Module 4.4 - Performance and Continuous Improvement

Question 1

What is known as a measure that is used to define and assess progress toward specific organizational goals?

Answer 1

Key Performance Indicator (KPI)

Question 2

What is the key point about Key Performance Indicators (KPI)?

Answer 2

They have to be applied to processes that directly enable the organizational and supply chain strategies.

Question 3

What are known as performance measurements that link to organizational performance measurements?

Answer 3

Operational Performance Measurements

Question 4

What are the two Key Performance Indicators for inventory?

Answer 4

Reduction of inventory costs
Achievement of customer service targets

Question 5

Why does improving inventory management promise a significant boost in return on investment?

Answer 5

Because inventory represents large investment of the company

Question 6

What is known as the reduction of actual quantities of items in stock, in process, or in transit?

Answer 6

Inventory Shrinkage

Question 7

What is also known as an inventory item?

Answer 7

Stock Keeping Unit (SKU)

Question 8

In inventory terms, what is record on hand (ROH) vs physical on hand (POH)?

Answer 8

The amount of inventory that should be present vs. actual inventory present

Question 9

What is known as the act of making incremental, regular improvements to a process or product?

Answer 9

Continuous Improvement (CI)

Question 10

What is the management approach to long-term success through customer satisfication?

Answer 10

Total Quality Management (TQM)

Question 11

What is known as the costs associated with performing a task incorrectly?

Answer 11

Cost of Poor Quality

Question 12

What type of costs are associated with the formal evaluation and audit of quality?

Answer 12

Appraisal costs

Question 13

When an enterprise compares its performance to that of a competitor in its own industry, what is that known as?

Answer 13

Competitive benchmarking

Question 14

What benchmarking strategy involves having the company look both within and outside of their industry to develop a goal for improvement?

Answer 14

Best-in-class benchmarking

Question 15

What benchmarking strategy consist of improving a process by comparing it to a checklist of world-class process descriptions/features?

Answer 15

Process benchmarking

Question 16

What are the seven basic tools of quality?

Answer 16

1. Process mapping
2. Control Chart Analysis
3. The Pareto Chart
4. Cause-and-effect diagram
5. Histogram
6. The Check Sheet
7. The Scatter Chart

Question 17

Which basic tool of quality is a diagram of the flow of a production process through the production system?

Answer 17

Process map

Question 18

Which basic tool of quality is a graphic comparison of process performance data?

Answer 18

Control Chart

Question 19

Which basic tool of quality is a bar graph that displays the result of a Pareto analysis?

Answer 19

Pareto chart

Question 20

What is Pareto’s law?

Answer 20

80% of the effects (sales/costs) come from 20 percenter of the possible causes (items).

Question 21

Which basic tool of quality links an effect with the possible causes of the effect?

Answer 21

Cause-and-effect diagram

Question 22

Which basic tool of quality is a bar graph that displays the frequency distribution of measurement data for a process and shows the amount of variation and range of variation within a process?

Answer 22

Histogram

Question 23

Which basic tool of quality is a simply and easy-to-use tool for summarizing a tally count of event occurnces?

Answer 23

Check sheet

Question 24

Which basic tool of quality shows the relationship of two variables in terms of whether they are interdependent and to what extent?

Answer 24

Scatter Chart

Question 25

What are the additional 7 basic management and planning tools?

Answer 25

1. Affinity Diagram 2. Tree Diagram 3. Matrix Diagram 4. Process decision program chart 5. Relationship diagram 6. Matrix data analysis chart 7. Activity network diagram

Question 26

Which additional basic management and planning tool organizes a large number of ideas by employees striving to solve a particular issue?

Answer 26

Affinity diagram

Question 27

Which additional basic management and planning tool list tasks and activities in increasingly finer detail in order to meet a specific goal?

Answer 27

Tree diagram

Question 28

Which additional basic management and planning tool is useful for showing the relationships between two or more groups of information, the strengths of those relationships, and how those variables interact and respond to each other?

Answer 28

Matrix diagram

Question 29

What additional basic management and planning tool visually captures things that might possibly go wrong in a plan being developed?

Answer 29

Process decision program chart

Question 30

What additional basic management and planning tool illustrates cause and effect relationships and evaluates the links between different aspects of a complicated issue?

Answer 30

Relationship diagram

Question 31

What additional basic management and planning tool can be used to show the relationship between groups of information?

Answer 31

Matrix data analysis chart

Question 32

What additional basic management and planning tool is helpful when an improvement team wants to identify the required order of tasks within a manufacturing process or project?

Answer 32

Activity network diagram

Question 33

Of the 14 quality tools, what are the three categories they fall under?

Answer 33

Non quantitative, combination, and quantitative

Question 34

What is the overall main goal of any continuous improvement method?

Answer 34

Reduce defects or elimination of waste in the use of time and materials.

Question 35

Which continuous improvement method strives to include quality in the product and processes using empowered teams?

Answer 35

Lean

Question 36

Lean continuous improvement method was developed through the same principles as what inventory strategy?

Answer 36

Just-in-Time

Question 37

Which continuous improvement method focuses on enhancing the customer experience by reducing the number of defects in a process until they approach statistical insignificance?

Answer 37

Sig sigma

Question 38

Which continuous improvement method provides a systematic method of increasing throughput by identifying the slowest element in the system and focusing initial improvement efforts on that element?

Answer 38

Theory of Constraints (TOC)

Question 39

What is known as any activity that doe not add value to the good or service in the eyes of the consumer?

Answer 39

Waste

Question 40

What production philosophy emphasizes the minimization of the amount of all the resources using in various activities of the enterprise?

Answer 40

Lean Production

Question 41

What is the House of Toyota?

Answer 41

A framework commonly used to explain the entire scope of lean production.

Question 42

What is load leveling in the House of Toyota?

Answer 42

Spreading orders out in time so that the amount of work to be done in sequential time periods tends to be distributed evenly

Question 43

What is kaizen?

Answer 43

Japanese term meaning continuing improvement involving everyone.

Question 44

With the lean philosophy, what is the key balancing point?

Answer 44

Improving quality without sacrificing quantity objectives

Question 45

What is a regularly scheduled event that is designed to be started and completed in a limited time frame?

Answer 45

Kaizen Event

Question 46

What is a more intense version of a kaizen event and involves rapid improvement of a limited process area?

Answer 46

Kaizen Blitz

Question 47

What are the Five Ss

Answer 47

1. Sort 2. Simplify 3. Scrub 4. Standardize 5. Sustain

Question 48

Just-in-Time philosophy places emphasis on eliminating T_______ in queues at work centers by having the right M______ arrive at the right P_______ at the right T_______.

Answer 48

Time Material Places Time

Question 49

What does the six sigma methodology aim to achieve?

Answer 49

Near-perfect products and services - To get as close as possible to "zero defects"

Question 50

What are the five phases of the six-sigma process?

Answer 50

1. Define 2. Measure 3. Analyze 4. Improve 5. Control

Question 51

Because of six-sigma's statistical basis, what does it heavily depend upon?

Answer 51

Thorough, reliable, measurable data

Question 52

What does the theory of constraints state?

Answer 52

Any system contains at least one element that limits its maximum output

Question 53

What is known as any element or factor that prevents a system from achieving a higher level of performance?

Answer 53

Constraint