Study Guide

As Sure Start tries to enter the market at the early stage and become a mass producer of electric car batteries, Charlie has made a significant decision. Sure Start will continue producing traditional car batteries using the Six Sigma process instead of investing additional money on future research and development for improving the quality of traditional batteries. How will the use of Six Sigma help the company maintain a competitive market position in the production of traditional batteries?

By aiming for zero defects

What does the "D" component represent in the ADKAR change management model?

Desire. It is used to instill in employees the desire to embrace the change.

A company is implementing new processes and is facing difficulties in implementing the changes due to excessive employee absenteeism. The company is using the Six Sigma model to fix this problem. In analyzing the leave request process, management discovered that there are communication bottlenecks in the process. Which step should be taken next?

Develop and implement solutions to improve the leave request process

In strategy meetings with board members, executive officers of a manufacturing company express a commitment to use more environmentally sustainable materials. What is the next step the executives should take according to the three-step process for ethical considerations?

Act consistently with the choice.

A manufacturing company is committed to using more environmentally sustainable materials and has begun creating purchase orders for the new materials as part of this choice. Which step of the three-step process for ethical considerations is the company using?

Acting consistently with the choice

A company is implementing new processes and is facing difficulties in implementing the changes due to excessive employee absenteeism.The company is using the Six Sigma model to fix this problem. In measuring the current rate of employee absenteeism, the organizational leadership has determined that the rate at which employees are absent from work is far greater than expected. Which step should be taken next?

Analyze the cause of the absenteeism

An organization implemented major changes throughout its facility. Some outspoken employees are unhappy about the changes because they are used to the way things are done currently. Which barrier to organizational change does this represent?

Attitudes

A company held workshops with guest speakers who spoke about a new mobile application the company will be using. The program will allow workers to submit electronic time-off requests to their managers. Which phase of the ADKAR change management process is this company using?

Awareness

A company is considering moving to a new inventory management system to improve its performance. The administration would like to avoid resistance from employees by helping them understand the importance of the change. Which phase of the ADKAR model is the administration using?

Awareness

A food manufacturing company wants to restructure some of its food manufacturing processes. To make this change successful, the company wants to establish open and honest communication from the start. Which phase of the ADKAR model should be addressed first to meet this goal?

Awareness

A speaker from a local environmental group is presenting information intended to persuade employees to be more environmentally conscious. Which stage of the ADKAR model is reflected in this scenario?

Awareness

Darris, the company's CFO, wants to be proactive and recommends that all managers attend a presentation about the significance of going through the change while containing costs. Which stage of the ADKAR model is Darris using?

Awareness

What are the five components of the ADKAR change management model?

Awareness, desire, knowledge, ability, and reinforcement

A company has a large quantity of dry material that needs to be transported from North America to South America. There is a tight budget, but the materials do not need to get to the destination for three months. Which type of transportation should be used for this material?

Cargo ship

Which mode of transportation is the least expensive for shipping large quantities of goods?

Cargo ship

Which item is using secondary packaging?

Case of smartphones

When Charlie first announced the new research division for electric car batteries, there was some pushback from long-term employees and managers who were concerned about the change in focus. Because of the investment required for entrance into a small, risky market, they were concerned that potential financial losses could lead to downsizing or layoffs. The employees and managers are now beginning to recognize the importance of the opportunity. Which stage of the Lewin change model are the employees and managers experiencing?

Change

Which stage of Lewin's change model typically includes high levels of confusion and transition while modifications are being made?

Change

A supply chain manager discovers that the company's primary transportation supplier has decreased its workforce without communicating this change. Which action should the manager take to proactively manage customer expectations?

Communicate alternate transportation plans with everyone

A supply chain manager has been tasked with improving the production process to increase customer satisfaction. Which action should the manager take to accomplish this goal?

Communicate and manage the process flow

A major manufacturer of carbonated beverages modified its recipe. Some purchasers did not like the new taste, and many followed up on social media urging the company to go back to the previous recipe. Which barrier to change does the manufacturer face?

Consumers

A manufacturing company hired a consultant to help implement Six Sigma. The consultant tasked the managers with developing a system to monitor a new process that was recently developed. Which Six Sigma stage is the organization currently implementing?

Control

The current plan is to temporarily relocate Carl Spith to the Asian headquarters in Vietnam, and Kim Arkle to the European headquarters in Germany. Charlie thinks that having these two trusted leaders on location will help maintain the corporate vision and benefit the hiring process in these two new offices. Which barrier is Charlie trying to overcome by making this change?

Cultural differences

An organization is preparing to implement Six Sigma. Managers have been tasked with identifying the problem that needs fixing. Which stage is the organization currently implementing?

Define

A company is implementing new processes and is facing difficulties in implementing the changes due to excessive employee absenteeism. The company is using the Six Sigma process improvement model to analyze this problem. Which step should management take first to address this issue?

Define the problem of employee absenteeism in specific terms

A company is implementing new processes and is facing difficulties in implementing the changes due to excessive employee absenteeism.The company is using the Six Sigma process improvement model to analyze this problem. They have already defined that employee absenteeism is the problem to be fixed. What is the next step?

Describe the significance of the absenteeism to the bottom line

Employees in North Carolina are concerned Sure Start may eventually decide to move all battery manufacturing to their facility in Asia. While there are no plans to move manufacturing out of the United States, leadership understands that it is a future possibility and believes that a move to Asia could produce higher profitability for the company, which would make them a more stable employer. What is the ethical course for leadership to take to overcome this barrier?

Discuss all benefits to the employees if changes were to take place.

A company is working to gain its employees' trust after a bad situation. A management consultant suggested that the company aim to be more transparent. The company has already started a transparency project with current employees. At which stage should the company begin this effort with new employees?

During the hiring process

Which statement accurately characterizes the ADKAR change management model?

Each of the five components must take place in a sequential manner.

Sure Start could implement a vertically integrated supply chain to decrease costs, reduce lead times for materials acquisition, and improve coordination. Which operations management consideration does this represent?

Efficient inventory management

Charlie asked the CMO to develop and communicate a marketing brand and vision that will win over new customers with the new electric battery but also recognize the firm's longevity in traditional car batteries to help keep existing employees motivated. This will be a challenge because the marketing strategy must balance the concerns of existing employees and stability of the long-term business plan with the promising future of a new product offering. What type of risk is the CMO facing?

Environmental

A new CEO has been hired to change a company that has had major ethical infractions in the past. What is an acceptable mentality for the leader to use to accomplish this change?

Follow my lead; do as I do.

A manufacturing company receives raw materials from three suppliers. Two of the suppliers deliver regularly and on time, but the third supplier is often late and ships defective parts. The manufacturer is working with this supplier to develop solutions to alleviate these problems. Which stage of Six Sigma is the manufacturer using to address this bottleneck?

Improve

A bakery is having difficulty sourcing raw materials at the best market price. The bakery decides to hire a new manager who will target this problem. Which category of problems must this new manager address?

Inbound logistics

What is the major difference between inbound and outbound logistics?

Inbound logistics is focused on the materials entering the system, while outbound logistics is focused on the finished product leaving the system.

An ice cream shop has been experiencing significant bottlenecks in its production processes. To address this problem, the store management has chosen to adopt the ADKAR model. Which positive organizational outcome will stem from this change?

Increased product throughput

A company receives a product order and needs to fulfill the request in 72 hours. What is the next step in the supply chain?

Inventory

An excavation company made a commitment to its workforce to be more transparent. The company is currently participating in confidential negotiations to be acquired by another firm. The acquisition may lead to a major loss of jobs. How should the company handle this information?

Keep information secret until the deal is completed.

A company is planning to launch a new product line to complement their current products. Employees are currently being trained on the changes. Which phase of the ADKAR model is the company using?

Knowledge

A global information technology company is working on restructuring to accommodate ongoing growth and needs to help employees learn how to make these changes. Which stage of the ADKAR model addresses this issue?

Knowledge

A major oil company is seeking to improve its reputation and is planning to make many internal changes using the ADKAR model. The company wants to share with its employees the process of how these changes are going to be made. Which step of the ADKAR model is reflected in this situation?

Knowledge

Managers of a grocery store determined that the store is not selling fresh produce quickly enough. In response, they trained employees on how to entice customers to purchase more produce. Which stage of ADKAR do they need to address next?

Knowledge

To improve performance, a manufacturing company is transitioning to a new project management software. The company plans to send some of its employees to attend a training for the new software. Which phase of the ADKAR model will help make this transition successful?

Knowledge

A manufacturing company sought to make broad changes to a process. Employees voiced concern that they had not been trained on the new changes. Which type of bottleneck is occurring?

Labor

A company is changing to environmentally sustainable materials. To ensure a successful transition, the company is using the ADKAR model to raise awareness about the change. What is the first step the company should take?

Managers should give presentations about the effects of plastic pollution

What is the purpose of the ADKAR model?

Managing organizational change

A manufacturing facility is implementing Six Sigma. Managers have defined the problem as the heat treatment process. Which stage of Six Sigma do the managers need to address next?

Measure

A restaurant is implementing Six Sigma. The owner recorded that the chefs take about 45 minutes to finish their sauces and noted that the delay is considerably increasing the time it takes to serve customers their food. Which Six Sigma stage is described in the scenario?

Measure

The CFO wants to be proactive about managing the cost implications of a significant and rapid expansion. In an effort to avoid major financial mistakes, he is recommending that all managers create clearly defined goals for achievement. He believes those goals should require each department and division to identify current deficiencies and methods for improvement. What planning process is the CFO using?

Mitigating project risks

Which major phase of manufacturing training is most closely associated with the Japanese production technique of just-in-time?

Modern era of manufacturing

A manager wants to improve the company's operations management and make production more efficient as it turns inputs into outputs. Which set of inputs should be the focus of this manager?

Natural resources, raw materials, human resources, and capital

Which activity will be undertaken by a manager who is reviewing inbound logistics and is targeting raw materials?

Negotiating pricing

As demand for Sure Start's batteries increases, auto manufacturers will increase their product orders and expect that the company will increase its production capacity to meet tighter deadlines. Which operations management consideration does this represent?

On-time transportation to customers

A company manufactures products that are at a variety of life cycle stages. Which action should the company take to reduce production costs and increase efficiency?

Optimize the supply chain

Sure Start's company communications extend internally to employees around the globe to ensure a focus and message that builds employee morale. Additionally, communications to suppliers, investors, customers, and communities must be coordinated to maintain a unified message from the firm and to be sensitive to the many cultural practices where they operate. Which part of the project charter does this communication project address?

Organization

Sure Start's decision to expand to Europe and Asia required forecasting electric battery demand. Which operations management consideration did this represent?

Planning

Charlie decided to create a new research division within the company to begin working toward the production of a rechargeable battery for use in electric cars. Which stage of the project management process does this signify?

Project execution

An international shoe retailer is implementing Six Sigma. The retailer previously kept a large surplus of shoes on hand but has recently decided to limit the surplus. This change requires the retailer's providers to make more frequent shipments, which will cause scheduling issues. Which component is a bottleneck?

Suppliers

Because Sure Start will be required to place corporate offices in both Europe and Asia, most of the senior leadership team are concerned about the expansion. They know that there will be many variables they may not be prepared for, such as uncertainty about what to expect for work culture in these new markets. How can they use change models to overcome these potential organizational barriers to change?

Provide an employee orientation in native languages and follow up with regular updates as needed.

When Sure Start expanded into Europe and Asia, the company needed to determine if it was feasible to produce the batteries with the same quality of components used in U.S. manufacturing. Which operations management consideration does this specifically represent?

Purchasing materials from external sources

A company has 20 large shipping containers of solid material that need to be transported from California to Chicago. There is a tight budget, but the material does not need to get to the destination for three weeks. Which type of transportation is the most economical for this material?

Rail

What is a benefit of a retailer merging with a supplier?

Reduction of final costs to customers

How does the use of vertical integration lead to an increase in market share?

Reduction of production costs provides a competitive advantage

A sales organization implemented a change to the way they track and schedule clients. The organization is concerned that employees may revert back to the way things were done before the change was made and decide to take action so the new process remains permanent. Which step of the Lewin model is the organization addressing?

Refreeze

A semiconductor manufacturing company is stabilizing after implementing a large change to its chip manufacturing process. Which stage of Lewin's model is illustrated by this company?

Refreeze

Which stage of Lewin's change model is exemplified by the standardization of the new corporate mindset and the return of employees' normal comfort levels?

Refreezing

A company's CEO has stepped down due to rampant unethical behavior. The board has hired a new CEO to instill a more ethical culture. The CEO has made many changes, and the employees are following what they have been taught. Which stage of the ADKAR model will help to sustain these changes?

Reinforcement

Which type of logistics is being used when a company traces damaged or defective goods or materials back through the supply chain to recapture value?

Reverse

A company requires that all issued resources be used explicitly for business, in compliance with its policies regarding the use of technology. A manager signed a document when hired, agreeing to adhere to these policies but uses the company-issued laptop for personal transactions while at home. How should the manager's supervisor handle this situation?

Review company policies with the manager.

Charlie recently began a new research division within the company to focus on a rechargeable battery for use in electric cars. Sure Start is still continuing the production of traditional car batteries and does not plan to put any new investment into the research and development of traditional batteries. Which constraint does this represent for the traditional battery product line?

Scope

A manager is addressing a critical component of operations management that involves managing the suppliers of components and materials that are used in the final creation or assembly of the company's end products, which it sells to customers. What is the term for this entire collection of companies?

Supply chain

Why do companies implement supplier resource management (SRM) systems?

To facilitate better relationships between suppliers and purchasers

A manager realizes that the supply chain management and logistics for the company needs to be made more efficient so the delivery of the products to customers remains competitive. The manager reviews the companies in the supply chain that are involved before, during, and after the products are made. Which entity must the manager examine to complete this review process?

Transportation companies

An organization assessed its performance and now needs to make the employees aware of how they can improve. Which stage of Lewin's model is used to address this issue?

Unfreeze

An organization is not performing well. The managers have convinced the employees that the company needs to restructure and transition their processes to perform better. Which stage of Lewin's model helps address this issue?

Unfreeze

The leadership team of a camping equipment manufacturer is thinking about moving their production department, and many employees in the company are concerned about the change. The team has decided to use the Lewin model for change management to give the employees the chance to voice their concerns or complaints about the new location. Which stage of the Lewin model is illustrated by this team action?

Unfreeze

What is the first stage of Lewin's change model that focuses on overcoming corporate inertia?

Unfreezing

What are the three steps of Lewin's change model?

Unfreezing, changing, and refreezing

Which practice should be followed by a company in order to maintain professional relationships with their suppliers?

Use technology to simplify and track the supply chain

The CFO wants to be proactive about managing the cost implications of a significant and rapid expansion. In an effort to avoid major financial mistakes, he is recommending that all current management and all newly hired managers have clearly defined goals for achievement. What is the CFO addressing in this situation?

WBSs

Sure Start will be delivering large quantities of car batteries internationally. The company wants to choose the most cost-effective mode of transportation since rail, air, water, and truck are all physically possible. Which mode of transportation should the company use when time is not a consideration?

Water