Q&A Hero

Q: One of the major reasons for a company to adopt third-party logistics is to concentrate on one's core business.

Q: Traffic management refers to truck movement within our parking areas.

Q: The design of the supply chain and establishing partnerships with vendors and distributors are examples of operational issues in a supply chain.

Q: The need for supply chain management increases as globalization increases.

Q: The goal of supply chain management is to synchronize supply and demand of all of the organizations that are part of the chain.

Q: Managing supply chain visibility involves making sure that potential supply chain partners are aware of your organization's needs.

Q: The materials in the supply chain flow toward the end of the chain, while the information and the dollars move toward the beginning of the chain.

Q: Frequent deliveries of small shipments can reduce inventory but also result in an increase in the transportation cost per unit.

Q: Every business organization is part of at least one supply chain.

Q: Using third-party logistics involves using your organization's logistics function to ship to customers that are not officially part of the supply chain.

Q: In purchasing, one's only ethical obligation is to one's suppliers.

Q: In supply chain organizations, functions must operate independently of each other.

Q: A company's supply chain involves the flow of materials and information from suppliers, through production, to the end users.

Q: Engineering changes should not be made in the six-month period following the introduction of a new product.

Q: Limited WIP lowers inventory carrying costs but reduces flexibility.

Q: In a pull system, a quantity of inventory in front of a workstation indicates problems at that workstation.

Q: In lean operations, when work is completed at one work center, it is important to immediately move the completed work to the next work center to minimize idle time.

Q: In lean operations, a responsibility of the cross-trained worker is to check the quality of the work of others.

Q: A fundamental tenet of the lean philosophy is that workers are paid based on seniority.

Q: Preventive maintenance will eliminate the need to carry supplies of spare parts.

Q: The lean philosophy recognizes that some work-in-process inventories are a necessary investment to allow for smooth work flow.

Q: A real advantage of the lean philosophy is the reduction of coordination effort required.

Q: One problem with lean operations is that they can lead to much frustration and disappointment of people on the shop floor due to the need for continuously monitoring and expediting resource availability.

Q: In the lean approach, inventories are reduced gradually, instead of eliminating inventories as rapidly as possible.

Q: Preventive maintenance is additional maintenance done immediately after a breakdown has occurred to help prevent any further breakdowns.

Q: "Autonomation" indicates that the firm is attempting to reduce its dependence on automated equipment.

Q: The goal of lean operations is to produce output using fewer resources than traditional planning systems.

Q: Lean systems often use layouts that are based on group technology product requirements.

Q: Setup time and its associated cost can often be reduced by the use of group technology.

Q: In the lean philosophy, the larger the lot size, the easier it is to schedule.

Q: A benefit of small lot sizes in lean systems is that each product is produced less frequently.

Q: A basic requirement for operating with low inventories in lean systems is that major system problems must already have been solved and new problems will be solved as they appear.

Q: The use of small lot sizes in lean operations is in conflict with the EOQ approach since setup costs tend to be significantly higher than holding costs.

Q: The small lot-sizing policy works well in a situation where both holding costs and setup costs are high.

Q: Quality and highly capable production systems are requirements for the successful implementation of lean operations.

Q: If a firm's product mix is 60 percent of product A and 20 percent each of products B and C, an optimal mix-model production schedule would be successive sequences of AAABC.

Q: Value stream mapping is a technique focused on finding new ways of adding value for critical stakeholders such as customers.

Q: Fast and simple are two common threads that run through the four building blocks of lean operations.

Q: The four building blocks of lean operations are: product design, process design, personnel/organizational elements, and manufacturing planning and control.

Q: In the lean philosophy, producing more than two order quantities represents waste.

Q: Lean operations cannot easily handle changes of output or product mix.

Q: Although inventories are maintained, the goal of lean operations is to minimize safety stock.

Q: The ultimate goal of lean operations is a system characterized by the smooth, rapid flow of materials.

Q: In a lean environment, anything not essential to the product or process is viewed as waste.

Q: A functioning MRP system is required prior to adopting lean planning and control systems.

Q: In lean operations, input resources arrive for processing only after the preceding batch has been completed.

Q: A production cell uses 240 pounds of plastic resin each eight-hour day. Resin is transported in drums that hold 100 pounds each. The material is obtained from a nearby supplier, and has a 12-hour cycle time. An efficiency factor of .15 has been assigned to this cell. What is the optimum number of containers to support this operation?

Q: A production system uses kanban cards to control production and movement of parts. One work center uses an average of 40 pieces per hour of a certain part. Standard containers hold 10 parts. The cycle time for parts containers is about 36 minutes. Management has assigned an efficiency factor of .20 to this work center. How many containers should be used to support this operation?

Q: The Four Star Publishing Company uses 60 reams of paper each hour at one of its high-speed printing stations. The cycle time for a standard container, which holds 15 reams of paper, averages 40 minutes. If management has decided to use three containers, what efficiency factor was applied?

Q: The All Seasonings Company uses 3,200 glass jars at one of its jar-filling workstations each eight hours of production. The cycle time for a standard container, which holds 90 jars, averages 45 minutes. If management uses an efficiency factor of 20 percent, how many containers should be used?

Q: Previously, management calculated the number of kanban cards allowed by using a value of 1.3 for X. Assuming nothing else (e.g., usage rates, container capacities, etc.), which of the following values for X would indicate management's belief that the system has become more efficient? A. 2.6 B. 2.3 C. 1.5 D. 1.4 E. 1.2

Q: Having a vendor be responsible for managing the restocking of inventory is what is meant by the term: A. JIT II. B. MRP II. C. SCM I. D. EOQ III. E. POQ II.

Q: Which of the following would not contribute to the leaning of services? A. Improve the reliability of vendors. B. Increase the flexibility of the service system. C. Have service workers handle multiple tasks. D. Standardize the service output. E. Improve the service process.

Q: When lean is used in the context of services, which of the following is most often the focus? A. the labor content of the service B. the time needed to perform a service C. the inventory tied up in the service D. the equipment used in the service E. suppliers of inputs to the service

Q: The ultimate objective in a lean system is: A. low to moderate levels of inventory. B. high quality, zero defects. C. minimal waste (less than 6 percent). D. balanced and rapid flow. E. all of these.

Q: A common objective of both MRP and the lean philosophy is to: A. smooth production. B. minimize inventory. C. obtain high quality. D. reduce overhead. E. eliminate inventory.

Q: With regard to suppliers, lean systems typically involve: A. delivery of large lots on short notice B. the highest quality at the lowest price C. long-term relationships D. multiple suppliers to assure continuous availability E. dedicated staging areas for material

Q: An operations strategy reflecting the lean philosophy of production should recognize that lean: A. is most suited for nonrepetitive manufacturing. B. cannot be implemented sequentially. C. requires a wholesale commitment from the outset. D. may provide a competitive advantage. E. all of the choices.

Q: Which of the following contributes to the competitive advantage enjoyed by firms using lean production? A. backup employees to cover for absenteeism B. one hundred percent inspection to remove defects C. dedicated equipment to reduce unit costs D. safety stocks to prevent stockouts E. greater flexibility to cope with change

Q: A system of lights used at each workstation to signal problems or slowdowns is: A. a command and control center. B. automation. C. andon. D. a pull system. E. kanban.

Q: A potential obstacle to conversion to a lean system is: A. lack of management commitment. B. lack of worker cooperation. C. supplier resistance. D. all of the choices. E. insufficient space to store the increased inventories.

Q: A successful conversion to a lean system requires that the conversion: A. be done as quickly as possible. B. begin at the start of the process and work forward. C. convert vendors to lean as one of the last steps. D. reduce setup times as one of the last steps. E. all of the choices.

Q: Which of the following questions is not answered by value stream mapping? A. Where does waste occur? B. Which processes or subprocesses exhibit the most variability? C. Where are the best opportunities to extract more value from customers? D. Where are process bottlenecks? E. Where do errors occur?

Q: Process design that supports lean does not include: A. production flexibility. B. duplicate facilities. C. setup time reduction. D. minimal inventory storage. E. small lot sizes.

Q: The activity controlled in the same way by both kanban and MRP is the determination of: A. rates of output. B. products to be built. C. materials required. D. capacity required. E. feedback information.

Q: Which of the following is characteristic of the lean philosophy? A. Inventories are an asset. B. Lot sizes are optimized by formula. C. Vendors are coworkers, essentially other departments of our organization. D. Queues are a necessary investment. E. All of the choices.

Q: With regard to suppliers, lean systems typically require: A. delivery of large lots at regular intervals. B. buyer inspection of goods and materials. C. multiple sources from which to purchase. D. long-term relationships and commitments. E. the lowest price possible.

Q: A production kanban card is used to signal that: A. work is needed at the work center. B. work is ready to be moved to the next station. C. a problem exists. D. a machine has broken down and needs immediate attention. E. a machine is ready for preventive maintenance.

Q: The kaizen philosophy applies to: A. employee development. B. safety stock. C. waste. D. supply chain management. E. MRP III.

Q: The Five S's do not include: A. Sort. B. Straighten. C. Sanitize. D. Sweep. E. Standardize.

Q: Which of the following is not characteristic of preventive maintenance in lean systems? A. maintaining equipment in good operating condition B. replacing parts when they are worn but before they fail C. workers maintaining their own equipment D. eliminating supplies of spare parts to reduce capital investment E. perceiving breakdowns as an opportunity for improvement

Q: A basic requirement for operating with the low inventories present in lean systems is: A. Inventory space must be increased. B. Inventory investment must be increased. C. Major problems must be identified. D. Major problems must have been solved. E. Inventories must be reduced rapidly.

Q: The term that refers to the automatic detection of defects is: A. kaizen. B. kanban. C. autonomation. D. automation. E. 100 percent inspection.

Q: A conveyance __________ signals parts movement. A. request B. routing C. bar code D. kanban E. kazian

Q: Which of the following does not contribute to reduced setup time and cost? A. standardized setup tools B. standardized setup equipment C. custom setup procedures for each product D. use of multipurpose equipment or attachments E. use of group technology

Q: In the lean philosophy, the ideal lot size is: A. the economic order quantity. B. the economic run size. C. one unit. D. the capacity of the standard container. E. N = (DT(1 + X))/C.

Q: Which of the following is not a benefit of small lot sizes in lean systems? A. In-process inventory is considerably less. B. Each product is produced less frequently. C. Carrying costs are reduced. D. There is less clutter in the workplace. E. Inspection and rework costs are less.

Q: The comprehensive approach used in lean systems to deal with quality includes: A. designing quality into products and processes. B. insisting vendors provide high-quality materials. C. making workers responsible for producing high quality. D. designing in quality, insisting on quality materials, and making workers responsible for quality. E. 100 percent inspection of raw materials, work-in-process, and finished goods.

Q: Which of the following would you not expect to see in a lean environment? A. a flexible system B. minimum inventory C. little waste D. reduced setup times E. a significant number of daily schedule changes

Q: Building up an inventory of standard parts or modules instead of immediately producing the finished end items is the essence of: A. delayed differentiation. B. kanban. C. autonomation. D. andon. E. matrix management.