BCOR 360 Exam 2
What is the maximum output your process can consistently produce over a period of time under normal operating conditions. Inventory Capacity Hurdle Rate Infinite Loading None of the above
capacity
S&OP can help you smooth out the handoffs among different functions across your company. S&OP also helps you move from a traditional annual planning process to a _______ re-planning process. Pre-determined Current Continuous Marketing None of these
continuous
Which of the following process has the highest level of volume? Project Job Shop Batch Process Assembly Line Continuous Flow None of the above
continuous
By calculating ________________, you gain insight into the quality of your data and method. Cycle times Joint cost Forecast error Lead times, time sensitive None of the above
cycle times
A poka-yoke is: a. A visual cue to avoid errors b. A system that helps you identify specific improvement opportunities c. Mistake proofing d. All of the above e. Only a and c
d
To achieve quality at the source, you need to focus on which of the following? a. Prevention b. Personal responsibility c. Standardization d. All of the above e. Only b and c
d
Which of the following lean logistics practices has Coca-Cola implemented? a. Expanded capacity of delivery trucks b. Cross docking c. Increased inventory capacity without adding floor space d. All of the above e. None of the above
d
Under which circumstances would you use a qualitative forecast? a. Domain knowledge is critical b. Pertinent data is scarce c. You have access to qualified key informants d. All of the above e. Only a and b
d. all of the above
The Maximum output rate that a process can achieve under ideal conditions is what? Inventory management Design capacity Effective capacity Lost Production Jidoka None of the above
design capacity
In process mapping, the following denotes arrival into the process. Diamond Triangle Box Double arrow Oval
double arrow
"People" are what part of the process? a. Inputs b. Outputs c. Flows d. Resources e. both a & d
e
Once the process has been mapped, what might be part of your analysis? a. Move material from one location to another b. Use tools like 5S and eight waste to identify improvement opportunities c. Look for wasted efforts and time d. All of the above e. Only b and c
e
The 5S process helps support: a. Standard work b. A multi-functional workforce c. Minimized set-ups d. Continuous improvement e. All of the above f. Only a and d
e
The benefits of a cross-functional workforce include which of the following? a. Substitution when a worker is out b. Improved understanding of more processes by the workforce c. A sense of achievement by the multi-skilled workers d. A broader knowledge base for participating in Kaizen events e. All of the above f. Only a and c
e
The first step in the 5S process is important because a. It allows you to understand the resources available for the job b. It allows you to free up space by eliminating things that are not used on the job c. It creates a standard process d. All of the above e. Only a and b
e
To reduce costs, purchasing purchases large quantities of discounted items causing logistics to store the extra inventory, driving up logistics costs, is an example of what? a. Excess and obsolescence b. Silo mentality thinking c. Organizing by functions d. Fill rates by order e. Both b & c f. All of the above
e
Quantitative forecasts are data rather than experience driven.
false
The Toyota Production System was a copy of an older version of another Japanese car manufacturer production system.
false
There is a standard amount of inventory turns that is considered good, regardless of industry.
false
Value stream mapping is a very formal process that requires a great deal of training.
false
Having good data is critical to building accurate forecasts. But, data availability isn't sufficient. You need to choose the right _______________ to make the most of your data.
forecasting technique
You are a manager at Asda. You have been given the demand data for the past 10 weeks for swim rings for children. You decide to run three different types of forecasting methods on the data to see which gives you best forecast. What would your 3 period moving average forecast be for week 22? 1336 1375 1284 1468 None of the above
1284
Given the following forecast and demand information, what is the MAD? 12.54 15.05 4.60 14.15 None of the above
15.05
Which of the following are NOT part of the Process-Improvement Trio? Theory of Constraints Six Sigma ABC Classification Lean Management None of the above, they are all part of the Process-improvement Trio
ABC classification
Which of the Process Improvement Trio should be employed first? Lean Six sigma Theory of Constraints All of the above, you should employ them all at the same time You should only employ Lean and six sigma together
All of the above, you should employ them all at the same time
Which of the following is Step 1 of the three-step proven path to employing the Process Improvement Trio? Apply The theory of constraints to identify where you will get the biggest bang for your buck Employ six sigma to reduce process variation at the bottleneck and to control the process moving forward Implement lean techniques to reduce waste at the bottleneck None of the above
Apply The theory of constraints to identify where you will get the biggest bang for your buck
If your product is relatively new and your data is limited, your best option is to...
Either A or B (Look at sales history of similar products or use qualitative data)
By investing in prevention and appraisal costs, your real goas is what? Approved suppliers for doing business Understand and computerize the human thought process Identify and eliminate the causes of problems before they occur Refer to the lowest level of division for a process or a product None of the above
Identify and eliminate the causes of problems before they occur
Which of the following is Step 2 of the three-step proven path to employing the Process Improvement Trio? Apply the theory of constraints to identify where you will get the biggest bang for your buck Employ six sigma to reduce process variation at the bottleneck and to control the process moving forward Implement lean techniques to reduce waste at the bottleneck None of the above
Implement lean techniques to reduce waste at the bottleneck
Why is the concept of recipe important? Food is one of the biggest aspects of a culture. It defines when and how each step is performed while cooking and also the ingredients. Cooking for oneself saves a lot of money. Learning how to cook is one of the most important skills a person can have.
It defines when and how each step is performed while cooking and also the ingredients.
When measuring forecast error, which forecasting error expresses the forecast error as a percentage from the mean? ME MSE MAD MAPE
MAPE
What is the difference between design capacity and effective capacity? Components, raw materials, work in process, and finished goods vs. supplies required for the creation of goods and services Opportunity costs vs. shrinkage Inventory management vs. logistics planning Maximum output rate that a process can achieve under ideal conditions vs. output rate of a process during normal conditions None of the above
Maximum output rate that a process can achieve under ideal conditions vs. output rate of a process during normal conditions
The total-cost-of quality framework breaks out quality costs into which four categories Internal failure costs, appraisal costs, preventions costs, accreditation costs Prevention costs, appraisal costs, Internal failure costs, external failure costs Appraisal costs, external failure costs, accreditation costs, aggregate costs Accreditation costs, routing costs, external failure costs None of the above
Prevention costs, appraisal costs, Internal failure costs, external failure costs
The customer rules focuses on the idea that a. Don't have huge amount of inventory tying up assets that you have to sell-off b. Always getting better, adapting to external demands and employee insight c. Creates a positive work environment which reflects in employee longevity d. Stay up to date with the customer's changing tastes and demand patterns e. All of the above
Stay up to date with the customer's changing tastes and demand patterns
Almost every decision you make in business is based on a forecast.
True
In process mapping, each symbol denotes the following: a. That something has changed b. That something is waiting c. That a process is moving d. All of the above e. Only b & c
a
One of the scary things about implementing lean is: a. It requires management to give up some control b. It is really hard to implement for services c. It is usually more harmful for the environment d. All of the above are true e. Only a and b are true
a
The definition of Overproduction in the Eight Wastes refers to a. making more than the customer wants or more than you have demand for b. idle time when resources are not being used c. a product that is less than perfect d. not encouraging employee ideas or undermining their efforts e. both a and c
a
Which of the following are tools that you can use to identify improvements and opportunities in you newly mapped process? a. 5S and the eight wastes b. equipment positioning c. dynamic process control d. weighted factor model e. both a and c
a
Process management is the art and science of designing work to get non-repeatable tasks done efficiently and effectively.
false
To make CPFR successful, companies should engage in which of the following collaborative activities? Strategy & planning Demand & supply management Execution Analysis All of the above
all of the above
What does process mapping do for you? It helps you to confront the brutal facts It makes the brutal facts visible It helps you hold fact-based conversations It helps you to conduct a blameless autopsy All of the above None of the above
all of the above
Which of the following are discussed during the S&OP supply review meeting? How to prevent stockouts Manufacturing capacity Supply chain inventory Logistics/DC capacity All of the above
all of the above
Business forecasting is the process of using _____________, _____________, ____________, and experience to make predictions and respond to various business needs.
analytics, data, insights
Standard work best describes which of the following: a. Root cause analysis b. Implementing the same best practices around the organization c. Line balancing to meet the required TAKT time d. Implementing quality standards in the workplace e. None of the above
b
The 5S process is: a. A one-time approach for organizing your space b. A continuous improvement approach for getting organized and staying organized c. Something that few companies do in practice d. One step in the eight-waste process e. Only a and d are true
b
Which of the following is true about the company New Balance? a. It learned about lean when it moved its manufacturing operations to Japan b. It implemented lean in conjunction with keeping some manufacturing in the U.S. c. It implemented lean by moving all of its manufacturing overseas. d. All of the above are true e. None of the above are true
b
Every lean journey begins with: a. Employee training b. Keeping the customer in mind c. Elimination of waste d. Getting rid of excess inventory e. All of the above are great places to start!
b. keeping the customer in mind
Customizing basic models is an example of which process? Project Job Shop Batch Process Assembly Line Continuous Flow None of the above
batch
Which one of the following is NOT a process design? Job Process Bulk Process Line Process Continuous Process None of the above, they are all processes
bulk
Managers making decisions that help them achieve their short-term functional goals without taking into account other functions is called? a. Competitive advantage b. Continuous improvement c. Silo Mentality d. Demand-driven supply network e. Exception-based processing f. None of the above
c
TAKT time tells us: a. How many minutes of production time we have per day b. How many units we need to produce per day c. How frequently a finished unit need to come off the line to meet our demand d. That Germany rocks the manufacturing world e. Any of the above could be true in the right situation
c
The eighth waste is: a. Pride b. Defects c. Excess processing d. Waiting e. None of the above
c
The industry with the highest inventory turns listed below is: a. Dollar stores b. Grocery c. Fast food d. Beer e. Tobacco
c
What does the term "Kaizen" mean? a. Computer term for a general-purpose programming language b. Concept of adding an element of human judgment to automated equipment c. A short, focused, continuous improvement project that takes place on the production line. d. All of the above e. None of the above
c
Which of the following are among the five steps of the lean journey? a. Begin with the end in mind, Map the value stream, Flow the processes b. Identify customer value, Map the value stream, Train employees c. Identify customer value, Map the value stream, Flow the processes d. Flow the processes, Pull demand through the system, Act e. None of the above are correct
c
Value stream mapping should include: a. An accurate depiction of a process b. Quality performance statistics c. Total time in process d. The amount of time that value is added e. All of the above b. Only a and b
e
Which of the following is a definition of Quality? a. Conformance to specifications b. Whether or not a product or service lives up to customer expectations c. The act of making a group or individual responsible for certain activities or outcomes d. All of the above e. Only a and b
e
Which of the following statements about inventory are true? a. Inventory is a buffer b. Inventory helps you avoid dealing with problems c. Inventory may prevent you from understanding the true cause of problems d. Customers want you to have adequate inventory readily available for their needs e. All of the above are true f. Only a, b and c are true
e
Why do you need to put process mapping into your decision-making toolkit? a. To give everyone a better understanding of the process b. To ask questions c. To share ideas that help solve problems d. To get better solution e. All of the above f. Only a, c, and d
e
Which of the following are intangible benefits of collaborative planning? a. Quicker implementation of new ideas b. Less time for strategic planning c. More trust d. All of the above e. Only a and c
e. only a and c quicker implementation of new ideas , more trust
If you are using a simple-moving average and you want your forecast to ignore occasional noise in the data, which of the following is true? a. You want a stable forecast b. You want a responsible forecast c. You use more periods of data d. You use fewer periods of data e. Only a and c f. Only b and d
e. only and c
Lean and quality go hand-in-hand. What does this mean? a. Quality is the #1 goal b. Eliminating waste requires that you improve quality c. Quality is needed for lean to work properly, and lean process quickly reveal any quality problems d. All of the above e. Only b and c
e. only b and c
The output rate of a process during normal conditions is what? Inventory management Design capacity Effective capacity Lost production Jidoka None of the above
effective capacity
Beginning," "Middle," and "End" refers to ___? a. Beginning of a story b. Plot of a story c. End of a story d. Characters of a story e. Middle of a story f. a, c, and e
f
Research has shown that if you invest in which of the following activities, you will end up with an attitude of continuous and constant improvement. a. Respect every individual b. Focus on the process c. Seek perfection d. Look out for your own team e. All of the above f. Only a, b, and c
f
The core questions to be addressed as part of a Kaizen event are: a. What is the customer value proposition? b. How can the process be improved? c. How will changes we make affect elated processes? d. Where should we implement cross-training? e. All are primary questions f. Only b and c
f
The lean principle of an organized workplace is directly supported by which of the following? a. Poka-yokes b. Standard work c. Kitting processes d. Root cause analysis e. All of the above f. Only a and b
f
Which of the following are parts of the classifications of processes? a. Strategic Processes b. Operational Processes c. Enabler Processes d. Human Processes e. All of the above f. Only a, b & c
f
Which of the following is NOT a value-added process? a. New product development b. Engineering change orders c. Scheduling production d. Managing freight shipments e. All of the above f. None of the above, they are all value-added processes
f
What are some of the biggest challenges to effective order management? a. Complexity b. Ownership c. Uncertainty d. Flexibility e. All of the above f. Only a, b, and c
f. only a, b, and c
Which of the following are common causes for stockouts? a. Poor forecast accuracy; i.e., underestimate demand b. Shipping issues that delay product arrival c. Parts shortages that limit production d. Excess warehouse capacity e. All of the above f. Only a, b, and c
f. only a, b, c
Which of the following are types of quantitative forecasting models? a. Time series models b. Expert panels c. Correlational models d. Delphi Technique e. All of the above f. Only a and c g. Only b and d
f. only and c
A good definition of lean is eliminating waste.
false
A kaizen event is a one-time event for any given process.
false
A value stream map should be created before the Kaizen event begins.
false
Honda and Toyota have been mapping processes for 50 years to understand how a process works so that they can fix problems as they arise.
false
In the introduction, the text describes the dogfight between Airbus and Boeing. History show that forecasting gave Airbus the edge in air supremacy. TrueFalse
false
Bottlenecks can usually be easily spotted. They are always busy, with no idle time. Work typically piles up in front of them. Subsequent activates are usually waiting on output from the bottleneck. This describes which of the five focusing steps of Theory of Constraints? Identify Elevate Subordinate Exploit Repeat
identify
S&OP is used to bring the customer-facing and supply-facing sides of your company together to get everyone to agree to which of the following? a. The nature of the business environment b. A single forecast c. How to increase the profit margin d. All of the above e. Only a and b
only a and b The nature of the business environment and a single forecast
Which of the three processes involves carrying out the visions of the business? Strategic Processes Operational Processes Enabler Processes None of the above Human Processes All of the above
operational
The best lean companies pursue a continuous cycle of ________________________ to continue to improve. key performance indicators plan, do, check, act just-in-time kanban none of the above
plan, do, check, act
In order for a company to win the "first moment of truth" it needs to have the right _______ at the right _______ at the right _______ at the lowest possible _______. niche, market, time, fare product, place, time, cost product, location, view, risk niche, place, time, cost None of the above
product, place, time, cost
Creating a positive work environment creating longevity in employee retention describes which lean operation competitive advantage? the customer rules low inventory zero-waste continuous improvement respect for all employees
respect for all employees
When the cost of excess inventory or stockouts is low, you can probably use a ____________ forecasting method. Simple Complex Long Sophisticated None of the above
simple
A forecast error is
the difference between what you predict and what actually happens
Which of the following emphasizes throughput accounting metrics? Accounts Payable, Operating Expense, Activity Analysis Throughput, Inventory, Operating Expense Inventory, Accounts Payable, Throughput Activity Analysis, Throughput, Operating Expense None of the above
throughput, inventory, operating expense
If you look at a plot of your data and see an upward or downward pattern, your data is revealing a ____________. Level Trend Seasonal Cyclical None of the above
trend
In process mapping, the following indicates waiting. Triangle Oval Diamond Double arrow Box
triangle
Constantly getting better through continuous improvement is an important step on the lean journey.
true
If you want to catch new trends quickly in your exponential smoothing forecast, your alpha should be larger than .5.
true
Quality has more influence on a company than any other value-added dimensions.
true
The Uberpool approach to ridesharing is an application of lean principles.
true
The core objective in six sigma is to reduce variation in processes.
true
The main goal of the S&OP business review meeting is to align plans and decisions with overall business goals.
true
The theory of constraints argues that all processes possess constraints that limit their capacity.
true
Uber's initial business model is a good application of lean thinking.
true
Within S&OP's Supply Review, you must examine manufacturing capacity, supply chain inventory, transportation, and logistics/DC capacity. You should also develop contingency plans.
true
You need to evaluate services quality a little differently than you evaluate product quality.
true
Since we know our forecast is going to be __________, we _______________. good, should forecast less frequently wrong, shouldn't forecast at all. time-consuming, should forecast less frequently wrong, should frequently update it with the most current information
wrong, should frequently update it with the most current information