MGT 3501 Lecture Notes - Lecture 6: Standard Deviation, Statistical Process Control
Document Summary
Variation from the established limits in a process. Can occur in manufacturing operations, service operations, or measurements. If no buffers exist between workstations, each station is dependent on each other. Results in the entire process being subject to the effects of variability. Ex: station 2 can only produce what station 1 feeds it, station 3 can only produce what station 2 feeds it, etc. If buffers do exist between workstations, each station is no longer dependent on the output of the prior workstation. Minimizes the impact of variability to the process (does not eliminate variability) Ex: allows station 2 to have 20 units. Workers sometimes show up, sometimes they don"t. Sometimes people are tired, sometimes they can work to full potential. Quality of raw material, defect issues can affect the production rate. If one machine goes down, then there"s a backup (can be costly though) If one employee is sick, another person can come over to work from another area.
