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

Question 1

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.

Answer 1

True

Question 2

A lean system is also known as a push system.

Answer 2

False

Question 3

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

Answer 3

True

Question 4

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 5

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

Question 6

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

Question 7

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

Question 8

For a certain loaf of bread it was found that it measured 16 inches in length,4 inches in height,and 4 inches across,it was also found to weigh 1 pound; all of these measures can be considered attribute data.

Question 9

Carbon neutral organizations do not produce any carbon emissions.

Question 10

Six Sigma is a quality improvement concept developed by Motorola.

Question 11

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 12

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

Question 13

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

Question 14

According to the text,in supply chain,the term lean has begun to replace the term JIT.

Question 15

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 16

Manufacturing layouts for an organization practicing lean manufacturing principles seek to maximize operator visibility,maintain an effective and efficient flow of people and materials,and minimize the distance that work in process must travel from one processing center to another processing center.

Question 17

One of the primary elements of lean is keiretsu relationships.

Question 18

Efficient Consumer Response and Keiretsu Relationships are supply chain concepts concerned with speed and flexibility.

Question 19

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

Question 20

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 21

The element of lean involving firms working with buyers and customers with the mutual goal of eliminating waste,improving speed,and improving quality is referred to as:

A) Waste reduction
B) Lean supply chain relationships
C) Lean layouts
D) Continuous improvement

Question 22

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

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

Question 23

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 24

Successful supply chains evolve through stages; the following stage is characterized by an emphasis on cost reduction:

A) Internally Focused
B) Functional Integration
C) Internal Integration
D) External Integration

Question 25

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

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

Question 26

Modern supply chains simultaneously pursue the goals of high-quality,fast response,and low cost because customers nowadays want both high levels of quality and responsiveness.A key manufacturing philosophy that emphasizes waste elimination and minimizing inventories to expose problems is:

A) Just-in-time
B) Quick Response
C) Efficient Consumer Response
D) Total Quality Management

Question 27

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 28

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 29

While the philosophy of Six Sigma means different things to different people and is practiced differently in different companies,according to the textbook,two of the more important and agreed-upon elements of Six Sigma are:

A) Minimizing inventories and increasing material flow
B) Focusing on the customer and workforce involvement
C) Rewarding employees and keeping defect rates below 2%
D) Minimizing inventories and keeping defect rates below 1%

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

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 32

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

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

Question 33

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 34

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 35

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 36

Successful supply chains evolve through stages; the internally focused stage is characterized by all of the following EXCEPT:

A) Functional silos
B) Top-down management
C) Long-term planning
D) Internal measures used to monitor performance

Question 37

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 38

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 39

All of the following are included in the seven wastes EXCEPT:

A) Overproducing
B) Overprocessing
C) Overspending
D) Waiting

Question 40

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 41

List THREE of the statistical tools of Six Sigma.

Question 42

Why is the workforce considered such an important element of lean production?

Question 43

A company sells eggs in boxes with 12 cartons and 12 eggs in each carton,thus there are 144 eggs in each box.The organization wants to construct a P-chart to track the proportion of broken eggs in each sample.If the company used one box of eggs in each sample in the dataset,what would be the centerline,upper control limit(UCL),and lower control limit(LCL)for the appropriate P-chart? (Use z = 3.)Choose the closest answer.

A) Centerline = 0.50, UCL = 0.625, LCL = 0.375
B) Centerline = 0.025, UCL = 0.64, LCL = 0
C) Centerline = 0.30, UCL = 0.70, LCL = 0
D) Centerline = 0.083, UCL = 0.152, LCL = 0.014

Question 44

A company that produces 8 pound bags of rice 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?

A) All of the following numbers: 8.33, 8.22, 8.08, 8.51, 8.41, 8.28
B) All of the following numbers: 8.34, 8.22, 7.77, 8.18, 8.13
C) Only 8.130
D) Only 8.305

Question 45

Discuss the linkages between lean production and environmental sustainability.

Question 46

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

Question 47

What are the TWO primary techniques/philosophies discussed in Chapter 8 that are used to manage processes in the supply chain such that they'll meet the needs of customers today.Provide the prime objectives for each of the two techniques/philosophies.Also,for each technique,provide three elements used to achieve the prime objectives.

Question 48

According to the text,the ability to satisfy customer expectations can be referred to simply as:

A) Reliability
B) Lean Six Sigma
C) Quality
D) Durability

Question 49

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 50

There are four stages in supply chain management evolution.What is the last stage of supply chain management evolution? List two characteristics of this stage:

Question 51

Provide an overview of the beliefs of each of the following quality professionals:
W.E.Deming
Philip Crosby
Joseph Juran

Question 52

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