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Supply Chain Management

Chapter 8—Process Management: Lean Production and Six Sigma Quality Issues in Supply Chain Management TRUE/FALSE 1. 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. ANS: F PTS: 1 2. Lean production and Six Sigma quality are essentially two terms that mean the same thing. ANS: F PTS: 1 3. Channel integration is a supply chain term which refers to how a manufacturing firm within a supply chain attempts to create strategic alliances not only with their immediate suppliers but also with the suppliers' suppliers and in the other direction not only reaching out to its immediate customers but also the customer's customers. ANS: T PTS: 1 4. 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. ANS: T PTS: 1 5. 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. ANS: F PTS: 1 6. The objective of the Deming Prize is to stimulate quality and productivity improvement among US firms. ANS: F PTS: 1 7. W. Edwards Deming and Shigeo Shingo were two of the notables who helped Toyota develop the Toyota Production System. ANS: T PTS: 1 8. 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. ANS: F PTS: 1 9. 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. ANS: T PTS: 1 10. The five S's refer to various safety activities practiced by Toyota. ANS: F PTS: 1 11. The primary design objective with lean layouts is to reduce wasted movements of workers, customers, and/or work-in-process ANS: T PTS: 1 12. Carbon neutral organizations do not produce any carbon emissions. ANS: F PTS: 1 13. Six Sigma is a quality improvement concept developed by Motorola. ANS: T PTS: 1 14. Deming's 14 points actually conflict with many Six Sigma concepts. ANS: F PTS: 1 15. 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. ANS: F PTS: 1 16. 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. ANS: T PTS: 1 MULTIPLE CHOICE 1. 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 ANS: A PTS: 1 2. 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 ANS: B PTS: 1 3. 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 value enhancement ANS: D PTS: 1 4. Which company probably played the largest role in the development of the Toyota Production System? a. General Motors b. Ford c. Chrysler d. Boeing ANS: B PTS: 1 5. 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 Pull System b. Semaphore System c. Keiretsu Network d. TQM Network ANS: A PTS: 1 6. 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 ANS: C PTS: 1 7. Which of the following is NOT one of Toyota's seven wastes? a. Excess inventories b. Environmental waste c. Waiting time d. Scrap and rework ANS: B PTS: 1 8. 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 ANS: A PTS: 1 9. 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% ANS: B PTS: 1 10. Calculate the number of inventory containers required, given the following: Demand rate = 10 parts per hour, Safety stock required = 15% Container size = 5 parts, Time to cycle through entire system = 6 hours a. 12 b. 13 c. 14 d. 15 ANS: C PTS: 1 11. 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 ANS: D PTS: 1 12. 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. 58 × 106 d. 12,083 ANS: D PTS: 1 13. 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 ANS: D PTS: 1 14. The ISO certification standard for environmental management is: a. ISO 9000 b. ISO 9005 c. ISO 14000 d. ISO 19000 ANS: C PTS: 1 15. 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. Bag Number Sample 1 2 3 4 5
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