Deck 12: Lean Manufacturing and Activity Analysis

Question 1

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

Answer 1

True

Question 2

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

Answer 2

True

Question 3

Reducing wait time is directly linked to reducing inventory.

Answer 3

True

Question 4

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

Question 5

Large batch sizes increase lead time.

Question 6

Within-batch wait time increases total lead time.

Question 7

Long setups and large batch sizes result in smaller inventories.

Question 8

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

Question 9

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

Question 10

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

Question 11

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

Question 12

Lead time is the process time between start and completion.

Question 13

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

Question 14

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

Question 15

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

Question 16

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

Question 17

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

Question 18

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

Question 19

Reducing wait time is not linked to reducing inventory.

Question 20

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

Question 21

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

Question 22

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

Question 23

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

Question 24

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

Question 25

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

Question 26

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

Question 27

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

Question 28

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

Question 29

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

Question 30

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

Question 31

Employee involvement does not include performing any indirect manufacturing functions.

Question 32

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

Question 33

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

Question 34

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 35

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

Question 36

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

Question 37

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

Question 38

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

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

Question 41

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

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

Question 42

Christmas Express makes wreaths in batch sizes of 12. The cutting & assembly process takes 8 minutes per wreath and the decorating process time is 10 minutes per wreath. It takes 12 minutes to move the wreaths from the cutting & assembly process to the decorating process.
(a) Compute the value-added, non-value-added, and the total lead time of the wreath process.
(b) Compute the value-added ratio.  Round to the nearest decimal.

Question 43

Lean manufacturing philosophy reduces all of the following except

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

Question 44

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 45

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 46

Which of the following is (are) objective(s) of lean manufacturing?

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

Question 47

____ manufacturing philosophy emphasizes quality and zero defects.

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

Question 48

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 49

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 50

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 51

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 52

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 53

Inventory reduction is a ____ principle.

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

Question 54

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 55

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 56

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 57

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

Question 58

Which of the following are features of the lean manufacturing system? 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 set-up time

Question 59

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

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

Question 60

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 61

Extreme Wreaths, Inc.  makes wreaths in batch sizes of 15 at a time. The cutting & assembly process takes 10 minutes per wreath, and the decorating process time is 7 minutes per wreath. It takes 5 minutes to move the wreaths from the cutting & assembly process to the decorating process.
In a effort to improve the lead time, the company has tried reducing the batch size to 10 units. The new process is as follows: cutting & assembly process - 8 minutes. The decorating process is still 7 minutes per wreath. It takes 5 minutes to move the wreaths from the cutting & assembly process to the decorating process.
(a) Compute the value-added, non-value-added, and the total lead time of the wreath process for both the old and the new manufacturing process.
(b) Compute the value-added ratio for both the old and new process.  Round to the nearest decimal.

Question 62

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

Question 63

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

Question 64

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

Question 65

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 66

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

Question 67

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

Question 68

Which of the following is characteristic of the traditional cost system?

A) Many work in process account transactions.
B) Reliance on financial performance measures.
C) Many process control points.
D) All of the above.

Question 69

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

Question 70

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 71

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

Question 72

Which of the following is characteristic of the lean system?

A) Fewer work in process account transactions.
B) Work in process and raw materials accounts combined.
C) Elimination of the direct labor account.
D) All of the above.

Question 73

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

Question 74

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 75

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 76

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

Question 77

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

Question 78

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

Question 79

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

Question 80

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