SCM 486- Chapter 6

If suppliers fail to provide materials of _____________ on a regular basis, production slow-downs and stoppages will occur regularly.

adequate quality

Kanban is the Japanese word for _____________.

card

A crucial issue to be considered is the relevance of _________ in the successful implementation of the just-in-time system in a country.

culture

Traditionally, long and infrequent production runs have in the past been considered beneficial for the overall productivity of a manufacturing organization. However, long production runs usually lead to ____________ of raw-material and finished-goods inventories.

high levels

Very often, resistance is encountered because the employees are required to change their _____________, or because they interpret the new system as being _____________ jobs

long-standing work habits / a threat to their

Supplier performance can be measured _______ accurately under the JIT purchasing approach compared to the traditional one.

more

A kanban system is referred to as a __________ because the kanban is used to ______ parts to the next production stage only when they are needed.

pull system / pull

In a ____________, removing an end item (or a fixed lot of end items) triggers the order release, by which the flow of materials or components is initiated. In contrast, ____________ allow for the production or material flow in anticipation of future demand.

pull system / push systems

Reductions in physical inventory also will have a favorable impact on all EXCEPT:

quality

Consequently, ______ of supply is a critical consideration in the selection of JIT suppliers

reliability

Lower levels of __________ contribute significantly to reduced working capital requirements for the firm.

safety stock

Because of ____________ and frequent delivery schedules, suppliers are in a position to receive quick feedback regarding any potential manufacturing or design problems. Also, manufacturing is in a position to implement engineering changes quicker because of the _________ inventory levels.

smaller lot sizes / reduced

The _________ see little incentive in adopting the JIT approach when the primary benefits of the program go to the buyer.

suppliers

The function of purchasing is to provide and ensure a firm with all EXCEPT:

unreasonable prices

Another critical issue for JIT manufacturers is the _____ in product demand

variability

According to Table 6.2 on pg 130, the expectations of JIT include some of the following

A long-term business agreement A fair return on supplier investment Adequate time for thorough planning Accurate demand functions All of the above**

The transition to ______ has not necessarily been a smooth one for many companies in the United States. But this does not imply that switching from a pure ____ system to a __________ system was a mistake for most companies.

JIT / MRP / JIT or hybrid

According to Figure 6.4 on Pg. 127, the JIT and Traditional approach focuses on which of the following:

Manufacturing lead time, Transportation lead time

There are two main types of kanban: __________ signals the need to produce more parts. Each kanban is physically attached to a container. __________ signals the need to withdraw parts from one work center and deliver them to the next work center.

Production kanban / Withdrawal kanban

_____ percent of the firms surveyed using JIT practices in the United States indicted that they had serious problems regarding lack of support from engineering.

Thirty-nine

Many firms report lack of support from __________ as being one of the major problems encountered in the implementation of JIT (Lean) purchasing.

Top Management

It is well documented that JIT reduces physical inventory level. Reductions in physical inventory will also have a favorable impact on: Reduced insurance premiums associated with the storage of inventory, Reduced inventory holding costs, Reduced labor cost in store rooms and material handing costs, Reduced clerical and administrative costs, Reduced waste from the manufacturing process, Reduced obsolescence costs, Reduced deprecation of handling and storage equipment, Each of the cost savings will result in a leaner more profitable operation.

True

JIT is also referred to as a lean production.

True

Rule One (1) of the dual card kanban is: No parts are made unless there is a production kanban to authorize production. If no production kanban are in the in box at a work center, the process remains idle, and workers perform other assigned activities. This rule enforces the pull nature of the process control.

True

The benefits of implementing a JIT system impact all entities involved in supply chain management.

True

The level of employee and supplier commitment to the JIT concept is not as uniform and high as it is in Japan

True

The purchasing function in an organization must assume the responsibility of calling on top management regularly for leadership and support.

True

One of the most crucial elements of the ____________ system is small lot sizes.

Just-in-time

Toyota's manufacturing system used ________ to control their production system?

Kanban Cards

Which of the following practices are not considered essential for a comprehensive JIT implementation: Uniform production (also known as heijunka) Quick set times Large lot sizes Short lead times

Large lot sizes