Deck 27: Lean Principles, Lean Accounting, and Activity Analysis

Question 1

A make-to-order company matches its production schedules to actual customer orders.

Answer 1

True

Question 2

Long setups and large batch sizes result in smaller inventories.

Answer 2

False

Question 3

Lean manufacturing is also called make-to-order manufacturing.

Answer 3

True

Question 4

A setup is the time required to prepare an operation for a new production run.

Question 5

Lean manufacturing favors organizing work around processes rather than around products.

Question 6

Lean manufacturing is also called make-to-stock manufacturing.

Question 7

All lead times are considered to be value-added lead time.

Question 8

Lean manufacturing focuses on reducing time, cost, and poor quality in processes.

Question 9

Reducing wait time is not linked to reducing inventory.

Question 10

The lean philosophy views inventory as a necessary buffer to protect against process problems.

Question 11

Employee involvement in a product-oriented factory emphasizes employee teams, rather than individual employees.

Question 12

Lead time reduction can be a cost-saving goal for any processed item.

Question 13

Lead time includes both value-added time and non-value-added time.

Question 14

Lead time is the process time between start and completion.

Question 15

Lean manufacturing favors organizing work around products rather than around processes.

Question 16

The lean manufacturing philosophy views inventory as an unnecessary waste of resources.

Question 17

In the lean principles philosophy, unexpected downtime is the result of unreliable processes.

Question 18

Reducing wait time is directly linked to reducing inventory.

Question 19

Within-batch wait time increases total lead time.

Question 20

Large batch sizes increase lead time.

Question 21

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

Question 22

Push manufacturing is also referred to as make-to-order processing.

Question 23

Push manufacturing made-to-stock) is a traditional approach to manufacturing.

Question 24

In a push manufacturing system, raw materials are released to production based on actual customer orders.

Question 25

In a lean environment, process problems are less visible than they are in a traditional environment.

Question 26

Make-to-order companies typically produce in small batch sizes.

Question 27

In a pull manufacturing system, raw materials are released to production based on actual customer orders.

Question 28

Maximum effectiveness and efficiency are reached when the lean philosophy is used mainly by manufacturers.

Question 29

Employee involvement does not include performing any indirect manufacturing functions.

Question 30

In a push manufacturing system, raw materials are released to production based on forecasted demand.

Question 31

A process-oriented layout segments production facilities into functional departments.

Question 32

In a pull manufacturing system, raw materials are released to production based on forecasted demand.

Question 33

Under the lean production concept, employees are better utilized if they are experts in one operation rather than wasting time training them to learn various production operations.

Question 34

Maximum effectiveness and efficiency are reached when the lean philosophy is used by both manufacturers and their suppliers.

Question 35

In a lean environment, raw materials are delivered less frequently than in a traditional environment.

Question 36

Make-to-order companies produce mainly to stock inventory.

Question 37

In a lean environment, process problems are more visible than they are in a traditional environment.

Question 38

In a lean environment, raw materials are delivered more frequently than in a traditional environment.

Question 39

One inherent risk to using lean philosophy is that companies are at higher risk of inventory shortage during volatile times such as strikes, weather, etc. than when using the traditional philosophy.

Question 40

In a lean environment, operations only respond to customer orders.

Question 41

In a lean system, indirect labor is traced directly to product cells.

Question 42

In a lean environment, the journal entry to record raw materials purchases would include a debit to the raw and in process inventory account.

Question 43

In a lean system, there are fewer transactions to record than there are in a traditional system.

Question 44

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

Question 45

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

Question 46

In a lean environment, the journal entry to record conversion costs would include a debit to the manufacturing overhead control account.

Question 47

By spending more in costs of controlling quality, the costs of failing to control quality will decrease.

Question 48

In a lean environment, the journal entry to record raw materials purchases would include a credit to the raw materials inventory account.

Question 49

A backflush accounting system uses work in process inventories as control points between each process step.

Question 50

Nonfinancial accounting information is used more often for long-term operating decisions than is financial information.

Question 51

In a lean system, the work in process and raw materials inventory accounts are combined.

Question 52

In a lean system, direct labor is included in conversion costs.

Question 53

The budgeted cell conversion cost rate is very similar to the predetermined factory rate because both include only factory overhead costs.

Question 54

Financial accounting information is used more often for long-term operating decisions and nonfinancial information is used more often for day-to-day decisions.

Question 55

A lean nonmanufacturing process can be accomplished by consolidating, in one area, all of the services provided to a customer.

Question 56

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

Question 57

In a lean environment, the journal entry to record conversion costs would include a debit to the raw and in process inventory account.

Question 58

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

Question 59

In a lean system, there are more transactions to record than there are in a traditional system.

Question 60

It is easier to quantify costs of controlling quality than the costs of failing to control quality.

Question 61

Which of the following is characteristic of a lean production layout?

A) Decentralized maintenance and small production batches
B) Decentralized maintenance and organization around processes
C) Organization around processes and small production batches
D) Large production batches and organization around processes.

Question 62

Set up time is disregarded as an improvement priority under the manufacturing concept.

A) traditional
B) lean
C) total quality management
D) product cost

Question 63

manufacturing deals with several suppliers in hopes of finding the best price.

A) Traditional
B) Lean
C) Economic
D) Productivity improvement

Question 64

The lean philosophy attempts to reduce setup times, which will:

A) increase batch sizes
B) not affect batch sizes
C) increase within-batch wait time
D) decrease within-batch wait time

Question 65

Which of the following drives work-in-process inventory levels higher?

A) Machine breakdowns
B) Production rate losses
C) Rework processes
D) All of the above

Question 66

Under a lean environment, employees have the responsibility and authority to

A) purchase inventory.
B) determine output amounts.
C) make decisions about operations, rather than waiting for management.
D) make engineering changes.

Question 67

Inventory reduction is a principle.

A) lean
B) traditional processing
C) economic
D) wait time

Question 68

Examples of transforming a traditional manufacturing environment to a lean environment is to do all of the following except

A) form partnerships with reliable suppliers.
B) reorganize operational processes to organized product lines.
C) train employees to perform various operations.
D) increase raw materials to produce more, thereby increasing finished goods inventory.

Question 69

manufacturing philosophy emphasizes quality and zero defects.

A) Traditional
B) Lean
C) Zero-Based
D) Chinese

Question 70

Which of the following is are) objectives) of lean manufacturing?

A) eliminating waste
B) increasing inventory levels
C) increased production speed
D) all of the above

Question 71

A college would like to increase enrollment by streamlining the enrollment process. Which of the following would not fall in line with the college goal?

A) Reduce the requirements necessary to enroll.
B) Relocate counselors, academic advisors, and financial aid specialists for a major to a central location.
C) Cross-train counselors, academic advisors, and financial aid specialists.
D) All of these choices would fall in line with the college goal.

Question 72

How are the objectives of lean manufacturing achieved?

A) Product-oriented production layout
B) Employee involvement
C) Supplier partnering
D) All of the above

Question 73

What do lean manufacturers demand from their vendors?

A) High quality materials
B) Low cost materials
C) On-time deliveries
D) All of the above

Question 74

Which of the following results in long lead time?

A) long setup times
B) large batch sizes
C) large inventories
D) all of the above

Question 75

Traditional manufacturing emphasizes all of the following except

A) team oriented employee involvement
B) process-oriented layout
C) push manufacturing
D) cost accumulation by department

Question 76

In a lean environment, process problems are more visible than they are in a traditional environment because:

A) inventories are maintained at higher levels.
B) process problems cause production to shut down immediately.
C) the push manufacturing system leads to increased inventory level.
D) the lack of work in process inventory creates problems.

Question 77

A local college is aggressively working to reduce the time it takes students to enroll for each semester. Which of the following changes would not help achieve this goal?

A) Counselors are specializing in common degree plans
B) One application is good at the community college and at the transferring university
C) A one stop area includes admissions, advising, registration and student ID's
D) Having more number of staff to help facilitate admission process

Question 78

Lean manufacturing philosophy reduces all of the following except

A) inventory
B) setup time
C) lead time
D) conversion costs

Question 79

Which of the following is considered non-value-added lead time?

A) packing
B) moving from process to process
C) converting raw materials to finished product
D) all of the above

Question 80

Which of the following is an example of value-added time?

A) Processing time
B) Wait time during inspection
C) Wait time in inventory
D) Both B and C