Global Supply Chain Midterm Fall I 2020

Why do you need to know how your customers perceive value?

Because customers make purchase decisions based on the value they expect to obtain

Computer Revolution

Computers made it possible for complex algorithms to be applied routinely in situations where judgment and guessing previously prevailed

Which quality of service dimension would you be assessing when asking "does the product conform to design specifications?"

Conformance

DMAIC Methodology

Define, Measure, Analyze, Improve, Control

________________ and _______________ are the two types of decisions you need to make to achieve world-class operations management.

Design and control

Rules for quality dimensions:

Expectations matter and experience matters

General Motors has long set the gold standard for working collaboratively with suppliers. In fact, GM's collaborative approach for finding news ways of working together set the stage for modern supply chain management.

False- they pit their suppliers against each other

The Ishikawa cause and effect diagram is also known as:

Fishbone diagram

Control Decisions

Forecasting, inventory control, scheduling, quality control

Who created the scientific method?

Fredrick Taylor

What are the five value dimensions?

Innovation, delivery, agility, cost, quality

Who coined the term "moment of truth"?

Jan Carlson

Who made customer service fashionable?

LL Bean

Most managers are engaged in passive scanning; however, they fail to turn their scanning activities into meaningful organizational ________.

Learning

What is guardbanding?

Setting product specifications tighter than they need to be

Fishbone diagram

a visual aid that helps organize cause and effect relationships for "things gone wrong"; helps you identify isolate, and break down the major causes of a variation

What practices/techniques helps to eliminate poorly designed jobs that alienate workers, reduce productivity, and stifle learning?

-Job Enrichment -Job Enlargement -Employee Involvement

Which of the following accurately describe a Supply Chain map?

-To read a SC map, you start with the focal firm -Suppliers are mapped on the left side of the focal firm -Customers are depicted on the right side of the focal firm. -Suppliers and customers are organized in columns called tiers.

what is an indication that a process is out of control?

-a single point plots outside the control limits -two out of the three successive points are on the same side of the centerline and farther and 2 from it -a run of eight in a row are on the same side of the center line -any consistent or persistent pattern

Which of the following is not one of the steps in the DMAIC quality methodology? -act -improve -define -control -measure

-act

What are ways to manage the fact that services are perishable?

-build capacity for peak demand and live with excess capacity during off-peak demand -Build capacity for average demand and be willing to lose sales when demand is higher -Try to influence consumer behavior to match demand to supply—e.g., discounts for non-peak times.

What are the priciples of TQM supported by ISO 9000?

-customer focused -process approach -continuous improvement -fact-based decision making

By changing the manufacturing environment, it is possible to achieve higher levels of performance across all value dimensions. What are critical aspects of improving the environment?

-increase process visibility -better share of information -build a flexible workplace

Which of the following is NOT a process in the SCOR method?

-plan -make -source -deliver -return A: they are ALL SCOR processes- used to improve operations and enhance value creation

Which "Quality of Product" dimension would you be assessing when asking the question, "how knowledgable and courteous are the service employees and how well do they convey trust and confidence?'"

Assurance

The goal for the size of the Santa on a Christmas Santa cup is 3.5 cm with an acceptable tolerance of ± 0.9 cm. The grand mean of the size of the Santa from the samples that were taken is 3.4 cm and the standard deviation is 0.28 cm. What is CP?

1.071

What Cpk indicates that your process can meet desired quality levels?

1.5 or higher; in anything lower, your process suffers too much variability

Services account for __% of the US economy?

80%

Order qualifier

A dimension used to screen a product or service as a candidate for purchase. ex) cost and quality

Scientific Method

A series of steps followed to solve problems including collecting data, formulating a hypothesis, testing the hypothesis, and stating conclusions.

Operations Management

A specialized area in management that converts or transforms resources (including human resources) into goods and services. And creates value

Which of the following is a critical decision? -Product design -process design -facility layout -facility location -scheduling

A: All BUT scheduling are correct

Which of the following are reasons why managers often struggle to work closely together to create customer value? -Managers focus on improving their own firm's stock price. -Metrics are short term and local—i.e., they focus on the here and now. -Managers are too busy putting out fires to learn how to implement collaborative business models. -Most managers don't possess collaboration skills.

A: All of the above

Which of the following are potential sources of variation in the Ishikawa cause-and-effect diagram? -Measurements, environment and prices -Materials, measurements and environment -Environment, prices and materials -Prices, and materials and measurements

A: materials, measurements and environment

Which of the following is not a dimension of quality? -features -conformance -performance -traceability -reliability

A: traceability

place utility

Adding value to products by having them where people want them.

what are examples of a transformation process?

Art, cooking, DIY projects

PDCA cycle

Plan, Do, Check, Act

As you look at a SC map, you can be confident you are looking at a winning SC if it depicts the right _________ and the right _________.

Players; Relationships

What are the four strategies to reduce cost?

Process improvement, automation, offshoring and outsourcing

Design Decisions

Product design, process design, facility layout, facility location

Which "Quality of Product" dimension would you be assessing when asking the question, "Does the product consistently perform as it is supposed to over time?"

Reliability

Which quality of service dimension would you be assessing when asking "how pleasing is the physical appearance of the physical facilities, equipment, personnel, and communication materials?

Tangibles

To build a control chart, you need 3 pieces of data:

Target, variability, confidence

Five Why Analysis

Technique that asks "Why" multiple times will build a casual chain leading from problem to root cause (1-41)

Transformation Process

The process that converts resources into finished goods and services

What is true regarding the reorder point?

The reorder point compares the amount of inventory currently available with the rate of demand.

What company created the lean six sigma paradigm shift?

Toyota

How well you schedule production will determine your costs as well as your ability to deliver what your customers want—when they want it!

True

Proactive (and effective) scanning requires that you challenge your colleagues' thinking—and invite them to push your own thinking. Otherwise, you are likely to miss out on creative, but robust interpretations of the data.

True

T/F: As an operations manager, you need to remember Darwin's Law: Only the adaptable survive. After all, Constant adaptation is the only way to establish and maintain world-class operations.

True

T/F: In facility layout situations, where you position equipment defines the flow of materials and the number of times you must handle each item. The ideal layout minimizes movement and handling, creating a simple and smooth flow of materials through the facility.

True

Possession Utility

Usefulness created when ownership of a product is transferred from the seller to the user

An influential figure in Total Quality Management

W Edward Dennings

A control chart that is constructed using a mean is...`

X bar

facility location

You want to locate your operations in places that give you access to either factor inputs (e.g., low-cost labor or materials) or consumer markets.

Order winner

a criterion customers use to differentiate the services or products that they purchase from the ones that they decide against ex) delivery, agility and innovation

Supply Chain Management

a management system that coordinates and integrates all of the activities performed by supply chain members into a seamless process, from the source to the point of consumption, resulting in enhanced customer and economic value

Process capability analysis

a tool for assessing the ability of a process to consistently meet or exceed a product's design specifications

Options for improving process capability

change the specifications, modify the process, or outsource

A control chart that measures specific attributes measures what?

characteristic that has discreet value and can be counted

order losers

characteristics you have that may drive customers away ex)

Process Approach TQM

company focuses on managing processes and inputs and outputs; leads to reduced costs

Mutually beneficial supplier relationships TQM

company should build strong relationships with suppliers; leads to optimization of costs and resources

Leadership TQM

company should have a clear objective and have everyone involved; leads to increased employee engagement and motivation

Customer Focused TQM

company should understand customers and seek to meet or exceed their expectations; can lead to increased customer loyalty revenue

What is the definition of quality?

conformance to specifications; whether or not a product lives up to the customers expectations

control decisions

day-to-day decisions you make that define how you make things. Your focus is to have the materials you need, move them efficiently through the production process, and assure that your transformation processes deliver exceptional quality.

Systems approach to management TQM

decisions are made holistically knowing that one change causes another; leads to a better understanding of key-value adding activities and how they tie in with others

Involvement of People TQM

employees at an organization are the most valuable assets; leads to employee motivation and innovation

facility layout

focuses on how you will use your plant and equipment to make things efficiently. Ideally, you want to have everything within reach to minimize movement.

Cost of quality

it costs less to make a quality product than it does to fix poor quality products - Philip Crosby

Fact-based decision making TQM

leads to informed decisions and clarity

The bullwhip effect

occurs when distorted product-demand information ripples from one partner to the next throughout the supply chain

_________________ and __________________ are primarily responsible for creating form utility.

operations and purchasing

A control chart that is constructed using a proportion is called a:

p chart

What tool would you use to identify the most-likely cause of a problem?

pareto chart

what helps make your priorities visible by showing the frequency at which each error occurs?

pareto chart

which of the following are potential sources of variation in a cause and effect diagram?

people methods machines materials A: all of the above

What are the 8 factors of quality?

performance, features, reliability, conformance, durability, serviceability, aesthetics, and perceived quality

Eight quality dimensions of products

performance, features, reliability, conformance, durability, serviceability, aesthetics, perception

the total cost of quality framework breaks out quality costs into what four categories?

prevention, appraisal, internal failure costs, and external failure costs

To consistently achieve quality at the source, you should focus on:

prevention, personal responsibility, and standardization

Affective level

process emotion

Which of the following is not one of the core value dimensions? -cost -agility -process improvement -quality -delivery -innovation

process improvement

Cognitive level

process information

Lean Six Sigma

produce high-quality products at low costs, quashing the belief that a tradeoff always exists between quality and costs.

How to B2C customers shop for a better deal using the internet?

product research, comparison shopping, and post-purchase evaluation

What do you need to do to be six sigma certified?

show you are an effective project manager and participate in quality improvement projects

Five quality dimensions of services

tangibles, reliability, responsiveness, assurance, empathy

With respect to control chart logic, processes that are designed to produce to a specific quality number is called:

target

Time Utility

the increase in customer satisfaction gained by making a good or service available at the appropriate time

Form utility

the value producers add to materials in the creation of finished goods and services; turning inputs into outputs

Continuous Improvement TQM

there will always be room for improvement no matter how well an organization is doing; leads to increased ability to embrace new opportunities and be adaptable

by investing in prevention and appraisal costs, your goals is:

to identify and eliminate causes of problems before they occur

With respect to control chart logic, processes performed that include some variation is called?

variability

Six sigma is built on what critical fact?

variability in a process produces defects, error, and waste

Statistical process controls measure what?

variables and attributes

What is a utility?

what a product or service does; the capacity at which the product performs to the standard that it was built for

Industrial Revolution

when machine power substituted for human power, enabling huge improvements in productivity