Supply Chain Exam 2 (Chapter 16) | Questions and Answers

Supply Chain Exam 2 (Chapter 16) | Questions and Answers TPS stands for Toyota Production System. TRUE TPS stands for Total Production Streamlining. FALSE Product storage is an example of waste in the sense that no value is added. TRUE In a JIT system, product inspection adds value by identifying defective items. FALSE Customer demand will always remain an unknown, so it is not considered a source of variability. FALSE Variability in manufacturing can occur because engineering drawings or specifications are incomplete or inaccurate. TRUE A push system means providing the next station with exactly what is needed when it is needed. FALSE Waste is anything that does not add value from the consumer's perspective. TRUE Increasing inventory exposes variability in production processes. FALSE 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. TRUE When implemented as a comprehensive operations strategy, JIT, TPS, and lean systems sustain competitive advantage and result in increased overall returns. TRUE What does TPS stand for? A) Total Production Streamlining B) Toyota Production System C) Taguchi's Production S's D) Total Process Simplification E) Transparent Processing System Which of the following is generally found in most lean 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 Which of the following is NOT a source of 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. 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 Which of the following is specifically characterized by continuous and forced problem solving via 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 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. 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. 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 Which of the following is NOT one of the Seven Wastes? A) overproduction B) transportation C) assignment D) defective product E) motion 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. The list of 5Ss, although it looks like a housekeeping directive, supports lean production by: A) identifying non-value items and removing them, in the "sort/segregate" category. B) reducing inventory, in the "standardize" category. C) increasing variability through standardized procedures, in the "standardize" category. D) eliminating wasted motion through ergonomic studies, in the "support" category. E) building good safety practices, in the "shine/sweep" category. JIT brings about competitive advantage by faster response to the customer regardless of cost. FALSE One goal of JIT partnerships is the removal of in-plant inventory by delivery in small lots directly to the using department as needed. TRUE Many suppliers feel that having a variety of customers is better than being tied to long-term contracts with one customer. TRUE JIT suppliers have concerns that the JIT firm's demands for small lot sizes are simply a way of transferring holding cost from the JIT firm to the suppliers. TRUE A common JIT layout tactic is to minimize distance. TRUE Cross-training is a common JIT layout tactic to improve flexibility. TRUE JIT systems carry inventory just in case something goes wrong. FALSE Hidden problems are generally uncovered during the process of reducing inventory. TRUE 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. TRUE 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. TRUE Level scheduling means producing at a constant rate, regardless of customer demands. FALSE With level schedules, a few large batches, rather than frequent small batches, are processed. FALSE The number of kanbans decreases as safety stock is increased. FALSE A kanban system requires that the process has little variability in lead time because shortages impact the entire production system. TRUE The quality management tool called poka-yoke is not relevant to JIT systems. FALSE 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 Which one of the following is not a benefit of JIT implementation? A) cost reduction B) variability increase C) rapid throughput D) quality improvement E) rework reduction 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) Suppliers maintain a variety of customers to reduce risk. D) In-plant inventory replaces in-transit inventory. E) All of the above are consequences of meeting the JIT partnership goals. Which one of the following is a characteristic of a JIT partnership? A) third-party logistics never used 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 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) produce with zero defects. E) focus on core competencies. Which of the following is not a goal of JIT partnerships?