Ch16 JIT & Lean Ops | Test Bank – 10th Global Ed

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Operations Management, 10e, Global Edition (Heizer/Render)

Chapter 16 Just-In-Time and Lean Operations

1) TPS stands for Toyota Production System.

Diff: 1

Topic: Just-in-time, the Toyota production system, and lean operations

Objective: LO16-1

2) TPS stands for Total Production Streamlining.

Diff: 1

Topic: Just-in-time, the Toyota production system, and lean operations

Objective: LO16-1

3) Product storage is an example of waste, in the sense that no value is added.

Diff: 2

Topic: Just-in-time, the Toyota production system, and lean operations

Objective: LO16-2

4) In a JIT system, product inspection adds value by identifying defective items.

Diff: 2

Topic: Just-in-time, the Toyota production system, and lean operations

Objective: LO16-2

5) Customer demand will always remain an unknown, so it is not considered a source of variation.

Diff: 2

Topic: Just-in-time, the Toyota production system, and lean operations

Objective: LO16-1

6) Variability in manufacturing can occur because engineering drawings or specifications are incomplete or inaccurate.

Diff: 2

Topic: Just-in-time, the Toyota production system, and lean operations

Objective: LO16-1

7) A push system means providing the next station with exactly what is needed when it is needed.

Diff: 2

Topic: Just-in-time, the Toyota production system, and lean operations

Objective: LO16-1

8) Waste is anything that does not add value, such as storage or inspection of items; waste also includes any activity that does not add value from the consumer's perspective.

Diff: 2

Topic: Just-in-time, the Toyota production system, and lean operations

Objective: LO16-2

9) Increasing inventory exposes variability in production processes.

Diff: 2

Topic: Just-in-time, the Toyota production system, and lean operations

Objective: LO16-1

10) JIT brings about competitive advantage by faster response to the customer regardless of cost.

Diff: 2

Topic: Just-in-time (JIT)

Objective: LO16-3

11) One goal of JIT partnerships is the removal of in-plant inventory by delivery in small lots directly to the using department as needed.

Diff: 1

Topic: Just-in-time (JIT)

Objective: LO16-3

12) Many suppliers feel that having a variety of customers is better than being tied to long-term contracts with one customer.

Diff: 2

Topic: Just-in-time (JIT)

Objective: LO16-3

13) JIT suppliers have concerns that the JIT firm's demands for small lot sizes are simply a way of transferring holding cost from manufacturer firm to the supplier firm.

Diff: 2

Topic: Just-in-time (JIT)

Objective: LO16-3

14) Reducing distance is a common JIT goal.

Diff: 2

Topic: JIT layout

Objective: LO16-3

15) Cross-training is a common JIT tactic to improve flexibility.

Diff: 2

Topic: JIT layout

Objective: LO16-3

16) JIT systems carry inventory just in case something goes wrong.

Diff: 2

Topic: JIT layout

Objective: no LO

17) Hidden problems are generally uncovered during the process of reducing inventory.

Diff: 2

Topic: JIT layout

Objective: no LO

18) Lower average inventory is feasible only if setup times are short.

Diff: 2

Topic: JIT layout

Objective: no LO

19) If setup times and costs can be reduced enough, the JIT ideal of "Lot Size = 1" can be achieved.

Diff: 2

Topic: JIT layout

Objective: no LO

20) A scheduler may find that freezing the portion of the schedule closest to the due dates allows the production system to function and the schedule to be met.

Diff: 2

Topic: JIT scheduling

Objective: LO16-5

21) The first step in reducing setup times is the separation of setup into preparation activities and actual setup, so that as much work as possible can be done while the machine or process is operating.

Diff: 1

Topic: JIT layout

Objective: no LO

22) Level scheduling means producing at a constant rate, regardless of customer demands.

Diff: 1

Topic: JIT scheduling

Objective: LO16-5

23) With level schedules, a few large batches, rather than frequent small batches, are processed.

Diff: 2

Topic: JIT scheduling

Objective: LO16-5

24) The number of kanbans decreases as safety stock is increased.

Diff: 1

Topic: JIT scheduling

AACSB: Communication

Objective: LO16-5

25) A kanban system requires little variability in lead time because shortages have their impact on the entire productive system.

Diff: 2

Topic: JIT scheduling

AACSB: Communication

Objective: LO16-5

26) Inventory has only one positive aspect, which is availability; inventory has several negatives, including increased material handling, obsolescence, and damage.

Diff: 2

Topic: JIT scheduling

Objective: LO16-5

27) The quality management tool called poka-yoke is not relevant to JIT systems.

Diff: 2

Topic: JIT quality

Objective: no LO

28) Employee empowerment is unnecessary in the Toyota Production System, because automation and powerful information systems reduce the need for employee creativity and decision making.

Diff: 1

Topic: Toyota production system

Objective: LO16-6

29) The Toyota Production System requires that activities have built-in, automatic tests so that gaps between expectations and actuality are immediately evident.

Diff: 1

Topic: Toyota production system

Objective: LO16-6

30) The 5Ss–sort/segregate, simplify/straighten, shine/sweep, standardize, and sustain/self discipline–are important to lean production because they act as a means to reduce waste.

Diff: 1

Topic: Just-in-time, the Toyota production system, and lean operations

Objective: LO16-2

31) When implemented as a comprehensive manufacturing strategy, JIT, TPS, and lean systems sustain competitive advantage and result in increased overall returns.

Diff: 2

Topic: Just-in-time, the Toyota production system, and lean operations

Objective: LO16-1

32) Because most services cannot be inventoried, there is little place for JIT to help service organizations achieve competitive advantage.

Diff: 2

Topic: Lean operations in services

Objective: no LO

33) What does TPS stand for?

A) Total Production Streamlining

B) Toyota Production System

C) Taguchi's Production S's

D) Total Process Simplification

E) None of the above

Diff: 1

Topic: Just-in-time, the Toyota production system, and lean operations

Objective: LO16-1

34) Which of the following is generally found in most JIT environments?

A) a push or pull system, depending upon the rate of demand

B) a push system for high margin items and a pull system for low margin items

C) a push system for purchased parts and a pull system for manufactured parts

D) push systems

E) pull systems

Diff: 2

Topic: Just-in-time, the Toyota production system, and lean operations

Objective: LO16-1

35) Which of the following is not a reason for variability?

A) Employees, machines, and suppliers produce units late.

B) Customer demand is unknown.

C) Employees, machines, and suppliers produce units that conform to standards.

D) Engineering drawings are inaccurate.

E) Drawings or specifications are incomplete.

Diff: 1

Topic: Just-in-time, the Toyota production system, and lean operations

Objective: LO16-1

36) Which of the following is specifically characterized by a focus on continuous improvement, respect for people, and standard work practices?

A) Just-in-time (JIT)

B) Toyota Production System (TPS)

C) Lean operations

D) Material requirements planning (MRP)

E) kanban

Diff: 2

Topic: Just-in-time, the Toyota production system, and lean operations

Objective: LO16-1

37) Which of the following is specifically characterized by continuous and forced problem solving through a focus on throughput and reduced inventory?

A) Just-in-time (JIT)

B) Toyota Production System (TPS)

C) Lean operations

D) Material requirements planning (MRP)

E) kanban

Diff: 2

Topic: Just-in-time, the Toyota production system, and lean operations

Objective: LO16-1

38) Which of the following statements regarding a pull system is true?

A) Large lots are pulled from upstream stations.

B) Work is pulled to the downstream stations before it is actually needed.

C) Manufacturing cycle time is increased.

D) Problems become more obvious.

E) None of the above is true of a pull system.

Diff: 2

Topic: Just-in-time, the Toyota production system, and lean operations

Objective: LO16-1

39) Manufacturing cycle time is best defined as the

A) length of the work shift, expressed in minutes per day

B) time it takes a unit to move from one workstation to the next

C) time between the start of one unit and the start of the next unit

D) sum of all the task times to make one unit of a product

E) time from raw materials receipt to finished product exit

Diff: 2

Topic: Just-in-time, the Toyota production system, and lean operations

Objective: LO16-1

40) Which of the following is specifically characterized by the elimination of waste through a focus on exactly what the customer wants?

A) Just-in-time (JIT)

B) Toyota Production System (TPS)

C) Lean operations

D) Material requirements planning (MRP)

E) kanban

Diff: 2

Topic: Just-in-time, the Toyota production system, and lean operations

Objective: LO16-1

41) What is the time required to move orders through the production process, from receipt to delivery?

A) throughput

B) manufacturing cycle time

C) pull time

D) push time

E) queuing time

Diff: 2

Topic: Just-in-time, the Toyota production system, and lean operations

Objective: LO16-1

42) Throughput measures the time

A) that it takes to process one unit at a station

B) between the arrival of raw materials and the shipping of finished products

C) to produce one whole product through an empty system (i.e., with no waiting)

D) required to move orders through the production process, from receipt to delivery

E) none of the above

Diff: 2

Topic: Just-in-time, the Toyota production system, and lean operations

Objective: LO16-1

43) Which of the following is not one of the Seven Wastes?

A) overproduction

B) transportation

C) assignment

D) defective product

E) motion

Diff: 1

Topic: Just-in-time, the Toyota production system, and lean operations

Objective: LO16-2

44) The 5Ss

A) have the "flavor" of a housekeeping list

B) are a checklist for lean operations

C) have become a list of seven items in American practice

D) can be used to assist with necessary changes in organizational culture

E) All of these are true.

Diff: 2

Topic: Just-in-time, the Toyota production system, and lean operations

Objective: LO16-2

45) The list of 5S's, although it looks like a housekeeping directive, supports lean production by

A) identifying non-value items and removing them, in the "sort/segregate" item

B) reducing inventory, in the "standardize" item

C) increasing variability through standardized procedures, in the "standardize" item

D) eliminating wasted motion through ergonomic studies, in the "support" item

E) building good safety practices, in the "shine/sweep" item

Diff: 2

Topic: Just-in-time, the Toyota production system, and lean operations

Objective: LO16-2

46) Concerning relationships with suppliers, which of the following combinations is critical to the success of JIT?

A) close relationships with trust

B) close relationships with skepticism

C) distant relationships with trust

D) distant relationships with skepticism

E) none of the above

Diff: 1

Topic: Just-in-time (JIT)

Objective: LO16-3

47) Which one of the following is not a benefit of the implementation of JIT?

A) cost reduction

B) variability increase

C) rapid throughput

D) quality improvement

E) rework reduction

Diff: 1

Topic: Just-in-time (JIT)

Objective: LO16-1

48) If the goals of JIT partnerships are met, which of the following is a result?

A) For incoming goods, receiving activity and inspection are outsourced.

B) In-transit inventory falls as suppliers are located closer to facilities.

C) The number of suppliers increases.

D) In-plant inventory replaces in-transit inventory.

E) All of the above are consequences of meeting the JIT partnership goals.

Diff: 2

Topic: Just-in-time (JIT)

Objective: LO16-3

49) Which one of the following is a characteristic of a JIT partnership?

A) large number of suppliers

B) maximal product specifications imposed on supplier

C) active pursuit of vertical integration

D) removal of incoming inspection

E) frequent deliveries in large lot quantities

Diff: 2

Topic: Just-in-time (JIT)

Objective: LO16-3

50) Characteristics of JIT partnerships with respect to suppliers include

A) competitive bidding encouraged

B) buyer plant pursues vertical integration to reduce the number of suppliers

C) support suppliers so they become or remain price competitive

D) most suppliers at considerable distance from purchasing organization

E) All of the above are characteristics of JIT partnerships.

Diff: 2

Topic: Just-in-time (JIT)

Objective: LO16-3

51) Characteristics of just-in-time partnerships do not include

A) removal of in-transit inventory

B) large lot sizes to save on setup costs and to gain quantity discounts

C) long-term contracts

D) few suppliers

E) buyer helps supplier to meet the quality requirements

Diff: 2

Topic: Just-in-time (JIT)

Objective: LO16-3

52) Which of the following is not a goal of JIT partnerships?

A) removal of unnecessary activities

B) removal of in-plant inventory

C) removal of in-transit inventory

D) removal of engineering changes

E) All of the above are goals of JIT partnerships.

Diff: 2

Topic: Just-in-time (JIT)

Objective: LO16-3

53) A characteristic of JIT partnerships with respect to quality is to

A) help suppliers meet quality requirement

B) inspect all incoming parts

C) maintain a steady output rate

D) impose maximum product specifications on the supplier

E) draw up strict contracts ensuring that all defectives will be immediately replaced

Diff: 2

Topic: Just-in-time (JIT)

Objective: LO16-3

54) Which of the following is not a goal of JIT partnerships?

A) removal of unnecessary activities

B) removal of in-plant inventory

C) removal of in-transit inventory

D) obtain improved quality and reliability

E) All of the above are goals of JIT partnerships.

Diff: 2

Topic: Just-in-time (JIT)

Objective: LO16-3

55) Which one of the following is a concern expressed by suppliers?

A) elimination of in-plant inventory

B) delivery to the point of use

C) production with zero defects

D) large lot sizes

E) customers' infrequent engineering changes

Diff: 2

Topic: Just-in-time (JIT)

Objective: LO16-3

56) Reduction of in-transit inventory can be encouraged through use of

A) supplier location near plants

B) low setup costs

C) low carrying costs

D) use of trains, not trucks

E) low-cost, global suppliers

Diff: 2

Topic: Just-in-time (JIT)

Objective: LO16-3

57) In JIT partnerships, suppliers have several concerns. Which of the following is not such a concern?

A) desire for diversification

B) poor customer scheduling

C) small lot sizes

D) producing high enough quality levels

E) customers' infrequent engineering changes

Diff: 1

Topic: Just-in-time (JIT)

Objective: LO16-3

58) Which of the following is not a concern of suppliers as they prepare to enter into JIT partnerships?

A) Suppliers feel that they would be less at risk if they contracted with more than one customer.

B) Suppliers are concerned that customers will present frequent engineering changes with inadequate lead time to deal with them.

C) Suppliers feel that their processes are suited for larger lot sizes than the customer wants.

D) Suppliers are concerned that frequent delivery of small quantities is economically prohibitive.

E) All of the above represent JIT supplier concerns.

Diff: 2

Topic: Just-in-time (JIT)

Objective: LO16-3

59) Just-in-time systems make demands on layouts, including

A) distance reduction

B) increased flexibility

C) reduced space and inventory

D) cross-trained, flexible employees

E) All of the above are JIT influences on layout.

Diff: 2

Topic: JIT layout

Objective: no LO

60) Which one of the following is not a layout tactic in a JIT environment?

A) work cells for families of products

B) fixed equipment

C) minimizing distance

D) little space for inventory

E) poka-yoke devices

Diff: 2

Topic: JIT layout

Objective: no LO

61) Which of the following is the author of the phrase "Inventory is evil"?

A) Poka Yoke

B) Pat "Keiretsu" Morita

C) Kanban Polka

D) Shigeo Shingo

E) none of the above

Diff: 2

Topic: JIT layout

Objective: no LO

62) Which one of the following statements is true regarding JIT inventory?

A) It exists just in case something goes wrong.

B) It is the minimum inventory necessary to keep a perfect system running.

C) It hides variability.

D) It is minimized with large lot production.

E) It increases if setup costs decrease.

Diff: 2

Topic: JIT layout

Objective: no LO

63) A firm wants to develop a level material use schedule based on the following data. What should be the setup cost?

A) $0.45

B) $4.50

C) $45

D) $450

E) $500

Diff: 2

Topic: JIT layout

AACSB: Analytic Skills

Objective: no LO

64) A product has annual demand of 100,000 units. The plant manager wants production to follow a four-hour cycle. Based on the following data, what setup cost will enable the desired production cycle? d=400 per day (250 days per year), p=4000 units per day, H=$40 per unit per year, and Q=200 (demand for four hours, half a day).

A) $2.00

B) $7.20

C) $18.00

D) $64.00

E) $1,036.80

Diff: 2

Topic: JIT layout

AACSB: Analytic Skills

Objective: no LO

65) Which of the following is true regarding the steps to reducing setup times?

A) The first step involves performing as much setup preparation as possible while the process/machine is operating.

B) The cycle of steps is repeated until setup time is reduced to under a minute.

C) Standardize tooling and standardize training are included in the same step.

D) Improved material handling and move material closer are done before operator training.

E) All of the above are true.

Diff: 2

Topic: JIT layout

Objective: no LO

66) Factory X is trying to use level use scheduling. If their first target were to cut the current lot size in half, by what proportion must setup cost change?

A) Setup cost must be cut to one fourth its current value.

B) Setup cost must also be cut in half from its current value.

C) Setup cost must double from its current value.

D) cannot be determined

E) none of the above

Diff: 2

Topic: JIT layout

Objective: no LO

67) The technique known as level schedules

A) requires that schedules be met without variation

B) processes many small batches rather than one large one

C) is known as "jelly bean" scheduling

D) is based on meeting one day's demand with that day's production

E) All of the above are true regarding level scheduling.

Diff: 2

Topic: JIT scheduling

Objective: LO16-5

68) Which one of the following statements is true about the kanban system?

A) The quantities in the containers are usually large to reduce setup costs.

B) It is associated with a push system.

C) It is useful to smooth operations when numerous quality problems occur.

D) The supplier workstation signals the customer workstation as soon as a batch is completed.

E) The customer workstation signals to the supplier workstation when production is needed.

Diff: 2

Topic: JIT scheduling

AACSB: Communication

Objective: LO16-5

69) Kanban is associated with all of the following except

A) small lot sizes

B) signals, such as cards, lights, or flags

C) moving inventory only as needed

D) increased material handling

E) reductions in inventory

Diff: 2

Topic: JIT scheduling

AACSB: Communication

Objective: LO16-5

70) The word "kanban" means

A) low inventory

B) employee empowerment

C) card

D) continuous improvement

E) lot size of one

Diff: 1

Topic: JIT scheduling

AACSB: Communication

Objective: LO16-5

71) Which one of the following scenarios represents the use of a kanban to reduce inventories?

A) A supervisor tells the operators to stay busy and start producing parts for next month.

B) A "supplier" work center signals the downstream workstation that a batch has been completed.

C) A supervisor signals to several work centers that the production rate should be changed.

D) A "customer" work center signals to the "supplier" workstation that more parts are needed.

E) An operator asks the next station's operator to help him fix his machine.

Diff: 2

Topic: JIT scheduling

AACSB: Communication

Objective: LO16-5

72) If a casual-dining restaurant is attempting to practice JIT and lean operations, which of the following would not be present?

A) close relationship with the restaurant's suppliers of food, utensils, and equipment

B) food preparation in large batches

C) a kitchen set up to minimize wasteful movements

D) lean inventories of food

E) All of the above should be present.

Diff: 2

Topic: JIT scheduling

Objective: LO16-5

73) The number of kanbans is

A) one

B) the ratio of the reorder point to container size

C) the same as EOQ

D) one full day's production

E) none of the above

Diff: 2

Topic: JIT scheduling

AACSB: Communication

Objective: LO16-5

74) Lead time for cakes is 2 days with daily demand of 10 cakes and a safety stock of ½ a day. Each container (kanban) holds 1 cake. What is the correct number of kanbans?

A) not enough information

B) 1

C) 5

D) 10

E) 25

Diff: 2

Topic: JIT scheduling

Objective: LO16-6

75) The cook in a fast-food restaurant knows that 2 hamburger patties and an order of fries should be started for each car that is waiting in line. This is best an example of

A) Lead time

B) Kanban

C) JIT

D) Kaizen

E) EOQ

Diff: 2

Topic: JIT scheduling

Objective: LO16-5

76) Lead time for computers is 7 days with daily demand of 5 computers and a safety stock of 1 day. Each kanban holds 8 computers. What is the correct number of kanbans?

A) not enough information

B) 1

C) 5

D) 7

E) 8

Diff: 2

Topic: JIT scheduling

Objective: LO16-6

77) Lead time for computers is 5 days with daily demand of 25 and safety stock of 5 computers. If management wants to use 10 kanbans how many computers should each one hold?

A) not enough information

B) 1

C) 5

D) 10

E) 13

Diff: 2

Topic: JIT scheduling

Objective: LO16-6

78) A grocery store is attempting to implement a kanban system. Which of the following would not be an application of kanbans?

A) An empty doughnut tray signaling the bakery to produce 2 dozen glazed doughnuts.

B) A line of 5 people in the Chinese department signaling the department to heat 5 Crab Rangoon.

C) A red light on top of the cashier's lane signals that the cashier needs additional change replenished.

D) The meat department stocking up on turkeys before Thanksgiving.

E) All of the above are kanban applications.

Diff: 2

Topic: JIT scheduling

Objective: LO16-5

79) Which of the following is false regarding the links between JIT and quality?

A) Inventory hides bad quality; JIT immediately exposes it.

B) JIT reduces the number of potential sources of error by shrinking queues and lead times.

C) As quality improves, fewer inventory buffers are needed; in turn, JIT performs better.

D) If consistent quality exists, JIT allows firms to reduce all costs associated with inventory.

E) All of the above are true.

Diff: 2

Topic: JIT quality

Objective: no LO

80) JIT makes quality cheaper because

A) the cost of low quality can be hidden as inventory cost

B) JIT spots defects early

C) JIT prevents long runs of defects

D) B and C

E) A, B and C

Diff: 2

Topic: JIT quality

Objective: LO16-1

81) Which of the following is an illustration of employee empowerment?

A) UPS drivers are trained to perform several motions smoothly and efficiently.

B) Unionization of the work place brings better morale and therefore better quality.

C) "No one knows the job better than those who do it."

D) all of the above

E) none of the above

Diff: 2

Topic: Toyota production system

Objective: LO16-7

82) Which of the following is not characteristic of a TPS employee?

A) knowledgeable

B) strict job classifications

C) know more about their job than anyone else

D) empowered

E) All of the above characterize a TPS employee.

Diff: 2

Topic: Toyota production system

Objective: LO16-7

83) Which of the following is not an attribute of lean operations?

A) eliminating almost all inventory through just-in-time techniques

B) minimizing space requirements by reducing the distance a part travels

C) pushing responsibility to the highest level possible through centralized decision making

D) educating suppliers to accept responsibility for helping meet customer needs

E) All of the above are attributes of lean operations.

Diff: 1

Topic: Lean operations

Objective: LO16-1

84) Lean operations are known for their

A) employee development

B) supplier education

C) supplier partnerships

D) challenging jobs

E) All of the above are attributes of lean operations.

Diff: 1

Topic: Lean operations

Objective: LO16-1

85) Which of the following is characteristic of lean operations?

A) long lead times

B) easy, mindless jobs

C) specialty workers with no cross-training

D) low space requirements

E) no supplier partnerships

Diff: 1

Topic: Lean operations

Objective: LO16-1

86) In the quest for competitive advantage, which of the following is a JIT requirement?

A) small number of job classifications

B) reduced number of vendors

C) reduced space for inventory

D) quality by suppliers

E) All of the above are JIT requirements.

Diff: 2

Topic: Multiple sections

87) Which one of the following does not exemplify JIT used for competitive advantage?

A) Acme Foods decides to decrease the number of its suppliers to just a few.

B) Ajax, Inc. is proud to announce that incoming goods are delivered directly to the point of use.

C) Ardoyne Builders has a scheduled preventive maintenance program.

D) Cheramie Trucking trains workers to specialize and become very efficient in one job.

E) Cajun Contractors has reduced the amount of space for inventory.

Diff: 2

Topic: Multiple sections

88) Which one of the following is not a requirement of JIT systems?

A) quality deliveries on time

B) low setup time

C) training support

D) strong job specialization

E) employee empowerment

Diff: 2

Topic: Multiple sections

89) Great Lakes Barge and Baggage Company makes, among other things, battery-operated bilge pumps. Which of the following activities is not part of JIT? They

A) communicate their schedules to suppliers

B) produce in long production runs to reduce the impact of setup costs

C) use a pull system to move inventory

D) continuously work on reducing setup time

E) produce in small lots

Diff: 2

Topic: Multiple sections

90) Which one of the following is an example of JIT being used for competitive advantage?

A) Jones Company has decreased the number of job classifications to just a few.

B) Lafourche Metals increases the number of its suppliers to be less dependent on just a few.

C) Houma Fabricators is proud to announce that incoming goods are inspected.

D) Acme Company tells its maintenance department to intervene only if a machine breaks down.

E) Caro Specialty Metals, Inc. has built a new, huge warehouse to store inventory.

Diff: 2

Topic: Multiple sections

91) A manufacturer took the following actions to reduce inventory. Which of these is generally not accepted as a JIT action?

A) It used a pull system to move inventory.

B) It produced in ever smaller lots.

C) It required deliveries directly to the point of use.

D) It picked the supplier that offered the lowest price based on quantity discounts.

E) It worked to reduce the company's in-transit inventory.

Diff: 2

Topic: Multiple sections

92) Excess bags of basic commodities such as flour and sugar from a lack of supplier-restaurant JIT partnership represents which of the following wastes?

A) overproduction

B) queues

C) transportation

D) inventory

E) defective product

Diff: 1

Topic: Lean operations in services

Objective: LO16-2

93) Which of the following statements regarding JIT in services is true?

A) Restaurants do not use JIT layouts because they interfere with creation of a good servicescape.

B) Excess customer demand in services such as air travel is met by dipping into safety stocks.

C) All of the JIT techniques for dealing with suppliers, layout, inventory, and scheduling are used in services.

D) Scheduling is not relevant to effective use of JIT in services.

E) All of the above are false.

Diff: 2

Topic: Lean operations in services

Objective: no LO

94) __________ is the minimum inventory necessary to keep a perfect system running.

Diff: 2

Topic: Just-in-time, the Toyota production system, and lean operations

Objective: LO16-1

95) __________ is the Japanese word for card that has come to mean "signal."

Diff: 2

Topic: JIT scheduling

AACSB: Communication

Objective: LO16-5

96) When suppliers are encouraged to locate near manufacturing plants, the goal of the JIT partnership is to reduce __________ inventory.

Diff: 1

Topic: Just-in-time (JIT)

Objective: LO16-3

97) __________ is any deviation from the optimum process that delivers perfect product on time, every time.

Diff: 2

Topic: Just-in-time, the Toyota production system, and lean operations

Objective: LO16-1

98) A(n) __________ is a JIT concept that results in material being produced only when requested and moved to where it is needed just as it is needed.

Diff: 2

Topic: Just-in-time, the Toyota production system, and lean operations

Objective: LO16-1

99) The __________ is the time between the arrival of raw materials and the shipping of finished products.

Diff: 2

Topic: Just-in-time, the Toyota production system, and lean operations

Objective: LO16-1

100) __________ allows manufacturing work cells and offices to be easily rearranged.

Diff: 1

Topic: JIT layout

Objective: no LO

101) The main focus of JIT efforts to reduce investment in inventory requires __________.

Diff: 1

Topic: JIT layout

Objective: no LO

102) __________ gets suppliers to accept responsibility for satisfying end customer needs.

Diff: 1

Topic: Lean operations

Objective: no LO

103) __________ involves scheduling products so that each day's production meets the demand for that day.

Diff: 2

Topic: JIT scheduling

Objective: LO16-5

104) TPS stands for __________.

Diff: 1

Topic: Just-in-time, the Toyota production system, and lean operations

Objective: LO16-1

105) The 5S term __________ includes analysis to improve workflow and reduce wasted motion.

Diff: 1

Topic: Just-in-time, the Toyota production system, and lean operations

Objective: LO16-2

106) Handling material more than once is an example of the waste called __________.

Diff: 1

Topic: Just-in-time, the Toyota production system, and lean operations

Objective: LO16-2

107) What does TPS stand for?

Diff: 1

Topic: Just-in-time, the Toyota production system, and lean operations

Objective: LO16-1

108) Define variability within the context of JIT.

Diff: 2

Topic: Just-in-time, the Toyota production system, and lean operations

Objective: LO16-1

109) Differentiate between a push and a pull system.

Diff: 2

Topic: Just-in-time, the Toyota production system, and lean operations

Objective: LO16-1

110) Define manufacturing cycle time in the context of JIT systems.

Diff: 2

Topic: Just-in-time, the Toyota production system, and lean operations

Objective: LO16-1

111) Identify sources of variability.

2. Late or non-comforming units

3. Unknown customer demands

Diff: 2

Topic: Just-in-time, the Toyota production system, and lean operations

Objective: LO16-1

112) What three things does the Toyota Production System (TPS) emphasize?

Diff: 2

Topic: Just-in-time, the Toyota production system, and lean operations

Objective: LO16-1

113) What are the goals of JIT partnerships?

2. Removal of in-plant inventory by delivery in small lots directly to the using department as needed.

3. Removal of in-transit inventory by encouraging suppliers to locate nearby and provide frequent small shipments.

4. Obtain improved quality and reliability through long-term commitments, communication, and cooperation.

Diff: 2

Topic: Just-in-time (JIT)

Objective: LO16-3

114) Compare and contrast throughput with manufacturing cycle time.

Diff: 2

Topic: Just-in-time, the Toyota production system, and lean operations

Objective: LO16-1

115) What are the five reasons given by suppliers for their reluctance to enter into JIT systems? Elaborate on one of these, of your choosing.

Diff: 2

Topic: Just-in-time (JIT)

Objective: LO16-3

116) Identify the layout tactics appropriate for a JIT environment.

Diff: 2

Topic: JIT layout

Objective: no LO

117) Identify the inventory tactics appropriate for a JIT environment.

Diff: 2

Topic: JIT layout

Objective: no LO

118) What is a kanban?

Diff: 1

Topic: JIT scheduling

AACSB: Communication

Objective: LO16-5

119) Describe level schedules. What purpose do they serve?

Diff: 2

Topic: JIT scheduling

Objective: no LO

120) Identify JIT scheduling tactics.

Diff: 2

Topic: JIT scheduling

Objective: no LO

121) Identify some of the signals that kanban systems use.

Diff: 1

Topic: JIT scheduling

AACSB: Communication

Objective: LO16-5

122) Explain how JIT works in services. After all, how does "small lot size" and "reduce setup cost" make sense in services? Supply examples to support your work.

Diff: 2

Topic: JIT in services

Objective: no LO

123) How are lean operations and the Toyota Production System (TPS) alike? How are they different?

Diff: 1

Topic: Lean operations

Objective: no LO

124) What are the 5Ss? Why does the list of the 5Ss sometimes have seven elements?

Diff: 2

Topic: Just-in-time, the Toyota production system, and lean operations

Objective: LO16-2

125) Identify Ohno's Seven Wastes. Which one of these deals most directly with distance reductions?

Diff: 2

Topic: Just-in-time, the Toyota production system, and lean operations

Objective: LO16-2

126) Identify JIT policies for and expectations of suppliers.

Diff: 1

Topic: Just-in-time (JIT)

Objective: LO16-3

127) Weekly usage of a product is 8 units. Since the plant operates 50 weeks per year, this leads to annual usage of 400 units. Setup cost is $40 and annualized carrying cost is $80. Weekly production of this product is 12 units. Lead time is four weeks, and safety stock is one week's production. What is optimal kanban size? What is the optimal number of kanbans?

Diff: 2

Topic: JIT scheduling

AACSB: Analytic Skills

Objective: LO16-6

128) You have read that in JIT and lean production the optimum lot size is one, with some exceptions for packaging and physical limitations. If a product currently has a lot size of 25, what must happen to setup time for the lot size to truly fall to one? Data for this problem are D=100 units, S=$75 based on setup time of 50 minutes at $1.50 per minute, and H=$40 per unit per year.

Diff: 2

Topic: JIT layout

AACSB: Analytic Skills

Objective: LO16-4

129) Daily usage of a product is 10 in a facility that operates every day of the year. Setup cost is $68 and annualized carrying cost is $100. Daily production of this product is 20. Lead time is 14 days; safety stock is one day's production. What is the optimum kanban size, and number of kanbans?

Diff: 2

Topic: JIT scheduling

AACSB: Analytic Skills

Objective: LO16-6

130) Daily usage of an assembly is 100 in a facility that operates 300 days of the year. Setup cost is $5 and annualized carrying cost is $160. Production of this assembly occurs at the rate of 400 per day when production of the assembly is underway. Lead time is 3 days; safety stock is 1/2 day's production. What is the optimum kanban size, and number of kanbans?

Diff: 3

Topic: JIT scheduling

AACSB: Analytic Skills

Objective: LO16-1

131) Daily usage of a part is 20 in a facility that operates 250 days of the year. Setup cost is $20 and annualized carrying cost is $210. Production of this part occurs at the rate of 50 per day when production of the part is underway. Lead time is 1 day; safety stock is 1/2 day's production. What is the optimum kanban size, and number of kanbans?

Diff: 2

Topic: JIT scheduling

AACSB: Analytic Skills

Objective: LO16-6

132) A certain product has been effectively managed in the past, according to its managers. The previous technique used the economic production quantity model, and resulted in an optimum lot size of 100. For this product, setup time is directly proportional to setup cost, and setup time is currently 40 minutes per batch. How much must setup time decline in order for the lot size to fall to 50 units? 25 units? 10 units?

Diff: 2

Topic: JIT layout

AACSB: Analytic Skills

Objective: LO16-4

133) A repetitive manufacturing firm is planning on level material use. The following information has been collected. Currently, the firm operates 250 days per year.

a. What is the setup cost, based on the desired lot size?

b. What is the setup time, based on $40 per hour setup labor?

(b) Setup time = 4.38 min

Diff: 2

Topic: JIT layout

AACSB: Analytic Skills

Objective: LO16-4

134) Labor cost for set-up is $500/hour. If the plant plans on level material use and operates 50 days per year, determine the time it takes to setup.

$1102.5/$500 = 2.205 hours

Diff: 2

Topic: JIT scheduling

AACSB: Analytic Skills

Objective: LO16-4

135) Daily demand is half of daily production. If setup and holding costs are equal, determine how Q and D are related.

Diff: 1

Topic: JIT scheduling

AACSB: Analytic Skills

Objective: LO16-4

136) A bakery uses 5 containers that each hold 5 cakes. If daily demand is 20 cakes and lead time is 1 day determine the safety stock.

Diff: 1

Topic: JIT scheduling

AACSB: Analytic Skills

Objective: LO16-6

137) A bakery uses 6 containers that each hold 4 cakes. If safety stock is 2 cakes and lead time is 11 days, determine daily demand.

Diff: 1

Topic: JIT scheduling

AACSB: Analytic Skills

Objective: LO16-6

138) A bakery uses 5 containers that hold 3 cakes. Daily demand is 10 cakes and safety stock is 5 cakes. What is the lead time?

Diff: 1

Topic: JIT scheduling

AACSB: Analytic Skills

Objective: LO16-6