Busi 411 – Test 4

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.

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.

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.

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.

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.

Lean operations cannot 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.

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

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

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.

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.

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.

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.

FALSE An optimal schedule would be successive sequences of ABACA.

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

TRUE These help prevent waste.

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.

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.

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.

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.

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.

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.

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.

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.

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

FALSE Autonomation involves the automatic detection of defects during production.

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

FALSE Preventive maintenance is done on a regularly scheduled basis to help prevent breakdowns.

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

TRUE Inventories are reduced as problems are solved.

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.

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

FALSE Substantial coordination effort is required in the lean philosophy.

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.

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

FALSE The need to carry spare parts is not eliminated by preventive maintenance.

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.

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.

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.

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.

Limited WIP lowers inventory carrying costs but reduces flexibility.

FALSE Limited WIP actually makes the system more flexible.

Engineering changes should not be made in the six-month period following the 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.

Kanban is the Japanese term for autonomation.

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

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

TRUE With longer setup times, batch quantities and work-in-process inventory increase.

Kanban focuses on specific part numbers; CONWIP does not.

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

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.

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.

One way of reducing the number of suppliers to the organization is to limit contacts to 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.

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

TRUE Kanban can be implemented quite well without computers.

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

FALSE Lead times are reduced in lean systems.

Which of the following is not something commonly found in lean systems?

(I) Waste reduction
(II) Output match to a detailed forecast
(III) Visual controls
(IV) Quick changeovers
(V) Long production runs

B. both II and V

Which of the following is not a principle regarding the way lean systems function?

(I) Identifying customer values
(II) Focusing on processes that create value
(III) Elimination of waste to create flow
(IV) Increasing forecast accuracy
(V) Producing only according to customer demand
(VI) Optimizing on setup costs with long production runs
(VII) Striving for perfection

C. both IV and VI Emphasis on forecast accuracy and long production runs are not principles of lean systems.

In the Toyota Production System, waste and inefficiency are referred to as __________, and long-term reduction of this is referred to as __________.

A. jidoka; heijunka

B. muda; kanban

C. kaizen; heijunka

D. muda; kaizen

E. muda; jidoka

B. muda; kanban In the TPS, waste/inefficiency are called "muda," and the ongoing process of driving these out is called "kaizen."

Although lean systems tend to produce standardized product lines, to provide production variety without accompanying waste, lean producers often use __________ in __________.

A. standardized parts; modular designs

B. jidoka parts; kaizen designs

C. modular parts; flexible designs

D. capable parts; automated designs

A. standardized parts; modular designs Variety and waste minimization are achieved via standardized parts and modular designs.

Lean systems often rely on a method of overhead allocation known as:

A. direct-labor allocation.

B. capital-charge allocation.

C. mixed-model accounting.

D. activity-based costing.

E. indirect-labor allocation.

D. activity-based costing. Activity-based costing, which is designed to more closely reflect the actual amount of overhead consumed by a particular job or activity, is attractive in lean systems.

A lean-systems method of asking questions about a process is the __________ approach.

A. jidoka

B. 3 kanban

C. heijunka

D. 2 kaizen

E. 5W2H

E. 5W2H The 5 w’s are what, why, where, when, and who, and the 2 h’s are how and how much.

Although transitioning to a lean system can be a powerful means of improving performance, it is generally thought that using __________ along with lean can lead to even better results.

A. kaizen

B. ERP

C. six sigma

D. JIT

E. jidoka

C. six sigma A widely held view is that lean and six sigma are complementary and, when combined, can lead to superior results.

For a company with a product mix of 40 percent of product A and 30 percent each of products B and C, which of the following mixed-model sequences best reflects the lean philosophy?

A. AABBCCAABC

B. ABCABCABCA

C. AAAABBBCCC

D. BCABCABCAB

E. BBBAACCCAA

B. ABCABCABCA This sequence matches the demand rate most closely.

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 choices.

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. 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.

D. designing in quality, insisting on quality materials, and making workers responsible for quality. 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.
Each product is produced more frequently with small lot sizes.

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. 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 percent 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 do not 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 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.

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 coworkers, essentially other departments of our organization.

D. Queues are a necessary investment.

E. All of the choices.
Long-term relationships help ensure that suppliers become partners in the lean firm’s waste-reduction efforts.

C. Vendors are coworkers, essentially other departments of our organization. Long-term relationships help ensure that suppliers become partners in the lean firm’s waste-reduction efforts.

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.

B. products to be built. Both kanban and MRP II are used to signal production.

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.
Facilities duplication would be inherently wasteful.

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 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?

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 choices.

C. convert vendors to lean as one of the last steps. A firm can become leaner and leaner without 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 choices.

E. insufficient space to store the increased inventories

D. all of the choices. Inventories will not increase in a lean conversion.

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.

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. 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

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 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.

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 percent).

D. balanced and rapid flow.

E. all of these.

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.

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

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

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?

4 containers

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?

12.5 percent

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?

3 containers

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?

5 containers