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.