MGMT 4000 Test Three

अब Quizwiz के साथ अपने होमवर्क और परीक्षाओं को एस करें!

A defective part or component can cause a ________ system to shut down

JIT

Which of the following is a negative aspect of JIT compared to synchronous manufacturing?

JIT does not allow for a lot of flexibility in the products produced

Kaizen

Japanese philosophy for continuous improvement

Quality at the Source

Means do it right the first time and when something goes wrong, stop the process or assembly line immediately. Factory workers become their own inspectors, personally responsible

defects

arise because people make errors.

Demand is characterized as independent if it comes from sources

outside of the firm and is not related to another product

Operations Consulting

deals with assisting clients in developing operations strategies and improving processes; must be able to define the most effective combination of technology and systems to execute a business strategy.

Cost impact and payoff analysis tools

decision trees, balanced scorecard, stakeholder analysis

Central to Shingo's approach is the difference between errors and

defects

Shingo argued that SQC methods do not prevent

defects

The underlying distribution for the c-chart is the Poisson, which is based on the assumption that

defects occur randomly on each unit

Six Sigma is measured with

defects per million opportunities

one of the benefits of six sigma is that is allows managers to describe the performance of a process in terms of its variability and to compare different processes using a common metric. This metric is

defects per million opportunities

During the initial analysis phases, an operations consultant identifies that her client takes twice as long to process orders as industry competitors. This information is likely conveyed in which problem definition tool?

gap analysis

A philosophy in which similar parts are combined into families, and the processes required to make the parts are arranged in a specialized workcell.

group technology

What term describes a philosophy in which similar parts are arranged into families and processes to make parts by manufacturing cells?

group technology

Lean Concepts

group technology, quality at the source, JIT production

holding costs

handling, insurance, pilferage, storage facilities

in distribution, inventory is classified as 'in transit' meaning that

it is being moved in the system, and warehouse, which is inventory in a warehouse or distribution center

What type of schedule requires material to be pulled into final assembly in a uniform pattern?

level

consulting firms generally work in

project teams

juran

quality is not free, there is an optimum

Inventory Accuracy

refers to how well the inventory records agree with physical count

manufacturing inventory

refers to items that contribute to or become part of a firm's product output. typically classified into: -raw materials -finished products -component parts -supplies -work in process

Freeze window

refers to that period of time during which the schedule is fixed and no further changes are possible

value chain

refers to the concept that each step in the supply chain process that deliver products and services to the customer should create value. If a step does not create value it is removed from the process.

synchronous manufacturing

refers to the entire production process working in harmony to achieve the profit goal of the firm

the fixed time period model has a larger average inventory because it must also protect against stockout during the

review period

Which of the following is the first stage in the operations consulting process?

sales and proposal development

six sigma refers to the variation that exists within plus or minus three

standard deviations

Inventory Management is what makes Amazon

successful

inventory

the stock of any item or resource used in an organization

Prevention Costs

the sum of all of the costs to prevent defects

Price Break Model

this model is useful for finding the order quantity of an item when the price of the item varies with the order size

fixed time period models are

time triggered

a manufacturing work cell eliminates inventory buildup by bringing steps in a process

together

According to the theory of constraints, the term "productivity" is defined as all those actions that bring a company closer to its goals.

true

Lean production uses a pull system for production.

true

Manufacturing performance measurements tend to be more quantitative than marketing performance measurements.

true

The nature of service products is that the execution of each service delivery has some

uniqueness

process control chart

used to assure that processes are in statistical control

six sigma seeks to reduce

variation in the processes that lead to product defects

Common Variation

variation that is inherent in the process itself

One unique aspect of synchronous manufacturing systems relative to MRP systems is that synchronous systems can:

vary the size of process and transfer batches

A non bottleneck should not be

working constantly

During idle periods, personnel can be put to work on other activities such as special projects, work group activities, and

workstation housekeeping

certifications for six sigma

yellow belt, green belt, black belt, master black belt

Engineers know that it is impossible to have ____ variability.

zero

Crosby

zero defects

Which of the following are typically differences between marketing and production organizations?

-measurement systems -personalities of personnel -organizational culture

drawbacks of just in time

-most often used in repetitive manufacturing environments -requires a stable production level -does not allow for a lot of flexibility in the products produced -still requires work in process inventory when used with Kanbans so that there is something to pull -vendors need to be located nearby because the system depends on smaller, more frequent deliveries

In an assembly line, what is the batch size?

1 or infinity

Optimized Production Technology (OPT)

Is a production improvement method based on bottleneck improvements. It concentrates on constraints and seeks to identify and then remove bottlenecks that hinder the flow of a system.

Processes

Technology evaluation, process improvement, reengineering.

expert consultant

a professional who provides information, expertise, or advice to one or both interested parties to help them resolve a conflict.

colored golf balls

at kawasaki engine plant, when a part in a subassembly is down to its queue limit, the assembler rolls a colored golf ball down a pipe to the replenishment machine center. This tells the operator which part to make nect

capacity is defined as the

available time for production

The two critical components of ALL reorder point calculation scenarios are:

average daily demand and lead time in days.

when statistical fluctuations occur in a dependent sequence without any inventory between workstations, there is no opportunity to achieve the

average output

conformance quality

degree to which the product or service design specifications are met. the activities involved in achieving conformance are of a tactical day to day nature.

conformance quality

degree to which the product or service design specifications are met. the activities involved in achieving conformance are tactical, day-to-day.

Due to the nature of service production and consumption, _______________________ _______________ scheduling is necessary for operating a service business.

demand pull

run chart

depict trends in data over time

run charts

depict trends in data over time

In monitoring process quality, we might use which of the following statistics?

difference between the highest and lowest value in a sample

cost of providing good quality

design quality: inherent value of the product in the marketplace conformance quality: degree to which the product or service design specifications are met

process limits are slightly greater than the specification limits given by the

designer

the amount of safety stock depends on the service level

desired

acceptance sampling: what you need to do

determine how many units, n, to sample from a lot, and (2) the maximum number of defective items, c, that can be found in the sample before the lot is rejected

"Control" six sigma

determine how to maintain improvements

"Measure" Six Sigma

determine how to measure the process and how it is performing

With a double batch size, the net result is that the work-in-process is approximately ___________ as the investment in ______________.

doubled; inventory

Where does the authority to produce come from in a kanban pull system?

downstream operations

What is the purpose of single-minute exchange of die (SMED) procedures in the Shingo System?

drastic cuts in equipment setup time

A control point at a bottleneck is called the __________ because it strikes the beat that the rest of the system (or those parts that it influences) uses to function.

drum

productivity is defined as all the actions that bring a company closer to its

goals

customer value

something for which the customer is willing to pay

when flow is balanced, capacity is

unbalanced

Quality at the source

The philosophy of making each worker responsible for the quality of his or her work.

quality at the source

The philosophy of making each worker responsible for the quality of his or her work.

Which of the following indicates the process is out-of-control?

A point is above the upper control limit A point is below the lower control limit

costs of inventory

-facility costs -human capital -finance costs -management costs -procurement costs -inventory turnover -stock accuracy -pillage and ullage -service levels

Solving the Newspaper Problem

-consider how much risk we are willing to take of running out of inventory -assume a mean of 90 papers and a standard deviation of 10 papers -assume we want an 80 percent chance of not running out -assume that the probability distribution associated with sales is normal, stocking 90 papers yields a 50 percent chance of stocking out

Disadvantages of Inventory

-cost of storage -cost of insurance -reduction in flexibility -cost of lost opportunity

What is the minimum number of samples suggested for control charts with variable measurement?

25

In an effort to address inventory control issues, a consultant might use which tool in the problem analysis phase of the project?

ABC analysis

The Pareto principle is best applied to which of the following inventory systems?

ABC classification

cause and effect diagrams

Also called fishbone diagrams, they show hypothesized relationships between potential causes and the problem under study. Once the C&E diagram is constructed, the analysis would proceed to find out which of the potential causes were in fact contributing to the problem.

DC

Annual Purchase Price

H

Annual holding and storage cost per unit of average inventory

Q/2* (h)

Annual holding costs

Which of the following is/are components of total costs in a fixed-quantity inventory system?

Annual holding costs Annual ordering costs Annual purchase costs

(D/Q) *S

Annual ordering Costs

Pair of hands consulting model

Approach to consulting whereby the consultant is given the diagnoses and solution to a problem and is hired to implement the solution.

How large should the time buffer be?

As long as it needs to be to ensure that the bottleneck continues to work

If the drum is not a bottleneck but a CCR, we might want to create two buffer inventories. Where? Check both.

At the end In front of the CCR

Inventory Turn=

COGS/ Average Inventory Value

The OC Curve

Chart showing the percent def. and chance of accepting that % def.

Lean Six Sigma

Combines the implementation and quality control tools of Six Sigma and the inventory management concept of lean manufacturing. Lean manufacturing achieves high volume production and minimal waste through the use of just in time inventory methods.

Which of the following is/are data analysis and solution development tools used by operations consultants?

Computer Simulation Bottleneck Analysis Statistical Tools

cost of quality analysis

Cost to improve or ensure quality measures, as well as the cost associated with a lack of quality. In other words, all of the costs associated with a quality level that is not 100%. Common in industry and constitute one of the primary functions of quality control departments.

Quality Gurus

Crosby, w. Edwards Deming, Joseph Juran

Match the quality gurus with their respective approach to vendor rating.

Crosby--> Quality audits useless. Deming--> No, critical of most systems Juran--> Yes, but help the supplier improve

Design of Experiments (DOE)

DOE, sometimes referred to as fmultiiterative testing, is a statistical methodology used for determining the cause and effect relationship between process variables (Xs) and output variables (Ys)

A standard approach to Six Sigma projects is following the DMAIC methodology

Define Measure Analyze Improve Control

Which of the following are typical objectives of process control plans?

Detect shifts in the process Provide information about whether items are meeting design specifications

Measure

Determine how to gauge the process and how it is performing.

Control

Determine how to maintain the improvements.

decision trees

Diagrams used by consultants where answers to yes or no questions lead decision makers to address additional questions until they reach the end of the tree.

With variable control charts (x and R), what happens once the chart has been set up?

Each new sample is compared against the chart.

Lean Warehousing

Eliminate non-value-added steps and waste in storage process

The Toyota Production System was developed to improve quality and productivity and is predicated upon two philosophies central to the Japanese culture. What are these two philosophies?

Elimination of waste Respect for workers

Operations consultant, Danielle Jones, is about to start a service improvement project with Company A. Which of the following problem definition tools are likely available to help her frame the problem(s)?

Employee surveys Customer surveys

External benchmarking is analysis of which of the following

Excellent performers outside the industry Industry competitors

The goal of JIT production is to drive all inventory queues lower.

False

True or False: Waste reduction refers only to the elimination of nonvalue-adding activities that are part of the value stream.

False

True or False: When backflushing parts, the actual number of parts used in production must be tracked.

False. Not having to track the actual parts is a key advantage of backflushing.

Areas of Consulting Need in Services

Financial Services, Health Care, Transportation, Hospitality

Lean supply chains design principles can be divided into three major categories. Which of the following components are part of lean concepts?

Group technology Quality at the source JIT production

Which of the following is a "focusing step" of Dr. Eli Goldratt's theory of constraints?

Identify System Constraints

Which of the following is used to identify the task responsibilities for a project?

Implementation Responsibility Chart

If a bottleneck does not require setup time to change products, how should one schedule the sequence of products?

In the order of required customer deliveries

Successive checks

Inspection process where an operator inspects the work of a previous operator prior to performing more value-add work.

What term is used to describe a philosophy that focuses on continuous improvement?

Kaizen

Lean Procurement

Key is automation (e-procurement) Suppliers must see into the customers' operations and customers must see into their suppliers' operation

With regards to Goldratt's rules of production scheduling: Priorities can be set only by examining the system's constraints. ________________ is a derivative of the schedule

Lead Time

Which of the following are examples of a situation where statistical quality control can be applied?

Leaves on the ground below a tree

Where can statistical quality control be applied?

Logistics, manufacturing, and service processes

When nonbottleneck resources are scheduled with larger batch sizes, it is possible that they will become a bottleneck. How is this possible?

Longer time producing one item increases the wait time for other items

A process uses five machines. A study of those machines found the following capacity utilization. Which one is the bottleneck?

M4: 123 percent of capacity (the highest of all of the options)

Parts

Make or buy decisions, vendor selection decisions.

When bottleneck operation X feeds nonbottleneck operation Y (X→Y), what happens?

No work in process inventory develops

The graphical display of sampling plans is termed?

OC curve

Who typically performs preventative maintenance?

Operators

single period inventory model

P is less than or equal to Cu/ (Co + Cu) Co= cost of overestimating demand/COGS Cu= Cost of underestimating demand you're solving for a probability once you get your probability, go the back of the textbook (or the exam guide) and look at the Z score chart to get your Z score Use this Z score in Inventory= Average Sales + Z (Standard Deviation)

PDSA Definition

Plan Do Study Act is a framework for problem solving and improvement activities Process Improvement Definition: A systematic approach to improving a process

Five Main Manufacturing Consulting Areas (Five Ps)

Plants, People, Parts, Processes, Planning/Control Systems

The underlying distribution for the c-chart is which of the following?

Poisson

Cycle Counting

a physical inventory-taking technique in which inventory is counted on a frequent basis rather than once or twice a year

attributes

Quality characteristics that are classified as either conforming or not conforming to specification. Goods or services may be observed to be either good or bad, functioning or non-functioning.

People

Quality improvement, setting/revising work standards, learning curve analysis.

_____________ time is the time that a part waits for a resource while the resource is busy with something else.

Queue

Process Capability Index

Ratio of the range of values produced divided by the range of values allowed Shows how well the parts being produced fit into the range specified by the design specifications Cpk larger than one indicates process is capable of producing all output within specifications If the two numbers are not equal, then the mean has shifted from the center of the specification limits

Categories of Inventory

Raw Material- unprocessed purchase inputs Work in Process Materials (WIP)- partially processed materials not yet ready for sales Finished Goods- products ready for shipment Maintenance Repair and Operating

Which of the following is/are problem analysis (SPC) tools?

Scatter diagrams Fishbone diagrams

ISO 9000

Set of international standards on quality management and quality assurance, critical to international business. Idea is that defects can be prevented through the planning and application of best practices at every stage of business

Fail-safe procedures and poka-yokes

Simple practices that prevent errors or provide feedback in time for the worker to correct errors.

Kanban squares

Some companies use marked spaces on the floor or on a table to identify where material should be stored. When the square is empty, the supplying operations are authorized to produce; when the square is full, no parts are needed.

Lean supply chains design principles can be divided into three major categories. Which of the following components are part of lean supply chains?

Specialized plants. Collaboration with suppliers. Building a lean supply chain.

The following kinds of time make up production cycle time

Step Time Processing Time Queue Time Wait Time Idle Time

Planning and Control Systems

Supply chain management, ERP, MRP, shop-floor control, warehousing, distribution.

Flowcharts

System or process flowcharts show the relationship between components and how the overall process works. These are useful for identifying risks between system components.

Total Quality Management (TQM)

TQM is managing the entire organization so that it excels on all dimensions of products and services that are important to the customer. Two fundamental operational goals: 1) careful design of the product or service 2) ensuring that the organization's systems can consistently produce the design Additional: Continuous Improvement, Involvement of Everybody, and Customer Satisfaction

Which of the following highlights a dependent demand scenario?

The four tires needed to complete a car

The Effects of Lot Size

The size of the lot that the sample is taken from has relatively little effect on the quality of protection.

process control charts

These are time-sequenced charts showing plotted values of a statistic including a centerline average and one or more control limits. It is used to assure that processes are in statistical control.

When nonbottleneck resources are scheduled with larger batch sizes, what happens?

They risk becoming bottlenecks

opportunity flow diagram

This is used to separate value-added from non-value-added steps in a process.

The single period model

This is used when we are making a one-time purchase of an item. An example might be purchasing T-shirts to sell at a one-time sporting event.

fixed-order quantity model

This is used when we want to maintain an item "in-stock," and when we resupply the item, a certain number of units must be ordered each time. Inventory for the item is monitored until it gets down to a level where the risk of stocking out is great enough that we are compelled to order.

An inventory control system is responsible for which of the following?

Timing the order placement Keeping track of what has been ordered Receiving goods Ordering goods

According to Goldratt's Theory of Constraints, no improvement is possible unless the constraint or weakest link is found.

True

Buffer inventory in front of a bottleneck is called a time buffer.

True

In sampling variables, the actual measurements of the variable observed are used regardless of whether the unit is good or bad.

True

The probability associated with rejecting a high-quality lot is denoted in acceptance sampling with the Greek letter alpha.

True

Analyze

Understand why defects are generated by identifying the key variables most likely to create process variation.

Who is eligible for the Malcolm Bridge Award

Universities, Health Care Organizations, small businesses, educational institutions

Types of Data

Variables Data--> Things we Measured (think of it as can be measured out to multiple decimal points) -length -weight -time -height -volume -temperature -diameter -strength Attribute/Continuous Data--> Things we can count (can be categorical as well) -number of percent of defective items in a lot -number of defects per item -types of defects -value assigned to defects (minor=1, major=5, critical=10)

Assignable Variation

Variation that is caused by factors that can be identified and possibly even managed

Goldratt's TOC Performance Measures

We have three measures of the firm's ability to make money: 1) Net Profit-an absolute measurement in dollars 2) Return on Investment- a relative measure based on investment 3) Cash flow- a survival measurement All three measurements must be used together

When nonbottleneck operation X feeds bottleneck operation Y (X→Y), what happens?

Work in process builds up between X and Y

What happens when schedulers try to reduce setup time by running larger batches? Check all that apply.

Work in process increases Investment in inventory increases

cycle counting

a physical inventory-taking technique in which inventory is counted on a frequent basis rather than once or twice a year. key is to decide which items will be counted and by whom.

Drum-Buffer-Rope

a planning and control system that regulates the flow of work-in-process materials at the bottleneck or the capacity constrained resource in a productive system. buffers created in response to the bottleneck. bottleneck is the drum of the entire system.

Schedulers are tempted to save setup times; although, doing so is

a bad idea under TOC.

Balanced Scorecard

a consulting tool which shows a combination of performance measures directed toward the company's long and short term goals and used as the basis for awarding incentive pay. Attempts to reflect the particular needs of each stakeholder and is tailored to what senior level and branch level management can control.

Kaisen event

a cross functional team comes together and the 5Ss are often what the team uses up front.

Q

amount to be ordered

Failure mode and effect analysis is used in Six Sigma projects. It involves which of the following?

calculating a risk priority number for each possible failure

When the mean and standard deviation of the process are operating such that the upper and lower control limits are acceptable relative to the upper and lower specification limits, we say the process is

capable

If there is no bottleneck the best place to place the drum is the

capacity constrained resource

Capacity-constrained resource (CCR)

capacity is close to demand placed on resource

An analytical tool used in Six Sigma quality improvement programs is which of the following?

check sheets

Poka-yokes include

checklists or special tooling that 1) prevents workers from making errors that lead to defects 2) provides immediate feedback in response to defects

In strategy development, the focus is on analyzing the capabilities of operations in light of the firm's

competitive strategy

The Malcolm Baldrige National Quality Award is given annually in all of these categories

education small business service health care

To enable this pull process to work smoothly, lean production demands high levels of quality at each stage in the process, strong vendor relations and a fairly predictable demand for the

end product

work sampling

evaluates job candidates as they perform actual work tasks

fixed order quantity models are

event triggered

Where in a process is there an opportunity for defects?

every step or activity

A project champion is usually drawn from what levels of an organization?

executive

roles consultants choose

expert role (traditional view of mgmt consultant) pair of hands role (for orgs that are resource tight, they could do it themselves but everyone is too busy so they hire an outside consultant) collaborative role (strategic partner)

Applying lean concepts in manufacturing balances increases in cost with quality improvement.

false

Dependent demand inventory levels are usually managed by calculations using calculus-driven, cost-minimizing models.

false

Design of experiments (DOE) refers to work done before production of early model prototypes of a new product.

false

In inventory models, high holding costs tend to favor high inventory levels.

false

Lean suppliers tend to charge more; although, the extra charge is generally a good investment.

false

What is the portion of the EOQ equation represents annual holding cost?

(Q/2)*H

basic purpose of inventory analysis

1) when items should be ordered 2) how large the order should be

Project Management Techniques

1. Gantt chart 2. Critical Path Method (CPM) 3. Program Evaluation and Review Technique (PERT) These plan and monitor the entire portfolio of consulting engagements for the firm at a single point in time as well as individual consulting projects.

"A" items account for approximately ____% of the items in inventory.

15

The cost of quality has been estimated at what percentage of every sales dollar?

15-20%

kanban

A Japanese word meaning "card" or "visible record" that refers to cards used to control the flow of production through a factory. Authorizes production from downstream operations 'Pulls' Material through the plant May be a card, flag, verbal signal, etc. Used often with fixed-size containers... you can add or remove containers to change production rate. eg using a colored system for containers

Taguchi's View of Variability Costs

Concave up parabola.

The ISO 9000 standards are based on a number of quality management principles. These principles focus on what related to the following areas in the firm? Check all that apply

Continual improvement Involvement of people Leadership Process approach Customer focus

Analytical Tools

Flowchart, Run Chart, Pareto Chart, Check sheet, Cause-and-effect diagram, Opportunity flow diagram, process control chart

Which of the following is/are typical consulting implementation tools?

Gantt Charts PERT Responsibility Charts

Improve

Identify means to remove the causes of defects.

Improvement Basis: Crosby

a process, not a program; improvement goals

Interpreting upper and lower specification limits (Traditional View)

a traditional way of interpreting such a specification is that anything that falls within that range is good/acceptable and anything that falls outside is totally bad.

Fishbone diagram

a visual aid that helps organize cause and effect relationships for "things gone wrong" goal is to list the things going wrong

quality=

ability for a factor or service process to produce the products

D

annual demand

For industrial applications in process control involving the measurement of variables, it is preferable to keep the sample size small. Why is this? Check all that apply.

cost and time

In a fixed time period

inventory model, the interval of time between orders is fixed and order quantity varies.

L

lead time

A key use of customer surveys is customer

loyalty analysis

Goldratt holds that the goal of any firm is to

make money

Which of the following is an operations consulting opportunity characterized as focusing on "parts"?

make or buy decisions

acceptance quality level

maximum acceptable percentage of defectives defined by the producer

productivity

measured in terms of output per labor hour

If the mean is exactly in the center and Cpk = 2.00, then two defects per

million are expected

Lean requires a _____________ of work-in-process inventory.

minimum

collaborative or process consultant

most effective in operations management consulting projects

reduction of inventory through the

pull system

If a process can be improved by reducing the standard deviation associated with the bearing diameter, the probability of producing defective parts can be

reduced

statistical fluctuation

refers to the normal variation about a mean or average

practices that deal more with procedural, low-risk work will be inefficient if they do not have a lower ratio of partners to juniors because high-priced staff should not be doing low-value

tasks

When developing inventory cost models, which of the following is not included as a costs to place an order?

taxes

Pareto analysis

technique for classifying problem areas according to degree of importance, and focusing on the most important (applied to inventory management under the heading of ABC analysis)

safety stock

the amount of inventory carried in addition to the expected demand. in a normal distribution, this would be the mean.

inventory system

the set of policies and controls that monitor levels of inventory and determines what levels should be maintained, when stock should be replenished, and how large orders should be

Fixed-time period model

this is similar to the fixed-order quantity model, and is to be used when the item should be in stock and ready to use. rather than monitoring the inventory level and ordering when the level gets down to a critical quantity , the item is ordered at certain intervals of time, eg every Friday morning. This is often convenient when a group of items is ordered all together

The buffer before a bottleneck is a

time buffer

Lean production is an integrated set of activities designed to achieve high-volume production using minimal inventories of raw materials, work-in-process, and finished goods.

true

On an assembly line, a transfer batch can be one unit.

true

One of the many lean techniques that have been successfully applied in service firms is the upgrading of housekeeping.

true

The computation of a firm's inventory position is found by taking the inventory on hand and adding it to the on-order inventory, and then subtracting backordered inventory.

true

Six Sigma calculations require

unit defect opportunity

with service organizations there is often a price to pay for being lean, and that price often is at the expense of customer service when

unlikely events occur

Improvement Basis: Deming

- Continuous to reduce variation - Eliminate goals that have no method

Two things we need to do to address a bottleneck

1) Keep a buffer inventory in front of it to make sure it always has something to work on. 2) Communicate back upstream to A what D has produced so that A provides only that amount.

The management consulting industry can be categorized three ways

1) by size 2) by speculation 3) by in-house and external consultants

three basic assumptions justify an analysis of the costs of quality

1) failures occur 2) prevention is cheaper 3) performance can be cheaper

Lean Supply Chains

1. Specialized plants 2. Work with suppliers 3. Building a lean supply chain

Lean Production Schedules

1. uniform plant loading 2. kanban production control system 3. determination of number of Kansans needed 4. minimized setup times

Because most consulting firms are involved in multiple projects at one time, the percentage of billable employee hours assigned to all projects (target utilization) will be less than

100%

Which model is more likely to have a stock out?

Fixed-time period

JIT is typically applied to repetitive manufacturing.

JIT does not require large volumes and can be applied to any repetitive segments

Goldratt Theory of Constraints

States that we must identify the most important limiting factor and systematically improve constraint until it is no longer limiting.

a single sampling plan is defined by n and c, where n is the number of units in the sample and c is the

acceptance number

Plant tours/audits

an extensive manufacturing/service audit requires a team which can devote a long period of time (weeks to months) to perform an audit and use standardized performance measures

all manufacturing processes can be simplified into four basic configurations. production processes can be greatly simplified for

analysis and control

C

cost per unit

design quality

inherent value of the product in the marketplace

L

lead time in days

Deming

no optimum; continuous improvement

Often, increases in productivity occur as a by product of efforts to reduce the cost of

quality

A time buffer typically occurs where in the process?

in front of the bottleneck

From an operations standpoint, the goal of the firm is to

increase throughput while simultaneously reducing inventory and reducing operating expense

inventory position

is defined as the on-hand plus on-order minus backordered quantities.

Which of the following is not one of the categories of manufacturing inventory?

just in time

A signaling device used to control production is

kanban

Which of the following denotes the total number of samples?

m

Where a product is involved, who is responsible for ensuring that quality specifications are met?

manufacturing management

With an assembly line, setup costs relate to the

process batch

Around 1980, Dr. Eli Goldratt (an Israeli business consultant) contended that manufacturers were not doing a great job in scheduling and controlling their resources and inventories. To solve this problem, Goldratt and his associates, at a company named Creative Output, developed software that scheduled jobs through manufacturing

processes-taking into account limited facilities, machines, personnel, tools, materials, and any other constraints that would affect a firms ability to adhere to a schedule

All of the following are types of waste in a lean process:

product defects wasting time motion

process control is concerned with monitoring quality while the

product or service is being produced

Lean production and six sigma work best in repeatable, standardized

production processes

an hour saved at the bottleneck adds an extra hour to the entire

production system

both quality of design and conformance should provide products that meet the customers objectives for these

products. This is often termed the product's fitness for use, and it identifying the dimensions of the product (or service) that the customer wants (that is, the voice of the customer) and developing a quality program to ensure that the dimensions are met.

A capacity resource ___________ is is obtained by looking at the loads placed on each resource by the products that are scheduled

profile

Process Dashboards

provide summary performance updates for certain processes

Deming

quality has many scales; use statistics to measure performance in all areas; critical of zero defects

Design Quality

refers to the inherent value of the product in the marketplace and is thus a strategic decision for the firm. The dimensions of design quality relate directly to design issues.

environmental footprint

relates to the impact that running the supply chain has on the environment

fixed time period models generally require a higher degree of

safety stock (than fixed order quantity models)

Kanban means

sign or instruction card in Japanese

TC

total annual cost

hierarchy of a consulting firm

(finders)top: partners/seniors... primary job is client relations (minders)middle: managers who deal with projects/engagements (grinders) juniors: carry out consulting work as a part of a consulting team

Lean suppliers

- able to respond to changes - prices are lower due to efficiency - higher quality -to develop lean suppliers, organizations should include them in their value stream planning

Problem Definition tools

- issue trees - customer surveys - gap analysis - employee surveys - five forces model

Improvement Basis: Juran

- project-by-project team approach - set goals to have a process map

To achieve outstanding quality requires

- quality leadership from senior management - CUSTOMER FOCUS - total involvement of workforce - continuous improvement based upon rigorous analysis of processes

specialized plants

-Small specialized plants rather than large vertically integrated manufacturing facilities -Can be constructed and operated cheaper

Building a Lean Supply Chain

-Value must be defined jointly for each product family based on the customer's perception -All firms along the value stream must make an adequate return on their investments -Firms must work together to eliminate waste (muda) -When cost targets are met, the firms will conduct new analyses to identify remaining waste and set new targets. -Every participating firm has the right to examine every activity relevant to the value stream as part of the joint search for waste

Which of the following are reasons to use inventory as a safeguard against raw material delivery time variation?

-an unexpected strike at a vendors plant -shortage of material at the vendors plant -normal variation in shipping time

advantages of pull system

-by pulling material in small lots, inventory cushions are removed, exposing problems and emphasizing continuous improvement -manufacturing cycle time is reduced -push systems dump orders on the downstream station regardless of the need

Fixed Time Period Model of Inventory Management

-inventory is ordered in different quantities but at the same time intervals eg every week -system must be monitored slowly -on hand inventory must be tracked daily

ABC Analysis Pareto Principle

-look at the items that make up your total revenues -20% of items make up 80% of your total sales -tells you which items you need to hold the most inventory in -A items are those items which contribute the most to revenue, B items are those which they want slightly less, C items are those products that have the least demand.

Be on the look our for the following within the "common cause" area on a control chart

-multiple points very near the control limit -five or more consecutive points above or below the mean -positive or negative trends (points are more above or more below the mean)

Inventory

-one of the largest line items on the balance sheet -represents a whole bunch of cash in the form of physical goods -inventory can be one of the most expensive assets of an organization -inventory may account for more than 10% of total revenue or 20% of total assets -management must reduce inventory levels to increase cash flow

Lean production is an integrated set of activities which seeks to minimize the use of

-raw materials -work in process -finished goods

areas where six sigma makes sense

-surgery -prescribing medicine -air traffic control

Among the hot areas of manufacturing strategy consulting are

-sustainability -outsourcing -supply chain management -global manufacturing networks

services operate with uncertainty and variability with respect to waste:

-uncertainty in task times -uncertainty in demand -customers' production roles

Single Period Model of Inventory Management

-used when we are making a one-time purchase of an item -inventory is determined by examining the costs of having too much inventory and the costs of having too little inventory

Fixed Order Quantity Model of Inventory Management

-you order the same amount each time -used when we want to maintain an item in stock and when we restock, a certain number of units must be ordered -reorder point must be changed at times so you don't run out of inventory -must constantly monitor this system

The costs of quality are generally classified into four types:

1) Appraisal Costs 2) Prevention Costs 3) Internal Failure Costs 4) External Failure Costs

Genichi Taguchi's (quality expert from Japan) view of the Traditional View

1) From the customer's view there is practically no difference between a product just inside the specifications and a product just outside. Conversely, there is a far greater difference in the quality of a product that is at the target and the quality of one that is near the limit. 2) As customers get more demanding, there is pressure to reduce variability but the traditional view does not represent this logic.

To test whether productivity has increased we must ask three questions:

1) Has the action taken increased throughput 2) Has it decreased inventory 3) Has it decreased operational expense

Major Inventory Cost Buckets

1) Holding (or carrying) costs: costs for storage, handling, insurance, and so on 2) Setup (production change costs): costs for arranging specific equipment setups, and so on 3) Ordering Costs (costs of placing an order) 4) Shortage Costs (costs of running out)

SQC can be applied to logistics, manufacturing and service processes. Here are some examples of how SQC can be applied:

1) How many paint defects are there in the finish of a car? Have we improved our painting process by installing a new sprayer 2) How long does it take to execute market orders in our web-based trading system? Has the installation of a new server improved the service? Does the performance of the system vary over the trading day? 3) How well are we able to maintain the dimensional tolerance on our three inch ball bearing assembly?

Place the steps to Goldratt's Theory of Constraints in the correct order.

1) Identify System Constraints 2) Decide how to exploit the system constraints. 3) Subordinate everything else to that decision. correct toggle button unavailable 4) Elevate the system constraints. 5) If, in the previous steps, the constraints have been broken, go back to step one but do not let inertia become the system constraint

10 of the most successful techniques applied to service companies

1) Organize Problem Solving 2) Upgrade Housekeeping 3) Upgrade Quality 4) Clarify Process Flows 5) Revise Equipment and Process Technologies 6) Level the Facility Load 7) Eliminate Unecessary Activities 8) Reogranize Physical Configuration 9) Introduce Demand- Pull Scheduling 10) Develop Supplier Networks

single period inventory models are useful for things such as

1) Overbooking airline flights 2) Ordering of fashion items 3) Any type of one time order

There are two ways to find a bottleneck in a system:

1) Run a capacity resource profile 2) Use our knowledge of the particular plant , look at the system in operation and interview its supervisors and workers

Five Primary Functions of Inventory

1) To maintain independence of operations 2) To meet variation in product demand 3) To allow flexibility in production scheduling 4) To provide a safeguard for variation in raw material delivery time 5) To take advantage of economic purchase order size

basic forms of statistical sampling for quality control

1) acceptance sampling: when unloading a truck we open 1 box of the 100 boxes in the truck. Pull randomly the stuff in the box and ensure within specification. If it conforms you accept the entire truckload of stuff 2) sampling to determine if the process is within acceptable limits (statistical process control). things are being created on an assembly line and a few parts from the assembly line are pulled each day to ensure compliance.

The ISO 9000 standards are based on seven quality management principles

1) customer focus 2) leadership 3) involvement of people 4) process approach 5) continual improvement 6) factual approach to decision making 7) mutually beneficial supplier relationships

Three Basic Assumptions justify an analysis of the costs of quality

1) failures occur 2) prevention is cheaper 3) performance can be measured

It has been suggested that market leadership can be attained in one of three ways

1) product leadership 2) operational exellency 3) customer intimacy

value stream map

1) visually shows where waste can be eliminated 2) shows how improvements make the process better

virtually all inventory these days are computerized. the computer can be programmed to produce a cycle count notice in the following cases:

1) when the record shows a low or zero balance on hand 2) when the records show a positive balance but a backorder is written 3) after some specified level of activity 4) to signal a review based on the importance of the item

stages in the operations consulting process

1. Develop sales and proposal development 2. Analyze problem 3. Design, develop, and test alternative solutions 4. Develop systematic performance measures 5. Present final report 6. Implement changes 7. Assure client satisfaction 8. Assemble learnings from the study

Goldratt's Rules of Production Scheduling

1. Do not balance capacity, balance production flow 2. The level utilization of a non-bottleneck resource is not determined by its own potential but by some other constraint in the system 3. An hour lost at a bottleneck is an hour lost for the entire system 4. An hour saved at a non-bottleneck doesn't improve the system 5. Bottlenecks govern both throughput and inventory in the system 6. Transfer Batch is not necessarily equal to the Process Batch 7. Process Batches should be variable both along their route and in time 8. Priorities can be set only by examining the system's constraints

Logic of Optimized Production Technology

1. Do not balance capacity--> balance the flow 2. The level of utilization of a non bottleneck resource is determined not by its own potential but by some other constraint in the system 3. Utilization and activation of a resource are not the same 4. An hour lost in a bottleneck is an hour lost in the entire system 5. An hour saved at the bottleneck is a mirage 6. Bottlenecks govern both inventory and throughput in a system 7. The transfer batch may not, and many times should not, be equal to the process batch 8. A process batch should be variable along its route and in time 9. Priorities can be set only by examining the systems constraints. Lead time is a derivative of the schedule.

Three Forms of ISO Certification

1. First party: a firm audits itself against ISO 9000 standards 2. Second party: a customer audits its supplier 3. Third party: a "qualified" national or international standards or certifying agency serves as auditor -best certification of a firm is through a third party

Steps to Goldratt's Theory of Constraints

1. Identify System Constraints 2. Decide how to exploit the system constraints 3. Subordinate everything else to that decision 4. Elevate the systems constraints 5. If, in the previous steps, the constraints have been broken, go back to step one but do not let inertia become the system constraint

Respect for People

1. Lifetime employment for permanent positions 2. Maintain level payrolls even when business conditions deteriorate 3. Company unions 4. Bonuses 5. View workers as assets

Advantages of Inventory

1. Maintaining independent of operations 2. Meeting variation in production demand 3. Taking advantage of economic purchase order size 4. Accommodating variability in raw material delivery time

Dimensions of Design Quality

1. Performance 2. Features 3. Reliability/Durability 4. Serviceability 5. Aesthetics 6. Perceived Quality

Purposes of Inventory

1. To maintain independence of operations 2. To meet variation in product demand 3. To allow flexibility in production scheduling 4. To provide a safeguard for variation in raw material delivery time 5. To take advantage of economic purchase-order size 6. Many other domain specific reasons

Seven prominent types of waste to be eliminated from the supply chain

1. Waste from overproduction 2. Waste of waiting time 3. Transportation waste 4. Inventory waste 5. Processing waste 6. Waste of motion 7. Waste from product defects

costs of quality are generally classified into four types

1. appraisal costs 2. prevention costs 3. internal failure costs 4. external failure costs

Eight Types of Waste

1. overproduction 2. inappropriate processing 3. waiting 4. transportation 5. motion 6. inventory 7. defects 8. underutilization of employees

In cycle counting, the accuracy level recommended by experts for "A" items is +/- ______.

2%

It is generally believed that the correct cost for a well-run quality management program should be under what amount?

2.5%

pareto principle

20% of people control 80% of the wealth

To generate a Cpk value of 1.00, the design limits must be ________ standard deviations away from the process mean

3

ISO 14000

A collection of the best practices for managing an organization's impact on the environment.

flowchart

A diagram that shows step-by-step progression through a procedure or system especially using connecting lines and a set of conventional symbols.

Five Forces Model

A framework that identifies five forces that determine the profit potential of an industry and shape a firm's competitive strategy.

5Ss

A lean production checklist: Sort, Set in Order, Sweep, Standardize, Self-discipline, Sustain. Tries to help maintain order of lean manufacturing. Can be used in office space and service industries as well. Essentially tries to eliminate waste. Most difficult part is sustaining this over time.

Plant

Adding and locating new plants; expanding, contracting, or refocusing existing facilities.

Malcolm Baldrige National Quality Award

An award started in 1987 to recognize companies that have achieved a level of world-class competition through quality management (used to incentivize better quality in the US)

Products Fitness for Use

Both quality of design and quality of conformance should provide products that meet the customer's objectives for those products. Entails identifying the dimensions of a product that the customer wants and then creating quality control programs to ensure those dimensions are met.

Which of the following categories are ways to characterize the operations consulting industry?

By specialization By size In-house vs. external

Personnel practices associated with Six Sigma implementation

Executive leaders, who are truly committed to Lean Six Sigma and who promote it throughout the organization, and champions, who take ownership of the processes to be improved Corporate wide training in Six Sigma concepts and tools Setting of stretch objectives for improvement continuous reinforcement and rewards

The "dollar days" inventory measurement can be used in purchasing to discourage large work-in-process and producing earlier than is needed.

False. Dollar day measurements also could be used in other areas -marketing to discourage holding large amounts of finished goods inventory -purchasing to discourage placing large purchase orders that on the surface appear to take advantage of quantity discounts -manufacturing to discourage large work in process and producing earlier than needed -project management- to quantify a project's limited resource investments as a function of time

Multi-Period Model

Fixed-order quantity models -Also called the economic order quantity, EOQ, and Q-model -Event triggered Fixed-time period models -Also called the periodic system, periodic review system, fixed-order interval system, and P-model -Time triggered

Failure Modes and Effects Analysis (FMEA)

Forces us to think through all the process steps and to go through possible errors within each process step (eg Walmart delivery to your fridge)

Other things remaining the same, and assuming that X⎯⎯⎯X¯ is smaller than USL and larger than LSL, if the standard deviation (σ) of the process decreases, process capability index (Cpk) of the process will I. Stay the same II. Will always increase III. Will always decrease IV. Will sometimes increase

II

Independent Versus Dependent Demand

Independent demand -the demand for item is independent of the demand for any other item in inventory -in independent demand the demand for various items are unrelated to each other Dependent demand -the demand for item is dependent upon the demand for some other item in the inventory -in dependent demand the need for any one item is a direct result of the need for some other item

Lean Production

Integrated activities designed to achieve high-volume, high-quality production using minimal inventories of raw materials, work-in-process, and finished goods. -involves the elimination of waste -involves the timing of production resources i.e. parts arrive at the next work station "just in time"

the basis of lean manufacturing cam from just in time manufacturing (JIT) at Toyota in

Japan

Example: Single Period Inventory Management

Newspaper Problem: -consider the problem that the newsperson has in deciding how many newspapers to put in the sales stand outside a hotel lobby each morning -too few papers and some customers will not be able to purchase a paper, and profits associated with these potential sales are lost -too many papers and the price paid for the papers that were not sold during the day will be wasted, lowering profit -this is a very common type of problem -optimizes a balance between holding inventory and not holding inventory

If a bottleneck operation has a relatively large setup time between products, which of the following techniques will best optimize the bottleneck?

Run larger batches to reduce the number of setups required.

The normal variation about a process mean or average is called?

Statistical fluctuation

Lean production uses a pull system. To enable this pull process to work smoothly, lean production demands what? Check all that apply.

Strong vendor relations High levels of quality at each stage of the process Fairly predictable demand for the end product

inventory position

The amount on-hand plus on-order minus backordered quantities. In the case where inventory has been allocated for special purposes, the inventory position is reduced by these allocated amounts.

A practice that specializes in cutting edge high risk client work must have

a high partner to junior ratio because lower level workers won't be able to deliver the necessary quality all on their own

gap analysis

a marketing research method that measures the difference between a customer's expectation of a service quality and what actually occurred (performance relative to the expectations of customers and competitors)

An hour saved at a non-bottleneck is...

a mirage and only adds an hour to its idle time

Statistical Quality Control (SQC)

a number of different techniques designed to evaluate quality from a conformance view

Six Sigma Approach

a philosophy and set of methods companies use to eliminate defects in their products and process Define--> Measure--> Analyze--> Improve--> Control--> Define

group technology

a philosophy in which similar parts are grouped into families, and the processes required to make the parts are arranged in a specialized workcell

value stream mapping

a special type of flowcharting tool used to analyze where value is or is not being added as material flows through a process. very valuable for the development of lean processes. used to visualize product flows through various processing steps. identifies all value added and non-value added processing steps. identification of wasteful processes or flows can be identified so that they can be eliminated.

Failure Mode and Effects Analysis (FMEA)

a structured approach to identify, estimate, prioritize, and evaluate risk of possible failures at each stage in the process

statistical process control

a system in which management collects and analyzes information about the production process to pinpoint quality problems in the production system. Some notable LSS SPC techniques include: -process capability -sampling -control charts

Most large consulting companies are built on information technologies and

accounting work

Fundamental to any quality program is the determination of quality specifications and the costs of

achieving (or not achieving) those specifications.

Inventory

all the money that the system has invested in purchasing things it intends to sell

Operating Expenses

all the money that the system spends to turn inventory into throughput

source inspection

also performed by the individual worker, except instead of checking for defects, the worker checks for errors that will cause defects

Malcom Baldrige National Quality Award

an award given by the President of the United States to organizations judged to be outstanding in specific managerial tasks that lead to improved quality for both products and services

population

an existing collection of entities from which samples can be drawn -the entire thing -small greek letters to indicate population statistic -N=number of values in a population

In which step of the DMAIC cycle do you determine the most likely causes of defects and understand why defects are generated?

analyze

Which of the following is not included as an inventory holding cost?

annualized cost of materials

non-bottleneck

any resource whose capacity is greater than the demand placed on it

waste

anything that does not add value from the customer's perspective eg defective products, inventories, overproduction, excess motion, processing steps.

Which of the following is the cost of quality classification for costs such as inspection, testing, and other tasks to ensure that the product or process is acceptable?

appraisal costs

Expenditures related to achieving product or service quality include all of the following

appraisal costs failure costs prevention costs

costs (costs of poor quality)

appraisal costs: costs of the inspection and testing to ensure that the product or process is acceptable prevention costs: sum of all the costs to prevent defects internal failure costs: costs for defects incurred within the system external failure costs: costs for defects that pass through the system

Anything above an upper or lower control limit (3 standard deviations of the mean) on a control chart is an area of concern or an

area of special-cause variation

Juran

avoid campaigns to do perfect work

When you remove the number of parts used in production to adjust on-hand inventory balances, you are conducting a

backflush

checksheet

basic form to standardize data collection

How often to take a sample is a trade-off between the cost of sampling and the ___________ of adjusting the system.

benefit

historically (and still typically in most firms), manufacturers have tried to balance capacity across a sequence of processes in an attempt to match capacity with market demand. However, this is the wrong thing to do--unbalanced capacity is

better

A _____________ is any resource whose capacity is less than the demand placed upon it.

bottleneck

Synchronous manufacturing has excess capacity throughout the system, except for the

bottleneck

To ensure the bottleneck never becomes idle, manufacturers often deliberately create ___________ inventory right in front of the bottleneck.

buffer

Usually, it is best to start off with frequent sampling of a process and taper off as confidence in the process

builds

control charts are an important tool for understanding the variation that we have in

business processes. Control charts allow us to differentiate whether the variation we have is normal and acceptable or if it has something special happening that should be addressed.

sample

collection of observations acquired from a population -only a portion -often denoted with a bar or lowercase letter -n=number of values in the sample

There are Two Forms of Variation

common cause variation (random) -variation due to random shift inherent in the process -only way to reduce is to make fundamental change to the system -eg the average call time varies between 1-3 min at a call center special cause variation (assignable) -variation caused by identifiable factors that may not always be present in the process -we can potentially manage this type of variation -eg a new call center, with new employees, caused the average call time to be above 5 minutes last month

Quality at the source is often discussed in the context of ______________ quality.

conformance

value stream

consists of the value-adding and non-value-adding activities required to design, order, and provide a product or service from concept to launch, order to delivery, and raw materials to customers

The most common method to improving inefficiency is to implement a uniform approach to each aspect of the

consulting job

fishbone diagrams are a great way to lay out one's first cut at a

consulting problem

Which of the following is the probability associated with accepting a low-quality lot is termed?

consumers risk

Taguchi argues that being within specification is not a yes/no decision but rather a

continuous function

The purpose of classifying items into groups is to establish the appropriate degree of

control over each item

In what operations consulting tool kit category would one find a balanced scorecard?

cost impact and payoff analysis

Crosby

cost of non conformance, quality is free

S

cost of placing an order or setup cost

internal failure costs

costs for defects incurred within the system: scrap, rework, repair

external failure costs

costs for defects that pass through the system: customer warranty replacements, loss of customers or goodwill, handling complaints, and product repair

appraisal costs

costs of the inspection and testing to ensure that the product or process is acceptable

The synchronous approach uses forward scheduling because it focuses on other

critical resources

"Analyze" Six Sigma

determine the most likely cause of defects

The Shingo System

developed in parallel to and in conflict with the statistically based approach to quality control. This system--or, to be more precise, philosophy of production management has two major aspects. 1) How to accomplish drastic cuts in equipment setup times by single minute exchange of die (SMED) procedures 2) The use of source inspection and the poke yoke system to achieve zero defects

ABC Inventory Classification

divides inventory into three groupings: high dollar volume (a), moderate dollar volume (b) and low dollar volume (c) -establishes an appropriate degree of control over each item

Inventory classifications of A, B, and C are based on:

dollar volume or frequency of use.

One hundred percent inspection is justified when the cost of inspection is low.

false

The probability associated with accepting a low-quality lot is denoted in acceptance sampling with the Greek letter alpha.

false

The producer's risk associated with rejecting a high-quality lot is denoted in acceptance sampling with the Greek letter beta.

false

True or false: Customer surveys are usually performed by operations consultants.

false

An MRP system uses backward scheduling derived from the master production schedule; whereas, synchronous manufacturing uses a ____________ scheduling system focused on critical resources.

forward

What term refers to the period of time during which the schedule is fixed and no further changes are possible?

freeze window

high levels of inventory can

hide issues present within the organization! eg if a truck breaks down or the manufacturing process breaks down but you hold a ton of inventory you have a ton of built up inventory so it doesn't really hurt you but if you parents holding a lot of inventory then this would really hurt you.

"Define" Six Sigma

identify customers and their priorities

"Improve" Six Sigma

identify means to remove the causes of defects

The ISO standards ask a company first to document and then __________ its systems for quality management.

implement

Lean production may be one of the best ways to

implement green strategies in manufacturing and service processes

A consultant is a person in a position to have some influence over an individual, a group, or an organization but has no direct power to make changes or

implement programs

If you're implementing lean manufacturing you need to do it

incrementally.

the most complex projects require

innovation and creativity

Lean production requires that activities be __________________ to achieve production using minimal inventories.

integrated

When designing a lean layout, the system designer must consider what type of logistics systems tie to the layout?

internal and external

Which of the following is the cost of quality classification for costs such as scrap, rework, or repair?

internal failure costs

When statistical fluctuations occur in a dependent sequence without any _________________ between workstations, there is no opportunity to achieve the average output.

inventory

Decision trees are widely used in examining plant and equipment _________ and R/D projects

investments

statistical process control

involves testing a random sample of output from a process to determine whether the process is producing items within a preselected range

Preventative Maintenance

is emphasized to ensure that flows are not interrupted by downtime or malfunctioning equipment. Preventative maintenance involves periodic inspection and repair designed to keep a machine reliable

the fixed order quantity model favors more expensive items because average inventory

is lower

Required quantities of a dependent demand item are simply computed, based on the number needed in each higher-level item in which

it is used.

When space is marked on the floor to identify where products should be stored is an example of which type of kanban signal?

kanban squares

TQM came about because of American concern for

lagging behind the Japanese in quality management for producing items such as automobiles

a focus on reducing cost by lowering raw material, work-in-process, and finished goods inventory to an absolute minimum.

lean

Lean logistics

lean concepts can be applied to the functions associated with the movement of material through the system. some of the key areas include optimized mode selection and pooling orders, combined multistep truckloads, optimized routing, cross docking, import/export transportation process and backhaul minimization

employees at Toyota know that if the company performs well, they will receive a bonus. Treating employees well/fairly is a hallmark of

lean manufacturing

The TOC five step application is more focused in its approach than

lean manufacturing and six sigma

six sigma refers to the philosophy and methods companies such as General Electric use to eliminate defects in their products and processes. A defect is simply any component that does not fall within the customer's specification ___________

limit

Designers establish specifications that define not only the target value of something but also acceptable

limits about the target

The size of the lot that the sample is taken from has relatively what kind of effect on the quality of protection?

little

the fixed order quantity model requires more time to maintain because every addition or withdrawl is

logged

If the design specifications are 10.00 inches ± 0.2 inch, then 9.80 is the

lower specification limit

A supply of materials at a work center allows one to:

maintain independence of operations

The broad steps in the operations consulting process are roughly the same as for any type of

management consulting

Total Quality Management (TQM)

managing the entire organization so that it excels on all dimensions of products and services that are important to the customer It has two fundamental organizational goals: 1) careful design of a product or service 2) ensuring that the organization's systems can consistently produce the design

For what is a fishbone diagram used?

map key problems, provide an initial hypothesis

Maintenance, Repair and Operating (MRO)-

materials used in production (eg cleaners & brooms) a catch all for things that don't fit in the other categories of inventory

Total Quality Management (TQM)

may be defined as managing the entire organization so it excels in all dimensions or products and services important to the customer. It has two fundamental goals: 1) Careful design of the product or service 2) Ensuring that the organizations systems can consistently produce the design

Which of the following is a plot of the averages of the samples that were taken from a process?

mean chart

The capability index is used to

measure how well our process is able to produce relative to the design specifications.

A process that is running at six sigma levels has 3.4 defects per

million

An hour saved at non bottleneck is a

mirage and only adds an hour to its idle time.

According to Goldratt, the goal of the firm is to make

money

Lean manufacturing is based on the principle that nothing will be produced until

needed

According to the theory of constraints, which of the following is an operational measurement that can be used to measure the firm's ability to make money?

net profit

the single period problem is known as the

newspaper problem

k=

number of Kanbans needed

level schedule

one that requires material pulled in a pattern uniform enough to allow production to respond to pull signals

in an assembly line we have a process batch of infinity and a transfer batch of

one unit

difference between general management and operations consulting

operations consulting leads to changes in physical or information processes whose results are measurable immediately. general management consulting deals with changes in attitudes and culture, which take longer to yield measurable results.

One Bin system (Periodic Check)

order enough to refill the bin

The managerial and clerical costs to prepare purchase or production orders are called:

ordering costs

in the upper echelons of the supply chain, which are supply points closer to the customer, stock usually is kept so that an item can be delivered quickly when a customer needs

orders

Building a lean supply chain involves taking a systematic approach to integrating the

partners

Dimensions of Quality

performance, features, reliability, conformance, durability, serviceability, aesthetics, perceived quality

dimensions of quality

performance, features, reliability, conformance, durability, serviceability, aesthetics, perceived quality

.A fixed-time period model is also called the _____.

periodic review system periodic system P-model fixed-order period model

When conducting preventive maintenance, how often should inspection and repair be planned?

periodically

internal consulting arms are common in large companies and make up part of the

planning departments

the term dependent event refers to a process sequence. If a process flows from A to B and the B to C, each process must be completed before moving on to the next step. The ability to perform the next step is dependent on the

preceding one

Periodic inspection and repair designed to keep equipment reliable is called

preventative maintenance

Because of favorable pricing in the short-term, a company is looking at ordering a larger-than-needed optimal quantity of an item, and keeping the excess in inventory. Which model is the company likely performing to arrive at this decision?

price break

Operations consulting tools can be categorized as tools for

problem definition, data gathering, data analysis, solution development, cost impact and payoff analysis, and implementation

The underlying distribution for the c-chart is based on the assumption that defects occur

randomly on each unit

finished goods inventory is more expensive than

raw material inventory

sometimes continuous improvement methods get a bad rep because they focus on

reducing labor (laying people off). reality is that they are reducing work for laborers in non value added areas and putting them in more value added areas.

R

reorder point

A fixed order quantity order uses a

reorder point, R, to trigger an order of an optimum amount of product, labeled Q.

gray hair projects

require a great deal of experience but little in the way of innovation

capacity constrained resource

resource whose utilization is close to capacity and that could be a bottleneck if not scheduled carefully

implementation tools

responsibility charts, project management techniques

most consulting firms are small, generating less that $1 Million in annual

revenue

Company X uses a visual board to communicate what the bottleneck operation is producing at any point in time. Upstream operations from the bottleneck use this information to match production rates. Goldratt would call this communication board a _____?

rope

Acceptance sampling is executed through a

sampling plan

acceptance sampling is executed through a

sampling plan

When a customer audits its supplier in regards to ISO certification, this is referred to as a ____________ certification.

second party

in services, inventory generally refers to the tangible goods to be sold and the supplies necessary to administer the

service

in manufacturing organizations waste is far more controllable than in

service organizations

The dimension of design quality that concerns the ease of repair is which of the following?

serviceability

____________ time is the time that a part spends waiting for a resource to be set up to work on this same part.

setup

cause and effect diagram

show relationships between causes and problems

capability index

shows how well the parts being produced fit into the range specified by the design specification limits.

If a company is trying to find the optimal amount of inventory to produce for a single event, it is likely to deploy which type of inventory model?

single period

for industrial applications in quality control involving the measurement of variables, it is preferable to keep the sample size

small

Because the process mean can shift in either direction, the direction of shift and its distance from the design specification set the limit on the process capability. The direction of shift is toward the

smaller number

container system

sometimes the container itself can be used as a signal device. in this case, an empty container on the factory floor visually signals the need to fill it. The amount of inventory is adjusted by simply adding or removing containers

Successful implementation of Six Sigma is based on using what?

sound personnel practices as well as technical methodologies

An inventory control system provides the organizational structure and the operating policies for maintaining and controlling goods to be

stocked

the fixed order quantity model is more appropriate for items such as critical repair parts because there is closer monitoring and therefore quicker response to a potential

stockout

An effective job of operations consulting results in an alignment between

strategy and process dimensions

Kanban pull system

the authority to produce or supply additional parts comes from downstream operations

E-procuremet

the automatic transaction, sourcing, bidding and auctions using web-based applications and the use of software that removes human interaction and integrates with the financial reporting of the firm.

procedures project

the general nature of the project is well known and the activities needed to complete it are similar to those performed on other projects

for a part waiting to go through a bottleneck, the queue is usually

the greatest

when applied to supply chains, waste reduction refers to

the optimization of the value adding activities and the elimination of non value adding activities that are part of the value stream

B

the probability associated with accepting a low quality lot

a

the probability associated with rejecting a high quality lot

Upper and lower specification limits

the range of values in a measure associated with a process that is allowable given the intended use of the product or service e.g. if the target value of dimension is 10 inches the upper and lower specification limits could be 9.8 and 10.2

throughput

the rate at which money is generated by the system through sales; goods sold

The standard practice in statistical process control for variables is to set control limits how many standard deviations from the mean?

three

multiperiod inventory systems are designed so that an item will be available for an ongoing basis

throughout the year

With regards to Goldratt's rules of production scheduling: Bottlenecks govern both

throughput and inventory in a system

With an assembly line, carrying costs relate to the

transfer batch

heijunka

translates to "smoothing" or "leveling" in Japanese

Which of the following is not a cost associated with inventory management?

transportation costs

Examples of Process Waste

transportation, inventory, defective products

According to the theory of constraints, a capacity-constrained resource (CCR) is one whose utilization is close to capacity and could be a bottleneck if it is not scheduled carefully.

true

Attributes are those quality characteristics that are classified as either conforming or not conforming to specification.

true

If the cost to change from producing one product to producing another were zero, the lot size would be very small.

true

In a process sequence where a product flows from process A to process B, process B is called the dependent process.

true

Lean production is a management philosophy and a pull system throughout the plant.

true

True or false: Lean Six Sigma combines the tools of Six Sigma with the concepts of lean manufacturing?

true

True or false: The effect of setting specification limits on product design allows businesses to monitor processes against these limits.

true

A rule of thumb when setting up a p-chart is to make the sample large enough to expect to count the attribute

twice

two-bin system

two containers of inventory; reorder when the first is empty

Miscellaneous Systems: Bin Systems

two-bin system and one-bin system

The uniqueness of service delivery leads to which source of variation?

uncertainty in task times

smoothing the production flow to dampen the reaction waves that normally occur in response to schedule variations is called

uniform plant loading

sample sizes of four or five

units seem to be the preferred numbers for sample sizes of x-bar charts.

We say that a process is capable when the mean and standard deviation of the process are operating such that the upper and lower control limits are acceptable relative to the

upper and lower control limits

In a fixed time period model, inventory is counted only at fixed time periods such as every week or every month. fixed time period models generate revenues that vary from period to period depending on

usage rates

responsibility charts

used in planning the task responsibilities for a project. Tasks are listed at the top and team/project managers are listed on the side

capability index

used to measure how well our process is capable of producing relative to the design specifications; or, how well the parts being produced fit into the range specified by the design specification limits

opportunity flow diagram

used to separate value-added from non-value-added steps in a process

Backflush

used where the parts that go into each unit of the product are periodically removed from inventory and accounted for based on the number of units produced

Quality characteristics that are measurable are called

variables

when inventory levels are low quality problems become

visible

_________________ time is the time that a part waits not for a resource but for another part so that they can be assembled together.

wait time

Variables Sampling

we measure the actual weight, volume, number of inches, or other variable measurements, and we develop control charts to determine the acceptability or rejection of the process based on those measurements.

Customer order decoupling point

where inventory is positioned to allow entities in the supply chain to operate independently eg if a product is stocked in a grocery store a customer order is never received.... this is the purpose of holding excess inventory. Inventory serves as a buffer to separate the customer from the manufacturing process.

Which of the following is one of the categories of manufacturing inventory?

work in process

The amount of safety stock is:

zσL

The Shingo System: Fail Safe Design

• Shingo's argument: --• SQC methods do not prevent defects --• Defects arise when people make errors --• Defects can be prevented by providing workers with feedback on errors -----1. Successive check -----2. Self-check -----3. Source inspection Poka-yoke includes: --• Checklists --• Special tooling that prevents workers from making errors

organization charts

•Organization Chart - key management document! •Graphic illustration of firm's organization structure •Pyramid form ... the 'skeleton' of a company •Boxes are organizational entities represented by leadership & management positions •Lines designate formal communication lines -often subject to change so care must be taken to see who actually reports to who

Shingo product inspection methods

-----1. Successive check -----2. Self-check -----3. Source inspection

concepts related to lean network design

-building a lean supply chain -specialized plants -collaboration with suppliers

Calculations of Defects per million opportunities requires three pieces of data

1) unit 2) defect 3) opportunity

inventory costs

1. Holding (or carrying) costs 2. Setup (or production change) costs 3. Ordering costs 4. Shortage costs

To generate a Cpk value of 2.00, the design limits must be __________ standard deviations away from the process mean.

6

Theory of Constraints

A specific approach used to identify and manage constraints in order to achieve the company's goals. (Movie w Alex Rogo) Identify Exploit Subordinate Elevate Step One

DMAIC

A standard approach to six-sigma projects. Define Measure Analyze Improve Control

Stakeholder Analysis

A technique used by consultants for analyzing information to determine which stakeholders' interests to focus on and how to increase stakeholder support throughout the project

Fishbone diagram

A visual identification of many potential causes of a problem (provide a working initial hypothesis as a solution to various problems)

Inventory=

Average+ Z score(standard deviation) Z value found in the chart provided based on a %

Where is acceptance sampling used?

Finished goods in a warehouse Components that have passed through a processing step Items received from another company

Which of the following is also called a periodic review system or fixed-order interval system or P-model?

Fixed-time period

Which of the following tools can be used in the Define step of the DMAIC cycle?

Flow Charts

flowcharts

Flowcharts are diagrams that show the steps in a process, often containing captions. They can be used in both manufacturing and services to track the flow of materials, information and people.

Which of the following is/are viable ways to identify the bottleneck in a process?

Run a capacity resource profile. Talk to the supervisors and workers involved with the system in operation.

International Organization for Standardization (ISO)

a specialized international agency recognized by affiliates in over 160 countries. They publish ISO standards.

Which term describes sampling performed on goods that already exist to determine what percentage of products conform to specifications?

acceptance sampling

An hour saved at the bottleneck

adds an extra hour to the entire production system

The dimension of design quality that concerns the sensory characteristics of the product is which of the following?

aesthetics

MRP uses backward scheduling.

after having been fed the master production schedule

checksheets

basic forms which help standardize data collection

A decision tree is used where in the operations consulting tool kit flow?

cost impact and payoff analysis

In what operations consulting tool kit category would one use work sampling?

data gathering

bottleneck

defined as any resource whose capacity is less than the demand placed on it. this constraint within the system limits throughput.

Cost of Quality analysis are common in industry and constitute one of the primary functions of QC

departments

self-check

done by the individual worker and is appropriate by itself on all but items that require sensory judgement

every production system needs a control point and the best place to put the control point is at the bottleneck. This point is called the

drum

At the tactical level, there is a huge market for

e-operations, product development, ISO 9000 certification, and decentralized production control systems

Using the formula in the textbook, the only parameters we need to determine the number of kanban card sets is the average number of units demanded over some time period, the container size, and the safety stock.

false

An assumption in p chart calculation is that the sample size is which of the following?

fixed

Rather than capacities being balanced, the _________ of product through the system should be balanced.

flow

value stream mapping is a two part process--first depicting the current state of the process and then a

future state of the process

ISO documents provide detailed requirements for meeting the standards and describing the tools used for improving quality in the firm. These documents are:

generic and applicable to any organization.

for a non bottleneck, wait time is usually the

greatest

lean customers

have a great understanding of their business needs and specify meaningful requirements. They value speed and flexibility and expect high levels of delivery performance.

Pareto chart

help to break down a problem into components


संबंधित स्टडी सेट्स

Types of Life Insurance Policies

View Set

Chapter 30: The Child with Neuromuscular or Muscular Dysfunction

View Set

Chapter 28: Nursing Management: Lower Respiratory Problems

View Set

AP History Chapter 10 & 11 MindTap Exercises 10.16-11.4

View Set

PSYC 104: General Psychology - Unit One Exam Study Set (University of Kansas) [Genna Losinski]

View Set

Remote sensing, Map and Air Photo, Aerial photography, (9) Remote Sensing Aerial Photography, Photo Interpretation & Image Distortion, Geog 105 Quiz 7, GEOG 105 Quiz H, GIS review, Exam 2- Chapter 3, GIS, GIS Exam 1 and 2, GIS // Midterm, Geospacial...

View Set