Scm 301 Exam 3

What does six sigma allow firms to do?

Visually monitor process performance Compare the performance to desired levels or standards Take corrective action

Explain machines variation

Broken equipment

Define the DMAIC Cycle

Define, measure, analyze, improve, and control

Formula for DMPO

(Number of defects / (Number of opportunities for error per unit) x Number of units) x 1,000,000

What is set in order?

A place for everything and everything in its place

Which of the following is the hierarchical operations planning process order? A. 1st - Resource requirements plan (RRP), 2nd - Rough-cut capacity plan (RCCP), 3rd - Capacity requirements plan (CRP) B. 1st - Rough-cut capacity plan (RCCP), 2nd - Resource requirements plan (RRP), 3rd - Capacity requirements plan (CRP) C. 1st - Capacity requirements plan (CRP) 2nd - Resource requirements plan (RRP), 3rd - Rough-cut capacity plan (RCCP), D. None of these

A. 1st - Resource requirements plan (RRP), 2nd - Rough-cut capacity plan (RCCP), 3rd - Capacity requirements plan (CRP)

A check sheet A. A tool to determine the frequency of specific problems B. A tool to check the flow diagram for problems in the process mapping C. A sheet to capture the savings of six sigma implementations D. None of the above

A. A tool to determine the frequency of specific problems

Which of the following is a Long Range Materials Plan: A. Aggregate Production Plan B. Master Capacity Plan C. Materials Requirements Plan D. Capacity Requirements Plan

A. Aggregate Production Plan

What materials plan is for planning product families? (product families → group of finished goods products)? A. Aggregate Production Planning B. Master Production Schedule C. Material Requirements Planning D. Resource Requirements Planning

A. Aggregate Production Planning

An integral part of Six Sigma is: A. Firms committing to a program of continual reassessment and improvement B. Using ABC analysis to divide on-hand inventory into three classes C. Moving new products to market more quickly D. Enterprise resource planning

A. Firms committing to a program of continual reassessment and improvement

What is planned order release? (Planned order release is the most important output) A. Order to the shop floor or supplier for more produce B. Release of received product from a supplier C. A reduction in the setup time to release products quickly D. None of the above

A. Order to the shop floor or supplier for more produce

Which tool is useful for presenting data in an organized fashion, indicating process problems from most to least severe: A. Pareto Charts B. Check Sheets C. Cause-and-Effect Diagrams D. Fishbone Diagrams

A. Pareto Charts

To check the feasibility of the Master Production Schedule, one would look to: A. Rough-Cut Capacity Plan B. Material Requirement Plan C. Capacity Requirement Plan D. Distribution Requirement Plan

A. Rough-Cut Capacity Plan

According to the textbook, which of the following is considered a reason that ERP implementations fail? A. The organization may lack the necessary workforce and expertise to properly implement the system B. Top management becomes overcommitted to the point where they constantly encourage the employees during implementation C. Organizations tend to spend too much time and money training their employees on the new system D. All of the above

A. The organization may lack the necessary workforce and expertise to properly implement the system

What are advantages of an ERP system?

Added visibility reduce supply chain inventories Helps to standardize manufacturing processes Measure performance and communicate via a standardized method

What is conformance quality?

Degree to which the product or service design specifications are met

Which of the following basic production strategies used for addressing the aggregate planning problem would work best with make-to-order manufacturing firms? A. Capacity Production Strategy B. Chase Production Strategy C. Level Production Strategy D. Backlog Production Strategy

B. Chase Production Strategy

What plan calculates the exact end items to be produced? A. Resource Requirements Planning B. Master Production Schedule C. Material Requirements Planning D. None of the above

B. Master Production Schedule

What capacity planning tool computes the detailed capacity requirements for each workstation during specific periods to manufacture items specified in MRP? A. Resource Requirements Planning B. Rough-Cut Capacity Planning C. Capacity Requirements Planning D. None of the above

C. Capacity Requirements Planning

The common term across the seven wastes is: A. Overspending B. Keiretsu C. Excess D. Robust

C. Excess

Which of the following is the tool that a few of a company's problems account or most of the problems that occur? A. Process Map B. Check Sheet C. Pareto Chart D. Cause-and-Effect Diagram E. Statistical Process Control

C. Pareto Chart

What plan checks the feasibility (capacity) of the aggregate production plan? A. Distribution Requirements Planning B. Rough-Cut Capacity Planning C. Resource Requirements Planning D. Master Production Schedule

C. Resource Requirements Planning

What plan takes the Master Production Schedule and converts it from production to capacity available? A. Resource Requirements Planning B. Aggregate Production Planning C. Rough-Cut Capacity Planning D. Capacity Requirements Planning

C. Rough-Cut Capacity Planning

__________ allow(s) firms to monitor process performance, compare the performance to desired levels, and take corrective steps A. Cause-and-Effect Diagram B. Pareto Chart C. Statistical Process Control D. Flow Diagram E. None of the above

C. Statistical Process Control

RRP, RCCP, and CRP are what kind go planning?

Capacity

What is shine?

Cleaning, and looking for ways to keep clean and organized

What are disadvantages of an ERP system?

Substantial time and capital investment Complexity Firms adapt processes to meet ERP system

What can happen if a process is out of control? A. Defective product B. Poor customer service C. Negative customer relationships D. All of the above

D. All of the above

Which of the following is a tool that represents flow of products or customers through a process including actions and wait times? A. Process Diagram B. Process Map C. Flow Diagram D. All of the above is the name of this tool

D. All of the above is the name of this tool

An important outcome of statistical process control is: ​A. Firms can take corrective actions before process variabilities get out of control B. Firms can visually monitor process performance C. Firms can minimize total inventory cost​ D. Both A & B E. None of the above

D. Both A & B

What is an example of attributable data? A. The apple weighs 7 oz. B. It took 30 minutes to cook the apple pie C. The wait to pick up my food was 10 minutes D. I liked the taste of the apple pie

D. I liked the taste of the apple pie

Lean production emphasizes all of the following EXCEPT: A. Continuous improvement B. Reduction of waste C. Synchronization of material flows D. Large batch sizes

D. Large batch sizes

Define DPMO

Defects per million opportunities

What are lean supply chain relationships?

Develop efficient processes for sharing information, shipping product Channel integration

What is a Bill of Materials (BOM)?

Document that shows an inclusive listing of all component parts & assemblies making up the final product

What planning tool uses the bill of material as an input? A. APP B. MPS C. DRP D. CRP E. None of the above

E. None of the above

What is the Super Bill of Materials (AKA planning BOM, pseudo BOM, phantom BOM, or family BOM)

Enables the firm to forecast the total demand end product List of components and quantities to make a finished good item

What is too much inventory?

Excess inventory due to large lot sizes, poor forecasts, obsolete product

What is unnecessary transportation?

Excess transportation due to poor layouts

What is do?

Execute the change

What charts are used for measuring attributable data? A. X chart B. R chart C. P chart D. C chart E. Both a and b F. Both c and d G. All of the above

F. Both c and d

A lean system is also known as a push system.

False

A type of card called a kanban is used to signal when a process is out of control in the production process.

False

The process of converting a parent item's planned order releases into component gross requirements is referred to as the ERP Implosion.

False

What do firms do in six sigma?

Gather process performance data Create control charts to monitor process variability Monitor the process by collecting sample measurements of the process over time and plot on charts

What is the chase strategy?

Hire and fire people in attempt to built to exact demand levels with minimal to no inventory or backlog

What is design quality?

Inherent value of the product in the marketplace

What is act?

Institutionalize the change or abandon, REPEAT

What is sort?

Keep only what you need

What is Resource Requirements Planning (RRP)?

Long range capacity planning module used to check whether aggregate resources are capable of satisfying aggregate production plan (resources gross labor or machine hours)

What is Aggregate Production Planning (AAP)?

Long range materials plan, sets the aggregate output rate, workforce size, utilization, and inventory and/or backlog levels for an entire facility

What is standardize?

Maintaining and monitoring the first three categories

APP, MPS, and MRP are what kind of planning?

Materials planning

What is capacity?

Maximum workload that an organization is capable of completing in a given period of time

What is Master Production Scheduling (MPS)?

Medium-range materials plan; more detailed than the aggregate production plan and shows the quantity and timing of end items that will be produced

Explain people variation

New employees, call in sick, more customers

What is an R Chart

One of two control charts for variables Shows sample ranges over time Difference between smallest and largest values in inspection sample Monitors variability in process Example: Weigh samples of coffee and compute ranges of samples; Plot

What are the seven wastes?

Over production, waiting time, unnecessary transportation, excess processing, too much inventory, unnecessary motion, and defects

What are sources of variation?

People, machines, materials, methods, measurement, and environment

What is plan?

Plan a change aimed at improvement

What is the PDAC Cycle?

Plan, do, act, check

What is excess processing?

Poor design or additional processing needed

What are costs of quality?

Prevention, appraisal, internal/external failure costs

What is resource planning?

Process of determining the production capacity required to meet demand

What is over production?

Producing more than the plan → excess inventory, waste space

What is an X Chart?

Second control chart for variables Shows sample means over time Monitors process average Example: Weigh samples of coffee and compute means of samples; Plot

What is Capacity Requirements Planning (CRP)?

Short range capacity planning that is used to check the feasibility of the MRP; computes the detailed capacity requirements for each workstation during specific periods to manufacture items specified in MRP

What is Material Requirements Planning (MRP)?

Short-range materials plan; detailed planning process for component parts to support the master production schedule; system for converting the end items from the master production schedule into a set of time-phased component part requirements

What are the 5 S's?

Sort, set in order, shine, standardize, and sustain

Explain materials variation

Spoiled food, late supper, delivery

What is the level strategy?

Stable workforce with constant output with varying inventory and backlog to absorb fluctuations in demand

Explain methods variation

Standard work

What is sustain?

Sticking to the rules

What is check?

Study the results; did it work?

What is an ERP system?

System connecting functional areas and operations of an organization

Explain environment variation

Temperature, work environment

What is lean production?

The operating philosophy of waste reduction and value enhancement of the Toyota Production System (TPS) in its entirety

What is Rough-Cut Capacity Planning (RCCP)?

Used to check the feasibility of the master schedule; takes the MPS and converts from production to capacity requirements then compares to available capacity

What are defects?

Using capacity and materials to produce a defective product

What is waiting time?

Time machines / operators waiting for materials

Explain measurement variation

Time to cook, until of measurement

A Master Production Schedule is a medium-range materials plan

True

A Mixed Production Strategy uses a blend of chase and level strategies by striving to maintain a stable core workforce while using other means like temporary workers to manage short-term high demand.

True

According to the text, resource planning is the process of determining the production capacity required to meet demand.

True

System nervousness is when even small changes to upper-level production plans cause major changes in lower-level production plans.

True

The Malcolm Baldrige National Quality Award recognizes firms for their quality achievements and is only given to U.S. firms.

True

The primary design objective with lean layouts is to reduce wasted movements of workers, customers, and/or work-in-process.

True

What are unnecessary motions?

Wasted movements of people or extra walking to get materials