Mgmt 318-chapter 16

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Mgmt 318-chapter 16

  
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  • 1. 
    34) Which of the following is generally found in most JIT environments?
    • A. 

      A) a push or pull system, depending upon the rate of demand

    • B. 

      B) a push system for high margin items and a pull system for low margin items

    • C. 

      C) a push system for purchased parts and a pull system for manufactured parts

    • D. 

      D) push systems

    • E. 

      E) pull systems


  • 2. 
    35) Which of the following is not a reason for variability?
    • A. 

      A) Employees, machines, and suppliers produce units late.

    • B. 

      B) Customer demand is unknown.

    • C. 

      C) Employees, machines, and suppliers produce units that conform to standards.

    • D. 

      D) Engineering drawings are inaccurate.

    • E. 

      E) Drawings or specifications are incomplete.


  • 3. 
    36) Which of the following is specifically characterized by a focus on continuous improvement, respect for people, and standard work practices?
    • A. 

      A) Just-in-time (JIT)

    • B. 

      B) Toyota Production System (TPS)

    • C. 

      C) Lean operations

    • D. 

      D) Material requirements planning (MRP)

    • E. 

      E) kanban


  • 4. 
    37) Which of the following is specifically characterized by continuous and forced problem solving through a focus on throughput and reduced inventory?
    • A. 

      A) Just-in-time (JIT)

    • B. 

      B) Toyota Production System (TPS)

    • C. 

      C) Lean operations

    • D. 

      D) Material requirements planning (MRP)

    • E. 

      E) kanban


  • 5. 
    38) Which of the following statements regarding a pull system is true?
    • A. 

      A) Large lots are pulled from upstream stations.

    • B. 

      B) Work is pulled to the downstream stations before it is actually needed.

    • C. 

      C) Manufacturing cycle time is increased.

    • D. 

      D) Problems become more obvious.

    • E. 

      E) None of the above is true of a pull system.


  • 6. 
    39) Manufacturing cycle time is best defined as the
    • A. 

      A) length of the work shift, expressed in minutes per day

    • B. 

      B) time it takes a unit to move from one workstation to the next

    • C. 

      C) time between the start of one unit and the start of the next unit

    • D. 

      D) sum of all the task times to make one unit of a product

    • E. 

      E) time from raw materials receipt to finished product exit


  • 7. 
    40) Which of the following is specifically characterized by the elimination of waste through a focus on exactly what the customer wants?
    • A. 

      A) Just-in-time (JIT)

    • B. 

      B) Toyota Production System (TPS)

    • C. 

      C) Lean operations

    • D. 

      D) Material requirements planning (MRP)

    • E. 

      E) kanban


  • 8. 
    41) What is the time required to move orders through the production process, from receipt to delivery?
    • A. 

      A) throughput

    • B. 

      B) manufacturing cycle time

    • C. 

      C) pull time

    • D. 

      D) push time

    • E. 

      E) queuing time


  • 9. 
    42) Throughput measures the time
    • A. 

      A) that it takes to process one unit at a station

    • B. 

      B) between the arrival of raw materials and the shipping of finished products

    • C. 

      C) to produce one whole product through an empty system (i.e., with no waiting)

    • D. 

      D) required to move orders through the production process, from receipt to delivery

    • E. 

      E) none of the above


  • 10. 
    43) Which of the following is not one of the Seven Wastes?
    • A. 

      A) overproduction

    • B. 

      B) transportation

    • C. 

      C) assignment

    • D. 

      D) defective product

    • E. 

      E) motion


  • 11. 
    44) The 5Ss
    • A. 

      A) have the "flavor" of a housekeeping list

    • B. 

      B) are a checklist for lean operations

    • C. 

      C) have become a list of seven items in American practice

    • D. 

      D) can be used to assist with necessary changes in organizational culture

    • E. 

      E) All of these are true.


  • 12. 
    45) The list of 5S's, although it looks like a housekeeping directive, supports lean production by
    • A. 

      A) identifying non-value items and removing them, in the "sort/segregate" item

    • B. 

      B) reducing inventory, in the "standardize" item

    • C. 

      C) increasing variability through standardized procedures, in the "standardize" item

    • D. 

      D) eliminating wasted motion through ergonomic studies, in the "support" item

    • E. 

      E) building good safety practices, in the "shine/sweep" item


  • 13. 
    46) Concerning relationships with suppliers, which of the following combinations is critical to the success of JIT?
    • A. 

      A) close relationships with trust

    • B. 

      B) close relationships with skepticism

    • C. 

      C) distant relationships with trust

    • D. 

      D) distant relationships with skepticism

    • E. 

      E) none of the above


  • 14. 
    47) Which one of the following is not a benefit of the implementation of JIT?
    • A. 

      A) cost reduction

    • B. 

      B) variability increase

    • C. 

      C) rapid throughput

    • D. 

      D) quality improvement

    • E. 

      E) rework reduction


  • 15. 
    48) If the goals of JIT partnerships are met, which of the following is a result?
    • A. 

      A) For incoming goods, receiving activity and inspection are outsourced.

    • B. 

      B) In-transit inventory falls as suppliers are located closer to facilities.

    • C. 

      C) The number of suppliers increases.

    • D. 

      D) In-plant inventory replaces in-transit inventory.

    • E. 

      E) All of the above are consequences of meeting the JIT partnership goals.


  • 16. 
    49) Which one of the following is a characteristic of a JIT partnership?
    • A. 

      A) large number of suppliers

    • B. 

      B) maximal product specifications imposed on supplier

    • C. 

      C) active pursuit of vertical integration

    • D. 

      D) removal of incoming inspection

    • E. 

      E) frequent deliveries in large lot quantities


  • 17. 
    50) Characteristics of JIT partnerships with respect to suppliers include
    • A. 

      A) competitive bidding encouraged

    • B. 

      B) buyer plant pursues vertical integration to reduce the number of suppliers

    • C. 

      C) support suppliers so they become or remain price competitive

    • D. 

      D) most suppliers at considerable distance from purchasing organization

    • E. 

      E) All of the above are characteristics of JIT partnerships.


  • 18. 
    51) Characteristics of just-in-time partnerships do not include
    • A. 

      A) removal of in-transit inventory

    • B. 

      B) large lot sizes to save on setup costs and to gain quantity discounts

    • C. 

      C) long-term contracts

    • D. 

      D) few suppliers

    • E. 

      E) buyer helps supplier to meet the quality requirements


  • 19. 
    52) Which of the following is not a goal of JIT partnerships?
    • A. 

      A) removal of unnecessary activities

    • B. 

      B) removal of in-plant inventory

    • C. 

      C) removal of in-transit inventory

    • D. 

      D) removal of engineering changes

    • E. 

      E) All of the above are goals of JIT partnerships.


  • 20. 
    53) A characteristic of JIT partnerships with respect to quality is to
    • A. 

      A) help suppliers meet quality requirement

    • B. 

      B) inspect all incoming parts

    • C. 

      C) maintain a steady output rate

    • D. 

      D) impose maximum product specifications on the supplier

    • E. 

      E) draw up strict contracts ensuring that all defectives will be immediately replaced


  • 21. 
    54) Which of the following is not a goal of JIT partnerships?
    • A. 

      A) removal of unnecessary activities

    • B. 

      B) removal of in-plant inventory

    • C. 

      C) removal of in-transit inventory

    • D. 

      D) obtain improved quality and reliability

    • E. 

      E) All of the above are goals of JIT partnerships.


  • 22. 
    55) Which one of the following is a concern expressed by suppliers?
    • A. 

      A) elimination of in-plant inventory

    • B. 

      B) delivery to the point of use

    • C. 

      C) production with zero defects

    • D. 

      D) large lot sizes

    • E. 

      E) customers' infrequent engineering changes


  • 23. 
    56) Reduction of in-transit inventory can be encouraged through use of
    • A. 

      A) supplier location near plants

    • B. 

      B) low setup costs

    • C. 

      C) low carrying costs

    • D. 

      D) use of trains, not trucks

    • E. 

      E) low-cost, global suppliers


  • 24. 
    57) In JIT partnerships, suppliers have several concerns. Which of the following is not such a concern?
    • A. 

      A) desire for diversification

    • B. 

      B) poor customer scheduling

    • C. 

      C) small lot sizes

    • D. 

      D) producing high enough quality levels

    • E. 

      E) customers' infrequent engineering changes


  • 25. 
    58) Which of the following is not a concern of suppliers as they prepare to enter into JIT partnerships?
    • A. 

      A) Suppliers feel that they would be less at risk if they contracted with more than one customer.

    • B. 

      B) Suppliers are concerned that customers will present frequent engineering changes with inadequate lead time to deal with them.

    • C. 

      C) Suppliers feel that their processes are suited for larger lot sizes than the customer wants.

    • D. 

      D) Suppliers are concerned that frequent delivery of small quantities is economically prohibitive.

    • E. 

      E) All of the above represent JIT supplier concerns.


  • 26. 
    59) Just-in-time systems make demands on layouts, including
    • A. 

      A) distance reduction

    • B. 

      B) increased flexibility

    • C. 

      C) reduced space and inventory

    • D. 

      D) cross-trained, flexible employees

    • E. 

      E) All of the above are JIT influences on layout.


  • 27. 
    60) Which one of the following is not a layout tactic in a JIT environment?
    • A. 

      A) work cells for families of products

    • B. 

      B) fixed equipment

    • C. 

      C) minimizing distance

    • D. 

      D) little space for inventory

    • E. 

      E) poka-yoke devices


  • 28. 
    61) Which of the following is the author of the phrase "Inventory is evil"?
    • A. 

      A) Poka Yoke

    • B. 

      B) Pat "Keiretsu" Morita

    • C. 

      C) Kanban Polka

    • D. 

      D) Shigeo Shingo

    • E. 

      E) none of the above


  • 29. 
    62) Which one of the following statements is true regarding JIT inventory?
    • A. 

      A) It exists just in case something goes wrong.

    • B. 

      B) It is the minimum inventory necessary to keep a perfect system running.

    • C. 

      C) It hides variability.

    • D. 

      D) It is minimized with large lot production.

    • E. 

      E) It increases if setup costs decrease.


  • 30. 
    63) A firm wants to develop a level material use schedule based on the following data. What should be the setup cost?
    • A. 

      A) $0.45

    • B. 

      B) $4.50

    • C. 

      C) $45

    • D. 

      D) $450

    • E. 

      E) $500


  • 31. 
    64) A product has annual demand of 100,000 units. The plant manager wants production to follow a four-hour cycle. Based on the following data, what setup cost will enable the desired production cycle? d=400 per day (250 days per year), p=4000 units per day, H=$40 per unit per year, and Q=200 (demand for four hours, half a day).
    • A. 

      A) $2.00

    • B. 

      B) $7.20

    • C. 

      C) $18.00

    • D. 

      D) $64.00

    • E. 

      E) $1,036.80


  • 32. 
    65) Which of the following is true regarding the steps to reducing setup times?
    • A. 

      A) The first step involves performing as much setup preparation as possible while the process/machine is operating.

    • B. 

      B) The cycle of steps is repeated until setup time is reduced to under a minute.

    • C. 

      C) Standardize tooling and standardize training are included in the same step.

    • D. 

      D) Improved material handling and move material closer are done before operator training.

    • E. 

      E) All of the above are true.


  • 33. 
    66) Factory X is trying to use level use scheduling. If their first target were to cut the current lot size in half, by what proportion must setup cost change?
    • A. 

      A) Setup cost must be cut to one fourth its current value.

    • B. 

      B) Setup cost must also be cut in half from its current value.

    • C. 

      C) Setup cost must double from its current value.

    • D. 

      D) cannot be determined

    • E. 

      E) none of the above


  • 34. 
    67) The technique known as level schedules
    • A. 

      A) requires that schedules be met without variation

    • B. 

      B) processes many small batches rather than one large one

    • C. 

      C) is known as "jelly bean" scheduling

    • D. 

      D) is based on meeting one day's demand with that day's production

    • E. 

      E) All of the above are true regarding level scheduling.


  • 35. 
    68) Which one of the following statements is true about the kanban system?
    • A. 

      A) The quantities in the containers are usually large to reduce setup costs.

    • B. 

      B) It is associated with a push system.

    • C. 

      C) It is useful to smooth operations when numerous quality problems occur.

    • D. 

      D) The supplier workstation signals the customer workstation as soon as a batch is completed.

    • E. 

      E) The customer workstation signals to the supplier workstation when production is needed.


  • 36. 
    69) Kanban is associated with all of the following except
    • A. 

      A) small lot sizes

    • B. 

      B) signals, such as cards, lights, or flags

    • C. 

      C) moving inventory only as needed

    • D. 

      D) increased material handling

    • E. 

      E) reductions in inventory


  • 37. 
    70) The word "kanban" means
    • A. 

      A) low inventory

    • B. 

      B) employee empowerment

    • C. 

      C) card

    • D. 

      D) continuous improvement

    • E. 

      E) lot size of one


  • 38. 
    71) Which one of the following scenarios represents the use of a kanban to reduce inventories?
    • A. 

      A) A supervisor tells the operators to stay busy and start producing parts for next month.

    • B. 

      B) A "supplier" work center signals the downstream workstation that a batch has been completed.

    • C. 

      C) A supervisor signals to several work centers that the production rate should be changed.

    • D. 

      D) A "customer" work center signals to the "supplier" workstation that more parts are needed.

    • E. 

      E) An operator asks the next station's operator to help him fix his machine.


  • 39. 
    72) If a casual-dining restaurant is attempting to practice JIT and lean operations, which of the following would not be present?
    • A. 

      A) close relationship with the restaurant's suppliers of food, utensils, and equipment

    • B. 

      B) food preparation in large batches

    • C. 

      C) a kitchen set up to minimize wasteful movements

    • D. 

      D) lean inventories of food

    • E. 

      E) All of the above should be present.


  • 40. 
    73) The number of kanbans is
    • A. 

      A) one

    • B. 

      B) the ratio of the reorder point to container size

    • C. 

      C) the same as EOQ

    • D. 

      D) one full day's production

    • E. 

      E) none of the above


  • 41. 
    74) Lead time for cakes is 2 days with daily demand of 10 cakes and a safety stock of ½ a day.  Each container (kanban) holds 1 cake.  What is the correct number of kanbans?
    • A. 

      A) not enough information

    • B. 

      B) 1

    • C. 

      C) 5

    • D. 

      D) 10

    • E. 

      E) 25


  • 42. 
    75) The cook in a fast-food restaurant knows that 2 hamburger patties and an order of fries should be started for each car that is waiting in line.  This is best an example of
    • A. 

      A) Lead time

    • B. 

      B) Kanban

    • C. 

      C) JIT

    • D. 

      D) Kaizen

    • E. 

      E) EOQ


  • 43. 
    76) Lead time for computers is 7 days with daily demand of 5 computers and a safety stock of 1 day.  Each kanban holds 8 computers.  What is the correct number of kanbans?
    • A. 

      A) not enough information

    • B. 

      B) 1

    • C. 

      C) 5

    • D. 

      D) 7

    • E. 

      E) 8


  • 44. 
    77) Lead time for computers is 5 days with daily demand of 25 and safety stock of 5 computers.  If management wants to use 10 kanbans how many computers should each one hold?
    • A. 

      A) not enough information

    • B. 

      B) 1

    • C. 

      C) 5

    • D. 

      D) 10

    • E. 

      E) 13


  • 45. 
    78) A grocery store is attempting to implement a kanban system.  Which of the following would not be an application of kanbans?
    • A. 

      A) An empty doughnut tray signaling the bakery to produce 2 dozen glazed doughnuts.

    • B. 

      B) A line of 5 people in the Chinese department signaling the department to heat 5 Crab Rangoon.

    • C. 

      C) A red light on top of the cashier's lane signals that the cashier needs additional change replenished.

    • D. 

      D) The meat department stocking up on turkeys before Thanksgiving.

    • E. 

      E) All of the above are kanban applications.


  • 46. 
    79) Which of the following is false regarding the links between JIT and quality?
    • A. 

      A) Inventory hides bad quality; JIT immediately exposes it.

    • B. 

      B) JIT reduces the number of potential sources of error by shrinking queues and lead times.

    • C. 

      C) As quality improves, fewer inventory buffers are needed; in turn, JIT performs better.

    • D. 

      D) If consistent quality exists, JIT allows firms to reduce all costs associated with inventory.

    • E. 

      E) All of the above are true.


  • 47. 
    80) JIT makes quality cheaper because
    • A. 

      A) the cost of low quality can be hidden as inventory cost

    • B. 

      B) JIT spots defects early

    • C. 

      C) JIT prevents long runs of defects

    • D. 

      D) B and C

    • E. 

      E) A, B and C


  • 48. 
    81) Which of the following is an illustration of employee empowerment?
    • A. 

      A) UPS drivers are trained to perform several motions smoothly and efficiently.

    • B. 

      B) Unionization of the work place brings better morale and therefore better quality.

    • C. 

      C) "No one knows the job better than those who do it."

    • D. 

      D) all of the above

    • E. 

      E) none of the above


  • 49. 
    82) Which of the following is not characteristic of a TPS employee?
    • A. 

      A) knowledgeable

    • B. 

      B) strict job classifications

    • C. 

      C) know more about their job than anyone else

    • D. 

      D) empowered

    • E. 

      E) All of the above characterize a TPS employee.


  • 50. 
    33) What does TPS stand for?
    • A. 

      A) Total Production Streamlining

    • B. 

      B) Toyota Production System

    • C. 

      C) Taguchi's Production S's

    • D. 

      D) Total Process Simplification

    • E. 

      E) None of the above


  • 51. 
    83) Which of the following is not an attribute of lean operations?
    • A. 

      A) eliminating almost all inventory through just-in-time techniques

    • B. 

      B) minimizing space requirements by reducing the distance a part travels

    • C. 

      C) pushing responsibility to the highest level possible through centralized decision making

    • D. 

      D) educating suppliers to accept responsibility for helping meet customer needs

    • E. 

      E) All of the above are attributes of lean operations.


  • 52. 
    84) Lean operations are known for their
    • A. 

      A) employee development

    • B. 

      B) supplier education

    • C. 

      C) supplier partnerships

    • D. 

      D) challenging jobs

    • E. 

      E) All of the above are attributes of lean operations.


  • 53. 
    85) Which of the following is characteristic of lean operations?
    • A. 

      A) long lead times

    • B. 

      B) easy, mindless jobs

    • C. 

      C) specialty workers with no cross-training

    • D. 

      D) low space requirements

    • E. 

      E) no supplier partnerships


  • 54. 
    86) In the quest for competitive advantage, which of the following is a JIT requirement?
    • A. 

      A) small number of job classifications

    • B. 

      B) reduced number of vendors

    • C. 

      C) reduced space for inventory

    • D. 

      D) quality by suppliers

    • E. 

      Above


  • 55. 
    87) Which one of the following does not exemplify JIT used for competitive advantage?
    • A. 

      A) Acme Foods decides to decrease the number of its suppliers to just a few.

    • B. 

      B) Ajax, Inc. is proud to announce that incoming goods are delivered directly to the point of use.

    • C. 

      C) Ardoyne Builders has a scheduled preventive maintenance program.

    • D. 

      D) Cheramie Trucking trains workers to specialize and become very efficient in one job.

    • E. 

      E) Cajun Contractors has reduced the amount of space for inventory.


  • 56. 
    88) Which one of the following is not a requirement of JIT systems?
    • A. 

      A) quality deliveries on time

    • B. 

      B) low setup time

    • C. 

      C) training support

    • D. 

      D) strong job specialization

    • E. 

      E) employee empowerment


  • 57. 
    89) Great Lakes Barge and Baggage Company makes, among other things, battery-operated bilge pumps. Which of the following activities is not part of JIT? They
    • A. 

      A) communicate their schedules to suppliers

    • B. 

      B) produce in long production runs to reduce the impact of setup costs

    • C. 

      C) use a pull system to move inventory

    • D. 

      D) continuously work on reducing setup time

    • E. 

      E) produce in small lots


  • 58. 
    90) Which one of the following is an example of JIT being used for competitive advantage?
    • A. 

      A) Jones Company has decreased the number of job classifications to just a few.

    • B. 

      B) Lafourche Metals increases the number of its suppliers to be less dependent on just a few.

    • C. 

      C) Houma Fabricators is proud to announce that incoming goods are inspected.

    • D. 

      D) Acme Company tells its maintenance department to intervene only if a machine breaks down.

    • E. 

      E) Caro Specialty Metals, Inc. has built a new, huge warehouse to store inventory.


  • 59. 
    91) A manufacturer took the following actions to reduce inventory. Which of these is generally not accepted as a JIT action?
    • A. 

      A) It used a pull system to move inventory.

    • B. 

      B) It produced in ever smaller lots.

    • C. 

      C) It required deliveries directly to the point of use.

    • D. 

      D) It picked the supplier that offered the lowest price based on quantity discounts.

    • E. 

      E) It worked to reduce the company's in-transit inventory.


  • 60. 
    92) Excess bags of basic commodities such as flour and sugar from a lack of supplier-restaurant JIT partnership represents which of the following wastes?
    • A. 

      A) overproduction

    • B. 

      B) queues

    • C. 

      C) transportation

    • D. 

      D) inventory

    • E. 

      E) defective product


  • 61. 
    93) Which of the following statements regarding JIT in services is true?
    • A. 

      A) Restaurants do not use JIT layouts because they interfere with creation of a good servicescape.

    • B. 

      B) Excess customer demand in services such as air travel is met by dipping into safety stocks.

    • C. 

      C) All of the JIT techniques for dealing with suppliers, layout, inventory, and scheduling are used in services.

    • D. 

      D) Scheduling is not relevant to effective use of JIT in services.

    • E. 

      E) All of the above are false.


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