SCM 303 Exam 2

True or False: Even small improvements often need large investments of capital.

False

Identify a scheduling approach aimed at synchronizing the output rate with the rate of customer demand.

TAKT time flow balancing

True or False: Processes are the means by which customers' needs are satisfied.

True

True or false: The essential goal of SPC (statistical process control) is to put controls in place that help ensure the quality of production and give quick notice when unusual events occur that might lead to product or service defects.

True

______ is defined as the percentage of process capacity that is actually used.

Utilization

The constraining activity in a process that limits the overall output is called a ______.

bottleneck

Identify the true statements about the major categories of costs.

- A defect found in later stages of a supply chain is much more costly than a defect found in earlier stages. -Failure costs include both the internal costs of defects found inside a company and the external costs of defects found by customers. -In later stages of a supply chain, there is sometimes less ability to rework the product.

Rank the members of a TQM organizational view in order of support each level receives, where the level receiving the most support is placed on top and the level receiving the least support is placed at the bottom.

- Employees - Lower-level management and frontline supervisors -Middle management -Top management

Match the limiting resource with its time frame with the type of capacity change required.

- Equipment, space - short term --> Rental or leasing - Low-skilled labor - short term --> hiring part time or overtime -Physical plant - long term --> New building, outsourcing

Identify the symptoms of an overproduction waste.

- Extra inventory - Complex information management - Utilization of excessive floor space -Unbalanced material flow

Identify the true statements about the quality problems that arise in a total quality management.

- In the total quality management, problem prevention is emphasized than fixing problems after they occur. - Problem solving is most effective when decisions are based on the analysis of actual data. -Quality problems are often only solvable through the involvement of suppliers. -It is almost always efficient to find a remedy to problems at the earliest stages in the supply chain.

Identify the true statements about Kaizen Events.

- In this process, cross-functional team members document a process, assess the performance, and develop and document the implemented process changes. -They are completed in less than a week.

Identify the methods by which lean systems can lower the break-even production quantity of a firm.

- Increase the contribution margin - Reducing fixed overhead costs

Identify the characteristics of a strategic capacity change.

- It includes large increases or decreases in capacity. -It takes long time to implement. - It requires changes to labor, equipment, and space.

Match the different focused factories with their respective description.

- Market-focused: supplying a range of products to customers with similar or complementary demand patterns and value propositions - Product-focused: Production of products that have similar technological processing requirements

Identify the statements that are true of maximum capacity.

- Maximum capacity is also known as design capacity. -Design capacity is an engineering assessment of maximum output, assuming continuous operation except for maintenance and repair time. -An assumption of maximum capacity is that all equipment and workers are fully operational for the maximum amount of available time. -Producing at a rate of maximum capacity can only be sustained for a short time.

Match the process activity with its associated resources that limit capacity.

- Operation: tools, labor, machine capacity, supplier capacity - Transportation: Pallets, carts, fork-lift trucks, trucks, trains, airplanes -Inspection: inspectors, inspection stations, gauges, robots, or machine-visions equipment -Delay: Space on the shop floor, bins, carts, racks

Identify the important connotations of total quality management.

- Quality management is a total and organization wide activity. - Quality improvement requires a total commitment from all employees. -A product's quality is ultimately determined by the customer's acceptance and use of the product.

Match the activities of a 5-S program in English with their corresponding Japanese words.

- Sort: Seiri - Straighten: Seiton - Scrub: Seiso - Systematize: Seiketsu - Standardize: Shitsuke

Identify the true statements about the application of lean systems within a firm.

- The lean approach requires tight coordination of marketing, sales, and operations to increase communication and decrease order processing lead times. -The design of training programs needs to be driven by lean objectives. -Self-motivated employees who have a strong interest in solving problems through process innovation must be hired.

Identify the four primary reasons for economies of scale in operations.

-Allocation of fixed costs -Equipment and construction costs -Lower cost for purchases -Learning curves or practice improves output volume as employees gain skill

Identify the prescriptions that the application of lean principles to supply chain relationships leads to.

-Buy to achieve the lowest total cost -Keep distances between partners short -Minimize the number of suppliers. -Work with suppliers and not against them. -Treat problems as a symptom and focus on the factors that contributed to the emergence of that problem.

Identify the three general strategies involved while determining when to change capacity relative to demand.

-Capacity lag strategy -Capacity lead strategy -Adding or removing capacity

Identify the views of a progressive quality management approach.

-Clear definition and recognition of the enlarged scope of decisions should be put forth to the frontline workers in a process. -Frontline workers must be given both the responsibility and the authority to make decisions. -Frontline workers must have the resources required to make quality improvements. -Frontline workers need to have the knowledge required to make good decisions. -The frontline workers in a progressive quality management approach must have primary ownership of operating processes. -Managers must support the frontline workers.

Match the type of wastes in product design with their respective causes.

-Complexity: Many different processes -Variability: Product specifications make it difficult to control processes on the factory floor. -Sensitivity: Product design results in a situation where the resulting product can be easily flawed or damaged during factory operations. -Danger: The use of a product design may unintentionally expose users or the environment to potentially dangerous impacts. -High skill: the product design requires processes or components that demand high degrees of training and experience.

Identify the factors that affect the success of total quality management.

-Crisis situation or compelling reason for change -Strong, charismatic leadership -Trust between labor and management

Match the steps of the DMAIC (define, measure, analyze, improve, and control) process with their respective objectives.

-Define: use inputs describing customer's needs and product functionality requirements to define critical-to-quality characteristics of a product. - Measure: Identify specific processes that create or influence critical-to-quality characteristics of a product and evaluate current levels of quality for each critical-to-quality characteristics. -Analyze: Perform data based study to uncover root causes of process variations that lead to critical-to-quality defects. -Improve: Design and implement process changes that reduce variability. -Control: Use monitoring and adjustment systems to ensure that process variations remain minimized.

Identify the parameters by which a particular process can be defined.

-Inputs/outputs/flows -Activities -Management policies -Process structure

Identify the true statements about ISO 9000.

-It provides essentially the same function for business process as financial accountants provide when they audit a company's financial transactions -It was initially developed by the International Organization for Standardization to facilitate international trade. -It is applicable to all forms of organizations, irrespective of size or product offerings. -Its essential purpose is to ensure that operating processes are well documented, consistently executes, monitored, and improved.

Identify the true statements about Kaizen Improvement.

-Kaizen is also known as Continuous Improvement -Pursuit of small improvements keeps people thinking about the process and its current operation -It states that the long-term success of an organization occurs only when everyone in the firm identifies and implements improvements every day.

Match the functional personnel with their respective decisions that impact the product quality

-Marketing managers: development of new product testing programs -Sales manager: interactions with customers -Product engineers: design of product prototyping procedures -Human resource managers: setting of compensation schemes and incentives

Identify the important principles that are used to achieve the objectives and principles of lean systems.

-Pursue perfection -Precisely specify value for each specific product -Make value flow without interruptions -Identify the value stream for each product -Let the customer pull value from the producer

Match the dimensions of product quality with their respective description for a tangible good.

-Reliability: length of time a product performs before it must be repaired. -Aesthetics: Subjective assessment of a product's look, feel, sound, taste, or smell. -Responsiveness: Competence of product support in terms of installation, information, maintenance, or repair. -Perceived quality: Subjective assessment based on image, advertising, brand names, reputation, or other information indirectly associated with the product's attributes.

Match the sections of ISO 9000:2008 certification structure with their respective description.

-Section 4, context of the organization: Understanding the needs and expectations of interested parties, determining the scope of the quality management system, and quality management system and its processes -Section 5, leadership: policy and organizational roles, responsibilities, and authorities -Section 6, planning: actions to address risks and opportunities, quality objectives and planning to achieve them, and planning of changes -Section 7, support: resources, competence, awareness, communication, and documented information -Section 8, operation: requirements for products and services, design and development of products and services, control of externally provided processes, products, and services, and production and service provision

Match the outputs with their respective business process.

-Supply management--> Order fulfillment, production schedules, goods and services -Innovation --> New products and new production technologies -Strategic planning --> Vision and long-term objectives and plans -Customer service --> Order entry, delivery commitments, resolve customer problems - Performance measurement --> performance variances, trends

Identify the lean systems tools that are used for operational scheduling control.

-TAKT time flow balancing -Kanban (pull) scheduling -Mixed model scheduling -Visual control Statistical process control -Setup reduction

Match the standards of ISO 9000 with the respective industry-specific interpretations of ISO 9000.

-TickIT: Information technology industry -AS9000: Aerospace manufacturers -ISO/TS 16949: American and European automotive manufacturers -TL 9000: Telecom consortium -ISO 13485: Medical Industry -ISO/IED 90003: COmputer Software -ISO/TS 29001: Petroleum, petrochemical, and natural gas industries

Match the different types of wastes with their respective definitions.

-Waste of overproduction: processing more units than necessary -Waste of waiting: resources wasted waiting for work -Processing waste: excessive or unnecessary operations -Waste from product defects: waste due to unnecessary scrap, rework, or correction -Waste of motion: unnecessary or excessive resource activity

Define appraisal costs.

Costs resulting from inspections used to assess quality levels.

Identify the steps involved in the Six Sigma approach.

Define, Measure, Analyze, Improve, and Control

The plan-do-check-act cycle is also known as the _________ _________.

Deming Wheel or Deming Cycle

______ is a design approach that balances customer requirements with the constraints and capabilities of the supporting manufacturing and service processes.

Design for Six Sigma

______ _____ is a set of internationally accepted standards for business quality management systems.

ISO 9000

Define process analysis/value stream mapping.

It is a graphical technique that helps managers understand material and information flows as a product makes its way through the process.

Define standard deviation.

It is a measure of the variability or dispersion of a population, data set, or distribution.

______ focuses on developing technological features of equipment and processes that automatically detect and flag problems.

Jidoka

________ is a scheduling system that builds output in response to actual customer demand.

Kanban scheduling

Identify the methods by which process managers define a process's structure.

Linking process activities, sequencing process activities, and positioning process activities.

________ _____________ is an empirically proven relationship that exists between flow time, inventory, and throughput.

Little's Law

___________ costs are associated with efforts to prevent product defects and associated failure and appraisal costs.

Prevention

A firm works a 40 hour week to process 4000 customers' orders, but processes only 50 orders per hour. The firm tries to bring up their output rate to 100 orders per hour to meet the customer demand. Which of the following does this scenario illustrate?

TAKT time flow balancing

_______ is a management program that seeks to improve the quality of process outputs by identifying and removing the cause of defects and variations in various processes.

Six Sigma

The _______ _________ __________ is the overall management system that strives to improve system performance by identifying, focusing, and managing constraints.

Theory of Constraints

______ time is the amount that an item spends waiting.

Wait

______ is the percentage of units successfully produced as a percentage of inputs.

Yield rate

The term _______ is also used to denote size or storage limits.

capacity

An inspection _____

checks or verifies the results of another activity.

Define external failure costs.

costs associated with quality features uncovered after products are delivered to customers

________ quality is a measure of how well a product's designed features match up to the requirements of a a given customer group.

design

A car manufacturing firm uses a special type of alloy to manufacture its car chassis. As a result of the process, environmental waste is produced. In this scenario, environmental waste is an example of ______.

unintended output

______ ________ makes current performance and potential problems immediately visually apparent.

visual control

Identify the different terms used for poke-yoka.

fail-safing and mistake proofing

_______ is an approach to work layout and scheduling that gathers in one location all of the equipment and work skills necessary to complete production of a family of similar products.

group technology

Level, mixed-model scheduling is also known as _____.

heijunka

The _____ ________ approach is a philosophy that emphasizes the minimization of the amount of all resources used in the various activities of an enterprise.

lean system

______ is the culture that is present in lean systems and that places a high value on respect for people in the system.

lean system culture

A _________ is a measure, a standard, and a consequence that work together to close the gap between what is valued by the customer and what is intended by the organization.

metric

A ____ is a system of structured activities that use resources to transform inputs into valuable outputs.

process

_______ is a management approach that establishes an organization wide focus on quality.

quality management

______ _____ is the process used to reduce setup and changeover times with the goal of making the output of smaller batches more efficient.

setup reduction

In lean systems, _______ is aimed at clarifying and documenting the steps in a process so that they are executed exactly the same way every time by every worker.

standardization

The principles that every process must be managed as a system and that performance measures are crucial to a process's success are the basic principles of the __________.

theory of constraints

_______ works to identify and prevent all possible equipment breakdowns.

total productive maintenance

_______ _______ ______ is an integrated management business strategy aimed at embedding awareness of quality in all organizational processes.

total quality management