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SCM 4367 EXAM 2 STUDY GUIDE

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SCM 4367 EXAM 2 STUDY GUIDE

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SCM 4367 EXAM 2 STUDY GUIDE

Understand that all processes include variation - Answer -- Processes will perform
differently every time when you do them.

Examples: Thickness of your iPhone
- Processing cycle times
- Monthly profit
- Weekly sales
- Monthly Expenses
- Your gas milage

Understand the meaning of the average and standard deviation - Answer -Standard
Deviation: How much variation is in the process, just a number (we are not calculating)

Average: The middle line (center)

Be able to explain the two primary categories of variation - Answer -- Common Causes:
All the little things that impact the process, that are natural in the process.
- They cannot usually be detected easily
- They cannot influenced by management
- "Noise" in the process
- Examples: Everyday traffic, Traffic lights, School zones, Temperature in the air

Special Causes: Not a part of the normal process
- Occurs sporadically in a process
- When noticed, they can be easily defined
- They can be influenced by management
- Examples: Accident, Lane closed, Flat tire, Getting stopped by the cops

Understand the difference between a sample and a population - Answer -- Population:
All the possible combinations of the sum
- Sample: A set of observation drawn from the population

Run Charts & what type of data are best suited for Run Charts - Answer -- Run charts:
Is a tool that helps a person or team to study observed data (a performance measure of
a process) for trends or patterns over a specified period of time

- Run charts (and control charts) provide more statically significant results with a
minimum of 20 data points
- Helps a team develop a movie rather than a snapshot of a problem
- Is by far the most common tool used to track data over time
- Compares a performance measure before and after an important change is made
- Helps a team to focus on the vital changes in the process

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