Deck 15: Integrated Production Processes IPP

Question 1

Manufacturing is often the quickest way for developing countries to increase domestic wealth and citizen wages.

Answer 1

True

Question 2

Theoretically, in the push approach to manufacturing, each job consists of a batch of one unit.

Answer 2

False

Question 3

With the pull approach to manufacturing, factory machinery is arranged in clusters or cells.

Answer 3

True

Question 4

Continuous inventory management is an inventory management approach where inventory needs and production capabilities are matched across the entire global enterprise.

Question 5

A process costing is a costing approach where detailed costs to perform activities throughout the value chain are computed and can be managed or assigned to cost objects, including products.

Question 6

Purchase orders convey authority for the manufacture of a specified product or subassembly in specified quantity and describe the material, labor, and machine requirements for the job.

Question 7

Manufacturing resource planning (MRP) is an integrated decision support system for planning, executing, and controlling manufacturing operations.

Question 8

Lifecycle costs are the sum of costs to design, produce, market, deliver, and support a product from conception to ultimate discontinuance.

Question 9

The computer technology application that automates the product design process, including but not limited to the functions of geometric modeling, materials stress and strain analysis, drafting, storing product specifications, and mechanical simulation of a product's performance, is called CAD/CAE.

Question 10

Production systems facilitate integration of all aspects of product design, manufacturing, and marketing processes.

Question 11

Product lifecycle management (PLM) systems are ERP modules or enterprise system add-ons that organize data by product, including designs, manufacturing specifications, quality, and warranty performance.

Question 12

Materials requirements planning is a process that uses bills of material, raw material and WIP inventory status data, open order data, and the master production schedule to calculate a time-phased order requirements schedule for materials and subassemblies.

Question 13

Cycle time is the time it takes from when authorization is made for goods to be produced to when the goods are completed.

Question 14

The inventory production schedule is a statement of specific production goals developed from forecasts of demand, actual sales orders, or inventory information.

Question 15

JIT is a manufacturing philosophy or business strategy for designing production processes that are more responsive to precisely timed customer delivery requirements.

Question 16

An assembly line manufacturing system is a highly automated computer integrated manufacturing system that has its goal of achieving the ability to quickly produce wide varieties of products using the same equipment.

Question 17

The capacity requirements planning (CRP) process uses information from the master production schedule and the time-phased order requirements schedule to develop detailed machine- and labor-use schedules based on available capacity.

Question 18

Cost drivers measure the amount of an activity performed to explain activity costs.

Question 19

Supply chain management software provides available to promise planning and capable to promise planning.

Question 20

In the pull approach to manufacturing, the sales forecast drives the production plan and goods are produced in large batches.

Question 21

Which of the following is not one of the key characteristics of companies that are successful at managing the pressures resulting from global complexity according to the Deloitte Touche report?

A) improved internal business processes in the areas of customers, products, and supply chains
B) better use of technology to increase integration within and among the areas of customers, products and supply chain
C) pursuit of new lucrative marketing channels
D) better general capabilities in the areas of collaboration, flexibility, visibility, and technology

Question 22

Designing ground-breaking products and getting them to market quickly is an example of:

A) product innovation
B) production process innovation
C) supply chain management
D) management accounting systems

Question 23

JIT is often called a kanban process.

Question 24

The process of exploding the BOM involves extending a BOM to determine the total of each component required to manufacture a given quantity of an upper-level assembly or subassembly.

Question 25

An automated storage and retrieval system (AS/RS) is a computer-controlled machine that stores and retrieves parts and tools.

Question 26

The final move ticket data marks the end of the conversion process and the movement of goods to the finished goods warehouse.

Question 27

Computer-aided process planning (CAPP) is an automated decision support system that generates manufacturing operations instructions and routings based on information about machining requirements and machine capabilities.

Question 28

A step master shows the necessary steps and the time to complete each operation to produce a product.

Question 29

Available to promise planning is the accumulation of data on current inventories, sales commitments, planned production and excess production capacity or other planned production capacity that could be quickly converted to production of the desired finished goods necessary to fulfill a sales order request.

Question 30

Which of the following is impacted by flexible costing systems, activity-based costing, shift in cost structure from variable to fixed costs, and reduced direct labor cost component in manufacturing?

A) product innovation
B) production process innovation
C) supply chain management
D) management accounting systems

Question 31

Variance analysis is the process of comparing actual information about input costs and usage to standards.

Question 32

The process of exploding the BOM results in a master production schedule.

Question 33

Which of the following is not one of the key drivers of manufacturing competitiveness in a global market defined by uncertainty, change and complexity according to the Deloitte Touche survey?

A) facing the realities of globalization
B) talent-driven innovation
C) healthcare system
D) local market attractiveness

Question 34

An automated storage and retrieval system (AS/RS) is a computer-based cart system capable of delivering parts and tools among multiple work centers.

Question 35

Which of the following has included management of throughput time and pull manufacturing?

A) product innovation
B) production process innovation
C) supply chain management
D) management accounting systems

Question 36

Computer-aided manufacturing (CAM) is the application of computer and communications technology to improve productivity by linking computer numerical control (CNC) machines, monitoring production, and providing automatic feedback to control operations.

Question 37

The material, labor, and machine requirements for each job are reflected in a manufacturing order.

Question 38

A bill of material contains the standard material quantities that are required to produce one unit of end product.

Question 39

The shop floor control process is devoted to monitoring and recording the status of manufacturing orders as they proceed through the factory.

Question 40

Capable to promise planning is the accumulation of the data on current inventories, sales commitments, and planned production to determine whether the production of finished goods will be sufficient to commit to additional sales orders.

Question 41

Which of the following involves measuring the time from authorization of goods to be produced to when the goods are completed?

A) product lifecycle management
B) throughput time
C) push manufacturing
D) pull manufacturing

Question 42

Which of the following statements is true?

A) Japanese companies have accomplished much in the area of production process innovation, mainly by switching from pull to push manufacturing.
B) Cellular manufacturing organizes machines by department.
C) Adopting the pull approach to manufacturing requires an increase in floor space.
D) In the push approach to manufacturing, the sales forecast drives the production plan, and goods are produced in large batches.

Question 43

Performing a detailed analysis of cost per unit and cost drivers is an essential prerequisite for using:

A) concurrent engineering
B) activity-based costing
C) computer-integrated manufacturing
D) flexible manufacturing

Question 44

Activity-based-costing (ABC) systems are generally prevalent in companies seeking to increase ____ and ____.

A) cost accuracy and usefulness
B) cost accumulation and cost assignment
C) cost allocation and cost containment
D) product costing and cost allocation

Question 45

The objectives of computer-aided design (CAD) and computer-aided engineering (CAE) are all of the following except:

A) improve design productivity
B) reduce design lead time
C) increase redundant design effort
D) enhance design quality

Question 46

The implementation features of just-in-time (JIT) manufacturing typically include all of the following except:

A) arranging the factory in work cells
B) assigning each worker to a single machine
C) allowing workers to stop the production line
D) requiring that the daily production schedule remain fairly constant

Question 47

Which of the following involves short production runs, continuous flow of operations, cellular manufacturing, reduced floor space, and reduced WIP?

A) product lifecycle management
B) throughput time
C) push manufacturing
D) pull manufacturing

Question 48

Which of the following often includes global inventory management?

A) design product and production processes
B) generate master production schedule
C) determine needs for materials
D) develop detailed production instructions

Question 49

The Level 0 data flow diagram for the integrated production process includes all of the following process bubbles except:

A) design product and production processes
B) generate master distribution schedule
C) determine needs for materials
D) record manufacturing events

Question 50

Which of the following components is not part of a flexible manufacturing system (FMS)?

A) manufacturing resource planning (MRP)
B) Computer-aided manufacturing (CAM)
C) automated storage and retrieval systems(AS/RS)
D) automated guided vehicle systems (AGVS)

Question 51

Which of the following specifies the operations necessary to complete a subassembly or finished good and the sequence of operations?

A) parts master
B) routing master
C) work center master
D) bill of materials

Question 52

Which of the following develops detailed machine- and labor-use schedules that consider available capacity?

A) capacity requirements planning (CRP)
B) capable to promise planning (CTP)
C) computer-aided process planning (CAPP)
D) computer-aided manufacturing (CAM)

Question 53

Which of the following statements is false?

A) With the pull approach to manufacturing, factory machinery typically is arranged in factory cells.
B) The pull approach to manufacturing should lead to reduced work in process and finished goods inventories.
C) The pull approach to manufacturing should lead to shorter production runs.
D) Enterprise resource planning (ERP) employs a pull approach to manufacturing.

Question 54

Prevailing trends in production systems reflect all of the following except:

A) emphasis on customer satisfaction
B) shortened product lifecycles
C) increased factory automation
D) the change from "pull" to "push" production scheduling

Question 55

Which of the following is a statement of specific production goals developed from forecasts of demand, actual sales orders, or inventory information?

A) a master production schedule (MPS)
B) materials requirements planning (MRP)
C) shop floor control (SFC)
D) just-in-time (JIT) manufacturing

Question 56

The objectives of just-in-time (JIT) manufacturing usually include all of the following except:

A) large lot sizes
B) zero defects
C) zero setup times
D) zero lead times

Question 57

Which of the following is an ERP add on system that organizes data by product, including designs, manufacturing specifications, quality and warranty performance?

A) product lifecycle management
B) throughput
C) push manufacturing
D) pull manufacturing

Question 58

Which of the following lists the detailed specifications for each raw materials item?

A) parts master
B) routing master
C) work center master
D) bill of materials

Question 59

Trends in cost management/cost accounting include all of the following except:

A) reductions in the administrative costs of gathering data
B) a trend toward job order cost systems and away from process cost systems
C) adding a fourth cost category called direct technology
D) reduction in the direct labor cost component

Question 60

Pull manufacturing should lead to all of the following except:

A) short production runs
B) increased work in process and finished goods inventories
C) continuous flow operations
D) a cellular arrangement of factory machinery

Question 61

Inventory process controls to protect inventory assets include:

A) warehouse bin location
B) periodic physical inventory counts
C) internal transfer procedures
D) Just-in-time materials acquisition

Question 62

Theoretically, in the ______________________________ approach to manufacturing, each job consists of a batch of one unit.

Question 63

The entire design process is automated through the use of:

A) AS/RS
B) AGVS
C) CAD/CAE
D) CAM

Question 64

Materials requirements planning (mrp) normally would use all of the following inputs except:

A) master production schedule (MPS)
B) bill of materials
C) routing file
D) raw materials inventory status data

Question 65

The raw material quantity variance can be determined by:

A) an excess RM issue notice
B) a RM returned notice
C) both a and b
D) none of the above

Question 66

______________________________ is the time it takes from when authorization is made for goods to be produced to when the goods are completed.

Question 67

This shows when a manufacturing order or purchase order should be released so that the subassemblies and raw materials will be available when needed.

A) bill of materials
B) routing sheet
C) time-phased order requirements schedule
D) parts master file

Question 68

The process of comparing actual information about input costs and usage to standards is:

A) standard costing
B) process costing
C) variance analysis
D) Activity-based costing

Question 69

Which of the following is not an inventory process control?

A) JIT materials acquisition
B) locked storerooms
C) periodic inventory systems
D) physical counts

Question 70

In the ______________________________ approach to manufacturing, the sales forecast drives the production plan and goods are produced in large batches.

Question 71

Sales forecasts drive the production plan and goods are produced in large batches with this type of manufacturing:

A) pull
B) push
C) JIT
D) SCM

Question 72

Which of the following inventory frauds is not identified by Practice Alert No. 94-2: Auditing Inventories-Physical Observations?

A) double-counting inventory
B) counting obsolete inventory as salable
C) including inventory for which the corresponding payable has not been recorded
D) employee theft of inventory item having high sales volume

Question 73

The total quality control (TCQ) approach places responsibility for quality control in the hands of the:

A) shop floor control process
B) managerial accountant
C) inspector
D) builder

Question 74

______________________________ are ERP modules or enterprise systems add-ons that organize data by product, including designs, manufacturing specifications, quality, and warranty performance.

Question 75

The AICPA's Practice Alert No. 94-2: Auditing Inventories-Physical Observations describes several circumstances that constitute inventory fraud. Which of the following is not an example of inventory fraud?

A) including items in inventory when the corresponding payable has not been recorded
B) adjusting inventory to lower-of-cost-or-market
C) increasing counts for items that auditors did not test count
D) counting obsolete inventory as salable or usable

Question 76

What conveys authority for the manufacture of a specified product or subassembly in a specified quantity and describe the material, labor, and machine requirements for the job?

A) capacity requirements planning (CRP)
B) manufacturing orders (MO)
C) capable to promise planning (CTP)
D) computer-aided process planning (CAPP)

Question 77

With the pull approach to manufacturing, factory machinery is arranged in ______________________________.

Question 78

Production is initiated as individual sales orders are received with this type of manufacturing:

A) pull
B) push
C) JIT
D) SCM

Question 79

Which is a listing of all the subassemblies, parts, and raw materials that go into a parent assembly showing the quantity of each that is required to make an assembly?

A) bill of materials
B) time-phased order requirements schedule
C) routing master
D) master production schedule

Question 80

______________________________ systems facilitate the integration of all aspects of product design, manufacturing, and marketing.