Question 1

Which of the following researchers are associated with screening designs of experiments?

Accepted Answer

Plackett & Burman are associated with screening designs of experiments.
Key Takeaway: Screening designs are a type of experimental design whereby a large number of possibly contributing factors are screened. The goal of screening designs is to initially include all possible factors that could affect the dependent variable and then narrow them down into a manageable, testable number of factors. Narrowing down these factors after screening increases the power of tests.

Question 2

In the manufacturing floor of Quest industries, large white posters are used to signal the need for the line manager to begin quality assurance. What is this concept referred to?

Accepted Answer

This concept is referred to as kanban.
Key Takeaway: Kanban is a concept developed by the Japanese businessman Taiichi Ohno. Kanban is a signaling system that triggers some business or industrial action. In this example, the use of large white posters to begin quality assurance is an example of Kanban.

Question 3

SMED is a lean manufacturing concept that is used to reduce waste in the manufacturing process. What does the E stand for?

Accepted Answer

The E in SMED stands for exchange.
Key Takeaway: Single Minute Exchange of Die (SMED) is a lean production concept that is designed to reduce waste in manufacturing processes. The goal of SMED is to increase the efficiency of converting production from one product to another. This increase in efficiency is done by improving the flow of resources through the production line and decreasing production lot sizes.

Question 4

Poka-Yoke is a Japanese term in lean manufacturing processes which means:

Accepted Answer

Poka-Yoke means mistake-proofing.
Key Takeaway: Mistake-proofing is a lean manufacturing concept that focuses on human errors in processes. The goal of mistake-proofing is to help an equipment operator recognize and avoid mistakes that occur during processes.

Question 5

The fundamental assumption behind the Theory of Constraints (TOC) is that organization can measure and improve upon control: throughput, operating expense, and ______.

Accepted Answer

The fundamental assumption behind the Theory of Constraints (TOC) is that organization can measure and improve upon control: throughput, operating expense, and inventory.
Key Takeaway: The Theory of Constraints is based on the principle that an organization's processes are limited by at least one constraint. These constraints could be limitations in operating expenses or the overabundance of inventory.

Question 6

Waste reduction in processes has been one of the earliest lean manufacturing initiatives. Which of the following Americans can be credited with its first forms?

Accepted Answer

Henry Ford was an American credited with the first forms of waste reduction.
Key Takeaway: Waste reduction in process has been one of the earliest lean manufacturing concepts and would make a strong presence in later Six Sigma philosophy. Henry Ford was one of the first businessmen to introduce and implement waste reduction initiative in production facilities in order to increase the efficiency of processes and to save costs.

Question 7

Google is a company that encourages employee autonomy in decision making and has few hierarchical structures. In this environment, delegation of tasks are encouraged and controls over employee initiatives are loose. What type of organizational structure is this?

Accepted Answer

This is a flat type of organizational structure.
Key Takeaway: Unlike a tall organizational structure with multiple hierarchies of middle and senior management, a flat structure has few of these hierarchies. Employees in a flat structure are allowed more autonomy in their decision-making and encourage to delegate tasks. A company such as Google with a large staff of highly creative and self-driven technical individuals has a flat structure in order to allow employees to remain at the forefront of innovation.

Question 8

Nave Inc. is implementing a wide range of organizational changes that would impact employees' roles and responsibilities in a significant manner. Amongst the greatest impact is the work structure and hours. Which one of the following is the MOST likely way that employees would 'buy-in' into the changes?

Accepted Answer

Providing all employees with comprehensive change is the most likely way that they would 'buy-in' to the changes.
Key Takeaway: For employees to 'buy-in' into organizational changes, it is important that they are provided with comprehensive information about the changes and how they will affect their roles and responsibilities. Organizational changes are least likely to happen when employees are forced or information limited to senior management.

Question 9

Which of the following steps is NOT a component of the decision making process in business or manufacturing?

Accepted Answer

Evaluation of a past project is not a component of the decision making process.
Key Takeaway: In decision making, it is important to follow a certain number of steps in order to reach an optimally beneficial decision. The first step is to list alternative courses of action, followed by a listing of uncertain events or outcomes. The next steps are to determine consequences for choosing certain combinations of events and then adopting decision criteria for choosing the best course of action.

Question 10

In the Expected Opportunity Loss (EOL) equation, what does the Pi stand for?

Accepted Answer

The Pi in the EOL equation stands for Probability.
Key Takeaway: Opportunity loss is the difference between an actual return from an action or a decision and the highest possible return, given a particular event. For example, if a venture has a highest possible return of 2 million dollars and yet manages to return an actual amount of 1.8 million dollars, the opportunity loss is $200,000. To calculate the Expected Opportunity Loss (EOL), it is important to determine the probability of the particular event.

Question 11

Adam is a Black Belt practitioner commissioned to conduct PEST analysis in an organization. What does the S stand for in this type of analysis?

Accepted Answer

The S stands for Social in PEST analysis.
Key Takeaway: Political, Economic, Social, and Technological (PEST) analysis is a type of macro-environmental analysis done in organizations. The purpose of PEST analysis is to determine factors such as tax and environmental laws, economic growth, population growth rate, and climate change. All these factors are important for a business to sustain or expand its operations in a given setting.

Question 12

Sam's Technologies Inc. produces computer chips for large medical and technological corporations. To determine the number of defective chips from each batch of inspected products, what type of chart should the managers use?

Accepted Answer

The managers should use a P chart.
Key Takeaway: A P chart is a control chart for proportions that shows the proportion of defective or differing items during an inspection of products. To construct a P chart, managers must count the number of defective chips and divide it by the overall number of charts produced. During an inspection, each chip is classified as either 'defective' or 'non-defective'. With a P chart, you can use equal or unequal sample sizes.

Question 13

A C chart is a control chart for the number of nonconformities per area of opportunity. An assumption made when constructing a C chart is that:

Accepted Answer

An assumption made when constructing a C chart is that the size of each area of opportunity remains constant.
Key Takeaway: A C chart is constructed to track the number of nonconformities (also known as occurrences) per area of opportunity. For example, a software developer may need to track the number of errors per page of code. Unlike other control charts, the size of the area of opportunity must remain constant.

Question 14

Why must an R chart be constructed first before an X-bar chart preceded when monitoring a process mean?

Accepted Answer

An R chart is constructed first before an X-bar by an R chart when monitoring a process mean to make sure that the process is in control.
Key Takeaway: An X-bar chart displays the means of consecutive samples that are drawn over time. This type of chart must be preceded by an R chart to make sure that the process is in control.

Question 15

The following are tools in Statistical Process Control (SPC) EXCEPT:

Accepted Answer

Enterprise resource planning is not a tool in Statistical Process Control.
Key Takeaway: Statistical Process Control (SPC) is the application of statistical methodology study and control processes. While SPC has been traditionally used in manufacturing whereby processes have been followed so that they produced products with as little variation as possible, they have also been used whenever there was an output. SPC uses a number of tools included control charts and experiments.

Question 16

The main difference between run charts and control charts is that:

Accepted Answer

The main difference between run charts and control charts is that run charts do not display process control limits.
Key Takeaway: A run chart display collected data over a period of time. For example, if the number of customers that frequent a website is collected over 3-hour increments, a run chart can be constructed from the data gathered. Unlike control charts, run charts do not display process control limits such ±2 standard deviations around the mean. Run charts simply display the recorded data over time which shows trends.

Question 17

Dean's management team is conducting measurements to quantify the manufacture of brakes for a European car company. The Cp value is calculated at greater than1.33. Which of the following statements is NOT correct about the Cp?

Accepted Answer

A Cp index value does not indicate that the process is capable in the long-term.
Key Takeaway: Short-term capability indices provide a quantifiable measurement of how capable a process is in the short-term. A Cp value greater than 1.33 indicates that a process is capable in the short-term. The Cp value is simply the distance between the upper specification limit and the lower specification limit.

Question 18

Ramirez Manufacturing is committed to training their machine operators in the maintenance and upkeep of the units on which they work. In lean manufacturing, what is this concept referred to?

Accepted Answer

This concept is referred to as TPM.
Key Takeaway: Total Productive Maintenance (TPM) is a concept in lean manufacturing which assigns the maintenance and upkeep of machines to the operators who work on them. The goal of TPM is to make this maintenance the responsibility of one person who would be accountable to management for the well-being of the machine and its productivity.

Question 19

The following are components of Operational Excellence in manufacturing EXCEPT:

Accepted Answer

Introducing multiple layers of middle management is not a component of Operational Excellence.
Key Takeaway: Operational Excellence is a management philosophy that emphasizes the roles of leadership and problem-solving in the continuous improvement of an organization. This philosophy is designed to empower employees rather than introducing multiple layers of middle management while focusing on the needs of the customers. The goal of the philosophy is to also optimize current activities and processes and provide employees with continuous training.

Question 20

In business process improvement, managers are encouraged to apply the PDCA problem-solving process. What does the C stand for in PDCA?

Accepted Answer

The C stands for Check.
Key Takeaway: The PDCA process in problem-solving stands for Plan-Do-Check-Act. The goal of PDCA is to use the scientific method to plan a course of action and then implement it. Once implemented, it is important to check if it has been effective. The final part is to analyze the effectiveness of the plan.

Quiz 1: Black Belt