Managing Inventories

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Question 1
Free
Multiple Choice

In the lean systems approach, as a system improves, it should have ____________ inventory on hand.

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A

More

B

The same amount of

C

Less

D

Twice the amount of

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Question 2
Free
Multiple Choice

As lean systems thinking is implemented, the amount of training that employees receive:

Choose correct answer/s
A

Tends to be about the same as with other manufacturing philosophies.

B

Tends to increase.

C

Tends to be reduced dramatically, replaced instead by continuous improvement.

D

Is focused exclusively on statistical process control.

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Question 3
Free
Multiple Choice

When lean systems are implemented:

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A

Variable costs tend to increase, while fixed costs tend to decrease.

B

Fixed costs tend to increase, while variable costs tend to decrease.

C

Fixed and variable costs both tend to decrease.

D

Contribution margin tends to decrease.

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Question 4
Free
Multiple Choice

In a lean system, waste is any action that

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A

Costs money.

B

Could be done by an outside supplier.

C

Does not generate value.

D

Must be performed manually.

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Question 5
Free
Multiple Choice

John Jones is a plant manager.He believes his plant is guilty of "waste of overproduction." Which of the following symptoms might he have observed that led to this belief?

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A

Idle equipment.

B

Excess inventory.

C

High customer returns of products.

D

All of these.

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Question 6
Multiple Choice

We observe a man working on a setup.During the process of setting up, the man positions the die at a first position.He then runs through a few pieces to check whether or not they are acceptable.He then repositions the die and repeats the process.What we have observed is which of the following forms of waste?

Choose correct answer/s
A
Processing waste
B
Waste from product defects
C
Inventory waste
D
Waste of motion
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Question 7
Multiple Choice

Most of the tools and techniques used in lean systems seek to:

Choose correct answer/s
A
Reduce variability from the system.
B
Reduce the operator's discretion.
C
Improve product quality.
D
None of these.
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Question 8
Multiple Choice

Achieving the goal of producing at the output rate which matches the rate of customer demand is the goal of:

Choose correct answer/s
A
Jidoka.
B
Poka-yoke.
C
Total productive maintenance.
D
TAKT time flow balancing.
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Question 9
Multiple Choice

A production kanban authorizes a worker to:

Choose correct answer/s
A
Add an empty bin.
B
Withdraw a standard lot of a specific item.
C
Withdraw any item he feels is needed.
D
Replenish an empty bin.
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Question 10
Multiple Choice

Zanadu Corp.produces several different colors of a product on a single production line.It used to take several hours to switch colors, but now Zanadu has found a way to prepare for changing colors in a few minutes.This was most likely accomplished by:

Choose correct answer/s
A
TAKT time flow balancing.
B
Implementing andon lights.
C
Converting internal to external setups.
D
Converting external to internal setups.
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Question 11
Multiple Choice

In our accounting department one of the actions taken by a clerk has been to identify the most frequently used forms and to put them in an area where they can be easily accessed.The other less frequently used forms have been tagged and put in their own separate area.This action likely occurred from the use of which lean tool?

Choose correct answer/s
A
A 5-S program
B
Kanban scheduling
C
Jidoka
D
Poka-yoke
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Question 12
Multiple Choice

A standard electrical plug fits into an outlet in only one way because one of the two prongs is larger than the other.This ensures that people will insert the plug properly to create a grounded circuit.This is an example of:

Choose correct answer/s
A
Cause-and-effect analysis.
B
Kanban.
C
Poka-yoke.
D
A benefit of Pareto analysis.
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Question 13
Multiple Choice

Lean systems applications have found the most acceptance and adoption in:

Choose correct answer/s
A
Service firms.
B
Entire supply chains.
C
Design activities.
D
Manufacturing firms.
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Question 14
Multiple Choice

Applying lean systems to supply chain relationships has which of the following risks?

Choose correct answer/s
A
It encourages companies to buy at the lowest unit price.
B
It encourages firms in the supply chain to hold extra inventory to protect themselves from failure.
C
It makes the supply chain more vulnerable to performance breakdowns.
D
All of these.
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Question 15
Multiple Choice

Johnson Corp.has so strongly embraced the lean philosophy that it wants to apply the approach to all processes in the organization.Doing this may actually have the most severe negative impact on:

Choose correct answer/s
A
Radical product innovation.
B
Incremental product innovation.
C
TAKT time.
D
All of these.
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Question 16
Multiple Choice

Which of the following two areas does lean/just-in-time production focus its attention on? I.Cost
II)Quality
III)Variance
IV)Waste

Choose correct answer/s
A
I and III
B
II and IV
C
I and II
D
III and IV
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Question 17
Multiple Choice

Unnecessary automation is an example of which of the following forms of waste?

Choose correct answer/s
A
Overproduction
B
Process
C
Motion
D
Rework
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Question 18
Multiple Choice

Which of the following most accurately describes the role of quality in a lean/just-in-time manufacturing environment?

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A
High quality is an important waste reduction tool.Reducing defects reduces wasted material and capacity, and reduces the need for safety stocks.
B
Quality has little to do with JIT.JIT is primarily a scheduling and inventory control tool.
C
The important thing is to screen the defects out of incoming components and raw materials.If this is done, the production process can carry on without much concern for quality.
D
Because everything is being done just in time, there is no time to worry about quality during the production process.Instead, we rely on screening out defects during finished goods inspection.
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Question 19
Multiple Choice

Which of the following would you NOT expect to find in a company attempting to implement lean/just-in-time production?

Choose correct answer/s
A
Emphasis on flexible, cross-trained workers
B
Inspections after each piece is produced
C
Frequent changeovers from one product to another
D
Emphasis on preventive maintenance for equipment
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Question 20
Multiple Choice

McGreen Burger Shop sells about two burgers per minute.Although the cook can cook up to 10 burgers per minute, he starts to cook another burger only after the salesperson removes a burger from the ramp.The ramp is large enough to hold only five burgers and keep them warm until a sale is made.This is an example of a:

Choose correct answer/s
A
Pull system.
B
Push system.
C
Group technology.
D
Poka-yoke.
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