Test 1 Discussion/Textbook Questions

Question 1

True or False: Lean is valid for unstable demand or seasonable products

Answer 1

False, lean is also not valid depending on the goal of the company (i.e., craft production)

Question 2

True or False: A product from a lean production environment can revert back to a craft production environment (niche market)

Answer 2

True, but the product will become a lot more expensive

Question 3

Fill in the blank: If you have a seasonally variable product, you can implement lean through __________

Answer 3

Modular design (i.e., multifunctional products like snowmobile motors that can also function as lawn mower motors)

Question 4

Explain the downfall of Nortel

Question 5

Explain the downfall of blackberry

Question 6

Explain the downfall of Kodak

Question 7

When would mass production be appropriate

Answer 7

If you have minimal competition. However, it will not last in the long term and you will need to implement lean to stay competitive

Question 8

True or False: Elements in lean can be applied anywhere, especially when there is large volume, stable demand, and in parts with many components

Answer 8

True, stable demand is in fact necessary for lean to function well

Question 9

What are some methods to analyze a company’s practices to assess if they utilize TQM

Answer 9

• Look at their practices and procedures
• Look at their mission, vision, and values
  
  • Should be an alignment of what they say and what they do
• “go see”
• Check if employees know their overall role in the company
• Morale problems (lack of alignment with mission, bad management, bad culture)

Question 10

Does the supplier or buyer set the quality level of a product

Answer 10

The buyer does

Question 11

True or False: In lean, a firm will not work with their supplier and will search for other suppliers that match their quality requirements

Answer 11

False, lean firms work with their suppliers in order to meet quality standards. The goal is to avoid incoming inspections (non-value added) with the goal of only having periodic audits

Question 12

What are some potential steps are involved in optimizing a production process

Answer 12

VSM, identify immediate fixes, take note of Takt times, compare processes to Toyota’s 7 wastes, create a future/ideal VSM, eliminate bottlenecks, determine if kanbans are needed

Question 13

What are the six biases, explain them, and describe ways to counter them

Answer 13

Bandwagon bias:
- the opinion of most is the opinion of all
- countered by slowing down the decision making process and questioning why certain opinions are held

Anchoring bias:
- the first piece of information we are given about a problem is what we rely on
- countered by keeping an open mind

Planning fallacy:
- the fact of having a plan boosts confidence that success is more likely, things will get done quickly, and plans may be too ambitious
- countered by consulting with others, and in particular, those not associated with the issue to scrutinize the plans

Cognitive dissonance:
- two opposing ideas creates discomfort in one’s head
- countered by stopping and examining why you may have an opinion, and if it is based on fact or personal factors

Optimism bias:
- overestimate the chances of success, underestimate the chances of failure
- countered by considering all factors and presenting all the scenarios before communicating info to the whole organization

Category size bias:
- macro patterns do not equal micro patterns and symptoms of the macro patterns do not equal the root cause
- countered by reviewing the logic on which the decision has been made at the micro vs the macro level