Supplier Performance

Which of the following is a non-value added activity? a. Design reviews b. Vendor assessments c. Inventory reductions d. Receiving inspection

Solution : Receiving inspection does not add any value , since the vendor should be shipping quality products. The other items are, or can be, value added . Answer d is correct. Reference: CSQP Primer , Section VI- 20/21.

6.38. Improving processes incrementally on a continuous basis is: a. Kaizen b. Revolutionary c. Reengineering d. Breakthrough

Revolutionary improvement (b) implies improvement resulting from process redesign rather than corrective action . It is often radical. Reengineering (c) is "the fundamental rethinking and redesign of operating processes and organizational structure, focused on the organization's core competencies to achieve dramatic improvements in organizational performance." Breakthrough (d) improvement is achieved through the use of breakthrough products or processes . The term Kaizen is taken from the Japanese "kai" (change) and "zen" (good), and means "gradual unending improvement." It applies to doing little things better and setting and achieving increasingly higher standards. (a) Answer a is correct. Reference: CSQP Primer , Section VI - 13.

6.30. What contributes most to the muda of transportation and storage? a. Conveyer belts b. Hand trucks and fork trucks c. Pallets movers d. Poor plant layout

Solut ion: All forms of transportation and storage are considered muda. These are represented by answers a, b, and c. However , the question asks for a major contributor to the need for transport . Poor plant layout or work cell design are contributors. Answer d is correct. Reference: CSQP Primer, Section Vi - 19/23.

6.35. . Identify the element that is associated with excess inventory? a. Little or no operator waiting b. Minimal rework c. Transportation vehicles d. Expensive poka-yoke devices

Solut ion: Answer d is out of step with the question , and is also not true . Minimal operator waiting and rework are consistent with value added activities. All forms of transport which results from excess inventory are considered muda. Answer c is correct. Reference: CSQP Primer , Section VI - 20

6.1. Which of the following concepts would be useful in reducing a production bottleneck that occurs when a tool change is necessary? a. JIT b. SMED/SUR c. Poka-Yoke d. Kanban

Solution : A knowledge of some current lean manufacturing terms and acronyms is helpful to answer this question. The correct answer is b. SMED/SUR is an acronym for Single Minute Exchange of Die. The other choices refer to: JIT: Just In time inventory control Poka-yoke: The error proofing of a process Kanban: An inventory control process-often using colors , markings, or cards Answer b is correct. Reference: CSQP Primer , Section VI - 28/30 .

6.43. The essence of kanban concepts includes which of the following? a. Delivery of components and products ahead of need b. Minimal storage in production areas c. Minimal distress in the production system when a machine failure occurs d. W ide applicability to repetitive and non-repetitive production plants

Solution : Answer b is usually recognized as key Kanban system element. Since in-process inventory is so low (answer a is false) , the system stops soon after almost any equipment malfunction (Answer c). The system is not applicable to one-of-a-k ind and certain process industries. Answer b is correct. Reference : CSQP Primer , Section VI- 25.

6.25. . The primary difference between dashboards and scorecards is: a. Interactive programs versus static pictures b. Data exceptions versus graph alerts c. Different types of charts versus raw data d. Monitoring operations versus charting strategic goals

Solution : Dashboards and scorecards are visual display mechanisms within a performance management system. Many organizations use the terms interchangeably , but the primary difference is that dashboards are used to monitor the performance of operational processes while scorecards are used to chart the progress of tactical and strategic goals. Answer d is correct. Reference: CSQP Primer , Section VI- 7/9.

6.23. Standard work relies most heavily on which three other tools? a. Visual factory , Kanban, and 5S b. 5S, non-value added activities , and VSM c. Kanban, work cells, and pull principles d. EWMA , muda , and andon boards

Solution : EWMA (exponentially weighted moving average) is a charting technique to detect small incremental shifts in the process average. Kanban, visual factory, and 5S techniques contain controls that assist the standardization of work . Answer a is correct. Reference: CSQP Primer , Section VI- 19, 23 and 25/27 .

6.22. Which of the following is likely to be a positive action in obtaining a supplier's commitment to quality improvement? a. Involving the supplier late in the product development stage b. Partially reimbursing the supplier when the product is rejected c. Establishing a flexible schedule of required product quantities and dates d. Providing meaningful and timely quality performance feedback

Solution : It is unlikely that the results of answer b will be positive. The supplier should be involved early not late in product development (answer a is incorrect). Most suppliers want a firm schedule of quantities and dates (answer c is incorrect). Answer d is correct. Reference: CSQP Primer , Section VI - 2/6.

6.29. Kanban concepts include which of the following? a. Delivery of components and products only when needed b. Maximum storage in production areas c. Little production system distress when a machine failure occurs d. Wide applicability to repetitive and non-repetitive production plants

Solution : Item a is usually recognized as key kanban system element. Since in-process inventory is so low, the system stops shortly after any equipment malfunction (answer cis false). The system is not applicable to one-of-a-kind and certain process industries (answer d is false) . Answer a is correct. Reference: CSQP Primer , Section VI - 23/25 .

6.36. A kaizen improvement process concentrates on which of the following? a. JIT , poke-yoke, and muda elimination b. Poka-yoke , brainstorming , and work breakdown structure c. Kanto, PERT, and CPM d. Muda, network rules , and Gantt charts

Solution : Kaizen includes more areas of concentration than JIT, poka-yoke, and muda . It also includes such elements as value-added versus non-value-added activities, team problem solving , documentation , motion studies , and many more. A kaizen process concentrates on JIT principles , poka-yoke , error prevention and detect ion, and muda elimination . Answers b, c, and d contain various project planning tools and other distracter items. Answer a is correct. Reference : CSQP Primer , Section VI - 13.

6.20. Metrics used in supplier quality evaluation surveys often include which of the following features? a. Price b. Service c. Corrective actions d. ppm

Solution : Note that this question is referring to quality metrics. Reports that include defective parts per million (ppm) or defects per million (DPM) are very common in quality metrics evaluations. Answer d is correct. Reference: CSQP Primer , Section VI - 2.

6.6. . Performance dashboards are noted to indicate : a. Summaries b. Metrics c. Targets on thresholds d. Periodic snapshots

Solution : Performance dashboards commonly show metrics as a measurement indicator. The other answer choices are traditionally displayed on scorecards . Answer b is correct. Reference: CSQP Primer , Section VI - 7.

6.15. Project completion status can be indicated on which three charts? a . Pareto charts, central charts , and histograms b. Line charts , pie charts, and stoplight charts c. Bar charts dial charts , and stoplight charts d. Pareto charts, stoplight charts, and line charts

Solution : Project completion status can easily be shown on bar charts , dial charts, and stoplight charts . Answers a, b, and d contain one or more distracter elements . Answer c is correct. Reference: CSQP Primer , Section VI - 8.

6.40. A customer's purchase order requires receipt of material on the 15th of the month, +0/-3 days. Which of the following would be considered conformance to this requirement? a. Delivery by the supplier on the 11th of the month b. Arrival at the customer's dock on the 12th of the month c. Shipment from the supplier on the 1Oth of the month d. Clearance through Customs on the 15th of the month

Solution : Since the purchase order requires receipt from the 12th to the 15th of the month, any other case is a nonconformance . While answer a means the material is there prior to the required date, most companies would still consider this to be a nonconformance. Answers c and d might or might not be nonconformances. More locational information is needed. Answer b is correct. Reference: CSQP Primer , Section VI - 3.

6.32. Which of the following characterize the muda of waiting? a. Unnecessary operator motions b. Machinery breakdown and uneven schedules c. Excess inventories and overproduction d. Unnecessary transport and overproduction

Solution : The muda of waiting occurs when the operator is idle. Answer b is the best choice . Answer a is the muda of extra motion. Excess inventory , overproduction , and extra transport are stand alone non value added activities. Answer b is correct. Reference: CSQP Primer, Section VI- 20/21.

6.41. What does the following icon represent on a value stream map? lox ox ! a. Buffer stock b. Load leveling c. Schedule box d. Data box

Solution : This is a straight knowledge question. The icon represents load leveling. Answer b is correct . Reference : CSQP Primer , Section VI- 17.

6.18. . The primary reason for evaluating and maintaining surveillance over a supplier's quality program is to: a. Perform product inspection at the source b. Eliminate incoming inspection costs c. Motivate suppliers to improve quality d. Ensure the supplier's quality program is functioning properly

Solution : This question asks for the "primary" reason for vendor surveillance. a. False. There may or may not be a need for source inspection. b. False. The principal reason for a supplier audit is not to replace inspection . c. False. Audit surveillance is not a threat to motivate suppliers. d. True. A vendor audit is conducted to ensure that the supplier 's quality program is functioning properly . Answer d is correct. References : CSQP Primer , Section VI - 4/6 . This question has been modified from an old published CQE exam.

6.26. . Identify a non-value added activity that would be considered a form of processing muda : a. Any and all forms of transportation b. An ergonomically unsound workplace c. Reshaping a product due to poor dies d. Producing more than needed by the customer

Solution : This question requires some detailed knowledge of muda categories . Answer a is transportation muda. Answer b is motion muda. Answer d is overproduction muda . Answer c is correct. Reference: CSQP Primer , Section VI - 19/21.

6.2. Commonly used metrics used to assess supplier performance , relative to products or services , are : a. Quality and delivery b. Engineering and support c. Cost and availability d. Design and reliability

Solution : While quality , delivery , cost, service and compliance are measures of supplier performance , the most commonly used (in the opinion of the author) are quality and delivery. In this case, quality is defined as meeting purchase order requirements and specifications, and delivery is the timeliness of the receipt by the customer. If the delivery is early or late compared with a requirement window , the supplier loses points. Answer a is correct. Reference: CSQP Primer , Section VI - 2/3.

6.16. A value stream map would normally provide data on: a. Changeover and cycle times b. The amount of floor space saved c. The current and projected quality levels d. External finished goods inventory

Solution: A value stream map provides data on changeover time , work in process inventory, and cycle times. The value stream map does not usually provide data on external finished goods inventory. Answers b and c relate to kaizen activities . Answer a is correct. Reference: CSQP Primer, Section VI- 14/18.

6.3. Identify the most difficult limitation in achieving continuous flow . a. Untrained employees b. Existing equipment c. Employee culture d. Middle management involvement

Solution: All answer choices except existing equipment can be changed by training and management improvement to obtain continuous flow. However , replacement of existing equipment requires capital , management support , and planning . Answer b is correct. Reference: CSQP Primer, Section VI- 22/23 (and logic).

6.37. Supplier assessment metrics that emphasize JIT Uust in time) performance would include which of the following? a. Percent of orders over and under quantity b. Percentage of reported versus required quality information c. Percentage of supplied versus required certifications d. Percent of rejected product out of total delivered product

Solution: Answer a is a delivery (or timeliness) metric . Answer dis a quality metric, which could be easily translated into a cost metric. Answers b and c are compliance metrics. Answer a is correct. Reference: CSQP Primer , Section VI- 2/3.

6.5. Which of the following would be considered a subjective supplier rating metric? a. Percentage of late deliveries b. Thoroughness of technical assistance c. Percentage of required certifications submitted over some time interval d. Lots rejected versus lots accepted

Solution: Answer b is a subjective rating metric . Answer a is a timeliness metric . Answer c is a compliance metric. Answer d is a quality metric . Answers a, c, and d are considered objective because they can be specifically measured. Answer b is correct. Reference : CSQP Primer , Section VI- 3.

6.11. Which of the following is an objective form of supplier assessment? a. Responsiveness of service functions b. Thoroughness of technical assistance c. Ability of the supplier to follow instructions d. Percentage of on-time deliveries

Solution: Answers a, b, and c have or can have subjective components . Answer d is correct. Reference: CSQP Primer , Section VI - 2/4.

6.17. In the SMED system what is the real meaning of the single minute concept? a. That dies will be exchanged in 1 minute or less b. That dies will be exchanged in less than 5 minutes c. That dies will be exchanged in less than 10 minutes d. That dies will be exchanged in less than 15 minutes

Solution: Authorities' opinions differ slightly as to the SMED definition. However, they all agree that it doesn't mean one minute or less. Some say it refers to a single digit of time (in minutes). While others say under 10 minutes. In both cases , 9 minutes qualifies . Answer c is correct. Reference: CSQP Primer, Section VI - 28.

6.12. The seven most widely recognized forms of muda or non-value added activities are overproduction , inventory , repair/reject , motion, processing , waiting , and transport . Which two of these categories have little impact on product quality? a. Overproduction and excess inventory b. Repairs and excess motion c. Excess motion and waiting d. Waiting and transport

Solution: Excess operator motion and the muda of waiting have a lower effect on product quality . The other items are more flagrant offenders . Answer c is correct. Reference: CSQP Primer, Section VI - 19/21.

6.39. The primary purpose of a stoplight chart is to: a. Provide bar chart comparisons b. Display at least two dial gauges c. Report defects found per test hour d. Indicate project or product status

Solution: Just like stoplights are key indicators for motorists, stoplight charts are used by software project managers and development teams to indicate project or product status . These charts can be used to display the status of schedules , costs, resource consumption , requirements creep , etc. Interpretation of the chart is similar to that used for typical driving conventions . Green means all systems are go. Amber means caution . Red means stop. Answer d is correct. Reference: CSQP Primer , Section VI - 8/9 .

6.14. Which of the following operations would benefit most from a kanban system application? a. One-of-a-kind production operations b. Service operations c. Repetitive production plants d. Hospital emergency centers

Solution: Kanban is mostly applicable in repetitive production plants. All operations, supermarkets and workstations upstream know what to expect when a kanban card arrives . One-of-a-kind operations require different instructions each time . Service operations and emergency transactions are usually unique and resemble one-of-a-kind operations. Answer c is correct. Reference: CSQP Primer, Section VI - 25.

6.34. In the buyer/supplier relationship which of the following is most clearly a responsibility of the buyer: a. Sample submissions as requested b. An explanation of quality seriousness classifications c. Record retention for produced product d. Inspection and testing reports

Solution: Note that the question relates to a buyer responsibility . The determination and explanation of quality seriousness classifications rest with the buyer. Answers a and c are clearly supplier responsibilities . Inspection and testing reports could be generated by either buyer or supplier . However, these reports could easily be required of the supplier and be optional on the part of the buyer. Answer b is correct. Reference: CSQP Primer, Section VI - 2/6

6.24. Customer-supplier communications should always be defined and placed into routine usage. An example of such routine communications includes : a. Quarterly status reports and periodic audit results b. A sudden 10% increase in scrap rate c. Critical parts that are needed this week d. On-time deliveries which have dropped dramatically

Solution: Note the key question phrase "routine usage." Quarterly status reports and periodic audit results fall into routine communications . Answers b, c, and d are emergency commun ication items . Answer a is correct. Reference: CSQP Primer , Section VI - 2/3.

6.33. The primary purpose of a dashboard chart is to: a. Provide bar chart comparisons b. Display at least two dial gauges c. Graphically report diverse information d. Report defects found per test hour

Solution: Performance dashboards are so named because they resemble the dial indicators located on the dashboard of an automobile . They can be depicted as dial gauges, graphs , maps, pie charts , tables , stoplights , vertical columns , or horizontal bars. They report diverse information . Answer c is correct. Reference : CSQP Primer , Section VI- 719.

6.21. The visual factory would be supported to the greatest extent by: a. Muda and gemba b. Kanban and 5S c. Gemba and takt time d. 5S and muda

Solution: The easiest item to exclude is gemba . Gemba is Japanese for the factory floor. Muda is identified with waste . It is a marginal choice for this question. Kanban is clearly visual. Parts of 5S (such as color coding , outlines, and markings) support the visual factory . Answer b is correct. Reference : CSQP Primer , Section VI - 19 and 25.

6.28. . Measures of supplier performance are needed in order to: a. Identify areas for corrective action b. Reduce the number of suppliers c. Make suppliers more responsive d. Have a supplier evaluation system in place

Solution: The implication of the question is that some supplier evaluation has already occurred . This tends to eliminate choices band d. Of the two remaining answers, choice a is the most progressive and objective selection. Answer a is correct. Reference: CSQP Primer , Section VI - 2/6.

6.8. . Supplier performance based on subjective measures : a. Cannot be included due to bias in the rating b. Is permitted by Fair Trade Laws in the United States c. Includes responsiveness to technical issues d. Is normally reported in terms of ppm defect opportunities

Solution: The key question phrase is "based on subjective measures." Supplier performance based on subjective measures might include: responsiveness to technical issues, service support activities, willingness to participate in customer/supplier training , sales support activities , and engineering support . Answer c is correct. Reference: CSQP Primer, Section VI- 3.

6.27. Which of the following conditions are driving companies to adopt a lean approach? a. Load leveling b. Eliminating waste from the process c. The development of VSM d. Decreasing capacities

Solution: The lean approach, helps eliminate waste from the process which lowers costs and increases capacity . Answer d is false and answers a and c are distracter choices . Answer b is correct. Reference : CSQP Primer, Section VI - 10 and 21.

6.10. What is considered an ideal batch size in a continuous flow operation? a. Large batches are considered ideal b. It depends on the bin size pre-determination c. One piece is considered ideal d. Takt time batch size is considered ideal

Solution: The main concept behind continuous flow operation is that material should always be moved one piece at a time (at a rate determined by the needs of the customer) . Answer c is correct. Reference: CSQP Primer, Section VI - 12 and 15/16.

6.4. Overproduction , scrap, waiting , and excess motion are all forms of: a. TPM b. Muda c. Kanban d. CFM

Solution: The question states four of the major seven forms of muda (waste) . Kanban, total productive maintenance , and continuous flow manufacturing have some influence on waste areas , but do not directly address them all. Answer b is correct. Reference : CSQP Primer, Section VI - 11 and 19/21.

6.42. The principal lean diagnostic tool for a complex manufacturing operation would be a: a. Process flow chart b. Affinity diagram c. Value stream map d. Spaghetti diagram

Solution: The weakest answer choice is b. By far the most widely used diagnost ic tool for improvement in multi-step manufacturing applications is the value stream map. Answer c is correct. Reference : CSQP Primer , Section VI - 14/17.

6.31. If one were to plot a supplier's delivery rating against the same supplier's quality rating, one would have: a. An incomprehensible rating system b. A graphical depiction of performance c. A cost index rating system d. A comprehensive performance rating technique

Solution: There is no reference to cost in the question so answers c and d can be eliminated. The two performance features can be combined to form a graphical representation of supplier performance . Answer b is correct. Reference: CSQP Primer , Section VI - 2/6.

6.13. What could happen if the supplier is at too high of a percentage of capacity with a single customer? a. They may be too dependent on the customer b. Quality may deteriorate c. Productivity will decrease d. On time delivery may suffer

Solution: This is a question which the supplier or customer has to ponder from time to time. Having too much business with one source causes a very heavy dependence . Answers b, c, and d are possibilities that may or may not occur. Answer a is a more general and realistic concern. Answer a is correct. Reference: CSQP Primer, Section VI- 4/6 (and logic).

6.7. When comparing breakthrough achievement with Kaizen techniques ,which of the following statements is true? a. Kaizen techniques provide more rapid improvement b. Breakthrough achievement is generally less expensive c. Breakthrough achievement would be used for low tech products d. Kaizen techniques are more easily applied at the floor level

Solution: This question requires familiarity with continuous improvement techniques . As a general rule, Kaizen techniques represent slow incremental changes . Breakthrough achievement can be very expensive in some cases. Breakthrough achievement can be applied to low tech industries but is most essential in hi-tech, rapidly changing environments . Kaizen techniques are easily adapted for floor level usage. Answer d is correct. Reference: CSQP Primer, Section VI - 13.

6.9. Value stream mapping means: a. Flow charting techniques b. An identification of inputs , tasks, and outputs c. A pictorial view that identifies process steps d. A graphical technique that shows material and information flows

Solution: Value stream mapping is more than flow charts and process steps. Item d can include items a, b, and c. Answer d is correct. Reference : CSQP Primer , Section VI- 14/17.