The solution covers the various aspects of the Six Sigma methodology and processes in Operations Research.
Question 1. Draw a SIPOC diagram for a small, independent bike repair shop that specializes in variety of services. Do not write any narrative.
- Manufacturers Labor As Stated Below Customers Young Adults
- Suppliers Spare Parts Paperwork School Children
- Capital Payments Athletes
- Equipment Repaired Bicycles 2nd Hand Bicycle Shops
Question 2. Assume you are a manager of a small independent retail shop. Write one statement of operations objective for: (1) cost, (2) quality, (3) delivery, and (4) flexibility. (Make up mock-up numbers as necessary) (2 points)
Statement of Operational Objective:
Cost:
- Improve the bottom-line by increasing the margins by 20%
Quality:
- Introduce guarantees on perishables to boost customer confidence in the products
Delivery:
- Provide customers with delivery tracking numbers for online tracking of their purchased products
Flexibility:
- Introduce online shopping by creating a website with a shopping cart for customer convenience
Question 3. What is the concurrent engineering approach to product design? Explain by one example.
Question 4. Assume you are a local pizza store owner. What can be your distinctive operations competence? Explain by one example.
Question 5. A clothes dryer manufacturer did a survey of its 800 customers. It was found that the customers wanted four important attributes in a washer: (1) good looking, (2) easy to operate, (3) energy efficient and (4) noise/vibration free.
Based on these customer requirement attributes, create (draw) a mocked up QFD diagram. Fill up all QFD parts. Label everything. You may have to make up data or numbers.
Question 6. Give one example of a product that is of modular design. Explain why it is modular.
Question 7. Give one example of mass customization. Explain why it is mass customization.
Question 8. A company that totally custom designs and produces its product does not need a strong capability to forecast short term demand. Why?
Question 9. You are a service company and you choose to offer your service with a "high degree of customer contact". What are two key consequences of this choice? Give one example of each.
Question 10. Give one example of a service guarantee.
Question 11. Give one example of service recovery.
Question 12. What is the 5S framework? Give example of each "S."
Question 13. Your company makes Camping Tents. Give one example for each of the following components of cost of quality in your operation:
a. Internal failure cost
b. External failure cost
c. Appraisal cost
d. Prevention cost
Question 14. What is one major difference between Malcolm Baldrige Award and ISO 9000 series of standard?
Question 15. There is no difference in Kaizen and BPR.
Question 16. Cause effect diagram proves root causes.
Question 17. Pareto chart separates "significant few from trivial many"
Question 18. Enterprise Resource Planning (ERP) drives many transaction processes within a company and its modules cover finance, accounting, marketing, operations, engineering, distribution, etc. aspects.
Question 19. ERP has a broader scope in transaction management than MRP.
Question 20. The output of MRP is: (1) Shop orders and (2) Purchase orders.
Question 21. What are the five (5) basic principles of Lean Thinking as per Womack and Jones?
Question 22. What are 7 wastes (mudas) in any process.
Question 23. A process has USL = 22.5, LSL = 17.5; mean = 20; and standard deviation = 3.0
(a) What is Cp?
(b) Cpk?
Question 24. A company making coffee tables makes them in three sizes- small, medium, and large for their Nova model. How many master schedules would be necessary for the material requirements planning of the Nova line?
Question 25. A machine has MTTR = 10 hour; and MTBF = 150 hours. What is its availability?
Question 26. A factory has Average Demand of 2500 units and Capacity of 2000 units. What is its Capacity Cushion?
Question 27 A factory has average output of 220 units per week and a nominal capacity of 300 units per week. What is the utilization?
Question 28. A garment factory making jackets has three sequential departments doing Cutting, Sewing and Packaging. The defect rates are 3%, 7% and 10% respectively. (Show calculations with 3 decimal accuracy)
1. What is the overall first pass defect rate of the factory?
2. What is the overall first pass yield?
3. What is the DPMO?
4. What is the baseline sigma level of the current process?
5. What DPMO level the factory needs in the long run to achieve 4.0 sigma level?