Final Exam

Question 1

5 process categories of the SCOR model

Answer 1

Plan
Source
Make
Deliver 
Return

Question 2

External failure costs

Answer 2

Result from defects discovered after customer receives product or service

Question 3

ISO 9000

Answer 3

International quality certification that helps organisations to understand basics of quality management and identify their quality and areas for improvement

Question 4

Business process

Answer 4

Any activity that adds value to an input and provides an output

Question 5

3 requirements of a good process

Answer 5

Good intentions
Reproducible results
Measurable and manageable

Question 6

Reasons for bad processes

Answer 6

Ambiguity of goals
Misalignment of goals and actions
Miscommunication to employees

Market evolutions- customers needs change
Lack of tools
Development of poor processes

Question 7

Cow path theory

Answer 7

A cow was not told to do his job, had to figure out how to get to the water himself.
Effective does not mean efficient
A good job doesn’t have directions

Question 8

Stages of designing a business process

Answer 8

1. Define goals, values, stakeholders, block diagram
2. Define success, measurement and management
3. Develop process map, evaluate and test, improve

Question 9

Block diagram

Answer 9

Not at all detailed, puts us in a mind set of what is going on

Question 10

Scope inflation

Answer 10

Allowing scope to get so big you cannot handle everything

Question 11

Attributes of a good consultant

Answer 11

Data skills
Values feedback
Creativity 
Understands people
Change agent
Desire to help people
Values simplicity

Question 12

Common consulting errors

Answer 12

Making assumptions
Developing solutions too soon
Listening to clients pre fabricated solutions
Scope inflation
Sticking to a dead end scope
Maintaining happiness

Question 13

Business process improvement

Answer 13

Desired state- goals
Present state- collect data
Gap analysis- compare above
Project scope- focus
Collect and share data- get feedback
Develop solutions
Develop implementation plan

Question 14

Developing solutions

Answer 14

Ask: does problem require innovation?
Avoid one size fits all solutions
Start with two options and eliminate
Bruise on skin- must stop bad things that cause the bruise not make bruise better

Question 15

Gap analysis

Answer 15

Illustrate the gap
Do not develop solutions
Share and discuss gap with client
Consider why gap exists

Question 16

Scoping project

Answer 16

Develop focused project
What gap will be addressed?
Establish goals and outcomes
What will be investigated/ developed?

Question 17

Selling solutions

Answer 17

Present valuable idea upfront
Convince on cost benefit, value to worn, organisational fit
Explain path to success with metrics
Implementation

Question 18

Project

Answer 18

An endeavour where human material and financial resources are organised in a novel way

Question 19

4 steps in project management

Answer 19

Define project- 50% of time is planning
Establish priorities- cost time and performance triangle
Work breakdown structure- focus on people, time, and cost separately, make estimates
Track project process- are we on time?

Question 20

Objectives examples

Answer 20

Improve design, reduce cost by 10%, reduce delivery times by two days

Question 21

Deliverables examples

Answer 21

Documents, reports, contracts, research data, physical outputs, software

Question 22

Performance metric

Answer 22

A single performance measurement used to evaluate, motivate, improve

Question 23

System of metrics

Answer 23

Collection of measurements used to evaluate something from multiple perspectives

Question 24

Reasons organisations use metrics

Answer 24

Helps us manage from afar
Helping us manage large numbers of resources 
Motivating good decisions
Help identify standards 
Point to required corrective actions

Question 25

Problems of a poor metric like GPA

Answer 25

Motivates students to take easy classes Doesn’t tell which classes a student is good at Doesn’t tell if someone improved or their GPA stayed the same

Question 26

Requirements of a good metric

Answer 26

``` Measurable Easily understood Attainable Strategically oriented Provides value, guidance Easy to measure Cheater proof Motivates someone to change ```

Question 27

Cash to cash cycle

Answer 27

Amount of days that inventory money is out of pocket Days of inventory + days of accounts receivable + days of accounts payable

Question 28

Balance scorecard measurements

Answer 28

Financial results Customer results Operational effectiveness Learning/growth perspective

Question 29

Capacity utilisation

Answer 29

Percentage of total available capacity presently being used Actual output/design capacity

Question 30

Process velocity

Answer 30

Measures time productivity Time a job is in a system/ time item was worked on during processing

Question 31

Penalty

Answer 31

Penalty cost per week x (critical path - company goal)

Question 32

Slack time of a path

Answer 32

Critical path - path asked about

Question 33

Quality

Answer 33

How the customer feels about what they paid

Question 34

Dimensions of product quality

Answer 34

``` Performance Reliability Durability Features Aesthetics Reputation ```

Question 35

Dimensions of service quality

Answer 35

Serviceability- can an item be fixed and at what cost? Service response- can someone find help ``` Time Complete Accurate Responsive Courtesy Convenient ```

Question 36

Total quality management

Answer 36

3 principles: customer, involvement, continuous improvement Basis of every quality management program

Question 37

Six sigma

Answer 37

Motorola program focused on defect elimination. Problem before was focusing on not making mistakes and there was no innovation

Question 38

Types of benchmarking

Answer 38

Competitive- against competitors | Functional- different industry similar process

Question 39

SCM it system requirements

Answer 39

``` Low cost Speed, efficient delivery On time Tracking Quality Shrinkage Accuracy ```

Question 40

ERP system

Answer 40

Bucket of numbers, transactions are recorded here. Does not process numbers Stores our financial operations and hr data in central database

Question 41

ERP purchasing considerations

Answer 41

Single vendor approach- get a package deal | Best of breed approach- buying all the pieces from the best companies, more expensive

Question 42

RFID

Answer 42

Dormant, only woken up when hit by RFID reassert. Can scan 100 of the same item at once and can tell where each was made and when

Question 43

Blockchain

Answer 43

List of records that are collected among a shared network of computers that cannot be corrupted. Can track money, inventory, most other things “Distributed ledger”

Question 44

Artificial intelligence

Answer 44

Cognitive computing- most like humans Machine learning Rooted in Bayesian statistics

Question 45

SMART metrics

Answer 45

``` Specific Measurable Attainable Relevant Timely ```

Question 46

3 measurement attributes

Answer 46

Effective- meeting expectations Efficient- minimising resources Adaptable- handle special requests

Question 47

Executive dashboard

Answer 47

Computer generated visual representation of a company’s performance available to executives digitally

Question 48

Managerial paralysis

Answer 48

Situation where managers can’t make decisions due to information overload, too focused on strategic activity

Question 49

Shared metric

Answer 49

A metric that is impacted by two related parties

Question 50

SCOR model

Answer 50

Enables supply chain partners to track performance, communicated progress and develop opportunities for improvement

Question 51

Perfect order fulfilment

Answer 51

Percentage of orders that are full, arrive on time, and are damage free

Question 52

Costs of quality

Answer 52

Internal failure- wasted resources External failure- problems that reach consumer, warranty costs Appraisal costs- costs of monitoring quality Prevention costs- fix present problems