Chapter 3 Quiz - Continuous Improvement and Change Management
Q: A supply chain team is going to brainstorm a list of causes of product returns. Which tool would be most appropriate for this purpose? A) Affinity diagram B) Activity network diagram C) Control chart D) Process decision program chart
A: A) Affinity diagram Rationale: An affinity diagram is a tool for organizing and consolidating a large number of brainstormed ideas by employees striving to solve a particular issue. It begins with a discussion leader presenting the topic or problem, which the employees then brainstorm about, recording each idea on a slip of paper or index card. The ideas are then posted in one place and the group determines how to group them by category or theme. Each group is then given a descriptive title. The team discusses the categories and then identifies which should be further researched. For more information, see Module 3, Section C, Chapter 3, Topic 2
Q: A key performance indicator for merchandizing products is: A) volume growth. B) merchandize costs. C) publicity efforts. D) scrap.
A: A) volume growth. Rationale: Volume growth, market share, and total supply chain inventory returns are key performance indicators of merchandizing products. For more information, see Module 3, Section C, Chapter 3, Topic 1
Q: An organization sets a goal of reducing its lead time from four days to two because another firm in its industry can offer two-day lead time. This is an example of which of the following? A) Oliver Wight benchmarking B) Competitive benchmarking C) Process benchmarking D) Best-in-class benchmarking
A: B) Competitive benchmarking Rationale: Setting a competitor's performance on a process as your goal for the process in your organization is an example of competitive benchmarking. For more information, see Module 3, Section C, Chapter 3, Topic 2
Q: After the implementation of an improvement, change management issues need to be managed proactively and skillfully. Which of the following would not be appropriate? A) Ensure that all leadership acts as full partners and passionate advocates. B) Implement new roles and explain expectations to employees with minimal notice. C) Adjust incentives according to the change and reflect them on the balanced scorecard. D) Develop and schedule training for those affected.
A: B) Implement new roles and explain expectations to employees with minimal notice. Rationale: Growth and learning will most likely have to be integral to the initiative. People must not be introduced to new roles and new expectations without being thoroughly prepared. Training can take different forms depending on roles and responsibilities. New skills may best be learned in a person-to person or classroom context with follow-up on the job. For more information, see Module 3, Section C, Chapter 3, Topic 1
Q: In a process map, an oval shape is used to signify which of the following? A) A decision point B) The start and end of a process C) An important subprocess D) A process step
A: B) The start and end of a process Rationale: An oval shape is used to symbolize the start and end of a process. For more information, see Module 3, Section C, Chapter 3, Topic 2
Q: A group of employees is discussing which features would be best for a new product they will be launching. Using a flipchart, they have written their overarching product goal and the four product features they want. They're now in the midst of adding further details about each of the product features. Which of the following tools are they using? A) Ishikawa diagram B) Tree diagram C) Process decision program chart D) Relationship diagram
A: B) Tree diagram Rationale: Using a tree diagram enables one to take broad categories and repeatedly break them down into smaller, more refined details. This tool can help an employee team delineate tasks and activities required to meet a specific goal. The desired product features then branch off to the right from the goal, and relative details are added for each feature. Each of these branches helps to clarify another aspect of the product. For more information, see Module 3, Section C, Chapter 3, Topic 2
Q: A true supply chain metric is one that: A) measures performance against strategy in functional areas. B) measures a process that crosses tiers. C) measures the highest priority. D) measures the financial impact of a process.
A: B) measures a process that crosses tiers. Rationale: A true supply chain metric measures a process that crosses tiers of the chain. For more information, see Module 3, Section C, Chapter 3, Topic 1
Q: Which of the following statements about the matrix chart are true? 1) There are two shapes of matrix charts—L- and roof-shaped. 2) It can show the relationships between two or more groups of information. 3) It can show strengths of relationships between variables. 4) It shows how variables interact and respond with each other. A) 1 2 B) 2 3 C) 2 3 4 D) All of the above
A: C) 2 3 4 Rationale: The matrix chart is a useful tool for showing the relationships between two to four groups of information, the strengths of those relationships, and how those variables interact and respond to each other. Matrix diagrams can be in a variety of shapes: L-, T-, Y-, C-, X-, and roof-shaped. The most commonly used is the L-shaped matrix, which illustrates how two groups of items relate to each other or one group to itself. For more information, see Module 3, Section C, Chapter 3, Topic 2
Q: The continuous improvement (CI) team you're working with has decided to track when specific manufactured components are too wide, too thin, or too bendable during the first week of production next month. Which of the following CI tools would be best for this purpose? A) Affinity diagram B) Relationship diagram C) Check sheet D) Scatter diagram
A: C) Check sheet Rationale: A check sheet is a simple and easy tool for summarizing a tally count of the occurrences of certain defects in a product in a specified period of time. For more information, see Module 3, Section C, Chapter 3, Topic 2
Q: Which of the following would be best for showing frequency distribution? A) Tree diagram B) Pareto diagram C) Histogram D) Radar chart
A: C) Histogram Rationale: A histogram is a bar graph that displays the frequency distribution of measurement data such as dimensions, temperature, weight, etc., for a process. It shows the amount of variation and the range of variation within a process. For more information, see Module 3, Section C, Chapter 3, Topic 2
Q: There are a variety of reasons why an organization takes a continuous improvement (CI) approach to supply chain management (SCM). Which of the following is not a reason to adopt CI? A) Supply chains evolve over time. B) Supply chains are dynamic. C) It's an objective way to focus blame on certain entities in a process. D) Both organizations and SCM are process-oriented.
A: C) It's an objective way to focus blame on certain entities in a process. Rationale: The reasons an organization takes a continuous improvement approach to supply chain management include that SCM is process-oriented, supply chains are dynamic and evolve, and CI can reduce the costs of poor quality. CI does not strive to focus blame on entities but rather to improve processes and educate those that are involved to understand the need for improvement. For more information, see Module 3, Section C, Chapter 3, Topic 1
Q: Which quality tool could help a supply chain manager provide the logical inputs that a software engineer would need in order to build an automated decision support system to route shipment orders to the proper carrier given a series of decision points? A) Control chart B) Histogram C) Process map D) Check sheet
A: C) Process map Rationale: A process map is simple to construct on paper or by other tools but it shows the logical flow and branching decisions of a process, so it could help get the process automated correctly. For more information, see Module 3, Section C, Chapter 3, Topic 2
Q: A firm that has recently completed an enterprise resources planning (ERP) implementation is feeling exhausted and generally believes that their current technology will provide enough of an advantage. What advice should the members of the organization be given? A) The firm should immediately begin the next available upgrade to their ERP system. B) The firm should have enough of an advantage from its ERP system and should redirect its employees to leverage the system rather than giving anyone a rest. C) The firm should embrace change as a continuous process and immediately begin analyzing where it needs its next investment. D) The firm should leverage its current investments and give its employees the rest they need to maintain morale.
A: C) The firm should embrace change as a continuous process and immediately begin analyzing where it needs its next investment. Rationale: The belief that an ERP system will give a firm enough advantage today is far from true, as it is just a point of entry to stay in business for most larger firms. Companies that resist continual change will find themselves rapidly behind the competition, and the expense of this will rapidly outweigh the cost of increasing its capabilities. For more information, see Module 3, Section C, Chapter 3, Topic 1
Q: Holding a brainstorming session for an improvement team is usually an effective means of creating: A) a check sheet. B) a control chart. C) a process map or flow process chart. D) a scatter diagram.
A: C) a process map or flow process chart. Rationale: One way to carry out process mapping is to schedule it as a brainstorming session for the improvement team. For more information, see Module 3, Section C, Chapter 3, Topic 2
Q: Continuous process improvement is supposed to: A) fix or remedy all the problems and defects in any supply chain organization. B) focus just on the quality of goods and services produced by the chain. C) improve worker satisfaction by eliminating unnecessarily strenuous or stressful work. D) tap into the intuition of long-term employees who have extensive supply chain experience.
A: C) improve worker satisfaction by eliminating unnecessarily strenuous or stressful work. Rationale: One of the common purposes of continuous process improvement is to improve worker satisfaction by improving workplace safety, eliminating unnecessarily strenuous or stressful work, making performance assessments more rational, and enhancing the quality of jobs and career options. For more information, see Module 3, Section C, Chapter 3, Topic 1
Q: A control chart can be used to track which of the following? A) Time B) Size C) Percentages D) All of the above
A: D) All of the above Rationale: The control chart can track process variation for a variety of process outcomes like component size, wait time, percentages, thickness, etc. For more information, see Module 3, Section C, Chapter 3, Topic 2
Q: Which of the following describes a successful continuous improvement project that has the best impact? A) It works mostly on a process within an individual department. B) It requires only the employees involved in the revised process. C) It requires implementation teams of random employees throughout the chain. D) It is directed from the top down and implemented from the bottom up in the supply chain.
A: D) It is directed from the top down and implemented from the bottom up in the supply chain. Rationale: A successful continuous improvement project is directed from the top down and implemented from the bottom up. Projects must be selected based on overall business strategies with the collaboration of the executive team. Management should be the driving force that gives the continuous improvement its momentum and credibility. Implementation is accomplished by the employees involved in the processes themselves, and they should make up the implementation teams. The members' intimate knowledge is required to define the process, analyze weak points, suggest improvements, and implement solutions. For more information, see Module 3, Section C, Chapter 3, Topic 1
Q: Which continuous improvement tool can be used in two different manners: to identify measures that can be taken to avoid undesirable, intermediate consequences and to lay out a plan to predict future foreseeable problems that can then be resolved successfully? A) Relationship diagram B) Tree diagram C) Activity network diagram D) Process decision program chart
A: D) Process decision program chart Rationale: The process decision program chart visually captures things that might possibly go wrong in a plan being developed. This tool can be used in two ways: to identify measures that can be taken to avoid undesirable, intermediate consequences and to lay out a plan to predict future foreseeable problems that can then be resolved successfully. For more information, see Module 3, Section C, Chapter 3, Topic 2
Q: Which of the following statements about continuous improvement approaches is false? A) Many process improvement approaches have evolved in the last 50 years. B) They tend to be complementary and most effective when used in combination. C) They focus on reducing defects or eliminating waste in time and materials. D) The most valuable approach is lean.
A: D) The most valuable approach is lean. Rationale: Several well-tested approaches to process improvement have evolved during the past 50 years, including lean, six sigma, the theory of constraints, and total quality management. One single approach is not more valuable than the others; they are complementary and may have the most impact when combined under a continuous improvement umbrella. Many are related to the quality movement to one degree or another, emphasizing the reduction of defects or the elimination of waste in the use of time and materials. For more information, see Module 3, Section C, Chapter 3, Topic 1
Q: An Ishikawa diagram is used to: A) show the relationship of two variables. B) identify measures to avoid undesirable consequences. C) illustrate how the majority of problems come from just a few causes. D) identify all possible causes of an effect and then research the most likely ones.
A: D) identify all possible causes of an effect and then research the most likely ones. Rationale: The Ishikawa diagram, also known as the cause-and-effect or fishbone diagram, is used to identify all possible causes of an effect and then to research the most likely ones. For more information, see Module 3, Section C, Chapter 3, Topic 2
Q: The activity network diagram, also known as the critical path method chart, can be used when a team needs to identify: A) who must be involved in each step in the path and how they'll participate. B) the location of each of the steps in the critical path and the time requirements. C) where probable failures will occur in a critical path of a process or project. D) the required order of tasks and their respective time requirements in a process or project.
A: D) the required order of tasks and their respective time requirements in a process or project. Rationale: The activity network diagram is particularly helpful when an improvement team needs to identify the required order of tasks in a process or project. It's also used to convey dependencies and simultaneous activities via a simple visual. Each task is labeled with the number of days for completion (or most appropriate metric) that it takes to complete the task. For more information, see Module 3, Section C, Chapter 3, Topic 2
