QDC1

Identify the uses of control charts.

A time-ordered plot of sample statistics, used to distinguish between random and nonrandom variability.

Evaluate situations to determine if the process variation is acceptable or unacceptable

A traditional way of interpreting such a specification is that any part that falls within the allowed range is equally good, whereas any part falling outside the range is totally bad. -Are the variations random? If nonrandom variations are present, the process is considered to be unstable. Corrective action will need to be taken to improve the process by eliminating the causes of nonrandomness and achieve a stable process. -Given a stable process, is the inherent variability of process output within a range that conforms to performance criteria? This involves assessment of a process's capability to meet standards. If a process is not capable, this situation will need to be addressed.

Sequence the steps for selecting a production site.

- Decide on criteria for evaluating locations - Identify important factors - Develop location alternatives - Evaluate alternatives - Make a selection

Identify strategies for developing aggregate plans that bridge strategic planning and short-range scheduling.

*Production lot size *Order Quantities *Machine loading *Job assignments *Job sequencing *Work schedules

Describe the basic steps in problem solving

- Define the problem and establish an improvement goal. - Develop performance measures and collect data. - Analyze the problem - Generate potential solutions - Choose a solution - Implement the solution - Monitor the solution to see if it accomplishes the goal

Identify approaches used to match supply and demand.

- Aggregate planning, capacity planning • Smooth the demand fluctuations by shifting demand to match existing supply • Adjust capacity to match fluctuation in demand

Describe the five bases of power.

- COERCIVE: This type of power is based upon the idea of coercion. The main idea behind this concept is that someone is forced to do something that he/she does not desire to do. The main goal of coercion is compliance. - REWARD: Having the ability to grant another person things which that person desires or to remove or decrease things the person does not desire. Present subordinates with outcomes that the subordinate regards in a positive manner. This type of power is based on the idea that we as a society are more prone to do things and to do them well when we are getting something out of it. - LEGITIMATE: Ability to administer to another certain feelings of obligation or the notion of responsibility - REFERENT: Holding the ability to administer to another a sense of personal acceptance or personal approval - EXPERT: Ability to administer to another information, knowledge or expertise - INFORMATIONAL: Based on the potential to utilize information. Providing rational arguments, using information to persuade others, using facts and manipulating information can create a power base.

Interpret charts used in statistical process control (SPC).

- Control Chart - A time-ordered plot of sample statistics, used to distinguish between random and nonrandom variability. - Control Limits - The dividing lines between random and nonrandom deviations from the mean of the distribution. - Type I Error - Concluding a process is not in control when it actually is. - Type II Error - Concluding a process is in control when it is not. - Variables - Generate data that are measured. - Attributes - Generate data that are counted. - Mean Control Chart - Control chart used to monitor the central tendency of a process. - Range Control Chart - Control chart used to monitor process dispersion. - p-Chart - Control chart for attributes, used to monitor the proportion of defective items in a process. - c-Chart - Control chart for attributes, used to monitor the number of defects per unit.

Recognize the process required to logically analyze and solve a problem.

- DMAIC- - Define problem: one problem at a time - Measure defects: facts and data measured - Analyze data: find root cause - Improve process: develop a solution - Control process: improvements survive • Most models of problem solving and decision making include at least four phases. o Input phase in which a problem is perceived and an attempt is made to understand the situation or problem o Processing phase in which alternatives are generated and evaluated and a solution is selected o Output phase which includes planning for and implementing the solution o Review phase in which the solution is evaluated and modifications are made, if necessary.

Identify decision styles. List some of the decision-making styles.

- Directive - Low tolerance for ambiguity and oriented toward task and technical concerns. - Analytical - Higher tolerance for ambiguity and is characterized by the tendency to overanalyze a situation. - Conceptual - High tolerance for ambiguity and tend to focus on the people or social aspects of a work situation. - Behavioral - Most people oriented. Work well with others and enjoy interactions in which opinions are openly exchanged. - Unilateral or directive - The one with all the relevant information and responsibility - Consultative - Fairly confident of decision but will find value in reaction and feedback prior to implementation - Democratic - Okay with all options available. Used when one narrows down the field of alternatives for consideration - Consensus - Want high quality input and commitment with follow-up from group - Delegation - Used to increase efficiency and maximize the contribution of every team member. One uses when one doesn't spend time on that level of decision

Identify issues related to managing different types of inventory within an organization.

- Failure of technology in (Kanban) system, excessive inventory, limited inventory, human errors - Inventory management uses Distribution Requirements Planning (DRP) to determine inventory needs for all levels of distribution. • Raw materials and purchased parts. o Having sufficient raw materials and purchased parts to provide material to production to enable continued work-in-progress. • Partially completed goods, called work-in-process (WIP). o Ensuring that there is sufficient WIP to insure steady flow of finished product to finished-goods inventories, both manufacturing firms and retail stores. • Finished-goods inventories (manufacturing firms) or merchandise (retail stores). o Insuring that the retail stock is able to meet demand. • Tools and supplies. o Tools and supplies must be purchased and refurbished on a constant schedule that allows for uninterrupted production. • Maintenance and repairs (MRO) inventory. o Production machinery must be maintained and repaired in anticipation of problems. • Goods-in-transit to warehouses, distributors, or customers (pipeline inventory). o Pipeline inventory must be carefully maintained to insure the proper inventory levels at retail outlets.

Given the results of an audit, identify appropriate follow-up actions.

- Follow-up reviews should be performed on an issue-by-issue basis, so that corrective actions can be implemented. - Continuously improve and measure improvements.

List the four steps in the rational model of decision making.

- Identify the problem - Generate alternative solutions - Select a solution - Implement and evaluate the solution

Describe the basic steps in problem solving.

- Identifying the Problem: While it may seem like an obvious step, identifying the problem is not always as simple as it sounds. In some cases, people might mistakenly identify the wrong source of a problem, which will make attempts to solve it inefficient or even useless. - Defining the Problem: After the problem has been identified, it is important to fully define the problem so that it can be solved. - Forming a Strategy: The next step is to develop a strategy to solve the problem. The approach used will vary depending upon the situation and the individual's unique preferences. - Organizing Information: Before coming up with a solution, we need to first organize the available information. What do we know about the problem? What do we not know? The more information that is available, the better prepared we will be to come up with an accurate solution. - Allocating Resources: Of course, we don't always have unlimited money, time and other resources to solve a problem. Before you begin to solve a problem, you need to determine how high priority it is. If it is an important problem, it is probably worth allocating more resources to solving it. If, however, it is a fairly unimportant problem, then you do not want to spend too much of your available resources into coming up with a solution. - Monitoring Progress: Effective problem-solvers tend to monitor their progress as they work towards a solution. If they are not making good progress toward reaching their goal, they will reevaluate their approach or look for new strategies. - Evaluating the Results: After a solution has been reached, it is important to evaluate the results to determine if it is the best possible solution to the problem. This evaluation might be immediate, such as checking the results of a math problem to ensure the answer is correct, or it can be delayed, such as evaluating the success of a therapy program after several months of treatment.

Describe what an organization can do to avoid discouraging productive creativity and to provide a workplace environment that will help increase creativity.

- Keep employees motivated - Effectively manage the stages of creativity - Foster a positive and supportive work environment

Compare and contrast personalized power and socialized power and the effect of each on decision making.

- Personalized Power: Directed at helping oneself. Motivated to establish power in selfish ways by dominating others. - Socialized Power: Directed at helping others. Strong self-control, motivated to establish power in socially acceptable ways, such as influencing others to take up a cause.

Identify the characteristics of a customer-oriented organization.

- Surveys customers on expectations - Informs and involves everyone within the organization - Uses the information to improve products or services • Customer focus starts with Management commitment • Identify customers and potential customers consistent with one's strategy • Understand Customers' wants and needs and how one meets or exceeds them • Categorize customers and potential customers • Obtain regular customer feedback, and implement a continuous improvement process • Measure and reward success • Management spends considerable time with customers and communicates commitment to customers throughout the organization • They know who their customers are, what their customers want now and in the future, and how they are going to provide that • Their strategies, plans, and processes are aligned with their customers' • Customer satisfaction is an important metric, which is tracked, improvement goals set and success rewarded.

Describe methods for generating ideas and for identifying solution alternatives.

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List some of the key concepts for meeting the challenges encountered during implementation of decisions or problem solutions

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Identify the types of costs associated with quality.

-Appraisal Costs - Costs related to measuring, evaluating, and auditing materials, parts, products, and services to assess conformance with quality standards. Such as - Inspection equipment, testing, labs, inspectors, and the interruption of production to take samples. -Prevention Costs - Costs related to reducing the potential for quality problems. Such as - Quality improvement programs, training, monitoring, data collection and analysis, and design costs. -Internal Failure Costs - Costs related to defective products or services before they are delivered to customers. Such as - Rework costs, problem solving, material and product losses, scrap, and downtime. -External Failure Costs - Costs related to delivering substandard products or services to customers. Such as - Returned goods, reworking costs, warranty costs, loss of goodwill, liability claims, and penalties.

Sequence the steps for developing a quality management system.

-Clarify Vision, Mission, and Values -Identify Critical Success Factors (CSF) -Develop Measures and Metrics to Track CSF Data -Identify Key Customer Group -Solicit Customer Feedback -Develop Survey Tools -Survey Each Customer Group -Develop Improvement Plan -Resurvey -Monitor CSF -Incorporate Satisfaction Data into Marketing Plan -Technology

Sequence the steps to receive quality certification through the International Organization for Standards (ISO).

-Get top management commitment -Train personnel -Prepare Quality Policy Manual -Prepare Operating Procedures -Hold internal audit -Select registrar -Go through registration process -Obtain ISO 9000 registration

Identify the issues management faces when implementing quality and incorporating improvements into daily operations.

-Lack of a company-wide definition of quality: Efforts are not coordinated; people are working at cross-purposes, addressing different issues, and using different measures of success. -Lack of a strategic plan for change: Without such a plan the chance of success is lessened and the need to address strategic implications of change is ignored. -Lack of a customer focus: Without a customer focus, there is a risk of customer dissatisfaction. -Poor intra-organizational communication: The left hand doesn't know what the right hand is doing; frustration, waste, and confusion ensue. -Lack of employee empowerment: Not empowering employees gives the impression of not trusting employees to fix problems, adds red tape, and delays solutions. -View of quality as a "quick fix": Quality needs to be a long-term, continuing effort. -Emphasis on short-term financial results: "Duct-Tape" solutions often treat symptoms; spend a little now, or a lot more later. -Inordinate presence of internal politics and "turf" issues: These can sap the energy of an organization and derail the best of ideas. -Lack of strong motivation: Managers need to make sure employees are motivated. -Lack of time to devote to quality initiatives: Don't add more work without adding additional resources. -Lack of leadership: Managers need to be leaders. -Inadequate resources -Lack of employee participation -Resistance -Lack of or poor training -Lack of definition of quality

Identify procedures that lead to process improvement.

-Map the process -Analyze the process -Redesign the process -PDSA (Plan, Do, Study, Act)

Given the necessary data, calculate the costs of customer dissatisfaction.

-Sigma Level Calculation: -# of units of output -# of defects for the # of units -# of defects / # of units being measured = DPU -DPU x 1 million = DPMU -Look up DPMU in sigma table -If the number of defects exceeds the acceptable amount of defects determined by customers, the customer is dissatisfied. If the number of defects is less than the acceptable amount of defects or there are no defects, the customer is satisfied.

Identify some techniques for reducing or overcoming decision-making biases and barriers.

1 | Framing the problem or the decision to be made—Frames are mental models we use to explain our understanding of the situation in question. They involve making assumptions which can be affected by our cognitive biases. 2 | Gathering information—The second step, gathering information, can help overcome our cognitive biases, provided we do not fall prey to biases such as the recency effect. 3 | Coming to conclusions—The third step is using this information to come to conclusions that determine the decision we make. 4 | Learning from experience—The fourth step is later assessing the results of our decision and learning from the experience so that any errors made are not repeated in the future.

Techniques for reducing or overcoming decision-making biases and barriers.

1 | Understand the problem (Bazerman and Moore note that many go into a situation without thoroughly understanding the problem). 2 | Identify the important criteria that must be considered in making a decision. 3 | Determine the relative importance of the criteria. 4 | Develop alternative solutions to the problem. 5 | Rate each alternative solution on how well it satisfies each of the criteria developed in Step 2 (Bazerman and Moore note that this is usually the most difficult part of the decision-making process). 6 | Finally, determine which alternative solution is the best and implement it.

Identify the 8 key principles of a quality management system.

1. Customer focused organization-Organizations depend on their customers and therefore should understand current and future customer needs, should meet customer requirements and strive to exceed customer expectations 2. Leadership-Leaders establish unity of purpose and direction. They should create and maintain the internal environment in which people can become fully involved in achieving the organization's objectives 3. Involvement of people-People at all levels are the essence of an organization and their full involvement enables their abilities to be used for the organization's benefit. 4. Process approach-A desired result is achieved more efficiently when activities and related resources are managed as a process. 5. System approach to management-System management that helps in identifying, understanding and managing a system of interrelated processes as a system contributes to the organization's effectiveness and efficiency in achieving its objectives. 6. Continual improvement-Continual improvement of the organization's overall performance should be a permanent objective of the organization. 7. Factual approach to decision making-Effective decisions are based on the analysis of data and information. 8. Mutually beneficial supplier relationships-An organization and its suppliers are interdependent and a mutually beneficial relationship enhances the ability of both to create value.

Recognize the skills required to be an effective problem solver.

A. Gain trust from colleagues more often B. Avoiding unforeseen complications C. Saving time because of wise decision making D. Implement with reduced uncertainty E. Demonstrate rationale behind decision F. Not allowing biases to taint decision G. Examining timing means considering when/when not to implement change H. Focusing on the future means contemplating decisions' potential advantages I. Considering decision linkages means making choices that add value to other departments

Compare and contrast the advantages and disadvantages of individual decision making and group or team decision making.

Advantages 1. Greater pool of knowledge: A group can bring much more information and experience to bear on a decision or problem. 2. Different perspectives: Individuals with varied experience and interests help the group see decision situations and problems from different angles. 3. Greater comprehension: Those who personally experience the give-and-take of group discussion about alternative course of action tend to understand the rationale behind the final decision. 4. Increased acceptance: Those who play an active role in group decision making and problem solving tend to view the outcome as "ours" rather than "theirs". 5. Training ground: Less experienced participants in group action learn how to cope with group dynamics by actually being involved. Disadvantages 1. Social pressure: Unwillingness to "rock the boat" and pressure to conform may combine to stifle the creativity of individual contributors. 2. Domination by a vocal few: Sometimes the quality of group action is reduced when the group gives in to those who talk the loudest and longest. 3. Logrolling: Political wheeling and dealing can displace sound thinking when an individual's pet project or vested interest is at stake. 4. Goal displacement: Sometimes secondary considerations such as winning an argument, making a point, or getting back at a rival displace the primary task of making a sound decision or solving a problem. 5. Groupthink: Sometimes cohesive in-groups let the desire for unanimity override sound judgment when generating and evaluating alternative course of action.

Recognize the point at which costs associated with improvement are not warranted.

Costs associated with improvement are not warranted if costs of quality improvement exceed production costs.

Identify different types of problem solvers.

DIRECTIVE: People with a directive style have a low tolerance for ambiguity and are oriented toward task and technical concerns when making decisions. They are efficient, logical, practical, and systematic in their approach to solving problems. People with this style are action oriented and decisive and like to focus on facts. In their pursuit of speed and results, however, these individuals tend to be autocratic, exercise power and control, and focus on the short run. ANALYTICAL: This style has a much higher tolerance for ambiguity and is characterized by the tendency to overanalyze a situation. People with this style like to consider more information and alternatives than do directives. Analytic individuals are careful decision makers who take longer to make decisions but who also respond well to new or uncertain situations. They can often be autocratic. CONCEPTUAL: People with a conceptual style have a high tolerance for ambiguity and tend to focus on the people or social aspects of a work situation. They take a broad perspective to problem solving and like to consider many options and future possibilities. Conceptual types adopt a long-term perspective and rely on intuition and discussions with others to acquire information. They also are willing to take risks and are good at finding creative solutions to problems. On the downside, however, a conceptual style can foster an idealistic and indecisive approach to decision making. BEHAVIORAL: This style is the most people oriented of the four styles. People with this style work well with others and enjoy social interactions in which opinions are openly exchanged. Behavioral types are supportive, receptive to suggestions, show warmth, and prefer verbal to written information. Although they like to hold meetings, people with this style have a tendency to avoid conflict and to be too concerned about others. This can lead behavioral types to adopt a wishy-washy approach to decision making and to have a hard time saying no to others and to have difficulty making difficult decisions. COMPREHENSIVE: considers decisions from multiple perspectives EMOTIONAL: uses inner motivations and feelings to make decisions REFLEXIVE: makes choices according to fight-or-flight response

Identify the guidelines for communicating solutions to employees affected by the solution.

Define individual roles, answer all questions, provide proper training

Identify criteria and guidelines for evaluating problem responses.

Define the problem, define the solution, implement solution, define alternatives, measure effectiveness of implementation, continuously improve

Identify the challenges associated with implementing a solution to a problem.

Employee resistance, training, total organizational cooperation

Identify the tools used for capacity planning.

Estimate future capacity requirements, evaluate existing capacity and facilities to identify gaps, identify alternatives for meeting requirements, conduct financial analysis, assess key quantitative issues, select the best alternative for the long term process, implement alternative chosen, monitor results

Identify the uses of functional flowcharts.

Functional flowcharts are diagrams of steps in a process. As a problem-solving tool, it can help investigators in identifying possible points in a process where problems occur.

Identify the characteristics, uses, advantages/disadvantages, and criteria for team decision-making.

Group decision making is advantageous because it allows different perspectives into the decision making process as well as it provides information a single decision maker may not have foreseen. If groupthink (a group with equal power where everyone has a chance to participate) is not achieved, group decision making can be disadvantageous. Nominal group technique, anonymously voting in groups can set the stage to avoid such issues.

Identify economic factors that apply to aggregate planning.

Inventories, overtime, part-time workers, subcontracting, and back-orders

List some of the decision-making biases and barriers to effective decision making or problem solving.

Judgmental heuristics - Rules of thumb or shortcuts that people use to reduce information-processing demands. 1. Availability heuristic - Represents a decision maker's tendency to base decisions on information that is readily available in memory. 2. Representativeness heuristic - Used when people estimate the probability of an event occurring. 3. Confirmation bias - Subconsciously decide something before investigating why it is the right decision. Seek information that supports decision while discounting information that does not. 4. Anchoring bias - Occurs when decision makers are influenced by the first information received about a decision, even if it is irrelevant. 5. Overconfidence bias - Relates to our tendency to be overconfident about estimates or forecasts. 6. Hindsight bias - Occurs when knowledge of an outcome influences our belief about the probability that we could have predicted the outcome earlier. 7. Framing bias - Relates to the manner in which a question is posed. The tendency to consider risks about gains differently than risks pertaining to losses. 8. Escalation of commitment bias - Refers to the tendency to stick to an ineffective course of action when it is unlikely that the bad situation can be reversed.

Identify issues that impact facility location and design.

Location criteria can depend on where a business is in the supply chain. For instance, at the retail end of a chain, site selection tends to focus more on accessibility, consumer demographics (population density, age distribution, average buyer income), traffic patterns, and local customs. Businesses at the beginning of a supply chain, if they are involved in supplying raw materials, are often located near the source of the raw materials. Businesses in the middle of the chain may locate near suppliers or near their markets, depending on a variety of circumstances. For example, businesses involved in storing and distributing goods often choose a central location to minimize distribution costs. Frequency of order, number and width of aisles, rail and/or truck loading and unloading

Recognize the practices employed by the International Organization for Standards (ISO).

On-site audits, quality document review, and recertification

Identify the ways power, authority, responsibility, and accountability influence decision making.

Power, authority, responsibility, and accountability all influence decision making. When one person is asked to decide on a new process that will affect an entire organization, but that person is the only one with responsibility in the process, he/she is likely to survey employees, but ultimately, sense that person will take the blow or the credit, they will decide on the process individually. For instance, group members who possess power and authority, such as a CEO, can be intimidating, regardless of interpersonal style, simply by being present in the room

Describe the responsibilities that rest with team members.

Team members must have technical knowledge of the problem to be solved, be adaptable, and have a good attitude. • Champion's role o Clarify charter, process boundaries and team objectives to team. o Coordinate with required supervisors for availability of personnel o Serve as team's point of contact with quality council or upper management for charter negotiations. o Provide team with motivation and required resources. o Lay groundwork for gaining approval by upper management to implement any team recommendations. • Team Leader's Role o Serve as the point of contact with Champion regarding charter negotiations, team progress, reporting, resource requests, etc. o Serve as team's representative to outside organizations. o Work closely with facilitators to see that all reporting requirements and team objectives are fulfilled. o Learn and demonstrate effective project team leadership. • Team Member's Role o Contribute process knowledge and expertise. o Help identify appropriate process metrics and collect, chart and analyze process data. o Provide ideas and creative input to solutions and process improvements. o Support team members in team actions, preparation and delivery of presentation to Champion and quality council. • Facilitator's Role o Organize agenda and team activities to achieve desired team improvement objectives. o Make sure team members conduct themselves in a manner consistent with the rules they have adopted. o Provide basic instruction and hands-on learning approach in improvement principles and techniques. o Provide objective third-party input and challenges to team decisions, conclusions and recommendations. o Serve as a technical resource to the improvement process. o Encourage the transfer of a working improvement capability to the organization via the participating team members

Identify the role of International Organization for Standards (ISO).

The International Organization for Standardization (ISO) promotes worldwide standards for the improvement of quality, productivity, and operating efficiency through a series of standards and guidelines. It was created in 1947 to improve international communication and trade. Used by industrial and business organizations, regulatory agencies, governments, and trade organizations, the standards have important economic and social benefits.

Describe some techniques for reducing or overcoming decision-making biases and barriers.

We must become 1 | more aware of these biases. We must also make our colleagues with whom we work aware of them as well. 2 | We can review our own past decisions to determine if we are particularly susceptible to some of these biases. 3 | We can get the input of unbiased experts—e.g., consultants not emotionally invested in the decision—before making that decision. 4 | We must recognize that our biases are often rooted in human nature and may influence decisions despite our efforts. Therefore, we should get rapid feedback on the effectiveness of our decisions so we don't repeat mistakes and can change poor decisions before they become too costly.

Identify the uses of histograms.

• A chart that shows an empirical frequency distribution. • Provides a sense of the distribution of observed values.

Identify the uses of other types of graphical charts.

• Affinity diagrams are used to help define and prioritize a large amount of information, discover connections between ideas, and brainstorm root causes and solutions. • Mean and range charts are used to monitor variables. • A p-chart is used to monitor the proportion of defective items generated by a process • A c-chart is used to control the number of occurrences per unit.

Identify the process for establishing a process improvement team.

• Assemble a team that is knowledgeable about the process and diverse in their think styles. The team should be comprised of process experts, but include representation for any relevant upstream or downstream suppliers and customers. • Appoint a team leader. The team leader should be familiar with the process and experienced in managing projects and meetings. • Restrict the team size to a manageable number. A team of more than 7 o 8 members may limit the ability of the individual participation. • Set up a meeting time that is convenient for all. • Set up ground rules in the first meeting. Let everyone know what the expectations are for attendance, participation and time requirements. • Appoint a team reorder/timekeeper. Do not underestimate the important of this position. Good ideas can be lost due to their not being recorded.

Identify the tools that are used for evaluating potential locations.

• Center of gravity method • Factor rating • Geographic information system • Locational cost-profit-volume analysis • Microfactory

Identify the key elements of total quality management.

• Continuous improvement • Competitive Benchmarking • Employee Empowerment • Team Approach • Decisions based on facts rather than opinion • Knowledge of tools • Supplier Quality • Champion • Quality at the Source

Identify the key principles that guided the development of International Organization for Standards

• Customer Focus • Leadership • Involvement of people • Process approach • System approach to management • Continual improvement • Use of a factual approach to decision making • Mutually beneficial supplier relationships.

Identify the types of graphical charts used in operations management.

• Flow chart - A diagram of the steps in a process. • Check sheet - A tool for recording and organizing data to identify a problem. • Histogram - A chart that shows an empirical frequency distribution. • Pareto chart - A diagram that arranges categories from highest to lowest frequency of occurrence. • Scatter diagram - A graph that shows the degree and direction of relationship between two variables. • Control chart - A statistical chart of time-ordered values of a sample statistic (e.g. sample means). • Cause and effect diagram - A diagram used to organize a search for the cause(s) of a problem; also known as a fishbone diagram.

Identify the tools used in project management.

• Gantt chart • Logic network • PERT chart • Product Breakdown Structure (PBS) • Work Breakdown Structure (WBS)

Identify barriers to solving problems and strategies for overcoming them.

• Groups were less efficient than individuals. It thus is important to consider time constraints when determining whether to involve groups in decision- making. • Groups were more confident about their judgments and choices than individuals. Because group confidence is not a surrogate for group decision quality, this overconfidence can fuel groupthink and a resistance to consider alternative solutions proposed by individuals outside the group. • Group size affected decision outcomes. Decision quality was negatively related to group size. • Decision-making accuracy was higher when (a) groups knew a great deal about the issues at hand and (b) group leaders possessed the ability to effectively evaluate the group members' opinions and judgments. Groups need to give more weight to relevant and accurate judgments while downplaying irrelevant or inaccurate judgments made by its members. • The composition of a group affects its decision-making processes and ultimately performance. For example, groups of familiar people are more likely to make better decisions when members share a lot of unique information. In contrast, unacquainted group members should outperform groups of friends when most group members possess common knowledge.

Recognize appropriate goals of process improvement teams.

• Increasing customer satisfaction • Achieving higher quality • Reducing waste • Reducing costs • Increasing productivity • Reducing processing time.

Differentiate between the types of International Organization for Standards (ISO) audits.

• Internal audit (first party audit), to ensure implementing, maintaining and improvement of the system audited. • Customer audit (second party audit), to evaluate the suppliers' performance and compliance for standards. • External audit (third party audit), to ensure implementing and documenting according to standards.

Recognize the losses resulting from process variation.

• Loss of customers • Loss of employees • Loss of market share • Liability claims • Decrease in productivity • Increase in costs

Identify appropriate conditions and applications of decision-making tools.

• Objectives must first be established • Objectives must be classified and placed in order of importance • Alternative actions must be developed • The alternative must be evaluated against all the objectives • The alternative that is able to achieve all the objectives is the tentative decision • The tentative decision is evaluated for more possible consequences • The decisive actions are taken, and additional actions are taken to prevent any adverse consequences from becoming problems and starting both systems (problem analysis and decision making) all over again • There are steps that are generally followed that result in a decision model that can be used to determine an optimal production plan. • In a situation featuring conflict, role-playing is helpful for predicting decisions to be made by involved parties.

List the activities that must be carried out to complete each phase in the audit process

• Planning Phase o During this phase, audit objectives and scope are developed, and management is notified of the planned audit. • Organizing Phase o During the organizing phase, the assigned auditor organizes the audit and prepares detailed plans. Also, the assigned auditor develops the preliminary audit program, prepares administrative papers, prepares an agenda for the opening conference, and conducts the opening conference. • Preliminary Audit Phase o The preliminary phase begins upon the conclusion of the opening conference and ends with the approval of the audit program for conducting the audit. • Conducting Phase o The conducting phase of the audit begins with the approval of the audit program and ends with the closing conference. • Summarizing Phase o The summarizing phase begins upon completion of the closing conference and ends when the final report is issued.

Describe the phases in the auditing process.

• Planning Phase • Organizing Phase • Preliminary Audit Phase • Conducting Phase • Summarizing Phase

Explain the characteristics and activities associated with audit planning.

• Preliminary risk assessment • Preliminary Materiality decisions • Preliminary analytical procedures • Audit Programs

Identify the variables that influence aggregate planning.

• Price • Advertising • Product mix

Identify issues to consider when developing a layout appropriate for an organization's operations.

• Process selection choices often have strategic implications for organizations. They can affect cost, quality, productivity, customer satisfaction, and competitive advantage. Process types include job shop, batch processing, repetitive processing, continuous processing, and projects. Process type determines how work is organized, and it has implications for the entire organization and its supply chain. Process type and layout are closely related. • Layout decisions are an important aspect of the design of operations systems, affecting operating costs and efficiency. Layout decisions are often closely related to process selection decisions. • Product layouts are geared to high-volume output of standardized items. Workers and equipment are arranged according to the technological sequence required by the product or service involved. Emphasis in design is on workflow through the system, and specialized processing and handling equipment is often used. Product layouts are highly vulnerable to breakdowns. Preventive maintenance is used to reduce the occurrence of breakdowns. • Process layouts group similar activities into departments or other work centers. These systems can handle a wide range of processing requirements and are less susceptible to breakdowns. However, the variety of processing requirements necessitates continual routing and scheduling and the use of variable-path material-handling equipment. The rate of output is generally much lower than that of product layouts. • Fixed-position layouts are used when size, fragility, cost, or other factors make it undesirable or impractical to move a product through a system. Instead, workers, equipment, and materials are brought to the product. • The main design efforts in product layout development focus on dividing up the work required producing a product or service into a series of tasks that are as nearly equal as possible. The goal is to achieve a high degree of utilization of labor and equipment. In process layout, design efforts often focus on the relative positioning of departments to minimize transportation costs or to meet other requirements concerning the proximity of certain department pairs. • The large number of possible alternatives to layout problems prevents an examination of each one. Instead, heuristic rules guide discovery of alternatives. The solutions thus obtained are usually satisfactory although not necessarily optimal. Computer packages are available to reduce the effort required to obtain solutions to layout problems, but these too rely largely on heuristic methods.

Identify qualitative and quantitative aspects associated with designing

• Quantitative Aspects o Surveys/Questionnaires o Pre/Post Tests o Existing Databases o Statistical Analysis • Qualitative Aspects o Observations o Interviews o Focus Groups o Non-statistical

Recognize strategies to overcome barriers to creative thinking.

• Remove self-imposed barriers • Think outside the box • Think of more than one solution or answer to a problem • Allow non-conformity • Challenge the obvious • Hold off implementation of solution • Remove fear of the foolish • Remove cynicism and negativity

Identify issues that influence the scheduling function

• Run size of jobs • Time of jobs • Sequence in which jobs should be processed

Identify conditions that encourage creative thinking.

• Solid foundation in the subject • Open-ended and flexible projects • Time to create • Freedom to experiment • Reward new ideas • Remove disincentive of fear of failure • Free-wheeling encouraged • Avoid over specialization

Identify the uses of run charts.

• Used to track the values of a variable over time. • Ease of construction • Ease of interpretation.