SCM 303 FINAL EXAM

capacity utilization = 10%

20 widgets were produced by a machine in an hour. Unfortunately, 10 of the widgets did not pass quality control (were not acceptable) and were scrapped (thrown in the trash). The machine's rated capacity is 100 widgets per hour. What is the capacity utilization of the machine in this hour?

pull system

5S is a critical foundation for a ______

minimizing wastes

5S is a lean tool aiming to?

material productivity = 0.025 pounds of steel per gallon of water

A 4000 pound coil of steel is produced by using 160,000 gallons of water as one input. What is the material productivity?

labor utilization = 87.5%

A worker was paid for an 8 hour shift but did not perform work for 1 hour during the shift. What is the labor utilization in this case?

job shop

Under a high variety low volume scenario, the best fit is ______

continuous processes

What processes are used for high volume products & services? They are product-focused processes

Kanbans

_____ regulate material flow because they pull the right amount of material

analytics

______ is an important part in operations management. It helps us to discover meaningful patterns in data to describe, predict, and improve performance.

U shaped manufacturing lines

_______ are often more efficient and effective than straight manufacturing lines

marketing

_______ is often involved in forecasting and S&OP

kaizen

______is the Japanese word for continuous improvement

process

a ______ can be in the form of Innovation, Procurement, Manufacturing, Order fulfillment, and Accounts Payable

Most of the measurements (99.73%) fall within ±3 standard deviations within the average. Two thirds of data (68%) falls within ±1 standard deviations within the average.

a normally distributed or "bell-shaped" curve has the following properties:

worker, skill type, machine, facility, etc.

a possible bottleneck can be almost anything in SCM such as: (4)

Process

a routing system is of critical importance for _______ focused systems so that you know the required flow through the system

operations, logistics, procurement

supply chain management comprises three major disciplines:

value proposition, critical customer, and capabilities

supply chain strategy consists of three main components:

wide variety

supply chains are found in a ________ of businesses

cycle time: 12 orders/ minute capacity in finishing job required: 5 orders/ min

suppose clerk A enters 5 orders per minutes. what is clerk's cycle time vs capacity?

bigger batches result in more inventory. if the inventory cannot be sold in a timely manner, it will result in detrimental consequences to company's financial performance

the bigger the batch is, the more efficient the operational process will be. However, why is it not always the case that companies will benefit from producing bigger batches?

corporate strategy, business unit strategy, and functional strategy

the hierarchy of the strategy is in the following top-bottom order: (3)

order qualifiers

the minimum standards to be met before customer considers a purchase

time-to-market lead time

the total time it takes for a firm to conceive, design, test, produce, and deliver a new or revised product

quality, cost, timeliness

three competitive priorities in SCM

transaction cost, salvage cost, purchase cost, and operating cost

total cost concept in supply chain includes elements such as (4)

we should institute leadership, not management and we shouldnt source on price alone.

what are the most important elements of Deming's 14 points?

world war II

what did the field of operations grow large out of?

Trying your hardest doesn't guarantee quality. Rating outcomes doesn't solve problems. Don't automatically blame the workers. Management sometimes would like to resort to slogans to control quality. Management is responsible for the process.

what did we learn from the in-class red bead experiment?

Define, Measure, Analyze, Improve, Control

what does DMAIC stand for?

if the process is in control or not, if so we can predict the future performance based on the current chart. it also tells us if any of the data points are outliers and do further investigation accordingly

what does a control chart in quality management tell us?

the base of an effective TQM program

what does six sigma build upon?

financial results

what does six sigma focus on?

that there is a place for everything and everything is in its place. it is more than a housekeeping issue

what idea does 5S promote?

it is a philosophy

what is the essence of lean?

sustain because it requires time and efforts to standardize the current or future processes

what is the most difficult S to achieve in 5S and why?

it serves as a memory prompt for the types of waste to look for in any process.

what is the real usefulness of an acronym like COMMWIP?

ineffective management and leadership

what is the root cause for most lean implementation failures?

both basic and advanced statistical tools

what kind of statistical tools does six sigma use?

apparel sewing process

what process most likely has the most jumbled flow?

Motorola

who first developed the Six Sigma concept?

Booz Allen Hamilton consultants

who termed "supply chain" in 1982?

1. to minimize setup time and maximize running time, 2. to achieve operational efficiency, as well as labor efficiency, 3. also there is a learning curve for companies to become more efficient in producing products or providing services in batches

why do companies tend to produce products or offer services in batches/lots?

Hares are flashier, faster, and more attractive

why do many managers prefer the "Hare" approach to process improvement rather than the "tortoise" approach?

variety of reasons such as recruiters rate MSU as a great place to live, student placement rates are very high, MSU SCM curriculum is comprehensive and broad, and MSU SCM faculties have published a lot of top journals

why is SCM ranked #1 at MSU?

"how is the decision being made?" "is this the way we really do it?" "why do we do it this way?" "why do we do that step?"

a value of a process flow chart helps you to think ________?, helps you to question, _________? triggers you to ask, ________? and helps you to explore, ________?

quality

given its many dimensions, _____ could be considered as Utility or Usefulness to specific customers

TQM manages the entire organization to excel in all dimensions of products and services that are important to customers.

how does TQM differ from traditional quality management?

prevents defects from moving downstream. it reduces the waste of correction

how does properly executed Andon decrease MUDA?

smaller

ideally, downstream forecasted volume is ______ than upstream forecasted volume

not necessarily

if a process appears to be in control on a control chart, does it mean that this process is producing good products?

3.4 ppb

if we apply six sigma to our production, what is the ideal defect rate?

in a pull system

in a ________, businesses build in response to orders

they covered up problems that should be solved rather than ignored

in a lean production system, the philosophy regarding large amounts of inventory means what?

adjust to longer-term structural changes

in a triple A supply chain, adaptability refers to:

increasing

in general, the tradability of goods has been _____ over time

upstream; downstream

in supply chain, _____ is toward suppliers; ______ is toward customers

eyeglass shop

in the video about the product-process matrix, what was the example of a job shop?

value proposition

includes a variety of features such as features that customers value and will pay for, a difficult to imitate source of differentiation, satisfies financial and strategic firm objectives, and deliverable using the firm's capabilities and supply chain

quality

is based on perception. there will be no definite answer regarding "what is the highest quality among a group of homogeneous products"

no; no

is being efficient always effective? is being effective always efficient?

no. both have their advantages and disadvantages

is single piece flow always better than batch flow?

single piece flow

is the time it takes for a widget to travel through the system faster for single piece flow or for batch flow?

overproduction

of the 7 deadly, wastes which one is generally considered as the worst?

Measure

of the five steps in DMAIC, which one differs the most from PDCA?

manufacturing

operations or production management are applicable to ______

Automation/Technology; Operations are increasingly outsourced (both Domestic and Offshore); Globalization and Competitive pressures.

Current operations challenges include? (3)

Optimize KPOVs & test the KPIVs; Redesign process, set pacemaker; 5S, Cell design, MRS; Visual controls and Value Stream Plan

DMAIC is important in Six Sigma. Improve phase includes: (4)

Yellow Belt, Green belt, Black Belt, Master Black Belt.

In a six sigma organization, normally you will find six sigma professionals in a hierarchy of the following order from bottom to top: (4)

close by

Just in Time (JIT) is likely to be more successful if a company has suppliers and warehouses located where?

process status

Kanban, Andon, and 5S all display ______

elimination of waste & respect for people

Lean is a management philosophy based on two central tenets:

Correction; Overproduction; Motion; Material Movement; Waiting; Inventory, and Processing.

Muda includes the following 7 wastes (COMMWIP):

Plan - define the problem Do - implement and collect data Check - study and analyze Act - if successful, follow new standard

PDCA includes the following components:

system cycle time = 0.1 hrs

Process A has a cycle time of 3 minutes. Process B has a cycle time of 0.1 hours. Process C has a cycle time of 120 seconds. What is the system cycle time?

Science

Process knowledge requires understanding in order to achieve improvement. This is characterized as _______

product-focused

Product Mill is most likely to be ______-focused?

Specific Metrics, Focus on financial results, Full-time Improvement Specialists and Structured Method

Six Sigma add to effective TQM in terms of (4)

bottleneck = task C cycle time A = 3 minutes/ unit cycle time B = 2 minutes/ unit cycle time C = 4 minutes/ unit System Cycle Time = 4 minutes/ unit System Capacity = 15 units/ hour

Suppose a process consists of three tasks: Task A, Task B and Task C. Task A can produce 20 units per hour. Task B can produce 30 units per Hour. Task C can produce 15 units per hour. Who is the bottleneck? What are the cycle times for each, including the system cycle time? what is the system's capacity?

Continuous Improvement; 5S; JIT production and material flow; Kanban production control system; Quality at the source and Minimized setup times.

To eliminate wastes, we can use the following methodologies: (5)

greater

all else being equal, the longer the transit time, the ______ the inventory

corporate strategy

among the various strategies, such as business unit strategies and functional strategies, _______ is more big pictured, has less detalil, and has the longest time horizon

very highly valuable

ancient supply chains such as the Silk Road or the Spice Trade were viable because the goods being transported were _____

no. they have their respective pros and cons

are continuous and machine-paced processes always more efficient than job shop and worker-paced lines?

reduced operational efficiency

both blocking and starving can result in ______

no

can all tasks be performed simultaneously in a sequential process flow?

yes

can multiple tasks be done at the same time in a parallel process flow?

no, they require multiple steps

can processes always be completely proceduralized through working research and benchmarking?

no

can services be inventoried?

no, price doesnt always decide quality

can we say that, "the higher the price the higher the quality of and product or service"?

how to meet customer requirements, how to lower costs while improving quality, and how to align supply chains with the corporate competitive strategy

common challenges in SCM include?

product

continuous flow is _______ focused

no

do all major companies define their supply chain organizations in the same way?

Employee Involvement, Process management, Top management Support, and Supplier quality etc.

effective TQM requires: (4)

functional products; innovative products

efficient supply chain design matches _____; while responsive supply chain design matches ______

never

forecasting is _____ perfect because it is predicting the future

operations

planning is a part of what?

travel and communication over long distances was very difficult and expensive

prior to 1800, why were most supply chains were localized?

six sigma

refers to the variation that exists within ± six standard deviations (not three standard deviations) of the process average.

1. lower value 2. increase value 3. normally remain the same

regarding value: 1. for a given level of quality (fixed level of quality), increasing price will ______. 2. for a given price (fixed price), increasing quality will ______. 3. if both quality and price increase proportionally at the same rate, value will _______