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

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A Nevada Bank keeps track of errors from 20 clerks.Each sample has 100 records.They want to construct a P-chart to track the proportion of errors in each sample.The table below shows the number of errors per sample.(Use z = 3 for control limit calculations.)​​ Sample Errors Sample Errors Sample Errors 6 6 5 5 9 4 16 1 3 9 17 2 4 2 6 5 6 2 4 5 7 7 2 4 TOTAL ​SHOW YOUR CALCULATIONS a. Determine . Pˉ\bar{P} b. Determine σP. c. Determine the 3-sigma UCL and LCL.Does the process appear to be in statistical control?

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a.Determine Pˉ\bar{P} 88/2000 = 0.044 or 4.4%
b.Determine σP.
σP = (Pˉ)(1Pˉ)n\sqrt{\frac{(\bar{P})(1-\bar{P})}{n}} = .044(0956)100\sqrt{\frac{.044(0956)}{100}} = 0.02​
c.Determine the 3-sigma UCL and LCL.
UCL = .044 + 3(.02)= 0.105; LCL = .044 - 3(.02)= 0
d.Does the process appear to be in statistical control?
1 point close to UCL; half above and below Pˉ\bar{P} ; probably in control.Should create a graph to look for patterns.

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

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C

Describe SPC and Acceptance Sampling.What is the key difference between the two?

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?a.SPC - SPC stands for statistical process control.SPC is a statistical quality control method.SPC monitors quality during production through the use of statistical methods.
In other words,it is a way to monitor the quality being output by a process using statistical methods.SPC allows firms to visually monitor performance,compare the performance to desired levels or standards,and take corrective steps quickly before major errors are made and/or reach the customer.
b.Acceptance Sampling - Acceptance sampling is also a statistical quality control method.Acceptance sampling determines the quality of a finished batch of product based upon statistical methods using a sample of finished batch.
DIFFERENCE: While both SPC and acceptance sampling are statistical quality control methods,SPC monitors quality during production in the hopes of detecting defects early in the process and preventing continued production of defective product.Acceptance sampling,on the other hand,measures quality of finished products.Acceptance sampling is utilized only after processing is complete.In some cases,though,it may be the only statistical quality control method option,especially if the organization is purchasing product rather than producing it.

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

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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?

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

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Lean production emphasizes all of the following EXCEPT:

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A lean system is also known as a push system.

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Six Sigma is a quality improvement concept developed by IBM.

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

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

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Briefly explain THREE of the statistical tools of Six Sigma.

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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

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An integral part of Six Sigma is:

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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?

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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:

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?A company that produces 8 pound bags of cat litter gathered 5 samples of 6 bags each.The weights of each bags' contents are listed below.What would you plot on the x-bar chart for sample 2? -- SHOW YOUR WORK? Bag Number of each sample Sample 7.98 8.34 8.02 7.94 8.44 7.68 8.33 8.22 8.08 8.51 8.41 8.28 7.89 7.77 7.91 8.04 8 7.89 8.24 8.18 7.83 8.05 7.9 8.16 7.87 8.13 7.92 7.99 8.1 7.81

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

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

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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.

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