Chapter 6

Question 1

Conformance Quality

Answer 1

meeting design specification

Question 2

Design quality

Answer 2

match between designed features and customer requirements

Question 3

Mr. Deming believed ___:

Answer 3

• Variability is the source of most problems

- the customer is important

Question 4

Mr Juran believed:

Answer 4

cost of quality analysis

Question 5

Mr Crosby believed:

Answer 5

“Do it right the first time”

• Quality is free
• Zero defects
• Focus on incremental change

Question 6

Mr Imai believed:

Answer 6

• Kaizen system
• focus on process-oriented view
• emphasis on worker training

Question 7

What are some COQ’s?

Answer 7

Cost of Quality.

• Prevention costs
• Appraisal costs
• Internal failure costs
• External failure costs

Question 8

Costs associated with defects found AFTER delivery to customer:

Answer 8

External failure costs

Question 9

Guiding Methodology: (PDCA)

Answer 9

Plan
Do
Check
Act

Question 10

Guiding Methodology: Six Sigma

Answer 10

quality improvement through elimination of defects and variation

Question 11

6sigma is ____ ppm:

Answer 11

3.4

Question 12

ISO 9000

Answer 12

Internationally accepted standards for quality management systems

Question 13

ISO 9000 requires

Answer 13

• Fulfilling customers quality requirements
• meeting regulatory requirements
• enhancing customer satisfaction

Question 14

ISO 9000 is required by:

Answer 14

many customers

Question 15

Variable Data is ____ and can be _______.

Answer 15

Quantifiable, Continuous. measured.

Question 16

Attribute Data is ______ and can be _______.

Answer 16

Qualitative, Discrete. counted.

Question 17

Pareto analysis identifies:

Answer 17

most critical cause of problems

Question 18

scatter diagrams determine:

Answer 18

the relationship between variables

Question 19

taguchi method/DoE

Answer 19

Tracks effects of different factors on outputs

Question 20

Cause and Effect Diagram looks like a

Answer 20

FISHBONE

Question 21

Process capability assesses:

Answer 21

the ability of a process to meet (or exceed) design specifications

Question 22

name 4 roles of inventory

Answer 22

• Balance supply and demand
• Buffer against uncertainties
• Enable economies of buying
• Enable geographic specialization

Question 23

Name some carrying (holding) costs:

Answer 23

• opportunity cost
• storage and warehouse management
• taxes and insurance
• obsolescence, spoilage, and shrinkage
• material handling

Question 24

Name some ordering and set-up costs:

Answer 24

• Purchased Items: placing and receiving orders

- Make items: Change-over between items

Question 25

Name some stockout costs:

Answer 25

Lost sales or customer loyalty - Expediting - Schedule disruption

Question 26

what is stockout?

Answer 26

when no inventory is available

Question 27

Measures of Inventory Performance

Answer 27

- Inventory Turnover - Days of supply - economic order quantity - total acquisition cost - reorder point - service level

Question 28

Advantages of high turnover:

Answer 28

- 'fresh' inventory - reduced risk or mark down - reduced total carrying costs - lower asset investment and higher productivity

Question 29

Dangers of high turnover:

Answer 29

- Stockouts may mean lower sales - increased costs from missing quantity requirements - increased ordering costs

Question 30

Days of supply:

Answer 30

(inventory/daily demand) length of time operations can be supported with inventory on-hand

Question 31

Service level:

Answer 31

ability to meet customer demand without a stock out

Question 32

Independent demand:

Answer 32

beyond control of the organization

Question 33

dependent demand:

Answer 33

demand driven by demand of another item

Question 34

Continuous review:

Answer 34

inventory levels are constantly monitored to determine when to place a replenishment order

Question 35

Total Acquisition Cost=

Answer 35

annual ordering cost + annual carrying cost

Question 36

Economic Order Quantity:

Answer 36

-minimizes total acquisition costs; point at which holding and order costs are equal

Question 37

Reorder Point:

Answer 37

minimum level of on-hand inventory that triggers a replenishment