Statistics and Risk
Management
Production
Video URL: jukebox.esc13.net/untdeveloper/Videos/Production.mov
Vocabulary List:
Quality Control: The testing of a product or to make sure the product meets
standards.
Quality Assurance: The process in place to assure an organization meets
production standards.
Total Quality Management (TQM): A systematic program focused on
customer satisfaction to ensure production meets standards; involves
assessing all factors involved in production, including human factors,
management, processes, materials, etc. (ASQ, n.d.)
Prototype: A model of a product or process that allows designers and
analysts to test the model before the final version.
Deliverable: The end product of design or production that is ready to go to the
customer or consumer.
Product engineering: The design and development of a product or
commodity.
Process Engineering: The design and development of a method or system
for producing a deliverable.
Production Functions: The inputs, or the resources, materials, and labor that
go into a finished product, and the outputs, or the deliverables or end products
(McGahagan, n.d.).
Defect Rate: The average number of errors in production.
ASQ. (n.d.) Total quality management. Available from http://asq.org/learn-about-quality/total-qualitymanagement/overview/overview.html
McGahagan, T. (n.d.) Production functions. Available from http://www.pitt.edu/~mgahagan/Prodfn.htm
Copyright © Texas Education Agency, 2012. All rights reserved.
1
Resources:
Production Planning and Control
Understanding the planning, management, and control issues involved in
production.
http://www.du.ac.in/fileadmin/DU/Academics/course_material/EP_08.pdf
Total Quality Management (TQM)
This article addresses the seven important principles of Total Quality
Management and provides several additional links for other perspectives
on TQM along with a link to the sites blog on TQM.
http://managementhelp.org/quality/total-quality-management.htm
Quality Control and Quality Assurance
Through this site teachers can access a series of lesson plans and
resources that deal with quality control and quality assurance that they
can use to reinforce other lessons on these topics. Through these
lessons students can learn the importance of quality in modern business,
demands for quality, benefits and costs of maintaining quality standards
and much more.
http://www.bized.co.uk/educators/1619/business/production/lesson/qualcontrol.htm
Operations Scheduling
Explain the different kinds of scheduling operations, describe different
shop loading methods, develop a schedule using priority rules, calculate
scheduling for multiple workstations, and develop a schedule
performance measures.
www.csus.edu/indiv/b/blakeh/mgmt/.../OPM101Chapter15_000.ppt
Copyright © Texas Education Agency, 2012. All rights reserved.
2
Production Practice Test
Name:_____________________
TRUE and FALSE:
1. Introducing new products into the market is as much of a risk management issue as it is a production issue.
A. True
B. False
2. In developing a product production plan, it is a good idea to look at the many risks and identify solutions to
lessen the risk.
A. True
B. False
3. The supply chain does not involve the flow of the product from supplier to end user.
A. True
B. False
4. Gantt charts can be used for production planning.
A. True
B. False
5. Increased production efficiency is not a benefit of scheduling.
A. True
B. False
6. Every employee is responsible for the quality of the product.
A. True
B. False
MATCHING:
A.
B.
C.
D.
E.
Forward Scheduling
Backward Scheduling
Quality Assurance
Quality Control
Total Quality Management
7. __________ Attempts to improve and stabilize production (and associated processes) to avoid, or at least
minimize, issues which led to the defect in the first place.
8. __________ Planning the tasks from the date resources become available to determine the shipping date
or the due date.
9. __________ An approach that organizations use to improve their internal processes and increase customer
satisfaction.
10. __________ Planning the tasks from the due date or required-by date to determine the start date and/or
any changes in capacity required.
11. __________ Emphasizes testing of products to uncover defects and reporting to management who make
the decision to allow or deny product release.
Copyright © Texas Education Agency, 2012. All rights reserved.
3
MULTIPLE CHOICE:
12. The development of a plan to meet demand for a product over a period of time involving the how, what,
when and where is called _________.
A. Product Placement
B. Production Planning
C. Production Standard
D. Product Development
13. The order-at-a-time construction process is sometimes referred to as ____________.
A. Order Based Method
B. Sequential Loading
C. Both A and B
D. Neither A nor B
14. Which of the following is a way companies use forward and backward scheduling:
A. Plan human resources
B. Plan production processes
C. Purchase materials
D. All of the above
15. Which of the following is NOT a way to gather user experiences of a product?
A. Surveys
B. Phone/Email Follow-ups
C. Web Reviews
D. Facebook Like Button
16. When Total Quality Management is implemented correctly, it can lead to:
A. Higher costs for preventative
B. Lower performance
measures
C. An increased number of loyal
D. Lower employee satisfaction
customers
17. Accurate delivery date quotes is a benefit of __________.
A. Scheduling
B. Implementation
C. Quality Control
D. Product Development
18. ____________ is the use of standard measurements in a service or industry for comparison to other
organization in order to gain perspective on organizational performance.
A. Scheduling
B. Benchmarking
C. Quality Control
D. Implementation
19. ___________ is a quality management initiative that takes a very data-driven approach to eliminating
defects with the aim to reach six standard deviations from the desired target of quality.
A. Six Sigma
B. Forward Scheduling
C. Quality Assurance
D. Quality Management
20. When documenting issues in quality control, steps include:
A. Identify statistical patterns
B. Gather employee thoughts
C. Identify statistical significance of
D. All of the above
issues
Copyright © Texas Education Agency, 2012. All rights reserved.
4
Production Practice Test KEY
1. A
2. A
3. B
4. A
5. B
6. A
7. C
8. A
9. E
10.
11.
12.
13.
14.
15.
16.
17.
18.
19.
20.
B
D
B
C
D
D
C
A
B
A
D
Copyright © Texas Education Agency, 2012. All rights reserved.
5
Student Assignment
15.1a Production
Name:_____________________
You are the chief project engineer for a large defense contractor and
your firm has been awarded a contract to build a large component that
will be part of a weapons defense system. The component MUST be in
production (with quality control issues addressed) within 24 months.
You have set up a project management calendar that allots 6 month for
planning, 6 months to set up the plant and acquire materials contracts,
and 6 months to address training requirements, test production, and
address quality issues.
You are an expert in implementing both “Forward Scheduling” and
“Backward Scheduling”.
Select one of these methodologies and explain why you chose the
scheduling you did.
There is no correct method….you just have to be able to justify the
reasons for your choice by describing your company, manufacturing
facilities (including capacity), expertise, and current production schedules
and contracts.
Copyright © Texas Education Agency, 2012. All rights reserved.
6
Student Assignment
15.2a Production Quality Control
Name:_____________________
Total Quality Management (TQM) might be considered more of a religion
that a simple management technique. What we mean by this is that in
your life there are many instances where TQM principles can be applied
to daily living situations.
From the TQM Presentation Slide (7 Concepts of TQM). Identify where
and how some of these concepts could be applied to family, friends,
school, & work. Be creative in your ideas. 
Copyright © Texas Education Agency, 2012. All rights reserved.
7
Explore Activity:
Make a timeline of Deming’s life and accomplishments to display in your
classroom. Your teacher can assign members of your class to find different
kinds of information (personal, professional, etc.) – a Google search should
lead you to a wealth of information (don’t rely on Wikipedia alone!).
Then take one of the above statements and write a one-page paper about
what the statement means.
Challenge – Some of history’s most famous persons in math, science, and
business (even fictional characters!) have also been known for various
artistic talents. In addition to statistics and quality control, Deming was an
amateur musician who composed and arranged music. See what you can
find, including copies of some of his original work.
1. Create constancy of purpose toward improvement of product and service, with aim
to become competitive and to stay in business, and to provide jobs.
2. Adopt new philosophy. We are in a new economic age. Western management
must awaken to the challenge, must learn their responsibilities, and take on
leadership for change.
3. Cease dependence on inspection to achieve quality. Eliminate the need for
inspection on a mass basis by building quality into the product in the first place.
4. End the practice of awarding business on the basis of price tag. Instead, minimize
total cost. Move toward a single supplier for any one item, on a long-term
relationship of loyalty and trust.
5. Improve constantly and forever the system of production and service, to improve
quality and productivity, and thus constantly decrease costs.
6. Institute training on the job.
Copyright © Texas Education Agency, 2012. All rights reserved.
8
7. Institute leadership. The aim of supervision should be to help people and
machines and gadgets to do a better job. Supervision of management is in
need of overhaul, as well as supervision of production workers.
8. Drive out fear, so that everyone may work effectively for the company.
9. Break down barriers between departments. People in research, design, sales,
and production must work as a team, to foresee problems of production and in
use that may be encountered with the product or service.
10. Eliminate slogans, exhortations, and targets for the work force asking for
zero defects and new levels of productivity. Such exhortations only create
adversarial relationships, as the bulk of the causes of low quality and low
productivity belong to the system and thus lie beyond the power of the work
force.
11. Eliminate work standards (quotas) on the factory floor. Eliminate
management by objective. Eliminate management by numbers, numerical
goals. Substitute leadership.
12. Remove barriers that rob the hourly worker of his right to pride of
workmanship. The responsibility of supervisors must be changed from sheer
numbers to quality. Remove barriers that rob people in management and in
engineering of their right to pride of workmanship. This means, inter alia,
abolishment of the annual or merit rating and of management by objective.
13. Institute a vigorous program of education and self-improvement.
14. Put everybody in the company to work to accomplish the transformation.
The transformation is everybody's job.
Make a timeline of Deming’s life and accomplishments to display in your
classroom. Your teacher can assign members of your class to find different
kinds of information (personal, professional, etc.) – a Google search should
lead you to a wealth of information (don’t rely on Wikipedia alone!).
Then take one of the above statements and write a one-page paper about
what the statement means.
Challenge – Some of history’s most famous persons in math, science, and
business (even fictional characters!) have also been known for various
artistic talents. In addition to statistics and quality control, Deming was an
amateur musician who composed and arranged music. See what you can
find, including copies of some of his original work.
Copyright © Texas Education Agency, 2012. All rights reserved.
9