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Home » Finance » Page 1797

Finance

Q: External setups refer to actions that require stopping the production process.

Q: Which of the following describes a kaizen event? A. A work stoppage due to a quality problem, either internal or external (supplier quality). B. Any time when supply is clearly mismatched with customer demand, creating shortages or inventory build-up. C. A short-term team project focused on finding opportunities for continuous improvement. D. None of the above.

Q: Which of the following would NOT be an example of waste in a retail grocery store? A. Produce found past its sell-by date. B. Customers not able to find the product they seek. C. Checkout clerk unable to accurately scan a package bar code. D. All are examples of waste.

Q: If market demand is 2,000 units of a product per day and there are 14 hours of production time available each day across two shifts, how many units need to be produced per minute to match market demand? A. Approximately 0.42 units B. Approximately 2.4 units C. Approximately 4.2 units D. None of the above

Q: A monthly production schedule calls for 20,000 units of product A, 10,000 units of product B, and 5,000 units of product C. If there are 20 days of production available each month, what is the appropriate uniform load per day? A. 20,000 units of A; 10,000 B; 5,000 C. B. 1,750 units each of A, B, and C. C. 1,000 units of A; 500 B; 250 C. D. There is not enough information given to calculate the answer.

Q: Which of the following best represents the idea behind the 5 Why technique? A. A tool for systematically investigating the cause-and-effect relationships underlying a problem. B. A tool for exploring the five categories of workspace organization to improve morale, safety, and process efficiency. C. A technique for determining the appropriate placement of inventory to support a lean system. D. None of the above.

Q: Under a lean thinking philosophy, which of the following would LEAST likely be considered waste? A. Effort spent sorting defective parts out of a supplier delivery. B. Customers waiting to be served. C. Stopping the production line due to a quality problem. D. Producing a small percentage extra to protect against unexpected problems.

Q: The effect of a lean system on employees can best be described as A. lean engages employees in problem-solving activities. B. lean promotes worker specialization and increases economies of scale. C. lean reduces the need for continuous investment in new skill development. D. lean supports pay systems based on seniority.

Q: In lean thinking, inventory hides a variety of forms of waste. Which of the following is NOT an example of waste hidden by inventory? A. Inferior product quality. B. Unreliable production machinery. C. Long, but certain, delivery lead times. D. Unreliable suppliers.

Q: In a lean system, work-in-process inventory is A. increased to prevent work stoppages due to production problems and smooth overall production. B. ignored because it has little effect on the availability of finished goods inventory. C. reduced to reveal production problems, which can then be addressed. D. eliminated entirely.

Q: Supplier relationships in a lean system are usually developed as an integrated supplier program that includes A. increasing lot sizes to take advantage of volume pricing. B. treating suppliers the same way the company treats internal operations. C. chosen suppliers being provided with shipment dates well in advance. D. none of the above.

Q: Which of the following is NOT an approach recommended for facilitating implementation of lean? A. Construct a value stream map of every process step and the associated time or value that is added. B. Establish a team of employees that will work on process improvement. C. Only the employee team can specify what is valued in the product or service. D. Implement the changes to achieve lasting improvement, then repeat the cycle.

Q: Which of the following is NOT a change associated with a lean production system? A. Reduced inventory storage space is needed. B. Reduced automation as lot size approaches one unit. C. Workers take responsibility for most maintenance of the equipment they use. D. Routine preventive maintenance time is provided between shifts.

Q: A work center uses kanban containers that hold 200 parts. To produce enough parts to fill a container, 60 minutes of setup plus run time are needed. Moving the container to the next workstation, waiting time, processing time at the next work station, and return of the empty container take 120 minutes. There is an overall demand rate of 10 units per minute. Calculate the number of containers needed for this process. A. 6 B. 7 C. 8 D. 9

Q: Which of the following is true about kanban systems? A. The purpose is to ensure parts are produced JIT to support subsequent processes. B. Some companies control the movement of the containers by using two types of kanban cards: production cards and withdrawal cards. C. Kanban cards take the place of shop paperwork used in traditional mass production. D. All of the above.

Q: Which of the following is true for takt time in a lean system? A. Takt time should be set at greater than the average demand of the market. B. Takt time is the period of time available for production. C. Takt time is used to match supply and demand. D. Takt is the Japanese word for time.

Q: __________ is(are) the direct observation of work, conducted so that work practices can be improved. A. 5 Whys B. 5S C. Gemba D. Value stream mapping

Q: Which of the following statements regarding lean systems is FALSE? A. Lean systems are a push type of production planning system. B. Lean systems emphasize reduction in setup (changeover) time. C. Lean systems emphasize reduction in inventory levels. D. Lean systems utilize kanbans to signal the need for production.

Q: Which of the following is NOT a lean tenet? A. Specify what about a product or service creates value from the customers perspective. B. Identify, study, and improve the value stream of the process for each product and service. C. Improve value to customer by producing goods well in advance of demand. D. Strive for perfection.

Q: The seven forms of waste include all of the following EXCEPT A. overproduction. B. waiting time. C. inventory. D. bottleneck.

Q: Which of the following statements regarding lean systems is FALSE? A. Lean is a philosophy that emphasizes continuous improvement. B. Lean is an approach that seeks to provide exactly what the customer requires and no more. C. Lean is not applicable to low-volume manufacturing operations. D. In a lean system, waste is any activity that does not add value.

Q: The basic foundation of the Toyota production system and just-in-time manufacturing includes all of the following elements EXCEPT A. simple but high-quality processes. B. lower inventory levels. C. smaller batches. D. longer product development times.

Q: External setup time refers to A.the time it takes workers to set up a machine during scheduled maintenance. B.the time to complete setup activities that do not require that the machine be stopped. C.the time it takes equipment vendors to set up the machine. D.none of the above.

Q: Reduction of setup time is accomplished by A.reducing inventory. B.implementing a kanban system. C.converting internal setup time to external setup time. D.all of the above.

Q: Why is a uniform load desirable in a lean system? A.To balance the workload on all work centers. B.To allow for production of safety stock. C.To signal the need for more parts. D.To increase the time for scheduled maintenance.

Q: One of the main objectives of a lean system is A.striving for "good enough." B.reduction of takt time. C.reduction of waste. D. define value from the manufacturers perspective.

Q: Supplier management in a lean system A.may require co-location of supplier goods close to plants that receive delivery. B.means an increase in the number of suppliers for each component. C.generally involves short-term relationships with the buyer. D. usually requires additional paperwork, as compared with a non-lean system.

Q: Managing quality in a lean system A.is easy. B.means that product and service defects are never defined as waste. C.is done by suppliers. D.requires continuously exposing and correcting quality problems.

Q: If it takes 100 minutes to complete a circuit, demand at the next work center is 5 parts per minute, and a kanban container holds 20 parts, how many containers are required? A.25 B.5 C.40 D.20

Q: The time it takes a container to complete an entire circuit consists of A.move time, time used, and wait time. B.wait time, run time, setup time, and idle time. C.fill time, wait time, move time, time used, and time to be returned to be filled again. D.none of the above.

Q: The ideal lot size for a lean system is A.infinite. B.one. C.the capacity of the machine. D.variable according to the production requirements. E.none of the above.

Q: The ideal setup time for a lean system is A.5 minutes. B.the time it takes the line to get ready. C.0 minutes. D.1 hour.

Q: If a work center has no empty kanban containers, the workers at the work center should do which of the following? A.Continue to produce as much inventory as they can. B.Produce enough inventory to meet the following day's demand. C.Produce enough inventory to satisfy the master production schedule. D.Stop production.

Q: Which of the following is NOT generally an element of a lean system? A.Flexible workforce B.MRP push system C.Stable master schedule D.Kanban pull system

Q: Reducing setup time is important because it A.increases available capacity. B.increases flexibility to meet schedule changes. C.reduces inventory. D.all of the above.

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

Q: For production control, lean pull systems are best suited for A.repetitive manufacturing. B.job shop production. C.semirepetitive batch manufacturing. D.unpredictable demand.

Q: Lean emphasizes all of the following EXCEPT A.setup time reductions. B.cross training of workers. C.lot size reduction. D.increased utilization of machines.

Q: A kanban card is used to signal that A.the next work center is stopped. B.a materials handler has run out of parts. C.a machine has broken down. D.parts are needed by the subsequent work center. E.a machine is ready for preventive maintenance.

Q: Which of the following is NOT an element of lean? A.Small lot sizes B.Modularized master schedule C.Multifunction workers D.Kanban pull system E.Perfect or nearly perfect quality

Q: Lean thinking can be applied to A.manufacturing. B.services. C.functions other than operations. D. all of the above.

Q: It takes 1 minute to remove a burger from the cooler. The burger is cooked for 2 minutes and requires constant monitoring (the worker cannot do something else during cooking). Cooked burgers are assembled into sandwiches with buns, lettuce, and tomato slices. This step takes 45 seconds per sandwich. Finally, packaging the sandwich takes about 10 seconds. What is the bottleneck in the process? Why?

Q: A store open 24 hours per day is interested in determining store traffic. It found that customers arrive uniformly at the rate of 10 customers per hour. The store has a single worker to process customers. The worker takes an average of 5 minutes to process a customer. If we assume that every customer must be processed, what is the average number of customers in the store?

Q: Changing the information gathered and used for managerial control of a process is a common result of process flowcharting.

Q: Handoff points in cross-functional flowcharts are of particular importance to process analysis.

Q: A flowchart for high-contact services such as estate planning often reflects the customers perspective of the process.

Q: Flowcharting requires Microsoft Visio or similar flowcharting software.

Q: In process flowcharting it is most important to depict the process as it is supposed to work or as it was originally designed to work.

Q: Process redesign tends to be cross-functional in nature and requires a complete overhaul of work methods, flows, and information systems.

Q: A line of visibility separates the parts of a service that come in direct contact with customers from those that do not.

Q: A process will generally have at least one bottleneck.

Q: If there are multiple resources that process each transaction, then the process capacity is the sum of all the individual capacities of the resources.

Q: A process view emphasizes that it is important for a business to function as independent silos.

Q: Which of the following statements is NOT true of process flowcharting? A. The visual nature of flowcharting is invaluable to understanding what happens in a process. B. The systems flowchart is the most common form of flowchart. C. All flowcharts must be cross-functional. D. All of the above are true.

Q: Fit the following question to the correct category: Are all operational steps or activities necessary? A. Flow B. Quantity C. Quality D. None of the above

Q: Which of the following is NOT a recommended process flow question category? A. Time B. Quantity C. Cost D. Function

Q: Which of the following statements regarding business process reengineering is NOT correct? A. Placing decision authority at the lowest level possible tends to reduce bureaucracy. B. Ideally, only steps that add value to the customer are kept in the redesigned process. C. Most reengineering is done without the need to invest in new technologies. D. Reengineering is appropriate when processes simply cannot be improved in small steps.

Q: The operations manager for Dogs R Us is trying to understand the bottleneck in the dog grooming process. Times below are given in minutes per dog, and when there are two or more employees they can process two or more dogs simultaneously. Process step Time Who Verify customer information 5 min./dog Front desk (staffed by 2 employees) Crate the dog 2 Front desk Wash and dry the dog 20 Washers (3 employees) Nails and teeth 13 Nail/teeth specialists (2 employees) Grooming 25 Groomers (4 employees) Call customer for pick-up 5 Front desk Assuming that demand and supply exceed capacity, what is the maximum flow rate (in dogs per hour) for this process? A. 9.2 B. 9.6 C. 10.0 D. None of the above

Q: Which of the following statements is NOT correct? A. Littles Law is very powerful and widely used in business. B. Littles Law applies to service processes and manufacturing processes. C. Littles Law assumes that arrival rates and throughput times are constantly changing. D. All of the above are incorrect statements.

Q: A machine center can produce 175 units per day at 100% utilization. Demand is 75 units per day, and suppliers are capable of delivering raw materials to support production of 125 units per day. If demand doubles, the flow rate will be A. 100 units. B. 125 units. C. 150 units. D. 175 units.

Q: Consider the following two statements concerning business process reengineering (BPR): (1) BPR results are greatest when each function redesigns its own core processes. (2) BPR efforts should be focused on the critical processes required to meet customers needs. A. Only statement (1 ) is correct. B. Only statement (2) is correct. C. Both statements are correct. D. Both statements are incorrect.

Q: Which of the following statements is/are correct? (1) It is important for flowchart analysis to have a specific improvement goal in mind (e.g., reduce throughput time). (2) It is important for flowchart analysis to only use the common flowchart symbols when creating the flowchart to avoid any confusion. A. Only statement (1) is correct. B. Only statement (2) is correct. C. Both statements are correct. D. Both statements are incorrect.

Q: Flow rate is A. the same as process capacity. B. measured in units per day. C. useful for manufacturing but not service delivery processes. D. the least of either supply, demand, or capacity.

Q: A bottleneck is A. a resource that has the smallest capacity. B. a resource that can affect the flow rate of a production process. C. a resource that can determine the capacity of the entire process. D. all of the above.

Q: Capacity is A. the average rate of output of a process. B. the maximum rate of output of a process. C. the difference between the maximum and minimum rates of output of a process. D. the ratio between output and input.

Q: Throughput time is A. the same as the bottleneck. B. the maximum capacity minus the minimum capacity of a process. C. the time from when processing begins until a product or service is complete. D. applicable to customers served in a service process, but not product manufacturing.

Q: A bank has an average of 10 customers per hour arriving into the system, and it takes an average of 30 minutes for the clerk to complete a transaction with a customer. What is the average length of the queue in the bank? A. 20 customers B. 5 customers C. 3 customers D. None of the above

Q: Littles Law, in a manufacturing process, relates to A. average throughput time, average inventory, and efficiency of a process. B. average inventory, average queue length, and average flow rate of a process. C. average inventory, average throughput time, and average flow rate of a process. D. average flow rate, average inventory, and average utilization of a process.

Q: Symbols used within a typical flowchart include all of the following EXCEPT A. a trapezoid, representing a work queue. B. an oval, representing the start or end of a process. C. an arrow, representing the flow of the work. D. a rectangle, representing a work activity.

Q: In a process thinking philosophy, it is important to A. view the functional disciplines in isolation of one another so that problems can be easily identified. B. understand that the value of the individual parts is greater in sum than the value of the system itself. C. view the functional disciplines as a collection of business processes emphasizing the cross-functional nature of decision making. D. understand that optimization in decision making can only occur by disaggregating large-scale process problems into small problems more easily quantified and solved.

Q: Elements of a system include all of the following EXCEPT A. outputs. B. suppliers. C. customers. D. specifications.

Q: A service blueprint is used to analyze and manage the service process because it involves A.the identification of flows, bottlenecks, and customer interaction points. B.the design of the services advertising campaign. C.the identification of the consumer benefit concept. D.all of the above.

Q: A service blueprint A.shows all points of interaction between the customer and the service providers. B.contains a "line of visibility." C.includes front-office and back-office process flows. D.has all of the above features.

Q: Which of the following statements regarding business process reengineering (BPR) is NOT true? A.BPR is a term coined by Hammer and Champy in the book called "Reengineering the Corporation." B.BPR refers to extensive process redesign. C.BPR simplifies processes and eliminates the non-value added elements from the process. D.BPR is synonymous to the total quality management approach of process improvement.

Q: 16.Process elements that might be changed when improving a process include A.job design. B.product or service design. C.equipment or tools. D.all of the above.

Q: Which of the following is NOT a prerequisite to process flowcharting? A.Identifying system boundaries .Identifying the relevant industry best practice C.Identifying sequential flows D.Identifying suppliers

Q: The capacity of a process is determined by .the bottleneck. B.the maximum of the required capacity resources. C.throughput time. D.none of the above.

Q: Analysis of the flow of information A.is necessary only if management wants tight control of the system. B.is more important than materials flow. C.should always accompany an analysis of materials flow. D.is of concern only to service industries.

Q: What does a square or rectangle symbol indicate in a flowchart? .Operation B.Inspection C.Storage D.Delay

Q: A diamond symbol in a flowchart indicates A.evaluation with more than one possible outcome. B.decision. .both (a) and (b). D.neither (a) nor (b).

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