Supply Chain Exam #3

Strive for zero effects. Quality is free, so quality programs invariably pay for themselves. Which individual predicated this belief system?

Philip Crosby

Since managers developed a system used by an organization, managers are ultimately responsible for the organization's problems. Management should fix problems by using the right tools and resources, demonstrating employee encouragement, program commitment, and facilitating cultural change. Which individual predicated this belief?

W.E. Deming

Organizations that choose to implement the best applications or modules for each of the different functional departments associated with the supply chain versus choosing to implement one single system with all of the desired applications from a single vendor is said to have chosen a(n): a. Best-of-breed solution b. Elite integrator solution c. Multi-modular solution d. Premier application solution

a. Best-of-breed solution

Six Sigma was created by...

Motorola

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

T

T/F: The process of converting a parent item's planned order releases into component gross requirements is referred to as the MRP explosion.

T

T/F: The resource and operations planning done by operations managers is intended to balance capacity and output.

T

T/F: W. Edwards Deming and Shigeo Shingo were two of the notables who helped create Toyota develop the Toyota Production System.

T

6 M's of the Ishikawa Diagram

Machines Methods Materials Mother Nature Manpower Measurements

The maximum amount an organization can complete in a given period of time based on the resources available.

production capacity

Is the process of determining the required resources to effectively and efficiently produce the output required.

resource planning

a long-range capacity plan used to check whether aggregate resources are capable of satisfying the APP.

resource requirements plan

A medium-range capacity plan used to check the feasibility of the Master Production Schedule. Converts MPS from the production needed to the capacity required, then compares it to capacity available.

rough-cut capacity planning

a quantity of stock planned to be in inventory to protect against fluctuations in demand or supply.

safety stock

this is an order that was released

scheduled receipt

projected on hand inventory

the projected inventory at the end of a period

lot size

the required order amount under MRP

Unit of time / time period used in MRP

time bucket

the complete cost of producing and delivering products to your customers.

total cost of manufacturing

the eight wastes that LEAN strives to eliminate

Defects Overproduction Waiting Non-utilized talent Transportation Inventory Motion Excess Inventory

T/F: A typical ERP system attempts to tie together a variety of systems related to production and inventory planning, purchasing, logistics, human resources, finance, accounting, customer relationship management, and supplier relationship management by means of a multiple databases that are decentralized for both competitive and security purposes.

F

T/F: An MRP system has a subassembly with a lot size of 100 units. In terms of filling future requirements, this would mean that planned order releases for the subassembly would always have to be exactly 100 units.

F

T/F: Carbon neutral organizations do not produce any carbon emissions.

F

T/F: Deming's 14 points actually conflict with many Six Sigma concepts.

F

T/F: ERP systems, more commonly known as enterprise relationship programming systems, are the tools organizations use in order efficiently share information with their supply chain members in hopes that the organization's resources, as well as a the resources of their supply chain partners, are fully utilized to meet demand, while minimizing supply chain inventories.

F

T/F: For a certain loaf of bread it was found that it was measured 16 inches in length, 4 inches in height, and 4 inches across, it was also found to weigh 1 pound; all of these measures can be considered to attribute data.

F

T/F: Lean production and Six Sigma quality are essentially two terms that mean the same thing.

F

T/F: Lean production is an operating philosophy or mindset that essentially attempts to minimize the impact of system variability and flaws in forecasting through the use of high safety stock inventories.

F

T/F: MRP is the production planning system intended to develop long-range plans (more than a year away) concerning product families manufactured by the organization.

F

T/F: MRP systems are simply a more modern various of the ERP systems of the 1980's.

F

T/F: Organizations practicing lean production often increase their inventory levels in the long-run in order to create a cushion against variability so that they can investigate and eliminate the weaknesses of their system.

F

T/F: Organizations that choose to discontinue use of old and inefficient computer and information systems in favor of adopting a modern ERP system are said to have implemented a decentralized database solution.

F

T/F: System nervousness is a common business culture phenomenon where employees are unsure how to utilize a newly implemented ERP system.

F

T/F: The five S's refer to various safety activities practiced by Toyota.

F

T/F: The objective of the Deming Prize is to stimulate quality and productivity improvement among US firms.

F

T/F: The process of converting a parent item's planned order releases into component gross requirements is referred to as the ERP implosion.

F

T/F: The three basic production strategies for addressing the aggregate planning problem are the capacity production strategy, the level production strategy, and the chase production strategy.

F

T/F: When designing a manufacturing or service process, or even during the reengineering of such a process, a Pareto chart would be an essential tool for evaluating the process in terms of its action elements, waiting periods, and process flow.

F

Advocated the determination of costs of quality, and the use of statistical methods. He felt costs caught the attention of managers and statistics caught the attention of workers. Created the quality trilogy (planning, control, improvement). Which individual predicated this belief system?

Joseph Juran

cooperative coalitions with cross financial dependence involves companies throughout the value chain, remaining independent but working closely together for mutual benefit

Keiretsu relationships

Why is the workforce considered an important part of LEAN production?

LEAN production focuses on waste elimination and continuous improvement; employees identify waste and can eliminate it, and are key to building a culture of continuous improvement in a flexible production environment.

Relies on a constant output rate over an extend period of time based on worker productivity while varying inventory and backlog according to fluctuating demand. Works well for make-to-stock firms

Level production strategy

T/F: A typical ERP system attempts to tie together a variety of systems related to production and inventory planning, purchasing, logistics, human resources, finance, accounting, customer relationship management, and supplier relationship management by means of a single centralized database.

T

T/F: Acceptance sampling is a statistical technique that enables a reject or accept decision to be based on information obtained from a representative sample drawn from the population.

T

T/F: Channel integration is a supply chain term which refers to how a manufacturing firm within a supply chain attempts to create strategic alliances not only with their immediate suppliers but also with the suppliers' suppliers and in the other direction not only reaching out to immediate customers, but the customers' customers.

T

T/F: Key requirements to a successful ERP implementation include adequate computer support, accurate system inputs, and flexible business processes that can conform to the used in the ERP software logic.

T

T/F: Lack of communication between the implementing firm and its ERP software provider can become a major hindrance for a successful implementation.

T

T/F: Manufacturing layouts for an organization practicing lean manufacturing principles seek to maximize operator visibility, maintain an effective and efficient flow of people and materials, and minimize the distance that work in process must travel from one processing center to another processing center.

T

T/F: Six Sigma is a quality improvement concept developed by Motorola.

T

T/F: Statistical process control uses control charts to monitor the outputs of a process to identify variations due to assignable causes from variations due to common causes.

T

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

T

T/F: The three basic production strategies for addressing the aggregate planning problem are the chase production strategy, the level production strategy, and the mixed production strategy.

T

Modern supply chains simultaneously pursue the goals of high-quality, fast response, and low cost because customers nowadays want both high levels of quality and responsiveness. A key manufacturing philosophy that emphasizes waste elimination and minimizing inventories to expose problems is: a. Just-in-time b. Quick response c. Efficient consumer response d. Total Quality Management

a. Just-in-time

Lean production systems are sometimes referred to as pull systems because demand from customers activates the production actions of the manufacturing facilities. In order for this demand to be communicated to everyone in the supply chain/manufacturing facility a signal must be passed from downstream processing centers to the upstream processing centers. This system of relaying signals is referred to as a: a. Kanban Pull System b. Semaphore system c. Keiretsu network d. TQM network

a. Kanban pull system

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 over-commited 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 these

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

Which of the following could be considered a master production schedule for a service firm? a. The reservation book utilized by a restaurant b. The employee shift schedule utilized by an auto shop c. A hospital patient's personal information fill d. The recipe book utilized by a chef at a restaurant

a. The reservation book utilized by a restaurant

While ERP is a relatively new technology, it has grown rapidly since the early 1990s. Which of the following is the reason that has contributed to its rapid growth? a. The year 2000 millennium bug. b. The trend for companies to eliminate their supply chain partners. c. The increased use of email during the 1990s. d. All of these.

a. The year 2000 millennium bug.

Which of the following best describes the five S's? a. These were originally Japanese words related to industrial housekeeping. b. Five ways to reduce inventories on the shop floor. c. These are 5 different kinds of manufacturing layouts. d. Refer to methods for reducing setup times.

a. These were originally Japanese words related to industrial housekeeping

manufacturing strategy where final products are produced quickly as ordered by customers, enabling customization

assemble-to-order

has standard products with a limited number of variations moving through stages of production

assembly line

Which of the following is an engineering document that shows an inclusive listing of all the component parts and assemblies making up the final product? a. Master Production Schedule b. Bill of Materials c. Distribution Requirement Plan d. Resource Requirements Plan

b. Bill of Materials

Which of the following basic production strategies used for addressing the aggregate planning problem would work 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

Which of the following is considered an advantage/benefit of utilizing an ERP system? a. Fairly inexpensive to purchase and implement b. Enables the company to utilize a single centralized database system, thus eliminating duplicate data entry. c. Flexible enough that it allows different companies with different business models to mold the new ERP system to fit the company's business model d. All of these

b. Enables the company to utilize a single centralized database system, thus eliminating duplicate data entry.

Which of the following is NOT one of Toyota's seven wastes? a. Excess inventories b. Environmental waste c. Waiting time d. Scrap and rework

b. Environmental waste

While the philosophy of Six Sigma means different things to different people and is practiced differently in different companies, according to the textbook, two of the more important and agreed-upon elements of Six Sigma are: a. Minimizing inventories and increasing material flow b. Focusing on the customer and workforce involvement. c. Rewarding employees and keeping defect rates below 2%. d. Minimizing inventories and keeping defect rates below 1%.

b. Focusing on the customer and workforce involvement.

Which company probably played the largest role in the development of the Toyota Production System? a. General motors b. Ford c. Chrysler d. Boeing

b. Ford

Japanese manufacturing firms sometimes create cooperative coalitions with their suppliers in order to provide the suppliers with a certain degree of financial support. What are these cooperative coalitions called? a. Jidoka Networks b. Keiretsu Networks c. Kanban Networks d. Kaizen networks

b. Keiretsu Networks

manufactures a small quantity of an item in a single production run (Milk and other processed food, clothing)

batch

Which of the following is considered an advantage benefit of utilizing an ERP system? a. Utilizes multiple databases in order to provide up-to-date information. b. Increases the privacy level within an organization, thus functional departments can more easily protect their data from supporting or dependent functional departments. c. Allows organizations to more easily communicate information about operational changes to supply chain members. d. Increases the bullwhip effect

c. Allows organizations to more easily communicate information about operational changes to supply chain members.

The ISO certification standard for environmental management is: a. ISO 9000 b. ISO 9005 c. ISO 14000 d. ISO 19000

c. ISO 14000

Which of the following is NOT consistent with the lean philosophy? a. Cross-training employees to increase processing flexibility b. Developing a culture of continuous improvement within the organization c. Increasing batch size to take advantage of economies of scale. d. Positioning WIP inventories near each processing center.

c. Increasing batch size to take advantage of economies of scale.

Which of the following is NOT one of the three basic methods used to calculate the available-to-promise quantities? a. Discrete available-to-promise b. Cumulative available-to-promise without looking ahead c. Indiscrete available-to-promise d. Cumulative available-to-promise with looking ahead

c. Indiscrete available-to-promise

Organizations that choose to implement one single system with all of the desired applications from a single vendor versus choosing to implement the best applications or modules for each of the different functional departments associated with the supply chain is said to have chosen a(n): a. Best-of-breed solution b. Elite integrator solution c. Single integrator solution d. Premier application solution

c. single integrator solution

A short-range capacity plan used to check the feasibility of the Material Requirements Plan.

capacity requirement plan

Consistent manufacturing of the same product

continuous flow

Not all ERP software is designed to provide the exact same tools, nonetheless, some of the common modules usually included in ERP software packages include: a. Customer Relationship Management and human resource management b. Human resource management and accounting and finance c. Supplier relationship management and customer relationship management. d. All of these

d. All of these

Which of the following quality gurus believed that companies should strive for zero defects and that quality was, in a sense, free since quality improvements invariably paid for themselves? a. Juran b. Deming c. Baldridge d. Crosby

d. Crosby

Which of the following seeks to develop short range plans seeking to effectively and efficiently range components and/or subassemblies over time period of few days to a few weeks? a. RRP b. MPS c. RCCP d. MRP

d. MRP

Which of the following are among the most important elements of the lean production philosophy? a. Quality inspections and a standardized product line b. Fully automated assembly lines and a large supplier base c. Large inventories and quality inspections d. Waste reduction and value enhancement

d. Waste reduction and value enhancement

manufacturing process in which the component is designed, engineered, and built to customer specifications only after the order has been received

engineer to order

The process of converting a parent item's planned order releases into component gross requirements

explosion

A planned order that can be frozen in quantity and time so that the MRP computer logic cannot automatically change when conditions change. Established by the Planner or Supply Chain Manager to prevent system nervousness. This can aid planners working with MRP systems to respond to material and capacity problems by firming up selected planned orders.

firmed plan order

time phased requirement for a certain period

gross requirement

parent

item which generates demand for the lower-level components

creates a custom product for each customer

job shop

manufacturing strategy that allows customers to purchase custom products to their specifications.

make-to-order

means to manufacture products for stock based on demand forecasts, a push supply chain.

make-to-stock

this is an order that will be placed on a specific date in order to meet demand in the future demand

planned order release

A specific order for a specific item and quantity to be released to the shop or to the supplier.

planned order releases

The number/quantity of each component or material needed to produce a single unit of the parent item

planning factor