Deck 12: Purchasing and Supply Chain Analysis: Tools and Techniques

Question 1

The advantage of a Gantt chart is that for larger projects, it can be easy to use and keep up to date.

Answer 1

False

Question 2

Value analysis traditionally applies to tangible products, and there are many reasons why companies cannot VA techniques to services.

Answer 2

False

Question 3

Projects have certain characteristics that make them unique compared with other forms of work.

Answer 3

True

Question 4

Activities without any slack in a PERT network are by definition on the critical path.

Question 5

In a CPM or PERT project, a network is a graphical representation that shows how each individual activity relates in time and sequence to all other activities.

Question 6

When using quantity discount analysis, the key calculation is the incremental cost of each additional unit at different quantity levels.
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Question 7

Offering a supplier a longer-term contract with guaranteed volumes encourages investment in equipment that results in lower production costs.

Question 8

In collaborative relationships, buyers and suppliers can work together to mutually share the benefits of learning curves and productivity improvements.

Question 9

Learning curve analysis is appropriate when a supplier uses a new production process or produces an item for the first time.

Question 10

Each activity in PERT has three time estimates: (1) most likely, (2) pessimistic, and (3) optimistic.

Question 11

The planning phase of a project is particularly critical because there is a strong correlation between effective planning and successful project outcomes.

Question 12

All processes or items can benefit from, or exhibit improvement from, learning.

Question 13

Learning curves require the accurate collection of cost and labor data, particularly during the latter stages of production.

Question 14

The work force factor of the learning curve refers to the ability of the worker on the job to learn and improve through repetitive effort and increased efficiency, but not the effort by management to pursue productivity gains.

Question 15

If learning occurs at a supplier during the performance of a purchase contract, and the buyer does not take that into account, then the supplier will not reap the financial benefits that result from learning.

Question 16

Because a project usually has a defined scope with agreed-upon tasks, responsibilities, and deliverables, it is often more difficult to measure project success compared with other types of work.

Question 17

Activities on the critical path in a PERT network will have slack.

Question 18

Learning-curve analysis highlights a key reason why many purchasers consolidate purchase volumes with fewer suppliers.

Question 19

The primary objective of value analysis is to increase the value of an item or service at the lowest cost without sacrificing quality.

Question 20

The longest path (in time) through a PERT network is the critical path.

Question 21

Which of the following is not one of the network rules for PERT/CPM?​

A) Networks start and finish at multiple events.
B) Identify each unique activity within a project by a capital letter that corresponds only to that activity.
C) Branch direction indicates the general progression in time from left to right.
D) When a number of activities end at one event, no activity starting at that event may begin before all activities ending at that event are complete.
E) Two or more activities cannot share graphically the same beginning and ending events.

Question 22

A/An _____ is a series of tasks that requires the completion of specific objectives within a certain time frame; has defined start and stop dates; consumes resources, particularly time, personnel, and budget; and operates with limited resources.

A) process
B) work order
C) purchase order
D) project
E) team charter

Question 23

A _____ visually displays the tasks and times associated with a project and consists of a horizontal bar chart with activities listed vertically and times or dates displayed horizontally.

A) PERT tool
B) Gantt chart
C) CPM tool
D) TCO chart
E) networking tool

Question 24

When a process crosses functional boundaries, there is a risk that no one actually owns or takes responsibility for the entire process.

Question 25

Which of the following is not one of the six phases of a project?​

A) Precompletion.
B) Project definition.
C) Preliminary studies.
D) Performance.
E) Post-completion.

Question 26

Organizations should not use process mapping to redesign or reengineer processes.

Question 27

In a PERT network, which of the following is not one of the times shown on the chart?

A) Early start.
B) Late start.
C) On time start.
D) Early finish.
E) Late finish.

Question 28

Users apply _____ to projects where there is a single known time for each activity with no variance, while _____ applies to projects where time estimates are variable or uncertain.

A) Make-buy analysis….CPM
B) PERT….CPM
C) Post-completion analysis….PERT
D) CPM…PERT
E) PERT….TCO

Question 29

In a PERT network, a/an _____ is the earliest point in time an activity can begin.

A) late start
B) on time start
C) early finish
D) early start
E) late finish

Question 30

Because so few processes move across functional boundaries, it is illogical to have those groups connected with the process involved with mapping and improving the process.

Question 31

In a PERT network, a/an _____ is the earliest time a project can finish given the expected activity time.

A) late finish
B) on time start
C) on time finish
D) early start
E) early finish

Question 32

In a PERT network, a/an _____ is the latest time an activity can finish without delaying the entire project.

A) late start
B) late finish
C) on time finish
D) early start
E) late start

Question 33

Most processes do not cross functional boundaries.

Question 34

In a PERT network, a/an _____ is the latest point in time an activity can begin without delaying the entire project.

A) late start
B) late finish
C) early start
D) early finish
E) on time finish

Question 35

Non-value-adding actions and resources are those actions in a process that must be done to make the product but create no value for the customer.

Question 36

All of the following are points that should be considered before initiating a project except _____.

A) make sure the objectives and outcomes are championed by senior executive management
B) measure subjectively
C) place the program under the leadership of people with skill, credentials, and credibility
D) establish an effective governance process with a cross-functional team
E) break down the project into phased deliverables

Question 37

By identifying unnecessary steps and resources, value stream mapping streamlines processes for greater efficiency.

Question 38

All of the following are characteristics of the post-completion phase of a project except _____.

A) confirm that the final project meets the expectations of management or customers
B) reassign project personnel to other positions or other projects
C) restore any used equipment and facilities to their original status
D) conduct a post-implementation meeting to discuss the strengths and weaknesses of the project
E) identify broad budget, personnel, and resource requirements for future projects

Question 39

Many organizations are attempting to develop new products concurrently rather than sequentially, which not only saves time and money but also allows agreement on major issues early in the process.

Question 40

The _____ (in time) through a PERT network is the _____.

A) longest path….critical path
B) shortest path….critical path
C) longest path….slack
D) shortest path….slack
E) None of the above.

Question 41

A _____ is one in which the set of steps or activities that make up the activity occur one after the other.

A) continuous process
B) sequential process
C) concurrent process
D) standardized process
E) None of the above.

Question 42

_____ is a tool that reduces processes to their component parts or activities and helps identify and then eliminate non-value-added activities (waste) or delays within a process.

A) Process mapping
B) TCO
C) PERT/CPM
D) QDA
E) Productivity analysis

Question 43

[A] _____ establishes the rate of improvement because of learning as producers realize direct-labor cost improvements as production volumes increase.

A) leverage
B) learning curve
C) knowledge curve
D) product life cycle
E) short-term contract

Question 44

_____ is a process of visually presenting the flow of materials and information to identify wasted time and actions in a manufacturing or service process.

A) Make-buy analysis
B) QDA
C) Value stream mapping
D) TCO
E) None of the above.

Question 45

Historically, the term _____ applies to the reduced direct-labor requirement per unit of output because of the effects of learning, while the term _____ refers to the longer-term factors of production that systematically reduce production costs.

A) learning curve….experience curve
B) learning curve….infinity curve
C) experience curve….Boeing curve
D) experience curve….learning curve
E) None of the above.

Question 46

According to Ohno and Toyota, _____ is a category of waste that retains unnecessary inventory between process steps.

A) excess inventory
B) overproduction
C) over-processing
D) waiting time
E) None of the above.

Question 47

In a PERT network, the difference between the _____ and the _____ is slack.

A) late finish….early finish
B) late start….late finish
C) early finish….late start
D) early start….early finish
E) None of the above.

Question 48

_____ techniques are primarily applied to existing products and services, while _____ is the application of value principles during product or service design. ​

A) Value analysis….total cost of ownership
B) Value engineering….price analysis
C) Value analysis….value engineering
D) Price analysis….cost analysis
E) Value engineering….value analysis

Question 49

According to Ohno and Toyota, _____ is a category of waste that produces items for which there are no orders.

A) excess inventory
B) overproduction
C) unnecessary movement
D) waiting time
E) defect

Question 50

Which of the following is not a question that value analysis teams should ask to determine if opportunities exist for item, product, or service improvement?​

A) Are there additional uses for this product?
B) Can we use a different color of paint?
C) Is there a better production method to produce the item or product?
D) If we are making an item now, can we buy it for less (or vice versa)?
E) Are packaging cost reductions possible?

Question 51

A/An _____ consists of activities or steps that can be performed at the same time during the main flow of work. ​

A) intermittent process
B) continuous process
C) standardized process
D) concurrent process
E) None of the above.

Question 52

When referring to learning improvement, the _____ represents a reduction in the cumulative average number of labor hours as production doubles from a previous level.

A) critical path
B) slack path
C) expected activity time
D) learning rate
E) early finish

Question 53

In a PERT network, the difference between the _____ and the _____ is slack.

A) early start….late finish
B) late start….early finish
C) early start….early finish
D) late start….early start
E) None of the above.

Question 54

According to Ohno and Toyota, _____ is a category of waste that occurs when employees are standing about and inventory is at a standstill.

A) waiting time
B) defect
C) overproduction
D) unnecessary movement
E) over-processing

Question 55

According to Ohno and Toyota, _____ is a category of waste that moves material unnecessarily or long distances.

A) unnecessary movement
B) over-processing
C) defect
D) unnecessary transport
E) overproduction

Question 56

_____ is a way to achieve continuous performance improvement in an item, product, or service, but it is not a technique for cheapening a product or service by lowering quality or other performance attributes below what customers expect.

A) Make-buy analysis
B) Total cost analysis
C) Price analysis
D) Cost analysis
E) Value analysis

Question 57

Which of the following is not one of the critical steps to process mapping?

A) Search for better ways and methods to perform the tasks comprising a process.
B) Replace sequential activities with concurrent activities whenever possible.
C) Identify those activities that contribute to waste or add minimal value to the process and target those for elimination.
D) Identify the time associated with each part of a process and identify how much of that time is waste.
E) Utilize all sequential activities whenever possible as concurrent activities are wasteful.

Question 58

Which of the following is Falseregarding when to use the learning curve?​

A) Learning-curve analysis is appropriate when a supplier uses a new production process.
B) Learning-curve analysis is appropriate when a supplier produces any item for the first time.
C) The learning curve is appropriate when a supplier produces a technically complex item for the first time.
D) All processes and items can benefit from or exhibit improvement from learning.
E) The human factors present at the beginning of production must remain fairly constant over time to apply the learning curve.

Question 59

_____ is a technique used to examine the incremental changes in cost between quantities within a supplier's price quotation.

A) TCO
B) Price analysis
C) Market-share pricing
D) Competition pricing
E) Quantity discount analysis

Question 60

According to Ohno and Toyota, _____ is a category of waste that uses more steps to produce a product than necessary.

A) excess inventory
B) defect
C) unnecessary movement
D) unnecessary transport
E) over-processing

Question 61

In value stream mapping, the flow diagram that depicts process improvements to optimize the value and minimize the non-value-added streams is called a/an _____.

A) current state map
B) future/ideal state map
C) variation map
D) anticipated state map
E) None of the above.

Question 62

_____ actions and resources are those actions in a process that must be done to make the product but create no value for the customer.

A) Non-value-adding
B) Necessary non-value-adding
C) Value-adding
D) Inventory surplus
E) None of the above.

Question 63

_____ actions and resources are those that create value for the customer.

A) Extras
B) Non-value-adding
C) Necessary non-value-adding
D) Value-adding
E) None of the above.

Question 64

In value stream mapping, the flow diagram that depicts the process and shows the times and resources used at each step and the time delay between each step is called a/an _____.

A) anticipated state map
B) future state map
C) ideal state map
D) current state map
E) None of the above.

Question 65

According to Ohno and Toyota, _____ is a category of waste that includes any wasted motion by man or machine.

A) overproduction
B) unnecessary transport
C) unnecessary movement
D) defect
E) None of the above.

Question 66

_____ actions and resources are everything done in the process, which contribute no value to the customer, but which they are forced to pay for when they buy the product or service.

A) Value-adding
B) Excess inventory
C) Necessary non-value-adding
D) Waiting time
E) Non-value-adding

Question 67

According to Ohno and Toyota, _____ is a category of waste that makes the wrong product.

A) overproduction
B) waiting time
C) defect
D) unnecessary movement
E) over-processing