Mgmt exam 2 essay questions

From a Total Quality Management approach, what are the two aspects of quality to consider

1. Careful design of the product or service 2. Assurance that the organization's system can consistently produce the design

1. Ask why 5 times 2. Process thinking demands that 3. People work hard at what they measured on 4. A careless mark of disrespect 5. Ask not who is responsible

Gordon King

The time to repair a roof is when the sun is shining

John F. Kennedy

In the end all business operations can be reduced to 3 words

Lee Lacocca

What does it mean to say that MRP is based on dependent demand?

MRP is based on dependent demand. Dependent demand is caused by the demand for a higher level item. Decisions in MRP are directly driven by decisions made elsewhere in planning end-item production. The order quantities depend on the plans for end-item production. Without end-item production there is no need for an MRP system.

Our business is about technology

Michael Dell

Sometimes you can have the smallest role in the smallest production and still have a big impact

Neil Patrick Harris

Their format is not only capital intensive - it's people intensive. Literally they can't train people fast enough. Even if they have access to capital, from a human standpoint, they can't grow any faster.

Neil Stern

List and describe the four general categories of quality costs:

Prevention Costs - costs incurred from activities intended to keep failures to a minimum for example: Establishing Product Specifications Quality Planning Appraisal Costs - costs incurred to maintain acceptable product quality levels For example: Incoming Material Inspections, Process Controls Internal Failures - costs associated with defects found before the product or service reaches the customer For example: excessive scrap, product rework External failures - costs associated with defects found after the costumer receives the product or service For example: Service and repair costs, warranty claims

"We can reach the breakeven point with a utilization rate as low as 80 percent if we have the right product mixture."

Richard Chang

Customers are smarter than ever and looking for more value. More than just customer service, they want great customer service

Shep Hyken

"Innovation is saying no to a thousand things."

Steve Jobs

List at least three significant ways in which services systems differ from manufacturing systems

You cannot inventory service, the process is part of the product, a service cannot be patented, Service is not tangible, Providing a service requires some degree of interaction with the customer.

You don't inspect quality into a product, you have to built it in

if quality standards are enforced as the item is being built, appraisal, internal and external failure costs will decrease Quality is not reflected in the products but also in the services which supplier is going to deliver

In a yield management system, pricing differences must appear logical and justified to the customer. Explain yield management concept and the basis for this justification

the process of allocating the right type of capacity to the right type of customer at the right price and time to maximize revenue or yield Demand can be segmented by customer Fixed costs are high and variable costs are low Inventory is perishable Product can be sold in advance Demand is highly variable The person who pays higher price may have some advantages compared to the one who pays a lower price

How would you apply yield management concepts to a barbershop? A soft drink vending machine?

Barber shops can use yield management by varying the price of service offered to customers. In weekdays, they can charge lesser price or give discounts on the services. Soft drink vending machines it can be used to make sure they are placed in areas that have the greatest customer demand.

The capacity to learn is a gift

Ben Herbert

Supply chain us like nature it's all around us

Dave waters

The production team first meeting

Debbie Allen

What is a customer decoupling point? Why is it important?

Essentially it is where inventory is stored awaiting demand from the customer. It is important because it affects the lead time to fulfill the customer's order and the amount of inventory investment necessary.

What is the major cost trade-off that must be made in managing waiting line situations?

The central problem in virtually every waiting line situation is a trade-off decision balancing the costs of adding services with the costs of waiting. Reducing waiting time costs money but raises customer satisfaction and throughput

Being busy does not mean real work

Thomas Edison

Explain the need for time fences in the master production schedule

Time Fence is a position in time. Where various limitations or changes in operating procedures take place. TF are selected period during which the master scheduler is permitted to make changes. The purpose of TF is to control the flow by the production system. Changes that are far away from the planning horizon can create little or no cost or divide the manufacturing. TF are designed to help the decision making process. Frozen- changes to production plan not allowed Slushy-limited changes to production plan allowed Liquid- any changes to the production plan allowed