Production 315 Final Exam

Which of the following describes the design phase of the new service or product development process?

The first stage of the new service or product development process that links the creation of new services or products to the corporate strategy of the firm and defines the requirements for the firm's supply chain

________ is the belief that waste can be eliminated.

The just-in-time (JIT) philosophy

Which of the following describes administrative cost?

The managerial time, travel, and other variable costs associated with interacting with a supplier

Which of the following describes what forward integration is?

The process of acquiring more channels of distribution, such as distribution centers (warehouses) and retail stores, or even business customers

Which of the following describes supply chain design?

The process of designing a firm's supply chain to meet the competitive priorities of the firm's operations strategy

Which of the following describes channel assembly?

The process of using members of the distribution channel as if they were assembly stations in the factory

Which of the following describes the make-to-stock supply chain design?

The product that is built to a sales forecast and sold to customers from a finished goods stock

_________ is often used in conventional systems; it uses forecasts of demand and produces the item before the customer orders it.

The push method

Which of the following describes supply chain management?

The synchronization of a firm's processes with those of its suppliers and customers to match the flow of materials, services, and information with demand

Which of the following describes cash-to-cash?

The time lag between paying for the services and materials needed to produce a service or product and receiving payment for it

When using the beta probability distribution to estimate activity times, which of the following is TRUE?

The use of most optimistic, most likely, and most pessimistic times for an activity will result in a determination of the expected times for that activity.

Which of the following is a component of a lean system?

Total Preventive Maintenance (TPM)

Which of the following does a firm have the least amount of control over?

Underfilled shipments

_________ doesn't need to be eliminated to reduce waste.

Underproduction

__________ is a system in which the supplier has access to the customer's inventory data and is responsible for maintaining the inventory level required by the customer.

VMI (vendor-managed inventory)

________ is a systematic effort to reduce the cost or improve the performance of services or products, either purchased or produced.

Value analysis

Which of the following options reduces the risk for operational disruptions and also minimizes the bullwhip effect in supply chains?

Visibility

Which of the following describes concurrent engineering?

A concept that brings product engineers, process engineers, marketers, buyers, information specialists, quality specialists, and suppliers together to design a product and the processes that will meet customer expectations

Which of the following describes postponement?

A concept whereby some of the final activities in the provision of a service or product are delayed until the orders are received

Which of the following is an informal kanban system?

A container system

Which of the following is a less formal kanban method?

A containerless system

What is backward integration?

A firm's movement upstream toward the sources of raw materials, parts, and services through acquisitions

Which of the following describes presourcing?

A level of supplier involvement in which suppliers are selected early in a product's concept development stage and are given significant, if not total, responsibility for the design of certain components or systems of the product

All of the following—A-I-K, A-F-K, and B-C-E-K—can be described as __________.

A path

What is the WBS?

A statement of all work that has to be completed

Before beginning to create a network model for a project, the project must be described in general terms. Two types of information that must be defined are

Activities and precedence relationships

Which of the following is NOT a reasonable time estimate of statistical analysis?

Activity path

_________ includes managerial time, travel, and other variable costs associated with interacting with a supplier.

Administrative Cost

How is weeks of supply calculated?

By dividing the average aggregate inventory value by sales per week at cost

A project manager has enough information to estimate the probability that an activity will be completed on schedule with all of the following EXCEPT which one?

Completion Time

_________ is a fundamental purpose of supply chain design for manufacturers.

Controlling inventory by managing the flow of materials

________ is a supplier relation in which the buyer and seller are partners, each helping the other as much as possible.

Cooperative orientation

If a project has exactly one critical path, which one of the following statements is TRUE?

Crashing an activity on the critical path will always result in a reduced total project completion time.

If other paths in a network have small amounts of slack, one of those other paths can become the __________.

Critical path

The typical objective for a company is to finish a project as early as possible as determined by the __________.

Critical path

What does CPM stand for?

Critical path method

_________ is the packing of products on incoming shipments so that they can be easily sorted at intermediate warehouses for outgoing shipments based on their final destinations.

Cross-docking

Which one of the nested processes facilitates the collaboration of a supplier and its customers for the purpose of forecasting customer requirements for a service or product?

Customer demand planning process

Which of the following is LEAST likely associated with lean systems in a company?

Decreased performance of service facilities

What is the first step in constructing a project network?

Defining the work breakdown structure

Which of the following is best suited for a responsive supply chain design?

Demand is unpredictable and forecast errors are high.

__________ is the first stage of the new service or product development process, and it links the creation of new services or products to the corporate strategy of the firm and defines the requirements for the firm's supply chain.

Design

The two steps of constructing a project network include: 1) defining the work breakdown structure; and 2) __________.

Diagramming the network

_________ are costs that are specifically related to project activities.

Direct costs

Which of the following is an example of a possible external market pressure?

Domestic instability resulting in higher labor costs

These pressures include which of the following?

Dynamic sales volume

What is the first step in value stream mapping?

Focus on one product family for which mapping can be done.

__________ is the process of acquiring more channels of distribution, such as distribution centers (warehouses) and retail stores, or even business customers.

Forward Integration

Which of the following is the cost associated with transporting the product or the equipment and personnel who will perform the service?

Freight costs

The matrix structure is a compromise between the __________ and pure project structures.

Functional

When a project is housed in a specific department and personnel from other areas must be negotiated, the organization is said to use a __________ organizational structure.

Functional

_______ is an option for achieving line-flow layouts with low volume processes.

GT

Which of the following is NOT considered a type of organizational structure?

Gantt

The latest start schedule, critical path, and activities can be undertaken simultaneously as part of a __________.

Gantt chart

Which of the following is an advantage the Internet provides for a firm's order placement process?

Global access

A precedence relationship indicates that one activity cannot start until a preceding activity __________.

Has been completed

Which of the following is NOT one of the goals of a lean system in manufacturing?

Have a wide variety of suppliers on which to rely.

Activities on the critical path of a specific project __________.

Have zero slack

_________ is a supply chain risk management strategy used in limiting or offsetting the probability of loss from fluctuations in the prices of commodities or currencies.

Hedging

_________ include administration, depreciation, and financial expenses.

Indirect costs

Which of the following changes would decrease the likelihood of the bullwhip effect?

Instituting a policy of no discounts or promotions

Which supply chain design option category includes the mitigation of supply chain dynamics and risk?

Integration

Which of the following describes the analysis stage of the product development process?

Involves a critical review of the new offering and how it will be produced to make sure that it fits the corporate strategy, is compatible with regulatory standards, presents an acceptable market risk, and satisfies the needs of the intended customers

Which of the following describes group technology (GT)?

It creates cells that are not limited to one worker.

What is EDI?

It enables the transmission of routine business documents from computer to computer over telephone or direct leased lines.

_________ is the stopping of a process when something goes wrong and fixing the problems on the line itself.

Jidoka

_______ is NOT a necessary component to achieve the full potential of the lean systems concept for a manufacturer.

Kanban

_______ refers to cards used to control the flow of production through a factory.

Kanban

________ is the Japanese word meaning "card" or "visible record."

Kanban

Which of the following is a type waste?

Motion

Which of the following describes return on assets?

Net income divided by total assets

Which of the following is NOT an advantage the Internet provides for a firm's order placement process?

No price changes

These pressures include all EXCEPT which of the following?

Offshoring

Which of the following is NOT representative of OWMM?

One dedicated machine for each worker

Which of the following is NOT a type of information collected by an effective tracking system?

Optimistic and pessimistic times

__________ is paying suppliers and distributors to perform processes and provide needed services and materials.

Outsouring

Which of the following is a network planning method created for the U.S. Navy?

PERT

Each sequence of activities between a project's start and finish is a(n) __________.

Path

What is outsourcing?

Paying suppliers and distributors to perform processes and provide needed services and materials

_________ is a concept whereby some of the final activities in the provision of a service or product are delayed until the orders are received.

Postponement

A __________ determines a sequence for undertaking activities.

Precedence relationship

The practice of selecting suppliers and giving them significant responsibility for the design of certain components or systems of the product is called

Presourcing

Which of the following describes the push method?

Produces the item before the customer orders it

________ is likely part of a lean system in an organization.

Product quality

Which of the following has a unique outcome for a specific allocation of resources?

Project

Which of the following options does NOT reduce the risk for operational disruptions and also minimizes the bullwhip effect in supply chains?

RFID (radio frequency identification)

Project managers have several options to alleviate resource problems: resource leveling, resource allocation, and __________.

Resource acquisition

Which of the following is LEAST likely to be an option that a project manager would use to alleviate resource problems?

Resource breakdown

__________ is net income divided by total assets.

Return on assets

A good tracking system will monitor open issues, risks, and __________.

Schedule status

Which of the following is NOT one of the categories of project risk?

Schedule status

Which of the following describes a just-in-time (JIT) system?

Simple

_______ means having setup times of fewer than 10 minutes.

Single-digit setup

Coupling lean systems with __________ would likely reduce variations in output.

Statistical process control (SPC)

Which of the following is one of the categories by which project risk can be assessed?

Strategic Fit

Which of the following is an external disruption?

Supply chain complexity

________ is the process of designing a firm's supply chain to meet the competitive priorities of the firm's operations strategy.

Supply chain design

Controlling inventory by managing the flow of materials is a fundamental purpose of which of the following?

Supply chain design for manufacturers

_______ is the effective coordination of supply chain processes through the seamless flow of information up and down the supply chain.

Supply chain integration

_________ is the synchronization of a firm's processes with those of its suppliers and customers to match the flow of materials, services, and information with demand.

Supply chain management

_________ is the practice of managing the risk of any factor or event that can materially disrupt a supply chain, whether within a single firm or across multiple firms.

Supply chain risk management

Which of the following is/are NOT a competitive advantage of a mass customization strategy?

Sustainability options

_________ is the total average value of all items held in inventory by a firm.

The average aggregate inventory value

Which of the following describes freight cost?

The cost associated with transporting the product or the equipment and personnel who will perform the service

Supply chain integration is __________.

The effective coordination of supply chain processes through the seamless flow of information up and down the supply chain

__________ is calculated by dividing the average aggregate inventory value by sales per week at cost.

Weeks of supply

_________ is money used to finance ongoing operations.

Working capital

_________ is related to the critical path of a project.

Zero slack

Kaizen is __________.

a continuous improvement approach to process improvement

Activities along the critical path

always have zero slack

The supply chain management department of a major manufacturer pondered a particularly weighty make or buy decision for weeks, ultimately deciding to make, rather than buy. This decision resulted in increased:

backward integration.

The delay of any _____________ activity would delay a project's completion by an equal amount of time.

critical path

The Project Manager for the installation of new equipment in a plant is likely to do all of the following EXCEPT:

delegate the responsibility for making tough decisions to the members of the project team

An efficient supply chain should be preferred when

demand is highly predictable.

A member of a project team that is implementing a new credit card payment process at a bank has direct responsibility to do all of the following EXCEPT:

ensure that the project has appropriate resources for the job to be completed

The goal of single-digit setup is __________.

having setup times of less than 10 minutes

Some manufacturers and service providers want to measure the performance of the supply chain by the percentage of on-time deliveries. The main reason for this measure is:

increased on-time delivery increases revenue by inducing customers to buy more products from the firm.

Which of the following does a firm have the most control over?

information errors

The bullwhip effect is characterized by:

ordering patterns that experience increasing variance as you proceed upstream in the chain.

A somewhat successful computer manufacturer makes a generic computer in five exciting colors. Once orders are received, the computer guts are encased in the customer's choice of colored case at the factory. This approach to production is known as:

postponement.

A(n) __________ is an interrelated set of activities with a clear starting point and ending point.

project

The intention of coupling lean systems and statistical process control (SPC) is to __________.

reduce variations in output

The project's objective statement should contain:

scope, time frame, and allocated resources.

A responsive supply chain typically has:

supply chain partners that emphasize volume flexibility.

Which of the following best describes the critical path of a project?

the sequence of activities between a project's start and finish that takes the longest time to complete

The practice whereby a manufacturer has inventories of materials on consignment from its suppliers falls under the scope of

vendor managed inventory

Weeks of inventory and inventory turns are reflected in:

working capital.

Which of the following describes an exchange?

An electronic marketplace where buying firms and selling firms come together to do business

Which of the following is a design feature of responsive supply chains?

An emphasis on variety

_________ is an electronic marketplace where buying firms and selling firms come together to do business.

An exchange

Which of the following is an essential aspect of supplies being delivered from suppliers in a lean system?

Arrivals that are on schedule

_________ is a firm's movement upstream toward the sources of raw materials, parts, and services through acquisitions.

Backward integration

Which of the following is an operating rule for a single-card kanban system?

Each container must have a card.

Which of the following is NOT an operating rule for a single-card kanban system?

Each container should contain a different number of good parts.

__________ enables the transmission of routine business documents from computer to computer over telephone or direct leased lines.

Electronic data interchange (EDI)

Which of the following is a competitive advantage of a mass customization strategy?

Eliminating finished goods inventory

Domestic instability resulting in higher labor costs is an example of which kind of supply chain pressure?

External markets

Which of the following describes the customer demand planning process?

Facilitates the collaboration of a supplier and its customers for the purpose of forecasting customer requirements for a service or product

The __________ role must often resolve conflicts between individuals or departments to ensure a project moves ahead.

Facilitator

Which of the following is NOT an indirect cost of a project?

Labor

Which of the following is LEAST necessary to achieve the full potential of a lean systems concept?

Large inventories

Which if the following is FALSE about lots in lean systems?

Lean systems use lot sizes that are as large as possible.

_________ is one of the three priorities of continuous improvement.

Maintaining low inventories

Under which of the following common supply chain designs is the product built to a sales forecast and sold to customers from a finished goods stock?

Make-to-stock