Developing and evaluating solutions to reduce the gap between desired process
performance and current performance is the final step in the six sigma DMAIC
approach for process improvement.
Key aspects of the theory of constraints include identifying the bottlenecks in the
process and balancing the work flows in the system.
Sub-optimization occurs when one part of the system is improved to the detriment of
other parts of the system.
A logical, nominal, or virtual cell refers to a situation where the equipment is physically
adjoining and reserved for production of only one part family.
Air transport can significantly reduce inventory and warehousing costs, as well as
improve customer service.
The goal of Kaizen blitz is to mistake-proof work activities in a way that prevents errors
from being committed in the first place.
Lean enterprises rely on the push system, whereby company supply drives the
production process.
In the allocation of capacity, overbooking is an attempt to reduce costs through better
schedule management.
The cycle time of the process is the reciprocal of the output rate.
One of the most common errors when monitoring data is to gather information that has
little or no probability of changing significantly from one collection period to the next.
Saving time at non-bottleneck workstations increases total output by an average of five
minutes per part per operation.
Which of the following is NOT an example of a project?
a) Constructing highways, bridges, tunnels and dams
b) Managing research and development (R&D) activities such as the development of
the atomic bomb
c) Building MP3 players for massive distribution
d) Running political or advertising campaigns, war or fire-fighting operations
A/An ___ item is produced in batches of some size that is set by the customer, and then
delivered upon its completion.
a) Make-to-order
b) Make-to-stock
c) Order-to-make
d) Stock-to-order
Which of the following is NOT a step in constructing control charts?
a) Initial samples of the process to be monitored need to be taken
b) Means and ranges for the samples must be calculated
c) Deriving the means by the ranges previously calculated
d) Graphing sample means and ranges chronologically
One aspect that differentiates Six Sigma from other earlier process improvement
programs including total quality management and reengineering is that with Six Sigma:
a) Quality can realistically be improved
b) Specific roles and titles have been identified and generally accepted
c) It is easier to alter the corporate culture of a firm
d) Control charts are used exhaustively
__________ inventories exist because materials must be moved from one location to
another.
a) Buffer
b) Anticipation
c) Transit
d) Cycle
Which of the following is a major difference between continuous processes and flow
shops?
a) Inputs are fixed for continuous shops and the flow of work is continuous for flow
shops
b) In flow shops, there is a discrete product or service instead of products not naturally
divisible
c) Degree of automation is higher for flow shops
d) Continuous shops tend to be very small while flow shops tend to be very large
Which of the following uses techniques from Toyota Production System and JIT to
eliminate waste and non-value-added activities?
a) Enterprise and material requirements planning
b) Lean Management
c) Quality Control
d) Capacity Management
Which of the following is/are (a) technique(s) used for increasing short-run capacity
a) Increase resources
b) Improve resource use
c) Modify the demand
d) All of the above
Layout analysis is usually performed for the following purpose(s):
a) Maximize operational efficiency
b) Reduce safety or health hazards
c) Minimize interference or noise between areas
d) All of the above
Logistics consist(s) of the following, EXCEPT:
a) Compensation and incentives
b) Storage and warehousing
c) Transportation and information processing
d) Inventories and distribution
A distinction between normal goods and information/knowledge is that
a) Normal goods wear out, but information/knowledge does not
b) Information/knowledge can be given or sold to many others
c) Information/knowledge is subject to diminishing returns, but physical outputs are
subject to increasing returns
d) Both A and B
Which of the following distributions can best represent the number-of-defects c chart?
a) Dichotomous
b) Poisson
c) Binomial
d) Chi square
Which of the following is TRUE about the bullwhip effect?
a) Variability in demand increases from the factory stage downstream to the customer
stage
b) This cycle is prevalent in just about every industry
c) Lead times between the stages of the supply chain tend to be very short
d) Information lags stemming from large lot sizes with infrequent orders may be a cause
With respect to strategy maps and balanced scorecards, which of the following is
FALSE?
a) Both address four perspectives: financial, customer, internal business process, and
learning and growing perspectives
b) Strategy maps represent an easier way to develop a balanced scorecard
c) Both serve to monitor the cause-and-effect relationships identified through the
development of a balanced scorecard
d) Employees’ understanding of strategy interactions is enhanced through their use
The product-process matrix developed by Hayes and Wheeelwright (1979) explains
how transformation systems vary from project ‘“on the top left corner-to continuous
processes ‘“on the bottom right corner. Its vertical axis illustrates:
a) Output quantity
b) Variety of outputs
c) Quality
d) Breadth of outputs
The step in the 5S approach in which standardized procedures for maintaining an
orderly work environment are developed and implemented is:
a) Sort
b) Straighten (Set in order)
c) Scrub (Shine)
d) Systemize
Moore’s law states that:
a) The value of a network increases with the square of the number of elements
connected to it
b) Computing power doubles every 18-24 months
c) If anything can go wrong, it will, and usually at the most inappropriate moment
d) A project will always take longer than expected, even after taking into account
Metcalfe’s Law
Which of the following statements about Supply Chain Management (SCM) is correct?
a) SCM programs are putting ever greater emphasis on the finance function
b) SCM coordinates and integrates several activities into a process by linking the most
important partners in the chain
c) The goal of SCM is to deliver the right product at the right time, while yielding the
lowest possible costs
d) SCM enables manufacturers to actively plan and collaborate across a distributed
supply chain
Service defections are important in process control for services because:
a) No advertising is necessary to get the business of long-term customers
b) They are equally important to organizations that produce tangible outputs
c) A customer who takes their business elsewhere is analogous to a product defect
d) Long-time customers are more likely to purchase additional products
__________ means deciding which jobs to assign to which work centers.
a) Loading
b) Sequencing
c) MRP
d) Facility planning
Which of the following is FALSE for job shops?
a) Unique jobs must be produced
b) Output batch size is moderately large, to make it cost effective
c) The flow of work through facilities tends to be intermittent
d) Groupings of staff and equipment are done according to function
The four major considerations in selecting a national or overseas region for the facility
are:
a) Labor supply, availability of inputs, foreign management, and environment
b) Proximity, labor supply, availability of inputs, and environment
c) Proximity, environment, facility size, and foreign management styles
d) Proximity, environment, facility size, and labor supply
Learning how to plan and control project activities to meet specifications for
performance, schedule, and cost are among the subjects of:
a) Project management
b) Lean management
c) Supply chain management
d) Inventory management
Which of the following tools and methodologies is NOT used in the Measure Phase of
Six Sigma?
a) Design of experiments (DOE)
b) Pareto Analysis
c) Process Maps
d) Rolled throughput yield (RTY)