SCM Chapter 8 (test 2)

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

a. Ford

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

a. Increasing batch sizes to take advantage of economies of scale

Malcolm Baldrige Award

- Stimulate firms to improve - Recognize firms for quality achievements - Establish guidelines so organizations can evaluate their improvement & provide guidance to others

Just-in-Time

Continuous reduction of waste

Yokoten

Sharing of best practices

Poka-Yoke

Error or mistake proofing

Lean Production (TPS) emphasizes...

- Reduction of waste - Continuous improvement - Synchronization of material flows within the organization - Channel integration: extending partnerships in the supply chain

LEAN Supply Chain Relationships

- Suppliers & customers work to remove waste, reduce cost, & improve quality & customer service - Lean Thinking includes delivering smaller quantities, more frequently, to point of use - Firms develop lean supply chain relationships with key customers. Mutual dependency & benefits occur among these partners. - Locate production or warehousing facilities close to key customers

Elements of Lean

- Waste Elimination - Lean Supply Chain Relationships - Lean Layouts - Inventory & Setup Time Reduction - Small Batch Production Scheduling - Continuous Improvement - Workforce Empowerment

Categories measured for Malcolm Baldrige Award:

1. Leadership 2. Strategic planning 3. Customer & market focus 4. Information & analysis 5. Human resource focus 6. Process management 7. Business Results

The Seven Wastes

1. Overproducing: Unnecessary production to maintain high utilization 2. Waiting: Excess idle machine & operator & inventory wait time 3. Transportation: Excess movement of materials & multiple handling 4. Overprocessing: Non-value adding manufacturing & other activities 5. Excess Inventory: Storage of excess inventory 6. Excess movement: Unnecessary movements of employees 7. Scrap & Rework: Scrap materials & rework due to poor quality

How many defects per million can Six Sigma tolerate?

3.4 defects per million observations

Producers Risk

A buyer rejects a shipment of good quality units because the sample quality level did not meet standards (type I error)

Six Sigma

A statistics-based decision-making framework designed to make significant quality improvements in value-adding processes Near quality perfection (the statistical likelihood of non- defects 99.99966% of the time)

The Malcolm Baldrige National Quality Award recognizes firms for their quality achievements but is only given to U.S. firms. a True b. False

A. True

When lean firms share their best practices with supply chain members, this is referred to as yokoten. a. True b. False

A. True

Lean production, JIT, and Six Sigma quality mean the same thing. A. True B. False

B. False

Consumers Risk

Buyer accepts a shipment of poor-quality units because the sample falsely provides a positive answer (type II error)

Kaizen

Continuous improvement approach to reduce process, delivery, & quality problems, such as machine breakdown problems, setup problems, & internal quality problems

Small Batch Scheduling

Drives cost down by: 1. Reducing purchased, works in progress, & finished goods inventories 2. Makes the firm more flexible to meet customer demand - Small production batches are accomplished with the use of kanbans - Kanbans generate demand for parts at all stages of production creating a "pull" system

Toyota Production System

Lean production: an operating philosophy of waste reduction & value enhancement & was originally created as Toyota Production System (TPS) by key Toyota executives

Six Sigma Origins

Pioneered by Motorola in 1987

Kanabn

Signal card and part of JIT

The Quick Response program, developed in the 1980's, was an offshoot of the following supply chain concept: a. Just-in-Time b. Kaisen c. Efficient Consumer Response d. Six Sigma

a. Just-in-Time

Which tool is useful for presenting data in an organized fashion, indicating process problems from most to least severe: a. Pareto Charts b. Check Sheets c. Fishbone Diagrams d. Cause-and-Effect Diagrams

a. Pareto Charts

Lean Layouts

are very visual (lines of visibility are unobstructed) with operators at one processing center able to monitor work at another

Calculate the inventory container size required given the following: Demand rate = 10 parts per hour, Safety stock required = 16%, Number of containers = 14, Time to cycle through entire system = 6 hours a. 4 parts b. 5 parts c. 3 parts d. 2 parts

b. 5 parts Step 1: 0.16 (10x6) = 9 Step 2: (10x6)x9/14 - round up

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

b. Keiretsu Networks

The following is a term that refers to error or mistake proofing: a. Muda b. Poka-yoke c. Kaizen d. Kanban

b. Poka-yoke

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

c. Crosby

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

c. Kanban System

Which person was a key figure in developing the Toyota Production System and also developed the concept of poka-yoke? a. Deming b. Toyoda c. Shingo d. Ohno

c. Shingo

Which of the following is an example of how lean programs can help to protect the environment? a. Using rubber from used tires in auto parts b. Batch size reduction to reduce plastics c. Parts made from recycled materials d. All of these choices are correct.

d. All of these choices are correct

An important outcome of statistical process control is: a. Firms can take corrective actions before process variabilities get out of control b. Firms can visually monitor process performance c. Firms can minimize total inventory cost d. Both "Firms can take corrective actions before process variabilities get out of control" & "Firms can visually monitor process performance" e. None of these choices are correct.

d. Both "Firms can take corrective actions before process variabilities get out of control" & "Firms can visually monitor process performance"

The Five-Ss refer to: a. Overspending habits b. Robust evaluation techniques c. Keiretsu relationships d. Industrial housekeeping

d. Industrial housekeeping

Managers must support Lean Production by...

providing subordinates with the skills, tools, time, & other necessary resources to identify problems & implement solutions

Kaizen Blitz

rapid improvement event or workshop, to find big improvements quickly

Muda

waste in all aspects of production