And CORRECT Answers
Why study business process management? - CORRECT ANSWERS Processes form the backbone
for capabilities. Firms compete on competitive capabilities.
Little's Law - CORRECT ANSWERS I = R x T (avg. Inventory = avg. Throughput Rate x avg. Flow
Time)
Theoretical Capacity - CORRECT ANSWERS Number of Flow Units Processed by the Resource
Pool during "Scheduled Availability"
Effective or Core Capacity - CORRECT ANSWERS Number of Flow Units Processed by the
Resource Pool during "Net Availability"
Process Capacity - CORRECT ANSWERS Accounts for starving and blocking during net
availability
Throughput - CORRECT ANSWERS Rate at which finished goods are produced or completed per
unit of time, determined by the system's capacity or by external demand, whichever is lower.
Nominal Value - CORRECT ANSWERS Customer specification - "what it should be"
Tolerance/Allowance - CORRECT ANSWERS Range around the nominal value that is acceptable
Defects - CORRECT ANSWERS physical blemishes like a dent, tear, scratch
Defectives - CORRECT ANSWERS Products that contain defects
Percent of Production Within Specifications - CORRECT ANSWERS percentage of total units
produced that meet specs at the end, including those that were reworked
, Yield (First Pass Yield) - CORRECT ANSWERS percentage of units that meet specs the first time
without any rework
Rolled Throughput Yield (RTY) - CORRECT ANSWERS the probability that a unit passes through
all steps in a process with no defects at any stage
Cp - CORRECT ANSWERS Process Capability Ratio
- Process variability and how it stacks up vs allowance
- "How spread out are your dart throws?"
- Higher Cp means higher performance and less defects bc std dev must be decreased
Cpk - CORRECT ANSWERS - How off-centered the process average is vs US and LS (nominal)
- "Are your dart throws hitting the target?"
- Whichever side the process average is skewed towards will determine where more defects occur
K-Sigma Level - CORRECT ANSWERS The number of standard deviations between the process
mean and the nearest specification limit, showing how capable the process is at avoiding defects.
- Higher K is good
What is the definition of a Value Stream Map? - CORRECT ANSWERS End-to-End logical view of
a manufacturing process for a product family that spans material flow and information flow.
What are 2 ways to define product families? - CORRECT ANSWERS A few products that account
for major production volume, or cluster by production resource similarities
Lean is particularly important for: - CORRECT ANSWERS - Steady demand, repetitive production
products
- Cost of holding the product in stock is much higher than the cost of production setup or ordering
- Cost of holding the product is much higher than the cost of stockout
DMAIC: Define - CORRECT ANSWERS Defining the objective and scope of the project