Exam 27: Lean Manufacturing and Activity Analysis

Match each of the following quality control activities with the appropriate classification (a or b). -Reworking defective product A)Value-added B)Non-value-added

Costs of failing to control quality include prevention costs and external failure costs.

From the provided schedule of activity costs, determine the external failure costs.

A nonfinancial measure is operating information that has not been translated into dollars.

Setups are a significant time-consuming activity in traditional production environments.

Prevention costs and appraisal costs are considered costs of controlling quality.

In a pull manufacturing system, production is based on actual customer orders.

Which of the following is an objective of lean manufacturing?

Costs of controlling quality include prevention costs and internal failure costs.

Schedule of Activity Costs ​ -From the provided schedule of activity costs, determine the non-value-added costs.

All lead times are considered to be value-added.

Inventory reduction is a(n) _____ principle.

Reducing wait time is directly linked to reducing inventory.

Sifton Electronics Corporation manufactures and assembles electronic motor drives for video cameras. The company assembles the motor drives for several accounts. The process consists of a lean cell for each customer. The following information relates to only one customer's lean cell for the coming year. For the year, projected labor and overhead was $7,370,000 and materials costs were $28 per unit. Planned production included 4,000 hours to produce 27,500 motor drives. Actual production for August was 1,600 units, and motor drives shipped amounted to 1,380 units. Conversion costs are applied based on units of production -From the foregoing information, determine the cell conversion cost rate.

Which of the following are features of lean manufacturing? a. Maintaining excess inventory to ensure that products will always be available b. Cross-training of employees c. Giving employees additional authority and responsibility d. Product-oriented layout e. Increased setup time

What do lean manufacturers demand from their vendors?

Match each of the following quality control activities with the appropriate classification (a or b). -Design engineering A)Value-added B)Non-value-added

_____ manufacturing treats suppliers and customers as "arm's-length" independent entities.

Schedule of Activity Costs ​ -Which of the following statements best describes the relationship among the costs of quality?

Match each of the following quality control activities with the appropriate classification (a or b). -Inspecting finished goods A)Value-added B)Non-value-added