OP3
7 prominent types of waste
(1) waste from overproduction (2) waste of waiting time (3) Transportation waste (4) inventory waste (5) processing waste (6) waste of motion (7) waste from product defects
Uncertainty regarding services operations can arise from which of the following?
-Uncertainty in task time -Uncertainty in demand -Customers' production roles
Value stream mapping (VSM) is a two-part process. What are those two parts?
-current state -future state
efficiency
-doing something at the lowest possible cost - the goal is to produce a good or provide a service by using the smallest input of resources
Value stream mapping (VSM) is used to visualize what?
-information flows -product flows
When designing a lean layout, the system designer must consider what type of logistics systems tie to the layout?
-internal -external
Lean production requires a stable schedule that is accomplished by which of the following?
-level scheduling -freeze windows
When considering a lean supply chain, which of the following components can have a lean focus?
-logistics -suppliers -procurement -warehousing -manufacturing -customers
In which type of operations does lean production work best?
-repeatable -standardized
What is the ideal lot size when using JIT production?
1
Which categories of inventory typically go through a cycle count?
"A" items "C" items "B" items
The general belief is that the correct cost for a well-run quality management program is under 50% 10% 0% 2.5%
2.5%
What is the minimum number of sample sets suggested for control charts with variable measurement? 20 30 35 25
25
How many defects per million units are permitted to meet Six Sigma standards?
3.4
ISO _______________, standards are concerned with business-to-business transactions dealing with quality, while ISO _______________ standards are concerned with environmental management
9000, 14000
The z-score associated with a _____ percent probability of not stocking out is 1.64.
95
Six Sigma refers to Multiple select question. The number of quality experts each firm should employ. A description of the quality goal of no more than 3.4 defects per million opportunities. The quality award given to the supplier with the fewest defects. A quality improvement philosophy and program.
A description of the quality goal of no more than 3.4 defects per million opportunities. A quality improvement philosophy and program.
Which category of inventory is managed most closely by the firm?
A items
inventory turnover equation
COGS/ Avg inventory value
Which of the following is the ratio of the range of values produced by a process divided by the range of values allowed by the design specification? Control limit Capability index Tolerance Specification limit
Capability index
Which of the following is variation that is inherent in the process itself?
Common variation
Warranty costs and customer complaints are examples of which type of quality cost?
External failure costs
T/F: A kanabn system produces zero inventory
False
Which of the following is/are manufacturing inventory items? Multiple select question. Finished products Work-in-process Component parts in manufacturing In-transit supplies
Finished products Work-in-process Component parts in manufacturing
An assumption in a p-chart calculation is that the sample size is which of the following? Fixed Variable Static Dynamic
Fixed
XYZ Company uses an inventory model where the amount requisitioned is fixed and ordering is triggered by inventory dropping to a specified level. What type of inventory system is XYZ using? Single-period Perpetual First In - First Out (FIFO) Fixed-order quantity
Fixed-order quantity
Which inventory system requires continuous monitoring of inventory levels? Fixed-order quantity system Fixed-time period system Single period system Time to maintain systems
Fixed-order quantity system
Which of the following is also called a periodic review system? Single-period Fixed-order quantity Perpetual Fixed-time period
Fixed-time period
Which of the following highlights a dependent demand scenario? Gallons of milk purchased at a grocery store Smart phones purchased at a retailer Four tires that are needed to complete the assembly of a car Flowers purchased at a garden center
Four tires that are needed to complete the assembly of a car
Which of the following is not a concept related to lean network design?
Generalized plants
ISO documents provide detailed requirements for meeting the standards and describing the tools used for improving quality in the firm. These documents are:
Generic and applicable to any organization.
Which is the ISO certification regarding quality management requirements in business-to-business dealings?
ISO 9000
In which step of the DMAIC cycle would you identify ways to remove the cause of defects and confirm key variables? Measure Improve Control Analyze
Improve
Kanban pull system
In a paperless control system, containers can be used instead of cards or containers
Customer Value
In the context of lean production, something for which the customer is willing to pay
Lean layouts
Include the following 1. Group technology 2. Quality at the source 3. JIT production
Lean supply chains
Include the following 1. Specialized plants 2. Work with suppliers 3. Building a lean supply chain
Lean production schedules
Include the following 1. Uniform plant loading 2. Kanban production control system 3. Determine number of kanbans needed 4. Minimize setup times
Which of the following is an example of a variable? Inspecting a car's paint finish for blemishes Inspecting a roll of fabric for snags Inspecting a piece of lumber for knotholes Inspecting the diameter of holes drilled into a pipe
Inspecting the diameter of holes drilled into a pipe
Which of the following are inventory holding costs? Multiple select question. Insurance Opportunity cost of capital IT network lease Storage facility costs Requisition
Insurance Opportunity cost of capital Storage facility costs
Lean Production
Integrated activities designed to achieve high-volume, high-quality production using minimal inventories of raw materials, work-in-process, and finished goods.
Which of the following is influenced by the customer order decoupling point? Multiple select question. Supplier base Quality system Inventory investment Lead time
Inventory investment Lead time
What type of production only produces what is needed when it is needed?
JIT
The Malcolm Baldrige National Quality Award was created as a response to the US quality shortfalls compared with which country?
Japan
What type of production focuses on eliminating as much waste as possible?
Lean
Which lean supply chain design principle includes specialized plants and work with suppliers?
Lean supply chain
What type of schedule requires material to be pulled into final assembly in a uniform pattern?
Level
According to the inventory control system matrix, if a company has highly independent products and high transaction costs, it is likely to deploy what type inventory control process? Rate-based synchronous systems Materials requirements planning Reorder point Manual two-bin
Manual two-bin
Which distribution is used to calculate the probability of producing a defect? Exponential Weibull Poisson Normal
Normal
_______ is a functional field of business with clear line management responsibilities
OSCM
_______concerned with the management of the entire system that produces a product or delivers a service
OSCM
The graphical display of the probability of accepting lots with varying percentages of defects is termed? Lot tolerance percent defective Operating characteristic curves P-chart and C-chart Acceptance sampling
Operating characteristic curves
Which of the following control charts must use a sample large enough to allow counting of the attribute? C-chart Range chart Mean chart P-chart
P-chart
Which analytical tool of Six Sigma breaks down a problem into the relative contributions of its components?
Pareto charts
Which analytical tool of Six Sigma breaks down a problem into the relative contributions of its components? Run charts Control charts Pareto charts Flow charts
Pareto charts
Which of the following is a form of inventory? Multiple select question. Parts waiting to be assembled Finished products held in a warehouse Raw material held in a warehouse Money owed to a firm by its customers
Parts waiting to be assembled Finished products held in a warehouse Raw material held in a warehouse
Brand name recognition is an example of which dimension of quality?
Perceived quality
Brand name recognition is an example of which dimension of quality? Features Serviceability Reliability/durability Perceived quality
Perceived quality
When conducting preventive maintenance, how often should inspection and repair be planned?
Periodically
What are the 5 process activities?
Planning, Sourcing, Making, Delivering, Returning (Please Save My Darn Rabbit)
The underlying distribution for the c-chart is which of the following? Gamma Normal Poisson Exponential
Poisson
Which of the following is a quality management standard developed specifically for the automobile industry?
QS-9000
Which dimension of design quality refers to the ease of repair?
Serviceability
If a company is trying to find the optimal amount of inventory to produce for a single event, it is likely to deploy which type of inventory model? Single-period LIFO Fixed-order quantity Periodic
Single-period
What term refers to the philosophy and methods that companies use to eliminate defects in their products and processes? DPMO Design quality Quality Six Sigma
Six Sigma
What is the preferable sample size in process control involving the measurement of variables? Large Unequal Small Variable
Small
In statistical quality control (SQC) terminology, sigma is often called which of the following? Standard deviation Median Mode Sample average
Standard deviation
Which of the following is the correct total annual cost equation?
TC = DC + D/Q*S+Q/2*H
ISO, international standards for quality management and assurance, was developed by?
The International Organization of Standardization
ISO, international standards for quality management and assurance, was developed by? International Support of Standards The International Organization of Standardization International Suppliers Organization Kaoru Ishikawa
The International Organization of Standardization
Value stream
These are the value-adding and non-value-adding activities required to design, order, and provide a product from concept to launch, order to delivery, and raw materials to customers.
A fixed-order quantity model is triggered by inventory dropping to a specified level.
True
T/F: A lean layout requires a balanced work flow
True
T/F: Anything other than the minimum is considered waste in lean production
True
True or false: When a vendor makes routine visits to a firm to take orders, a fixed-time period model may be a good choice.
True
True or false: When analyzing a price-break model, it is possible that the economic order quantity that is calculated is either higher or lower than the range to which the price corresponds.
True
True or false: When safety stock is expected to be on-hand, the average inventory value calculation is (Q/2+SS)*C.
True
_______________ are characteristics that can be measured numerically, such as weight, length, or diameter.
Variables
What do Six Sigma programs seek to reduce in processes? Standardization Redundancy Excess Variation
Variation
What is defined as anything that does not add value from the customer's perspective?
Waste
JIT
What lean production came from was pioneered in in Japan at toyota
Which of the following is a policy and control of an inventory system? When stock should be replenished The payment terms associated with buying the stock from vendors Who should order the stock How one will finance the stock
When stock should be replenished
When larger samples are needed for finer variations in a process, which chart would be better suited? C-chart XX P-chart R-chart
X
Which two control charts are typically used together? Multiple select question. XX-chart C-chart P-chart R-chart
XX-chart R-chart
benchmarking
a process in which one company studies the processes of another company (or industry) to identify best practices
receivable turnover equation
annual credit sales/average account receivable
Waste
anything that does not add value from the customer's perspective
Waste
anything that does not add value from the customers perspective
According to a rule of thumb, for every dollar that you spend in prevention, you can save $10 in what type(s) of costs?
appraisal failure
Lean suppliers
are able to respond to changers. Their prices are generally lower due to efficiencies of lean processes, and their quality has improved to the point that incoming inspection at the next link is not needed
The ratio of revenue to total assets is known as
asset turnover
Colored golf balls
at kawasaki engine plant, when a part in a subassembly is down to its queue limit, the assembler rolls a colored golf ball down a pipe to the replenishment machine center. This tells the operator which part to make nect
Which of the following is an example of a goods producing business? - hospital - university - automobile manufacturer - call center
automobile manufacturer
If the sample size varies, the standard deviation and upper and lower process control limits should be recalculated only every 200 units. have new limits calculated if equipment is calibrated. remain the same once calculated. be recalculated for each sample.
be recalculated for each sample.
A process in which one company studies the processes of another company for best practices is known as
benchmarking
When the mean and standard deviation of a process is operating such that the control limits are acceptable relative to specification limits, the process is said to be capable. within range. acceptable. out of range.
capable.
Fixed-order quantity models assume there is _________ tracking of inventory.
continual
Operations and supply chain management (OSCM)
defined as the design, operation, and improvement of the systems that create and deliver the firm's primary products and services
Calculation of the reorder point for a fixed-quantity model with safety stock requires that one know the average daily _____ and the _____ time.
demand lead
When then number of needed items are computed based on the number of higher-level items produced, one is operating in a(n) _____ demand environment.
dependent
Fixed-time period is an inventory control method where firms place orders periodically, but the order quantity is ___________ every time.
different
Inventory turn is calculated by dividing cost of goods sold by average inventory value. dividing average inventory value by cost of goods sold. dividing prices for raw goods by the quantity ordered. dividing current inventory by average inventory value.
dividing cost of goods sold by average inventory value.
effectiveness
doing the right things to create the most value for the company
Inventory classifications of A, B and C are based on
dollar value or measure of importance.
Doing the things that will create the most value for the customer is known as
effectiveness
Which of the following is not a lean technique applied to service companies?
eliminate housekeeping
Which of the following is not an efficiency measure used by Wall Street? - inventory turnover -asset turnover -employee turnover - receivables turnover
employee turnover
facilities manager
ensures that the building facility design, layout, furniture, and other equipment are operating at peak efficiency
ISO 14000 addresses the need to be _______________ responsible.
environmentally
ISO 14000 addresses the need to be __________responsible.
environmentally
The economic order quantity (QoptQopt) occurs when the annual ordering and holding costs are _____.
equal
Which of the following is not a type of process in the supply chain? -making - sourcing -evaluating - planning
evaluating
The process of looking outside the company to compare the firm to excellent performers is called __________ benchmarking.
external
Demand is termed as independent if it comes from sources _____ to the firm and is not related to other _____.
external products
True or False Each activity in the strategic planning process is conducted only once a year
false
True or False: ISO 9000 recognizes companies each year for outstanding quality management systems
false
true or false Stakeholders are individuals or companies that legally own a portion of the company and are not influenced by the actions of that company
false
If manufacturing equipment within a facility produces at different rates, one can use inventory to maintain _______________ of operations.
flexibility
Customers value
in the context of lean production, is defined as something for which the customer is willing to pay.
Lean production
in the context of supply chains, lean production refers to a focus on eliminating as much waste as possible
Often, a(n) ___________ in productivity occurs as a by-product of efforts to reduce the cost of quality.
increase
Campbell's Soup makes products for Kroger and other grocery stores based on sales to the final consumer. This inventory management environment is characterized as ________ demand. marketing forecasted dependent independent
independent
cycle time
is used to adjust resources to produce the precise quantity needed
A company has recently implemented an automated online billing and payment processing system for orders it ships to customers. As a result, it has reduced the average number of days between billing a customer and receiving payment by 10 days. How will this affect the receivables turnover ratio?
it will increase
In a fixed-time period inventory model, the average demand over the vulnerable period depends on the review cycle (T) and the constant _____ time (L).
lead
The time between placing an order and receiving the item(s) is called the reorder point. lead time. demand variation. cycle count.
lead time.
Which of the following is not a category that applies to lean design principles?
lean transportation
In a fixed-time period system, inventory monitoring happens _____ frequently than in a fixed-order quantity system.
less
When comparing service processes to manufacturing processes, one would say that they are ______ controllable.
less
moving material in the supply chain is referred to a____
logistics
Firms enter into _____________ relationships with vendors, this changes "how many is ordered" to "how many is delivered" with each order. short-term slow turn-time quick turn-time long-term
long-term
A supply of materials at a work center allows workers to use just-in-time production techniques. order materials more frequently. take frequent breaks from production. maintain independence of operations.
maintain independence of operations.
purchasing manager
manages the day-to-day aspects of purchasing, such as invoicing and follow-up
What are some of the challenging aspects of the COO?
managing the supply chain, service, and support
Work-in-process is considered ______ inventory.
manufacturing
Cost of quality (COQ) is a primary function for the
manufacturing manager.
Order winners and qualifiers represent a link between operations and what other business function?
marketing
what does the asset turnover ratio measure?
measures the amount of sales generated for every dollar's worth of assets. It measures a firm's efficiency at using its assets in generating sales revenue--the higher the number the better. It also indicated pricing strategy
supply chain manager
negotiates contracts with vendors and coordinates the flow of material inputs to the production process and the shipping of finished products to customers
Lean logic
nothing will be produced until it is needed
In fixed-order quantity systems, the amount of inventory that minimizes total costs is called the _____ _____ _____.
optimal order quantity
As it relates to inventory, a buyer's time expended to prepare the purchase order for more material is considered a(n) ____ cost. ordering holding buffer execution
ordering
The managerial and clerical costs to prepare purchase or production orders are called shortage costs. ordering costs. logistics costs. holding costs.
ordering costs.
_______ and _______ are forcing companies to find flexible ways to meet customer demand
outsourcing and mass customization
In a single period model, CoCorepresents the cost per unit associated with the _____ estimating of demand.
over
branch manager (bank)
oversees all aspects of financial transactions at a branch
logistics manager
oversees the movement of goods throughout the supply chain
project manager
plans and coordinates staff activities, such as new-product development, new-technology deployment, and new-facility location
production control analyst
plans and schedules day-to -day production
Safety stock inventory levels are determined by the _____ of stock out at a given desired service level.
probability
planning
processes needed to operate an existing supply chain strategically
making
producing the major product or service
Which of the following is not a quality management principle in ISO 9000? process approach customer focus continual improvement product design
product design
which of the following is not a quality management principle in ISO 9000?
product design
Building service activities into a firm's product offering is known as - product service processing -product service handling - product service bundling -product service decoupling
product-service bundling
One purpose of inventory is to provide flexibility in _______________ _______________, this can increase lead times but reduce setup costs.
production scheduling
Cost of quality (COQ) is a primary function for the quality control department. manufacturing manager. customer service supervisor. supply chain manager.
quality control department.
Freeze window
refers to that period of time during which the schedule is fixed and no further changes are possible
What does operations refer to?
refers to the manufacturing and service processes that are used to transform the resources employed by a firm into products desired by customers
waste reduction
relates to the optimization of the value adding activities and the elimination of non value adding activities that are part of the value stream
In companies using a fixed-order quantity model, a consistent inventory level is used as a trigger to order more product. This inventory level is called the ordering guideline. point of entry. execution threshold. reorder point.
reorder point.
All of the following are competitive dimensions that form a firm's competitive position except -cost -flexibility -retail store -delivery speed
retail store
asset turnover equation
revenue (or sales)/ total assets
What tools involves the probability or relative frequency of an event against the aggregate severity of the loss?
risk mapping
Stock carried to absorb variation in demand is known as _______________ stock.
safety
Acme Company carries an additional level of inventory beyond the expected demand during reorder lead times. This additional inventory is known as safety stock. backorder stock. raw material. just-in-case supplies.
safety stock.
The purpose of _______________ is to find when the process has changed in some nonrandom way.
sampling
When a customer audits its supplier in regards to ISO certification, this form of certification is referred to as ____________. customer third party first party second party
second party
Delta Company uses special equipment and personnel to changeover production runs quickly. The costs associated with this changeover approach are considered carrying costs. rapid stock costs. purchasing costs. setup costs.
setup costs.
When a company seeks to match the benefits of a successful position and maintain their current position in the marketplace it is attempting a(n) ________ approach.
straddling
Design quality is considered a(n) __________ for the firm.
strategic decision
supply chain management
the central idea is to apply a total system approach to managing the flow of information, materials, and services from raw material suppliers through factories and warehouses to the end customer
When placing an order for a single period, the order quantity should be increased as long as the probability of selling what is ordered is less than or equal to Co/Cu-Co the probability of selling what is ordered is greater than Cu/Cu+Co the probability of selling what is ordered is less than or equal to Cu/Cu+Co
the probability of selling what is ordered is less than or equal to Cu/Cu+Co
True or False Electric commerce is defines as the use of the internet as an essential element of business activity
true
The cost of quality involves the cost of Multiple select question. supplies. warranties. rework. scrap.
warranties. rework. scrap.
When measurements from periodic samples stay _______________ the control limits, the process can be assumed to be working properly.
within
What does supply chain refer to?
-refers to the processes that move information and material to and from the manufacturing and service processes of the firm -includes the logistics processes that physically move product and the warehousing and storage processes that position products for quick delivery to the customer
Lean supply chains design principles can be divided into three major categories. Which of the following components are part of lean supply chains?
-specialized plants -collaboration with suppliers -building a lean supply chain
In cycle counting, the accuracy level recommended by experts for "A" items is +/-
0.2%.
Seven prominent types of waste from supply chain
1) waste from overproduction 2) waste of waiting time 3) transportation waste 4) inventory waste 5) processing waste 6) waste of motion 7) waste from product defects
Which of the following are assumptions that justify the costs of quality? 1. Failures occur 2. Prevention is cheaper 3. Performance can be measured
1, 2, and 3
Which of the following are assumptions that justify the costs of quality? 1. Failures occur 2. Prevention is cheaper 3. Performance can be measured 1, 2, and 3 only 1 and 2 only 2 and 3 only 1 and 3
1, 2, and 3
Lean Supply chain principles
1. Lean layouts 2. Lean production schedules 3.Lean Supply chain
Lean Services
1. Organize problem solving groups 2. Upgrade housekeeping 3.Upgrade quality 4.Clarify process flows 5. Revise equipment and process technologies 6. level the facility load 7. eliminate unecessary activities 8. Reorganize physical configuration 9. Introduce demand pull scheduling 10. Develop supplier networks
The cost of quality has been estimated at what percentage of every sales dollar?
15-20%
The cost of quality has been estimated at what percentage of every sales dollar? 20-25% 5-10% 15-20% 10-15%
15-20%
Total Quality Management (TQM) became popular in what time frame?
1980s
Total quality management became a national concern in the United States during what decade?
1980s
Total quality management became a national concern in the United States during what decade? 1940s 1980s 1990s 2000s
1980s
The general belief is that the correct cost for a well-run quality management program is under
2.5%
In inventory management, the Pareto principle suggests that _____% of the items account for _____% of the total inventory cost.
20 80
Firm ABC has an annual demand for 2,000 widgets. Their typical order quantity is 400 units and they maintain a safety stock of 50 units. What is their average inventory?
250
How many defects per million units are permitted to meet Six Sigma standards? 4.3 3.4 10.0 6.0
3.4
In the ABC approach, B items account for approximately _____% of the items in inventory.
35
Lean Procurement
A key is automation, the term e-procurement relates to automatic transaction, sourcing, bidding, and auctions using web based applications, and use software that removes human interaction and integrates with the financial reporting system of the firm. the key to it is visibility. Suppliers must be able to see into the customers operations and the customer must be able to see into their suppliers operations
Computer cycle counting programs can produce a cycle count notice after which events?
A zero balance on-hand A specified level of activity A positive balance but a backorder was created
The highest interest of an operating characteristic curve is between the and the _______________ LTPD.
AQL
Which term describes sampling performed on goods that already exist to determine what percentage of products conform to specifications? Conforming sampling Sampling limits Sampling error Acceptance sampling
Acceptance sampling
In any inventory system, _____ is important for a smooth production process so that customer orders can be processed as scheduled and not held up because of unavailable products.
Accuracy
In which step of the DMAIC cycle do you determine the most likely causes of defects and understand why defects are generated?
Analyze
In which step of the DMAIC cycle do you determine the most likely causes of defects and understand why defects are generated? Define Measure Analyze Improve
Analyze
The classic "I love Lucy" scene where they are inspecting the chocolates on the assembly line is an example of what type of quality cost? Appraisal External failure Internal failure Prevention
Appraisal
Which of the following is not a dimension of quality?
Appraisal
Which of the following is not a dimension of quality? Perceived quality Durability Appraisal Aesthetics
Appraisal
Which of the following is not a reason to use inventory as a safeguard against raw material delivery time variation? An unexpected strike at a vendor's plant As a supplement to vendor-managed inventory programs Shortage of material at the vendor's plant Normal variation in shipping time
As a supplement to vendor-managed inventory programs
Which of the following is variation that is caused by factors that can be clearly identified?
Assignable variation
Which of the following is variation that is caused by factors that can be clearly identified? Assignable variation Common variation Random variation Normal variation
Assignable variation
When you remove the number of parts used in production to adjust on-hand inventory balances, you are conducting a
Backflush
Which of the following is an operational goal of total quality management (TQM)? 1. Careful design of the product or service. 2. Ensuring that the organization's systems can consistently produce the design. 2 only Neither 1 or 2 Both 1 and 2 1 only
Both 1 and 2
Typically when using ABC classification, the low dollar value, or measure of importance, items are in group _____, while high dollar value items are in group _____.
C A
When a product or service can have more than one defect per unit, which of the following is the most appropriate chart? Range chart Mean chart P-chart C-chart
C-chart
Which of the following is variation that is inherent in the process itself? Assignable variation Common variation Controlled variation Real variation
Common variation
Which quality term refers to the degree to which the product or service design specifications are met?
Conformance
Which quality term refers to the degree to which the product or service design specifications are met? Dimension Engineering Conformance Design
Conformance
In the acronym DMAIC, what does the C stand for? Conformance Charts Continuous improvement Control
Control
Operations and supply chain management is concerned with the design and management of the entire system that has what function?
Creates and delivers a firm's products and services
Which of the following is not considered when calculating the order quantity in a fixed-time period model?
Current stock at the supplier
_____ _____ is a physical inventory-taking technique in which inventory is counted frequently, often times on a time-based schedule.
Cycle counting
Which six sigma tool requires changing each individual variable to determine the most influential one?
Design of experiments (DOE)
Which six sigma tool requires changing each individual variable to determine the most influential one? Cause-and-effect diagrams Pareto Charts Design of experiments (DOE) Flowcharts
Design of experiments (DOE)
What term refers to the inherent value of the product in the marketplace?
Design quality
What term refers to the inherent value of the product in the marketplace? Conformance Design quality Reliability Performance
Design quality
Which of the following are typical objectives of process control plans? Multiple select question. Identify new design specifications. Detect shifts in the process. Provide information about whether items are meeting design specifications. Develop new processes.
Detect shifts in the process. Provide information about whether items are meeting design specifications.
_____ inventory includes items in-transit or at a warehouse ready for shipment to the customer.
Distribution
Where in a process is there an opportunity for defects? Critical steps or activities Every step or activity Final step or activity First step or activity
Every step or activity
Warranty costs and customer complaints are examples of which type of quality cost? Appraisal costs External failure costs Prevention costs Internal failure costs
External failure costs
Which tool in Six Sigma projects is a structured approach to identify, estimate, prioritize, and evaluate risk of possible failures at each stage of a process?
Failure mode and effect analysis
Which tool in Six Sigma projects is a structured approach to identify, estimate, prioritize, and evaluate risk of possible failures at each stage of a process? Cause-and-effect diagrams Design of experiments Failure mode and effect analysis Opportunity flow diagrams
Failure mode and effect analysis
T/F: Waste reduction refers only to the elimination of non-value-adding activities that are part of the value stream
False
T/F: When backflushing parts, the actual number of parts used in production mush be tracked.
False
T/F: When comparing service processes and manufacturing, the same sources of variation cause waste.
False
T/F: When utilizing a quality at the source approach, employees do not have the authority to stop the process if there is a problem.
False
The fixed-order quantity model has a larger average inventory because it must also protect against stock-out during the review period, T; fixed-time period model has no review period.
False
True or false: An OC curve should be shallow in the region of most interest.
False
True or false: Companies should only benchmark firms that are in the same industry to get accurate results.
False
True or false: ISO 9000 recognizes companies each year for outstanding quality management systems.
False
The Baldrige Quality Award is given annually in all of these categories except?
Film industry
Which of the following is considered distribution inventory? Raw material inventory awaiting a machining operation Finished goods inventory in a distribution center Work-in-process inventory Finished goods at a department store waiting to be sold
Finished goods inventory in a distribution center
Which of the following tools can be used in the Define step of the DMAIC cycle?
Flow charts Run charts
ISO documents provide detailed requirements for meeting the standards and describing the tools used for improving quality in the firm. These documents are: Specific to a particular industry. Generic, but do not apply to manufacturing. Generic and applicable to any organization. Generic, but do not apply to services.
Generic and applicable to any organization.
Which of the following people was not considered one of the quality gurus?
Henry Ford
Which of the following people was not considered one of the quality gurus? Joseph Juran Henry Ford W. Edwards Deming Philip Crosby
Henry Ford
Which of the following people was not considered one of the quality gurus? - Henry Ford - Philip Cosby -William Demy - Joseph Juran
Henry Ford
Match the inventory costs with their definition. Instructions Holding costs Setup costs Ordering costs Shortage costs Costs associated with initiating production of a product. Costs incurred when a product is not available when ordered by a customer. Costs of shortage, loss, handling, insurance, obsolescence. Costs associated with placing an order with a supplier.
Holding costs: Costs of shortage, loss, handling, insurance, obsolescence. Setup costs: Costs associated with initiating production of a product. Ordering costs: Costs associated with placing an order with a supplier. Shortage costs: Costs incurred when a product is not available when ordered by a customer.
Which of the following is not an example of when to use a c-chart? Inspecting a piece of lumber for knotholes Inspecting the diameter of holes drilled into a pipe Inspecting a roll of fabric for snags Inspecting a car's paint finish for blemishes
Inspecting the diameter of holes drilled into a pipe
Which type of quality cost deals with scrap, rework and repair? Prevention costs Appraisal costs Internal failure costs External failure costs
Internal failure costs
which type of quality cost deals with scrap, rework and repair?
Internal failure costs
_____ is the stock of any item or resource used in an organization.
Inventory
_____ turn is the ratio of costs of goods sold to average inventory value.
Inventory
When space is marked on the floor to identify where products should be stored is an example of which type of kanban signal?
Kanban squares
When a service is being provided, who is typically responsible for ensuring quality at the source?
Location operations manager
When a service is being provided, who is typically responsible for ensuring quality at the source? Manufacturing manager Service technician Location operations manager Customer
Location operations manager
If the percentage of defectives in acceptance sampling is greater than a specified amount, it is termed with which of the following? UCL Acceptable LCL Low quality
Low quality
Match the advantages of inventory with their definitions. Maintain independence of operations Meet variation in product demand Take advantage of economic purchase order size Accommodate variability in raw material delivery time Provide a buffer to absorb unexpected shortages or disruptions from vendors Acts as a buffer to absorb unexpected periods of high demand Order larger quantities to reduce shipping, receiving, and clerical costs Allow the work center flexibility to work without undue influence from other work centers
Maintain independence of operations: Allow the work center flexibility to work without undue influence from other work centers Meet variation in product demand: Acts as a buffer to absorb unexpected periods of high demand Take advantage of economic purchase order size: Order larger quantities to reduce shipping, receiving, and clerical costs Accommodate variability in raw material delivery time: Provide a buffer to absorb unexpected shortages or disruptions from vendors
Expenditures related to achieving product or service quality include all of the following except:
Manufacturing costs
Expenditures related to achieving product or service quality include all of the following except: Appraisal costs Manufacturing costs Failure costs Prevention costs
Manufacturing costs
Because of favorable pricing in the short-term, a company is looking at ordering a larger-than-needed optimal quantity of an item, and keeping the excess in inventory. Which model is the company likely using to arrive at this decision?
Price break
Which of the following is a quality management standard developed specifically for the automobile industry? QS-9000 ISO 9000 ISO 140001 TL 9000
QS-9000
Which of the following is a plot of the average of the range within each sample? P chart C chart R-chart XX-chart
R-chart
Which of the following charts is used when the measure for the sample is weight, volume, number of inches or other variable measurements? Multiple select question. R-chart P-chart XX-chart C-chart
R-chart XX-chart
Which of the following is defined as the difference between the highest and lowest numbers in a sample? Range Standard deviation Mode Median
Range
What is used to periodically check that a process is in statistical control? Scrap parts Sampling The process is only measured in the beginning 100 percent inspection
Sampling
What section of OSCM are operation processes covered?
Section II: Manufacturing and Service processes--> how are processes that transform resources into products designed?
Which of the following is not considered in lead time when calculating the number of kanbans needed
Shipping time from supplier
What types of machines do lean operations favor?
Simple
If the process mean shifts away from the nominal value (middle) toward either the higher or lower specification, the capability index will shift which direction? Larger Smaller Median Average
Smaller
Which of the following terms describes testing a random sample of output from a process to determine whether the process is producing items within a preselected range? Statistical attribute control Statistical process control Process capability index Process tolerance limits
Statistical process control
What covers the quantitative aspects of quality management?
Statistical quality control (SQC)
True or false: Total quality management requires companies to deal with all dimensions of products and services that are important to the customer.
T
Which of the following is a quality management standard developed specifically for the telecommunications industry?
TL 9000
Which of the following is a quality management standard developed specifically for the telecommunications industry? ISO 140001 TL 9000 QS-9000 ISO 9000
TL 9000
When placing an order for a single period, which of the following is considered? Multiple select question. The cost of transportation The cost of overestimating demand The cost of placing an order The cost of underestimating demand
The cost of overestimating demand The cost of underestimating demand
Which of the following are the four main issues to address in creating a control chart? Multiple select question. The number of samples The design specifications The frequency of samples The size of the samples The control limits
The number of samples The frequency of samples The size of the samples The control limits
To achieve quality at the source, in general, who is responsible for ensuring that quality specifications are met?
The person who does the work
To achieve quality at the source, in general, who is responsible for ensuring that quality specifications are met? The supplier of the raw materials The person who does the work The customer is responsible for ensuring quality Customer service representative
The person who does the work
Which is the best form of ISO certification?
Third party
Which is the best form of ISO certification? There is no best form Third party Second party First party
Third party
Lean Warehousing
This relates to eliminating non-value added steps and waste in product storage processes. Typical functions include the following: 1. receiving material 2. put away storing 3. picking inventory 4.
The standard practice in statistical process control for variables is to set control limits to how many standard deviations from the mean? Three One Two Four
Three
Which of the following is a reason for keeping a supply of inventory? To improve cash flow To meet variation in product demand To build a bank of inventory needed for lean manufacturing To improve suppliers' cash flow
To meet variation in product demand
From which company did lean evolve?
Toyota
Which of the following is not a cost associated with inventory management? Set up costs Transportation costs Shortage costs Holding costs
Transportation costs
T/F: Lean production uses a pull system for production.
True
T/F: Value stream includes both value-added and non-value-added activities.
True
True or false: A product can have high design quality with low conformance quality, and vice versa.
True
True or false: By taking advantage of economic purchase order sizes, one can usually achieve lower per-unit shipping costs.
True
True or false: The economic order quantity depends upon three factors: the annual demand, the setup cost, and the annual holding cost of one unit of inventory.
True
True or false: The effect of setting specification limits on product design allows businesses to monitor processes against these limits.
True
True or false: The lot size has little effect on the risk associated with an acceptance sampling plan.
True
True or false: The order quantity in a fixed-order quantity model is the same, regardless if demand is known or uncertain.
True
True or false: The second step in the price-break model may not be necessary if the first feasible economic order quantity is the lowest price.
True
True or false: Total quality management requires companies to deal with all dimensions of products and services that are important to the customer.
True
_______________ and ________________ specification limits define acceptable parameters and the target value of a process.
Upper Lower
What term describes the value-adding and non-value-adding activities required to design, order and provide a product or service?
Value stream
What type of activities transform materials and information into something the customer wants?
Value-adding
a tool that shows how a company's strategy is delivered through a set of tailored activities is called a(n)
activity-systems map
quality control manager
applies techniques of statistical quality control, such as acceptance sampling and control charts, to the firm's products
business process improvement analyst
applies the tools of lean production to reduce cycle time and eliminate waste in a process
Which letter denotes the maximum number of defective items that can be found in the sample before the lot is rejected? a c b n
c
There are two aspects to analyzing the data for benchmarking, they are
comparing actual processes. comparing performance of the process against certain measures.
There are two aspects to analyzing the data for benchmarking, they are Multiple select question. identifying performance measures and using the exact system for your firm. comparing actual processes. asking the firm analyzed to implement their process for your firm. comparing performance of the process against certain measures.
comparing actual processes. comparing performance of the process against certain measures.
value stream
consist of the value adding and non value adding activities required to design, order, and provide a product or service from concept to launch, order to delivery, and raw materials to customer
which of the following is not a step in the risk management process? - create an activity-system map -identify sources of potential disruptions -develop plans to mitigate risk -assess the potential impact of the risk
create an activity-system map
To calculate the reorder point for a fixed-order quantity model with safety stock, all of the following are required except
current inventory level.
Each step or activity, when using six sigma, a company performs represents an opportunity for a(n) _________ to occur.
defect
Each step or activity, when using six sigma, a company performs represents an opportunity for a(n) _________ to occur. mishap cost defect inspection
defect
Statistically, regardless of lot size, the probability of defects remains the same assuming that Multiple select question. there are no defects. defects are randomly spread throughout. each sample size is adjusted. the lot is randomly chosen.
defects are randomly spread throughout. the lot is randomly chosen.
If Acme groceries wanted a 0.95 probability of not stocking out, the "z" value that would be used in the calculation to find the safety stock is _______.
equal to 1.64, located in the z chart.
true or false a firm can excel simultaneously on all competitive dimensions
false
In a system using group technology, workers must be ______ to run several machines and processes.
flexible
Lean customers
have a great understanding of their business needs and specify meaningful requirements. They value speed and flexibility and expect high levels of delivery performance.
A fixed-time period inventory model carries a ____ level of safety stock than a fixed-order quantity system.
higher
Process limits relate to how consistent the process is for making a product. the design of a part. the number of trade-offs involved in determining the upper and lower specification limits. how consistent the process is with 100% inspection.
how consistent the process is for making a product.
Which of the following is not a major activity of a typical strategic planning process? - translate the strategy - plan operations and supply -implement the strategy -develop the strategy
implement the strategy
A process that cannot be weighed or measured is known as
intangible
Lean production requires that activities be ______ to achieve production using minimal inventories.
integrated
A single-period _____ model helps in situations where a company is trying to produce the optimal quantity of inventory for a single event, minimizing overproduction costs and potential lost revenues.
inventory
The set of policies and controls that monitor levels of inventory and determine what levels should be maintained, when stock should be replenished, and how large orders should be is called a(n) _____ system.
inventory
When calculating the order quantity in a fixed-time period model with safety stock, the formula is Order Quantity = Average demand over the vulnerable period + safety stock - _____ currently on-hand.
inventory
The current amount of inventory (on-hand quantity plus on-order minus backordered) is known as the inventory demand. inventory position. inventory available. inventory level.
inventory position.
The ratio of COGS to average inventory value is known as
inventory turnover
business analytics
involves the analysis of data to better solve business problems
Group technology
is a philosophy in which similar parts are grouped into families, and processes required to make the parts are arranged in a manufacturing cell. These workers have increased job security due to the fact they run many machines
Value stream mapping
is a special type of flowcharting tool that is valuable for the development of lean processes.... Great visual way to analyze an existing system and to find areas where waste can be eliminated
Preventive maintnance
is emphasized to ensure that flows are not interrupted by downtime or malfunctioning equipment
Level schedule
is one that requires material to be pulled into final assembly in a pattern uniform enough to allow the various elements of production to respond to pull signals
Backflush
is used where the parts that go into each unit of the product are periodically removed from inventory and accounted for based on the number of units produced. This eliminates much of the shop floor data collection activity, which is required if each part must be tracked and accounted for during the process
what does the receivables turnover calculate?
it measures a company's efficiency in collecting its sales on credit
delivering
logistics processes such as selecting carriers, coordinating the movement of goods and information, and collecting payment from customers
The ability to produce a unique product exactly to a particular customer's requirements is known as
mass customization
A company known for delivering high-volume standardized services is - walmart - whole foods - great clips -mcdonalds
mcdonalds
Kanban
means "sign" or "instruction card" in japanses
Quality of source
means do it right the first time and, when something goes wrong, stop the process or assembly line immediately. Workers are empowered to do their own maintenance and housekeeping until the problem is fixed
Group C items may only be ordered _____ or _____ due to their low importance and value.
monthly bimonthly
In the beginning, it is best to have _______________ frequent sampling until confidence builds in the process.
more
warehouse/distribution manager
oversees all aspects of running a warehouse, including replenishment, customer order fulfillment, and staffing
department store manager
oversees all aspects of staffing and customer service at a store
hospital administrator
oversees human resource management, staffing, supplies, and finances at a health care facility
plant manager
oversees human resource management, staffing, supplies, and finances at a health care facility
call center manager
oversees staffing and customer service activities at a call center
A fixed-order _____ model uses a reorder point, R, to trigger an order of an optimal amount of product, labeled Q.
quantity
Supply chain disruption risks are
random and difficult to predict
returning
receiving worn-out, excess, and/or defective products back from customers
When a customer audits its supplier in regards to ISO certification, this is referred to as a ____________ certification.
second party
sourcing
selection of suppliers that will deliver the goods and services needed to create the firm's product
A price-break model suggests that the _____ price of an item varies with order _____.
selling size
ISO 9000 standards are based on the _______________ quality management principles.
seven
For a process to be considered six sigma capable, the design specification limits are _______________ standard deviations away from the process mean.
six
Uniform plant loading
smoothing the production flow to dampen the reaction waves that normally occur in response to schedule variations
Which of the following dimension of the triple bottom line considers such stakeholders as employees, the local community and other entities that are impacted by the firm's existence?
social
Kanban squares
some companies use marked spaces on the floor or on a table to identify where material should be stored. When the square is empty, the supplying operations are authorized to produce; when the square is full no parts are needed
Lean logistics
some key areas include: optimized mode selection and pooling orders; combined multistop truckloads; optimized routing; cross docking; import/export transportation processes and backhaul minimization
Container system
sometimes the container itself can be used as a signal device. in this case, an empty container on the factory floor visually signals the need to fill it. The amount of inventory is adjusted by simply adding or removing containers
When price varies with the order size, the first step in the analysis process is to
sort the prices from lowest to highest and calculate the EOQ for each price level.
What do people who pursue careers in OSCM do?
specialize in managing the production and distribution of goods and services
Design quality is considered a(n) __________ for the firm. strategic decision unimportant decision service decision insignificant cost
strategic decision
What are the three elements that require integration to be successful in operations and supply chain management?
strategy, processes, analytics
The ability to meet current resource needs without compromising the ability of future generations to meet their needs is known as
sustainability
Which current issue in OSCM relates to the ability of a firm to maintain balance in a system, considering the ongoing economic, employee, and environmental viability of the firm?
sustainability
Lean manufacturing
systems produce what the customer wants, the quantity they want, when they want it, and with minimum resources
Since it is not easy to determine how well a sampling plan discriminates between good and bad quality, you should always examine __________ before using a sampling plan. the P-chart an R-chart the C-chart the OC curve
the OC curve
sustainability
the ability to maintain balance in a system
what does inventory turnover measure?
the average number of times inventory is sold and replaced during the fiscal year. it measures the company's efficiency in turning its inventory into sales
When choosing how often to take samples, there is a trade-off between the costs of sampling and the number of employees in the quality department. the readings from the last set of samples. the amount of time it takes to get the sample. the benefit of adjusting the system.
the benefit of adjusting the system.
ISO 14000 has a three-pronged approach that includes
the development of environmentally friendly products and services. standards for monitoring air, water, and soil. environmental management requirements.
ISO 14000 has a three-pronged approach that includes Multiple select question. the development of environmentally friendly products and services. environmental management requirements. standards for monitoring air, water, and soil. the cheapest cost for raw materials among all suppliers.
the development of environmentally friendly products and services. environmental management requirements. standards for monitoring air, water, and soil.
A purist view of the cost of quality is one that references all costs until 100% perfection is attained. A less stringent viewpoint is defined as the difference between 100% perfection and the industry standard. the difference between expected excellent performance and the current costs. whatever it takes to reach 100% perfection. not attainable in today's society.
the difference between expected excellent performance and the current costs.
Inventory turn is a key measure for a business and directly relates to the supply chain manager's performance. the quality of management. the price paid for raw materials. the financial performance of the firm.
the financial performance of the firm.
Kaizen
the japanese philosophy that focuses on continuos improvement
When calculating the reorder point for a fixed-quantity model with safety stock, the value "z" represents
the number of standard deviations associated with a given service probability.
Waste reduction
the optimization of value-adding activities and elimination of non-value-adding activities that are part of the value stream
When you want to express the ratio of all outputs to all inputs, you should use a _____ productivity measure
total
The sum of annual purchasing costs, annual ordering costs, and annual holding costs is known as the total inventory cost. total order cost. total annual cost. annual product cost.
total annual cost.
lean improvement manager
trains organizational members in lean production and continuous improvement methods
True or False A process is made up of one ore more activities that transform inputs into outputs
true
True or False An operations and supply chain manager helps firms determine the best way to deliver its goods and services
true
True or False Business analytics is defined as the analysis of data to better solve business problems
true
True or False Many product offerings are a combination of goods and services
true
True or False Operations and Supply chain management is focused on the systems that create and deliver an organization's products and services
true
true or false Operations effectiveness is related directly to the costs of doing business
true
When production flow is smoothed to dampen the schedule variation, we call this
uniform plant loading
The attractiveness of a product relative to its costs is known as
value
In constructing any inventory model, there has to be a functional relationship between the variable of interest and the measure of effectiveness. average product costs and average daily lead time. order cycle time and transportation costs. annual demand and lead time in days.
variable of interest and the measure of effectiveness.
The cost of quality involves the cost of
warranties. rework. scrap.
Chief Operating Officer (COO)
works w/ the CEO and company president to determine the company's competitive strategy. Their idea's are filtered down through the rest of the company. They determine an organization's location, facilities, and what vendors it will use, and the implementation of the hiring policy
A purist view of the cost of quality is one that references all costs until 100% perfection is attained. A less stringent viewpoint is defined as
the difference between expected excellent performance and the current costs.
