Ch. 14 and 15

In Lean process design what is the ideal lot size in numbers of units? Multiple choice question. As large as possible 100 1,000 1 10

1

For manufacturing companies approximately what percentage of the cost of finished goods comes from purchased parts and materials? Multiple choice question. 70% 80% 60% 40% 50%

60%

For wholesalers and retailers what approximate percentage of the cost of finished goods comes from purchased inventories? Multiple choice question. 99% 90% 60% 80%

90%

Select the best definition of Lean Operations. Multiple choice question. A flexible system of operations using fewer resources than a traditional system Operations which do not produce enough to cover overhead costs and must be changed A system of operations on a limited budget with the minimum number of employees

A flexible system of operations using fewer resources than a traditional system

Select the best definition of Lean Operations. Multiple choice question. A system of operations on a limited budget with the minimum number of employees Operations which do not produce enough to cover overhead costs and must be changed A flexible system of operations using fewer resources than a traditional system

A flexible system of operations using fewer resources than a traditional system

What is the most important organizational/cultural aspect without which Lean implementation is doomed? Multiple choice question. A low ratio of unionized labor to non-unionized labor in Buyer and Seller organizations A spirit of cooperation and mutual respect among management, employees, vendors Regular work day start and stop times with regimented break times A strong work ethic and a desire to produce at high quality levels

A spirit of cooperation and mutual respect among management, employees, vendors

Select the best definition of Value Stream Mapping. Multiple choice question. A map of transportation of inputs from the tier of suppliers to the factor to determine optimal routes and document cost (material and conveyance) A schematic diagram of the factory floor showing equipment, workstations, stock room supply lanes to examine production flow. A visual tool to systematically analyze the flow of materials and information involved in bringing a product or service to a customer

A visual tool to systematically analyze the flow of materials and information involved in bringing a product or service to a customer

Which functional group is responsible for handling payments to suppliers and must be notified promptly when goods are received. Multiple choice question. Design and engineering Operations Accounting Receiving

Accounting

Which functional group is responsible for handling payments to suppliers and must be notified promptly when goods are received. Multiple choice question. Receiving Operations Accounting Design and engineering

Accounting

In Lean terminology waste refers to what? Multiple choice question. Any aspect of a process which is non-value added By-products of production such as hazardous material, scrap, recyclables (paper, cardboard, styrofoam, etc.) Safety and buffer stock generated to avoid risk

Any aspect of a process which is non-value added

Which of the following is an example of "elimination of disruptions" for Lean services. (Select the best answer.) Multiple choice question. Avoid having workers who are servicing employees also answer telephones. Cross-train workers but try to avoid duplication of work while servicing customers. Standardize procedures as much as possible for the services offered.

Avoid having workers who are servicing employees also answer telephones.

What is the difference between centralized and decentralized purchasing? Multiple choice question. Centralized purchasing handles only small orders whereas decentralized purchasing places medium and large orders. Centralized purchasing handles all orders from one special department. Decentralized purchasing is done by each individual department separately. Centralized purchasing handles unique, one-time purchase orders and decentralized purchasing issues only blanket purchase orders.

Centralized purchasing handles all orders from one special department. Decentralized purchasing is done by each individual department separately.

What is the difference between centralized and decentralized purchasing? Multiple choice question. Centralized purchasing handles only small orders whereas decentralized purchasing places medium and large orders. Centralized purchasing handles unique, one-time purchase orders and decentralized purchasing issues only blanket purchase orders. Centralized purchasing handles all orders from one special department. Decentralized purchasing is done by each individual department separately.

Centralized purchasing handles all orders from one special department. Decentralized purchasing is done by each individual department separately.

Select all that apply What are some of the many ways that global supply chains are more complex than purely domestic supply chains? Multiple select question. Cultural and language differences Less need for buffer inventory Currency fluctuations Increased transportation costs and lead times

Cultural and language differences Currency fluctuations Increased transportation costs and lead times

A top management responsibility with respect to supply chains is the distribution strategy. What does this area of responsibility entail? Multiple choice question. Using nearby suppliers, reducing transportation time and cost, reducing inventory and the risk of disruptions, and increasing responsiveness Deciding whether or not to centralize or decentralize distribution and if a third party logistics company should be hired Assessing long-term capacity needs, including when and how much will be needed and the degree of flexibility to incorporate.

Deciding whether or not to centralize or decentralize distribution and if a third party logistics company should be hired

A top management strategic responsibility with respect to supply chains is network configuration. What does this area of responsibility entail? Multiple choice question. Aligning supply and distribution strategies with organizational strategy and deciding on the degree to which outsourcing will be employed Determining the number and location of suppliers, warehouses, production/operations facilities, and distribution centers Making decisions on new product and services selection and design

Determining the number and location of suppliers, warehouses, production/operations facilities, and distribution centers

Select all that apply Supply chains make use of various forms of facilities. Select all the examples of facilities from the list below. Multiple select question. Cargo containers Distribution centers Warehouses Factories Conveyor belts Retail outlets

Distribution centers Warehouses Factories Retail outlets

Which of the following is not a benefit of lean systems? Multiple choice question. Reduced cycle times Increased flexibility due to quick changeovers Economies of scale Reduced waste

Economies of scale

Select all that apply The success of a lean system relies heavily on which of the three items that follow? Multiple select question. Effective teamwork Leadership commitment Involvement of the community Achieving a lean thinking culture

Effective teamwork Leadership commitment Achieving a lean thinking culture

Select all that apply What are the different ways that companies use electronic technology in their commercial transactions for e-Business? (Select all that apply.) Multiple select question. Playing video games at work on break Electronic tracking of shipments Internet buying and selling Email communication internal and external

Electronic tracking of shipments Internet buying and selling Email communication internal and external

What is the purpose of an RFID tag? Multiple choice question. Documents the date and time an item was received into inventory Enables identification of goods in a supply chain using radio waves Indicates which outgoing items should be returned to shipping

Enables identification of goods in a supply chain using radio waves

What is the difference between Engineer-to-order and Make-to-order? Multiple choice question. Engineer-to-order requires more customization and Make-to-order is based upon a standard design with some changes. Make-to-order and Engineer-to-order are similar except Make-to-order takes longer due to manufacturing of parts. Make-to-order and Engineer-to-order are basically synonyms and there is no real difference.

Engineer-to-order requires more customization and Make-to-order is based upon a standard design with some changes.

Select all that apply What are the various functions of traffic management? Multiple select question. Ensure compliance with government regulations Monitor external factors which might cause potential delays Monitor network speed on business' computing infrastructure Direct the parking of employee cars Make decisions on shipping methods and times

Ensure compliance with government regulations Monitor external factors which might cause potential delays Make decisions on shipping methods and times

Select all that apply What elements should a company consider when developing a supply chain code of ethics? Multiple select question. Environmental issues Customer, supplier, and company behaviors Human relations and recruitment policies Sales and Marketing planning

Environmental issues Customer, supplier, and company behaviors Human relations and recruitment policies

Multiple Choice Question Select the best definition of vendor analysis. Multiple choice question. Evaluating the sources of supply in terms of price, quality, reputation and service giving a weighting factor for each criterion. Purchasing with input from operations will rank each supplier from best to worst on a periodic basis. Requiring each supplier to periodically fill out a survey rating themselves on factors such as quality, flexibility, and financial stability.

Evaluating the sources of supply in terms of price, quality, reputation and service giving a weighting factor for each criterion.

A company holding the major brand in the supply chain does not have to be concerned about negative media perceptions of unethical supplier practices because these suppliers are independently-owned businesses. True false question. True False

False Reason: Even though a supplier is independent legally responsible entities, any negative publicity traceable to the supplier will be associated with the buyer company if it is associated with the major company or brand.

Businesses can eliminate the need for resiliency by managing risk. True false question. True. False

False Reason: Firms can reduce the need for resiliency but not eliminate it completely.

Any production system can convert to a Pull system, regardless of volume, mix or product design. True false question. True False

False Reason: The statement is false. If level loading is not feasible, for example, a pull system will not be an appropriate manufacturing method due to uneven flow.

When converting to Lean, management must decide, "All or Nothing"--there is no incremental approach. True false question. True False

False Reason: The correct answer is False. One of the benefits of Lean is that conversion is sequential and be done incrementally.

Select all that apply What are the advantages of supplier partnerships? Multiple select question. Improved supplier cash flows Fewer suppliers Longer-term relationships Cooperation in planning

Fewer suppliers Longer-term relationships Cooperation in planning

Click and drag on elements in order Put the production control logistical steps in sequential order with 1 being the start of the process and 7 being the last. Drag and drop application.

From incoming vehicles to receiving from receiving to storage From storage to the point of use ( work center) From one work centre to the next or to temporary storage From the last operation to final storage From storage to packaging/shipping from shipping to outgoing vehicles

Select all that apply What are some of the benefits of cross-training workers, a personnel management method often used in a Lean organization? (Select all the reasons that apply.) Multiple select question. Increases bonus incentive opportunities Helps with system bottlenecks for line balancing purposes Makes workers get along better Adds flexibility when a co-worker is absent

Helps with system bottlenecks for line balancing purposes Adds flexibility when a co-worker is absent

Select all that apply How do small lot sizes support Lean process design? (Select all correct answers.) Multiple select question. Inspection and rework costs are less More flexibility to meet customer demand Work-in-process inventory is reduced They do not support it--larger lots are more efficient

Inspection and rework costs are less More flexibility to meet customer demand Work-in-process inventory is reduced

What is meant by the term bullwhip effect in inventory management? Multiple choice question. When the stock market is characterized as a "bull market" inventory managers should order more goods since demand will be higher than forecasts. Inventory oscillations become progressively larger looking backward through the supply chain. Inventory must be managed aggressively and driven forward, hence the term "bullwhip" effect.

Inventory oscillations become progressively larger looking backward through the supply chain.

Select all that apply Identify the true statements about Kanban. Multiple select question. It requires workers to signal when they have run out of parts at their assembly operation. It is an automated inventory control system which stores and locates parts with minimal human labor. It replaces material or parts only when needed, so as to avoid overproduction.

It requires workers to signal when they have run out of parts at their assembly operation. It replaces material or parts only when needed, so as to avoid overproduction.

Which of the following statements is true about Lean Manufacturing? Multiple choice question. Lean Manufacturing started in Japan at Toyota. Lean Manufacturing was coined by Shewhart at Bell Labs. Lean Manufacturing began in America and was exported to Japan. Lean Manufacturing started in California at GM.

Lean Manufacturing started in Japan at Toyota.

How is Lean different from Six Sigma? Multiple choice question. Lean focuses on eliminating waste, improving flow while Six Sigma reduces variability. There is no difference. They are basically the same techniques. Lean is used primarily in manufacturing sector and Six Sigma is used in the Service industries.

Lean focuses on eliminating waste, improving flow while Six Sigma reduces variability.

In order to make a JIT/Lean system flexible to handle a variety of products, what two things must be reduced? Multiple choice question. Long setup/changeover times and long lead times from vendors The number of employees on the production line and quality defects The time to train employees on a new product and excess inventories

Long setup/changeover times and long lead times from vendors

When converting to Lean/Just-in-time operations what are workers usually most concerned about? Multiple choice question. Loss of their job as production efficiency increases The efficiency of top management labor Shorter setup times for each production batch

Loss of their job as production efficiency increases

What are some of the benefits of Lean Operations? Multiple choice question. Longer cycle times and higher quality Longer lead times, higher profits, smaller facilities Lower costs, greater productivity, higher quality

Lower costs, greater productivity, higher quality

Select all that apply What are the advantages of centralized purchasing? Multiple select question. Lower transportation costs Better service Goodwill in community Lower prices Efficiency Quicker responses

Lower prices Better service Efficiency

Select all that apply What are the advantages of centralized purchasing? Multiple select question. Lower prices Efficiency Goodwill in community Quicker responses Lower transportation costs Better service

Lower prices Efficiency Better service

How are Assemble-to-order and Make-to-order different order fulfillment types? Multiple choice question. Assemble-to-order takes longer than Make-to-order since end product is customized to customer requirements Make-to-order and Assemble-to-order are interchangeable terms and essentially the same. Make-to-order requires a long time to manufacture. Assemble-to-order is relatively short using in-stock components

Make-to-order requires a long time to manufacture. Assemble-to-order is relatively short using in-stock components

Which of the following statements is correct about planning a successful conversion to Lean/Just-in-time operations. Multiple choice question. Conversion should be accomplished quickly, not gradually, to realize the maximum benefit. When converting a production line, begin at the start and progress to the end of the line. Vendors should be converted to JIT delivering first, before implementing in the Buyer's organization. Management and employees must be convinced of benefit and receive training prior to conversion to avoid obstacles.

Management and employees must be convinced of benefit and receive training prior to conversion to avoid obstacles.

What is the most serious obstacle to Lean conversion? Multiple choice question. Disgruntled suppliers who refuse to convert Employees who do not pay attention in training class Improper administration of statistical process control techniques Management commitment of resources required for conversion

Management commitment of resources required for conversion

What is the most serious obstacle to Lean conversion? Multiple choice question. Employees who do not pay attention in training class Management commitment of resources required for conversion Disgruntled suppliers who refuse to convert Improper administration of statistical process control techniques

Management commitment of resources required for conversion

Multiple Select Question Select all that apply What are some of the major obstacles encountered when converting to Lean/Just-in-time operations from traditional methods? Multiple select question. Management may resist because Lean shifts some of their responsibilities to workers. The organization's culture may not be compatible with the Lean philosophy. Suppliers may resist for various reasons--frequent deliveries, burden of quality, etc. Workers may be uneasy about learning statistics for Six Sigma process control

Management may resist because Lean shifts some of their responsibilities to workers. The organization's culture may not be compatible with the Lean philosophy. Suppliers may resist for various reasons--frequent deliveries, burden of quality, etc.

Which of the following best defines the term Logistics? Multiple choice question. A Business-to-Business (B2B) service provided by a third party company to transport outputs throughout the supply chain from source to customer Managing and coordinating the movement of materials, services, cash and information in a supply chain Transporting goods from one link in the supply chain to another in an efficient manner

Managing and coordinating the movement of materials, services, cash and information in a supply chain

Value Stream Mapping is a technique that originated at Toyota, where it was called Blank______. Multiple choice question. Value Flow Mapping Work Method and Mistake Mapping Data Mapping Material and Information Flow Mapping

Material and Information Flow Mapping

Which of the following constitutes a conflict of interest in Procurement? Multiple choice question. A supplier and purchasing agent exchange humorous/joke emails. A supplier and purchasing agent attend the same religious institution worship services. One of the suppliers on the bid list is owned by a close relative of the purchasing agent

One of the suppliers on the bid list is owned by a close relative of the purchasing agent

Which of the following constitutes a conflict of interest in Procurement? Multiple choice question. One of the suppliers on the bid list is owned by a close relative of the purchasing agent A supplier and purchasing agent attend the same religious institution worship services. A supplier and purchasing agent exchange humorous/joke emails.

One of the suppliers on the bid list is owned by a close relative of the purchasing agent

Select all that apply What is the supplier relationship like when the vendor is viewed as an partner? (Select all the items that apply.) Multiple select question. One or few number of suppliers Openness and sharing of strategic and tactical information readily occurs Price is moderately important but flexibility is very important Quality is usually poor and buyer must always inspect

One or few number of suppliers Openness and sharing of strategic and tactical information readily occurs Price is moderately important but flexibility is very important

Which functional group generates most of the purchase orders which Procurement then processes? Multiple choice question. Operations Accounting Design and engineering Receiving

Operations

Which functional groups will often assist Procurement in negotiating with suppliers when a supplier bid is received for a large order. Multiple choice question. Human resources Accounting Operations Marketing

Operations

Select all that apply Which of the following factors contribute to the inventory bullwhip effect? Multiple select question. Overreaction to stockouts Forecast inaccuracies Price increases in the supply chain Order batching to save on costs

Overreaction to stockouts order batching to save on costs forecast inaccuracies

What is traffic management in the context of supply chain management? Multiple choice question. Overseeing the shipment of incoming and outgoing goods Directing cars at shift change times as employees enter/exit the plant A function of municipal operations which controls the timing of intersection signal lights

Overseeing the shipment of incoming and outgoing goods

Select all that apply Select the four building blocks which support the goals of Lean/Just-in-Time systems from the following list: Multiple select question. Personnel & organization elements Product design Process design Training, culture and facilities Marketing, finance and operations Manufacturing, planning and control

Personnel & organization elements Product design Process design Manufacturing, planning and control

Which of the below statements best describes the difference between a push and pull system of production? Multiple choice question. Push and pull systems differ only by the kanban devices indicating movement to the next operation. Push: work is sent to the next operation upon completion. Pull: the subsequent operation takes from the preceding. Push: customer demand drives the pace of work. Pull system work is produced & sent to stock with extra buffer.

Push: work is sent to the next operation upon completion. Pull: the subsequent operation takes from the preceding.

Select all that apply What are the main factors involved in choosing a supplier? Multiple select question. Flexibility and lead times Quality and quality assurance Reputation and financial stability ROI percentage User friendliness of website Price

Quality and quality assurance Flexibility Location Price Product or service Change reputation and financial stability

Select all that apply What are the main factors involved in choosing a supplier? Multiple select question. ROI percentage Reputation and financial stability Quality and quality assurance Price User friendliness of website Flexibility and lead times

Quality and quality assurance Flexibility and lead times Price Reputation and financial stability

Select all that apply In order to achieve a balanced, rapid flow through a Lean system, disruptions must be minimized. What are some causes of disruptions in production? Multiple select question. Quality problems Employee break times Weekly staff meetings Late deliveries from suppliers Training programs to learn new skills Equipment breakdowns

Quality problems Late deliveries from suppliers Equipment breakdowns

What characteristic of lean systems enables equipment flexibility and output variety without disruption in a lean system? Multiple choice question. Use of teams Quick changeovers Waste reduction Lean culture

Quick changeovers

Select all that apply What are the advantages of decentralized purchasing? Multiple select question. Lower prices Specialized agents Quicker responses Better service Goodwill in community Lower transportation costs

Quicker responses Goodwill in community Lower transportation costs

Ordering Question Click and drag on elements in order Put the main steps of the purchasing cycle in order from 1 to 5 with 1 being the first step and 5 being the last. Drag and drop application.

Receive the requisition: the requisition includes a description of the item or material desired, the quantity and quality necessary, desired delivery dates and who is requesting the purchase. Select a supplier: Purchasing department must identify suppliers who have capability of supplying the desired goods. The seek through the currently listed files of suppliers, if no exist must find no ones. Vendor ratings may be referred to in choosing among vendors. or rating information can be relayed to the vendor with the thought of upgrading future performance. Place an order: Depending on the expenditure, if particulary for a one-time purchase of equipment venfors will usually be asked to bid on the job and operating and design personnel may be asked to assist in nefotiations with a vendor. Monitor the order: Routine follow-up on orders, especially large orders or those with lengthy lead times, allows the purchasing department to project potential delays and relay that information to the operating units. Receive the order: Receiving must check incoming shipments for quality and quantity. It must notify purchasing, accounting, and the operating unit that requested the goods. If the goods are not satisfactory, they may have to be returning to the supplier or subjected to further inspection.

The benefits of Lean are most easily realized in which Process type? Multiple choice question. Repetitive assembly Job shop Batch processing Continuous processing

Repetitive assembly

Which of the following actions is an example of a risk reduction strategy? Multiple choice question. Contracting with partners to spread risk. Refusing to deal with suppliers in certain areas Replacing unreliable suppliers

Replacing unreliable suppliers Refusing to deal with suppliers in certain areas is a risk avoidance strategy. Contracting with partners to spread risk is a risk sharing strategy.

Which of the following is an example of standardized parts supporting Lean. Multiple choice question. Same hard drive casing is used in all Dell Computers so assembler learns how to install one part number across all models of computers. Proctor-Silex toaster assembly instructions indicate to install the electrical cord appropriate for the destination country of origin. Each ceramic casserole dish made by Corning requires the same oven temperature for curing.

Same hard drive casing is used in all Dell Computers so assembler learns how to install one part number across all models of computers.

Which of the following activities in the supply chain is a tactical responsibility? Multiple choice question. Receiving Shipping Sourcing Scheduling

Sourcing

What are the two common threads across all the building blocks of Lean/JIT systems. Multiple choice question. Kaizen and learning Speed and Simplicity Waste and Inefficiency Customer focus and quality

Speed and Simplicity

Match the four aspects of Product Design which support the goals of Lean/JIT systems with their definition. Drag and drop application. Standard parts Standard parts drop zone empty. Modular design Modular design drop zone empty. Capable production quality Capable production quality drop zone empty. Concurrent engineering

Standard parts Having fewer parts across product lines which reduce procurement, inspection costs Modular design Standardized sub-assemblies (clusters of parts) to simplify bills of material, training, and assembly of final product Capable production quality Production systems where product and process design have reduced/eliminated defects Concurrent engineering Team approach involving each group in product design from the beginning instead of serially from development to delivery

Match these categories with their 5W2H term. Drag and drop application. Subject Subject drop zone empty. Purpose Purpose drop zone empty. Location Location drop zone empty. Sequence Sequence drop zone empty. People People drop zone empty. Method Method drop zone empty. Cost Cost drop zone empty.

Subject: What? What is being done? Identify the focus of analysis. Purpose: Why? Why is this necessary? Eliminate unnecessary tasks. Location: Where? Where is it being done? Why is it done there? Would it be better to do it someplace else?/ Goal is Improve the location. Sequence: When?/ When is it done? Would it be better to do it at another time?/ Goal is improve the sequence. People: Who?/ Who is doing it? Could someone else do it better?/ Goal is to improve the sequence or output. Method: How?/ How is it being done? is there a better way?/ Goal is to Simplify tasks, improve output. Cost: How much?/ How much does it cost now? What would the new cost be?/ Goal is to select n improved method.

Select all that apply Which of the following challenges are obstacles to establishing partnerships with suppliers? Multiple select question. Suppliers may need to increase their investment in equipment. The buyer and supplier are in different time zones. Many benefits from the partnership accrue to the buyer. The cultures of the buyer and supplier might conflict.

Suppliers may need to increase their investment in equipment. Many benefits from the partnership accrue to the buyer. The cultures of the buyer and supplier might conflict.

Choose the correct example of tactical versus operational inventory management--one of the responsibilities of supply chain managers. Multiple choice question. Tactical: Managing inbound deliveries from suppliers; Operational: Preparing and evaluating forecasts Tactical: Converting inputs into outputs; Operational: Coordinating the external supply chain. Tactical: Deciding where in the supply chain to hold inventory; Operational: replenishing inventory when depleted

Tactical: Deciding where in the supply chain to hold inventory; Operational: replenishing inventory when depleted

What does it mean when a buyer certifies a supplier? Multiple choice question. Supplier certification means that supplier audits no longer have to be conducted on a periodic basis. The buyer has certified the supplier has met or exceeded its requirements and can forgo inspecting their incoming goods. Supplier certification means that the supplier can then apply for ISO 9000 certification once it gets several buyer certifications. Certification means the supplier can bid on jobs when the buyer issues a request for proposal.

The buyer has certified the supplier has met or exceeded its requirements and can forgo inspecting their incoming goods.

Select all that apply Which of the following challenges are obstacles to establishing partnerships with suppliers? Multiple select question. The cultures of the buyer and supplier might conflict. The buyer and supplier are in different time zones. Suppliers may need to increase their investment in equipment. Many benefits from the partnership accrue to the buyer.

The cultures of the buyer and supplier might conflict. Suppliers may need to increase their investment in equipment. Many benefits from the partnership accrue to the buyer.

Multiple Choice Question Select the best definition of supply chain. Multiple choice question. The sequence of organizations—their facilities, functions, and activities—that are involved in producing and delivering a product or service. The raw materials, components or other parts provided by vendors to an organization which are transformed from inputs to outputs. The chain of suppliers contracted by an organization, including first, second and third tier suppliers, to provide inputs for production.

The sequence of organizations—their facilities, functions, and activities—that are involved in producing and delivering a product or service.

What is a broad definition of e-Business? Multiple choice question. A company that uses computers in their offices A company that sells electronic goods to consumers The use of electronic technology to facilitate business transactions Selling goods on e-Bay

The use of electronic technology to facilitate business transactions

Select all that apply What is the supplier relationship like when the vendor is viewed as an partner? (Select all the items that apply.) Multiple select question. Openness and sharing of strategic and tactical information readily occurs Price is moderately important but flexibility is very important Quality is usually poor and buyer must always inspect One or few number of suppliers

There are many suppliers who are pitted against one another Cost is the primary driver and quality inspection is performed by buyer

When services adopt Lean operations what is usually the main focus of improvement? Multiple choice question. Upgrade of existing facilities Time to perform a service Inventory levels in stock room Quality of service as perceived by the customer

Time to perform a service

Why are supplier audits conducted periodically by the buyer? Multiple choice question. Because buyers do not trust suppliers to do a good job and surprise audits result in higher quality goods. To keep current on vendor capabilities, quality, performance, problems and their resolutions. Because government regulations require periodic supplier audits in order to be ISO 9000 certified.

To keep current on vendor capabilities, quality, performance, problems and their resolutions.

Why are supplier audits conducted periodically by the buyer? Multiple choice question. Because buyers do not trust suppliers to do a good job and surprise audits result in higher quality goods. Because government regulations require periodic supplier audits in order to be ISO 9000 certified. To keep current on vendor capabilities, quality, performance, problems and their resolutions.

To keep current on vendor capabilities, quality, performance, problems and their resolutions.

Sometimes if a buyer does not want to develop its own supplier certification program, it will accept standard industry certifications such as ISO 9000. True false question. True False

True

True or False Question Purchasing agents should be concerned about the perception of wrongdoing when conducting business on behalf of their employer even when they have done nothing unethical. True false question. True False

True

Select the best definition of strategic partnering. Multiple choice question. A business organization purchases a supplier company and makes them a subsidiary company under the parent corporation. Two or more business organizations with complementary products or services join so that each may realize a strategic benefit. Several business organizations sign short term contracts for small volumes of business.

Two or more business organizations with complementary products or services join so that each may realize a strategic benefit.

JIT II is also known by what other acronym? Multiple choice question. 5S (Sort, Straighten, Sweep, Standardize, Self-Discipline) VMI (Vendor Managed Inventory) ERP (Enterprise Resource Planning) CONWIP (Constant Work-In-Process)

VMI (Vendor Managed Inventory)

Select the best definition of JIT II. Multiple choice question. When an organization uses both Just-in-Time AND Lean principles in their operation. Vendors manage inventory on Buyer's premises When a JIT system increases speed of production by at least 50% from adoption of practice

Vendors manage inventory on Buyer's premises

Select all that apply In what ways does JIT (Just-In-Time) impact the supply chain? (Select all correct answers.) Multiple select question. Vendors may charge more per unit for smaller shipments Loading docks busier from more frequent orders Vendors have to bid for orders and suppliers often choose lowest price Suppliers are under pressure to deliver on-time

Vendors may charge more per unit for smaller shipments Loading docks busier from more frequent orders Suppliers are under pressure to deliver on-time

At Toyota Lean Manufacturing is focused on Waste Reduction in every aspect of process. What is meant by "waste" in this context? Multiple choice question. Waste is anything that does not add value to or interferes with production. Waste is all refuse (garbage) collected at each step of operations and must be disposed of responsibly. Waste is any environmentally hazardous by-product of manufacturing.

Waste is anything that does not add value to or interferes with production.

Select all that apply Which of the following attributes are characteristics of lean systems? Multiple select question. Waste reduction Quick changeovers Continuous improvement Maximum inventory

Waste reduction Quick changeovers Continuous improvement

The 5W2H approach to process improvement is a simple and effective method. What does 5W2H stand for? Multiple choice question. What, Why, Where, When, Who, How, How Much? Five weapons, two heuristics What if, WIP, Waiting, Waste, Waiver, Hire, Health

What, Why, Where, When, Who, How, How Much?

Which of the below is an example of strategic partnering? Multiple choice question. When a buyer has a large contract and issues a competitive bid for it and selects the lowest price When a supplier agrees to hold inventory for the buyer in exchange for a long-term contract When a supplier agrees to implement Lean improvement policies to get a supplier certification from the buyer

When a supplier agrees to hold inventory for the buyer in exchange for a long-term contract

Select all that apply In a Lean organization workers are treated as assets. What does this mean in a lean organization? (Select all the examples that apply.) Multiple select question. Workers are each given a dollar value for cost accounting purposes. Workers are well-trained in Lean philosophy and methods. Workers are given authority to make decisions that effect their work.

Workers are well-trained in Lean philosophy and methods. Workers are given authority to make decisions that effect their work.

All of the following aspects of the business are typically covered in a supplier audit except which? Multiple choice question. cleanliness of site cafeteria and break rooms materials management quality assurance and process-improvement policies management style procedures for corrective action and follow up

cleanliness of site cafeteria and break rooms

Supply chain __________can inhibit operations due to minimal inventory levels in lean systems.

distruptions

Direct suppliers must be able to support Blank______ just-in-time deliveries of Blank______ of parts. Multiple choice question. infrequent, large batches infrequent, small batches frequent, large batches frequent, small batches

frequent, small batches

Technological advances in communications linking operations world-wide is a positive factor of Blank______. Multiple choice question. globalization resiliency logistics

globalization

All of the following are support items usually required to perform Logistics operations EXCEPT Blank______. Multiple choice question. fuel tools & lubricants marketing brochures equipment & parts

marketing brochures

Matching Question Lean, which originated at Toyota, uses many Japanese terms for its concepts. Match the term with the definition. Instructions Drag and drop application. muda muda drop zone empty. kanban kanban drop zone empty. heijunka heijunka drop zone empty. kaizen kaizen drop zone empty. jidoka

muda minimizing waste and inefficiency kanban a manual system to control the movement of parts and materials using containers and signals heijunka leveling volume and variety of work to reduce variation in the process kaizen continuous improvement in the system jidoka "Quality at the source"--work is stopped immediately when a defect occurs.

Part of logistics is movement of goods within a manufacturing facility, and that movement is part of Blank______. Multiple choice question. final shipping storage utilization production control inventory management

production control

In evaluating shipping alternatives, organizations using a low-cost strategy often opt for Blank______ methods, while organizations using a responsive strategy more often opt for Blank______, higher-cost carriers. Multiple choice question. slower; quicker variable; guaranteed tailored; standard

slower; quicker