MGMT 425 Exam 2

Process capability indices cannot be computed from data in an x̅ chart Select one: True False

False

Strategy

The patten of decisions that determines and reveals an organizations goals, policies, and plans to meet the needs of its stakeholders

Strategic Planning

The process of envisioning the organizations future and developing the necessary goals, objectives, and action plans to achieve that future.

Knowledge Transfer

The transfer of knowledge within organizations and the identification and sharing of practices often set high-performing organizations apart from the rest.

Action Plans

Things that an organization must do to achieve its strategic objectives.

Support Processes

Those most important to an organization's value creation process, employees, and daily operations

Production / Delivery processes

Those that create or deliver products

Line Organization

Traditional functional departments

Six Sigma

A business improvement approach that seeks to find and eliminate causes of defects and errors in manufacturing and service processes by focusing on outputs that are critical to customers and a clear financial return for the organization

Process

A process is a sequence of linked activities that is intended to achieve some result Processes involve combinations of people, machines, tools, techniques, materials, and improvements in a defined series of steps or actions. Examples: Machining, mixing, assembly, filling orders, and approving loans

Knowledge Management Systems

A way of capturing and organizing explicit as well as tacit knowledge of how the business operates. Systems-approach to management that facilitates assimilation of new knowledge into the business system and is oriented toward continuous improvement/innovation. Common framework for managing knowledge and some way of validating and synthesizing new knowledge as it is acquired. A culture and values that support collaborative sharing of knowledge across functions and encourages full participation of all employees in the process.

In service applications, the term _____ is generally used to describe a nonconformance. Select one: a. error b. trend c. cycle d. unit

A. Error

Which of the following is NOT an indication of an out-of-control process? Select one: a. Five consecutive points fall on one side of the center line. b. A single point falls above the upper control limit. c. Four of five consecutive points fall within the outer two-thirds region between the center line and one of the control limits. d. Two of three consecutive points fall in the outer one-third region between the center line and one of the control limits.

A. Five consecutive points fall on one side of the center line.

A(n) _____ is a design tool that enables management to study and analyze processes prior to implementation in order to improve quality and operational performance. Select one: a. flowchart b. quality manual c. Likert's scale d. affinity diagram

A. Flowchart

Process capability calculations make little sense if the process: Select one: a. is not in statistical control. b. is not initiated. c. data were taken over a period of time. d. variations are due to common causes.

A. Is not in statistical control.

Which of the following is a major drawback of the bottom-up approach to Six Sigma projects? Select one: a. The projects receive little support and low recognition from the top management. b. The projects are not well suited to the capabilities of the teams as they are chosen by top management who may not be aware of the capabilities of the teams. c. The top managers underestimate the cost and overestimate the capabilities of the team or teams to which the project is assigned. d. The projects are too broad in scope to be completed in a timely manner.

A. The project receive little support and low recognition from the top management.

Internal Benchmarking

Ability to identify and transfer best practices within the organization

Design Process

Activities that develop functional product specifications

Variable Measurements

Apply to dimensional quantities such as length, weight, and time, or any value on a continuous scale of measurement. Variable measurements are generally expressed with statistical measures such as averages and standard deviations.

Appraisal

Associated with efforts to ensure conformance to requirements, generally through measurement and analysis of data to detect non-conformances.

An effective problem-solving process that can easily be adapted to quality improvement stems from _____ concepts pioneered by Alex Osborn. Select one: a. hypothesis testing b. creative-problem solving c. cause-and-effect d. analysis of variance

B. Creative-problem solving

The design activity of process management focuses on: Select one: a. identifying new markets and product opportunities. b. ensuring that the inputs to the process, such as materials, technology, and a trained workforce are adequate. c. maintaining consistency in output by assessing performance and taking corrective action when necessary. d. continually seeking to achieve higher levels of performance.

B. Ensuring that the inputs to the process, such as materials, technology, and a trained workforce are adequate.

Which of the following is a reason why process management is important for organizations? Select one: a. It helps organizations to increase employee morale and commitment to the organization. b. It assists organizations in recruiting the most suitable employees whose values match the culture of the organization. c. It helps organizations to segment customers into natural groups in order to customize products that are better able to meet customers' needs. d. It assists organizations in identifying opportunities for improving quality and operational performance.

B. It assists organizations in identifying opportunities for improving quality and operational performance.

_____ is defined as the fundamental rethinking and radical redesign of business processes to achieve dramatic improvements in critical, contemporary measures of performance, such as cost, quality, service, and speed. Select one: a. Total quality management b. Reengineering c. Benchmarking d. Process mapping Feedback

B. Reengineering

Organization

Basis for strategic planning and design of products, services, and processes.

Strategies

Broad statements that set the direction for the organizations to take in realizing its mission and vision.

After using an ATM machine, Deborah forgets to remove her card from the machine. This is an example of: Select one: a. a treatment error between the server and the customer. b. a customer error at the resolution stage of a service. c. a customer error during an encounter. d. a customer error in preparation.

C. A customer error during an encounter

Variable data are _____. Select one: a. discrete b. nonrandom c. continuous d. not measurable

C. Continuous

Leadership, strategic planning, and _____ categories represent the "leadership triad." Select one: a. measurement, analysis, and knowledge management b. Workforce Focus c. Customer Focus d. Operations Focus

C. Customer Focus

In the Baldrige assessment, _____ refers to the extent to which the approach is applied by a company in addressing item requirements relevant and important to the organization, the approach is applied consistently, and the approach is used by all appropriate work units. Select one: a. results b. process c. deployment d. strategy

C. Deployment

Which of the following is regarded as the best approach to prevent mistakes in a process because of its ability to avoid rework and wastage of time and resources? Select one: a. identifying potential defects and errors and stopping a process before they occur b. Identifying defects and errors soon after they occur and quickly correcting the process c. Designing potential defects and errors out of the process d. Conducting a cost-benefit analysis to determine the impact of stopping a process

C. Designing potential defects and errors out of the process.

In the Baldrige assessment, _____ refers to how a company refines the approach through cycles of evaluation and improvement, encourages breakthrough change to the approach through innovation, and shares refinements with other relevant work units in the organization. Select one: a. integration b. strategy c. learning d. deployment

C. Learning

Cindy Hayes, the CEO of Spurling Inc., wants the organization to focus on measuring product quality, driving process improvement, and cost savings throughout the organization. To this end, she makes different teams and provides champions to sponsor projects, provides training resources, and communicates progress and achievements. The entire plan is integrated into the strategic planning process. Project selections are made based on understanding of the financial as well as the nonfinancial benefits to the organization. Cindy Hayes is practicing the _____ methodology to lower the cost of quality because of its focus on the financial return. Select one: a. Baldrige b. ISO 9000:2000 c. Six Sigma d. Deming

C. Six Sigma

Attribute Measurement

Characterizes the presence or absence of non-conformances in a unit of work, or the number of non-conformances in a unit of work. Attribute measurements often are collected by visual inspection and expressed as proportions and counts.

Process Control

Control - The activity of ensuring conformance to requirements and taking corrective action when necessary to correct problems and maintain stable performance. Control is different from improvement

Control and Improvement

Control should be the basis for organizational learning and lead to improvement and prevention of defects and errors.

External Failure

Costs incurred after poor-quality products reach the customer.

Internal Failure

Costs of unsatisfactory quality found before the delivery of a product to the customer.

Defects per million opportunities (dpmo) = _____. Select one: a. Opportunities for error / (Number of defects discovered x 10,000,000) b. Opportunities for error x Number of defects discovered / 1,000,000 c. (Number of defects discovered / Opportunities for error) x 100,000 d. (Number of defects discovered / Opportunities for error) x 1,000,000

D. (Number of defects discovered / Opportunities for error) x 1,000,000

In which of the following stages of the PDSA cycle, the improvements become standardized and the final plan is implemented as a "current best practice" and communicated throughout the organization? Select one: a. Study b. Do c. Plan d. Act

D. Act

Which of the following statements is true regarding kaizen? Select one: a. It attempts to achieve radical improvements in a very short time period. b. It requires very large financial investments. c. It involves only the top management of the organization. d. It focuses on small, gradual, and frequent improvements.

D. It focuses on small, gradual, and frequent improvements.

Data such as production volume, cost, and customer satisfaction indexes are often plotted on a _____, which displays the data over time. Select one: a. check sheet b. control chart c. SIPOC diagram d. run chart

D. Run chart

The senior management at Life Inc., a pioneer in the health care domain, came up with a blueprint to address the current issues facing the company. This blueprint provides the framework for the company to address the current business needs while giving it the agility and strategic management to prepare successfully for the future, to prepare for real-time or short-term emergencies, and for workforce and customer engagement. Which of the following Baldrige organizational concepts is being used by the company? Select one: a. Valuing workforce members and partners b. Focus on the future c. Managing for innovation d. Sustainability

D. Sustainability

DMAIC Methodology

Define, Measure, Analyze, Improve, Control

Precision

Defined as the closeness of repeated measurements to each other. Precision relates to the variance of repeated measurements.

Accuracy

Defined as the difference between the true value and the observed average of a measurement. Measured as the amount of error in a measurement in proportion to the total size of the measurement.

Breakthrough Improvement

Discontinuous change resulting from innovative and creative thinking, motivated by stretch goals, and facilitated by benchmarking and reengineering

Custom Improvement Methodologies

FADE- Focus, Analyze, develop, execute DRIVE- Define the problem, Recognize the cause, Identify the solution, Verify the actions, Evaluate the results

Customer Errors in Preparation

Failure to bring necessary materials to the encounter, to understand their role in the service transaction, and to engage the correct service.

Compared to lean tools, Six Sigma tools are more intuitive and easier to apply by anybody in the workplace Select one: True False

False

Data sheets are special types of data collection forms in which the results are interpreted on the form directly without additional processing. Select one: True False

False

If most of the points on a control chart are within the control limits with a recognizable pattern, then the process is in statistical control. Select one: True False

False

In the context of the criteria for performance excellence, the strategic planning category is positioned as the foundation for all other categories in the systems framework that underlies the Baldrige philosophy. Select one: True False

False

Six Sigma is focused on improvement regardless of financial accountability whereas TQM requires a verifiable return on investment and focus on business results Select one: True False

False

Support processes generally require a higher level of attention than do value-creation processes. Select one: True False

False

The "Act" stage in the PDSA cycle involves determining whether the trial plan is working correctly by evaluating the results. Select one: True False

False

Typical reasons for mistakes and errors

Forgetfulness due to lack of reinforcement or guidance Misunderstanding or incorrect identification because of the lack of familiarity with process or procedures. Lack of experience Absentmindedness and lack of attention, especially when a process is automated.

Master Black Belt

Full-time six sigma experts who are responsible for Six Sigma strategy, training, mentoring, deployment, and results.

Black Belts

Fully-trained Six Sigma experts with extensive technical training who perform much of the technical analysis required in Six Sigma projects, usually on a full-time basis.

Green Belts

Functional employees who are trained in introductory Six Sigma tools and methodology and work on projects on a part-time basis, assisting Black Belts while developing their own knowledge and expertise.

Process Design

Identify the product or service: what work do I do? Identify the customer: Who is the work for? Identify the supplier: What do I meed and from whom do I get it? Identify the process: What steps or tasks are performed? What are the inputs and outputs for each step? Mistake-proof the process: How can I eliminate or simplify tasks? Develop measurements, controls, and improvements goals: How do I evaluate the process? How can I improve further?

Treatment Errors

In the contact between the server and the customer, such as lack courteous behavior, and failure to acknowledge, listen, or react appropriately to the customer.

Customer Errors during an Encounter

Inattention, misunderstanding, or simply a memory lapse, and include failure to remember steps in the process or to follow instructions.

Task Errors

Include doing work incorrectly, work not requested, work on the wrong order, or working too slowly

Customer Errors at the Resolution Stage of a Service Encounter

Include failure to

Team Members

Individuals from various functional areas who support specific projects.

Prevention

Investments made to keep nonconforming products from occurring and reaching the customer.

Process Management

Involves planning and administering the activities necessary to achieve a high level of performance in key business processes, and identifying opportunities for improving quality and operational performance, and ultimately, customer satisfaction.

Rapid Knowledge transfer

Involves the discovery, learning, creation, and refuse of knowledge that eventually becomes intellectual capital - Knowledge that can be converted into value and profits.

Kaizen

Japanese word that means gradual and orderly continuous improvement. Focus on small, gradual and frequent improvements over the long term with minimum financial investment, and participation by everyone in the organization.

Line and staff organizations

Key functional departments with staff support.

Deming Wheel

Plan, Do, Study, Act

Typical Out of Control Patterns

Points outside control limits. Sudden shift in process average. Cycles Trends Hugging the center line Hugging the control limits

Individual

Real-time information for feedback and process control

Agility

Refers to flexibility and short cycle times. Agility is crucial to such customer - focued strategies as mass customization.

Flexibility

Refers to the ability to adapt quickly and effectively to changing requirements.

Champions

Senior - level managers who promote and lead the deployment of Six Sigma in a significant area of the business.

Pre-Control

Simple technique for ensuring that a process that has relatively good capability remains in control. Divide the tolerance range into zones by setting two pre-control lines halfway between the center of the specification and the upper and lower specification limits. The center zone, called the green zone, comprises one-half of the total tolerance. Between the pre-control lines and the specification limits are the yellow zones. Outside the specification limits are the red zones.

Dashboards

Summaries of key performance measures, typically consisting of a small set of measures that provide a quick summary of process performance. Often use graphs, charts, and other visual aids to communicate key measures and alert workers and managers when performance is not where it should be.

Value-Creation Process

The most important to "running the business"

A measurement system may be precise but not necessarily accurate at the same time. Select one: True False

True

A p-chart is used with the attribute data. Select one: True False

True

An ultimate stretch goal of all organizations that adopt a Six Sigma philosophy is to have all critical processes, regardless of functional area, at a six-sigma level of capability. Select one: True False

True

Attribute measurement requires a much larger sample size than variable measurement to obtain the same amount of statistical information. Select one: True False

True

Processes must be measurable and repeatable in order to apply the techniques of process management.

True

Projects generally cut across organizational boundaries and require the coordination of many different departments and functions. Select one: True False

True

The Baldrige Award Criteria form a model for business excellence in any organization, whether large or small. Select one: True False

True

The Baldrige Criteria are prescriptive in that they specify detailed procedures for achieving quality. Select one: True False

True

The competitive strategy level is where organizational strategy and Six Sigma must align, because it is at this level that the tools of Six Sigma can be most effectively applied. Select one: True False

True

The vision, values, and mission area to address asks organizations to answer the following question: In creating a sustainable organization, how do senior leaders develop and enhance their leadership skills? Select one: True False

True

Matrix Organization

Typically used in project-oriented organizations

Tangible Errors

Unclean facilities, dirty uniforms, inappropriate temperature, and document errors.

Process

Understand whether processes are accomplishing their objectives, whether they are using resources effectively, and where improvement might be necessary.

Strategic Objectives

What an organization must change or improve to remain or become competitive.