Supply Chain 303 chapter 2
Inventory held due to bottlenecks in a process causes:
All of these: -Increased labor costs -Quality issues -Increased storage requirements #Inventory due to bottlenecks creates requirements for more space to store inventoried items, labor to track and manage that inventory, and leads to increased damage from handling and delays in diagnosing the causes of quality problems.
Which of the following are the components of a queuing system?
Arrivals Waiting area Servers
"Queuing" means the scientific study of the use of the letter Q in the English language.
False
Process thinking causes managers to address critical process elements, including:
If you don't like the outcome, change the process. -Outputs become viewed as the result of the process; if you don't like the outcome, change the process.
McGreen Burger Shop sells about two burgers per minute. Although the cook can cook up to 10 burgers per minute, he starts to cook another burger only after the salesperson removes a burger from the ramp. The ramp is large enough to hold only five burgers and keep them warm until a sale is made. This is an example of a:
Pull system. -This describes a pull system (as in the case of a kanban)—the other options are not appropriate.
Which of the following statements is true of Push and Pull systems?
Push and Pull systems are opposite but can still be used together
A six sigma (6σ) approach to quality:
focuses on preventing defects by using data to reduce variation and waste.
Good reasons to reduce your setup times in a factory are: (Choose all that apply)
-A down machine has no output. -Long setup times create additional inventory.
Which of these is not a cost of quality?
-Design cost
Total Quality Management: (Choose all that apply)
-Is managed proactively -Focuses on the customer
Continual improvement of processes is important because:
-Technology is constantly changing. -Customer preferences change over time. -Competitors are improving their processes. Operations managers do not work in a static world.
General supply chain risk management and supply chain disruption prevention is based on:
-general quality management and risk management concepts
Supply chain disruptions are:
-unplanned and unanticipated
Which of the following lean principles best communicates the notion of demand synchronization?
Build only as quickly as customers want them. -"Build only as quickly as customers want them" articulates the notion of demand synchronization.
A process with Six Sigma quality is expected to produce how many defects?
3.4 defects per million opportunities -Six Sigma quality means 3.4 defects per million opportunities.
Under Juran's Law, whenever a problem occurs, what percentage of the time is the problem the result of a system/process error?
85 percent -85% of operational problems are the result of a system or process error, not human error.
Which phrase/word best captures what lean is?
A corporate philosophy -The lean systems approach is a philosophy of operations management used in various activities of the enterprise.
ISO 9000 defines a set of internationally accepted standards for:
Business quality management. -ISO 9000 is a broad set of standards applied to business quality management, not just product quality, quality control, or operations management.
The Plan-Do-Check-Act cycle is best defined as:
A method used to guide problem identification and solution. -PDCA is a simple problem-solving method, also called the "Deming wheel."
An example of a short-term capacity increase decision is:
Adding low-skilled labor. -Of these options, adding low-skilled labor is the easiest to implement and to reverse.
Supply Chain Disruptions could impact:
All of the answers -outgoing goods delays -manufacturing operations planning software -incoming goods delays -counterfeit product co-mingled in the marketplace
The root cause of a supply chain disruption could be:
All of the answers -unintentional -from a manufacturing non-conformity -from a natural disaster -intentional
Factors contributing to the success of a TQM effort do not include:
An uncomplicated product -Labor/management trust, charismatic leadership and a compelling motivation are among the factors contributing to the success of a TQM project.
The purpose of the kanban card is to:
Be a signal from the user authorizing the maker to start producing the required parts. -The word "kanban" is described in the text as the Japanese term for "signal." Its purpose is to authorize manufacture of the required parts.
n process improvement projects, why should we focus our efforts on those processes that consume the most resources (e.g., labor, space, capital, etc.)?
Because that is where we get "the most bang for our buck." -We focus on the processes that consume the most resources because that is where improvements can have the greatest return.
We have a situation where we have many different processes; high quantities are required to deliver the product's value both on the factory floor and in the customer's use. Which of the following categories of waste in product design have we encountered in this situation?
Complexity -This is a straight definition-based question. The description provided directly corresponds to the definition of complexity as provided in Table 8-6
The degree to which the product meets its' design specifications is called:
Conformance quality -Conformance quality refers to the degree to which the product meets its' design specifications.
The focus of the first step in the DMAIC process is on:
Critical-to-quality characteristics.
"Zero defects" is a concept of quality management of which thought leader?
Crosby -Phillip Crosby's quality programs were built on the concept of zero defects.
If you maintain inventory at a constant level and keep the throughput rate constant:
Customer delivery dates become more reliable
Which two of the following effects directly result from bottlenecks?
Decrease in output and increase in lead-times. -Bottlenecks limit output and extend lead times.
At the heart of the Six Sigma program is a five-step process called D-M-A-I-C. These letters denote a major activity that must be completed to achieve the objectives of Six Sigma. These activities are:
Define, Measure, Analyze, Improve, and Control. -The acronym DMAIC stands for: Define, Measure, Analyze, Improve, and Control.
The idea that variability is the source of most quality problems was a major contribution of which quality management thought leader?
Deming -The idea that variability was the source of most quality problems originated with W. Edwards Deming.
An application of the DMAIC process to product design is known as:
Design for Six Sigma. -The acronym DMAIC stands for: Define, Measure, Analyze, Improve, and Control. In turn, design for six-sigma aims to develop products that fit the six-sigma processes. DMAIC is centered on continuous improvement, which is the ultimate goal of any six-sigma process. Design for six-sigma is like DMAIC but applied to product design rather than improvement of existing products and processes.
Lean design strives to achieve which of the following objectives?
Design products that exactly meet customers' needs -One of lean design's three major goals is to design products that exactly meet the customer's needs.
If a product includes features that customers care most about, we would say that it has high:
Design quality. -Design quality occurs when product features meet customers' desires and needs.
A Push system requires a high degree of coordination between production stations.
False
Design-for-Six-Sigma programs offer a set of quality standards accepted by all industries.
False
Scheduling major change-overs sequentially helps to shorten overall setup times for the factory.
False
Throughput, sometimes referred to as output rate, is expressed in units produced per hour.
False
Which of the following would you NOT expect to find in a company attempting to implement lean/just-in-time production?
Inspections after each piece is produced -Inspections after each piece is produced violates the Lean Systems Objectives of building with perfect quality and with no waste of labor, materials or equipment.
Little's Law states there is a relationship between:
Inventory Flow time Throughput
In the lean systems approach, as a system improves, it should have ____________ inventory on hand.
Less -One of the prime reasons for the lean approach is to reduce inventory.
What can managers do with queuing theory?
Measure and predict performance
Subcontracting is typically considered at what time horizon when doing capacity planning?
Medium-term -Subcontracting is thought of as a medium-term capacity decision.
Product fraud (including counterfeiting, stolen goods, substandard or mislabeled products):
None of the ab -is such a low consequence that it can be ignored by SC managers -is the responsibility of a company's corporate security or packaging group. -is such a low likelihood that is can be ignored by SC managers -has countermeasures that are different from traditional SCM so it can be ignored by SC managers
If a company can eliminate all sources of variance in a process:
None of these are true. -Continuous improvement will not be necessary. -There will be no constraints in the process. -It will be able to operate at maximum capacity at all times. #Eliminating variability does not remove constraints or eliminate the need for improvement. Maximum capacity cannot be achieved over long periods of time.
The types of costs included in a cost of quality analysis include:
Prevention, appraisal, and failure. -Prevention, appraisal, and failure costs are included in a cost of quality analysis.
An initial step in implementing lean is:
Outsource any non-core activity that can be done more efficiently by a supplier than by the firm. -An initial step in implementing lean is to outsource any activity that a supplier can do better than the firm and that is not a core competency of the firm.
Misuse of automation is a root cause of which of the following types of waste?
Overproduction -Misuse of automation is one of the root causes of both overproduction and waiting types of waste.
A process having the same activity being performed by two or more resources simultaneously is said to have what kind of structure?
Parallel -In a Parallel structure, an activity is done by two or more resources simultaneously.
Two dimensions of product quality are hard to measure objectively and are therefore subject to subjective assessment. One of those subjective dimensions is:
Perceived quality -Perceived quality is a subjective assessment based upon image, advertising, reputation, or other information related to the product's attributes. The other subjective dimension of product quality is aesthetics.
Kaizen events are most effective when applied to problems involving which of the following elements?
Processes -A Kaizen event is a short-term project aimed at improving an existing process or an activity within a process.
Achieving the goal of producing at the output rate that matches the rate of customer demand is the goal of:
TAKT time flow balancing. -TAKT Time flow balancing is a lean scheduling technique that aims to synchronize the output rate with the rate of consumer demand.
Which of the following statements is false?
Quality dimensions are easy to measure for tangible goods, while they are difficult to measure for services. -Both tangible goods and services have aspects of quality that are measurable and others that are subjective and difficult to assess.
If a tangible good or service performs the promised function dependably, we say that it has high:
Reliability. -Reliability is the length of time (or number of instances) a product performs as planned before a failure occurs.
A production kanban authorizes a worker to:
Replenish an empty bin. -Authorizing a worker to replenish an empty bin is the definition of a production kanban.
Which of the following is NOT a basic activity type in processes?
Reporting -Operation, transportation, inspection, delay, and storage are the basic activity types in a process.
Implementation of a Six Sigma program typically involves:
Setting up training at various levels including green belt and black belt training. -Six Sigma starts with training at different levels.
Which of these is a concept for reducing setup times?
Single minute exchange of die
Taichi Ohno, the founder of lean/just-in-time, when he came to America in the 1950s was most impressed with which of the following American developments?
The American supermarket -In the American supermarket, Ohno found his vision of the ideal operating system.
Some estimates place the total costs of quality to be:
Some estimates place the total costs of quality to be:
The TQM view of organizational structure states that:
The TQM view of organizational structure states that: -The TQM view is that managers must support workers, not the other way around.
An organizational culture is shaped by:
The actions taken by leadership -Leaders have to recognize that their actions, more than their words, help shape an organization's culture.
A Pull system is likely to struggle to meet demand during demand spikes.
True
In which operational setting has lean/just-in-time experienced the lowest levels of acceptance/implementation?
Turbulent business settings -In turbulent business environments, lean/just-in-time has found very limited application (Table 8-4).
Which of the following results in waiting lines?
Variability
Vulnerability, as applied in this chapter, is:
a system weakness
Supply may contribute to the containment of the costs of poor quality by addressing:
appraisal costs, internal costs, external costs and prevention costs. -The supply process touches on all aspects of quality to a greater or lesser degree. Prevention costs relate to all activities that eliminate the occurrence of future defects or nonconformance to requirements. Appraisal costs represent the costs of inspection, testing, measuring, and other activities designed to ensure conformance of the product or service to quality standards and performance requirements. Internal failure costs are the costs incurred within the operating system as a result of poor quality. External failure costs are incurred when poor-quality goods or services are passed on to the customer and include costs of returns, replacement of services, warranty costs, and management time handling customer complaints.
The definition of "Supply chain risk management"
as with related SCM definitions, there is not 100% agreement
Process variation that are intrinsic to the process are:
common, nonassignable causes of variation.
ISO 9001: 2015:
defines the requirements a quality system must meet but does not dictate how they should be met. -ISO 9001 defines the requirements a quality system must meet but does not dictate how they should be met, leaving scope and flexibility for implementation in different business sectors and business cultures, as well as in different national cultures.
The characteristic of a service that has the greatest impact on the ability to define, measure and control service quality is:
degree of tangibility. -Because the intangible nature of many services prevents storage, delivery tends to be instantaneous. Quality control has to be performed while the service delivery is in progress, or afterward. It may be difficult to interrupt the process, even if simultaneous quality control is possible.
The best type of inspection to use is
dependent on the nature of the purchase. -The type of inspection, its frequency, and its thoroughness vary with circumstances. In the final analysis, this is a matter of comparative costs. How much must be spent to ensure compliance with specifications? Organizations with world-class quality do not rely on inspection—quality is built into the process (e.g., jidoka).
Quality improvement programs for goods are initiated by a desire to:
eliminate incoming inspection. -Quality improvement programs are designed to make the product (good or service) right (quality) the first time rather than using inspection as a means of getting to quality. The goal is to achieve zero defects by building quality into the process.
When consideration total cost of ownership and total product experience (TCO-TPE), supply chain risk management:
helps balance the enterprise-wide decisions
Lean quality management philosophy is based on:
maximizing customer value and minimizing waste. -Lean is a management philosophy focused on maximizing customer value and minimizing waste. Waste, or "muda", comes in seven forms: overproduction, waiting, transportation, nonvalue-adding processes, inventory, motion, and costs of quality (scrap, rework, and inspection).
A supplier certification program:
may enable the buyer and seller to lower costs and improve quality.
A formal service quality evaluation process:
measures the gap between service expectations and performance perceptions. -
Quality control in services is:
more difficult for customized services delivered by highly skilled workers. -Services requiring highly skilled individuals may require the purchaser to distinguish between levels of professional skill and may also require extensive ongoing communication between requisitioner and supply manager through all phases of the acquisition process to accurately assess quality delivered.
ISO 9001:2015 provides a tested framework for a systematic approach to consistently delivering product that satisfies customers' expectations by:
providing a set of standardized requirements a quality system must meet.
A sampling technique in which every element in the population has an equal chance of being selected is called
random sampling.
The real costs of quality:
rise significantly as defects increase in the finished product.
Quality function deployment:
seeks to understand what value represents to the customer, and provides direction on the appropriate level of product performance and which features should be included.
A sampling technique that is based on the cumulative effect of information that every additional item in the sample adds as it is inspected is called:
sequential sampling. -Sequential sampling may be used to reduce the number of items inspected in accept-reject decisions without loss of accuracy. It is based on the cumulative effect of information that every additional item in the sample adds as it is inspected. After each individual item's inspection, three decisions are possible: accept, reject, or sample another item.
The match between a commercially available material, good or service and the intended function is known as:
suitability. -By definition, the answer is suitability. Suitability is often part of a quality assessment and the determination of best buy. Reliability is a mathematical probability. Functionality means something does what it is supposed to do.
When consideration total cost of ownership and total product experience (TCO-TPE), supply chain risk management is a concept developed by:
supply chain managers who were trying to evaluate their risks
Supply chain risk is a function of considerations such as:
threat, vulnerability, consequence
Determination of the "best buy" is based on:
trade-offs among stakeholders (e.g., marketing, operations, and supply).
An example of an external failure cost is:
warranty costs. -External failure costs are incurred when poor-quality goods or services are passed on to the customer and include costs of returns from customers, replacement of services, warranty costs, and management time handling customer complaints.