WGU C720 Operations and Supply Chain Management Study Guide with Complete Solution 2023/2024

WGU C720 Teamwork - Correct Answer-Teamwork in operations benefit the customer when coordinated decisions within an organization produce high quality products that customers value. Teamwork can help make improvements to products. To remain competitive in the global marketplace, teamwork should be utilized to help solve quality and productivity problems. Product and process design - Correct Answer-Product and process design are crucial and relate to both the design of goods and services. Product design - Correct Answer-consideration of the characteristics, features, and performance of the product. Product technology - Correct Answer-application of knowledge to improve the product. Process design - Correct Answer-describes how a product will be made. Process technology - Correct Answer-application of knowledge to improve a process. Common goals - Correct Answer-Most organizations develop common goals during the budgeting and planning process, which are done annually. Most common type of organization - Correct Answer-Many businesses are shifting to organization by process due to today's fast paced environment. Organizational structures - Correct Answer-designed by process cross-functional lines. Cross-functionality - Correct Answer-a unique feature important to any organization. Eliminating functional silos - Correct Answer-allows teams to share knowledge and understanding of decision-making across the organization. Decentralizing decision - Correct Answer-making leads to more cross-functional teams. Relative advantage - Correct Answer-The difference between the lowest cost producer and the next-lowest cost producer. Ethics - Correct Answer-A sense of what is right and wrong that guide behavior. Sustainability - Correct Answer-Reflects the efforts organizations are expected to make to balance their interconnected obligations to economic viability, the societies in which they operate, and the natural environment - the "triple bottom line." Organizational focus points - Correct Answer-Organizations need to focus on how a decision affects not just profitability, but also employees, the community, and the environment, in the long and short term. Competitive advantage - Correct Answer-A capability that customers value that gives an organization an edge against its competition. VIRAL - Correct Answer-VIRAL= Value to consumers, it should be Inimitable (not easily imitated), Rare, and an organization should have the Aptitude and Lifespan to earn appropriate returns on the advantage. SWOT Analysis - Correct Answer-Assists in planning to achieve objectives. Strength, Weakness, Opportunity and Threat Key processes organizations must have: - Correct Answer-Strategy development, product development, development of systems to produce services and goods, and order fulfillment to leverage impact. Systems development - Correct Answer-Key to meeting strategic goals. Resources include: people, facilities, equipment, materials, and energy. Process redesign - Correct Answer-Facilitates working toward a common goal in organizations. Productivity - Correct Answer-A mathematical calculation. It is the ratio of the outputs achieved divided by the inputs consumed to achieve those outputs. Productivity Formula - Correct Answer-Productivity = Output / Input. Change in productivity = (new productivity - old productivity) / old productivity. Labor Productivity Formula - Correct Answer-Labor productivity = Quantity or value of units produced divided labor hours or labor cost. Quality - Correct Answer-Determined by the customer and how the customer will use a product. Used to judge service quality: - Correct Answer-Reliability- ability to perform the promised service dependably and accurately. Responsiveness- willingness to help customers and provide prompt service. Assurance- knowledge and courtesy of employees and their ability to convey trust and confidence. Empathy- provision of caring, individualized attention to customers. Tangibles- appearance of physical facilities, equipment, personnel, and communication materials. Factors that determine quality for goods: - Correct Answer-Performance- primary operating characteristic of a product Features- secondary characteristics that supplement the product's basic functioning. Reliability- length of time a product will function before it fails or the probability it will function for a stated period of time. Conformance- degree to which a product's design and operating characteristics match pre-established standards. Durability- ability of a product to function when subjected to hard and frequent use. Serviceability- speed, courtesy and competence of repair. Aesthetics- how a product looks, feels, sounds, tastes, or smells. Perceived quality- image, advertising, or brand name of a product. Failure costs - Correct Answer-Can be internal to the organization (defects found before product reaches consumer) or external after reaching the customer (cost of warranty repair work, handling complaints, or replacing products). Failure costs can lead to: lost goodwill, legal liability if someone is injured/killed, and even loss of customers. Appraisal costs - Correct Answer-Investment in measuring the quality and assessing customer satisfaction. Appraisal costs include: costs involved with customer satisfaction surveys, hiring individuals to inspect property at a hotel chain, or testing computers to ensure they will operate as intended. Prevention costs - Correct Answer-Put a stop to the quality problem. Prevention costs include: activities such as employee training, quality control procedures or other activities designed to prevent product defects. Statistical process control (SPC) - Correct Answer-The use of statistical methods to determine when a process that produces a good or service is getting close to producing an unacceptable level of defects. Walter Shewhart - Correct Answer-Father of statistical quality control. Founding father of statistical process control. Developed the P-D-C-A (Plan Do Check Act) which came to be known as Shewhart Cycle, and also the Deming Wheel. However, Deming preferred to call it the Shewhart Cycle. Deming later revised it to P-D-S-A (Plan Do Study Analyze) because he felt "check" emphasized inspection over analysis. Deming's 14 points for transformation of management: - Correct Answer- a. - Correct Answer-1. Create constancy of purpose toward improvement of product and service. Aim to become competitive and to stay in business, and provide jobs. 2. Adopt the new philosophy. 3. Cease dependence and inspection to achieve quality. 4. End the practice of awarding business on the basis of price tag. 5. Improve constantly and forever the system of production and service. 6. Institute training on the job. 7. Institute leadership. 8. Drive out fear so everyone may work effectively for the company. 9. Break down barriers between department. 10. Eliminate slogans, exhortations, and targets for the workforce asking for zero defects and new levels of productivity. 11. Eliminate work standard on the factory floor. Substitute leadership. Eliminate management by objective. 12. Remove barriers robbing the hourly worker of his right to pride of workmanship. 13. Institute a vigorous program education and self-improvement. 14. Put everybody in the company to work to accomplish the transformation. Deming's basic premise: - Correct Answer-Systems, not employees cause defects. Deming - Correct Answer-Deming emphasized the importance of training employees to use tools of statistical process control. Joseph Juran - Correct Answer-1950s began his "cost of quality" approach, which stressed the desirability of lowering costs associated with prevention. Juran also suggested the Pareto Principle (he named it after Italian economist Vilfredo Pareto). Pareto Principle is known as 80/20 Rule (80% of effects come from 20% of causes). Pareto Principle has become standard term to describe any situation where a relatively small percentage of factors are responsible for the substantial percentage of effect. Juran believed that product quality means "fitness for use" which gives the customer the best value. Emphasized management's responsibility for ensuring quality. Emphasized need for continuous improvement through 3 quality elements: planning, control, improvement. Quality planning - Correct Answer-(Juran)- the development of products and services that appeal to the ever-changing customer wants and needs. Quality Control - Correct Answer-(Juran)- Inspection and control functions revolve around understanding the customer's perception of fitness of use. Quality improvement - Correct Answer-(Juran)- The elimination of waste and errors is something that must be led by leadership of a firm. Crosby - Correct Answer-Stated that all errors must be eliminated. Believed that failure costs were much higher than companies thought and creating a zero-error environment was key. "Do it right the first time" Taguchi - Correct Answer-Quality must be designed into a product. Quality cannot be achieved through inspections after the good is made or the service is provided Robust design - designs that guarantee the highest quality product or procedure. regardless of variations perfecting of experiments to create higher quality products and processes Ishikawa - Correct Answer-Developed a diagram to show cause and effect relationships. (Fishbone diagram). Teamwork is essential - quality circles. Quality with an external orientation feature focuses on customer needs rather than product characteristics. "Quality is the capacity to satisfy customers' needs." Quality with internal orientation focuses on the characteristics of the product/service. Quality circles and cycles (Include all employees, agree with Deming) teamwork is essential for quality leadership Quality function deployment - Correct Answer-Transforming customer expectations into specific actions designed to meet those expectations. Total quality management (TQM) - Correct Answer-An approach to quality management that originated in Japan and was adopted successfully by many companies throughout the world. Focus on the customer. Quality function development. Responsibility for quality. Team problem-solving. Employee training. Fact-based management. Whole business focused on quality vs. a quality control department Focus on the customer, quality function deployment, responsibility for quality, team problem solving, employee training, fact-based management. Voice of the customer (VOC) - Correct Answer-Describes what customers want and that they like and do not like. Quality function deployment (QFD) - Correct Answer-One method that can be used to make that transformation by relating customer needs and expectations to specific design characteristics through a series of grid or matrices. House of quality matrix (what vs. how - customer needs vs. design characteristics) helps a company evaluate trade-offs.