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QUESTION: 11

Up-to-date information about production order status is required to do which of the following tasks?

Calculate current take time.
Determine planned orders.
Replenish kanban quantities.
Calculate the cost of work in process (WIP).

Answer(s): D

Explanation:

Up-to-date information about production order status is required to calculate the cost of work in process (WIP). WIP is the inventory of unfinished goods or partially completed products that are still in the production process1. The cost of WIP is the sum of the costs of the materials, labor, and overhead that have been incurred in the production process but have not yet been transferred to the finished goods inventory2. To calculate the cost of WIP, we need to know how much of each production order has been completed and how much remains to be done. This information can be obtained from the production order status, which is a report that shows the current status of each production order in terms of its quantity, start date, end date, completion percentage, and variance3. By using the production order status, we can determine the amount of WIP for each production order and for the entire production process. This can help us monitor and control the production efficiency, profitability, and quality4.

Reference:

1: Work In Progress (WIP) Definition 2 2: Work-in-Process (WIP) Accounting 3 3:
Production Order Status Report 5 4: How to Calculate Work in Process Inventory 6

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QUESTION: 12

A machine is suddenly having excessive downtime.
Which of the following tools would be used in a root cause corrective action process to determine the problem?

Failure mode effects analysis (FMEA)
Standardized work analysis chart
Balance chart
A3 method

Answer(s): D

Explanation:

A3 method is a tool that can be used in a root cause corrective action process to determine the problem of a machine that is suddenly having excessive downtime. A3 method is a structured problem-solving approach that follows the Plan-Do-Check-Act (PDCA) cycle and uses a single sheet of paper (A3 size) to document the problem, analysis, countermeasures, and results1. A3 method can help identify the root cause of a problem by using tools such as the 5 Whys or the fishbone diagram, and then develop and implement effective corrective actions to prevent recurrence2. A3 method can also help communicate the problem and the solution to stakeholders, as well as monitor and evaluate the outcomes3.
The steps of the A3 method are4:
Step 1: Define the problem and its impact. Describe the current situation, the gap between the actual and the desired state, and the scope and magnitude of the problem. Step 2: Identify the root cause of the problem. Use tools such as the 5 Whys or the fishbone diagram to analyze the factors that contribute to the problem and drill down to its root cause. Step 3: Propose countermeasures to address the root cause. Generate possible solutions that can eliminate or reduce the root cause, and evaluate their feasibility, effectiveness, and costs. Step 4: Implement countermeasures. Select the best solution and plan how to execute it. Define the roles, responsibilities, resources, timeline, and expected outcomes of the implementation. Step 5: Check results and process. Measure and compare the results before and after the implementation, and verify if the problem has been solved or improved. Also check if the process has been followed correctly and document any deviations or issues. Step 6: Standardize successful processes or identify unresolved issues. If the results are satisfactory, standardize the new process and ensure that it is sustained. If not, identify the remaining or new issues and repeat the A3 method.
Therefore, A3 method is a tool that can be used in a root cause corrective action process to determine the problem of a machine that is suddenly having excessive downtime.

Reference:

1: What is an A31 2: How to Use an A3 Report for Problem Solving 2 3: The A3 Problem Solving Method 4 4: The A3 Report A Simple Tool for Complex Problems 5

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QUESTION: 13

Which of the following techniques would a group use to prioritize problems?

Critical path analysis
Pareto analysis
Scatter charts
Cause-and-effect diagrams

Answer(s): B

Explanation:

Pareto analysis is a technique that a group can use to prioritize problems. Pareto analysis is based on the Pareto principle, also known as the 80/20 rule, which states that 80% of the effects come from 20% of the causes1. Pareto analysis can help a group identify and focus on the most significant problems that account for the majority of the negative outcomes, and allocate their resources and efforts accordingly2.
The steps of Pareto analysis are3:
Step 1: Define the problem and its scope. Clarify what the problem is, why it is important, and what are the desired outcomes.
Step 2: Identify the causes of the problem. Brainstorm and list all the possible factors that contribute to the problem, such as people, processes, equipment, materials, environment, etc. Step 3: Collect data on the causes. Gather quantitative or qualitative data on how often or how much each cause affects the problem, such as frequency, severity, cost, time, etc.

Step 4: Analyze the data using a Pareto chart. A Pareto chart is a type of bar chart that shows the frequency or impact of each cause in descending order, along with a cumulative line that shows the percentage of the total effect. A Pareto chart can help visualize which causes are more significant than others, and where the 80/20 split occurs.
Step 5: Prioritize the causes and take action. Based on the Pareto chart, select the most critical causes that need to be addressed first, and develop and implement solutions to eliminate or reduce them. Monitor and evaluate the results and repeat the process if necessary. Therefore, Pareto analysis is a technique that a group can use to prioritize problems by identifying and focusing on the most significant causes that account for the majority of the negative outcomes.

Reference:

1: The Pareto Principle - The 80/20 Rule Explained 1 2: How to Use Pareto Analysis to Improve Your Business 2 3: How to Perform a Pareto Analysis (Step-by-Step) 3

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