Knowledge Check Worksheet



OPS/571 Knowledge Checks

Contents

Week 1: Introduction to Process Design 1

Concept: Product Development Process 1

Concept: Process Design 2

Concept: Service System Design Matrix 2

Concept: Service Blueprinting and Fail-safing 3

Concept: Service Designs 3

Week 2: Theories of Leadership 4

Concept: Value Stream Mapping 4

Concept: Cost Impact and Payoff Analysis 5

Concept: Business Process Reengineering 5

Concept: Process Types 6

Concept: Lean 6

Concept: Process Performance Metrics 7

Concept: Economies and Diseconomies of Scale 7

Week 3: Supply Chain Design 7

Concept: Determine demand management performance in a supply chain 8

Concept: Determine Capacity Utilization Rate 8

Concept: Determine Inventory Management tools/techniques to measure performance 9

Concept: Determine Supplier Management Relationships and Performance 9

Concept: Sales and Operations Planning 10

Concept: Master Schedule 10

Concept: Materials Requirement Planning and Factory Scheduling 11

Week 4: Project Management 11

Concept: Work Breakdown Structure 11

Concept: Control Charts 12

Concept: Implementation 12

Week 5: Introduction to Process Improvement 13

Concept: International Standards 13

Concept: Three Forms of Certification 13

Concept: Analytical Tools 14

Week 6: Process Improvement 14

Concept: Six Sigma Methodology 15

Concept: Politics: Shingo System-Fail Safe Design 15

Concept: Theory of Constraints 15

Concept: Performance Measurements 16

Concept: Bottleneck Effect 16

Week 1: Introduction to Process Design

Read Ch. 3 of Operations and Supply Chain Management

Read Ch. 6 of Operations and Supply Chain Management

Read Ch. 7 of Operations and Supply Chain Management

Concept: Product Development Process

|Question #1 |

|Why is the planning phase often referred to as Phase 0 (Zero) of the generic product development process? |

| |

|a. This phase is not necessary. |

|b. This phase requires $0 to complete. |

|c. This phase is not completed until after the project has been funded. |

|d. This phase happens before the project is approved. |

|Correct Answer Feedback: d |

| |

|The planning phase happens before the actual project development process is launched. |

|Reading: |

| |

|Ch. 3 of Operations and Supply Chain Management |

|“Phase 0: Planning” pp. 42 |

|“Exhibit 3.1: The Generic Product Development Process” p. 43, |

|“Product Development Process” pp. 42–44 |

Concept: Process Design

|Question #4 |

|Using a project layout for building an aircraft, why would you want to place rivets close to or even in the fuselage? |

| |

|a. Rivets are small and you don’t want to lose them |

|b. Rivets are used one time only in the construction process |

|c. Rivets are used consistently throughout the construction process |

|d. Rivets should actually be placed farthest away from the fuselage. |

|Correct Answer Feedback: c |

| |

|Items, such as rivets, that are used consistently throughout a manufacturing process should be placed closest to the |

|project site in a project layout. |

|Reading: |

| |

|Ch. 6 of Operations and Supply Chain Management |

|“Project Layout” p. 166 |

|“Production Processes” pp. 160–162, |

|“How Production Processes are Organized” pp. 162–164 |

Concept: Service System Design Matrix

|Question #7 |

|What happens to production efficiency as the customer exerts more influence on the system? |

| |

|a. Production efficiency is increased |

|b. Production efficiency is decreased |

|c. There is no effect on production efficiency |

|d. Production efficiency is eliminated |

|Correct Answer Feedback: b |

| |

|The greater the amount of customer contact in a system, production efficiency is decreased as the customer may have |

|greater customization requests. |

|Reading: |

| |

|Ch. 7 of Operations and Supply Chain Management |

|“Structuring the Service Encounter: Service-System Design Matrix” pp. 221–222, |

|“Exhibit 7.3: Service –System Design Matrix” p. 222, |

|“An Operational Classification of Services” pp. 219–221, |

|“Designing Service Organizations” p. 221 |

Concept: Service Blueprinting and Fail-safing

|Details |

|A service process design flowchart is referred to as a service blueprint to emphasize what? |

| |

|a. The importance of process design |

|b. The impact of blueprints |

|c. The importance of system engineering |

|d. The impact of customer service |

|Correct Answer Feedback: a |

| |

|The importance of process design has become more and more recognized in recent years. |

|Reading: |

| |

|Ch. 7 of Operations and Supply Chain Management |

|“Structuring the Service Encounter: Service-System Design Matrix” pp. 221–222, |

|“Exhibit 7.3: Service –System Design Matrix” p. 222, |

|“An Operational Classification of Services” pp. 219–221, |

|“Designing Service Organizations” p. 221 |

Concept: Service Designs

|Details |

|Even though they use different models, both the Ritz-Carlton Hotel Group and Nordstrom Department Stores are known for |

|what? |

| |

|a. Poor customer service |

|b. Customer-facing employees who only talk to rich customers |

|c. A self-service approach to customer service |

|d. The personal attention they provide their customers |

|Correct Answer Feedback: d |

| |

|Customers may find themselves willing to pay more for similar products (or upscale products) especially if they are |

|provided with personalized customer service. |

|Reading: |

| |

|Ch. 7 of Operations and Supply Chain Management |

|“The Personal Attention Approach” pp. 227–229 |

|“An Operational Classification of Services” pp. 219–221, |

|“Designing Service Organizations” p. 221, |

|“Three Contrasting Service Designs” pp. 226–230 |

Week 2: Theories of Leadership

Ch. 4 of Operations and Supply Chain Management

Ch. 4A of Operations and Supply Chain Management

Ch. 5 of Operations and Supply Chain Management

Ch. 12 of Operations and Supply Chain Management

Ch. 13 of Operations and Supply Chain Management

Ch. 13A of Operations and Supply Chain Management

Concept: Value Stream Mapping

|Details |

|Which of the following terms refers to a special type of flowcharting tool that is valuable for the development of lean |

|processes? |

| |

|a. Kaizen |

|b. Kanban production control system |

|c. Value stream mapping |

|d. JIT production |

| |

|Textbook/edition: Operations and Supply Chain Management (8th ed.) |

|Correct Answer Feedback: c |

| |

|“Value stream mapping is a special type of flowcharting tool that is valuable for the development of lean processes. The|

|technique is used to visualize product flows through various processing steps” (Jacobs & Chase, 2011, p. 423). |

|Reading: |

| |

|Ch. 13 of Operations and Supply Chain Management |

|“Value Stream Mapping” p. 426 |

|“Lean Supply Chains” pp. 421–423 |

Concept: Cost Impact and Payoff Analysis

|Details |

|Which of the following operations consulting tools are used in the cost impact and payoff analysis stage in the |

|operations consulting process?  |

| |

|a. Customer surveys and gap analysis |

|b. Decision trees and stakeholder analysis |

|c. SPC tools and bottleneck analysis |

|d. Plant audits and statistical tools |

| |

|Textbook/edition: Operations and Supply Chain Management (13th ed.) |

|Correct Answer Feedback: b |

| |

|Decision trees, balanced scorecard, and stakeholder analysis are used in the cost impact and payoff analysis stage in |

|the operations consulting process. |

|Reading: |

| |

|Ch. 13A of Operations and Supply Chain Management |

|“Cost Impact and Payoff Analysis” pp. 460–461 |

Concept: Business Process Reengineering

|Details |

|In contrast to TQM, what approach seeks radical change through innovation? |

| |

|a. Lean manufacturing |

|b. JIT distribution |

|c. Project management |

|d. Reengineering |

| |

|Textbook/edition: Operations and Supply Chain Management (8th ed.) |

|Correct Answer Feedback: d |

| |

|“Michael Hammer, the management expert who initiated the reengineering movement, defines reengineering as ‘the |

|fundamental rethinking and radical redesign of business processes to achieve dramatic improvements in critical, |

|contemporary measures of performance, such as cost, quality, service, and speed’” (Jacobs & Chase, 2011, p. 461). |

|Reading: |

| |

|Ch. 13A of Operations and Supply Chain Management |

|“Business Process Reengineering (BPR)” pp. 461–463 |

Concept: Process Types

|Details |

|Which of the following production process terms best describes the situation when activities in a stage of production |

|must stop because there is no work? |

| |

|a. Blocking |

|b. Buffering |

|c. Starving |

|d. Multiple-stage processing |

|Correct Answer Feedback: c |

| |

|“Starving occurs when the activities in a stage must stop because there is no work” (Jacobs & Chase, 2011, p. 112). |

|Reading: |

| |

|Ch. 5 of Operations and Supply Chain Management |

|“Types of Processes” pp. 112–113 |

Concept: Lean

|Details |

|Lean production seeks to achieve high volume production using which of the following? |

| |

|a. Minimize inventory of raw materials |

|b. Maximize inventory of work-in-process |

|c. Maximize capacity |

|d. Minimize utilization |

|Correct Answer Feedback: a |

| |

|Lean production is an integrated set of activities designed to achieve high-volume production using minimal inventories |

|of raw materials, work-in-process, and finished goods. |

|Reading: |

| |

|Ch. 13 of Operations and Supply Chain Management |

|“Lean Logic” pp. 419–421, |

|“Lean Supply Chains” pp. 421–446 |

Concept: Process Performance Metrics

|Details |

|Which of the following are possible examples of cycle times? |

| |

|a. Time to set up a new assembly line |

|b. Time that a part waits in queue |

|c. Time it takes for an instructor to grade an exam |

|d. Time required to produce a batch of parts |

|Correct Answer Feedback: c |

| |

|The cycle time of a repetitive process is the average time between completions of successive units, such as the time it |

|takes to grade an exam. |

|Reading: |

| |

|Ch. 5 of Operations and Supply Chain Management |

|“Measuring Process Performance” p. 117 |

Concept: Economies and Diseconomies of Scale

|Details |

|The basic notion of economies of scale assumes which of the following? |

| |

|a. A piece of equipment with twice the capacity of another piece typically costs twice as much to purchase and to |

|operate |

|b. Two plants can be operated at the same cost as a single plant |

|c. Average cost per unit of output drops as a plant gets larger and volume increases |

|d. Total cost of output drops as volume increases |

|Correct Answer Feedback: c |

| |

|“The basic notion of economies of scale is that as a plant gets larger and volume increases, the average cost per unit |

|of output drops” (Jacobs & Chase, 2011, p. 73). |

|Reading: |

| |

|Ch. 4 of Operations and Supply Chain Management |

|“Economies and Diseconomies of Scale” p. 73 |

Week 3: Supply Chain Design

Ch. 8 of Operations and Supply Chain Management, 13e

Ch. 11 of Operations and Supply Chain Management, 13e

Ch. 15 of Operations and Supply Chain Management, 13e

Ch. 17 of Operations and Supply Chain Management, 13e

Ch. 16 of Operations and Supply Chain Management, 13e

Ch. 18 of Operations and Supply Chain Management, 13e

Concept: Determine demand management performance in a supply chain

|Details |

|In most cases, demand for products or services can be broken into several components. Which of the following is |

|considered a component of demand? |

| |

|a. Cyclical elements |

|b. Future demand |

|c. Past demand |

|d. Inconsistent demand |

| |

|Textbook/edition: Operations and Supply Chain Management (15th ed.) |

|Correct Answer Feedback: a |

| |

|“In most cases, demand for products or services can be broken down into six components: average demand for the period, a|

|trend, seasonal elements, cyclical elements, random variation, and autocorrelation” (Jacobs & Chase, 2011, p. 486). |

|Reading: |

| |

|Ch. 15 of Operations and Supply Chain Management |

|“Components of Demand” pp. 486–487 |

|“Forecasting Demand” p. 606 |

Concept: Determine Capacity Utilization Rate

|Details |

|Which of the following is an essential resource that flows through a hospital supply chain? |

| |

|a. Doctors and Nurses |

|b. Information |

|c. Medicine |

|d. Patients |

| |

|Textbook/edition: Operations and Supply Chain Management (15th ed.) |

|Correct Answer Feedback: d |

| |

|A hospital supply chain shows the flow of three essential resources: information, funds, and goods and services (Jacobs |

|& Chase, 2011). |

|Reading: |

| |

|Ch. 9 of Operations and Supply Chain Management |

|“Group Decision-Making Techniques” pp. 295–296, |

|“The Nominal Group Technique” p. 295, |

|“Exhibit 9-7: Evaluating Group Effectiveness” p. 296 |

Concept: Determine Inventory Management tools/techniques to measure performance

|Details |

|Which of the following is one of the categories of manufacturing inventory?  |

| |

|a. Economic Order Inventory |

|b. Work-in-process |

|c. Quality units |

|d. JIT Inventory |

| |

|Textbook/edition: Operations and Supply Chain Management (13th ed.) |

|Correct Answer Feedback: b |

| |

|“Manufacturing inventory is typically classified into raw materials, finished products, component parts, supplies, and |

|work-in-process” (Jacobs & Chase, 2011, p. 559). |

|Reading: |

| |

|Ch. 17 of Operations and Supply Chain Management |

|“Purposes of Inventory” p. 559 |

Concept: Determine Supplier Management Relationships and Performance

|Details |

|What is the effect of the lack of synchronization among supply-chain members? |

| |

|a. Forward buying |

|b. Continuous replenishment |

|c. Bullwhip effect |

|d. Metcalf's Law |

| |

|Textbook/edition: Operations and Supply Chain Management (13th ed.) |

|Correct Answer Feedback: c |

| |

|The bullwhip effect “indicates a lack of synchronization among supply chain members” (Jacobs & Chase, 2011, p. 376). |

|Reading: |

| |

|Ch. 11 of Operations and Supply Chain Management |

|“The Bullwhip Effect” p. 377 |

Concept: Sales and Operations Planning

|Details |

|The main purpose of aggregate operations planning is to specify the optimal combination of which of the following?  |

| |

|a. Workforce levels and inventory on hand |

|b. Inventory on hand and financing costs for that inventory |

|c. The strategic plan and the products available for sale |

|d. The workforce level and the degree of automation |

| |

|Textbook/edition: Operations and Supply Chain Management (13th ed.) |

|Correct Answer Feedback: a |

| |

|“The main purpose of the aggregate plan is to specify the optimal combination of production rate, workforce level, and |

|inventory on hand” (Jacobs & Chase, (2011), p. 532). |

|Reading: |

| |

|Ch. 16 of Operations and Supply Chain Management |

|“The Aggregate Operations Plan” p. 532 |

Concept: Master Schedule

|Details |

|Which of the following is an input to the master production schedule (MPS)? |

| |

|a. Inventory records file |

|b. The aggregate plan |

|c. Bill of materials |

|d. Exception report |

| |

|Textbook/edition: Operations and Supply Chain Management (13th ed.) |

|Correct Answer Feedback: b |

| |

|“Although the aggregate plan provides the general range of operation, the master scheduler must specify exactly what is |

|to be produced” (Jacobs & Chase, 2011, p. 598). |

|Reading: |

| |

|Ch. 18 of Operations and Supply Chain Management |

|“Master Production Scheduling” p. 598 |

Concept: Materials Requirement Planning and Factory Scheduling

|Details |

|Which of the following is an input to the master production schedule? |

| |

|a. Prototype products from product development |

|b. Aggregate component schedule |

|c. Peg reports from factory records |

|d. Forecasts of customer demand |

| |

|Textbook/edition: Operations and Supply Chain Management (13th ed.) |

|Correct Answer Feedback: d |

| |

|Demand “originates from two sources: regular customers that place firm orders and unidentified customers that make the |

|normal random demands for these items. The random requirements were forecast using one of the usual techniques described|

|in Chapter 15 and past demand data” (Jacobs & Chase, 2011, p. 606). |

|Reading: |

| |

|Ch. 18 of Operations and Supply Chain Management |

|“Material Requirements Planning System Structure” pp.601–606 |

Week 4: Project Management

Ch. 10 of Operations and Supply Chain Management

Concept: Work Breakdown Structure

|Details |

|A work breakdown structure is: |

| |

|a. a structure that is incompatible with the Critical Path Method |

|b. a Cost and Performance tracking schedule |

|c. a hierarchy of tasks, subtasks, and work packages |

|d. a simple list of the activities making up a project |

| |

|Textbook/edition: Operations and Supply Chain Management (135th ed.) |

|Correct Answer Feedback: c |

| |

|A work breakdown structure creates a hierarchy of project tasks, subtasks, and work packages. In other words, a work |

|breakdown structure organizes the breakdown of a project into project tasks, then project tasks into subtasks, and |

|subtasks into work packages. |

|Reading: |

| |

|Ch. 10 of Operations and Supply Chain Management |

|“Work Breakdown Structure” p. 341 |

Concept: Control Charts

|Details |

|The vertical axis on a Gantt chart is usually which of the following? |

| |

|a. Activities |

|b. Cost |

|c. Profit |

|d. Time |

| |

|Textbook/edition: Operations and Supply Chain Management (13th ed.) |

|Correct Answer Feedback: a |

| |

|Generally, the activities are located on the vertical (y)-axis in sequential order from top to bottom with respect to |

|their start date and all activities follow the same timeline on the horizontal (x)-axis. |

|Reading: |

| |

|Ch. 10 of Operations and Supply Chain Management |

|“Project Control Charts” p. 342–343 |

|“Shop-Floor Control” pp. 638–639 |

|Figure 19.5; p. 639 |

Concept: Implementation

|Details |

|Which of the following identifies a key principle of Reengineering? |

| |

|a. Organize around tasks. |

|b. Merge information-processing work into the real work that produces the information. |

|c. Downsize (lay-off) workers and do the same amount of work as before. |

|d. Capture information both at the source and where it is interpreted. |

| |

|Textbook/edition: Operations and Supply Chain Management (13th ed.) |

|Correct Answer Feedback: b |

| |

|This principle integrates data collection with data processing, mitigating any confusion through information transfer. |

|Reading: |

| |

|Ch. 13A of Operations and Supply Chain Management |

|“Principles of Reengineering” p. 462 |

Week 5: Introduction to Process Improvement

Week 5 Textbook Readings

Ch. 9 of Operations and Supply Chain Management

Concept: International Standards

|Details |

|Which is the international standard for quality management for automotive industry suppliers of production parts, |

|materials, and services? |

| |

|a. AS 9000 |

|b. AI 9000 |

|c. TL 9000 |

|d. QS 9000 |

| |

|Textbook/edition: Operations and Supply Chain Management (13th ed). |

|Correct Answer Feedback: d |

| |

|“QS-9000 is a quality management system developed by DaimlerChrysler, Ford, and |

|General Motors for suppliers of production parts, materials, and services to the automotive industry” (Jacobs & Chase, |

|2011, p. 299). |

|Reading: |

| |

|Ch. 9 of Operations and Supply Chain Management |

|“ISO 9000 and ISO 14000” pp. 298–299 |

Concept: Three Forms of Certification

|Details |

|What is the certification when a qualified national or international standards body or similar certifying agency audits |

|and certifies that a company is ISO 9000-compliant? |

| |

|a. First party |

|b. Second party |

|c. Third party |

|d. Fourth party |

| |

|Textbook/edition: Operations and Supply Chain Management (13th ed). |

|Correct Answer Feedback: c |

| |

|Third-party certification is provided by “a qualified national or international standards or certifying agency serves as|

|an auditor” (Jacobs & Chase, 2011, p. 299). |

|Reading: |

| |

|Ch. 9 of Operations and Supply Chain Management |

|“ISO 9000 and ISO 14000” p. 299 |

Concept: Analytical Tools

|Details |

|What is one analytical tool common to all quality improvement programs? |

| |

|a. Kaizen |

|b. Pareto charts |

|c. Management by fact |

|d. Continuous improvement |

| |

|Textbook/edition: Operations and Supply Chain Management (13th ed.) |

|Correct Answer Feedback: b |

| |

|“The tools common to all quality efforts, including Six Sigma are flowcharts, run charts, Pareto charts, histograms, |

|checksheets, cause-and-effect diagrams, and control charts” |

|(Chase, 2011, p. 293). |

|Reading: |

| |

|Ch. 9 of Operations and Supply Chain Management |

|“Analytical Tools for Six Sigma and Continuous Improvement” p. 293-296 |

Week 6: Process Improvement

Week 6 Textbook Readings

Ch. 9 of Operations and Supply Chain Management

Ch. 20 of Operations and Supply Chain Management

Concept: Six Sigma Methodology

|Details |

|The DMAIC cycle of Six Sigma is similar to which of the following quality management topics? |

| |

|a. Continuous improvement |

|b. SERQUAL |

|c. ISO 9000 |

|d. External benchmarking |

|Correct Answer Feedback: a |

| |

|The DMAIC cycle consists of five steps that underlie continuous improvement. |

|Readings: |

|Ch. 9 of Operations and Supply Chain Management |

|“Six-Sigma Methodology” pp. 292–293 |

Concept: Politics: Shingo System-Fail Safe Design

|Details |

|The idea that statistical methods of quality control, including six-sigma, does not prevent defects, is central to what |

|alternative quality system? |

| |

|a. Deming PDCA cycle |

|b. SQC methods |

|c. Shingo System |

|d. DMAIC cycle |

|Correct Answer Feedback: c |

| |

|Shingo’s argument was that SQC methods do not prevent defects; defects can be prevented by providing workers with |

|feedback on errors. |

|Reading: |

| |

|Ch. 9 of Operations and Supply Chain Management |

|“The Shingo System: Fail-Safe Design” pp. 297–298 |

Concept: Theory of Constraints

|Details |

|Which of the following are examples of Goldratt’s Rules of Production Scheduling? |

|a. Balance flow, not capacity |

|b. Utilization and activation are the same |

|b. Nonbottlenecks govern throughput |

|d. An hour saved at a bottleneck is a mirage |

|Correct Answer Feedback: a |

| |

|Goldratt defined nine Rules of Production Scheduling, including “Do not balance capacity—balance the flow”. |

|Reading: |

| |

|Ch. 20 of Operations and Supply Chain Management |

|“Constraint Management” p. 683, |

|Exhibit 20.1 p. 683 |

Concept: Performance Measurements

|Details |

|According to the theory of constraints, which of the following is an OPERATIONAL measurement that can be used to measure|

|the firm's ability to make money? |

| |

|a. Inventory |

|b. Net Profit |

|c. Operating revenue |

|d. Unit cost |

| |

|Textbook/edition: Operations and Supply Chain Management (13th ed.) |

|Correct Answer Feedback: a |

| |

|Successful revision is a product of change and continuity to incorporate the new vision with select current assets and |

|practices to be retained. |

|Reading: |

| |

|Ch. 20 of Operations and Supply Chain Management |

|“Performance Measurements” pp. 684–685 |

Concept: Bottleneck Effect

|Question #7 |

|According to Goldratt, which of the following is defined as “any resource whose capacity is less than the demand placed |

|on it”? |

| |

|a. Nonbottleneck resource |

|b. Bottleneck resource |

|c. Capacity-constrained resource |

|d. Buffer resource |

|Correct Answer Feedback: b |

| |

|“A bottleneck is defined as any resource whose capacity is less than the demand placed upon it” (Jacobs & Chase, 2011, |

|p. 688). |

|Reading: |

| |

|Ch. 20 of Operations and Supply Chain Management |

|“Bottlenecks and Capacity-Constrained Resources” p.688 |

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