SCM 361 Final Question Review

Batch Production

A type of process in which sets of items move through the manufacturing steps in a group.

ROP (Reorder Point)

The level of inventory at which a replenishment is triggered and which can be calculated to support a desired service level.

Deliver

The macro process associated with the creation, maintenance, and fulfillment of customer orders.

Out of Control Condition

The status of a process when sample data does not fall within control limits.

Henry Ford

American industrialist who developed the assembly line technique for mass production.

Histogram

A TQM tool that provides a graph of contiguous vertical bars representing a frequency distribution.

Jumbled Production

A type of process where each job follows a distinct routing through the shop, often requiring equipment setups or changeovers, but enabling the production of a great variety of products.

Make Item

A unique manufactured part or product.

Eight Dimensions of Quality

Aspects which define a product or service and include: aesthetics, conformance, durability, features, perceived quality, performance, reliability, and serviceability.

Benchmarking

Comparing one's business processes and performance metrics to industry bests and best practices from other companies.

Associative Models

Forecasting methods that use one or more variables that are believed to affect demand.

EDI (Electronic Data Interchange)

Intercompany, computer-to-computer transmission of business information in a standard format.

PP.21 Which of the following businesses is most likely to employ an assemble-to-order build strategy?

Taco Bell

TCO (Total Cost of Ownership)

The sum of all the costs associated with every activity of the supply stream. This many include things like maintenance, repair, upgrades, training, and so forth.

PP.03 Each planning process, no matter the level, is focused on...

finding the best way to make supply meet demand

PP.18 A "mix hedge"...

reduces levels of expensive FG inventory while slightly increasing component inventories is a planning technique which supports increased production flexibility

PP.08 Which tactic is not used to change the supply of goods or services provided by a company?

take reservations

FC.03 Which of the following decisions is driven by short-range forecasts?

weekly shift assignments at a retail store

QC.06 In order to determine whether or not a variable type of process is in control (where output can be measured, not just classified), you must use which type of chart(s)? (Check all that apply.)

x-bar chart & R-chart

Type II Error

An event where the consumer accepts a bad lot (that was erroneously identified as good through the acceptance sampling process).

Type I Error

An event where the consumer rejects a good lot (that was erroneously identified as bad through the acceptance sampling process).

Slack Time

The amount of time a project activity can be delayed without delaying the project completion.

Acquisition Cost

The amount required to obtain one or more units of an item.

Statistical Process Control

The application of quantitative methods to monitor and classify the variability within a process (natural-cause or assignable-cause variation).

CRP (Capacity Requirements Planning)

The function of establishing, measuring, and adjusting limits or levels of resources (labor and machines).

PM.04 Leaving "no stone unturned" corresponds to which project-related activity?

creating the work breakdown structure

IM.09 If the inventory system says there is more inventory than what is physically on hand, the company runs the risk of...

overcommitting to the customer (saying product can be delivered before it really can be) losing credibility with its customers from giving inaccurate delivery quotes

PM.15 In which of the following project organization structures will project personnel battle with competing allegiances?

lightweight project matrix organization & heavyweight project matrix organization

MS.03 Through MRP logic, the is exploded through the product's bill of material to drive time-phases requirements for the product's components.

master production schedule

Conversion Process

A step or series of steps where value is added to an item or service.

Sales Force Composite

A method where estimates from field salespeople are "rolled up" or aggregated to produce a forecast.

Time Series Models

A set of data that is distributed over time and exhibits one of the following patterns: seasonal, trend, cyclical, and random.

MRP (Material Requirements Planning)

A set of techniques used to calculate demand for dependent items, the main output being planned orders and exception messages.

QC.07 Attributes control charts measure discrete, binary, countable data.

TRUE

QM.03 TQM (Total Quality Management) is a management approach to long-term success through customer satisfaction.

TRUE

Pareto Chart

A TQM tool that is a bar graph which displays the results of an analysis that shows a distinct variation from the few compared to the many.

Checklist

A TQM tool used to ensure that important steps have been taken.

Fishbone Diagram

A TQM tool used to identify the main causes and subcauses leading to an effect (symptom).

Straddle the Demand

A capacity acquisition strategy where capacity exceeds demand after expansion but then falls behind demand before the next expansion installment takes place.

Lead the Demand

A capacity acquisition strategy where expansion takes place before the demand materializes and never falls behind the capacity growing requirements.

Value Triangle

A conceptual framework that shows the relationship among the basic strategies in which firms compete.

Product-Process Matrix

A conceptual framework to help align operations to company offerings.

Forecast Bias

A deviation in the forecast that is consistently higher or lower than actual demand.

Market Surveys

A forecasting method that employs questionnaires or interviews, given to potential customers, to learn about consumer behavior.

Purchase Order

A formal authorization by a customer to buy from a supplier.

TO (Transfer Order)

A formal authorization to ship product from plant (or division) to another within the corporation.

JIT (Just-in-Time)

A philosophy of manufacturing based on planned elimination of waste and on continuous improvement of productivity.

Lean

A philosophy of production that emphasizes the elimination of waste, only performing activities that add value for the customer.

Reverse Logistics

A specialized segment of logistics that focuses on the return of products for repair, replacement or credit.

Supplier Scorecard

A tool to help companies evaluate supplier performance, often reviewing each supplier's delivery performance, quality, costs, and sustainability practices.

Production System

A transformational process that accepts inputs and converts them into the desired outputs.

Multimodal

A transportation method that combines two or more of these basic modes to provide a greater variety of services.

Coefficient of Correlation (r)

A value between -1 and 1 that is used to describe the relationship between two variables.

Process Capability Index

A way to determine if an in-control process is properly aligned or centered with design specifications.

Process Capability Ratio

A way to determine if the variability of an in-control process will meet design specifications.

JL.01 TPS (the Toyota Production System) and Lean Production are polar opposites.

FALSE

Project Phases

(1) Initiation, (2) Planning, (3) Execution, and (4) Close Out.

Variables Control Charts

SPC charts constructed from continuous measurable data (weight, height, length, time, etc.).

Holding Cost

The opportunity cost of alternative uses for funds invested in inventory.

14 Points

W. Edwards Deming's list of management practices to help companies increase their quality and productivity.

Reservation Value

On the demand side it is the highest price a buyer is willing to pay. On the supply side it is the lowest price a seller is willing to accept.

Layout

Physical arrangement of resources (machines, people, workstations, storage) within a facility.

PM.01 In which of the following settings would project management techniques be most appropriate?

Planning the introduction of the next-generation iPod

Attributes Control Charts

SPC charts constructed from discrete countable data (pass/fail, yes/no, etc.).

Service Level

The desired percentage probability of satisfying demand, used in the calculation of the reorder point.

Sampling Plan

The determination of the sample size and number of defectives that will trigger rejection of a lot.

Cycle Time

The duration between the completion of two successive, discrete units of production.

Project Duration

The estimated length of time for a series of activities within a network diagram or Gantt chart. It is typically depicted as one of the sides in the project management triangle.

Effective Capacity

The expected output capability of a resource or system after accounting for scheduled down time (like for maintenance).

Air Transport

The fastest and most expensive mode of transportation, ideal for shipping expensive, but light items that are urgently needed.

Scope Creep

The informal addition of unfunded features and services to a project.

Supplier Selection

The process by which firms identify, evaluate, and contract with suppliers.

Correlation

The relationship between two sets of data such that when one changes, the other is likely to make a corresponding change. Same-direction changes are said to be positive; opposite are negative.

Purchasing

The responsibility for procuring materials, supplies and services.

Deadhead

The return of an empty transportation container to its point of origin. Carriers try to avoid this situation.

Process Flow

The sequence of activities that result in a product or service deliverable.

Earliest Finish Time

The soonest a project activity can be completed based on predecessor completion times and activity duration.

Natural Causes

The source of expected and in-control variation within properly functioning process.

Assignable Causes

The source of unexpected out-of-control variation within a process.

Product Lifecycle Stages

The steps a new offering goes through from its introduction to its end including introduction, growth, maturity and decline.

Pipeline Inventory

The stock of goods that is in transit between locations.

Project Scope

The work required to complete a deliverable (a product, an event, etc.) with given features and options. It is typically depicted as one of the sides of the project management triangle.

Cost of Poor Quality

These costs fall into four categories: (1) internal failure costs, (2) external failure costs, (3) appraisal costs, and (4) prevention costs.

QC.01 Acceptance sampling is most appropriately performed __________ a production process.

before and after

PC.02 Which of the following are typical inputs into a production system?

personnel, engineering (product design), finance (capital)

FC.04 It could be said the forecasts drive the planning process, the lining up of resources to support those plans. Which purchasing/investment decision would you feel most comfortable making without having some sort of related forecast?

purchasing office supplies

IM.11 Which of the following is not an example of a fixed-period replenishment system?

quantity discount purchase

Control Chart

A TQM tool that provides a graphic comparison of process performance data with predetermined computed limits.

Flowchart

A TQM tool that shows the operations, transportation, storages, delays, inspections, and so on related to a process.

Source

A macro process involved in scheduling product deliveries, including receiving, verifying, and transferring products, and authorizing supplier payment.

TPS (Toyota Production System)

A manufacturing methodology that has evolved into the concepts of just in time and lean manufacturing.

ETO (Engineer-to-Order)

A production approach where customer specifications require unique design, customization, or new purchased materials.

MTO (Make-to-Order)

A production environment where products are made after receipt of the customer order. Key components typically include a combination of standard items and custom items.

MTS (Make-to-Stock)

A production environment where products can be finished before receipt of customer orders. Those orders are typically filled by existing inventory.

Work Breakdown Structure

A project deliverable that organizes the project work into assignable activities.

Delphi Method

A qualitative forecasting method where opinions from experts are combined in a series of iterations that leads to convergence on a solution.

Water Transport

A slower mode of transportation that is ideal for moving bulk items at a very low cost and is also great for long-haul movement of low-value commodities.

JL.05 Which one of the following is not one of the "seven wastes" outlined by Taiichi Ohno?

Inventory

Fixed-Location Storage

A method of stocking items in relatively permanent locations in a storeroom or warehouse. As a result, locations become familiar. This method uses more space but is less dependent on inventory tracking software.

Responsiveness

A basic strategy in which a firm competes by quickly providing products and services to its customers.

Project Crashing

Adding resources to critical path or near-critical path activities in order to shorten the duration of the project, done in the most cost effective way possible.

ERP (Enterprise Resource Planning)

An integrated information system that serves all departments within an organization.

Cycle Counting

An inventory accuracy audit technique where different classes of inventory are counted on different time intervals.

Multi-Sourcing

An acquisition strategy where many suppliers are used for the same product or service. This transactional approach creates strong price competition and provides many backup options.

Single-Sourcing

An acquisition strategy where the purchasing organization endeavors to secure high quality, short lead times, and shared savings from (only) one supplier for each part.

FTL (Full Truckload)

An agreement to ship a minimum of an entire truckload or container load to a single customer. The cargo is typically homogeneous and stays on the same vehicle from the origin to the destination.

Quantitative Forecast

An approach for predicting demand that is based on historical data.

Qualitative Forecast

An approach for predicting demand that is based on intuition or judgmental evaluation.

PS.09 A company's process strategy is its approach to converting resources (inputs) into goods and services.

TRUE

PC.13 The rate of inventions PRIOR to the Restoration of the Gospel was greater than the rate of inventions AFTER the Restoration..

FALSE

PS.16 When computing the theoretical minimum number of workstations for a product layout, you should always round down to the nearest whole number.

FALSE

QM.05 The "Total Quality Management" movement began with Motorola.

FALSE

QM.07 Deming was a big proponent of using quotas for measuring workforce performance.

FALSE

QM.09 Six Sigma certifications are administered by a single universally-recognized organization.

FALSE

QM.10 Deming's PDCA cycle and Six Sigma's DMAIC methodology represent vastly different approaches to improving quality.

FALSE

LM.05 Which of the following have driven growth in the freight transportation industry in the past few decades (check all that apply)?

Deregulation Free trade agreements On-line businesses (like Amazon.com, etc.) A general trend toward outsourcing

QM.11 ISO is a quality-oriented methodology which competes with Six Sigma.

FALSE

Break-Bulk

Dividing pallets, containers, truckloads, or railcars of homogeneous items into small quantities for use.

SM.02 Sourcing (or the function of Purchasing) has become less important as companies have outsourced more and more of their business processes.

FALSE

SM.06 An analysis of the total cost of ownership (TCO), when making purchasing decisions, shows that the costs for additional training, upgrades, maintenance, repair and other expenses are usually much smaller than the cost of acquisition.

FALSE

PC.03 Operations management deals with the set of activities that create value in the form of goods and services by transforming inputs into outputs.

TRUE

IM.05 An ABC classification is loosely based on

Pareto's Law

PM.07 The earliest start (ES) of an activity that has only one predecessor is simply the earliest finish (EF) of that predecessor.

TRUE

5 Ss

Refers to a number of terms that help to create a lean production environment. These include: sort, simplify, scrub, standardize, and sustain.

Independent Demand

Requirements for an item (usually at the top of the bill of material) that is unrelated to the requirements for other items.

Dependent Demand

Requirements for components that are calculated, not forecasted, through the MRP process (explosion of the bill of material).

PP.12 The time horizon for the production plan should be at least as long as the time it takes to make changes in the resource base being planned.

TRUE

PS.02 A process that utilizes inexpensive general-purpose capital equipment will tend to have higher skilled workers.

TRUE

PS.04 Generally speaking, the more specialized the production equipment, the lower the variable costs.

TRUE

Anticipation Inventory

Stocks of goods above and beyond pipeline inventory that are used to cover projected trends of increasing demands.

Hedge Inventory

Stocks of goods, beyond safety stock, to buffer against unknown future events that may or may not happen.

IM.10 The economic order quantity (EOQ) equation perfectly balances the tradeoff between order costs (or setup costs) and inventory holding costs (or financial opportunity costs).

TRUE

FC.14 A naive forecasting model assumes the new period's forecast will be the same as the last period's actual demand.

TRUE

FC.15 A naive forecast in March would be equal to the sales in February.

TRUE

FC.17 It is difficult to understand the significance of MAD without having information on the total number of units sold.

TRUE

FC.18 Data which exhibits a strong negative correlation (r is close to -1) can be very useful for the development of a causal or associative forecasting model.

TRUE

IM.01 A basic challenge of inventory management is to maintain an optimal balance between inventory investment and customer service.

TRUE

IM.12 When the desired service level is 50%, then safety stock is equal to zero.

TRUE

Backhaul

The process of a carrier contracting for the return trip from the original destination.

Acceptance Sampling

The process of examining a portion of received goods rather than the entire lot or shipment.

Supplier Development

The process of giving financial and technical assistance to existing and potential suppliers to improve or expand their capabilities.

Outsourcing

The process of having suppliers produce goods or services that were previously produced internally.

Output

The quantity or amount produced.

Control Limit

The upper or lower boundary within a control chart that separates natural-cause variation from assignable-cause variation.

Project Management

The use of techniques to organize, plan, schedule, direct, control and monitor the completion of a one-time deliverable.

Supply Management

The various tasks of identifying, acquiring, and managing the flow of products and services needed to run a business.

SM.10 Which of the following would be part of an effective supplier relationship management process?

collaborating with suppliers (exchanging information) evaluating supplier performance streamlining processes between a firm and its suppliers

MS.13 Which of the following are considered part of front-office applications in an ERP system?

credit sales force automation

PP.16 Which of the following "consume" the forecast?

customer orders

JL.14 Which activities help organizations understand what is going on "in the trenches"?

doing a "gemba walk", value stream mapping

PP.19 Which build strategy allows for greatest customer input into the design or configuration of the final product?

engineer-to-order

PM.12 Let's suppose you get assigned to lead a project that will require team members from a variety of functional areas (or departments) within your company. Deep functional expertise is not required from the team members. Rather, the project must be completed as quickly as possible (which will require a focus on cross-functional coordination). Which project structure would you recommend to the project sponsors (your management)?

project organization (heavyweight project matrix organization, all team members report directly to the project manager)

EDLP

A retail strategy of keeping prices low as opposed to having promotions at certain times.

x-Bar Chart

A run chart that evaluates the stability of process sample averages.

R-Chart

A run chart that evaluates the stability of process sample dispersion.

p-Chart

A run chart that monitors the number of defective products within a group of identical finished products.

c-Chart

A run chart that monitors the number of flaws within one unit of production or service.

PCE (Process Cycle Efficiency)

A measure of the value-added activity time within a series of operations.

Gemba

A Japanese term meaning "the real place." In business, it refers to the place where value is created. It also refers to a philosophy that says,go to the actual place and see the actual work if you want to improve a process or solve a problem.

Cost Leadership

A basic strategy in which a firm competes with low prices.

Differentiation

A basic strategy in which a firm competes with unique products and services.

Lag the Demand

A capacity acquisition strategy where expansion takes place only after the demand materializes and never exceeds the demand.

3PL (Third-Party Logistics)

A company that offers one or more logistics services to shippers, the most common being transportation management, freight forwarding, warehouse management, and light manufacturing.

SRM (Supplier Relationship Management)

A comprehensive approach to managing a firm's suppliers.

Service System

A configuration of resources that deliver a valuable action or deed, rather than a tangible product, to satisfy a customer need or want.

Network Diagram

A graphical tool that shows activity dependencies in a project.

ABC Classification

A grouping of items in decreasing order of annual dollar volume or some other user-defined criteria, designed to save money by applying looser controls to low-value items.

Value Stream Mapping

A lean-management method that helps organizations improve process efficiency.

BOM (Bill of Material)

A listing of all the components that go into a parent assembly showing the quantity of each required to make that assembly.

Multiplicative Seasonal Index

A method that employs a number to adjust the forecast for seasonality.

Road

A mode of transportation with low unit costs, high capacity, great flexibility, and can handle wide range of products.

EOQ (Economic Order Quantity)

A model that determines the amount of an item that should be purchased in order to balance holding costs and ordering costs.

Quality Loss Function

A parabolic approximation of the cost of a quality characteristic that deviates from the target value. This concept was introduced by Genichi Taguchi and is the impetus behind target-oriented quality.

Six Sigma

A philosophy and approach that provides tools for the improvement of business processes with the goal of reducing defects to fewer than 3.4 in 1 million attempts.

Gantt Chart

A planning tool, composed of horizontal lines that represent activity durations, used for the management of a project.

FC.16 Which of the following are true statements?

A principle of forecasting states, "The forecast is always wrong." Forecasting is as much of an art as it is a science

POQ (Production Order Quantity)

A quantity model that determines the amount of an item to be manufactured at one time.

Safety Stock

A quantity of inventory kept on hand to protect against fluctuations in demand or supply.

VMI (Vendor Managed Inventory)

A quick response means of optimizing supply chain performance in which the supplier has access the customer's inventory data and is resonsible for maintaining the inventory level required by the customer. See: Continuous Replenishment.

Planned Order

A suggested quantity, release date and due date created by the software's logic when it encounters net requirements in processing MRP.

Load-Distance Method

A technique for measuring the movement requirements in an office or functional layout.

Buy Item

A unique purchased part.

PDCA

Also known as the Deming cycle, a four-step process for making improvements (Plan-Do-Check-Act).

Henry Gantt

American mechanical engineer and consultant who developed visual methods to aid in the management of projects.

Frederick Taylor

An American mechanical engineer who sought to improve industrial efficiency. He is considered the father of scientific management.

Cross-Sourcing

An acquisition strategy that uses one supplier in one part of the business and another supplier in a different area of the business. These suppliers can compete for future business and provide a ready backup, if necessary.

Dual-Sourcing

An acquisition strategy where two suppliers provide the same products or services, with the business usually split 70/30.

Capacity Expansion Strategy

An approach to a firm's acquisition of resources that will either lead, lag, or track the customer demand.

Moving Average

An arithmetic mean of a certain number of the most recent observations.

Fixed-Position Layout

An arrangement where resources are brought to the place of production, typically used on large projects.

Activity

An assignable element of work within a project. Syn: task.

Weighted Moving Average

An averaging method in which the data is adjusted or weighted according to its importance.

Rail

An energy efficient mode of transportation that has low unit costs, high capacity, and can handle wide range of products.

Exception Message

An output of a system (usually MRP) that identifies the type of action to be taken to correct a current or potential problem.

NVA (non-value-added)

Any activity that doesn't enhance the form or function of the product or the delivery of a service (things for which the customer is willing to pay).

QM.04 Suppose you are a finance intern at a hospital and you are asked to participate on a team that is looking to address the low level of satisfaction among its staff. The hospital has received and documented hundreds of complaints from staff members (via surveys). At this point what would you recommend as a next step?

Categorize the complaints and show the count of each category in a Pareto chart in order to understand where the biggest problems are

Front-Office Applications

Computer programs that provide funtionality for customer-facing operations such as customer relationship management (CRM), sales force automation (SFA), customer support and field service.

Frank and Lillian Gilbreth

Considered the founders of modern industrial management who were pioneers of time and motion studies. They also wrote Cheaper by the Dozen.

SM.03 The acquisition or buying of goods is called purchasing or procurement, while the buying of services is generally called ______.

Contracting

External Failure Costs

Costs associated with problems found after the product reaches the customer.

Appraisal Costs

Costs associated with the formal evaluation of quality in the firm, including inspection, quality audits, testing, calibration and checking time.

Ordering Cost

Costs related to the clerical work of placing and receiving orders.

PM.10 Your team's project has fallen slightly behind schedule and will incur late penalties unless the project can be brought back on schedule. Which of the following actions would be most appropriate in this situation?

Crash or short the duration of those activities on the critical path with the lowest per-period crashing costs.

PS.06 According to the textbook, which of these firms relied most on responsiveness (flexibility) in its production and fulfillment process strategy during the 1990s?

DELL

QM.08 The two main methodologies of Six Sigma--DMAIC and DMADV--were primarily inspired by the

Deming Cycle (PDCA or Plan-Do-Check-Act)

FC.06 In which of the following scenarios would a qualitative forecasting method be most appropriate?

Determining how many people will show up at your first annual Christmas concert

QC.03 Suppose you are a new production supervisor at a dehydrated food producer. You want to impress your manager so you figure out a way to quickly gather product-weight sample data from the filling equipment to make control charts that can be reviewed each day in the plant's daily production meeting. Over the past week the product-weight sample data put into your daily x-bar charts have been well within the control limits. How should you use the information in your production meetings?

Don't use it yet. Use the sample data to also create R-charts to confirm that the dispersion of product weight is within control limits and then, in a subsequent meeting, present both x-bar and R-charts.

PC.09 Which General Authority is quoted extensively in this chapter, making a prophecy that directly relates to productivity?

Elder Eyring

FC.09 Companies should not create their own forecasting methods because there is a sufficient variety of proven methods, one of which will certainly be suited to meet their needs.

FALSE

IM.06 Cycle counting is an inventory accuracy audit technique that takes place once a year.

FALSE

JL.10 "Pull" production and "push" production are mutually exclusive, meaning they cannot coexist in the same production environment.

FALSE

MS.08 Lot size has a direct bearing on the calculation of net requirements.

FALSE

MS.09 MRP is used to calculate requirements for independent items.

FALSE

MS.11 Bill of material accuracy is kind of like Pareto's law. If you're 80% accurate, that is probably good enough.

FALSE

PC.04 Most firms provide either a product or a service, but rarely do they provide a mix of products and services.

FALSE

PP.11 The "chase" approach is the most appropriate build plan strategy for a manufacturer when it is easy to alter customer demand.

FALSE

PS.01 A process that utilizes inexpensive general-purpose capital equipment will tend to have lower variable costs than a process that utilizes expensive specialized capital equipment.

FALSE

PS.08 Efficiency, not responsiveness, should be the primary focus of processes that produce a great variety of products.

FALSE

FC.01 The story of Captain Moroni calling upon the Prophet Alma (to know where the Lamanites would attack) AND using spies to gather data illustrates the following point about forecasting:

Forecasts are often constructed from a combination of qualitative methods and quantitative methods

QC.09 You just got hired as a quality intern for a small startup making 3D printers. Each printer uses a number of small motors and one of your jobs is to make sure that these motors, received from a small supplier, meet your RPM (revolutions per minute) specifications. The supplier sends you an mean chart (x-bar chart) with each batch of motors to show you that the average RPMs for each batch meets your specifications. Notwithstanding this information from the supplier, you are seeing some unexpected inconsistent performance among the motors within each batch. What should be your first step to help you and the supplier get to the bottom of this issue?

In addition to a mean chart, have the supplier create and send you a range chart with each batch

LTL (Less than Truckload)

In this arrangement a shipper contracts for the transportation of freight that will not require an entire truck. Shipments are priced according to the weight of the freight, its commodity class, and mileage within designated lanes.

PM.05 Which statements are true about the critical path of a project?

It is equal to the duration of the project, There can be more than one critical path, Any delay to any activity on the critical path will delay the entire project

PM.08 Which is the correct formula for calculating slack time?

LS - ES

PP.10 The three general categories of approaches used to manage the trade-off in S&OP are..

Level, Chase, and Combination

FC.19 Suppose a professional forecaster told you what his MAPE was and what his MAD was, but he told you nothing of overall product sales. Under this scenario which measure of forecast accuracy would be more meaningful to you?

MAPE

PM.02 In which of the following settings would the use of project management techniques be least appropriate?

Managing the operations at the local Wal-Mart

Poka-yoke

Mistake-proofing techniques, in product or process design, which prevents errors.

PS.05 Which statement is the most accurate concerning the production processes of In-N-Out Burger and Taco Bell?

Neither has a better process. It would appear that each has a process that is appropriate for delivering the type of food choices that they offer.

Project Cost

One side or constraint in the project management triangle to go along with scope and time (duration).

Seven Wastes

Overproduction, queuing delays, unneeded movements, poor process design, excess inventory, non-value-added motion, and defects.

JL.02 Which car company has become a poster child for JIT production:?

Toyota

JL.11 It could be said a kanban inventory system focuses more immediate needs than MRP.

TRUE

JL.12 Which components would be good candidates for point-of-use inventory stocking in a computer manufacturing environment?

Screws Choice Fasteners Washers Packing materials

Batch Picking

Selecting items in a warehouse for multiple orders at the same time.

FC.05 No single forecasting method is appropriate under all conditions.

TRUE

FC.08 A variety of forecasting methods may be used for a product over the course of its lifecycle.

TRUE

MS.19 Retail transactions are usually less formal than business-to-business (B2B) system transactions

TRUE

PC.06 When computing multi-factor productivity it's important to use the same unit of measure when combining the costs of the inputs.

TRUE

PS.12 Companies that have become successful with a limited standard product offering often fall into the trap of subsequently broadening their product offering without making corresponding changes to their process strategy.

TRUE

PS.14 When computing the theoretical minimum number of workstations for a product layout, you should always round up to the nearest whole number.

TRUE

QC.08 Variability exists in all processes and comes from two sources: (1) natural causes and (2) assignable causes. The purpose of control charts is to detect assignable causes of variation.

TRUE

QM.01 While the term "quality" can mean different things to different people, one reputable definition could be that "quality means user satisfaction."

TRUE

JL.06 Who outlined the "seven wastes"?

Taiichi Ohno

Transactional Buying

Purchasing where price and availability are the primary considerations; where there is virtually no partnering between the buying and selling organizations.

Relational Buying

Purchasing where there is a high degree of partnering between the buying and selling organizations and business may be awarded on more than merely price.

QC.11 Which control charts cannot be used individually to determine if a process is in or out of control?

R-chart & Mean chart

LM.08 Which mode of transportation moves the most freight in terms of value?

ROAD

MPS (Master Production Schedule)

The anticipated build plan expressed in specific configurations, quantities, and dates.

MAD (Mean Absolute Deviation)

The average of the absolute differences between the forecast and actual demand.

Muda

The term for waste in lean manufacturing.

CRM (Customer Relationship Management)

The collection and analysis of information designed to help an organization put the customer first. It includes account management, order entry, payment processing, credit and other functions.

Latest Finish Time

The last point at which a project activity must be completed in order to not delay the project completion.

Latest Start Time

The last point at which a project activity must begin in order to not delay the project completion.

Critical Path

The longest sequence of activities through a project plan. It defines the project duration.

Push Production

The manufacture of items at times required by a given scheduled planned in advance.

Pull Production

The manufacture of items only as demanded for use or to replace those taken for use, ultimately based on demand from the customer to initiate.

Design Capacity

The maximum expected output capability of a resource or system.

Point-of-Use Inventory

The placing of items in the production process near the operation in which they will be consumed.

Cycle Inventory

The stock of goods that is required from one supply replenishment to the next.

WMS (Warehouse Management System)

The systems used to manage business processes within a storage or distribution facility, including receiving, putaway, picking, shipping, and inventory cycle counts.

MS.01 Just as standardized coinage and _________ were essential to the growth of Nephite society, standardized data and __________are essential to the successful management and growth of a __________.

measures systems business

MS.14 Which of the following are considered part of back-office (behind the scenes) applications in an ERP system?

production scheduling payroll MRP

ATO (Assemble-to-Order)

products are assembled from sub-assemblies and components after receiving a customer order

PM.14 Project organizations are typically temporary in nature because

projects have a limited lifetime

MS.17 Which of the following would not be considered a system transaction?

routing sheet

MS.16 Within a manufacturer or supplier's ERP (from the supplier's internal system perspective), a authorizes the shipment of goods to a customer.

sales order

MS.05 As part of the MRP output review process, a buyer or planner will convert or "graduate" a (computer generated) planned order into a __________.

scheduled receipt

PP.15 The main output of the sales and operations planning process is...

the production plan

MS.12 A bill of material is most like __________.

a cookbook

PP.09 Which tactics are used to change customer demand?

advertise, run promotions, bundle product offerings, increase prices

MS.02 The main inputs into the MRP process are...

bill of material data inventory status master production schedule

PP.14 Which build plan strategy is the most appropriate when demand is seasonal and it is easy to use temporary employees?

chase

PM.13 What is the best way for a project manager to lead his team to overcome the conventional wisdom (constraints) of the project management triangle? (Note, this is not a trick question but a real question intended for disciple-leader students at BYU-Idaho who believe in the prophecies spoken by President Eyring in "A Steady Upward Course," where graduates of BYU-Idaho will be able to do more with less.)

exercise faith and good works

PC.07 Productivity increases under which of these scenarios?

inputs decrease while outputs remain the same

LM.07 Which mode of transportation typically has the highest value-to-weight ratio? (Food for thought as you answer this question: Think of taking the value of the items typically shipped by a given mode and then dividing that value by the weight of the item. For example, compare the value-to-weight ratio of coal shipped on the water versus the value-to-weight ratio of an electronics item purchased online and shipped via truck or road. Which of these two has the higher value-to-weight ratio?)

Air

Project

A (typically) one-time endeavor with a specific objective to be met within predetermined time and dollar limitations and that has been assigned for planning and execution.

Production Order

A document conveying the authority for the manufacture of specified parts or products in specified quantities.

Functional Layout

A facility layout composed of groups of general purpose equipment, designed to support a wide variety of product and service deliverables. Examples include print shops, department stores, etc. Syn: Job Shop, Process Layout.

Product Layout

A facility layout composed of specialized equipment, designed to support an assembly line or line flow, producing a limited variety of products or services. Examples include automated car wash, car manufacturing, etc.

Cross-Dock Warehouse

A facility that receives truckload quantities and sends out less-than-truckload shipments. Walmart and Lowe's use these types of facilities in "hub and spoke" distribution network design.

Item Master

A file containing all records for a all products, be they purchased or assembled in house.

Project Management Triangle

A framework that helps portray the basic tradeoffs that must be made when working on a project.

SCOR Model

A framework that shows how supply chain participants engage in the same basic process blocks of plan, source, make, deliver and return.

Scatter Diagram

A graphical TQM tool to analyze the relationship between two sets of data.

Cellular Layout

A hybrid equipment configuration that combines elements of both line and functional configurations.

DC (Distribution Center)

A location to used to store inventory. Its name implies the inventory is faster moving than in a traditional warehouse.

TQM (Total Quality Management)

A management approach to long-term success through customer satisfaction, based on the participation of all members in an organization contributing to the improvement of processes, goods, and services.

Productivity

A measure of process output divided by input that helps us determine the effectiveness of the process.

Single-Factor Productivity

A measure of process output divided by only one input of the many possible inputs required to make the desired output.

MAPE (Mean Absolute percentage Error)

A measure of the statistical variation in a forecast expressed as a percentage.

Utilization

A measurement of the actual output relative to the optimal output expected (design capacity).

Efficiency

A measurement of the actual output relative to the standard output expected (effective capacity).

Kanban

A method of JIT production that uses standard containers with a single card attached to each. It is used as a "pull" signal to authorize production.

Discrete Order Picking

A method of selecting items for orders to be shipped, one order at a time.

Floating-Location Storage

A method of stocking items in which parts are placed in any space that is empty when they arrive at the storeroom or warehouse. This method uses less space but is more dependent on inventory tracking software.

Naive Forecast

A method where the forecast in the new period is equal to the actual demand in the previous period.

Factor-Rating Method

A simple but effective decision-making method or tool that allows users to assign numeric values and weights to decision criteria. The output of this method is a weighted score for each decision option.

Quality Circle

A small group of people who meet to uncover and fix problems related product or service delivery processes.

Project Charter

A statement that describes the scope and objectives as well as the key roles of the participants and involved in a project.

Regression Analysis

A statistical technique that expresses the functional relationship between dependent and independent variables.

Coefficient of Determination (r squared)

A value between 0 and 1 that is used to express the strength of the relationship between two variables.

Pipeline

A transportation mode ideal for the mass movement of liquid and gas products at a very low cost.

Continuous Production

A type of process in which items follow the same equipment routing and can be produced with little or no interruption.

Trend Projection

A useful forecasting method when historical data exhibits an upward or downward pattern.

QC.02 As the warehouse manager of a big-box sporting goods chain one of your responsibilities is to ensure the incoming quality of products before sending them out to the retail outlets. Over the past few months you have received several large shipments of athletic socks, sampled a few packages from each shipment (according to your sampling plan) before breaking down the bulk shipments and sending smaller cases to each retail outlet. Unfortunately, over this same period several stores have complained about a sewing defect with these socks. What is happening?

ALL OF THE ABOVE

Back-Office Applications

Applications that provide funtionality for internal operations such as inventory control, production, and supply chain activities.

Prevention Costs

Costs for the proactive activities that focus on the reduction of process failures including education, training, and supplier certification.

Internal Failure Costs

Costs of things that go wrong before the product reaches the customer. These include rework, scrap, downgrades, retesting, and so forth.

PS.11 The more customized the product, the easier it is to forecast demand.

FALSE

SM.11 An advantage to Single Sourcing is that it generates the highest possible level of competition.

FALSE

PS.10 Based on the chapter reading, rank order the following message-delivery methods from left to eight according to the flexibility of the method (i.e., the MOST flexible method goes to the LEFT, and the LEAST flexible method goes to the RIGHT).

Gospel instruction in the home Missionary discussion On-line chat General Conference address

SFA (Sales Force Automation)

Software used in customer relationship management and marketing that help systematize some sales management functions.

FC.07 The longer the forecasting horizon, the higher the aggregation that is used for forecasting (for example, dollars are used for long-term forecasts whereas individual products are used for short-term forecasts).

TRUE

FC.12 A time-series forecasting method relies solely on intuition and judgment.

TRUE

LM.01 Logistics management deals with the forward, and not the reverse, movement of material through the supply chain..

TRUE

LM.02 Supply chain management is a superset of logistics management.

TRUE

MS.10 Components in a bill of material can be both "parent" items and "child" items at the same time.

TRUE

QC.10 Producer's risk is the risk that a good lot will be rejected by the customer.

TRUE

QM.12 ISO certifications are administered by a universally-recognized organization. (Yes, dozens of institutes cooperate with ISO, but it is ultimately ISO that sets the standards for certification.)

TRUE

SM.15 When using the factor-rating method to assist in a decision-making process, it is important to assign weights to each criteria before scoring the supplier options, thereby eliminating possible manipulation of the process.

TRUE

PC.08 Which of the following is the best example of increasing productivity?

Taco Bell increased its revenues by adding a new menu item that consisted of ingredients that were already being used in other product offerings.

Kaizen

The Japanese term for improvement. It refers to continuing improvement involving everyone, both managers and workers.

Procurement

The business functions of purchasing, inventory control, traffic, receiving, incoming inspectionand salvage operations.

Multi-Factor Productivity

The measure of process output divided by more than one input, where those inputs must be expressed in a common unit of measure, like dollars.

Process Capability

The measurement of how well a process performs against design specifications.

Consumer's Risk

The probability that a bad lot with unacceptable quality will be accepted by the consumer.

Producer's Risk

The probability that a good lot with acceptable quality will be rejected by the consumer.

Ethical Sourcing

The process of making sure products and services are being acquired in a responsible and sustainable way.

Earliest Start Time

The soonest a project activity can begin based on predecessor completion times.

Idle Time

The time when operators or resources are not producing.

QC.04 When a process is "in control" it means...

Variation in the process comes from "natural" causes

FC.13 Which of the following are components of time series (data)?

all of the above

JL.13 Value Stream Mapping helps organizations:

all of the above

PM.06 A Gantt chart provides better visibility of interdependencies than a network diagram (especially when the project has many tasks).

all of the above

IM.03 Which category of inventory is used to cover projected trends of increasing demands due to planned sales promotions, seasonal fluctuations, plant shutdowns and vacations?

anticipation inventory

IM.08 The ABC principle states that effort and money can be saved by..

applying looser controls to the lower-dollar-volume class applying tighter controls to the higher-dollar-volume class

QM.13 You have just received a list of the most frequent complaints from customers of your department store. The list is sorted in descending order, from most frequent complaint to least frequent. Which TQM tool would you most likely use to help you get to the bottom of the most frequent complaint?

fishbone

IM.04 Pipeline inventory...

is the stock that is transit between locations

PM.11 A project manager should...

know how to effectively delegate, be able to articulate the vision of the project, have proper organizational authority, "leave no stone unturned" when identifying all the tasks to be performed