BUSG 551 Final Exam Study Guide

The final exam for BUSG 551 will be composed of 4-6 questions. You will be allowed
one-half of one page to write your answer to each question. The questions will be
derived from the following general study questions.
1. Systems and systems thinking
1. Identify and describe the major components of the production system
(inputs, transformational processes, outputs). Be able to apply these
to an example provided.

2. Explain the difference between managing the parts and managing

the interaction of the parts.

3. Why does having all the best parts in a process not result in the best
process?

2. Variation and statistical process control

1. What is the difference between common cause and special cause
variation?
The cause of variations in a stable process is called a Common Cause.
A common cause is a natural cause of variation in the system.
EXAMPLES- Machine vibration, Temperature fluctuations, Slight variation in
raw materials, Human variation in setting control dials, Normal traffic,
weather, work volume
2 Ways to reduce common cause variation: Reduce Variation in a Stable
Process
By Making Permanent Improvements/Changes

 Centering at Target
Reducing Magnitude of Variation
Anything that causes variations that are not part of the stable process is
called a special cause, assignable cause, or unnatural cause.
EXAMPLES-Batch of defective raw material, Faulty set-up, Human error,
Incorrect recipe, Blown gasket, Earthquake
IMPROVE SPECIAL CAUSE VARIATION-4 step process
Detect the special cause variation.
Identify the special cause.
Fix the process
Remove the special cause, or
Compensate for the special cause.
Prevent the special cause from occurring again

2. What is the difference between control limits and specification limits?

3. Given a statistical process control chart, be able to identify whether or

not the system in in or out of control, and if out of control, why.
3. Project management

1. Given two of the three organizational structures discussed in Session 4

(functional, projectized, strong matrix), be able to discuss the relative
strengths and weaknesses of each in supporting projects.

2. What is included in a project charter? Why is the project charter such

an important document?

3. Given a project charter, be able to develop a work breakdown structure

(WBS) for that project with at least 9 major tasks arranged into logical
categories. Be able to identify the purpose of preparing a WBS.

4. What is the critical path and how is it determined? Be able to

construct a project network diagram and perform the forward and
reverse pass critical path scheduling.

4. Theory of constraints and critical chain project scheduling

1. How is critical path scheduling different from critical chain (CCPM)
scheduling? Be able to explain the role of a project buffer in CCPM.

2. Be able to explain what takes place in estimating task duration (see

Figure 1 below).

3. Be able to explain why multi-tasking delays projects (see Figure 2

below).

5. Six Sigma
1. What does Six Sigma mean? What is the primary purpose of using
Six Sigma for process improvement?

2. Describe and be able to apply each of the five stages in the DMAIC
process.

3. For a process improvement project provided, be able to prepare a

Cause and Effect Diagram (also called Fishbone or Ishikawa Diagram)
identifying at least three possible causes for each of four dimensions
you select.

6. Lean Enterprise
1. What is the difference between value and waste? Given the
description of a process, be able to identify value-adding and nonvalue-adding steps in the process.

2. Given the description of a process, be able to develop a value stream

map (VSM) for that process? From the VSM be able to identify
opportunities for lean improvements.

3. For a situation provided, describe and be able to apply the five steps in
the 5S process.

Figure 1

Figure 2