Textbook questions MGMT 4000 exaam #3

Which of the following is/are components of total costs in a fixed-quantity inventory system?

-Annual purchase costs -Annual holding costs -Annual ordering costs

Lean supply chains design principles can be divided into three major categories. Which of the following components are part of lean supply chains?

-Collaboration with suppliers. -Specialized plants. -Building a lean supply chain.

The ISO 9000 standards are based on a number of quality management principles. These principles focus on what related to the following areas in the firm? Check all that apply

-Continual improvement -Leadership -Customer focus -Process approach -Involvement of people

Lean production uses a pull system. To enable this pull process to work smoothly, lean production demands what? Check all that apply.

-High levels of quality at each stage of the process -Strong vendor relations -Fairly predictable demand for the end product

An inventory control system is responsible for which of the following?

-Ordering goods -Keeping track of what has been ordered -Receiving goods -Timing the order placement

In synchronous manufacturing the process batch size and transfer batch size are varied. What does this accomplish? Check all that apply.

-Reduce work in process -Reduce lead times

Successful implementation of Six Sigma is based on using what? Check all that apply.

-Sound personnel practices -Technical methodologies

For what is a fishbone diagram used?

-To map the key problems -To provide an initial hypothesis

Which of the following groups are represented in a typical stakeholder analysis?

-employees -suppliers -the community

Lean production requires a stable schedule that is accomplished by which of the following?

-level scheduling -freeze windows

A fixed-time period model is also called the Blank______. (Check all that apply)

-periodic system -periodic review system -P-model -fixed-order period model

In cycle counting, the accuracy level recommended by experts for "A" items is +/- ______.

0.2%

"A" items account for approximately Blank______% of the items in inventory.

15%

The cost of quality has been estimated at what percentage of every sales dollar?

15-20%

It is generally believed that the correct cost for a well-run quality management program should be under what amount?

2.5%

What is the minimum number of samples suggested for control charts with variable measurement?

25

"B" items account for approximately ______ % of items in inventory

35%

For R-charts, the typical sample size is __________

4-5

ROI:

A relative measure based on investment

CF:

A survival measurement.

Rank the following ABC categories in terms of dollar value of items in inventory starting from the highest percentage to the lowest percentage.

A, B, C

The Pareto principle is best applied to which of the following inventory systems?

ABC classification

If the lots in the sampling plan contain no more than a specified level of defectives, it is termed which of the following?

AQL

Net profit:

An absolute measurement in dollars.

Which of the following is NOT a reason to use inventory as a safeguard against raw material delivery time variation?

As a supplement to vendor-managed inventory programs.

When you remove the number of parts used in production to adjust on-hand inventory balances, you are conducting a

Backflush

Lean concepts can be applied to all but which of the following?

Backhaul maximization

When the product or service can have more than one defect per unit, which of the following is the most appropriate chart?

C-chart

A process batch __________

Cannot be equal to a transfer batch

The ______ _______ is used to measure how well our process is able to produce relative to design specifications

Capability index

Quality at the source is often discussed in the context of ______ quality.

Conformance

Which quality term refers to the degree to which the product or service design specifications are met?

Conformance

A decision tree is used where in the operations consulting tool kit flow?

Cost impact and payoff analysis

_____ ______ is a physical inventory-taking technique in which inventory is counted frequently, often times on a time-based schedule. (Enter only one word per blank.)

Cycle counting

Due to the nature of service production and consumption, __________ scheduling is necessary for operating a service business.

Demand-pull

Required quantities of a ______-_______ item are simply computed, based on the number needed in each higher-level item in which it is used.

Dependent demand

What term refers to the inherent value of the product in the marketplace?

Design quality

Where does the authority to produce come from in a kanban pull system?

Downstream operations

According to Goldratt's Theory of Constraints, we want to align every other part of the system to support the constraints even if this reduces the _______ of non constrained resources.

Efficiency

Central to Shingo's approach is the difference between _____ and _____.

Errors ; defects

Cost of quality:

Expenditures related to achieving product or service quality, such as the costs of prevention, appraisal, internal failure, and external failure.

T/F? According to the theory of constraints, throughput is the rate at which product is passed through the manufacturing system.

False

T/F? Customer surveys are usually performed by operations consultants.

False

T/F? Waste reduction refers only to the elimination of non value-adding activities that are part of the value stream.

False

T/F? When backflushing parts, the actual number of parts used in production must be tracked.

False

Which of the following is not a type of inspection in Shingo's approach?

Final

XYZ Company uses an inventory model where the amount requisitioned is fixed and ordering is triggered by inventory dropping to a specified level. What type of inventory system is XYZ using?

Fixed-order quantity

For this model, inventory for the item is monitored until it gets down to a level where the risk of stocking out is great enough that we are compelled to order.

Fixed-order quantity model

Which model is more likely to have a stock out?

Fixed-time period

For this model, the item is ordered at certain intervals of time, for example, every Friday morning.

Fixed-time period model

Which of the following tools can be used in the Define step of the DMAIC cycle?

Flow charts

One of the project management techniques a consulting firm could use to plan and monitor an individual project is called a _____ chart

Gantt

The Japanese word ______ translates to "smoothing" or "leveling."

Heijunka

Campbell's Soup makes product for Kroger and other grocery stores based on sales to the final consumer. This inventory management environment is characterized as ______ demand.

Independent

Which of the following is the cost of quality classification for costs such as scrap, rework, or repair?

Internal failure costs

The stock of any item or resource used in an organization is called?

Inventory

______ is the stock of any item or resource used in an organization.

Inventory

Lowering _______ requires a high level of quality because processes need to be predictable since extra _______ is not available.

Inventory ; inventory

An _______ ______ system provides the organizational structure and the operating policies for maintaining and controlling goods to be stocked.

Inventory control

______ ______ is defined as the on-hand plus on-order minus backordered quantities.

Inventory position

A key financial ratio directly tied to inventory is called?

Inventory turns

JIT still requires work-in-process when used with ______ so that there is "something to pull."

Kanbans

Where a product is involved, who is responsible for ensuring that quality specifications are met?

Manufacturing management

Plant tours/audits can be classified as ______ and______ facility tours/audits.

Manufacturing; service

A Pareto chart as part of a Six Sigma quality improvement process might be found in which DMAIC category?

Measure

Lean requires a ______ of work-in-process inventory.

Minimum

The single-period problem is also known as the _____ problem.

Newsperson

The managerial and clerical costs to prepare purchase or production orders are called:

Ordering costs

Which analytical tool of Six Sigma breaks down a problem into the relative contributions of its components?

Pareto chart

Fixed-time ______ models tend to have greater safety stock than fixed-order quantity models because the inventory is not tracked as closely.

Period

In a fixed-time _______ inventory model, the interval of time between orders is fixed and order quantity varies.

Period

Because of favorable pricing in the short-term, a company is looking at ordering a larger-than-needed optimal quantity of an item, and keeping the excess in inventory. Which model is the company likely performing to arrive at this decision?

Price break

Which of the following is the probability associated with rejecting a high-quality lot is termed?

Producers risk

A fixed-order _______ model uses a reorder point, R, to trigger an order of an optimum amount of product, labeled Q.

Quantity

In Europe, there is strong motivation to choose ISO 9000-certified suppliers. Why?

Reduced liability

Because this simple model assumes constant demand and lead time, neither ______ stock nor ______ cost is necessary.

Safety ; stockout

Which of the following is the first stage in the operations consulting process?

Sales and proposal development

A price-break model suggests that the ______ price of an item varies with order _____

Selling ; size

If a company is trying to find the optimal amount of inventory to produce for a single event, it is likely to deploy which type of inventory model?

Single period

This model is used when we are making a one-time purchase of an item.

Single-period model

The normal variation about a process mean or average is called?

Statistical fluctuation

What is the portion of the EOQ equation represents total annual cost?

TC

What is Qopt?

The order quantity that minimizes total annual cost.

Which of the following is a reason for keeping a supply of inventory?

To meet variation in product demand

Which of the following is not a cost associated with inventory management?

Transportation

T/F? If the cost to change from producing one product to producing another were zero, the lot size would be very small.

True

T/F? Manufacturing performance measurements tend to be more quantitative than marketing performance measurements.

True

T/F? One SPC tool used in total quality management is the Pareto chart.

True

T/F?Lean production uses a pull system for production.

True

A rule of thumb when setting up a p-chart is to make the sample large enough to expect to count the attribute______ in each sample.

Twice

Measuring the torque and horsepower of a motor is known as sampling by_____ .

Variables

Computer inventory systems are often programmed to produce a cycle count notice in which of the following case?

When the record shows a positive balance but a backorder was written

The two critical components of ALL reorder point calculation scenarios are:

average daily demand and lead time in days.

When the mean and standard deviation of the process are operating such that the upper and lower control limits are acceptable relative to the upper and lower specification limits, we say the process is

capable

The purpose of classifying items into groups is to establish the appropriate degree of over each item.

control

The "dollar days" inventory measurement can be used in purchasing to __________

discourage placing large orders that on the surface appear to take advantage of quantity discounts

Inventory classifications of A, B, and C are based on:

dollar volume or frequency of use.

With regards to Goldratt's rules of production scheduling: Do not balance capacity—balance the ______

flow

A synchronous manufacturing flow uses _____ scheduling

forward

______ _______ projects require a great deal of experience but little in the way of innovation.

gray hair

Inventory that is carried (whether work-in-process or finished goods) is valued only at the cost of the ______ it contains.

materials

With MRP, when workcenters are ______ , either the master production schedule must be adjusted or enough slack capacity must be left unscheduled in the system so that work can be smoothed at the local level

overloaded

Consulting firms are typically organized as __________

partnerships

Each workstation is part of a _____ line, whether or not a physical line actually exists.

production

Service firms synchronize _______ with _______ .

production ; demand

In companies using fixed-order quantity inventory systems, a consistent inventory level is used as a trigger to order more product. This inventory level is called:

reorder point

When manufacturing is truly synchronized, its emphasis what?

total system performance

An opportunity flow diagram is _________

used to separate value-added from non-value-added steps in a process.