Deck 8: Process Management - Lean and Six Sigma in the Supply Chain

Question 1

Control charts makes it very difficult for operators or other workers to plot data and compare performance over time.

Answer 1

False

Question 2

Statistical process control (SPC)allows firms to compare process performance to desired levels or standards.

Answer 2

True

Question 3

The Malcolm Baldrige National Quality Award recognizes firms for their quality achievements and is only given to U.S.firms.

Answer 3

True

Question 4

A type of card called a kanban is used to signal when a process is out of control in the production process.

Question 5

Acceptance sampling is a statistical technique that enables a reject or accept decision to be made based on information obtained from a representative sample drawn from the population.

Question 6

Deming's 14 points actually conflict with many Six Sigma concepts.

Question 7

Statistical process control uses control charts to monitor the outputs of a process to identify variations due to assignable causes from variations due to common causes.

Question 8

Manufacturing cells are often U-shaped to make operator and material movements easier within the cell.

Question 9

Lean production is an operating philosophy or mindset that essentially attempts to minimize the impact of system variability and flaws in forecasting through the use of high safety stock inventories.

Question 10

Lean thinking and Six Sigma quality are concerned with achieving low cost along with high levels of quality and responsiveness throughout the supply chain.

Question 11

The term "lean production" essentially refers to the Toyota Production System in its entirety.

Question 12

A cause-and-effect diagram is a useful tool for presenting data in an organized fashion,indicating process problems from most to least severe.

Question 13

A lean system is also known as a push system.

Question 14

Organizations practicing lean production often increase their inventory levels in the long-run in order to create a cushion against variability so that they can investigate and eliminate the weaknesses of their system.

Question 15

Lean production and Six Sigma quality are essentially two terms that mean the same thing.

Question 16

When designing a manufacturing or service process,or even during the reengineering of such a process,a Pareto chart would be an essential tool for evaluating the process in terms of its action elements,waiting periods,and process flow.

Question 17

The primary design objective with lean layouts is to reduce wasted movements of workers,customers,and/or work-in-process.

Question 18

The five S's refer to various safety activities practiced by Toyota.

Question 19

Six Sigma is a quality improvement concept developed by IBM.

Question 20

Deming,Crosby,and Juran are all prominent quality professionals whose ideas were vital to Six Sigma.

Question 21

Which of the following is NOT consistent with the lean philosophy?

A)Cross-training employees to increase processing flexibility
B)Developing a culture of continuous improvement within the organization
C)Increasing batch size to take advantage of economies of scale
D)Positioning WIP inventories near each processing center

Question 22

Which of the following best describes the five S's?

A)These were originally Japanese words relating to industrial housekeeping
B)Five ways to reduce inventories on the shop floor
C)These are five different kinds of manufacturing layouts
D)Refer to methods for reducing setup times

Question 23

Efficient Consumer Response was initially developed in the 1990's for the following industry:

A)Fashion
B)Grocery
C)Small Electronics
D)Automobile

Question 24

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)Kanban System
B)Semaphore System
C)Keiretsu Network
D)TQM Network

Question 25

Which of the following are among the MOST important elements of the lean production philosophy?

A)Quality inspections and a standardized product line
B)Fully automated assembly lines and a large supplier base
C)Large inventories and quality inspections
D)Waste reduction and continuous improvement

Question 26

Which of the following layouts is primarily designed to process parts,components,or jobs requiring the same or similar processing steps,saving duplication of equipment and labor:

A)Work centers
B)Production kanban
C)Work-in-process
D)Manufacturing Cells

Question 27

The Quick Response program,developed in the 1980's,was an offshoot of the following supply chain concept:

A)Efficient Consumer Response
B)Six Sigma
C)Just-in-Time
D)Cross Docking

Question 28

The common term across the seven wastes is:

A)Overspending
B)Keiretsu
C)Excess
D)Robust

Question 29

Lean production emphasizes all of the following EXCEPT:

A)Continuous improvement
B)Reduction of waste
C)Synchronization of material flows
D)Large batch sizes

Question 30

The following is a term that refers to error- or mistake proofing:

A)Kaizen
B)Muda
C)Lean layouts
D)Poka-yoke

Question 31

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)Baldrige
D)Crosby

Question 32

When compared to their U.S.counterparts,a benchmarking study found that Japanese auto manufacturers used:

A)Half the manufacturing labor
B)Half the space
C)Half the engineering hours to produce a new automobile model
D)All of the above
E)​None of these

Question 33

Which of the following is NOT one of the Seven Wastes?

A)Excess inventories
B)Environmental waste
C)Waiting time
D)Scrap and rework

Question 34

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)Kanban Networks
D)Kaizen Networks

Question 35

Which company probably played the largest role in the development of the Toyota Production System?

A)General Motors
B)Chrysler
C)Ford
D)Boeing

Question 36

Lean thinking is a philosophy incorporating tools which seek to economically optimize:

A)Human Resources
B)Assets
C)Productivity
D)All of these

Question 37

An integral part of Six Sigma is:

A)Firms committing to a program of continual reassessment and improvement
B)Using ABC analysis to divide on-hand inventory into three classes
C)Moving new products to market more quickly
D)Enterprise resource planning

Question 38

Calculate the inventory container size required given the following:
Demand rate = 10 parts per hour,Safety stock required = 15%
Number of containers = 14,Time to cycle through entire system = 6 hours

A)2 parts
B)3 parts
C)4 parts
D)5 parts

Question 39

Calculate the defects per million opportunities (DPMO)given the following:
Blake,owner of Blakester's T-shirt Shoppe,keeps track of customer complaints.For each T-shirt sold,there are four possible complaints: T-shirt shrinks,poor quality,design wears off,and doesn't fit right.Each week,Blake calculates the rate of T-shirt "defects" per total T-shirts sold,and then uses this information to determine his company's DPMO.During the past week,his company sold 1200 T-shirts.His company received 22 customer shrinkage complaints,16 poor quality complaints,12 design wears off complaints,8 doesn't fit right complaints.
Calculate his firm's DPMO.

A)69,600
B)0.193
C)5.8 x 10−⁶
D)12,083

Question 40

Which of the following is an example of how lean programs can help to protect the environment?:

A)Parts made from recycled material
B)Using rubber from used tires in auto parts
C)Batch size reduction to reduce plastics
D)All of these

Question 41

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)Cause-and-Effect Diagrams
D)Fishbone Diagrams