EXAM data
Open book
Exam prepared by Mikkel Nüssler
Please note: Each of the exam assignments has an individual weight. The weight is expressed as a percentage.
Assignment 1 (Weight: 20%): LEAN and TQM
Based on the case ‘Office Chairs Inc.’:
A. Evaluate the organizational changes made by the company in 2005 relative to the theory of LEAN and TQM.
Assignment 2 (Weight: 60%): LEAN – Value Stream Analysis
Based on the case ‘Office Chairs Inc.’:
A. Make a Value Stream Map (VSM) of the company’s current set-up
B. Analyze the current value stream and describe waste and improvement opportunities (Kaizen events).
C. Present a VSM future state, and discuss/argue for your choices of design
Assignment 3 (Weight: 20%): Six Sigma
A. Explain what characterize a process that has a Six Sigma Capability.
B. Explain the difference between special cause variation and common cause variation (i.e. assignable variation versus system variation), and why the ability to identify and distinguish between these types of variation is crucial when working with Six Sigma.
Case to the exam assignment: Office Chairs Inc.
The company ‘Office Chairs, Inc. (in the case ‘the Company’) designs and produces office chairs. The company is placed in Denmark where administration, design and manufacturing takes place.
The company sells its chairs to whole sellers throughout the EU, who in turn sell the chairs to retailers. Both the whole sellers and retailers keep a small inventory of the company’s chairs.
Market situation:
Since 2005 the company has experienced an increasing pressure from the whole sellers demanding:
1. Lower prices
2. Faster delivery performance (lead time)
3. More product variants
4. Customer tailoring (i.e. the customer designs his/her own chair)
Key financial figures:
Figure
Year
2006
2007
2008
Total revenue (in million DKR)
235
243
238
Number of chairs sold (in