DSCI Exam 2 Study Guide

In the context of quality control practices in manufacturing, if supplier documentation is done properly, incoming inspection can be

completely eliminated.

Kaizen is based on the concept of

continuous improvement.

Customer waiting time and order lead time are examples of

continuous metrics.

Cash-to-cash conversion cycle is the average time to

convert a dollar spent to acquire raw materials into a dollar collected for a finished good.

In industries where jobs have low skill requirements, changing workforce levels can be

cost effective.

Service quality is consistently meeting or exceeding

customer expectations (external focus) and service-delivery system performance criteria (internal focus) during all service encounters.

A process layout is the most suitable layout for a facility that handlesa wide variety of

customized orders.

Many applications of poka-yoke are

deceptively simple

The Six Sigma concept characterizes quality performance by

defects per million opportunities.

Managing orders, transportation, and distribution to provide goods and services is part of

deliver function of the Supply Chain Operations Reference (SCOR) model.

Specifications are targets and tolerances determined by

designers of goods and services.

In General Electric's Six Sigma problem-solving approach (DMAIC), the analyze phase involves

determining the most likely causes of defects.

Achieving cycle time reduction is

a core philosophy of Six Sigma.

A fixed-position layout is best suited for

a heavy machine tools factory.

A process layout requires

a higher worker skill level.

The relationship between the natural variation and specifications is quantified by

a measure known as the process capability index.

According to Philip B. Crosby's Absolutes of Quality Management philosophy, there is no such thing as

a quality problem.

If a process has a process capability index value (C p) of less than 1, it means that

a significant percentage of output will not conform to the design specifications.

The fixed-order quantity rule bases the order quantity on

a standard-size container or pallet load.

Procurement is the supply chain function responsible for

acquiring raw materials, component parts, tools, services, and other items required from external suppliers.

A poka yoke is an approach for mistake-proofing processes, using automatic devices or methods to

avoid simple human error.

An intermediary is any entity—real or virtual—that coordinates and shares information between

buyers and sellers.

Common cause variation appears at random, and individual sources

cannot be identified or explained.

A master production schedule (MPS) provides a means for evaluating alternative schedules in terms of

capacity requirements.

Air shipments have the highest transportation cost and can

carry limited weight.

In a cellular layout, the procedure of classifying parts with similar processing requirements into families is called

group technology.

An objective of ergonomics is to reduce energy requirements while

increasing accuracy.

The purpose of a master production schedule (MPS) is to break down the aggregate planning decisions into such details as

order sizes and schedules for product families.

Pipeline inventory is inventory that has been

ordered but is in transit.

A histogram is a basic statistical tool that graphically shows the frequency or number of observations of a

particular value or within a specified group.

In-process control is typically not performed by

people who run the back-end processes.

A Gallup study showed that there is a significant connection found in the productivities among workers who are allowed to

personalize their workplaces and those who are not.

In the context of the metrics used to identify improvements to the operation of supply chains, financial measures show how

supply chain performance affects the bottom line.

Ergonomic is concerned with improving productivity and safety by designing workplaces, equipment, instruments, computers, workstations, and so on that take into account the

physical capabilities of people.

Fixed-position layouts usually require a high level of

planning and control compared with other types of facility layouts.

Process layouts require complex

planning and control systems.

A run chart is a line graph in which data are

plotted over time.

The logistics function of a supply chain is responsible for

selecting transportation carriers and managing company-owned fleets of vehicles.

SERVQUAL is designed to apply to all

service industries.

Six Sigma can be applied to

service processes.

Facility layout enhances sustainability in

service-producing organizations.

The fixed-order quantity rule is best applied when

setup or order costs are high.

Special cause variation occurs

sporadically and can be prevented.

Research has shown that bringing the outdoor environment into the workplace lowers

stress.

Cycle time is the interval between

successive outputs coming off the assembly line.

The design of service facilities requires the clever integration of layout with

the servicescape and process design to support service encounters.

In the context of assembly-line balancing, idle time is the difference between total time available and

the sum of the actual times for productive tasks.

Electronic data interchange and Internet links speed up

the velocity of supply chains.

Capacity requirements are computed by multiplying the number of units scheduled for production at a work center by the unit resource requirements and

then adding in the setup time.

For goods-producing firms, resource planning does scheduling for individual subassemblies and resources by

week and day take place at the disaggregation level.

Disaggregation is the process of translating aggregate plans into short-term operational plans that provide the basis for

weekly and daily schedules and detailed resource requirements.

In manufacturing, a master production schedule is a statement of how many finished items are to be produced and

when they are to be produced.

One of the advantages of a product layout is that it has low

work-in-process inventories.

The International Organization for Standardization (ISO) is a specialized agency for standardization that was founded in 1946, and it is composed of representatives from the national standards bodies of

91 nations.

Logistics is the discipline of managing the flow of materials and transportation activities to ensure

adequate customer service at reasonable cost.

Enterprise resource planning (ERP) systems integrate

all aspects of a business into a unified information system.

Capacity requirements planning is the process of determining the amount of labor and machine resources required to accomplish the tasks of production on a more detailed level, taking into account

all component parts and end items in the materials plan.

In the context of aggregate planning options, lost sales and customer loyalty costs are

an implication of allowing stockouts.

The periodic-order quantity (POQ) can be determined using an economic time interval, which is the economic order quantity (EOQ) divided by

annual demand.

Organizations that need the ability to provide a wide variety of services to customers with

differing requirements usually use a process layout.

International Organization for Standardization (ISO) 9001:2015 standards apply to all types of businesses, including

electronics and chemicals.

Compared to product layouts, process layouts require a lower investment in

equipment.

Reverse logistics refers to managing the flow of

finished goods, materials, or components that may be unusable or discarded through the supply chain from customers toward either suppliers, distributors, or manufacturers for the purpose of reuse, resale, or disposal.

M. Juran defined that Quality is

fitness for use.

The production of large goods such as ships is best accomplished using a

fixed-position layout

The automation potential is moderate with

fixed-position layouts.

Alex, the manager at Rues and West Inc., wants to know the sequence of the production process in the company to determine if any process can be combined or eliminated. In this case, a

flow chart will suit Alex's requirement.

Six Sigma is a business improvement approach that seeks to find and eliminate causes of defects and errors in manufacturing and service processes by

focusing on outputs that are critical to customers, resulting in a clear financial return for the organization.

A cellular layout is not designed according to the

functional characteristics of equipment.

Job enrichment is vertical expansion of job duties to

give the worker more responsibility.

Return facilitators specialize in

handling all aspects of customers giving back a manufactured good or delivered service and requesting their money back, repairing the manufactured good and giving it to the customer, and/or invoking the service guarantee.

In the context of measuring supply chain performance, the goal of sustainability measures is to

have a carbon-neutral supply chain.

Vendor-managed inventory (VMI) often results in

higher customer inventories than necessary.

In the context of designing control charts, a large sample allows small changes in process characteristics to be detected with

higher probability than a small sample size.

In the context of statistical process control and variation, if no special causes affect the output of a process, we say that the process is

in control.

The lot-for-lot (LFL) rule is best applied when

inventory-carrying costs are high.

In the context of SERVQUAL, assurance is the

knowledge and courtesy of service providers and their ability to convey trust and confidence.

Equipment schedules are stable in a

level production strategy.

One of the disadvantages of a product layout is that it has

low flexibility.

In a cellular layout, additional floor space is not required because

machines are very closely linked within a cell.

Prevention costs are costs expended to keep nonconforming goods and services from being

made and reaching the customer.

Resource management for most service-providing organizations generally does not require as many intermediate levels of planning as it does for

manufacturing.

Technology upgrades and backup systems and sites can help

mitigate security risks.

The task of quality control is to ensure that a good or service conforms to specifications and meets customer requirements by

monitoring and measuring processes and making any necessary adjustments to maintain a specified level of performance.

Inventory turnover is a measure of how quickly goods are

moving through the supply chain.

Execution refers to

moving work from one workstation to another, assigning people to tasks, setting priorities for jobs, scheduling equipment, and controlling processes.

Megan plans the facility layout of her new shop that would sell a variety of healthcare industry machines. She arranges the machines in a way that the machines are grouped according to their functions. This is an example of a

process layout.

The Pharmaceutical Manufacturers Association defines a certified supplier as one that, after extensive investigation, is found to

provide material of such quality that routine testing on each lot received is unnecessary.

One of the differences between product layouts and process layouts is that unlike product layouts, process layouts

provide more flexibility.

Joseph M. Juran advocated the use of quality cost measurement to focus attention on

quality problems.

Materials requirements planning explosion is the process of using the logic of dependent demand to calculate the

quantity and timing of orders for all subassemblies and components that go into and support the production of the end item(s).

Aggregate planning helps in defining budget allocations and

resource requirements.

Dr. W. Edwards Deming advocated a process to guide and motivate improvement activities known as

the Deming cycle.

Order amplification in the supply chain leads to

the bullwhip effect.

A high average inventory value does not reduce

the chances of inventory obsolescence.

The lot-for-lot (LFL) rule ignores

the costs associated with purchase orders.

Internal failure costs are costs incurred as a result of unsatisfactory quality that is found before

the delivery of a good or service to the customer.

Keeping special cause variation from occurring is

the essence of statistical quality control.

Using color-coded wires to reduce mistakes associated with assembling complex electronic products is not an example of an application of

the kaizen concept.

The GAP model helps managers analyze goods and services and the processes that make and deliver them to identify and close

the largest gaps and improve performance.

A product layout is an arrangement of physical facilities based on the sequence of operations that is performed during

the manufacturing of a good or delivery of a service.

The value of the process capability index, (Cp), does not depend on

the mean of the process.

Gross requirements are the quantity of a component needed to support production at

the next-higher level of assembly.

International Organization for Standardization (ISO) 9001:2015 defines quality system standards, based on the premise that certain generic characteristics of management practices can be standardized and that a well-designed, well-implemented, and carefully managed quality system provides confidence that

the outputs will meet customer expectations and requirements.

According to a study conducted by Software Advice, the likelihood of consumers buying a particular product is affected when

the production of that product causes reduced environmental impact.

Standard control charts are not effective when

the rate of defects is extremely low.

among workstations so that each workstation has—in the ideal case—

the same amount of work.

Purchasing can have a significant impact on

total supply chain costs.

The objective of assembly-line balancing is to minimize the imbalance among workstations while

trying to achieve a desired output rate.

Dr. W. Edwards Deming defined quality as predictable degrees of

uniformity and dependability at a low cost and suited to the market.