Deck 16: Just-In-Time and Lean Options

Question 1

One goal of JIT partnerships is the removal of in-plant inventory by delivery in small lots directly to the using department as needed.

Answer 1

True

Question 2

JIT suppliers have concerns that the JIT firm's demands for small lot sizes are simply a way of transferring holding cost from manufacturer firm to the supplier firm.

Answer 2

True

Question 3

If setup times and costs can be reduced enough, the JIT ideal of "Lot Size = 1" can be achieved.

Answer 3

True

Question 4

JIT systems carry inventory just in case something goes wrong.

Question 5

Reducing distance is a common JIT goal.

Question 6

Hidden problems are generally uncovered during the process of reducing inventory.

Question 7

JIT brings about competitive advantage by faster response to the customer regardless of cost.

Question 8

TPS stands for Total Production Streamlining.

Question 9

A scheduler may find that freezing the portion of the schedule closest to the due dates allows the production system to function and the schedule to be met.

Question 10

Variability in manufacturing can occur because engineering drawings or specifications are incomplete or inaccurate.

Question 11

Product storage is an example of waste, in the sense that no value is added.

Question 12

Many suppliers feel that having a variety of customers is better than being tied to long-term contracts with one customer.

Question 13

Cross-training is a common JIT tactic to improve flexibility.

Question 14

Lower average inventory is feasible only if setup times are short.

Question 15

TPS stands for Toyota Production System.

Question 16

In a JIT system, product inspection adds value by identifying defective items.

Question 17

Increasing inventory exposes variability in production processes.

Question 18

Customer demand will always remain an unknown, so it is not considered a source of variation.

Question 19

A push system means providing the next station with exactly what is needed when it is needed.

Question 20

Waste is anything that does not add value, such as storage or inspection of items; waste also includes any activity that does not add value from the consumer's perspective.

Question 21

Which of the following is specifically characterized by continuous and forced problem solving through a focus on throughput and reduced inventory?

A) Just-in-time (JIT)
B) Toyota Production System (TPS)
C) Lean operations
D) Material requirements planning (MRP)
E) kanban

Question 22

Which of the following is specifically characterized by a focus on continuous improvement, respect for people, and standard work practices?

A) Just-in-time (JIT)
B) Toyota Production System (TPS)
C) Lean operations
D) Material requirements planning (MRP)
E) kanban

Question 23

Manufacturing cycle time is best defined as the

A) length of the work shift, expressed in minutes per day
B) time it takes a unit to move from one workstation to the next
C) time between the start of one unit and the start of the next unit
D) sum of all the task times to make one unit of a product
E) time from raw materials receipt to finished product exit

Question 24

Employee empowerment is unnecessary in the Toyota Production System, because automation and powerful information systems reduce the need for employee creativity and decision making.

Question 25

Which of the following statements regarding a pull system is true?

A) Large lots are pulled from upstream stations.
B) Work is pulled to the downstream stations before it is actually needed.
C) Manufacturing cycle time is increased.
D) Problems become more obvious.
E) None of the above is true of a pull system.

Question 26

With level schedules, a few large batches, rather than frequent small batches, are processed.

Question 27

Which of the following is specifically characterized by the elimination of waste through a focus on exactly what the customer wants?

A) Just-in-time (JIT)
B) Toyota Production System (TPS)
C) Lean operations
D) Material requirements planning (MRP)
E) kanban

Question 28

Which of the following is generally found in most JIT environments?

A) a push or pull system, depending upon the rate of demand
B) a push system for high margin items and a pull system for low margin items
C) a push system for purchased parts and a pull system for manufactured parts
D) push systems
E) pull systems

Question 29

The first step in reducing setup times is the separation of setup into preparation activities and actual setup, so that as much work as possible can be done while the machine or process is operating.

Question 30

Inventory has only one positive aspect, which is availability; inventory has several negatives, including increased material handling, obsolescence, and damage.

Question 31

A kanban system requires little variability in lead time because shortages have their impact on the entire productive system.

Question 32

The quality management tool called poka-yoke is not relevant to JIT systems.

Question 33

The 5Ss-sort/segregate, simplify/straighten, shine/sweep, standardize, and sustain/self discipline-are important to lean production because they act as a means to reduce waste.

Question 34

What does TPS stand for?

A) Total Production Streamlining
B) Toyota Production System
C) Taguchi's Production S's
D) Total Process Simplification
E) None of the above

Question 35

Because most services cannot be inventoried, there is little place for JIT to help service organizations achieve competitive advantage.

Question 36

The Toyota Production System requires that activities have built-in, automatic tests so that gaps between expectations and actuality are immediately evident.

Question 37

When implemented as a comprehensive manufacturing strategy, JIT, TPS, and lean systems sustain competitive advantage and result in increased overall returns.

Question 38

Level scheduling means producing at a constant rate, regardless of customer demands.

Question 39

The number of kanbans decreases as safety stock is increased.

Question 40

Which of the following is not a reason for variability?

A) Employees, machines, and suppliers produce units late.
B) Customer demand is unknown.
C) Employees, machines, and suppliers produce units that conform to standards.
D) Engineering drawings are inaccurate.
E) Drawings or specifications are incomplete.

Question 41

Which one of the following is a characteristic of a JIT partnership?

A) large number of suppliers
B) maximal product specifications imposed on supplier
C) active pursuit of vertical integration
D) removal of incoming inspection
E) frequent deliveries in large lot quantities

Question 42

In JIT partnerships, suppliers have several concerns. Which of the following is not such a concern?

A) desire for diversification
B) poor customer scheduling
C) small lot sizes
D) producing high enough quality levels
E) customers' infrequent engineering changes

Question 43

Which one of the following is not a benefit of the implementation of JIT?

A) cost reduction
B) variability increase
C) rapid throughput
D) quality improvement
E) rework reduction

Question 44

A characteristic of JIT partnerships with respect to quality is to

A) help suppliers meet quality requirement
B) inspect all incoming parts
C) maintain a steady output rate
D) impose maximum product specifications on the supplier
E) draw up strict contracts ensuring that all defectives will be immediately replaced

Question 45

Reduction of in-transit inventory can be encouraged through use of

A) supplier location near plants
B) low setup costs
C) low carrying costs
D) use of trains, not trucks
E) low-cost, global suppliers

Question 46

Concerning relationships with suppliers, which of the following combinations is critical to the success of JIT?

A) close relationships with trust
B) close relationships with skepticism
C) distant relationships with trust
D) distant relationships with skepticism
E) none of the above

Question 47

What is the time required to move orders through the production process, from receipt to delivery?

A) throughput
B) manufacturing cycle time
C) pull time
D) push time
E) queuing time

Question 48

Which of the following is not a goal of JIT partnerships?

A) removal of unnecessary activities
B) removal of in-plant inventory
C) removal of in-transit inventory
D) removal of engineering changes
E) All of the above are goals of JIT partnerships.

Question 49

Throughput measures the time

A) that it takes to process one unit at a station
B) between the arrival of raw materials and the shipping of finished products
C) to produce one whole product through an empty system (i.e., with no waiting)
D) required to move orders through the production process, from receipt to delivery
E) none of the above

Question 50

The list of 5S's, although it looks like a housekeeping directive, supports lean production by

A) identifying non-value items and removing them, in the "sort/segregate" item
B) reducing inventory, in the "standardize" item
C) increasing variability through standardized procedures, in the "standardize" item
D) eliminating wasted motion through ergonomic studies, in the "support" item
E) building good safety practices, in the "shine/sweep" item

Question 51

Characteristics of just-in-time partnerships do not include

A) removal of in-transit inventory
B) large lot sizes to save on setup costs and to gain quantity discounts
C) long-term contracts
D) few suppliers
E) buyer helps supplier to meet the quality requirements

Question 52

If the goals of JIT partnerships are met, which of the following is a result?

A) For incoming goods, receiving activity and inspection are outsourced.
B) In-transit inventory falls as suppliers are located closer to facilities.
C) The number of suppliers increases.
D) In-plant inventory replaces in-transit inventory.
E) All of the above are consequences of meeting the JIT partnership goals.

Question 53

Which of the following is not one of the Seven Wastes?

A) overproduction
B) transportation
C) assignment
D) defective product
E) motion

Question 54

Which of the following is not a goal of JIT partnerships?

A) removal of unnecessary activities
B) removal of in-plant inventory
C) removal of in-transit inventory
D) obtain improved quality and reliability
E) All of the above are goals of JIT partnerships.

Question 55

Characteristics of JIT partnerships with respect to suppliers include

A) competitive bidding encouraged
B) buyer plant pursues vertical integration to reduce the number of suppliers
C) support suppliers so they become or remain price competitive
D) most suppliers at considerable distance from purchasing organization
E) All of the above are characteristics of JIT partnerships.

Question 56

The 5Ss

A) have the "flavor" of a housekeeping list
B) are a checklist for lean operations
C) have become a list of seven items in American practice
D) can be used to assist with necessary changes in organizational culture
E) All of these are true.

Question 57

Just-in-time systems make demands on layouts, including

A) distance reduction
B) increased flexibility
C) reduced space and inventory
D) cross-trained, flexible employees
E) All of the above are JIT influences on layout.

Question 58

Which one of the following is a concern expressed by suppliers?

A) having too many customers
B) delivery to the point of use
C) having limited ability to respond to changes in product and quality
D) large lot sizes
E) customers' infrequent engineering changes

Question 59

Which of the following is not a concern of suppliers as they prepare to enter into JIT partnerships?

A) Suppliers feel that they would be less at risk if they contracted with more than one customer.
B) Suppliers are concerned that customers will present frequent engineering changes with inadequate lead time to deal with them.
C) Suppliers feel that their processes are suited for larger lot sizes than the customer wants.
D) Suppliers are concerned that frequent delivery of small quantities is economically prohibitive.
E) All of the above represent JIT supplier concerns.

Question 60

Which one of the following is not a layout tactic in a JIT environment?

A) work cells for families of products
B) fixed equipment
C) minimizing distance
D) little space for inventory
E) poka-yoke devices

Question 61

Which one of the following scenarios represents the use of a kanban to reduce inventories?

A) A supervisor tells the operators to stay busy and start producing parts for next month.
B) A "supplier" work center signals the downstream workstation that a batch has been completed.
C) A supervisor signals to several work centers that the production rate should be changed.
D) A "customer" work center signals to the "supplier" workstation that more parts are needed.
E) An operator asks the next station's operator to help him fix his machine.

Question 62

If a casual-dining restaurant is attempting to practice JIT and lean operations, which of the following would not be present?

A) close relationship with the restaurant's suppliers of food, utensils, and equipment
B) food preparation in large batches
C) a kitchen set up to minimize wasteful movements
D) lean inventories of food
E) All of the above should be present.

Question 63

JIT makes quality cheaper because

A) the cost of low quality can be hidden as inventory cost
B) JIT adds more buffers to the system
C) JIT prevents long runs of defects
D) B and C
E) A, B and C

Question 64

Lead time for computers is 7 days with daily demand of 5 computers and a safety stock of 1 day. Each kanban holds 8 computers. What is the correct number of kanbans?

A) not enough information
B) 1
C) 5
D) 7
E) 8

Question 65

Which one of the following statements is true about the kanban system?

A) The quantities in the containers are usually large to reduce setup costs.
B) It is associated with a push system.
C) It is useful to smooth operations when numerous quality problems occur.
D) The supplier workstation signals the customer workstation as soon as a batch is completed.
E) The customer workstation signals to the supplier workstation when production is needed.

Question 66

Which of the following is true regarding the steps to reducing setup times?

A) The first step involves performing as much setup preparation as possible while the process/machine is operating.
B) The cycle of steps is repeated until setup time is reduced to under a minute.
C) The standardization of both tooling and work procedures is advantageous to setup time reduction.
D) Improved material handling and move material closer are done before operator training.
E) All of the above are true.

Question 67

The technique known as level schedules

A) requires that schedules be met without variation
B) processes many small batches rather than one large one
C) is known as "jelly bean" scheduling
D) is based on meeting one day's demand with that day's production
E) All of the above are true regarding level scheduling.

Question 68

A firm wants to develop a level material use schedule based on the following data. What should be the setup cost?

A) $0.45
B) $4.50
C) $45
D) $450
E) $500

Question 69

Which of the following is the author of the phrase "Inventory is evil"?

A) Poka Yoke
B) Pat "Keiretsu" Morita
C) Kanban Polka
D) Shigeo Shingo
E) none of the above

Question 70

A grocery store is attempting to implement a kanban system. Which of the following would not be an application of kanbans?

A) An empty doughnut tray signaling the bakery to produce 2 dozen glazed doughnuts.
B) A line of 5 people in the Chinese department signaling the department to heat 5 Crab Rangoon.
C) A red light on top of the cashier's lane signals that the cashier needs additional change replenished.
D) The meat department stocking up on turkeys before Thanksgiving.
E) All of the above are kanban applications.

Question 71

The word "kanban" means

A) low inventory
B) employee empowerment
C) card
D) continuous improvement
E) lot size of one

Question 72

Lead time for computers is 5 days with daily demand of 25 and safety stock of 5 computers. If management wants to use 10 kanbans how many computers should each one hold?

A) not enough information
B) 1
C) 5
D) 10
E) 13

Question 73

A product has annual demand of 100,000 units. The plant manager wants production to follow a four-hour cycle. Based on the following data, what setup cost will enable the desired production cycle? d=400 per day (250 days per year), p=4000 units per day, H=$40 per unit per year, and Q=200 (demand for four hours, half a day).

A) $2.00
B) $7.20
C) $18.00
D) $64.00
E) $1,036.80

Question 74

Which one of the following statements is true regarding JIT inventory?

A) It exists just in case something goes wrong.
B) It is the minimum inventory necessary to keep a perfect system running.
C) It hides variability.
D) It is minimized with large lot production.
E) It increases if setup costs decrease.

Question 75

Which of the following is false regarding the links between JIT and quality?

A) Inventory hides bad quality; JIT immediately exposes it.
B) JIT reduces the number of potential sources of error by shrinking queues and lead times.
C) As quality improves, fewer inventory buffers are needed; in turn, JIT performs better.
D) If consistent quality exists, JIT allows firms to reduce all costs associated with inventory.
E) All of the above are true.

Question 76

Lead time for cakes is 2 days with daily demand of 10 cakes and a safety stock of ½ a day. Each container (kanban) holds 1 cake. What is the correct number of kanbans?

A) not enough information
B) 1
C) 5
D) 10
E) 25

Question 77

The cook in a fast-food restaurant knows that 2 hamburger patties and an order of fries should be started for each car that is waiting in line. This is best an example of

A) Lead time
B) Kanban
C) Push production
D) Kaizen
E) EOQ

Question 78

Kanban is associated with all of the following except

A) small lot sizes
B) signals, such as cards, lights, or flags
C) moving inventory only as needed
D) increased material handling
E) reductions in inventory

Question 79

Factory X is trying to use level use scheduling. If their first target were to cut the current lot size in half, by what proportion must setup cost change?

A) Setup cost must be cut to one fourth its current value.
B) Setup cost must also be cut in half from its current value.
C) Setup cost must double from its current value.
D) cannot be determined
E) none of the above

Question 80

The number of kanbans should be equal to

A) one
B) the ratio of (demand during lead time + safety stock) to container size
C) ½ of the EOQ
D) one full day's production divided by the EOQ
E) none of the above