Exam 3 Material MAR 3203

Which of the following is an illustration of employee empowerment?

"No one knows better than those who do it"

Explanation of ISO 9000 seeking standardization

ISO 9000 seeks standardization in terms of procedures to manage quality. ISO 9000 is a set of quality standards developed by the International Organization for Standardization (ISO). The ISO 9000 quality standards focus on quality management procedures, documentation, and thorough leadership.

Explanation of non-critical activities

In a PERT network, non-critical activities that have little slack need to be monitored closely because near-critical paths could become critical paths with small delays in these activities. Tasks are considered critical path tasks when they will delay the entire project if they are not completed on time.

If the goals of JIT partnerships are met, which of the following is a result?

In-transit inventory falls as suppliers are located closer to facilities.

In which of the four major categories of quality costs would the costs associated with scrap and rework belong?

Internal failure Cost

Which one of the following is an example of JIT being used for competitive advantage?

Jones company has decreased the nuber of job classifications to just a few

Which of the following is specifically characterized by continuous and forced problem solving through a focus on throughput and reduced inventory?

Just-In-Time

The "four Ms" of cause-and-effect diagrams are

Material, Machinery, Manpower, and Methods

Which of the following is a basic assumption of PERT?

No activity in the network must be repeated

Which of the following statements regarding PERT analysis is true?

Only critical activities contribute to the project variances.

Explanation of PDCA in aspects of TQM

PDCA is most often applied to the continuous improvement aspect of TQM. PDCA (plan, do, check, act) is a circular model designed to help managers build continuous improvement into their actions plans.

Explanation of basic assumption of PERT

PERT analysis assumes that no activity in the network must be repeated. PERT assumes that critical and non-critical path activities must be completed. CPM assumes that activity times are known with certainty

Explanation of user-based quality

User-based definitions of quality focus on outcomes like better performance, higher quality, and nicer product features. This approach to quality is typically associated with marketing initiatives and consumers.

Quality "lies in the eyes of the beholder" is __________.

User-based quality

Explanation WBS

WBS stands for Work Breakdown Structure. Work Breakdown Structure is a method used to break down projects into individual activities and costs. This is an important step in understanding and defining project timelines and deliverables.

WBS stands for which of the following project management tools?

Work Breakdown Structure

Total quality management emphasizes __________.

a commitment to quality that goes beyond internal company issues to suppliers and customers

If a casual-dining restaurant is attempting to practice JIT and lean operations, which of the following would not be present?

Food preparation in large batches

Which of the following statements regarding Gantt charts is true?

Gantt charts are visual devices that show the duration of activities in a project.

Explanation of the four paths

Given the above scenario, there are four paths in the network. In this network, the four paths are A-C-E, A-D-E; B-C-E, B-D-E.

Which one of the following is a concern expressed by suppliers?

Having limited ability to respond to changes in product and quantity

What is the only internationally recognized quality standard?

ISO 9000

explanation of ISO 9000

ISO 9000 is a set of quality standards developed by the International Organization for Standardization (ISO). The ISO 9000 quality standards focus on quality management procedures, documentation, and thorough leadership. TQM, or total quality management, is an approach to quality management that focuses on the entire business process from suppliers to customers.

Building high-morale organizations and building communication networks that include employees are both elements of __________.

employee empowerment

One of Britain's largest children's hospital's working with Ferrari Racing is an example of __________.

external benchmarking

Which of the four major categories of quality costs is particularly hard to quantify?

external failure costs

Which one of the following is not a layout tactic in a JIT environment?

fixed equipment

The list of the 5Ss supports lean production by __________.

identifying non-value items and removing them, in the "sort/segregate" item

Attribute inspection measures __________.

if the product is good or bad

With respect to PERT and CPM, slack__________

is the amount of time a task may be delayed without changing the overall project completion time.

JIT makes quality less expensive because __________.

it prevents long runs of defects

The technique known as level schedules:

processes many small batches rather then one large batch

Which of the following is generally found in most JIT environments?

pull systems

Which of the following is not an attribute of lean operations?

pushing responsibility to the highest level possible through centralized decision making

Which one of the following is a characteristic of a JIT partnership?

removal of incoming inspection

PERT analysis computes the variance of the total project completion time as:

sum of the variances of all activities on the critical path

Characteristics of JIT partnerships with respect to suppliers include:

support suppliers so they become or remain price competitive

Which of the determinants of service quality involves having the customer's best interests at heart?

Credibility

Explanation of credibility

Credibility includes characteristics such as trustworthiness, believability, and honesty.

A project's critical path is composed of activities A (variance .33), B (variance .67), C (variance .33), and D (variance .17). What is the standard deviation on the critical path?

1.22

Lead time for computers is 5 days with a daily demand of 25 and safety stock of 5 computers. If management wants to use 10 kanbans how many computers should each one hold?

13

An activity has an optimistic time of 15 days, a most likely time of 18 days, and a pessimistic time of 27 days. What is the expected time?

19 days

Lead time for cakes is 2 days with daily demand of 10 cakes and safety stock of ½ a day. Each container (kanban) holds one cake. What is the correct number of kanbans?

25

A six sigma program has how many defects per million?

3.4

An activity on a PERT network has these time estimates: optimistic =2, most likely = 3, and pessimistic 8. Its expected time and variance (if it is a critical activity) are:

3.67 and 1

An activity has an optimistic time of 11 days, a most likely time of 15 days, and a pessimistic time of 23 days. What is its variance?

4

Companies with the highest levels of quality are about how many times more productive than their competitors with the lowest quality levels?

5

Lead time for computers is 7 days with daily demand of 5 computers and a safety stock of 1 day. Each kanban holds 8 computers. What is the correct number of kanbans?

5 The correct number of kanbans is 5. The number of kanbans should be equal to the ratio of (demand during lead time + safety stock) to container size. In this example, demand during lead time is 40 (daily demand is 5 computers and lead time is 7 days; 5 * 7 = 35 computers) and the safety stock is 1 day (or 5 computers). Thus, Kanban = (35 + 5) / 8 = 40 / 8 = 5

An activity on a PERT network has these time estimates: optimistic = 2, most likely = 5, and pessimistic = 10. Its expected time is:

5.33

The critical path for the network activities shown below is _______ with duration _______. Activity: A,B,C,D,E Duration:4,2,7,4,5 Immedia: A A B,C,D

A-D-E; 13

Explanation of typical inspection point

After a costly process is not a typical inspection point. The seven common inspection points include: -The supplier's plant while the supplier is producing -The receiver's facility upon receipt of goods from the supplier -Before costly or irreversible processes -At each step of the production process -When the production or service process is complete -Before delivery or shipment to the customer -At the point of customer contact

Explanation of inspection measures

Attribute inspection is an inspection point that focuses on classifying items as either good or defective. This approach does not define the degree of acceptability—a product is either good (it works) or it is defective (it does not perform).

Explanation of Deming being a strong proponent of training and knowledge

Based on his 14 Points, Deming is a strong proponent of training and knowledge. Many of the management quality points outlined by Deming highlight the importance of training and development initiatives designed to improve knowledge, provide education, and lead to self-improvement.

The Beta distribution is used in project management to

Calculate expected activity times

Explanation of cause and effect diagram

Cause-and-effect diagrams typically focus on the four Ms—material, machinery, manpower, and methods. These factors serve as sources and possible inspection points for quality-improvement initiatives.

Explanation on quality being more productive than competitors with lowest quality levels

Companies with the highest levels of quality are about 5 times more productive than their competitors with the lowest quality levels. Appropriately, managing quality has a number of benefits including increased productivity (up to 5 times more units produced per labor hour when compared to companies with less quality focus), increased sales, and reduced costs. All three of these factors boost profit.

The EF of an activity is the:

ES + Activity time

Which of the following is determined during the forward pass?

Early start

Explanation of Employee Empowerment

Employee empowerment is focused on increasing employee involvement in the production and/or service delivery process. Employee empowerment is critical because most errors are the result of faulty production methods and/or deficient practices. Empowerment programs give employees the opportunity to actually find solutions to system based problems.

Which of the following is not a reason for variability?

Employees, machines, and suppliers produce units that conform to standards.

Explanation of External benchmarking

External benchmarking occurs when one firm tries to model their performance off of other successful firms. For example, many companies have tried to use Google's famous employment practices in an effort to boost the productive output of their employees.

Explanation of PERT analysis

PERT analysis computes the variance of the total project completion time as the sum of the variances of all activities on the critical path. PERT (Program Evaluation and Review Technique) analysis is a technique used to help project managers monitor and control large, complex projects.

A production manager at a pottery factory has noticed that about 70 percent of defects result from impurities in raw materials, 15 percent result from human error, 10 percent from machine malfunctions, and 5 percent from a variety of other causes. This manager is most likely using __________.

Pareto Chart

Explanation of Pareto Charts

Pareto charts are a problem-solving tool that helps operations managers organize errors and defects to help identify appropriate solutions.

The three phases involved in the management of large projects are...

Planning, Scheduling, Controlling

A device or technique that ensures production of a good unit every time is a __________.

Poka-Yoke

Which of the following is not a goal of JIT Partnerships?

Removal of engineering changes

__________ is the amount of time an individual activity in a network can be delayed without delaying the entire project.

Slack Time -Total slack, on the other hand, represents the amount of time shared among non-critical path tasks on the same non-critical path.

Which of the following is not characteristic of a TPS employee?

Strict job classifications

Costs of dissatisfaction, repair costs, and warranty costs are elements of cost in the __________.

Taguchi Quality Loss Function

Beta Distribution Explanation

The Beta distribution is used in project management to calculate expected activity times. The beta distribution is used to calculate expected activity times by weighting three time estimates including the optimistic time of an activity, the pessimistic time of an activity, and the most likely time for an activity.

Explanation of EF

The EF of an activity is the ES + Activity time. EF, or early finish, is the earliest an activity can be completed and is determined by identifying the early start time (ES) and adding in the amount of time it will take to complete the activity (Activity Time).

Explanation of Taguchi quality Loss Function

The Taguchi Quality Loss Function is one of three related Taguchi concepts that are all directed towards improving product and process quality. The other two concepts are quality robustness and target-oriented quality.

Explanation of Math problem for Critical PAth

The critical path for the network activities shown below is A-D-E with duration 13. Critical path activities are those activities that will delay the entire project if they are not completed on time. In this case, activity A is an immediate predecessor for A and D and the final activity is E. The sum of the duration for this network is 13 (4+4+5 = 13).

Explanation of critical path

The critical path of a network is the longest time path through the network. Critical path activities are those activities that will delay the entire project if they are not completed on time. Identifying and understanding the critical path is one of the most challenging aspects of the managing and controlling a project.

Which of the following statements is true about the kanban system?

The customer workstation signals to the supplier workstation when production is needed

Explanation of Expected time and variance

The expected time and variance (if it is a critical activity) are 3.67 and 1, respectively. Expected time (t) is calculated using the following formula: t = (a + 4m + b) / 6, where a = optimistic time estimate (in this case 2); m = most likely time estimate (in this case 3); and b = pessimistic time estimate (in this case 8). Therefore; t = (2 + 4*3 + 8) / 6 t = 22 / 6 t = 3.67 Variance (v) is calculated using the following formula: v = [(b-a) / 6]2, where b= pessimistic time estimate (in this case 8) and a = optimistic time estimate (in this case 2). Therefore; v = [(b-a) / 6]2 v = [(8-2) / 6]2 v = [6/6]2 v = [1]2 v = 1

Explanation of expected time equation

The expected time is 19 days. Expected time (t) is calculated using the following formula: t = (a + 4m + b)/6, where a = optimistic time estimate (in this case 15); m = most likely time estimate (in this case 18); and b = pessimistic time estimate (in this case 27). Therefore; t = (15 + 4*18 + 27)/6 t = 114/6 t = 19

Explanation of expected time

The expected time is 5.33. Expected time (t) is calculated using the following formula: t = (a + 4m + b)/6, where a = optimistic time estimate (in this case 2); m = most likely time estimate (in this case 5); and b = pessimistic time estimate (in this case 10). Therefore; t = (2 + 4*5 + 10)/6 t = 32/6 t = 5.33

Explanation of Forward Pass

The forward pass involves determining the *Early Start*. The early start and finish times are determined during the forward pass, which is a process used to determine all of the early start times and finish times for activities in a project. The backward pass is a process that finds all the late start and finish times.

The number of kanbans should be equal to:

The ratio of (demand during lead time+safety stock) to container size

Explanation of standard deviation on the critical path

The standard deviation on the critical path is 1.22. To calculate the standard deviation you take the square root (√) of the sum of the critical path activity variances. In this case, Standard deviation = √.33+.67+.33+.17 Standard deviation = √1.5 Standard deviation = 1.22

Three phrases involved in the management of large projects

The three phases involved in the management of large projects are planning, scheduling, and controlling. The planning phase involves defining the scope of the project, setting goals, and organizing the team. The scheduling phase involves aligning resources (people, money, supplies) for specific activities. The controlling phase involves monitoring the use of resources and adjusting goals and timelines to meet time and cost specifications.

Explanation of time-cost tradeoffs in CPM networks

The true statement is that crashing shortens the project duration by assigning more resources to one or more of the critical tasks in a project. Any activity can be crashed if the duration of time can be reduced by adding resources (additional labor, materials, etc.); if the amount of time won't be reduced there is no need to crash a project. Crashing projects can occur with single (or multiple) critical paths.

Explanation of PERT analysis (True)

The true statement is that only critical activities contribute to the project variances. Project variance represents the sum of the critical path activity variances only. It does not represent the variances of activities that do not fall on the critical path. Additionally, in PERT analysis, each critical path activity has three estimates of duration - optimistic time, pessimistic time, and most likely time.

Explanation of Variance

The variance for this activity is 4. Variance (v) is calculated by using the following formula: v = [(b-a) / 6]2, where b = pessimistic time estimate (in this case 23) and a = optimistic time estimate (in this case 11). Therefore: v = [(b-a) / 6]2 v = [(23-11) / 6]2 v = [12 / 6]2 v = [2]2 v = 4

A simple CPM network has five activities, A, B, C, D, and E. A is an immediate predecessor of C and of D. B is also an immediate predecessor of C and of D. C and D are both immediate predecessors of E. Given the above scenario, which of the following is correct?

There are four paths in the network

Explanation of manufacturing-based definition of quality

This approach to quality focuses on quality outcomes like conforming to production standards.

Explanation of Pareto Chart

This manager is most likely using a Pareto chart. Operations managers can use Pareto charts as a problem-solving tool to organize errors and identify solutions. In this example, operations managers have identified that the top two causes of production errors are raw material impurities (70 percent of defects result from impurities in raw materials) and human error (15% of defects are from human error). Thus, managers should focus on these two issues as they strive for continuous improvement.

What is the rate required to push orders through the production process?

Throughout time

Which of the following is specifically characterized by a focus on continuous improvement, respect for people, and standard work practices?

Toyota Production System

Which of the following is not a typical inspection point?

after a costly process

Explanation of external failure cost

are particularly hard to quantify. External failure costs are those costs that occur after delivery of defective parts or services and include the costs of returned goods, product liability claims, decreased customer satisfaction, etc. These costs are difficult to quantify because the costs occur after the production cycle (and external to the business) and some outcomes such as lost goodwill and final costs to society are difficult to pinpoint precisely.

Dummy Activities

are used when two activities have identical starting and ending events.

In a PERT network, non-critical activities that have little slack need to be monitored closely__________

because near-critical paths could become critical paths with small delays in these activities

A customer service manager at a retail clothing store has collected numerous customer complaints from the forms they fill out on merchandise returns. To analyze trends of patterns in these returns, she has organized these complaints into a small number of sources or factors. This is most closely related to the __________ tool of TQM.

cause and effect diagram

A successful TQM program incorporates all of the following except __________.

centralized decision making authority

Which of the following is true about the ISO 9000 certification?

certified organizations must be audited every three years

PDCA is most often applied to which aspect of TQM?

continuous improvement

Which of these statements regarding time-cost tradeoffs in CPM networks is TRUE?

crashing shortens the project duration by assigning more resources to one or more of the critical tasks.

The critical path of a network is the__________

longest time path through the network

"Making it right the first time" is __________.

manufacturing-based definition of quality

Pareto charts are used to __________.

organize errors, problems, or defects

ISO 9000 seeks standardization in terms of __________.

procedures to manage quality

Based on his 14 Points, Deming is a strong proponent of __________.

training and knowledge

Which of the following is false regarding control charts?

values above the upper control limits always imply that the product's quality is exceeding expectations