Total Quality Management (TQM) Philosophy ✔✔1. customer focus 2. continuous improvement 3. employee empowerment 4. use of quality tools 5. product design 6. process management 7. managing supplier quality Process Capability Index (Cpk) ✔✔Basic function of Six Sigma. Measures the process potential and performance of processes. The higher the range of Cpk, the improved is the ability of the process to complete its necessities. Uses both the process variability and the process specifications to determine whether the process is "capable." Six Sigma ✔✔A disciplined, data-driven approach and methodology for eliminating defects (driving toward six standard deviations between the mean and the nearest specification limit) in any process - from manufacturing to transactional and from product to service. Design Capacity ✔✔The theoretical maximum output of a system in a given period under ideal conditions. Effective Capacity ✔✔The capacity a firm expects to achieve given its current operating constraints. Location Analysis ✔✔proximity to customers, transportation, source of labor, community attitude, proximity to suppliers, and many other factors. Line Processes ✔✔A type of process used to produce a large volume of a standardized product. Batch Processes ✔✔A type of process used to produce a small quantity of products in groups or batches based on customer orders or specifications. Project Processes ✔✔A type of process used to make a one-at-a-time product exactly to customer specifications. Continuous Processes ✔✔A type of process that operates continually to produce a high volume of a fully standardized product. Bottleneck ✔✔Longest task in the process. Flexible Manufacturing System (FMS) ✔✔A type of automated system that combines the flexibility of intermittent operations with the efficiency of continuous operations. Output/Input Control ✔✔A technique for monitoring the flow of jobs between work centers. Value-Added ✔✔The net increase created during the transformation of inputs into final outputs. Hybrid Layouts ✔✔Layouts that combine characteristics of process and product layouts. Relationship Chart (REL) ✔✔Table that reflects opinions of managers with regard to the importance of having any two departments close together. Rectilinear Distance ✔✔The shortest distance between two locations using north-south and eastwest movements. From-To Matrix ✔✔Table that gives the number of trips or units of product moved between any pair of departments. Block Plan ✔✔Schematic showing the placement of resources in a facility