OPER EXAM 3

49) Each R requires 2 of component S and I of part T. The lead time for assembly of R is 3 days. The lead time for the manufacture of S is 5 days. The lead time for the manufacture of T is 10 days. The cumulative lead time for R is _______ days. A) 13 B) 9 C) 17 D) 6 E) cannot be determind

A) 13

29) Characteristics of just in time suppliers do not include A) an increase in release paperwork to obtain more detailed records B) scheduling of inbound freight C) long term contract agreements D) few suppliers E) the buyer actually helping the supplier to meet the quality requirements

A) an increase in release paperwork to obtain more detailed records

8) A characteristics of GIT partnerships with respect to quality is to A) help suppliers meet quality requirements B) draw up strict contract insuring all the defectives will be immediately replaced C) impose Maximum product specifications on the supplier D) maintain a steady output rate E) have 100% inspection of incoming parts

A) help suppliers meet quality requirements

32) when implementing a lean system: A) managers can mitigate some of the effects of worker stress by judiciously using safety stocks and emphasizing material flows rather than worker pace B) It is critical to develop a master production schedule that changes frequently as forcadts change C) management should base the reward system on production volume D) The plant layout is the only environmental charcateristic that meed not be analyzed

A) managers can mitigate some of the effects of worker stress by judiciously using safety stocks and emphasizing material flows rather than worker pace

17) Which of the following is not an advantage of level scheduling? A) matching production exactly with sales B) more employee commitment C) stable employment D) lower turnover E) lower absenteeism

A) matching production exactly with sales

33) which one of the following statements is true? A) the kanban system is more effective when the assembly schedule calls for small lots and does not fluctuate much from day to day B) supplier performance is much more important in US environments than such factors as lot sizes, scrap losses, and worker flexibility C) the number of kanban cards should be equal to the desired safety stock times alpha D) two operating rules for the kanban system are 1) the container size should be equal to at least 7 days of supply and 2) each container must have kanban card

A) the kanban system is more effective when the assembly schedule calls for small lots and does not fluctuate much from day to day

27) Material requirements plans specific A) the quantity and timing of planned order releases B) whether one should use phantom bills of materials or not C) the quantities of the product families that need to be produced D) the capacity needed to provide the project output rate E) The costs associated with alternative plans

A) the quantity and timing of planned order releases

7) Which of the following concepts is needed to achieve uninterrupted material flow? A) uniform plant loading B) pull system C) valid schedules D) All be above or needed E) A and B only are needed

A) uniform plant loading

46) Which of the following statements about MRP is TRUE? A) MRP ross requirements for a parent item are equal to the planned order releases of its components B) MRP gross requirements for a component depend on the planned order releases of its immediate parents C) To be classified as a successful MRP user, a company must use either the L4L or POQ rules for lot sizing D) MRP logic is based on the logic of uniform, continuous demand, and item independence.

B) MRP gross requirements for a component depend on the planned order releases of its immediate parents

49) which of the following statements about aggregate planning is true? A) work station loading and job assignments ar examples of aggregate production planning B) aggregate planning uses the adjustable part of capacity to meet production requirements C) advertising/promotion is a way of manipulating product or service supply D) overtime/idle time is a way of manipulating product or service demand E) all the above are true

B) aggregate planning uses the adjustable part of capacity to meet production requirements

28) Which of the following statements is most accurate? A) more than 90% of outsourcing agreements succeed B) approximately half of all outsourcing agreements fail C) outsourcing is relatively risk free activity D) nearly all outsourcing relationships do not last beyond two years E) Nearly all U.S. firms that outsourced processes to India have backsourced them

B) approximately half of all outsourcing agreements fail

38) which of the following aggregate planning strategies is a capacity option? A) influencing demand by changing price B) changing inventory levels influencing demand by back ordering C) counterseasonal product mixing E)influencing demand by extending lead times

B) changing inventory levels

47) which of the following is the number one reason driving outsourcing for many firms? A) improving operations and services B) cost saving C) focusing on core competencies D) gaining outside technology E) gaining outside expertise

B) cost saving

34) which one of the following is an advantage of lean system? A) lean system reduce equipment needs by using larger lot sizes B) lean systems result in a decrease in safety stock and work in process inventory C) lean systems can be implemented in any production environment D) lean systems result in an increase in manufacturing lead times

B) lean systems result in a decrease in safety stock and work in process inventory

45) which of the following aggregate planning strategies might direct your client to a competitor? A) changing inventory level B) subcontracting C) using part time workers D) varying production rates through overtime or idle time E) varying work force sizes by hiring or layoffs

B) subcontracting

44) 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) the customers workstation signals to the supplier workstation when production is needed C) the supplier workstation signals the customer workstation as soon as a batch is completed D) is it associated with a push system E) It is useful to smooth operations when numerous quality problems occur

B) the customers workstation signals to the supplier workstation when production is needed

39) the typical time horizon for aggregate planning is A) less than a month B) up to 3 months C) 3 to 18 months D) over one year E) over 5 years

C) 3 to 18 months

6) What does TPS stand for A) taguchi's production S's B) total production streamlining C) Toyota production system D) total process simplification E) none of the above

C) Toyota production system

13) Which of the following is the term used for medium range capacity planning with a time horizon of 3 to 18 months? A) Short range planning B) material requirements planning C) aggregate planning D) strategic planning E) none of the above

C) aggregate planning

37) which of the following statements regarding aggregate planning is true A) in a pure level strategy, production rates or work force levels are adjusted to match demand requirements over the planning horizon B) because service firms have no inventory, the pure chase strategy does not apply C) in a mixed strategy, there are changes in both inventory and in work force and production rate over the planning horizon D) a pure level strategy allows lower inventories when compared to pure chase and hybrid strategies E) all of the above are true

C) in a mixed strategy, there are changes in both inventory and in work force and production rate over the planning horizon

36) the implementation of JIT offers several advantages, including A) increase in variablity to better respond to variable demand B) decreased profit margins C) network reduction D) work in process increases E) reduced throughput

C) network reduction

22) in level scheduling, what is kept uniform from month to month? A) demand levels B) inventory levels C) production/workforce levels D) product mix E) sub contracting levels

C) production/workforce levels

The __________ is (are) the MRP input detailing with materials needed to produced end item A) gross requirements B) Assembly time chart C) Bill of materials D) Master production schedule E) inventory record

D) Master production schedule

26) Which of the following is not true regarding core competencies? A) They may represent a small portion of an organization's business activities B) They may include unique production methods C) They may include proprietary technology or information D) They may be good candidates for outsourcing E) They may include specialized knowledge

D) They may be good candidates for outsourcing

16) which of the following is specifically characterized by a focus on continuous improvement, respect for people, and standard work practices? A) Material requirements planning (MRP) B) Lean operations C) Kanban D) Toyota Production System E) Just in time (JIT)

D) Toyota Production System

21) JIT practices will change the MRP planning process by: A) increasing the need for netting B) increasing the need for offsetting C) reducing the number of levels in the bill of materials D) eliminating the need for MRP E) making bill of materials more complex

D) eliminating the need for MRP

10) in MRP record calculations, the appearance of a negative value for the gross requirements of an end item in a specific.... A) signals the need for a negative planned order receipt in that period B) implied that value was scheduled by the MPS C) signals the need to purchase that end item in that period D) is impossible E) all of the above are true

D) is impossible

5)Which one of the following statements is true regarding JIT inventory A) it exist just in case something goes wrong B) it is minimized with large lot production C) it increases if set up costs decrease D) it is the minimum inventory necessary to keep a perfect system running E) it hides variability

D) it is the minimum inventory necessary to keep a perfect system running

15) In the quest for competitive advantage, which of the following is a JIT requirement? A) small number of job classifications B) reduced number or vendors C) quality by suppliers D) reduced space for inventory E) All the above are JIT requirements

D) reduced space for inventory

31) which one of the following statements is true about kanban system? A) it is useful to smooth operations when numerous quality problems occur B) the quantities in the containers are usually large to reduce setup costs C) it is associated with a push system D) the customer workstation signals to the supplier workstation when production is needed E) the supplier workstation signals to the customer workstation as soon as a batch has been completed

D) the customer workstation signals to the supplier workstation when production is needed

20) which of the following is consistent with a pure chase strategy A) vary production level and work fore to meet demand requirements B) vary workforce to meet demand requirements C) little or no use of inventory to meet demand requirements D) vary production level to meet demand requirements E) All of the above are constant with a pure chase strategy

E) All of the above are constant with a pure chase strategy

4) Just in time systems make demands on layouts, including A) distance reduction B) cross trained, flexible employees C) reduced space inventory D) increased flexibility E) all of the above are JIT influences on layout

E) all of the above are JIT influences on layout

24) A manufacturer took the following actions to reduce inventory. Which of these is general not accepted as a JIT action? A) worked to reduce their in-transit inventory B) produced in ever smaller lots C) required deliveries directly to the point of use D) used a pull system to move inventory E) picked the supplier that offered the lowest price based on quantity discounts

E) picked the supplier that offered the lowest price based on quantity discounts

12)Which one of the following is not a requirement of JIT systems? A) Quality deliveries on time B) low setup time C) employee empowerment D) training support E) strong job specialization

E) strong job specialization

30) dependence on an external source of supply is found in which of the following aggregate planning strategies A) varying production rates through overtime or idle time B) back ordering during high demand periods C) hiring and laying off D) using part time workers E) subcontracting

E) subcontracting

11) The pure Chase strategy maintains constant production rates or workforce levels, while inventory levels ... over the planning horizon

FALSE

19) Lot for lot (L4L) is a rule that maintains the same order quantity each time an order is issued

FALSE

23) In MRP, net requirements at one level generate the gross requirements at the next lower level

FALSE

25) The lot for lot lot sizing technique is particularly appropriate when demand is very smooth and set up cost is small compared to holding cost.

FALSE

41) since MRP is quite detailed in nature, it has no influence on the longer range, less detailed aggregate production planning

FALSE

42) automation in lean manufacturing refers to design for automation

FALSE

43) supply chain decisions are not generally strategic in nature, because purchasing is an ordinary expense to most firms

FALSE

48) some business activities, such as human resources and legal processes, cannot be outsourced

FALSE

9) Aggregate production plan, derived from the master production schedule, specifies in more detail how much production is to be made at what times

FALSE

The master production schedule (MPS) is the part of the material requirements planning that specifies when components must be ordered or assembled

FALSE

3) The quantity required of a dependent demand item is computed from the gross requirements of the parent items

TRUE

35) research indicates that of all the reasons given for outsourcing failures, the most common is that the decision was not made with sufficient understanding of the options through analysis

TRUE