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OM Chapter 14 MCQ - Exam 3

Terms in this set (83)

TRUE or FALSE

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


When the preceding batch has been completed, the workstation authorizes new input resources to arrive.
TRUE or FALSE

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


Lean planning and control can be implemented without the use of MRP.
TRUE or FALSE

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


Eliminating such waste is central to the lean philosophy.
TRUE or FALSE

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


A smooth, rapid material flow is the ideal in a lean environment.
TRUE or FALSE

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


The goal of lean operations is to eliminate safety stock.
TRUE or FALSE

Lean operations are unable to easily handle changes of output or product mix.
FALSE.


Volume or product mix changes can easily undermine a system being operated according to lean principles.
TRUE or FALSE

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


Producing one order quantity in advance of demand represents waste.
TRUE or FALSE

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


These are the building blocks of lean operations.
TRUE or FALSE

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


Streamlined and error-proof are lean ideals.
TRUE or FALSE

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


Value-stream mapping is a visual tool used to systematically examine the flow of materials and information.
TRUE or FALSE

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


An optimal schedule would be successive sequences of ABACA.
TRUE or FALSE

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


These help prevent waste.
TRUE or FALSE

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


Small lot-sizing is only workable when setup costs are low.
TRUE or FALSE

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.
FALSE.


These are not in conflict, since with low setup costs the EOQ leads to small lot sizes.
TRUE or FALSE

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.
TRUE.


Unless these problems are solved, steps required to work with low inventories are economically infeasible.
TRUE or FALSE

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


Product versions are produced more frequently in lean systems.
TRUE or FALSE

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


In the lean system, items with large lot sizes tend to be scheduled less frequently.
TRUE or FALSE

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


Group technology can help with reducing setup time and its associated cost.
TRUE or FALSE

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


Group technology can help with reducing setup time and its associated cost.
TRUE or FALSE

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


Economizing on resource usage is at the heart of lean operations.
TRUE or FALSE

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


Autonomation involves the automatic detection of defects during production.
TRUE or FALSE

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


Preventative maintenance is done on a regularly scheduled basis to help prevent breakdowns.
TRUE or FALSE

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


Inventories are reduced as problems are solved.
TRUE or FALSE

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.
TRUE.


Workers are challenged to take on more responsibility for the process in lean operations.
TRUE or FALSE

A real advantage of the lean philosophy is the reduction of co-ordination effort required.
FALSE.


Substantial co-ordination effort is required in the lean philosophy.
TRUE or FALSE

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


The lean philosophy sees smooth flows enabled by work-in-process inventory as inherently wasteful.
TRUE or FALSE

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


The need to carry spare parts is not eliminated by preventative maintenance.
TRUE or FALSE

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


The lean philosophy has no tenet based on how workers are to be paid.
TRUE or FALSE

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


Worker responsibilities are greater in lean operations.
TRUE or FALSE

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.
FALSE.


Work is only moved downstream when such work has been authorized; thus it is important to move finished work downstream because the downstream operation might be starved for inputs.
TRUE or FALSE

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


If that workstation is not authorizing production upstream, soon upstream production will cease.
TRUE or FALSE

Limited WIP lowers inventory carrying costs but reduces flexibility.
FALSE.


Limited WIP actually makes the system more flexible.
TRUE or FALSE

Engineering changes can be very disruptive to smooth operations and should not be made in the six month period following introduction of a new product.
FALSE.


Engineering changes should be minimized by doing a better job of product/process design before the product is in production.
TRUE or FALSE

Kanban is the Japanese term for autonomation.
FALSE.


Kanban is a Japanese term for "sign" or "visible record."
TRUE or FALSE

Increased setup times equal increased work in process inventories.
TRUE.


With higher setup times, batch quantities and work-in-process inventory increases.
TRUE or FALSE

Kanban focuses on specific part numbers; CONWIP does not.
TRUE.


This makes CONWIP more suitable for a mixed-product environment.
TRUE or FALSE

Lean systems typically require that suppliers be able to provide large lots at periodic intervals.
FALSE.


Lean systems need suppliers making frequent deliveries of small lots.
TRUE or FALSE

Lean purchasing requires frequent contract bidding by multiple sources to ensure the buyer of competitive prices.
FALSE.


Lean purchasing requires collaborative relationships with a relatively small number of suppliers.
TRUE or FALSE

One way of reducing the number of suppliers to the organization is to limit contacts to only one or two tiers of suppliers.
FALSE.


Lean operations limit contact to only a first tier of suppliers. These are then responsible for sourcing at the second tier and beyond.
TRUE or FALSE

One major difference between the use of kanban and MRP II in scheduling the products to be built is that kanban is primarily a manual system while MRP II uses computers.
TRUE.


Kanban can be implemented quite well without computers.
TRUE or FALSE

A benefit of the lean philosophy is the flexibility to respond quickly to changing customer requirements.
TRUE.


Lean systems can be more responsive to changing customer requirements.
TRUE or FALSE

A benefit of lean systems is that lead times are increased allowing more time for processing.
FALSE.


Lead times are reduced in lean systems.
TRUE or FALSE

A successful conversion to a lean system requires that every vendor use lean approaches prior to the organization's implementation.
FALSE.


Successful conversion to a lean system tends to require a more cooperative relationship with vendors.
TRUE or FALSE

The single-minute exchange of die is a system for reducing defective product.
FALSE.


Single-minute exchange of die reduces setup costs and therefore lot sizes.
TRUE or FALSE

In a balanced system, cycle time is equal to Takt time.
TRUE.


Takt time is equal to cycle time in a balanced system.
TRUE or FALSE

It is important to lower the water (inventory) completely to expose all the rocks (problems).
FALSE.


Inventory only needs to be lowered modestly to expose the most pressing problems. Over time, with subsequent reductions, all problems will be uncovered.
TRUE or FALSE

Successful lean implementation requires much more than slogans and idealistic goals such as zero inventories and zero defects.
TRUE.


Lean represents a fundamental shift in the philosophy of the organization, requiring changes in a wide variety of areas.
TRUE or FALSE

Lean concepts include large lots to take advantage of the economies of scale.
FALSE.


Lean concepts include small lots to avoid holding costs and associated wastes.
TRUE or FALSE

Value-stream mapping is concerned strictly with the flow of materials through a production system.
FALSE.


Value-stream mapping also looks at information flows.
The lean philosophy suggests that workers are _________.

A. Assets
B. Liabilities
C. Interchangeable
D. Replaceable
E. To be phased out
A.



- Assets.
This is a fundamental tenet of the lean philosophy.
The ultimate goal of lean operations is to have:

A. no in-process inventories

B. cross-trained workers capable of handling every process

C. a smooth, rapid flow of materials through the system

D. no setup times

E. all of the above
C.



- a smooth, rapid flow of materials through the system
This flow should be perfectly balanced with the demand rate.
Which one of the following is not one of the building blocks that is the foundation of the lean philosophy?
A. product design
B. process design
C. personnel/organizational elements
D. manufacturing planning and control
E. kanban
E.



- kanban
Kanban is not a philosophical building block but a tool whose usage often reflects the lean philosophy.
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
A.



- delayed differentiation
Delayed differentiation reduces setup costs with respect to the finished item.
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
E.



- a significant number of daily schedule changes
Daily schedule changes would interrupt the smooth flow that is central to lean production.
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. A, B and C

E. 100% inspection of raw materials, work-in-process and finished goods
D)



- A, B and C
Complete inspection would be wasteful in the lean philosophy.
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.
B)



- Each product is produced less frequently.
Each product is produced more frequently with small lot sizes.
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
C.



- one unit
A lot size of one unit is ideal in a lean environment.
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
C.



- custom setup procedures for each product
Custom setups would increase complexity and therefore setup time and cost.
A conveyance __________ signals parts movement.

A. Request
B. Routing
C. Bar code
D. Kanban
E. Kazian
D.



- Kanban
A conveyance kanban would authorize a batch of parts to be moved.
The term that refers to the automatic detection of defects is:

A. kaizen
B. kanban
C. autonomation
D. automation
E. 100% inspection
C.



- autonomation
Automatically detecting defects is key to reducing waste.
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.
D.



- Major problems must have been solved.
Identifying problems does not facilitate low-inventory operations. Solving problems does.
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
D)



- eliminating supplies of spare parts to reduce capital investment
Reducing spare parts supplies makes the system more vulnerable to a breakdown.
The Five S's don't include _______.

A. Sort
B. Straighten
C. Sanitize
D. Sweep
E. Standardize
C.



- Sanitize
Sanitize is not one of the five S's.
The Kaizen philosophy applies to ________.

A. Employee development
B. Safety stock
C. Waste
D. Supply Chain Management
E. MRP III
C.



- Waste
Through continuous improvement, more and more problems are overcome and the system can be made leaner and leaner.
A 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 worker has run out of parts needed for further processing

D. a machine has broken down and needs immediate attention

E. a machine is ready for preventive maintenance
A.



- work is needed at the work center
Kanban cards signal authorization from downstream work centers.
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
D.



- long-term relationships and commitments
Long-term relationships help ensure that suppliers become partners in the lean firm's waste-reduction efforts.
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 co-workers, essentially other departments of our organization.

D. Queues are a necessary investment.

E. all of the above
C.



- Vendors are co-workers, essentially other departments of our organization.
Long-term relationships help ensure that suppliers become partners in the lean firm's waste-reduction efforts.
The activities controlled in the same way by kanban and MRP II is the determination of:

A. rates of output
B. products to be built
C. materials required
D. capacity required
E. feedback information
B.



- products to be built
Both kanban and MRPII are used to signal production.
Process design supporting lean doesn't include ______.

A. Production flexibility
B. Duplicate facilities
C. Setup time reduction
D. Minimal inventory storage
E. Small lot sizes
B.



- Duplicate facilities
Facilities duplication would be inherently wasteful.
Which of the following questions is not answered by value stream mapping?

A. Where does waste occur?
B. Which processes or sub-processes 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?
C.




- Where are the best opportunities to extract more value from customers?
Value-stream mapping is a process-focused tool.
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 above
C.




- convert vendors to lean as one of the last steps

A firm can become leaner and leaner with its vendors doing so. Only in the last stages does it become important for vendors themselves to become lean.
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 above
E. insufficient space to store the increased inventories
D.



- all of the above
Inventories will not increase in a lean conversion.
A system of lights used at each workstation to signal problems or slowdowns is:

A. command and control center
B. automation
C. andon
D. pull system
E. kanban
C.



- andon
Andon focuses attention on where in the process problems are.
Which of the following contributes to the competitive advantage enjoyed by firms using lean production?

A. Backup employees to cover for absenteeism
B. 100% inspection to remove defects
C. Dedicated equipment to reduce unit costs
D. Safety stocks to prevent stock-outs
E. Greater flexibility to cope with change
E.



- Greater flexibility to cope with change
Firms that use lean production can become more flexible relative to their competitors.
An operations strategy reflecting the lean philosophy of production should recognize that lean:

A. is most suited for non-repetitive manufacturing
B. cannot be implemented sequentially
C. requires a wholesale commitment from the outset
D. may provide a competitive advantage
E. all of the above
D.



- may provide a competitive advantage
Lean is not for every firm and every strategy.
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
C.



- long-term relationships
Long-term relationships typically are necessary to make the vendor a partner in the leaning effort.
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
B.



- minimize inventory
MRP and the lean philosophy are similar in this objective. They differ substantially in how they pursue it.
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%)
D. balanced and rapid flow
E. all of the above
D.



- balanced and rapid flow
Balanced and rapid flow is key to being a waste-free system.
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
B.



- the time needed to perform a service
This is because speed is often an important order winner for services.
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
C.



- have service workers handle multiple tasks
Having service workers handle multiple tasks often makes the system less lean.
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
A)



- JIT II
JIT II is also known as vendor-managed inventory.
Because the lean philosophy is so consequential competitively, firms are often advised to adopt it ________.

A. with products in the introduction phase of their life-cycle

B. with their vendors first

C. completely all at once

D. sequentially over time

E. globally before locally
D.



- sequentially over time
A gradual adoption of lean often gives a clearer picture of its benefits and drawbacks.
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 believing that the system has become more efficient?

A. 2.6
B. 2.3
C. 1.5
D. 1.4
E. 1.2
E.



- 1.2
Decreasing values for X indicate, everything else being equal, a system that is improving in efficiency.
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