Management Chapter 9 Lean production approaches focus on the elimination

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subject Authors James R. Evans, William M. Lindsay

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Chapter 9: Process Improvement and Six Sigma
TRUE/FALSE
1. A structured problem-solving approach to process improvement ensures that solutions are developed
objectively, rather than based on opinions or rash judgments.
2. The fundamental premise of PDSA cycle is that improvement comes from the application of
knowledge.
3. Many organizations use the Deming cycle as the basis for their organizational performance
improvement activities.
4. The “do” stage in the PDSA cycle involves identifying problems.
5. The “plan” stage in the PDSA cycle involves determining whether the trial plan is working correctly
by evaluating the results.
6. DMAIC, a process improvement methodology bears a close resemblance to the creative problem
solving process.
7. The term six sigma is based on a statistical measure that equates to 4.3 or fewer errors or defects per
million opportunities.
8. An ultimate stretch goal of all organizations that adopt a Six Sigma philosophy is to have all critical
processes, regardless of functional area, at a six-sigma level of capability.
9. American Express pioneered the concept of Six Sigma as an approach to measuring product and
service quality.
10. Six Sigma is focused on improvement with little financial accountability whereas TQM requires a
verifiable return on investment and focus on the bottom line.
11. Compared to Six Sigma, TQM focuses on a more rigorous and advanced set of statistical methods.
12. Six Sigma is owned by business leader champions.
13. According to Kepner and Tregoe, a problem is a deviation between what should be happening and
what actually is happening that is important enough to make someone think the deviation ought to be
corrected.
14. Six Sigma methods are most applicable to conformance problems because the processes that create
the problems can be easily identified, measured, analyzed, and changed.
15. Projects are the vehicles that are used to organize and to implement Six Sigma.
16. In the context of a Six Sigma team, green belts are full-time Six Sigma experts who are responsible for
Six Sigma strategy, training, mentoring, deployment, and results.
17. The bottom-up way to generate six sigma projects is generally tied to business strategy and is aligned
with customer needs.
18. At each step, the Pareto diagram stratifies the data to more detailed levels, eventually isolating the
most significant issues in process improvement.
19. The “define” phase of the DMAIC process focuses on understanding process performance and
collecting the data necessary for analysis.
20. Data sheets are special types of data collection forms in which the results are interpreted on the form
directly without additional processing.
21. The vertical axis on a run chart is the time scale.
22. The cause-and-effect diagrams are constructed in a brainstorming type of atmosphere.
23. Lean production approaches focus on the elimination of waste in all forms, including defects requiring
rework.
24. Both Six Sigma and lean approaches are driven by customer requirements, focus on real dollar
savings, have the ability to make significant financial impacts on the organization, and can easily be
used in non-manufacturing environments.
25. Compared to lean tools, Six Sigma tools are more intuitive and easier to apply by anybody in the
workplace
MULTIPLE CHOICE
1. The _____ is a simple adaptation of the scientific method for process improvement.
a.
Juran quality trilogy
b.
Taguchi loss function
c.
Deming cycle
d.
quincunx experiment
2. Which stage of the PDSA cycle consists of studying the current situation, understanding customer
expectations, gathering data, and testing theories of causes?
a.
Act
b.
Do
c.
Plan
d.
Study
3. In which of the following stages of the PDSA cycle, the plan is implemented on a trial basis, such as in
a laboratory, pilot production process, or with a small group of customers, to evaluate a proposed
solution and provide objective data?
a.
Study
b.
Do
c.
Check
d.
Act
4. Which of the following stages of the PDSA cycle determines whether the trial plan is working
correctly by evaluating the results, recording the learning, and determining whether any further issues
or opportunities need be addressed?
a.
Study
b.
Do
c.
Plan
d.
Act
5. In which of the following stages of the PDSA cycle, the improvements become standardized and the
final plan is implemented as a “current best practice” and communicated throughout the organization?
a.
Study
b.
Do
c.
Plan
d.
Act
6. An effective problem-solving process that can easily be adapted to quality improvement stems from
_____ concepts pioneered by Alex Osborn.
a.
creative-problem solving
b.
cause-and-effect
c.
hypothesis testing
d.
analysis of variance
7. In which of the following stages of the FADE approach, a team selects the problem to be addressed
and defines it, characterizing the current state of the process, why change is needed, what the desired
result should be, and the benefits of achieving the result?
a.
Analyze
b.
Develop
c.
Focus
d.
Execute
8. In which of the following stages of the FADE approach, the team works to describe the process in
detail, determine what data and information are needed, and develop a list of root causes for the
problem?
a.
Execute
b.
Focus
c.
Develop
d.
Analyze
9. Which of the following stages of the FADE approach focuses on creating a solution and
implementation plan along with documentation to explain and justify recommendations to
management who must allocate the resources?
a.
Focus
b.
Analyze
c.
Execute
d.
Develop
10. In which of the following stages of the FADE approach, the solution is implemented and a monitoring
plan is established?
a.
Analyze
b.
Develop
c.
Focus
d.
Execute
11. Which of the following is the most widely-known process improvement methodology used in Six
Sigma?
a.
Quincunx
b.
FADE
c.
DMAIC
d.
TRIZ
12. The term _____ is based on a statistical measure that equates to 3.4 or fewer errors or defects per
million opportunities.
a.
Pareto analysis
b.
Six Sigma
c.
Quincunx
d.
Quality trilogy
13. What is the Six Sigma quality level when the process standard deviation is 1σ and the tolerance range
is 10 σ?
a.
5
b.
3
c.
9
d.
11
14. Which of the following categories of quality problems is characterized by unsatisfactory performance
that causes customer dissatisfaction, such as high levels of defects, service failures, or customer
complaints?
a.
Unstructured performance problems
b.
Conformance problems
c.
Product design problems
d.
Efficiency problems
15. Which of the following categories of problems is characterized by unsatisfactory performance that
causes dissatisfaction from the standpoint of noncustomer stakeholders, such as managers of financial
or supply chain functions?
a.
Product design problems
b.
Efficiency problems
c.
Unstructured performance problems
d.
Conformance problems
16. Which of the following categories of problems is characterized by unsatisfactory performance by
processes that are not well-specified or understood?
a.
Unstructured performance problems
b.
Efficiency problems
c.
Conformance problems
d.
Product design problems
17. In the context of a Six Sigma team, who among the following is typically a senior-level manager who
owns the Six Sigma project and is responsible for its completion and results?
a.
A black belt
b.
A champion
c.
A green belt
d.
A team member
18. In the context of Six Sigma teams, who among the following are full-time Six Sigma experts who are
responsible for Six Sigma strategy, training, mentoring, deployment, and results but, are typically not
members of Six Sigma project teams?
a.
Champions
b.
Green belts
c.
Master black belts
d.
Black belts
19. In the context of Six Sigma teams, who among the following are fully-trained Six Sigma experts with
extensive technical training who perform much of the technical analysis required in Six Sigma
projects, usually on a full-time basis?
a.
Black belts
b.
Champions
c.
Green belts
d.
Team members
20. In the context of Six Sigma teams, who among the following are functional employees who are trained
in introductory Six Sigma tools and methodology and work on projects on a part-time basis?
a.
Champions
b.
Master black belts
c.
Green belts
d.
Black belts
21. Successful green belts are often promoted to _____.
a.
champions
b.
team members
c.
black belts
d.
master black belts
22. In a bottom-up approach to Six Sigma projects, _____ choose the projects that are well-suited to the
capabilities of teams.
a.
black belts
b.
team members
c.
green belts
d.
champions
23. Which of the following is a major drawback of the bottom-up approach to Six Sigma projects?
a.
The projects are too broad in scope to be completed in a timely manner.
b.
The projects are not well suited to the capabilities of the teams as they are chosen by top
management who may not be aware of the capabilities of the teams.
c.
The top managers underestimate the cost and overestimate the capabilities of the team or
teams to which the project is assigned.
d.
The projects receive little support and low recognition from the top management.
24. Balancing quality costs against expected revenue gains has become known as:
a.
quality function deployment.
b.
return on quality.
c.
house of quality.
d.
quality trilogy.
25. Toyota created a unique tool, called the _____, to succinctly consolidate and visualize information for
identifying and solving quality problems.
a.
Pareto diagram
b.
run chart
c.
histogram
d.
A3 report
26. One useful quality control tool to help identify the most important issue among a mess of symptoms is
_____.
a.
quincunx
b.
Pareto analysis
c.
run chart
d.
histogram
27. With respect to Pareto analysis, a Pareto _____ is one in which the characteristics observed are ordered
from largest frequency to smallest.
a.
quincunx
b.
histogram
c.
charter
d.
distribution
28. In the context of the DMAIC process, _____ provide a broad overview of the key elements in the
process and help to explain who is the process owner, how inputs are acquired, who the process serves,
and how it adds value.
a.
Pareto diagrams
b.
SIPOC maps
c.
cause-and-effect diagrams
d.
histograms
29. A _____ defines the project, its objectives, and deliverables, and represents a contract between the
project team and the sponsor.
a.
project charter
b.
project diagram
c.
SIPOC diagram
d.
CTQ tree
30. _____ are special types of data collection forms in which the results can be interpreted on the form
directly without additional processing.
a.
Check sheets
b.
Run charts
c.
Data sheets
d.
Control charts
31. Data such as production volume, cost, and customer satisfaction indexes are often plotted on a _____,
which displays the data over time.
a.
check sheet
b.
control chart
c.
run chart
d.
SIPOC diagram
32. ______ are the graphical components of regression analysis.
a.
Scatter diagrams
b.
Run charts
c.
Pareto diagrams
d.
Histograms
33. With respect to 5S, which of the following Japanese terms refer to ensuring that each item in a
workplace is in its proper place or identified as unnecessary and removed?
a.
Seiton
b.
Seiketsu
c.
Seiri
d.
Seiso
34. With respect to 5S, which of the following Japanese terms refer to arranging materials and equipment
so that they are easy to find and use?
a.
Seiri
b.
Seiso
c.
Seiton
d.
Shitsuke
35. With respect to 5S, which of the following Japanese terms refer to formalizing procedures and
practices to create consistency and ensure that all steps are performed correctly?
a.
Seiketsu
b.
Seiri
c.
Shitsuke
d.
Seiton
ESSAY
1. List the steps followed in the creative problem-solving strategy pioneered by Alex Osborn.
1. Understanding the “mess”
2. Finding facts
3. Identifying specific problems
4. Generating ideas
5. Developing solutions
6. Implementing solutions
2. Describe the concepts on which the core philosophy of six sigma is based.
ANS:
3. List some of the contrasting features between total quality management (TQM) and six sigma.
ANS:
4. What are the various factors that should be considered when selecting a six sigma project?
5. What are the 10 important considerations for data collection suggested by the Juran institute?
CASE
1. List the errors which were well documented and those which were known to be a significant source of
error at Froedtert Hospital in Milwaukee, Wisconsin.
2. List the four Milwaukee-based organizations who created a consortium committed to the development
of an approach to reduce errors and improve patient safety.
3. What are the three major efforts currently addressed by the consortium of the four Milwaukee-based
organizations committed to improving patient safety?
4. List the nine steps present in the process map developed by the team members of Froedtert Hospital
for continuous IV medication infusion procedure.
5. What were the steps included in examining Froedtert hospital’s clinical laboratory process?
6. Which of the following steps of the Froedtert hospital’s clinical laboratory process was identified to be
subjected to most errors by applying Six Sigma analysis?
a. Analyzing the specimens in the lab
b. Matching the order to the patient
c. Entering the results into the patient’s chart
d. Labeling the specimens in the lab
7. List the steps that were characterized by the highest degree of variability and the greatest chance for
error in the analysis of medication delivery by IV infusions.
ANS:
8. Why did the manager of the distribution center of the automobile replacement parts promise that all
orders would be delivered within 24 hours or the customer would get the parts at no charge?
9. List the process flow of the order fulfillment process that was developed for the automotive parts
distribution center.
10. What step was taken by the team, set up by the distribution center, to reduce order processing time, to
determine where the longest delays occurred in the order processing activities?
11. Order BZ-34265 began the “check order” activity at 1:35 P.M and finished at 2:03 P.M. The
completion time for this activity is _____.
a. 32 mins
b. 18 mins
c. 28mins
d. 30 mins
12. Which of the following activities in the order fulfillment process was identified as the largest
contributor to order processing delays, when the average times of these activities were analyzed with
the Pareto diagram?
a. Checking order
b. Packing parts
c. Receiving order
d. Picking parts
13. To provide a more detailed analysis of the picking operation, the 50 individual times recorded for
picking orders were plotted on the:
a. cause-and-effect diagram.
b. check sheets.
c. histogram.
d. run charts.
14. To provide a more detailed analysis of the picking operation, the team plotted the 50 individual times
recorded for picking orders on the histogram. What was suggested by a part picker about the three
humps of this histogram, during a brainstorming session?
15. What was the reason found for the delay of the picking process by the brainstorming sessions of the
team set up by the distribution center to reduce order processing time?

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