Business Quiz: Organization Management- II

2.

Which of the following will happen if a company standardizes the components that are used in different models?

Waste will be reduced
The number of product options available to the customer will be reduced
General-purpose equipment will be used more frequently in production
Production runs will be reduced

Correct Answer

A. Waste will be reduced

Explanation

If a company standardizes the components used in different models, it means that they will use the same components across all their products. This standardization allows for streamlined production processes and eliminates the need for multiple variations of components. As a result, there will be less waste generated as there will be no excess or unused components. Standardization also improves efficiency and reduces the chances of errors or defects in production, further reducing waste. Therefore, the correct answer is that waste will be reduced.

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3.

Which of the following statements is true regarding JIT?

It is a philosophy that relates to the way in which a manufacturing company organizes and operates its business
It involves getting the goods to the customer as fast as possible at all costs
It is a culturally based method of management
It is concerned with adding cost to the product

Correct Answer

A. It is a philosophy that relates to the way in which a manufacturing company organizes and operates its business

Explanation

JIT, or Just-in-Time, is a philosophy that focuses on optimizing the manufacturing process by eliminating waste, reducing inventory, and improving efficiency. It emphasizes producing goods only when they are needed and in the exact quantity required, thereby minimizing storage and carrying costs. By organizing and operating the business in this way, a manufacturing company can achieve higher productivity, lower costs, and faster response times to customer demands. This approach is not about adding cost to the product, but rather about streamlining operations to deliver value to customers efficiently.

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4.

Which of the following statements is best regarding employee empowerment?

Management is relieve of the responsibility for decisions the company makes
Employees are empowered to set their wage rates and hours of work
Line employees are given more authority to make decisions
Decision-making power is concentrated in a small, upper-level management group

Correct Answer

A. Line employees are given more authority to make decisions

Explanation

Employee empowerment refers to the process of granting employees the authority and autonomy to make decisions and take actions related to their work. By giving line employees more authority to make decisions, organizations are enabling them to contribute their expertise and insights, leading to increased job satisfaction, motivation, and productivity. This approach also promotes a sense of ownership and accountability among employees, as they become more involved in shaping their work and the organization's success.

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5.

Which of the following is an advantage of work cells?

Maximum machine utilization
Simplified production activity control
Larger batches and lower unit costs
Reduced worker skills required

Correct Answer

A. Simplified production activity control

Explanation

An advantage of work cells is simplified production activity control. This means that the production process becomes easier to manage and control, as work cells allow for a more streamlined and efficient workflow. By organizing tasks and resources within a work cell, it becomes easier to monitor and coordinate production activities, leading to improved productivity and reduced complexity in managing the overall production process.

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6.

Which of the following statements is true regarding total productive maintenance?

Skilled mechanics are used to ensure proper setup of every die change
Cleaner-inspectors are used to ensure that every machine is ready for work at all times
Operators report regularly to management of maintenance productivity
Machine operators take responsibility for most of the routine machine maintenance

Correct Answer

A. Machine operators take responsibility for most of the routine machine maintenance

Explanation

Machine operators taking responsibility for most of the routine machine maintenance is true regarding total productive maintenance. Total productive maintenance is a strategy that aims to involve all employees in the maintenance process to improve overall equipment effectiveness. By having machine operators take responsibility for routine maintenance tasks, such as cleaning, lubricating, and minor repairs, it helps to prevent breakdowns, reduce downtime, and improve productivity. Skilled mechanics may still be involved in more complex repairs or setup changes, but the primary responsibility lies with the machine operators.

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7.

Which of the following statements is true regarding JIT and MRP?

With JIT in place, MRP is no longer needed
By increasing the number of levels in the bill of material, MRP becomes just like JIT
MRP is used for planning, while JIT is used to put the plan into effect
JIT is the same as a bucketless MRP system

Correct Answer

A. MRP is used for planning, while JIT is used to put the plan into effect

Explanation

MRP (Material Requirements Planning) and JIT (Just-in-Time) are both inventory management systems used in manufacturing. MRP is used for planning, which involves determining the quantity and timing of materials needed for production. It helps in creating a schedule for purchasing or producing materials based on demand forecasts. On the other hand, JIT is used to put the plan into effect by ensuring that materials and components are delivered to the production line just in time for assembly. JIT focuses on minimizing inventory levels and reducing waste by delivering materials at the exact time they are needed. Therefore, MRP is used for planning, while JIT is used to implement the plan effectively.

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8.

The quantity of a JIT pull signal:

Is always the same as the upstream pull signal
Is always one
Can be any quantity
Often includes a small safety factor

Correct Answer

A. Can be any quantity

Explanation

The quantity of a JIT pull signal can vary depending on the specific needs and circumstances of the production process. It is not always the same as the upstream pull signal or limited to a fixed quantity of one. The flexibility to adjust the quantity allows for better responsiveness to demand fluctuations and ensures that the right amount of materials or products is delivered at the right time. Additionally, including a small safety factor in the JIT pull signal helps to account for unexpected disruptions or variations in demand, ensuring a smooth and efficient production flow.

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9.

Which of the following statements is true regarding the relationship with suppliers in a JIT environment?

All cost reductions will be awarded directly to the buyer
Short-term contracts for multiple small deliveries will be used
Planning becomes more erratic and difficult
The supplier is viewed as an upstream work center

Correct Answer

A. The supplier is viewed as an upstream work center

Explanation

In a JIT (Just-in-Time) environment, the supplier is viewed as an upstream work center. This means that the supplier is considered an integral part of the production process and is seen as a partner rather than just a provider of materials. The supplier's role is to deliver the required materials or components at the right time and in the right quantity to support the production process. This close relationship allows for better coordination and communication between the buyer and the supplier, leading to improved efficiency and reduced waste.

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10.

TQM can reduce batch sizes by:

Reducing lead time
Using statistical analysis and destructive testing
Increasing per-order costs
Lowering fixed costs associated with batch-size calculations

Correct Answer

A. Reducing lead time

Explanation

TQM, or Total Quality Management, can reduce batch sizes by reducing lead time. When the lead time is reduced, it means that the time taken to complete a process or deliver a product is decreased. This allows for smaller batch sizes to be produced or delivered more frequently, resulting in increased efficiency and flexibility. By reducing lead time, TQM helps to streamline operations and minimize waste, ultimately improving overall quality and customer satisfaction.

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Business Quiz: Organization Management- II

Which of the following statements is true?

Quiz Preview

Which of the following will happen if a company standardizes the components that are used in different models?

Which of the following statements is true regarding JIT?

Which of the following statements is best regarding employee empowerment?

Which of the following is an advantage of work cells?

Which of the following statements is true regarding total productive maintenance?

Which of the following statements is true regarding JIT and MRP?

The quantity of a JIT pull signal:

Which of the following statements is true regarding the relationship with suppliers in a JIT environment?

TQM can reduce batch sizes by: