Module 6 - Lean Six Sigma & Outsourcing

Question 1

Lean leaders recognize that the best ideas for improvement often come from:

Answer 1

the production worker or service provider.

Question 2

Why are “functional silos” a problem when a firm wishes to adopt a Lean operating system?

Answer 2

Because localized incentives (like minimizing supplier prices in a purchasing department or maximizing resource utilization in a manufacturing department) can run counter to the goals of Lean.

Question 3

Lean organizations employ a methodology called __ ,(loosely translated from Japanese as “change for the better

Answer 3

Kaizen

Question 4

With Kaizen, which is favored?
(A) a quick “good” solution
(B) the “best” solution which may take more time to accomplish

Answer 4

A, a quick good solution

Question 5

When management is committing to a sustained process improvement program, infrastructure requirements include:

Answer 5

1- Develop a Sound,
Consistent, and Robust
Methodology
2- Build Trust by Removing Fear
3- Initiate Long Term
Culture Change
4- Communicate the
Vision to all
Stakeholders

Question 6

What is “subway” uncertainty?
What’s an example?

Answer 6

Normal uncertainty is usually associated with factors that are expected or events that are likely to occur.

Examples include, demand variation, service time variation, process outcome variation (when a process is stable)

Question 7

What are the two types of uncertainty?

Answer 7

1- normal/subway uncertainty
2- extraordinary/coconut uncertainty

Question 8

What is “coconut” uncertainty?
What’s an example?

Answer 8

Extraordinary uncertainty is associated with factors that are possible (but not probable) or events that are unlikely (but can) occur.

Examples include natural disasters, political upheaval, labor strike, and pandemics.

Question 9

Risks are undesirable outcomes that result from:

Answer 9

uncertainty

Question 10

What are two processes that reduce uncertainty?

Answer 10

standard work process
mistake proofing (poke yoke)

Question 11

Define risk

What are the two types?

Answer 11

Likelihood that a decision results in an undesirable outcome

Disruptive and Operational

Question 12

What is a series structure?

For the system to operate successfully, then:

The system’s reliability will __ as more serial suppliers are added

Answer 12

It’s a supply chain with single-source suppliers

NO supplier should be disrupted

decrease

Question 13

What is a parallel structure?

For the system to operate successfully:

Answer 13

a part being made by multiple suppliers

AT LEAST ONE supplier must function

Question 14

Define Outsourcing

What are the benefits and risks?

Answer 14

An external firm operates a business process (the external firm sometimes operates at the customer firm’s location).

Benefits: lower direct production & service costs, better efficiency if firm has limited expertise, flexible workforce management, greater process availability, possible lower overhead costs, possible better regulation adherence

Cons: loss of control, poor confidentiality protection, PII infringements, decrease in reputation

Question 15

Offshoring

Answer 15

The process location is moved to another country, and the firm either maintains control of the process or outsources the process.

Question 16

A Kaizen project
- consists of a ___ effort
- a quick “good” solution is __ than the “best” solution which takes longer to accomplish

Answer 16

1-5 day
better than

Question 17

True or False: Respect for people includes placing responsibility for process improvement in the firm’s managers.

Answer 17

False. This is a joint manager-worker responsibility.

Question 18

Deming’s 14 Points for Management aim to

Answer 18

transform organizational practices by emphasizing CONTINUOUS IMPROVEMENT, quality-focused leadership, and collaboration. These principles guide a shift from traditional management approaches to FOSTURE CULTURE OF excellence, TEAMWORK, and ongoing learning, ultimately enhancing overall organizational effectiveness.

Question 19

True or false.
It is better to switch from process to process for different projects rather than adopting one for everything.

Answer 19

False.

The establishment of a CONSISTENT philosophical foundation, supported by an accompanying methodology, is critical.

Question 20

Select all that apply. Corporate structure should:
a. Develop a Sound, Consistent, and Robust Methodology
b. Build Trust by Removing Fear
c. Initiate Long Term Cultural Change
d. Communicate the Vision to all Stakeholders

Question 21

We can deal with uncertainty by:
(name 3 non-process ideas)

Answer 21

adding capacity buffers
analyzing wait time in queues
creating p-charts to study process outcomes

Question 22

True or False: In a serial supply chain, the more suppliers the lower the likelihood that the supply chain will operate successfully.

Answer 22

True

Question 23

“Enterprise Risk Management” (ERM) is a field of study that

Answer 23

identifies, assesses, and mitigates uncertainties/risks that can affect the competitiveness of a firm

Question 24

Risks can be addressed through 3 ways:

Answer 24

avoidance (eliminating the risk)
mitigation (reducing the impact)
transfer (moving the risk to another org/entity)

Question 25

Why can risk transfer approaches be unethical at times

Answer 25

Because the risk is not reduced, it is assumed by another entity. This is unethical if the other entity gets no benefit from the transfer.