Supply Chain Exam 3 chp 8
1) In the lean systems approach, as a system improves, it should have ________ inventory on hand.
A) More B) The same amount of C) Less D) Twice the amount of Answer: C Explanation: One of the prime reasons for the lean approach is to reduce inventory. Difficulty: 1 Easy
31) Kaizen events are most effective when applied to problems involving which of the following elements? A) Processes B) Products C) Customers D) Measures
Answer: A Explanation: A Kaizen event is a short-term project aimed at improving an existing process or an activity within a process.
24) Which of the following is NOT one of the principles associated with lean/just-in-time production? A) Encourage use of unique components. B) Specify value for each specific product. C) Pursue perfection. D) Let the customer pull value from the producer.
Answer: A Explanation: Encouraging use of unique components is not one of the guiding principles of lean/JIT production.
18) Which of the following most accurately describes the role of quality in a lean/just-in-time manufacturing environment? A) High quality is an important waste reduction tool. Reducing defects reduces wasted material and capacity, and reduces the need for safety stocks. B) Quality has little to do with JIT. JIT is primarily a scheduling and inventory control tool. C) The important thing is to screen the defects out of incoming components and raw materials. If this is done, the production process can carry on without much concern for quality. D) Because everything is being done just in time, there is no time to worry about quality during the production process. Instead, we rely on screening out defects during finished goods inspection.
Answer: A Explanation: High quality contributes to less waste and lower variance.
15) Johnson Corp. has so strongly embraced the lean philosophy that it wants to apply the approach to all processes in the organization. Doing this may actually have the most severe negative impact on: A) Radical product innovation. B) Incremental product innovation. C) TAKT time. D) All of these.
Answer: A Explanation: Lean systems thinking tries to eliminate slack and complexity, which may be needed in radical product innovation. Lean design approaches are most compatible with incremental product innovation.
17) Misuse of automation is a root cause of which of the following types of waste? A) Overproduction B) Process C) Motion D) Rework
Answer: A Explanation: Misuse of automation is one of the root causes of both overproduction and waiting types of waste.
6) We observe a man working on a setup. During the process of setting up, the man positions the die at a first position. He then runs through a few pieces to check whether or not they are acceptable. He then repositions the die and repeats the process. What we have observed is which of the following forms of waste? A) Processing waste B) Waste from product defects C) Inventory waste D) Waste of motion
Answer: A Explanation: Sorting, testing, and inspection are symptoms of processing waste.
7) Most of the tools and techniques used in lean systems seek to: A) Reduce variability from the system. B) Reduce the operator's discretion. C) Improve product quality. D) None of these.
Answer: A Explanation: Standardization, reduction of variability, is fundamental to improvement. Most tools in lean seek this objective. Workers are empowered to do this. The focus is on value, not just product quality.
39) What is the defining objective of lean? A) Eliminating waste and its causes B) Reducing process variance C) Producing a product that a customer will want D) Reducing cost
Answer: A Explanation: The elimination of waste and its causes is the defining objective of lean.
11) In our accounting department, one of the actions taken by a clerk has been to identify the most frequently used forms and to put them in an area where they can be easily accessed. The other less frequently used forms have been tagged and put in their own separate area. This action likely occurred from the use of which lean tool? A) A 5-S program B) Kanban scheduling C) Jidoka D) Poka-yoke
Answer: A Explanation: The example suggests that the clerk sorted and straightened the various forms, which is part of a 5-S program.
23) Which of the following is NOT associated with quality at the source? A) Total productive maintenance B) Jidoka C) Stop-and-fix systems D) Andons (trouble lights)
Answer: A Explanation: The techniques associated with quality at the source do not include total productive maintenance.
21) The purpose of the kanban card is to: A) Be a signal from the user authorizing the maker to start producing the required parts. B) Keep track of defective products. C) Inform the maker of the exact specification of the required parts. D) Keep track of the total labor hours spent on a finished product.
Answer: A Explanation: The word "kanban" is described in the text as the Japanese term for "signal." Its purpose is to authorize manufacture of the required parts.
20) McGreen Burger Shop sells about two burgers per minute. Although the cook can cook up to 10 burgers per minute, he starts to cook another burger only after the salesperson removes a burger from the ramp. The ramp is large enough to hold only five burgers and keep them warm until a sale is made. This is an example of a: A) Pull system. B) Push system. C) Group technology. D) Poka-yoke.
Answer: A Explanation: This describes a pull system (as in the case of a kanban)—the other options are not appropriate.
28) We have a situation where we have many different processes; high quantities are required to deliver the product's value both on the factory floor and in the customer's use. Which of the following categories of waste in product design have we encountered in this situation? A) Complexity B) Precision C) Danger D) Sensitivity
Answer: A Explanation: This is a straight definition-based question. The description provided directly corresponds to the definition of complexity as provided in Table 8-6.
35) An initial step in implementing lean is: A) Lower the break-even point so smaller quantities can be economically produced. B) Outsource any non-core activity that can be done more efficiently by a supplier than by the firm. C) Increase the contribution margin of product being sold. D) Empower Kaizen teams to improve specific processes/activities.
Answer: B Explanation: An initial step in implementing lean is to outsource any activity that a supplier can do better than the firm and that is not a core competency of the firm.
5) John Jones is a plant manager. He believes his plant is guilty of "waste of overproduction." Which of the following symptoms might he have observed that led to this belief? A) Idle equipment. B) Excess inventory. C) High customer returns of products. D) All of these.
Answer: B Explanation: Excess inventory is one of the symptoms of waste of overproduction. The other items are indicators of other types of waste.
22) Footprinting is an example of which of the following elements of the 5-S program? A) Seiri/Sort/Clear out B) Seiton/Straighten/Configure C) Seiso/Scrub/Clean and check D) Seiketsu/Systematize/Confirm
Answer: B Explanation: In the 5-S program, footprinting is making a painted outline of each item to ensure that there is "a place for everything" used in an operation or a task.
19) Which of the following would you NOT expect to find in a company attempting to implement lean/just-in-time production? A) Emphasis on flexible, cross-trained workers B) Inspections after each piece is produced C) Frequent changeovers from one product to another D) Emphasis on preventive maintenance for equipment
Answer: B Explanation: Inspections after each piece is produced violates the Lean Systems Objectives of building with perfect quality and with no waste of labor, materials or equipment.
2) As lean systems thinking is implemented, the amount of training that employees receive: A) Tends to be about the same as with other manufacturing philosophies. B) Tends to increase. C) Tends to be reduced dramatically, replaced instead by continuous improvement. D) Is focused exclusively on statistical process control.
Answer: B Explanation: Lean systems rely on well-trained workers for implementation. Employees must be given the training, tools, and authority to make continuous process improvements.
30) The use of Lean and Lean Systems is most supportive of which of the following competitive priorities, as described in Chapter 2? A) Quality B) Cost C) Timeliness D) Innovation
Answer: B Explanation: The use of lean and lean systems operates favourably on cost, quality, timeliness, and innovation—each of which drives operations to significantly reduce cost, which is the ultimate competitive priority supported by lean and lean systems.
26) Which of the following lean principles best communicates the notion of demand synchronization? A) Produce only the products that the customer wants. B) Build with perfect quality. C) Build only as quickly as customers want them. D) Build only with features that the customers want and no others.
Answer: C Explanation: "Build only as quickly as customers want them" articulates the notion of demand synchronization.
3) When lean systems are implemented: A) Variable costs tend to increase, while fixed costs tend to decrease. B) Fixed costs tend to increase, while variable costs tend to decrease. C) Fixed and variable costs both tend to decrease. D) Contribution margin tends to decrease.
Answer: C Explanation: A benefit of lean systems is that both fixed and variable costs tend to decrease.
10) Zanadu Corp. produces several different colors of a product on a single production line. It used to take several hours to switch colors, but now Zanadu has found a way to prepare for changing colors in a few minutes. This was most likely accomplished by: A) TAKT time flow balancing. B) Implementing andon lights. C) Converting internal to external setups. D) Converting external to internal setups.
Answer: C Explanation: A key step in faster changeover is converting internal to external setups.
38) A lean systems culture is one that: A) Focuses on maximizing output while minimizing input. B) Produces mass-market products with wide appeal or applicability. C) Places high value on respect for the people in the system. D) Values accountability for errors and requires conformance.
Answer: C Explanation: A lean systems culture places high value on respect for the people in the system.
4) In a lean system, waste is any action that A) Costs money. B) Could be done by an outside supplier. C) Does not generate value. D) Must be performed manually.
Answer: C Explanation: Because the purpose is to create value for the customer, waste is any action that does not generate value.
14) Applying lean systems to supply chain relationships has which of the following risks? A) It encourages companies to buy at the lowest unit price. B) It encourages firms in the supply chain to hold extra inventory to protect themselves from failure. C) It makes the supply chain more vulnerable to performance breakdowns. D) All of these.
Answer: C Explanation: Lean systems eliminate buffers (like inventory, lead times, excess capacity), and therefore the supply chain becomes more vulnerable to potential performance problems.
32) Lean design strives to achieve which of the following objectives? A) Design products at the lowest cost B) Design products that can be built with existing equipment C) Design products that exactly meet customers' needs D) Design products with the fewest number of options
Answer: C Explanation: One of lean design's three major goals is to design products that exactly meet the customer's needs.
12) A standard electrical plug fits into an outlet in only one way because one of the two prongs is larger than the other. This ensures that people will insert the plug properly to create a grounded circuit. This is an example of: A) Cause-and-effect analysis. B) Kanban. C) Poka-yoke. D) A benefit of Pareto analysis.
Answer: C Explanation: Poka-yoke refers to design that reduces potential errors, which the electrical plug design accomplishes.
33) What is the possible impact of lean systems, if taken to its extreme, on supply chain risk? A) No impact - they are not related B) Positive impact - lean reduces risk C) Negative impact - lean increases risk D) Yet to be determined - the data is not yet in
Answer: C Explanation: The lean supply chain produces benefits, yet it can also open up risks.
27) Which of the following is an important belief found in lean cultures? A) Inventory is to be reduced. B) Cost must be reduced. C) Management must be done through the use of appropriate tools and procedures. D) Waste is a symptom.
Answer: D Explanation: As discussed in the section dealing with lean culture, the only belief that is central to the lean culture is the notion that waste is a symptom. Consequently, it should not be attacked directly. Rather, it should be studied to identify the underlying root causes, and management should then attack these root causes.
16) Which two of the following areas does lean/just-in-time production focus its attention on? I. Cost II. Quality III. Variance IV. Waste A) I and III B) II and IV C) I and II D) III and IV
Answer: D Explanation: As pointed out in the text, the key focal points for lean are variance and waste.
9) A production kanban authorizes a worker to: A) Add an empty bin. B) Withdraw a standard lot of a specific item. C) Withdraw any item he feels is needed. D) Replenish an empty bin.
Answer: D Explanation: Authorizing a worker to replenish an empty bin is the definition of a production kanban.
25) Taichi Ohno, the founder of lean/just-in-time, when he came to America in the 1950s was most impressed with which of the following American developments? A) The assembly line B) Ford's River Rouge assembly plant C) The productivity of American workers D) The American supermarket
Answer: D Explanation: In the American supermarket, Ohno found his vision of the ideal operating system.
29) In which operational setting has lean/just-in-time experienced the lowest levels of acceptance/implementation? A) Manufacturing B) Services C) Across the supply chain D) Turbulent business settings
Answer: D Explanation: In turbulent business environments, lean/just-in-time has found very limited application (Table 8-4).
8) Achieving the goal of producing at the output rate that matches the rate of customer demand is the goal of: A) Jidoka. B) Poka-yoke. C) Total productive maintenance. D) TAKT time flow balancing.
Answer: D Explanation: TAKT Time flow balancing is a lean scheduling technique that aims to synchronize the output rate with the rate of consumer demand.
34) Which phrase/word best captures what lean is? A) A set of effective, well defined tools designed to reduce waste B) A quantitative methodology for attacking variance C) A procedure to be used within operation management and supply chain systems D) A corporate philosophy
Answer: D Explanation: The lean systems approach is a philosophy of operations management used in various activities of the enterprise.
37) The goal of total productive maintenance is: A) To fix equipment breakdowns before they happen. B) Rigorous equipment design and upkeep. C) Disciplined adherence to operating procedures. D) Zero unplanned downtime.
Answer: D Explanation: Total productive maintenance (TPM) works to achieve the ambitious goal of zero unplanned downtime.
13) Lean systems applications have found the most acceptance and adoption in: A) Service firms. B) Entire supply chains. C) Design activities. D) Manufacturing firms.
Answer: D Explanation: While lean systems have been employed in all of these environments, most application has occurred in manufacturing.
36) Responsibility for a Kaizen event is in the hands of: A) A manufacturing/industrial engineer B) A member of top management C) A facilitator D) An employee of the process being studied E) None of these
Answer: E Explanation: Responsibility for a Kaizen event is placed in the hands of a cross-functional team.
