Question 1

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.) $\begin{array}{|cc|cc|cc|} \hline \text { Sample } & \text { Errors } & \text { Sample } & \text { Errors } & \text { Sample } & \text { Errors } \ \hline \mathbf{1} & 6 & \mathbf{8} & 6 & \mathbf{1 5} & 5 \ \mathbf{2} & 5 & 9 & 4 & 16 & 1 \ \mathbf{3} & 3 & \mathbf{1 0} & 9 & 17 & 2 \ \mathbf{4} & 4 & \mathbf{1 1} & 2 & \mathbf{1 8} & 6 \ \mathbf{5} & 5 & \mathbf{1 2} & 6 & \mathbf{1 9} & 2 \ \mathbf{6} & 4 & \mathbf{1 3} & 5 & \mathbf{2 0} & 7 \ 7 & 2 & \mathbf{1 4} & 4 & \text { TOTAL } & \mathbf{8 8} \ \hline \end{array}$ SHOW YOUR CALCULATIONS a. Determine . $\bar{P}$ b. Determine σ_P. c. Determine the 3-sigma UCL and LCL.Does the process appear to be in statistical control?

Accepted Answer

a.Determine $\bar{P}$ 88/2000 = 0.044 or 4.4% b.Determine σ_P. σP = $\sqrt{\frac{(\bar{P})(1-\bar{P})}{n}}$ = $\sqrt{\frac{.044(0956)}{100}}$ = 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 $\bar{P}$ ; probably in control.Should create a graph to look for patterns.

Question 2

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

Accepted Answer

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 C

Question 3

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

Accepted Answer

?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.

Question 4

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

Accepted Answer

A) True 
 B)False

Question 5

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?

Accepted Answer

A)  Juran
B)  Deming
C)  Baldrige
D)  Crosby

Question 6

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

Accepted Answer

A) True 
 B)False

Question 7

Lean production emphasizes all of the following EXCEPT:

Accepted Answer

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

Question 8

A lean system is also known as a push system.

Accepted Answer

A) True 
 B)False

Question 9

Six Sigma is a quality improvement concept developed by IBM.

Accepted Answer

A) True 
 B)False

Question 10

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

Accepted Answer

A) True 
 B)False

Question 11

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

Accepted Answer

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 12

Briefly explain THREE of the statistical tools of Six Sigma.

Accepted Answer

The answer of Briefly explain THREE of the statistical tools...

Question 13

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

Accepted Answer

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

Question 14

An integral part of Six Sigma is:

Accepted Answer

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 15

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?

Accepted Answer

A)  Jidoka Networks
B)  Keiretsu Networks
C)  Kanban Networks
D)  Kaizen Networks

Question 16

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:

Accepted Answer

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

Question 17

?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? $\begin{array}{|l|}
\hline \quad \quad \quad \quad \quad \quad \quad\text { Bag Number of each sample }\
\hline\begin{array}{c|cccccc}
 \text { Sample } & \mathbf{1} & \mathbf{2} & \mathbf{3} & \mathbf{4} & \mathbf{5} & \mathbf{6} \
\mathbf{1} & 7.98 & 8.34 & 8.02 & 7.94 & 8.44 & 7.68 \
\mathbf{2} & 8.33 & 8.22 & 8.08 & 8.51 & 8.41 & 8.28 \
\mathbf{3} & 7.89 & 7.77 & 7.91 & 8.04 & 8 & 7.89 \
\mathbf{4} & 8.24 & 8.18 & 7.83 & 8.05 & 7.9 & 8.16 \
\mathbf{5} & 7.87 & 8.13 & 7.92 & 7.99 & 8.1 & 7.81 \
\hline
\end{array}
\end{array}$

Accepted Answer

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 18

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

Accepted Answer

A) True 
 B)False

Question 19

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

Accepted Answer

A) True 
 B)False

Question 20

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.

Accepted Answer

A) True 
 B)False

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

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

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

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

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?

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

Lean production emphasizes all of the following EXCEPT:

A lean system is also known as a push system.

Six Sigma is a quality improvement concept developed by IBM.

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

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

Briefly explain THREE of the statistical tools of Six Sigma.

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

An integral part of Six Sigma is:

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?

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

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

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.