce and optimum layout simulate the processuse computer simulation to test the system design throughput volumes and functionssystems integration designing a distribution center that functions more like a manufacturing plant requires thorough planning starting with conventional flowcharting all the way to computer modeling to get the layout just right 2018 apics all rights reserved 4204 cpim version 60 2018 edition printed on 100 postconsumer waste recycled paper section d design concepts and tradeoffs environmental footprint one of the more challenging local design decisions that require the organization to minimize detrimental impacts on society dictionary the selected manufacturing process type process layout and resulting scrap factor impact the environment and sustainability goals of the organization the dictionary defines scrap factor as follows a factor that expresses the quantity of a particular component that is expected to be scrapped upon receipt from a vendor completion of production or while that component is being built into a given assembly it is usually expressed as a decimal value for a given operation or process the scrap factor plus the yield should be started in the manufacturing process organizations are looking for ways to decrease the environmental footprint of manufacturing processes through the reduction of waste and the elimination of hazardous material or hazmat defined in thedictionary as follows hazardous material defined by environmental laws and legal precedents a product has been defined as hazardous by regulations that impose stiff fines
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for ways to decrease the environmental footprint of manufacturing processes through the reduction of waste and the elimination of hazardous material or hazmat defined in thedictionary as follows hazardous material defined by environmental laws and legal precedents a product has been defined as hazardous by regulations that impose stiff fines if the regulations are ignored organizations can reduce the overall impact of their manufacturing facility on employee health and the natural environment through efficient use of energy water and other resources protecting employee health and improving employee productivity reducing waste pollution and harm to the environment many organizations are taking their lessons learned from improving the efficiency of their existing manufacturing operations and embedding that in design of any new operations many organizations are using a design approach called design for the considering health safety and environmental aspects of a product during the design and development phase of product development 2018 apics all rights reserved 4205 cpim version 60 2018 edition printed on 100 costconsumer wacte recycled paper using this process the organization conducts an environmental assessment during the concept stage of design to measure the impact on the environment through its life another design approach that is used to minimize the impact on the environment is sustainable design sustainable design is the philosophy of designing physical goods to comply with the principles of social economic and ecological sustainability the goal is to prevent the negative environmental impact through the identification of mitigated other tools and models affecting local design process outcomes to this point we have reviewed a number of local design principles that influence important tradeoffs or decisions that determine the choice of production process and process layouts there are a few additional tools that deserve mention that impact local design process outcomes they are defined by the apics dictionary 15th edition assurance developed to help companies effectively document the quality system elements to be implemented to maintain an efficient quality system the standards initially published in 1987 are not specific to any particular industry 4 product or service the standards were developed by the international organization for standardization known as iso a specialized international agency for standardization composed of the national standards bodies of 91 countries the standards underwent major revision in 2008 and now include iso 90002008 definitions iso 90012008 requirements and iso 90042008 continuous improvement failure mode effects analysis fmea a procedure in which each potential failure mode in every subitem of an item is analyzed to determine its effect on other subitems and on the required function of the item it helps identify the most likely causes and helps design a more robust way to remedy the issue certificate of compliance a supplier s certification that the supplies or services in question meet specified requirements there are also a few models that are used to help managers adapt production processes to respond to changes in market conditions such as the following productservice life cycle illustrates how long a product or service is introduction growth
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certification that the supplies or services in question meet specified requirements there are also a few models that are used to help managers adapt production processes to respond to changes in market conditions such as the following productservice life cycle illustrates how long a product or service is introduction growth maturity and decline or innovation 2018 apics 4206 cpim version 60 2018 edition all rights reserved printed on 100 postconsumer waste recycled paper section d design concepts and tradeoffs order winner competitive characteristics that cause a firm s customers to choose that firm s goods and services over those of its competitors order winners usually focus on one rarely more than two of the following strategic initiatives pricecost quality delivery speed delivery reliability product design flexibility aftermarket service and image product profiling can be used to examine the degree of alignment between the manufacturing process and infrastructure investments product profiling is or company level to compare the manufacturing capabilities with the market requirements to determine areas of mismatch and identify steps needed for realignment 2 removing material around a predetermined boundary by means of numerically controlled machining the numerically controlled tool path is automatically generated on the system productprocess matrix used to demonstrate the combination of a products volume and variety characteristics and the nature of the processes that make it the productprocess matrix is used to examine the impact of the changes that have occurred in the market and production process application of lean principles to local design in addition to lean having a philosophy developed around continuous improvement this method also contains a number of tools that can be applied to local design as defined by the apics dictionary 15th edition continuous improvement is lean s key transformational elements within the manufacturing facility are described 2018 apics 4207 cpim version 60 2018 edition all ridhte recerved exhibit 499 lean elements within manufacturing element description work cells dissimilar machines grouped together into a production unit to produce a family of parts having similar routings kanban a method of justintime production that uses standard containers or lot sizes with a single card attached to each itis a pull system in which work centers signal with a card that they wish to withdraw parts from feeding operations or suppliers the japanese word kanban loosely translated means card billboard or sign but other signaling devices such as colored golf balls have also been used the term is often used synonymously for the specific scheduling system developed and used by the toyota corporation in japan quick changeover the ability to shorten machine setups between different machine operation requirements to increase process flexibility highest concentration is on first reducing external setup time then on internal setup issues this reduces economic order quantity queue and manufacturing lead times and workinprocess inventory it improves quality process and material flows motivation and provide crosstraining standard work awork process that is always carried out exactly the same way preferably using the current best known way under which the
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internal setup issues this reduces economic order quantity queue and manufacturing lead times and workinprocess inventory it improves quality process and material flows motivation and provide crosstraining standard work awork process that is always carried out exactly the same way preferably using the current best known way under which the 5s five terms beginning with s used to create a workplace suitable for lean production sort simplify scrub standardize there has been much discussion of lean in a manufacturing environment lean can also be used in a service environment although it should be implemented differently clear operational objectives the seven deadly wastes overproduction waiting time motion transportation processing inventory and defects are used to highlight where problems exist in a service environment these serve as both the identification and communication tool 2018 apics 4208 cpim version 60 2018 edition all rights reserved printed on 400 postconsumer waste recycled paper section us design voncepts and 1 radeoffs some of the tactics use to successfully implement lean in a service environment include the following hosting events like a kaizen event or a kaizen blitz to promote and change behavior the dictionary defines a kaizen blitz as follows a rapid improvement of a limited process area for example a production cell part of the improvement team consists of workers in that area the objectives are to use innovative thinking to eliminate nonvalueadded work and to immediately implement the changes within a week or less ownership of the improvement by additional benefits showing lean in action letting employees see what it looks like will go a long way to both understanding and reinforcing behavior communicating and building a common vision additional lean principles that relate to local design are described next quality systems important to design quality into the process from the beginning this is done through the application of the lean principle called pokayoke the goal of a pokayoke source the costs of mistakes within a manufacturing plant are reduced following iso 9000 or other recognized quality standards is a way to integrate mistake proofing right into the production process one example is the qs 9000 standard the dictionary defines qs 9000 as follows a variation of iso 9000 certification with additional requirements tailored for the automobile industry including suppliers qs 9000 is being superseded by iso ts 16949 which incorporates many european standards it uses pokayoke as a process control tool the dictionary defines process control as follows feedback correction and so forth 2 the monitoring of instrumentation attached to equipment valves meters mixers liquid temperature time etc from a control room to ensure that a highquality product is being produced to specification 2018 apics all rishts reserved 4209 cpim version 60 2018 edition printed on 100 oostconsumer waste recycled paper automation it also utilizes some of the other network design tools that will be described next including crossfunctional teams flexible manufacturing solutions fms are key to manufacturers incorporating automation geared for a lean manufacturing environment fms was developed using modular design
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2018 edition printed on 100 oostconsumer waste recycled paper automation it also utilizes some of the other network design tools that will be described next including crossfunctional teams flexible manufacturing solutions fms are key to manufacturers incorporating automation geared for a lean manufacturing environment fms was developed using modular design and group technology concepts the dictionary defines flexible automation as automation that provides short setup times and the ability to switch quickly from one product to another manufacturers attempting to apply lean principles should perform the plandocheckaction pdca steps the process of developing and testing a hypothesis prior to fully implementing lean automation local design parameter tradeoffs decisions made by operations managers are almost always a search for the most favorable or desirable solution there is seldom a completely right or completely wrong answer there are good and bad aspects and consequences to every choice and just about everything is a case of finding either the most benefit or the least harm relationship of one variable to the next for example given known production methods and materials increases in vehicle safety are achieved at the expense of fuel economy ora restaurants decision to offer speedier service limits its menu serving style and ability to customize products in each example a tradeoff occurs when a decision to improve one component of value limits another in this section we are going to examine tradeoffs that happen in three areas manufacturing process types and process layouts service customization and product costing manufacturing process types and process layouts when evaluating the tradeoffs between manufacturing process types and process associated with each of the performance objectives dependability safety stock needed processing costs rescheduling frequency flexibility volume flexibility mix flexibility delivery flexibility and time product and service flexibility quality errorfree process conformance quality of operations 2018 apics all rights reserved 4210 cpim version 60 2018 edition printed on 100 postcorsumer waste recycled paper section d design concepts and tradeoffs speed throughput times queuing and inventory processing costs cost profit margins working capital requirements transfer pricing inventory the goal is to align the process layout with the performance objective that ranks very high as seen in exhibit 4100 exhibit 4100 process and layout choices process ane bayout relative importance of performance objectives choices dependability flexibility quality speed cost project fixed very high very high functional work functional very high very high center cellular batch functional very high very high cellular line cellular very very productbased high high continuous productbased very very high high as illustrated in exhibit 4103 when using a project work center or batch process products are made to customer specifications with the tacit understanding that production will not start until the order is processed the tradeoff is that customers expect the process to show dependability rather than speed in its ability to meet promised delivery dates customers also expect flexibility in accommodating a high level of product variety as these often are unique products cost always is important always critical whereas the line or
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the tradeoff is that customers expect the process to show dependability rather than speed in its ability to meet promised delivery dates customers also expect flexibility in accommodating a high level of product variety as these often are unique products cost always is important always critical whereas the line or continuous processes are highvolume and lowvariety processes with flow layouts cost and speed are the dominant performance objectives driving these processes objectives in choosing a process or layout in some instances however quality can influence the choice of manufacturing process and layout lowthroughput and highvalue items that require highly skilled labor for example might lead to the choice of a jobbing or cell process and layout 2018 apics all rishts recerved 4211 cpim version 60 2018 edition service customization organizations often have to be able to combine the tradeoff between service customization and service standardization whenever variability is introduced this creates operational issues for an organization and managers must make a choice do they want to accommodate the variability or reduce it generally organizations that emphasize the service experience tend toward accommodation or customization and those that emphasize operational simplicity usually as a means to keep costs low tend toward reduction the two approaches are in constant tension the organization may have services to specific customer segments in various regions or countries that wont align with customer preferences elsewhere product costing tradeoffs are made at the product level with regards to how to determine product cost and what level of detail of information to track in order to support the required calculations the apics dictionary 15th edition defines product cost as follows cost allocated by some method to the products being produced initially recorded in asset inventory accounts product costs become an expense cost of sales when the product is sold there are four different types of product costing approaches as seen in exhibit 4101 the decision on which approach to take for product costing throughput costing only includes direct materials and product costs treats all other costs as period costs variable costing classifies costs by behavior considers variable manufacturing costs as product costs regards all other costs as period costs full absorption costing includes all materials labor and manufacturing overall as product costs handles all other nonmanufacturing costs as period costs lifecycle costing includes all productionrelated costs plus up and downstream costs as product costs can impact the business strategy and the organizations ability to identify real profitability 2018 apics all rights reserved 4212 cpim version 60 2018 edition printed on 100 postconsumer waste recycled paper scutiun u ucsign concepts and traveoffs exhibit 4104 product costing throughput variable absorption lifecycle costing costing costing costing variable factory overhead nonfactory costs sales admin distrib rd design customer service disposal making good product decisions for the organization requires that managers understand what goes into each product costing method if they don t it makes it difficult to determine cost behavior for many organizations one product cost definition does not meet all costing
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sales admin distrib rd design customer service disposal making good product decisions for the organization requires that managers understand what goes into each product costing method if they don t it makes it difficult to determine cost behavior for many organizations one product cost definition does not meet all costing needs this is where the tradeoff occurs determining the costing method that best represents the information needed to make good product design decisions one product cost that is often overlooked is transfer pricing transfer pricing is the pricing of goods or services transferred from one segment of a business to another dictionary costvolumeprofit relationships accurately measuring profit requires the use of the right equation according to pascal dennis in lean production simplified profit is price fixed cost profit as was just presented this reinforces the use of product costing systems and the need for operationsspecific costing approaches the challenge is selecting the right approach for the organization of the many reviewed thus far the reason behind covering this information in the execution module is to ensure that managers know what is included in each costing method so they understand the impact of any adjustments or tradeoffs made to be aware of other costs that can be reducing their profits such as 2018 apics 4213 cpim version 60 2018 edition all rights reserved printed on 100 postconsumer waste recycled paper unplanned downtime of equipment differences between best practice vs the actual process used nonvalued added activities or waste variability of product traits due to overfill inventory shrinkage network design principles no operation exists in isolation every operation is a part of a larger interconnected network network design starts with setting the networks strategic objectives as was discussed in strategic resource management this helps the organization decide how it wants to influence the overall shape of its network the location of each operation and how it should manage its overall capacity within the network network design as seen in exhibit 4102 relates to the decisions a company makes to link its operations with the operations of other companies either as a customer or as a supplier these relationships can number in the hundreds and even the thousands they form what is referred to as a manufacturers supply network or supply chain in relationships with suppliers there are three important network design principles ensuring the dependability of suppliers not hiding quality problems with excess inventory and establish a collaborative relationship with suppliers to meet strategic performance objectives exhibit 4102 network design principles design principles affecting the organizations relationship to the physical environment and society including local communities design principles guiding collaborative interactions with up and downstream suppliers and customers design principles shaping the internal activities of organizations ensure dependability of suppliers quality suppliers to ensure high quality products this might strike some as a 2018 apics all rights reserved 4214 cpim version 60 2018 edition printed on 100 postconsumer waste recycled paper section vu uesign voncepts and it radeoffs ifmaterials move through seven
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internal activities of organizations ensure dependability of suppliers quality suppliers to ensure high quality products this might strike some as a 2018 apics all rights reserved 4214 cpim version 60 2018 edition printed on 100 postconsumer waste recycled paper section vu uesign voncepts and it radeoffs ifmaterials move through seven stages of operations in a supply chain a one percent error in each operation means that only 932 percent of the product don t hide quality problems with excess inventory the second principle is not to hide quality problems with excess inventory a natural instinct is to buffer supply quality and delivery dependability with excess inventory or safety stock even when justintime jit delivery of supplies is used in a lean operation continuous improvement efforts relating to quality and delivery are important in reducing the use of buffers close cooperation with suppliers is essential if there are supplier problems specifically chronic quality problems then the organization should progress towards improvement using an approach such as the one recommended by juran in juran s quality handbook that includes 1 create a joint team from the customer and supplier to align analyze and work on chronic problems examine cost reduction opportunities be sure to include the cost of poor quality analyze the value added by each link in the supply chain share information and ideas on a regular basis throughout the supply chain regularly collaborate on improvement opportunities to generate value for customers and suppliers alike geges eres disparate parts with collaboration as the new norm as seen in the third principle establishing collaborative relationships the third principle relates to establishing collaborative relationships with suppliers to meet strategic performance objectives a collaborative relationship with suppliers will build better communication stronger trust and encourage the sharing of common resources the implications are as follows relationships with suppliers need to change from transactional and adversarial to strategic where feasible suppliers and customers need to explore and form relationships that provide a mutual benefit such as improving their ability to meet quality speed dependability cost and flexibility objectives 2018 apics all rights reserved 4215 cpim version 60 2018 edition printed on 100 nostconeumer waste recycled paper these principles can be used to shape the relationship with up and downstream customer and suppliers we will review techniques for implementing these principles later in this section establishing customer and supplier relationships customers and suppliers have the same goal to satisfy the end user the better the supplier quality the better the supplier s longterm position because the customer will have better quality because both the customer and suppliers have limited 2 resources they must work together as partners to maximize their return on investment there are at least four important design principles for establishing and managing customer relationships we will introduce each design principle here and then review techniques for implementing these principles later in this section regarding their needs and experiences in this instance the objectives are to understand and define their needs and views on
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least four important design principles for establishing and managing customer relationships we will introduce each design principle here and then review techniques for implementing these principles later in this section regarding their needs and experiences in this instance the objectives are to understand and define their needs and views on quality determine their interest in new products and service features understand the customers speed dependability and cost objectives measure their satisfaction and analyze customer loyalty and retention issues all customers even internal ones have a choice of suppliers knowing what your orderqualifier attributes being able to differentiate your product with one or more attributes gives your product orderwinning attributes recognize internal and external customers we often think of customers as external the external customer label also extends to any organization whose needs must be met in planning making and selling a product internal customers as we mentioned earlier have a choice of suppliers and need to be persuaded that internal suppliers can satisfy their needs identify the customer the third principle recognizes that the customer often is a group of customers the most influential of the external customer group often is the economic buyer or the 2018 apics 4216 cpim version 60 2018 edition all rights reserved printed on 100 postconsumer waste recycled paper section d design concepts and tradeoffs organization whose budget funds the purchase many other functional groups have an influence on purchases as well the purchasing process needs to account for this recognize that not all customers are equal percent of the customer base priority should be given to the vital few because of their contribution to profit it also is important to recognize demographic and geographic differences suppliers need to account for these differences through product segmentation in the case of consumer products it might mean changing the labeling packaging size and taste of products for different national regional or local markets the customersupplier relationship is of great importance in quality management should ideally be a winwin situation for both parties in order to make it a long term and trustworthy alliance these principles can be used when developing relationships personal relationships require attention and the same is true for customer and supplier relationships exhibit 4103 supply network concept manufacturer operations upstream downstream supplier operations customer operations customer and supplier performance exhibit 4103 entire supply network consists of links between its operations and the operations of numerous upstream and downstream suppliers and customers 2018 apics a 4217 pes cpim version 60 2018 edition materials and products flow through various paths from upstream supplier operations through manufacturer ys operations and then to downstream customer operations the paths will differ for different products made by manufacturer y performance of that chain is evaluated against five standard objectives used to measure effectiveness of operations during supply chain evaluation it is important for the organization to stay focused using a technique such as conducting a pareto analysis of its suppliers often the focus is on too many things and nothing
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of that chain is evaluated against five standard objectives used to measure effectiveness of operations during supply chain evaluation it is important for the organization to stay focused using a technique such as conducting a pareto analysis of its suppliers often the focus is on too many things and nothing gets addressed using the pareto analysis can focus operations performance in the form of quality speed dependability flexibility and cost through various chains of operations depending on the product in the network froma lean perspective you could substitute the word value for performance lean systems try to drive waste out of the supply chain or network leaving only valueadded activities the apics dictionary 15th edition defines valueadded as follows in current manufacturing terms the actual increase of utility from the viewpoint nonvalueadded activities in producing and providing a good or service the purpose of this discussion is to place customer and supplier performance into context in this section we review techniques used to improve the management of relationships with upstream supply operations and downstream customer operations the objective is to familiarize you with ways to improve supply chain performance from suppliers through a manufacturer and on to customers remember that performance consists of five components quality speed dependability flexibility and cost establish quality requirements accurate specifications of product or service quality requirements it includes the three major activities as shown in exhibit 4104 2018 apics 4218 cpim version 60 2018 edition bt tats cane printed on 100 postconsumer waste recycled paper seutiun uv ucsign voncep is anu eraveuffs exhibit 4104 specification of quality requirements activity key characteristics and issues determine a buyer needs to ensure that the supplier understands how the product is approach exact specifications for performance attributes such as temperature and mean time between failures may not be known until the system is completed mean time between failures mtbf is the average time interval between failures for repairable product for a defined unit of measure eg operating hours cycles miles dictionary this issue might require the following awarding a separate contract for development with specifications for product requirements awarding a production contract later with specifications for the qualityrelated activities expected of the supplier define numerical requirements for quality including reliability are used in lot numerical acceptance sampling to accept or reject a lot indexes based on numbers requirements or percentages are most useful such as parts per million items measures defects per million items percentage defective that has a high probability of being accepted by a sampling plan mean time to repair and mean time between failures mean time to repair mttr is the average time that it takes to repair a product dictionary communication with suppliers misinterpret the meaning of qualitylevel requirements and sampling results define the defining required quality activities at a suppliers factory when necessary supplier provides assurance that quality requirements will be met by the supplier in quality highly regulated industries such as pharmaceuticals government system regulations require buyers to ensure that suppliers processes
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the meaning of qualitylevel requirements and sampling results define the defining required quality activities at a suppliers factory when necessary supplier provides assurance that quality requirements will be met by the supplier in quality highly regulated industries such as pharmaceuticals government system regulations require buyers to ensure that suppliers processes sanitary conditions materials and documentation meet established requirements compliance with so 9000 and other standards also can be required of suppliers for complex products suppliers may be required to provide documents such as a failure mode effect criticality analysis anda reliability test plan a supplier selection criteria in this section we examine supplier selection issues that are related to the execution and control of operations as opposed to supply chain management strategy we examine the advantages and disadvantages of insourcing versus outsourcing and multiple versus single sourcing insourcing versus outsourcing outsourcing is the use of outside suppliers to produce an item that once was produced operational priorities 2018 apics 4219 cpim version 60 2018 edition all rights reserved printed on 100 postconsumer waste recycled paper outsourced it is simply a purchased part or component outsourcing can involve subcontracting to a manufacturer down the street or in another country outsourcing to another country often is referred to as offshoring the tradeoffs between inhouse production and outsourcing are shown in exhibit 4105 a decision to outsource requires awareness of several issues the exhibit 4105 advantages and disadvantages of outsourcing performance advantages gained by disadvantages of outsourcing to objective outsourcing buyer quality specialized knowledge possible reduction in quality control experience and quality focus loss of operational control resources on core competencies speed leadtime reduction impact on synchronization of schedules dependability impact on communication of schedule changes to operations flexibility greater capacity and ability to change production levels cost economies of scale lower possible excess internal capacity capital costs lower personnel following negative effects on employee morale loss of competencies that will be difficult to recover later alignment of priorities with the supplier of outsourcing services maintaining high quality levels associated costs and risks of inbound and outbound logistics multiple versus singlesourcing the growing use of single rather than multiple suppliers is usually part of a strategy simplifying transactions to reduce costs leveraging supplier assistance in new product development to increase speed improving communication to increase speed and dependability increasing supply security also to increase dependability 2018 apics 4220 cpim version 60 2018 edition all rights reserved printed on 100 postconsumer waste recycled paper veviiun uv vicoigin vuinver to and traueufpo in certain circumstances companies are apt to take a strategic sourcing approach this would involve signing longterm contracts or forming longterm partnerships with one or two companies whose materials and services are considered critical strategic materials are those used in products that account for a high percentage ofa company s profits and for which there is strong overall market demand or few suppliers exhibit 4106 details the advantages and disadvantages of multiple and singlesourcing exhibit 4106 advantages and disadvantages of multiple and single
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critical strategic materials are those used in products that account for a high percentage ofa company s profits and for which there is strong overall market demand or few suppliers exhibit 4106 details the advantages and disadvantages of multiple and singlesourcing exhibit 4106 advantages and disadvantages of multiple and single sourcing multiple sourcing single sourcing advantages include advantages include better prices quality and service due to greater significance of larger contracts to competition suppliers less vulnerability to supply disruptions ease of communications transactions wider availability of knowledge sources more cooperation on new product and expertise development shared cost quality and competitive advantage from collaboration disadvantages include disadvantages include higher transaction costs individual supplier more affected by suppliers not as committed volume fluctuations fewer economies of scale upward pressure on prices if not other more effort to communicate supplier is available buyer vulnerable to supply disruption supplier capability assessment purpose of assessing supplier capability is to qualify the manufacturing process that will be used to produce the product products must meet the characteristics and production specifications that are required for internal quality processes and customer requirements the apics dictionary15th edition defines these terms as follows critical characteristics the attributes of a product that must function properly critical to quality characteristics ctq the important and measurable traits 2018 apics 4221 cpim version 60 2018 edition all rights reserved printed on 100 postconsumer waste recycied paper customer they adjust improvement efforts to meet consumer requirements ctqs represent customer expectations for a product first pass yield the ratio of products that conform to specifications without rework or modification to total input firstarticle inspection a quality check on the first component run after anew setup has been completed qualification process the qualification process for product design is outlined in exhibit 4107 exhibit 407 qualifying product design steps key activities and issues detailed to prevent test failures due to results that do not meet functional product requirements the buyer must define accurate and detailed definition requirements samples supplier s engineering department then makes models for testing since approval of test to prevent a test failure caused by an inadequate test procedure the procedure buyer should review and approve the procedure before the test begins qualification tests of the model are meant to show whether the suppliers design item under production conditions analysis of test test results accept or reject the design in some cases the supplier results submits a failure mode effects and criticality analysis fmeca to document the analyses to prevent product or process failures this relates to the six sigma quality approach to the design process manufacturing process qualifying the manufacturing process requires assessing manufacturing process capability and quality processes some of the more common approaches used to accomplish this are as follows evaluation of experience this approach relies on data on past quality performance on similar products data might be available within the buyer s local operation other divisions or industry databases process capability analysis statistical indices can be used before production to
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common approaches used to accomplish this are as follows evaluation of experience this approach relies on data on past quality performance on similar products data might be available within the buyer s local operation other divisions or industry databases process capability analysis statistical indices can be used before production to evaluate data on significant product characteristics these should include those related to regulatory compliance requirements pics 4222 cpim version 60 2018 edition printed on 100 postconsumer waste recycled paper section d design concepts and tradeoffs evaluation method quality survey the survey determines the supplier s ability to prevent identify and remove products that do not meet requirements from production lots such surveys usually are conducted during the supplier selection process if the supplier has already been selected the survey identifies improvements that the supplier needs to make surveillance of supplier quality this is the continuous process of monitoring and verifying the status of a supplier s methods procedures conditions processes products and services there are many ways that this can happen including product inspection monitoring the manufacturing process spc data quality status meetings audit of the supplier quality program and firsthand average outgoing quality limit aoql the maximum average outgoing quality over all possible levels of incoming quality for a given acceptance sampling plan and disposal specification dictionary evaluating product exhibit 4108 lists the methods used to evaluate a supplier s product exhibit 4108 product evaluation methods description products being evaluated critical items risk of defect every time justifies cost of inspection sample sampling within acceptance sampling the determination that will trigger rejection of a lot important items supplier has adequate quality record identifying inspection measuring examining testing or gauging one comparing the results with specified requirements to determine whether conformity is achieved for each characteristic items not critical reliability the product have been established standard materials not used in products office supplies accept supplier certification data certification procedures verifying that a supplier operates maintains improves and documents effective procedures that relate to the customers requirements such requirements can include cost quality delivery flexibility environmental standards suppliers quality record is strong 2018 apics cpim version 60 2018 edition through these evaluation steps the organization may encounter instances where the communicating the nonconformance that communication should be sure to include a specific description of the defect the best descriptions include a sample defect resolution is outside of the scope of this course and often requires much discussion benefit of opening communication on quality with suppliers on the other hand suppliers can be overwhelmed with requests from buyers iso 9000 certification of the supplier is often used instead of an individual survey iso 9000 certification ensures that there are defined and followed processes partnershipbased quality planning establishing collaborative relationships between manufacturers and their suppliers partnershipbased quality planning with suppliers is an example of how to execute this principle techniques used in partnershipbased quality planning are shown in exhibit 4109 exhibit 4109 partnershipbased quality planning techniques techniques multiple channels quality planning success by
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processes partnershipbased quality planning establishing collaborative relationships between manufacturers and their suppliers partnershipbased quality planning with suppliers is an example of how to execute this principle techniques used in partnershipbased quality planning are shown in exhibit 4109 exhibit 4109 partnershipbased quality planning techniques techniques multiple channels quality planning success by partnerships teams are formed to address many issues other than quality planning such as training of supplier personnel design review demand sales projections and schedule sharing and delivery policies communication between the supplier and customer takes place at many levels and not just between sales and purchasing teams naturally communicate at many different levels engineering joint efforts focus on eliminating waste and reducing costs because of over specification of product requirements waste could be caused by total cost of teams collaborate on reducing costs other than the purchase price this ownership includes qualityrelated costs such as inspections downtime and returns and other costs such as disposal and extra inventory 2018 apics 4224 cpim version 60 2018 edition all richte recerved printed on 100 postconsumer waste recycled paper section d design concepts and tradeoffs related planning activities techniques key activities and issues other quality this includes planning for activities that affect both parties such as 1 lot colocation supplier co location with a key customer is similar to cellular establishment of acceptable quality levels aql 3 sampling plans for inspection and test activity 4 standardization of test methods and agreement on meaning of performance requirements in specifications and 6 classification of defects using pareto analysis to focus on the vital few manufacturing where families of parts are produced within a single line or cell of machines controlled by operators who work only within the line or cell quality defects are discovered almost instantly as product moves from one station to the next therefore the process itself drives quality up execution of these techniques is a bit more challenging the following steps for successful supplier control are suggested by juran s quality handbook assemble a crossfunctional team select critical performance metrics and minimum standards of performance assess supplier performance quality system business management product reduce the supplier base to those that can meet minimum standards these quality control steps focus on applying the partnershipbased quality planning techniques mentioned above throughout the contracting certification rating and quality measurement process teams and contract execution as just mentioned one of the techniques used in partnershipbased quality planning crossfunctional teams perform the supplier control activities just referenced during contract execution the supply chain quality control techniques most often used during contract execution include the following product sample evaluation supplier submits test results from production buyers representative for process control evaluation design changes design changes can be made by the supplier or customer the impact on processes tools instruments and procedures needs to be determined customer needs to communicate complete design change information to the supplier 2018 apics 4225 cpim version 60 2018 edition supplier quality surveillance this involves continuous monitoring of supplier quality system including procedures
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made by the supplier or customer the impact on processes tools instruments and procedures needs to be determined customer needs to communicate complete design change information to the supplier 2018 apics 4225 cpim version 60 2018 edition supplier quality surveillance this involves continuous monitoring of supplier quality system including procedures methods conditions processes products services statistical process control results and documentation product evaluation different methods are applicable based on type of item and supplier quality record action on nonconforming defects their symptoms and possible causes need item repair costs causes and prevention of recurrence earlier we discussed the details behind techniques for assessing the manufacturing process many of these same techniques also impact the contracting process and more specifically the language within the contract supplier certification earlier we presented accepting supplier certification data as a part of qualifying a suppliers manufacturing process supplier certification is also one of the techniques used to manage partnershipbased quality planning the apics dictionary 15th edition defines supplier certification as follows certification procedures verifying that a supplier operates maintains improves and documents effective procedures that relate to the customer s requirements such requirements can include cost quality delivery flexibility maintenance safety and iso quality and environmental standards organization examples include the following reduction in the cost of quality for buyers no inspection appraisal costs very low defect handling costs reduction in internal and external failure costs for suppliers and buyers caused by defective parts certified according to industry standards preference in competitive bidding by suppliers examples of key criteria used for supplier certification are shown in exhibit 4110 exhibit 4110 supplier certification criteria examples stable processes example statistical control and process key criteria examples capability studies quality system documented continuous improvement plans 2018 apics 4226 cpim version 60 2018 edition section d design concepts and tradeoffs key criteria examples eg six months one year lots over six months no nonproduct related rejections for a no rejects on items container marking year documentation request no negative productrelated incidents fora ability to seamlessly integrate with the specific time period eg six months one buyer s processes and products passed a recent onsite quality system supplier survey utilizes defined criteria evaluation specifications ambiguous phrases inspection and test data available upon realtime availability of data request as a result of conducting supplier certification the organization would have a list of certified suppliers from which to pull from when a need arises the dictionary defines certified supplier as follows a status awarded to a supplier that consistently meets predetermined quality cost delivery financial and count objectives incoming inspection may not be required supplier quality ratings provide a quantitative summary of a supplier s quality over a specific period of time they provide the supplier and buyer with a common language and factual information from which to have quality discussions supplier quality ratings differ widely among manufacturers in terms of individual metrics used and their overall weighting an example of a rating system is shown in exhibit 4111 exhibit 4114 supplier
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they provide the supplier and buyer with a common language and factual information from which to have quality discussions supplier quality ratings differ widely among manufacturers in terms of individual metrics used and their overall weighting an example of a rating system is shown in exhibit 4111 exhibit 4114 supplier rating report example description is best weight weighted rating overall combined weighted rating 89 2018 apics 4227 ome cpim version 60 2018 edition an additional metric to consider is alean metric defined in thedictionary as follows a metric that permits a balanced evaluation and response quality without sacrificing quantity objectives the types of metrics are financial behavioral and coreprocess performance supply chain quality improvement many criteria have been presented as ways to planand control customer and supplier juran s quality trilogy the third aspect improvement will be addressed next as we focus on three supply chain quality improvement techniques crossfunctional quality improvement teams as in supply chain quality planning and control supply chain quality improvement teams consist of customer and supplier personnel they take a crossfunctional approach to improving supplier quality material planning production and delivery activities the objectives of crossfunctional improvement teams are as follows tocoordinate supply chain management strategies and operations of customers to identify and attack chronic problems to implement cost reduction efforts to encourage and lead customer and supplier collaboration to generate value as well as eliminate waste management endorsement executivelevel leadership can be effective in launching crossfunctional customer and supplier teams by publicly endorsing and actively supporting joint planning and synchronizing operations with suppliers and customers many companies are still relatively unacquainted with this way of doing business with customers or suppliers managers and workers are being asked to learn new ways of working and interacting with other departments in their own as well as partner organizations occasional meetings between executives of the companies involved demonstrate the value of crossfunctional and multiplecompany collaboration pareto analysis pareto analysis of suppliers draws attention to the vital few problems that are most significant the analysis helps crossfunctional customer and supplier teams determine their priorities resource requirements and schedules examples of problems that pareto analysis can put into perspective include the following losses by product family 2018 apics 4228 cpim version 60 2018 edition printed on 100 costconsumer waste recycled paper section d design concepts and tradeoffs losses by process type milling turning drilling volume and percentages of purchases from suppliers by type of product part purchases by percentage of dollar volume the voice of the customer was briefly introduced earlier in this section but the extent to which it impacts the network design principles warrants additional discussion the apics dictionary 15th edition defines the voice of the customer as follows actual customer descriptions in words for the functions and features customers desire for goods and services in the strict definition as related to quality function deployment qfd the term customer indicates the external customer of the supplying entity feedback from the customer internal or external to provide the
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as follows actual customer descriptions in words for the functions and features customers desire for goods and services in the strict definition as related to quality function deployment qfd the term customer indicates the external customer of the supplying entity feedback from the customer internal or external to provide the customers with the best in class serviceproduct quality gather customer feedback includes gathering information on both actual and perceived quality perceived quality is one of the eight dimensions of quality that refers to a subjective assessment of a product s quality based on criteria defined by the observer dictionary this process is all about being proactive and constantly innovative to capture the changing requirements of the customers with time logistics practices factor to consider is logistics the following principles apply to network design logistics practices physical proximity supplier location affects landed cost or the price plus the cost of transportation to the plant it also affects lead times suppliers might maintain inventory at or near the plant to shorten lead times proximity also facilitates facetoface communication inspection and monitoring of product quality and the exchange of tacit knowledge transportation modes there are many transportation modes to select from mode of transportation based on the needs of the product associated costs and the ability to make ontime delivery to the customer tracking capabilities supplier and manufacturers should provide tracking capabilities to customers this information needs to be accurate and be available 2018 apics 4229 cpim version 60 2018 edition account from the start of network design the dictionary defines transportation as the function of planning scheduling and controlling activities related to mode the goal of good logistics practices is to eliminate the bullwhip effect by synchronizing the supply chain thinking through and addressing concerns related to these logistics principles will aid in designing a reliable network application of lean tools to network design in addition to lean having a philosophy developed around continuous improvement this method also contains several tools that can be applied to network design to increase collaboration with upand downstream customers and suppliers many flexible and quick responses to customer demand throughout the value chain as organizations work with others in their network they need to ensure that everyone in the network from the earliest raw material suppliers through to the ultimate customer understands that they have a shared destiny lean s key elements in the manufacturing network are described in exhibit 4112 exhibit 4112 lean elements within the network element description lead time and time lean will work to reduce time horizons and shorten the space horizons between time fences by working with suppliers to deliver in shorter lead times if possible lead times are reduced to the point where all production is based on actual orders docktostock a program through which specific quality and packaging value stream mapping a lean production tool to visually understand the flow of prequalified product is shipped directly into the customers inventory docktostock eliminates the costly handling of components specifically in
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the point where all production is based on actual orders docktostock a program through which specific quality and packaging value stream mapping a lean production tool to visually understand the flow of prequalified product is shipped directly into the customers inventory docktostock eliminates the costly handling of components specifically in receiving and inspection and enables product to move directly into production docktostock is also called pointofuse inventory pointofuse inventory is inventory placed in the production process near the operation in which it is to be used apics dictionary 15th edition materials from supplier to customer that includes the current nonvalueadded time of all the process steps used to lead to reduction of waste decrease flow time and make the process flow more efficient and effective 4230 cpim version 60 2018 edition printed on 100 costconsumer waste recycled paper section d design concepts and tradeoffs lean six sigma lean six sigma focuses on both problem solving and process element description improvement a methodology that combines the improvement concepts of lean and six sigma it uses the seven wastes of lean and the dmaic process from six sigma and awards recognition of competence through judostyle belts the six sigma approach includes producing only 34 defects for every one million opportunities or operations global design principles as seen in exhibit 4113 global design principles are the basis of an organization s and community these are the relationships that define how a company chooses to deal with matters of public interest exhibit 4113 global design principles design principles affecting the organization s relationship to the physical environment and society including local communities design principles guiding collaborative interactions with up and downstream suppliers and customers design principles shaping the internal activities of organizations next we will review some examples of product and process design principles that are meant to promote general public interest we start with how a how a global manufacturer incorporates concerns for society the environment and morale of workers and therefore the community into its core goals then well review an example of how these three core goals were incorporated into a business planning system for the development of global products core goals pascal dennis in lean production simplified points out that in lean manufacturing companies the core goal of customer focus has been to provide the highest quality at the lowest price in the shortest time by continually eliminating muda or waste the current expectations of customers are much broader than this they are not just 2018 apics bilstein 4231 cpim version 60 2018 edition buyers but also those who influence the planning making and selling of products these nonbuying customers include government agencies and public interest groups that are concerned with safety and environmental concerns asa result lean organizations have expanded their goals and created pqcdsm which productivity quality delivery time morale of workers introduce new product features and new products at toyota the design principles are worker involvement hoshin or strategic planning and a3 thinking of the kind that
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with safety and environmental concerns asa result lean organizations have expanded their goals and created pqcdsm which productivity quality delivery time morale of workers introduce new product features and new products at toyota the design principles are worker involvement hoshin or strategic planning and a3 thinking of the kind that supports the pdca cycle as discussed in section c quality communication and continuous improvement worker involvement our example begins with the role of worker involvement at toyota in product because of continuous improvement and the elimination of waste productivity improvements are recognized and openly acknowledged at toyota as a threat to jobs workers have been encouraged to come up with product improvements and new product ideas that will lead to business growth and prevent job reductions continuous improvement in this case takes on a meaning other than cost and time reduction it includes the introduction of new product features that create reasons for customers to prefer toyota automobiles an example is the concept of compact solarpowered air conditioning systems for automobiles introduced in 2009 the idea came from the lean principle of observing and creative thinking the creative thinking was about how to make drivers more comfortable with a free source workers and managers normally such thinking would be expected primarily of sales and marketing departments hoshin planning and systems thinking the example is continued with toyotas hoshin or strategic planning process enabled its planners to recognize and act upon favorable external conditions in the last quarter of the 20th century for the introduction of the prius hybrid car hoshin planning requires systems thinking of three types 2018 apics 4232 cpim version 60 2018 edition printed on 100 postconsumer waste recycled paper section d design concepts and tradeoffs holistic this type of thinking enabled toyota to link energy supply uncertainties the prospect of rising gasoline prices over time and the green movement toa business justification for a car that was less dependent on fossil fuels dynamic this type of thinking helped toyota resist not introducing a hybrid car in the 1990s as fuel prices leveled off its major competitors did resist based on dynamic thinking toyota planners concluded that the relationship among supply uncertainty rising fuel prices and green thinking would only intensify in the near future closed loop closedloop thinking enabled toyota to act on holistic and dynamic thinking by deciding to introduce the first successful hybrid the prius in 1997 the prius has been a market leader in this class since then one could argue that this is just an example of one of the world s largest auto manufacturers using its deep resource base to take a market risk that turned out well you could instead also argue that applied in a global design context the thought toyota the remainder of this topic includes a review of different techniques that support global network design costs and benefits to society to conduct a benefitcost analysis which examines the pros and cons of a proposed solution and its impact
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argue that applied in a global design context the thought toyota the remainder of this topic includes a review of different techniques that support global network design costs and benefits to society to conduct a benefitcost analysis which examines the pros and cons of a proposed solution and its impact on society exhibit 4114 details the steps to create a benefitcost analysis as presented in juran s quality handbook note that in order to reach a conclusion all aspects of each alternative must be expressedin a common unit exhibit 4114 benefitcost analysis process step process step description 1 approximate costs that are for all alternatives this the costs that are onetime costs onetime costs operating costs that are costs that each alternative will have on the additional annual operating costs 3 approximate the annual cost for all alternatives estimate the annual cost savings savings from selecting this alternative 2018 apics 4233 cpim version 60 2018 edition step process step description application of each alternative 5 measure the impact on customer determine if the alternative will have a positive discarded 6 calculate net annual operating determine the amount each alternative will costs save the organization cost savings are indicated by a negative number 7 calculate annual costs of for each alternative determine the annual onetime costs cost of the onetime costs 8 calculate total annual costs sum of net annual costs and annual costs of i annual costs of onetime costs 9 review data and prioritize select the alternative with the highest rank alternatives green and sustainable manufacturing our second global design technique is green and sustainable manufacturing module defines the following terms that relate to green and sustainable manufacturing sustainability an organizational focus on activities that provide present benefit without compromising the needs of future generations green manufacturing a method of producing a good or service that minimizes external cost and pollution it includes design for reuse design for disassembly triple bottom line an approach that measures the economic social and environmental impact of an organization s activities with the intent of creating value for both its shareholders and society without compromising the ability of future generations to meet their own needs many organizations today are focusing on sustainable methods of manufacturing and ways to provide service to improve the likelihood of future economic success while 4234 cpim version 60 2018 edition printed on 100 postconsumer waste recycled paper sustainability and corporate social responsibility which we will talk about next and their relationship to the organizations strategy the apics dictionary 15th edition section d design concepts and tradeoffs steps description get free of known begin to turn away from substances that are widely culprits recognized as harmful benefiting society and the environment building and maintaining a sustainable organization includes focusing on achieving high performance levels in the long term avoiding detrimental behaviors in the short term these principles can have an important effect on decision making and the way business is carried out specifically manufacturing and services should be performed
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the environment building and maintaining a sustainable organization includes focusing on achieving high performance levels in the long term avoiding detrimental behaviors in the short term these principles can have an important effect on decision making and the way business is carried out specifically manufacturing and services should be performed in a manner that protects and improves the triple bottom line organizations that are concerned with the triple bottom line are concerned with protecting the environment with everything the organization does if this is the case then they may be utilizing when organizations apply the design for the environment principles that were introduced earlier in this section they are examining the impact of their actions on the global network the steps involved in designing for the environment or ecoeffective design are shown in exhibit 4115 some organizations call this going cradle to cradle driven by a commitment to putting ecoeffective principles into action change grows incrementally using these steps exhibit 4115 dfe steps the decision to create products that are free of obviously harmful substances is part of a design filter jesse temiryeenemennnsscrnsmneia tenement erent smmntntedatimedtenmneeshomairmsininitieionnl 2 follow informed personal base design choices on the best information available preferences 3 creating a passive here design becomes ecoeffective going beyond positive list existing readily available information as to the contents of a given product they conduct a detailed inventory of all materials used in a given product and what it will give off toxins carcinogens what is the end state the product is designed from the beginning using ecoeffective principles to be either biological or technical food 5 reinvent transform the ideas into an ecoeffective vision one organization that promotes and is making great strides in green and sustainable business is the leadership in energy and environmental design leed certification program for design construction and operation of highperformance buildings the standard is to produce environmentally friendly construction products 2018 apics 4235 cpim version 60 2018 edition corporate social responsibilities organizations can reap considerable benefits from corporate social responsibility csr by integrating social including environmental concerns into their corporate objectives in many instances however companies often adopt responsible social behavior in reaction to specific events rather than making it organic to the valuecreating aspects of their business model porter and kramer in strategy and society the link between competitive advantage and corporate social responsibility provide two examples of companies forced to address the potential adverse economic consequences from public disapproval of business practices or behavior nike when faced with a customer boycott after the new york times reported abusive labor practices at some of its indonesian suppliers in the early 1990s shell oil when confronted by greenpeace protests when it sank the brent spar an often the resulting csr activities are a random combination of philanthropic endeavors that do not tie into the organization s strategic objectives nor optimally set the goal of shared value activities should benefit society and the organization how does your product benefit society and the organization identify
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brent spar an often the resulting csr activities are a random combination of philanthropic endeavors that do not tie into the organization s strategic objectives nor optimally set the goal of shared value activities should benefit society and the organization how does your product benefit society and the organization identify points of intersection look for linkages between the organization and society what points of intersection exist between the organization and society choose which social issues to address identify activities with the greatest strategic value and social impact what impact can the actions of the organization have on the supply chain this type of impact is referred to as an insideout linkage insideout linkages are the influences of an organization s value chain activities on society these influences often can be subtle and can vary with the location of the organization and over time examples include the following infrastructure human resource management technology development procurement inbound logistics operations outbound logistics marketing and sales aftersales service looking at the same concept in reverse outsidein linkages are the influences of society on an organization s value chain activities they include the following available inputs to business human resources transportation and so on 2018 apics 4236 cpim version 60 2018 edition printed on 100 postconsumer waste recycled paper section d design concepts and tradeoffs competitive rules and incentives policies that protect intellectual property and safeguard against corruption local demand standards product quality and safety consumer rights etc availability of supporting industries service providers machine producers etc many levers that the organization considers when designing their global network five stages of corporate responsibility nike and shell learned the hard way as society changes we must constantly rethink how we do business most corporations pass through five stages as they move toward predict and credibly respond to societys changing awareness of particular issues exhibit 4116 stages of corporate responsibility stage sounds like description this is when organizations defend their reputation compliance well do just as much as this is where a corporate policy should be managerial its the business this is where the organization integrates it into the daily operations strategic it gives us a competitive this is where the organization integrates it edge into their core business strategies civil we need to make sure this is where the organization promotes everybody does it corporate responsibility sustainable management system model organizations today are improving effectiveness and meeting competitive challenges by integrating their environmental health and safety activities with sustainable development in ems and sustainable development a model and comparative studies sustainable development starting from a regulatory compliance base and attempting to merge health safety and environmental concerns into an existing business model the model has the following five components business case includes a review of costs and benefits such as salaries of employees related to the sms expected savings in waste disposal reduced fines 2018 apics eiad icine merece 4237 cpim version 60 2018 edition organizational component management buyin resources and a management structure are required
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following five components business case includes a review of costs and benefits such as salaries of employees related to the sms expected savings in waste disposal reduced fines 2018 apics eiad icine merece 4237 cpim version 60 2018 edition organizational component management buyin resources and a management structure are required for success operational component link the sms to the overall strategic plan establish procedures train personnel and engage stakeholders in the process enterprise resource planning erp and it facilitate business operations internally and externally in the supply chain monitoring and audits review sms performance and conformance at regular intervals initiate corrective and preventive actions as required the use of this model is illustrated in the following example regarding glaxo gsk implemented an environmental health and safety management system in the 1990s part of its motivation was to comply with regulations and laws the company found compliance sometimes difficult because it relied on individuals rather than a standardized system development which evaluated the impact rd activities had on natural resources procurement capital expenditures and other areas these areas are controlled by the management system and tracked through audits gsk established a risk oversight and compliance council rocc which coordinates the risk management activities and reports its evaluation of environmental health and safety activities to the executive team the board includes committees that assess audit results sms management and corporate social responsibility gsk began a new certification audit system that scores broad activities and looks at business continuity loss prevention employee health and sustainability it also adopted an erp system aligned with iso certification as defined by the apics dictionary 15th edition certification audits are audits occurring within controls for sustainable performance their impact on your operation the gri sets out the principles and performance indicators organizations can use to measure and report their human rights labor environment and anticorruption practices and outcomes these guidelines were covered in detail in sustainable resource management 4238 cpim version 60 2018 edition stated an adore nketermiiner eben temiied nace section d design concepts and tradeoffs examples of categories that might be of interest to your role can be found in exhibit 4117 note that this table does not include all categories or subcategories of the g4 exhibit 4117 g4 examples categories example employee rights fair compensation reasonable working hours safe working conditions and practices material safety data sheets personal protection devices facility equipment eg ventilation systems training eg emergency response work injury prevention energy and water use type amounts emissions sustainable and nonhazardous materials waste produced and recycled environmental performance fair treatment of employees and due process workplace free of harassment bullying and violent behavior avoidance of conflict of interest bribery fraudulent behavior ethical behavior supplier performance requirements for thirdparty certification site audits control measures internal policies g using sustainable objectives in procurement policies review of requests for capital budget expenditures certification for products and supplies reporting frameworks as internal report cards some of the things within these examples that a manager could be in
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supplier performance requirements for thirdparty certification site audits control measures internal policies g using sustainable objectives in procurement policies review of requests for capital budget expenditures certification for products and supplies reporting frameworks as internal report cards some of the things within these examples that a manager could be in control of material safety data sheets or msds the dictionary defines a material safety data sheet msds as follows a document that is part of the materials information system and accompanies the product prepared by the manufacturer the msds provides information regarding the safety and chemical properties and if necessary the longterm storage handling and disposal of the product among other factors the msds describes the hazardous components of a product how to treat leaks spills and fires and how to treat improper human contact with the product topic 2 techniques of design concepts and tradeoffs as was discussed in topic 1 design principles are classified as product design organizational or plant layout and process design there are many techniques a 2018 apics 4239 es cpim version 60 2018 edition manager might need to utilize to arrive at an appropriate tradeoff given the organizations strategic objectives some of the more common product and process topic the topics have been grouped into five categories continuous improvement design activities work area design activities collaboration and visual techniques mitigating risk and design of experiments continuous improvement design activities continuous improvement differs from other types of organizational improvement initiatives in that they are small manageable improvements that can be planned and implemented in relatively short periods of time continuous improvement design activities that enhance the internal performance and relationships with upstream and downstream customers include collaboration technologies supplier feedback collaboration technologies organizations are realizing that to compete globally they need to effectively source globally with the complexity brought on by rapidly expanding supply chain networks expanding global markets for finished products and facilities around the world supporting those growing markets it has become absolutely essential to the optimal performance of supply chains that all involved parties are completely committed to frictionless supply chain collaboration effective collaboration with supply chain partners requires that your organization share valuable information in real time the most efficient way to do this is through one such technology tool is an erp system the erp systems shared databases provide a holistic view of the impact of tradeoffs between conflicting needs in various parts of the organization and the supply chain information received ona timely basis allows the organization to reduce inventory it also allows the supplier to plan more efficiently another way to manage this is through vendormanaged inventory this can bea push or a pull system the organization can either send their data to the suppliers throughout the supply chain on a regular basis daily weekly monthly and the suppliers then adjust their production to match the changes in demand or alternately a pull system where the supplier checks the amount of sales and from that determines the amount
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either send their data to the suppliers throughout the supply chain on a regular basis daily weekly monthly and the suppliers then adjust their production to match the changes in demand or alternately a pull system where the supplier checks the amount of sales and from that determines the amount of product to be provided this is called supplier 4240 cpim version 60 2018 edition printed on 100 postconsumer waste recycled paper section d design concepts and tradeoffs scheduling the apics dictionary 15th edition defines supplier scheduling as follows a purchasing approach that provides suppliers with schedules rather than with individual hardcopy purchase orders normally a supplier scheduling system will include a business agreement contract for each supplier a weekly or more frequent schedule for each supplier extending for some time into the future and individuals called supplier schedulers also required is a formal priority planning system that works well because it is essential in this arrangement to provide the supplier with valid due dates syn vendor scheduling from customers regarding their needs and experiences now that the organization has listened to the customer and captured their requirements andor feedback what should we do with that information many organizations use the information gathered to define the difference between what is value added versus waste determine new product features by working backwards they start at the desired endproduct and reverse engineer it back to determine the appropriate manufacturing environment later in this topic we will discuss qfd which is a stepbystep technique for ensuring that the voice of the customer is heard throughout the product development process so that the final product fully meets customer requirements supplier feedback another activity that relates to continuous improvement is close supplier partnerships the concept of quality at the source includes receiving quality components from suppliers when evaluating a supplier organizations evaluate specialized product design and development process for developing a working model of a product dictionary in this instance the organization is evaluating both the suppliers design capabilities and their quality system manufacturing process the organization can evaluate the suppliers manufacturing process through data on past performance on similar products conducting a process capability analysis or by completing a quality survey 2018 apics 4244 cpim version 60 2018 edition supplierinputprocessoutputcustomer sipoc is a visual tool for documenting a business process from beginning to end the dictionary defines sipoc as follows a highlevel process map that shows substantial subprocesses in an organization s process together with the structure of the process represented by the suppliers inputs outputs and customers asipoc diagram defines the critical aspects of a process without losing the overall perspective the elements of sipoc include s supplier the entity that provides inputs to a process i input all that is used mostly as variables to produce one or more outputs froma process it is worthwhile to note that infrastructure may not be considered as inputs to a steadystate process since any variability induced by such elements remains fixed over longer periods of
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to a process i input all that is used mostly as variables to produce one or more outputs froma process it is worthwhile to note that infrastructure may not be considered as inputs to a steadystate process since any variability induced by such elements remains fixed over longer periods of time outputs in a sipoc the process steps are shown ata high level o output one or more outcomes or physical products emerging from a process c customer the entity that uses the outputs of a process 1 starting with the center column process the process column is kept simple ideally it lists no more than five steps and each step consists of an action anda subject verbnoun 2 once the team agrees upon how the process has been documented they move on 3 then they work backwards from the center of the diagram to identify the input 4 finally they validate the process map by working with the functions that perform exhibit 4118 sipoc example supplier input process output customer pet store go to pet store open bag puppy eats puppy purchase get bow puppy fertilizes family puppy food flower bed return home fill bowl flower bed put away puppy call puppy the primary objective of sipoc with suppliers is to reduce variation in process output in lean sipoc is often used during the define phase of the dmaic improvement steps 2018 apics 4242 cpim version 60 2018 edition printed an 100 postconsumer waste recycied paper section d design concepts and tradeoffs asupplier quality evaluation is another tool that is used to gather additional feedback capabilities to meet quality requirements on production lots the evaluation of quality activities is quantified by a score some organizations use this survey as part of the selection process whereas other organizations use it as an ongoing evaluation supplier s facility as the organization uses the various evaluation tools to gather feedback on the specifically areas of nonconformance these should include a precise description of the defect ideally these include a sample work area design activities work area design and workplace organization combine several manufacturing and assembly areas organizationally together linked by some sort of storage transportation and handling system the apics dictionary 15th edition defines workplace organization as follows the arrangement of tools equipment materials and supplies according to their frequency of use those items that are never used are removed from the workplace and those items that are used frequently are located for fast easy access and replacement this concept extends the idea of a place for everything the purpose of the work area is to produce product before determining the design of the work area the manufacturing process product type and production layout need manufacturing environment and the work area is a great place to start the manager uses charts to develop standardized work and define the work area examples include production capacity chart used to determine the capacity of the machines within the process standardized work combination table used to
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production layout need manufacturing environment and the work area is a great place to start the manager uses charts to develop standardized work and define the work area examples include production capacity chart used to determine the capacity of the machines within the process standardized work combination table used to identify work elements and the sequence required to design appropriately standardized work analysis chart used to provide the foundation of the layout job element sheets used to outline a group of actions to advance a process one example of work area design that reduces mistakes is the use of cells cells are an arrangement of people machines materials that are ordered in sequence to match 2018 apics 4243 we cpim version 60 2048 edition wiquule carguliun anu uunitrul up uperatung euv choose to utilize virtual cells a virtual cell is defined in the dictionary as follows a logical rather than physical grouping of manufacturing resources resources in virtual cells can be dispersed throughout a facility product mix changes may change the layout ofa virtual cell this technique is used when it is not practical you may recall that in topic 1 we presented another technique that organizations use to make manufacturing more efficient design for manufacturing and assembly the next we examine some of the other impacts on work area design setting specifications the idea behind manufacturing specifications is to define the measurement values which correspond to conforming items that is when the measurement falls within the manufacturing specification then the product can either move to the next step in the organization needs to set specific limits that reflect the functional needs and manufacturing variability for products that fall outside of the setting specifications the loss is the cost to replace the product organizations should keep a close watch on the volume of products that fall outside of the setting specifications standardized work standardized work is critical to lean manufacturing by standardized work we mean work that adheres to several core standards in the case of lean they are as follows takt time for the manufacturing of products based on the rate of customer demand work sequence of the process designed for particular products wip or how much inventory there should be for particular products italso is important to recognize a key principle of standardized work although itis a standard method for making a product it should always be changing through continuous improvement this could result from improvements in production techniques such as setup time and lotsize reduction reduction in reporting and documentation time continuous improvement in workplace design has a major impact on the ability of lean production to meet its quality and production performance goals these improvements might come about because of standardized five ss workplace 2018 apics all rights reserved 4244 cpim version 60 2018 edition printed on 100 postconsumer waste recycled paper section d design concepts and tradeoffs improvements they might also originate as kaizen events based on problems identified and solved using the pdca or
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come about because of standardized five ss workplace 2018 apics all rights reserved 4244 cpim version 60 2018 edition printed on 100 postconsumer waste recycled paper section d design concepts and tradeoffs improvements they might also originate as kaizen events based on problems identified and solved using the pdca or dmaic management cycles the dictionary defines a kaizen event as follows manufacturing program kaizen team should use the following process analyze the current processes and procedures the review should establish and quantify gaps and redundancies in process performance identify problem areas that need to be addressed correct problems and develop to process producers and standards so that the problems do not recur this will include testing the possible new process steps once the new processes have been cleared of all defects the new process should work orientations their flows and layouts no matter what the occasion for continuous improvement might be several techniques can improve workplace design to support improvements in standardized work note that standardized work also is based on principles of motion economy and ergonomics for this reason workplace design needs to address the following the flow of work through choice and improvement of layout design the efficient layout of tools and equipment tools and equipment layout tools and equipment layout should consider three principles economy of motion in obtaining using and returning tools visibility of tools to facilitate finding and selection ergonomics of using lifting and moving of tools and materials from the standpoint of worker efficiency the techniques include minimizing wasted effort in tool use by locating tools in wellmarked and accessible locations accounting for the ergonomic impact of lifting and moving materials and equipment and the needs of workers of different physical traits note the technique of adjusting the location of equipment as necessary workplace layout there are four common workplace layouts as shown in exhibit 4119 2018 apics 4245 cpim version 60 2018 edition islands workers in each island process produce at their own pace and usually as fast as they can islands are connected by forklifts flow volume depends on upstream island s production rate and move schedule connected islands islands processes are connected by conveyers but there is no control over the rate of flow workers still build at their own pace connected islands with full work control islands are connected by conveyers there is visual control over the rate of flow between processes the upstream process stops producing when the downstream process s inbound parts bin is full thus preventing overproduction cells machines are next to each other one piece is made at a time and moved when completed to the next machine there are some benefits to working in cells it is easy for team members to communicate with and help each other instant exhibit 4119 workplace layout islands rx transfer to transfer to cells continuous flow next island nextisland connected send s receive send s receive islands with receive notification notification notification notification full work notification product product product
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it is easy for team members to communicate with and help each other instant exhibit 4119 workplace layout islands rx transfer to transfer to cells continuous flow next island nextisland connected send s receive send s receive islands with receive notification notification notification notification full work notification product product product product worker at work station 2018 apics 4246 cpim version 60 2018 edition sepa aaa printed on 100 vostsonsumer waste recycled paper section d design concepts and tradeoffs changeovers every manufacturing process has periods of time when equipmentis unavailable due to tooling changes material changes part changes program changes or any other changes to production that must be performed while the equipment is stopped this minutes or in a dramaticallyreduced time frame the apics dictionary 15th edition defined singleminute exchange of die smed as the concept of setup times of less than 10 minutes developed by shigeo shingo in 1970 at toyota reducing changeover time unlocks more productive valueadded time for running production another benefit is that by reducing changeover time you can reduce production batch sizes workinprocess wip and inventory simulation and modeling simulation and modeling are considered useful tools in order to study and optimize production processes key terms associated with simulation and modeling as defined simulation 1 the technique of using representative or artificial data to reproduce in a model various conditions that are likely to occur in the actual performance of a system frequently used to test the behavior of a system under different operating policies 2 within mrp ii using the operational data to perform whatif evaluations of alternative plans to answer the question can we model a representation of a process or system that attempts to relate the most important variables in the system in such a way that analysis of the model leads to insights into the system frequently the model is used to anticipate the result manufacturing organizations may use software to make computer models of manufacturing systems to analyze and test the system design this is often done at various throughput volumes and with various pieces of the system integrated at a discrete event simulation is a type of computer simulation that does not require the and quickly test the effects of changes discrete event simulation endeavors to replicate situations with distinct recognizable events and operations it is used to help understand relationships among inputs outputs and process variables a prime 2018 apics 4247 cpim version 60 2018 edition automation simulators to test new cockpit designs technology has changed the nature of manufacturing previously manufacturing was all done by hand by people now that computers and technology have penetrated the industry automation has become the competitive advantage in today s manufacturing world automation has allowed for companies to mass produce products at outstanding speeds and with great repeatability and quality automated manufacturing tools used to improve process design as defined by the drawing and storage of designs programs complete the layout geometric transformations projections rotations magnifications and interval crosssection views of
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world automation has allowed for companies to mass produce products at outstanding speeds and with great repeatability and quality automated manufacturing tools used to improve process design as defined by the drawing and storage of designs programs complete the layout geometric transformations projections rotations magnifications and interval crosssection views of a part and its relationship with other parts direct and control production equipment in the fabrication of manufactured computer integrated manufacturing cim the integration of the total manufacturing organization through the use of computer systems and managerial philosophies that improve the organization s effectiveness the application ofa computer to bridge various computerized systems and connect them into a coherent integrated whole for example budgets cadcam process controls group technology systems mrp ii and financial reporting systems are linked and interfaced manufacturing execution systems mes programs and systems that participate in shop floor control including programmed logic controllers and process control computers for direct and supervisory control of manufacturing equipment process information systems that gather historical performance information then generate reports graphical displays and alarms that inform operations personnel what is going on in the plant currently and what occurred during a very short history into the past quality control information is also gathered and a laboratory information management system may be part of this configuration to tie process conditions to the quality data that is generated causeandeffect relationships can thereby be determined the quality data at times affects the control parameters that are used to meet product specifications either dynamically or off line enterprise resource planning erp framework for organizing defining and standardizing the business processes necessary to effectively plan and control an advantage an erp system provides extensive databanks of information including 2018 apics 4248 cpim version 60 2018 edition section d design concepts and tradeoffs master file records repositories of cost and sales financial detail analysis of product and customer hierarchies and historic and current transactional data benefits of automated manufacturing design tools include increased production productivity increased efficiency and improved product quality automation also applies to inspection and testing automated inspection techniques have been used for electronic testing mechanical gauging chemical analysis and nondestructive testing to name a few properly designed and programmed automated inspection and gauging systems are very fast accurate and repeatable one example of automated inspection is machine vision machine vision cameras can products or assemblies produced in as little as one second precision laser sensors provide micronlevel measurement accuracy without even contacting the part employee training when it comes to manufacturing schedules are constantly being shifted and moved important aspects to assist with efficient scheduling is the ability to shuffle priorities improvement two methods often used to create complementary skills are job rotation and crosstraining job rotation allows employees to move or rotate between two or more jobs the objective is to expose employees to different experiences anda wider variety of skills and crosstrain them crosstraining is improving employee proficiency levels in roles outside their current responsibilities both methods take advantage of an
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and crosstraining job rotation allows employees to move or rotate between two or more jobs the objective is to expose employees to different experiences anda wider variety of skills and crosstrain them crosstraining is improving employee proficiency levels in roles outside their current responsibilities both methods take advantage of an opportunity for employees to become a more flexible and valuable resource according to juran in juran s quality handbook there are four reasons why training programs fail timeliness training is not provided when the actual knowledge or skill will be method the training relies too heavily on lecture versus handson experience understand behavior 2018 apics 4249 cpim version 60 2018 edition collaboration and visual techniques cell teams are often used in lean manufacturing they are small teams usually five to ten people which are crosstrained and collaborate to meet the daily team goals teams like this often use direction observation or visual management as one of their tools to solve problems exhibit 4120 shows examples of techniques used in visual management exhibit 4120 visual management techniques practice visual workplace in visual workplaces the principle is that everything a worker needs do his or description and issues this visibility enables the supervisor and workers to see how much wip there visual management dennis lean production simplified triangle seeing as a group production status inventory levels and machine the visual management triangle is defined as follows by michael greif cited in availability knowing as a group delivery commitments goals and schedules management rules acting as a group consensus on rules and objectives involvement in improvement activities organized to support lean production the five ss are used fastidiously to ensure a clear and wellordered workplace we will discuss this concept in more detail later in this module visual system a visual system consists of visual devices that share information give instructions or limit actions visual indicator gives information such as the location of a tool visual signal tells you that an action is necessary such as a kanban signal or signal on a board that a linked workstation needs assistance or the line will have to stop visual control limits behavior such as a square painted on the floor to indicate where a bin of parts should be placed guarantee allows a correct response only visual communication problemsolving a3 report as it is being developed this highly visual and there are many examples of visual communication succinct report is passed among team members for them to comment or points of view and gain consensus on a solution visual reporting key status reports are on display in visible locations on the shop floor 2018 apics 4250 cpim version 60 2018 edition section vd design concepts and radeoffs reporting practice visual workplace examples include the following description and issues daybythehour frequently reports on takt time so workers can regulate their work firsttime through total units produced less rejects and returns as recorded operational equipment effectiveness reports hourly production quantities at earlier in this module we
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concepts and radeoffs reporting practice visual workplace examples include the following description and issues daybythehour frequently reports on takt time so workers can regulate their work firsttime through total units produced less rejects and returns as recorded operational equipment effectiveness reports hourly production quantities at earlier in this module we discussed providing feedback to team members and the importance of ensuring that it is timely concise and only for those tasks the team member can control mitigating risk bathtub curve it is difficult to estimate failures as failure occurrences can vary over time failures tend to occur in three phases over time and usually produce a curve that looks like a failures tend to occur in three phases over time infant mortality early life failures occur early often due to defective parts or normal life failure rates typically are low but do occur randomly wearout failure rates rise because of part wear and aging the bathtub curve is generated by mapping the rate of early infant mortality failures when first introduced the rate of random failures with constant failure rate during its normal life and finally the rate of wearout failures as the product exceeds its design lifetime exhibit 4121 shows an example of a bathtub curve as failures are charted over time several types of patterns emerge 2018 apics all riohts reserved 4251 cpim version 60 2048 edition biitieeicl nih re sneiahiesiensiinaas iain pail wad exhibit 4121 bathtub curve example curve 3 typical service failure curve 2 more a random failure failure rate wearout stages infant normal wear out mortality life analysis as follows system that are most critical to uninterrupted and safe operation this analysis may include failure mode effects analysis determining the result of component failure interactions toward system safety and techniques for human error prediction the deductive analysis starts with a generic conclusion from there it attempts to determine the specific causes of the conclusion by building out a logic diagram that is called a fault tree an example is shown in exhibit 4122 exhibit 4122 fault tree analysis 2018 apics 4252 all rights reserved fault tree analysis fault tree analysis fta is acommonly used method that analyzes system reliability maintainability and safety the apics dictionary 15th edition defines fault tree cpim version 60 2018 edition printed on 100 postconsumer waste recycled paper section ld design concepts and tradeoffs this has also been called taking a topdown approach fault tree analysis is used to identify potential causes of system failures before the occurrence of the failure using calculations include system quantitative reliability and maintainability information such as the failure rate failure probability and repair rate after completing an fta your efforts can be focused on improving system reliability and safety quality function deployment qfd was introduced earlier in this section as focused methodology for carefully expectations it is also a tool used to mitigate risk by listening closely to customer requirements and translating them into plans to produce specific products capturing the voice of the customer
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system reliability and safety quality function deployment qfd was introduced earlier in this section as focused methodology for carefully expectations it is also a tool used to mitigate risk by listening closely to customer requirements and translating them into plans to produce specific products capturing the voice of the customer leads to products and services which give total customer satisfaction and it builds the knowledge base of the company uses of multidisciplinary teams enforces teamwork establishes common objectives and facilitates consensus improved planning priorities are established correctly and resources better employed qfd is a metatechnique that brings together many other techniques such as root cause analysis current and target conditions implementation followup plans concurrent engineering once product and process features have been defined by the qfd process the next step is to design the product and the process within an organization this means forming a multifunctional design team or crossfunctional team of representatives from various departments to participate in concurrent design of product and process design according to the dictionary concurrent design is also referred to as participative designengineering ensuring that internal customer and external customer needs are met process design changes compressing time from product concept to market introduction 2018 apics all rights reserved 4253 cpim version 60 2018 edition printed on 100 postconsumer waste recycled paver prevention of quality and reliability problems cost reduction involving external customers in concurrent engineering teams is a widelyused process design two techniques that support concurrent engineering include early manufacturer involvement and early supplier involvement defined in the dictionary as follows early manufacturer involvement the process of involving manufacturing personnel early in the product design activity and drawing on their expertise insights and knowledge to generate better designs in less time and to generate designs that are easier to manufacture early involvement of manufacturing field service suppliers customers and so on means drawing on their expertise knowledge and insight to improve the design benefits include increased functionality increased quality ease of manufacture and assembly ease of testing better testing procedures ease of service decreased cost and improved aesthetics early supplier involvement the process of involving suppliers early in the product design activity and drawing on their expertise insights and knowledge to generate better designs in less time and designs that are easier to manufacture with high quality these terms lead us to our next discussion of designing for manufacturability design for manufacturability and maintainability design for manufacturability and maintainability are two techniques that benefit from qfd and other forms of customer input and provide value to customers the dictionary defines these terms as follows design for manufacturability simplification of parts products and processes to improve quality and reduce manufacturing costs design for manufacture and assembly dfma a product development approach that involves the manufacturing function in the initial stages of product design to ensure ease of manufacturing and assembly meets fitness for use quality and product salability requirements meets cost criteria 2018 apics 4254 cpim version 60 2018 edition all rishts reserved printed
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and assembly dfma a product development approach that involves the manufacturing function in the initial stages of product design to ensure ease of manufacturing and assembly meets fitness for use quality and product salability requirements meets cost criteria 2018 apics 4254 cpim version 60 2018 edition all rishts reserved printed on 100 postconsumer waste recycled paper section d design concepts and tradeoffs from the customers viewpoint design for manufacturability in its own operations needs to start with part or subassembly specifications to its suppliers suppliers then can ensure that parts supplied to customers are compatible with the latter s assembly strategy as well postponement of assembly or packaging to the last possible supply chain location may be employed in order to shift product differentiation closer to the customer design for maintainability also called design for service addresses another important issue the simplification of parts and processes to improve the aftersale reliability versus maintainability if availability is the requirement either reliability or maintainability could be the design choice modular versus nonmodular construction modular design is more expensive but diagnosis and repair are easier repair versus disposal the latter could be preferred if the replacement cost is builtin versus external test equipment builtin is expensive but reduces diagnostic time person versus machine design could enable maintenance by skilled technicians using generalpurpose equipment or be highly engineered and require special instrumentation and repair facilities modular design modular design is a design approach that subdivides a productprocess into smaller parts that can be independently created and then assembled the dictionary defines modular design strategy as follows the strategy of planning and designing products so that components or produce multiple configurations of a product automobiles and personal computers are examples of modular designs if you were to compare modular versus nonmodular construction in most instances modular design is more expensive but diagnosis and repair are easier another benefit of modules design is the reduction of the number or parts at final assembly the flexible assembly system was developed using modular design and group technology concepts 2018 apics all rights reserved 4255 cpim version 60 2018 edition printed on 100 postconsumer waste recycled paper feature postponement postponement is a technique that can be applied to products that are offered with a features and options the generic units are then stocked at a warehouse or distribution center until they are requested when a customer requests the product with specific features then the final assembly occurs benefits of feature postponement include reduction in inventory improved response time to customer requests this technique requires a high amount of cooperation and data transfer across the supply chain design experiments to measure process variables design of experiments doea process for structuring statistically valid experiments is defined in the apics dictionary 15th edition as follows management technique used to evaluate the effect of carefully planned and controlled changes to input process variables on the output variable the objective is to improve production processes doe studies the impact of input independent variables on
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statistically valid experiments is defined in the apics dictionary 15th edition as follows management technique used to evaluate the effect of carefully planned and controlled changes to input process variables on the output variable the objective is to improve production processes doe studies the impact of input independent variables on output dependent variables other uncontrolled factors such as the time of day or shift may affect the results these are called noise factors because they are not controlled to minimize the impact of noise factors experiments can be designed with the following tools of experimentation blocking runs to be performed in each planned group or block are randomly selected a random sample is a selection of observations taken from all the observations ofa phenomenon in such a way that each chosen observation has the same possibility of selection dictionary randomization the treatments are assigned by pure chance repetition observations are repeated product or process design and used in quality management to improve products and taguchi methodology for experimental design defined in the dictionary as follows 2018 apics all richte reserved 4256 cpim version 60 2018 edition printed on 100 pestconsumer waste recycled paper section d design concepts and tradeoffs a concept of offline quality contro methods conducted at the product and process design stages in the product development cycle this concept expressed by genichi taguchi encompasses three phases of product design system design parameter design and tolerance design the goal is to reduce quality loss by reducing the variability of the product s characteristics during the parameter phase of product development taguchi refers to quality control in design as offline control his approach has three purposes focus on the robustness of the product make the product correctly despite the variation in materials and processes design the product to be insensitive to the common cause variation that exists in minimize variation around a target value quantify the effects of deviation 2018 apics all rights reserved 4257 cpim version 60 2018 edition piiiiinek can pore wink arias ae acini daria aare progress check the apics cpim examination read each question and respond in the space provided answers and page references follow the progress check questions a define the best way to gather market research b carry the voice of the customer throughout product design and development c define statistical controls for product design d analyze competitors which of the following is the least likely to result from using certified suppliers a increased cost of managing supplier quality b reduced supplier risk c reduced cost of quality d delivery of quality products and services the following are true for qualifying the manufacturing process except for which statement a ituses process capability analysis of key product characteristics in a preproduction environment b it uses process capability analysis of key product characteristics in a product test environment c ituses historical data ona supplier s process capability analysis for similar products d ituses quality process surveys of a supplier s quality management and assurance system a
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key product characteristics in a preproduction environment b it uses process capability analysis of key product characteristics in a product test environment c ituses historical data ona supplier s process capability analysis for similar products d ituses quality process surveys of a supplier s quality management and assurance system a less vulnerability to supply disruptions b more cooperation of new product development c greater economies of scale d upward pressure on price if there are few other buyers abuyer asksa supplier to design a product to the buyers specifications which of the following steps a detailed product requirements b approval of test procedure c analysis of test results which of the following is a supply chain quality planning technique a supplier quality surveillance b value engineering analysis c use ofa crossfunctional quality improvement team d supplier evaluation of samples 2018 apics 4258 cpim version 60 2018 edition printed on 100 postconsumer waste recycled paper section d design concepts and tradeoffs a perform process capability analysis b determine appropriate contracting approach c define numerical requirements d define the supplier quality system a priority is not inherently established within a lean pull system b a work center takes its cue to produce output from the previous work center c itcan operate autonomously and has low dataprocessing and communication expenses d the needs of warehouses are considered within a lean system 2018 apics 4259 cpim version 60 2018 edition progress check answers are incorrect because qfd does not define how to gather market research or set statistical controls nor analyze competitors p 4194 2 a answers bc and dare benefits of supplier certification answer a is incorrect because costs of managing supplier quality decrease when using certified suppliers p 4226 3 b manufacturing process capability analysis is not done ina product test environment the product test environment is used for product testing manufacturing process capability analysis is done ina production environment p 4222 4 a more suppliers means less vulnerability answer b is incorrect single sourcing is more likely to produce more cooperation because it is likely to be a reason for entering into a single source relationship answer c is incorrect because greater economies of scale or leverage are likely to occur if purchasing is concentrated in a single supplier answer d is incorrect because if there were few buyers and multiple suppliers the price pressure would be downward p 4220 6 b value engineering analysis is a technique used by the customer or buyer crossfunctional teams during supply chain planning answers a and c are supply chain control activities of such teams and answer d is a supply chain quality improvement technique p 4224 7 aprocess capability analysis is more relevant to qualifying the manufacturing process during supply 8 calean system responds directly to customer demand and use a cellular layout in which flow is continuous and production lead times are short once production begins in response to a customer demand priorities in terms of resource contention are not an issue
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to qualifying the manufacturing process during supply 8 calean system responds directly to customer demand and use a cellular layout in which flow is continuous and production lead times are short once production begins in response to a customer demand priorities in terms of resource contention are not an issue so answer ais incorrect answer b is incorrect because in a kanban system the work center takes its cue from the downstream work center answer d is incorrect as lean production assumes very little finished goods inventory and production is in small lots and flows quickly to customers p 4207 2018 apics 4260 cpim version 60 2018 edition cumulative course bibliography ansoff h igor strategies for diversification harvard business review 1957 apics apics dictionary 15th edition chicago illinois apics 2016 apics detailed scheduling and planning reprints articles selected by the detailed scheduling and planning committee of the apics curricula and certification committee chicago illinois apics 2010 apics execution and control of operations reprints articles selected by the execution and control of operations committee of the apics certification committee chicago illinois apics 2015 apics master planning of resources reprints articles selected by the master planning of resources committee of the apics curricula and certification committee chicago illinois apics 2010 bicheno john and matthias holweg the lean toolbox a handbook for lean transformation 5th edition johannesburg south africa picsie books 2016 chapman stephen n jr tony arnold ann k gatewood and lloyd m clive introduction to materials management 8th edition boston pearson 2017 chase charles demanddriven forecasting a structured approach to forecasting 2nd edition hoboken new jersey wiley sons 2013 day george and paul schoemaker scanning the periphery harvard business review 2005 dennis pascal lean production simplified 3rd edition boca raton florida crc press 2015 epstein marc j and adriana rejc buhovac making sustainability work best practices in managing and measuring corporate social environmental and economic impacts san francisco greenleafbarrettkoehler 2014 g4 sustainability reporting guidelines global reporting initiative httpswwwglobalreportingorginformationg4pagesdefaultaspx hayes robert h and steven c wheelwright link manufacturing process and product life cycles harvard business review january 1979 hayes robert h and steven c wheelwright the dynamics of processproduct life cycles harvard business review marchapril 1979 2018 apics b1 hanes cpim version 60 2018 edition ingram david why would a company have to pick lifo or fifo houston chronicle httpsmallbusinesschroncom wouldcompanypicklifofifo10968html jacobs robert william lee berry d clay whyback and thomas e vollmann manufacturing planning and control for supply chain management new york mcgrawhill 2011 juran jm and ja defeo juran s quality handbook7th edition new york mcgrawhill 2016 kerzner harold project management a systems approach to planning scheduling and controlling11th edition hoboken new jersey wiley sons 2013 kotter john p leading change brighton massachusetts harvard business review press 2012 lewis jared what kinds of companies choose weighted average costing houston chronicle http smallbusinesschroncomkindscompanieschooseweightedaveragecostin g37851html our common future brundtland report oxford oxford university press 1989 owens brian pharmaceuticals in the environment a growing problem the pharmaceutical journal 2015 httpwwwpharmaceuticaljournalcom newsandanalysisfeaturespharmaceuti calsintheenvironmentagrowingproblem20067898article porter
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change brighton massachusetts harvard business review press 2012 lewis jared what kinds of companies choose weighted average costing houston chronicle http smallbusinesschroncomkindscompanieschooseweightedaveragecostin g37851html our common future brundtland report oxford oxford university press 1989 owens brian pharmaceuticals in the environment a growing problem the pharmaceutical journal 2015 httpwwwpharmaceuticaljournalcom newsandanalysisfeaturespharmaceuti calsintheenvironmentagrowingproblem20067898article porter michael the competitive advantage creating and sustaining superior performancenew york free press 1985 ross david distribution planning and control managing the era of supply chain management 3rd edition new york springer 2015 sa8000 certified organizations resources saas httpwwwsaasaccreditationorgcertfacilitieslist simchilevi david philip kaminsky and edith simchilevi designing and managing the supply chain concepts strategies and case studies 3rd edition new york mcgrawhillirwin 2008 shim jae k joel g siegel anique qureshi and nick dauber accounting handbook 6th edition new york barrons educational series 2015 2018 apics b2 cpim version 60 2018 edition slack nigel alistair brandonjones robert johnston and alan betts operations and process management principles and practice for strategic impact 4th edition harlow united kingdom pearson 2015 slack nigel and michael lewis operations strategy london pearson 2015 thompson arthur a margaret ann peteraf john gamble and aj strickland crafting and executing strategy concepts and readings 20th edition new york mcgrawhill education 2015 towards the circular economy accelerating the scaleup across global supply chains world economic forum january 2014 vermeij lotte research recommends how to tackle spread of hivaids by african truckers university of cambridge research 2013 httpwwwcamacukresearchnewsresearchrecommendshowtotacklesprea dofhivaidsbyafricantruckers wallace thomas f and robert a stahl sales and operations planning the howto handbook 3rd edition cincinnati ohio tf wallace and company 2009 2018 apics all richte recernved 83 cpim version 60 2018 edition cumulative course index numerics 2x2 matrix 4156 3pl thirdparty logistics 31823183 a3 problemsolving 4183 4186 abc activitybased cost accounting 1168 abm activitybased management 1170 absorption costing 1164 1165 1168 acceptance sampling 41234124 accounting managerial 1160 rate of return 1157 action messages in material requirements planning software 372 activitybased cost accounting 1168 1170 activitybased management 1170 actual costs 4119 actual demand 27 actual input 495 actual output 495 advanced planning and scheduling inputs 22002201 advanced planning and scheduling systems 21982199 inputs 2200 aggregate inventory 295 aggregate inventory management 315320 aggregate plan 2265 anticipation inventory 39 aoql average outgoing quality limit 4223 appraisal costs 4168 aps advanced planning and scheduling systems 21982199 inputs 2200 outputs 22002201 arr accounting rate of return 1157 assembletoorder 142 1195 1216 214 21492150 2172 21752176 2178 21862189 2273 4647 4198 4200 assets 1138 assignable causes of variation 4120 ato assembletoorder 142 1195 1216 2142 21492150 2172 2175 2176 2178 2186 2189 2273 4647 4198 2160 21692171 2172 audits sustainability 11261127 audits of inventory records 347348 automation 127 1217 1218 4210 4248 available time 31233124 21692171 2172 average outgoing quality limit 4223 b7 basic seven tools of quality 4169 backflushing 350351 backlogs 295 21032104 2120 2120 21752176 backward scheduling 437438 452453 balance sheet 1137 1140 1141 1174 balanced scorecard 112 113 4102 balancing operations 424 bar code 2261 355356 bargaining power 131 base series 229 base
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2172 average outgoing quality limit 4223 b7 basic seven tools of quality 4169 backflushing 350351 backlogs 295 21032104 2120 2120 21752176 backward scheduling 437438 452453 balance sheet 1137 1140 1141 1174 balanced scorecard 112 113 4102 balancing operations 424 bar code 2261 355356 bargaining power 131 base series 229 base stock system 2255 baseline measures 1227 basic seven tools of quality 4169 batch process type 12181219 212 49 2018 apics cpim version 60 2018 edition apics cpim learning system bathtub curve 4251 benchmark measures 1196 benchmarking 11961197 benefitcost analysis 42334234 bill of labor 2195 bill of resources 21282129 2194 billofmaterial explosion 373 378384 bills of distribution 2250 2258 2260 bills of material 2151 2155 2186 2189 365366 bills of material phantom 366 blanket purchase orders 3191 block scheduling 454 blocking 4256 bods bills of distribution 2250 2258 boms bills of material 2151 2155 2186 2189 365366 bottleneck 1239 497498 bottom line 1137 bottomup replanning 2259 bpr business process reengineering 1242 brainstorming 4186 brand identity 188 breakeven be analysis 1172 breakeven point 3190 breakthrough improvement 1228 breakthrough process improvement 4137 bucket less material requirements planning bucketed system 2259 budget 1152 budgeted capacity 393 budgeting methodologies 3155 bulkbreak 2217 2223 bullwhip effect 12091212 2251 business plan 1136 business process reengineering 1242 1243 bestcost provider 195196 199 businesstobusiness 191 3179 byproduct 3101 cad computeraided designs a048 cam computeraided manufacturing 4248 capabilities 134135 146 capability index 4126 capacity 1185 1198 393 457459 increase 31293130 reducing 31313132 units of measure 3117 3118 capacity available 2130 31233127 capacity change planning 1204 capacity change timing 12021204 capacity control 393 capacity management 2146 393 capacity planning 1198270271 2265 2266 393398 and manufacturing planning and control performance measurement 3134 3135 capacity planning using overall factors 2195 capacity requirements 435 capacity requirements planning 3111 3116 advantages 31 123113 and master scheduling 3115 and resource contention 3114 inputs 31193122 455 limitations 31133115 model 3111 3112 performance measurement 3134 3135 secondary constraints 3115 capacity strategy 1198 2018 apics 12 cpim version 60 2018 edition lead 1202 operation size 1201 1202 tracking 1202 1203 capacity budgeted 393 capacity changing 1202 capacity demonstrated 3126 capacity location 1205 capacity rated 31233126 capacity safety 3127 capacity theoretical 393 capacityconstrained resource 497498 capital budget 1154 1155 tools 1155 1160 cash conversion cycle 1150 cash flow discounted 1158 cashtocash cycle time 1151 270 275 causeandeffect diagram 4170 4171 cellular layout 12191220 414415 4203 cellular manufacturing 474 centerofgravity location method 2237 central point scheduling 439 central tendency 4122 certificate of compliance 4206 certification audits 4238 certified supplier 42264227 change agents 4141 change control process 31633164 change drivers 21652166 change management 1254 1259 agility 1254 1258 coalitions 1257 process 1256 1258 resistance 1255 1256 sources of change 1254 1255 vision 1257 changeover 327 4247 chase production strategy 21002101 21052106 21202124 2161 check sheet 4170 cim computer integrated manufacturing circular economy 1120 closedloop material requirements planning closedloop thinking 4233 cm contribution margin 1171 1172 cogs cost of goods sold 1139 1144 1146 cumulative course index collaboration technology 42404241 collaborative planning forecasting
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1257 changeover 327 4247 chase production strategy 21002101 21052106 21202124 2161 check sheet 4170 cim computer integrated manufacturing circular economy 1120 closedloop material requirements planning closedloop thinking 4233 cm contribution margin 1171 1172 cogs cost of goods sold 1139 1144 1146 cumulative course index collaboration technology 42404241 collaborative planning forecasting and common causes of variation 4120 common parts bill of material 2187 competitive strength 179 computer integrated manufacturing 4248 computeraided design 4248 computeraided manufacturing 4248 concurrent engineering 31803181 4253 conformance 4120 consensus building 41574158 consignment inventory 3192 constraint management 497498 constraintbased scheduling 2201 constraints 418419 426 465 497498 constructive pressure 1251 contingency planning 1264 continuous improvement 1228 1230 31833184 474 4207 42444245 design activities 42404243 employee training 4249 process 12291230 continuous process control 431 continuous process improvement 4207 continuous process type 12181219 212 continuous replenishment strategies 344 contracts 31883189 contribution margin 1171 1172 control charts 41214123 41754176 limits 41214122 coproduct 3101 core competencies 136 1208 core processes 136 corporate culture 19 corporate social responsibility 42364238 corporate strategy 115 corrective action 4109 2018 apics cpim version 60 2018 edition apics cpim learning system cost leader 187 cost of goods sold 3180 cost classifications index 11611164 absorption 164 1165 accounting 4118 activitybased 1168 1170 actual 4119 appraisal 4168 capacityrelated 21002101 2175 carrying 320321 322 classifications 1161 1164 control 4118 direct 1163 drivers 189190 11681170 fixed 1163 indirect 11631164 intangible 4134 inventory 2126 labor 1162 manufacturing overhead 1162 materials 1162 of goods sold 1139 1144 operational 4117 4119 opportunity 1154 320321 overhead 1164 period 1162 prevention 4168 product 1162 production planning 21252127 quality 41344135 41674169 risks 320321 standard 11701171 4119 storage 320321 sunk 1155 transportation 22292230 4104 variable 1163 1165 4118 variance 11701171 workforce changes 2125 costbenefit analysis 42334234 absorption 1164 1165 operation 1167 1168 process 1167 variable 1165 costvolumeprofit analysis 11711174 count point 495 cpfr collaborative planning forecasting and replenishment 251254 cpm critical path method 31513152 cpof capacity planning using overall factors cradle to cradle 4235 critical characteristics 4221 critical path method 3151 3152 critical ratio 437 critical to quality characteristics 4221 crm customer relationship management 183 255261 271272 4216 crossdocking 3182 crossfunctional quality improvement teams crossfunctional team 4152 crosstraining 31293130 476 4150 4152 4249 csr corporate social responsibility 4236 ctq critical to quality characteristics 4221 culture organizational 1251 1254 cumulative availabletopromise 2171 cumulative lead time 375 curve fitting 223 customer feedback 2272 2274 customer identification 4216 4217 customer performance measurement 4217 customer relationship management 183 255261 271272 4216 customer segmentation 256 258 259260 customer service 119 128 263267 2268 22722274 4104 level 259260 life cycle 258259 lifetime value 260261 tradeoffs 2103 2104 customer value perception 193 customersupplier relationship 1212 2018 apics 4 cpim version 60 2018 edition
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