BUSOBA 3230 Final Exam | Questions with Verified Answers

BUSOBA 3230 Final Exam | Questions with Verified Answers Any set of activities performed by an organization that takes inputs and transforms them into outputs ideally of greater value to the organization than the origi ...

BUSOBA 3230 Final Exam | Questions with Verified Answers Any set of activities performed by an organization that takes inputs and transforms them into outputs ideally of greater value to the organization than the original inputs. Process The average time between completions of successive units in a process Cycle Time The ratio of the time that a resource is actually activated relative to the time that it is available for use. Utilization A ______________ process is activated only in response to an actual order. Inventory (both WIP and FG) is kept to a minimum. make-to-order In a _________________ process, the customer is served "on-demand" from finished goods inventory make-to-stock Often times when demand is seasonal, a _________________ process is used. make-to-stock A hybrid process combines features of make-to-order and make-to-stock Movement of items through a process is coordinated through a timing mechanism. Pacing A measure of how well resources are used. According to Goldratt's definition (see Chapter 23), all the actions that bring a company closer to its goals. Productivity A ratio of the actual output of a process relative to some standard Efficiency Being _______________-means doing something at the lowest possible cost. Efficient Which performance measurement term can also be used to measure the loss or gain in a process? Efficiency The time required to produce a batch of parts. run time The time required to prepare a machine to make a particular item. setup time The sum of the setup time and run time for a batch of parts that are run on a machine. operation time The average time it takes a unit to move through an entire process. flow time The output rate that the process is expected to produce over a period of time. throuput rate The ratio of the value-added time to the flow time Process Velocity (Throughput Ratio) The time in which useful work is actually being done on the unit. value-added time The total average investment in raw material, work-in-process, and finished goods inventory. Total average value of inventory A measure of the expected number of times inventory is replaced over a year. Inventory turn The number of days of inventory of an item. Days-of-supply Managing the entire organization so it excels in all dimensions of products and services important to the customer. Total quality management (TQM) An award established by the U.S. Department of Commerce in 1987 is given annually to companies that excel in quality. Malcolm Baldrige National Quality Award The inherent value of the product in the marketplace. design quality List the 6 dimensions of design quality 1. performance 2. features 3. reliability/durability 4. serviceability 5. aesthetics 6. perceived quality The degree to which the product or service design specifications are met. conformance quality The philosophy of making workers personally responsible for the quality of their output. Workers are expected to make the part correctly the first time and to stop the process immediately if there is a problem. quality at the source Expenditures related to achieving product or service quality, such as the costs of prevention, appraisal, internal failure, and external failure. cost of quality A statistical term to describe the quality goal of no more than 3.4 defects out of every million units. Also refers to a quality improvement philosophy and program. six sigma DPMO describes the _____________ of a process Variability DMAIC stands for Define, Measure, Analyze, Improve, Control Combines the implementation and quality control tools of Six Sigma and the inventory management concept of lean manufacturing. Lean Six Sigma In terms of Six Sigma Roles, there are ______________________, who are truly committed to Six Sigma and who promote it throughout the organization, and ____________, who take ownership of the processes to be improved. executive leaders, champions Individuals with sufficient Six Sigma training to lead improvement teams. Black belts Individuals with in-depth training on statistical tools and process improvement. Master black belts Employees who have enough Six Sigma training to participate in improvement teams. green belts The Shingo System: Fail-Safe Design -SQC methods do not prevent defects -Defects arise when people make errors -Defects can be prevented by providing workers with feedback on errors >Successive check >Self-check >Source inspection Simple practices that help prevent errors. fail-safe procedures Procedures that prevent mistakes from becoming defects. They are commonly found in manufacturing but also can be used in service processes. poka yokes Formal standards for quality certification developed by the International Organization for Standardization. ISO 9000 The ________________ family of standards on environmental management addresses the need to be environmentally responsible ISO 14000 Looking outside the company to examine what excellent performers inside and outside the company's industry are doing in the way of quality. External benchmarking Deviation in the output of a process that can be clearly identified and managed assignable variation Deviation in the output of a process that is random and inherent in the process itself. Common/random variation The range of values in a measure associated with a process that is allowable given the intended use of the product or service. Upper and lower specification limits Warranty cost is an example of? external failure Using the costs of failure identified in this course, how would you describe the cost of the quality problem at Jenis in the summer of 2015? internal failure T or F: Since Volkswagen, Chipotle, Ford, and Jeni's dealt with quality issues, they likely do not have an ISO 9000 certificate. False Why do we use cause-and-effect diagrams? They help to find the root cause of a problem, not symptoms In SPC, should we focus more on accuracy or precision? Why? Precision; high precision means low variability _________________ variation can be removed and/or lessened but requires a fundamental change on the processes. _________________ variation can be removed and/or lessened by basic process controls and monitoring. common cause, special cause T or F: special cause variation is less costly to reduce than common cause variation. True Your job is to inspect wine glasses. Every day you inspected 10 boxes of wine glasses (6 glasses per box) and on average you find 5 broken glasses. What is the sample size? 60 What are the 4 most important considerations in creating a process control chart using variable measurements? 1. size of samples : smaller sample size preferred (less costly) 2. number of samples (about 25 should be analyzed to set up the chart) 3. frequency of samples 4. control limits T or F: as long as the lot size is several times the sample size, it makes little difference how large the lot is. True Techniques for testing a random sample of output from a process to determine whether the process is producing items within a prescribed range. Statistical process control (SPC) Quality characteristics that are classified as either conforming or not conforming to specification. Attributes Quality characteristics that are measured in actual weight, volume, inches, centimeters, or other measure. Variables If LCLp is negative number, we set the LCLp = 0. Why? Because negative proportion does not make any sense and does not exist. According to Eli Goldratt, the goal of the firm is to make money Eli Goldratt developed __________________, which is based on separation of bottleneck and nonbottleneck operations Optimized Production Technology List the 4 main steps of the theory of constraint 1. identify the bottleneck 2. Exploit 3. Subordinate 4. Elevate A production process coordinated to work in harmony to achieve the goals of the firm. Synchronous manufacturing TOC vs Six Sigma and Lean Manufacturing Six Sigma and lean focus on whole process, TOC focuses on weak link/bottleneck List the three main financial performance measurements 1. net profit 2. ROI 3. cash flow List the three main operational performance measurements 1. Throughput 2. Inventory 3. Operating Expenses The rate at which money is generated by the system through sales (Goldratt's definition). Throughput All the money that the system has invested in purchasing things it intends to sell (Goldratt's definition). Inventory All the money that the system spends to turn inventory into throughput (Goldratt's definition). operating expenses A measure of how well resources are used. According to Goldratt's definition (see Chapter 23), all the actions that bring a company closer to its goals. productivity In terms of operations, the goal of the form is to increase ________________ while decreasing _____________ and _______________. throughput, inventory, operating expenses T or F: High productivity indicates for certain that a firm is bringing in a high amount of money. False; high output but firm is not necessarily selling this output When _____________ is balanced, capacity is unbalanced. Flow The time lost when a dependent process (resource) is idle (when the process must what for the preceding process to finish) _____________(can/cannot) be made up. Cannot *this dependent resource may process the materials is receives from the preceding resource quickly, but once its finished it will again have to wait. It cannot keep working to makeup for the lost time; it will have nothing to work on at this point. A bottleneck resource will have a ___________ (lower/higher) processing time than the resource that comes before it. higher (slower) A resource that limits the capacity or maximum output of the process. Bottleneck A resource whose utilization is close to capacity and could be a bottleneck if not scheduled carefully (Goldratt's definition). Capacity-constrained resource (CCR) Why do we want a bottleneck to exist in a system? To avoid excess capacity The time that a part spends waiting for a resource to be set up to work on this same part setup time The time that the part is being processed processing time The time that a part waits for a resource while the resource is busy with something else queue time The time that a part waits not for a resource but for another part so that they can be assembled together wait time