C722 Supply Chain Management Operations

A customer at a restaurant orders a hamburger without ketchup and receives it, but the hamburger is undercooked. The customer makes a complaint. The store manager apologizes, returns the customer's money, and gives the customer a coupon for a free meal.

Which phase of the DMAIC methodology should the store manager use first to identify and analyze this quality problem?

Define the problem statement.

What are the differences between DMAIC and DMADV? Select all that apply.

DMADV is for new products

The last 2 steps in each process

Patty is a manager at a manufacturing company and is responsible for improving quality. She manually inspects machines daily to ensure proper function and to check for defects. After 1 month of intense training with her employees, Patty delegated the responsibility of inspecting the machines to her employees to involve them in the decision making process. What continuous improvement strategy did Patty use?

Employee empowerment

If an attorney gives quick and accurate information to convey trust, what type of service quality is being demonstrated?

Assurance

A car manufacturing company wants to improve quality. However, the car manufacture FIRST needs to determine the most important factors that affect the quality of its products. Which tool should the car manufacturer use?

Check sheets

In which stage of the DMAIC process is the current process performance accomplished with a process map to reflect the company's current state.

Measure

Ford Motor company manufactures its automobiles perfectly and according to specification. Which product characteristic does this example most accurately reflect?

Conformance

A secondary Six Sigma methodology specifically for new products is called what?

DMADV

__________ emphasized "do it right the first time" and ____________ focused on improving constantly and forever.

Crosby and Deming

Which philosopher developed quality circles and the cause-and-effect diagram?

Ishikawa

A manufacturing company is using DMAIC to manage a quality problem. During which stage of DMAIC will the company address the root causes of variation that have been identified in a process?

Improve

Banks process checks one after another without changing methods. What process selection is this an example of?

Continuous flow

Product-oriented layout is characterized by high demand for the same or similar products. Another name for this layout is?

Sequential Layout

An automobile manufacturer has just built its first assembly factory in the United States based on increased demand from customers in the United States. The manufacturer intends to serve the entire U.S. market with this factory. Many of the suppliers for the U.S. factory are near the manufacturer's other plants in India. The new U.S. factory enables the manufacturer to use many more robots to assist in the assembly of automobiles. Which two location factors were important influences in building this new factory? Choose 2 answers

Labor productivity

Close to customers

Krispy Kreme Doughnuts makes 2000 of 4 different types of doughnuts a week. Each time a new kind of doughnut is produced, they change the equipment to produce in consistent high volume. What type of process is Krispy Kreme using?

Batch flow

GREAT Animations build high performance computers. They customize these computers for large movie studios and a small market of independent film makers. Based on this information, which process strategy is best for GREAT Animations?

Job shop

A audio company produces 200 units a month and sale each unit for $1200. Material cost is $400 dollars and the labor cost is $200 dollars per unit. Fixed cost is $240,000 per month. What would be the minimum capacity required per month to maintain the throughput and operating expense of this company?

400

A company makes garage door tracks for residential and commercial customers. The production manager prefers to run all the footage for residential requirements first each day and then change over for the commercial size after the residential orders are completed. The tooling is changed back to the residential size before the end of business each day. Which process strategy is this company using?

Batch processing with some product variety on moderately flexible equipment

WGU can enroll 325 students monthly. However, due to the ratio of availability of enrollment counselors and potential students they can only enroll 266 students. On average, 250 students are in enrolled monthly. In order, what is the design capacity, effective capacity, capacity utilization, and efficiency rate?

325, 266, 77%, 94%,

A mask producer has conducted research and believes another pandemic will occur within the next two years. The company expects a 30% increase in mask sales over the next five years and plans to produce a stockpile of inventory. Which capacity planning strategy is the mask producer using?

lead

A cold weather apparel store sold 1,000 snow boots annually in the previous years. On average, 350 units were sold in Q1, 200 units in Q2, 100 units in Q3, and 300 units in Q4.

What is the seasonal factor (index) for Q2 and Q4?

0.8 and 1.2

Haywood manufacturing has an annual forecast of 1,000 White Bottom Lady Love Heels. The seasonal index for each quarter are as follows: 1.2 in Q1. 0.6 in Q2, 0.5 in Q3, and 1.1 in Q4.

300 and 125

A purchasing manager is responsible for vendor-managed hardware inventory at a client's office chair production facility. The manager notices that ½-inch bolts are out of stock and need immediate replenishment. As the purchasing manager looks over the past usage, it is noticed that more bolts are being used on Tuesday each week than any other day of the week. Therefore, the manager decides to bump up the inventory replenishment for Monday by 50%. Which forecasting method did the manager use to make this decision?

Weighted moving average

Haywood manufacturing is expecting a slowdown in production for the next three months. After the slowdown, the Production Manager plans to see a 20% increase in demand due to the holiday season and is afraid that he may not have enough staff. What can the production manager do to run efficiently during the slowdown and holiday season?

Use chase demand scheduling and a weighted moving average to schedule holiday workers

What does the master production schedule determine for the company's products?

How much to produce and when to produce

The master production schedule has a product whose longest lead time item is 12 weeks. However, all other materials are received in 6 weeks. What should be the time fence for the master production schedule?

12 weeks

An appliance manufacturing company is evaluating the use of a forecasting method that covers a long period of time and takes into consideration population changes, income change, and other social factors that affect data dispersion. Which forecasting method should the company use?

trade analysis

A company matches its production schedule to its customer orders to keep inventory costs low. Which production planning strategy is the company using?

Chase demand

A television production company needs to order 1000 control boards from a vendor so they can produce the televisions by month end. What does the television production company need to know to ensure the parts arrive when they are needed?

Lead time

A cellphone producer is planning to produce 2 million cellphones over the next 2 years. Several departments are involved in the process. Which planning system should be used to integrate different functional areas within the organization?

MRP II

A technology company receives an order for 2000 calculators. If the company decides to produce the chips for the calculator in-house, what will authorize this?

Shop order

A technology company receives an order for 2000 calculators. If the company decides to outsource the chips for the calculator to be produced by a supplier, what will authorize this?

Purchase order

Haywood manufacturing receives a customer order for 200 pairs of Boss Lady Special Edition. The forecast was for 180 pairs. The projected inventory is 50. What amount will be on the MPS?

250

The CEO of a large manufacturing company is aware of impending financial problems, but this has not been disclosed to the board of directors.

What can correctly be said of the CEO's lack of disclosure?

It is an unethical decision.

A company is trying to determine what are the value-added activities and non-value-added activities in their JIT process. What technique should the company use to improve production efficiency?

Value Stream Mapping

Which two items are considered waste in a just in time environment? Choose all that apply

Over-processing

Defective products

Inventory

A company is attempting to understand how many different people in departments are involved in this production process. The company is creating a value stream map. The company is currently estimating the cost in timing at each point in the production process as well as the value added. What is the next step in creating a value stream map?

assessing where the waste is occurring

What is the difference between JIT and a traditional inventory system?

The timing of the flow of inventory through each system.

Company P decides to implement JIT. Now, when there is a need for more inventory, barcodes are scanned and digital signals are sent to appropriate parties to authorize replenishment and delivery of new parts. What type of system is Company P using?

Electronic Kanban

What production system uses general purpose machinery and is level scheduled?

JIT

The danger of differing service levels from one customer to another is known as _____________.

inconsistency

Petes Diamonds creates multiple products each day using the same equipment. If Pete's Diamonds uses JIT, what should be used to balance production of the products produced?

Level scheduling

A company has little or no inventory a problem with the flow of work becomes immediately apparent to everyone because the work center must shut down for lack of materials. Attention is focused on the problem and all effort is devoted to solving this problem. Which inventory system is the company using?

just in time

Wal-Mart has a challenging time managing the inventory of their Coca-Cola products. Wal-Mart and Coca-Cola strengthen their relationship and Coca-Cola hires an employee to work with Wal-Mart employees in their purchasing department. What strategy is Wal-Mart and Coca-Cola using?

Just in time II

Krispy Kreme Doughnuts makes 2000 doughnuts a day. Where is the bottleneck?

Baking the doughnuts

Mike calls his wife, Carrie, and asks her what she would like for dinner. Carrie tells him that she will ask the kids and get back to him. Carrie calls the kids, but the kids couldn't care less about dinner. Carrie is now frustrated. Where is the bottleneck?

Carrie

A company is trying to solve a problem in their manufacturing facility. They use TOC to solve the problem. They just ensured the bottleneck is at 100% capacity utilization. Based on the Theory of Constraints, what is the firm accomplishing?

Exploit the system's constraint

Krispy Kreme Doughnuts makes 2000 of 4 different types of doughnuts a week. These doughnuts are picked up daily by XYZ Trucking to deliver to the appropriate party. What type of system is Krispy Kreme using?

Third Party Logistics (3PL)

A manager at Company X noticed that they are consistently low on inventory for specific products. He recommends they partner with the supplier to determine how to improve their inventory levels. The supplier agrees and Company X begins to share POS data with the supplier. Based on this information, which strategy is Company X implementing?

Vendor Managed Inventory

An electric company wants to increase service reliability by building new high-voltage wiring. Because service improves for other electric companies on the same grid, the company partners with other companies to plan routes and finance construction. Which supply chain integration strategy is the electric company using?

Strategic alliance

A computer company sells damaged products to another company, who refurbishes and sells the products. Which answer is the most appropriate reflection of this example?

Reverse logistics

Which is an advantage of forming a strategic alliance?

It reduces financial risk.

A folding chair manufacturer continues to make the same five chairs it has made for the past 15 years. It has worked to minimize inventory throughout the supply chain by sharing information with component suppliers and continuous improvement. Which supply chain integration strategy is the chair manufacturer using?

Lean supply chain

Wal-Mart has worked with Supplier X for 35 years. However, after hiring a new Supply Chain Manager, Wal-Mart decides to move forward and acquire Supplier X for 2.6 billion dollars. Wal-Mart essentially implemented_________.

Backward Vertical Integration

Apple wants to release a new apple watch. They would like the watch designed quickly to have it on the market over the next few weeks. Which supply chain strategy is most appropriate?

Agile

Apple wants to release a new apple watch. They would like the watch designed quickly to have it on the market over the next few weeks. However, Apple does not have enough employees to produce the watches. What type of bottleneck is Apple experiencing?

Labor