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MBA Operations Management - 2017 - 11th Edition (Krajewski) - Quiz - Chapter 6

MBA Operations Management

MBA Operations Management - 2017

Operations Management, 11e (Krajewski et al.)

Chapter 6: Lean Systems 

Operations Management, 11e (Krajewski et al.)

Chapter 6: Lean Systems

 

6.1  Continuous Improvement Using a Lean Systems Approach

 

1) The just-in-time (JIT) philosophy is the belief that cutting inventory and removing non-value-added activities in operations can eliminate waste.

Answer:  TRUE

Reference:  Continuous Improvement Using a Lean Systems Approach

Difficulty:  Easy

Keywords:  JIT, just-in-time, value added, inventory, non-value-added

Learning Outcome:  Describe the advantages and disadvantages of various production strategies such as lean, Theory of Constraints, JIT, and Six Sigma

AACSB:  Application of Knowledge

 

2) Kaizen is the Japanese term for continuous improvement.

Answer:  TRUE

Reference:  Continuous Improvement Using a Lean Systems Approach

Difficulty:  Easy

Keywords:  lean systems, inventory, types of waste

Learning Outcome:  Describe the advantages and disadvantages of various production strategies such as lean, Theory of Constraints, JIT, and Six Sigma

AACSB:  Application of Knowledge

 

3) In a lean system, large inventories are not considered a type of waste, because they prevent operator wait times.

Answer:  FALSE

Reference:  Continuous Improvement Using a Lean Systems Approach

Difficulty:  Easy

Keywords:  lean systems, wait times, types of waste

Learning Outcome:  Describe the advantages and disadvantages of various production strategies such as lean, Theory of Constraints, JIT, and Six Sigma

AACSB:  Application of Knowledge

 

4) In a lean system, an item that is manufactured before it is needed is not considered waste, because it helps keep material flowing through the system.

Answer:  FALSE

Reference:  Continuous Improvement Using a Lean Systems Approach

Difficulty:  Moderate

Keywords:  lean systems, types of waste, overproduction

Learning Outcome:  Describe the advantages and disadvantages of various production strategies such as lean, Theory of Constraints, JIT, and Six Sigma

AACSB:  Application of Knowledge

 

 

5) In manufacturing systems, one way to achieve continuous improvement can be to maintain low inventories, and periodically cut safety stocks almost to zero.

Answer:  TRUE

Reference:  Continuous Improvement Using a Lean Systems Approach

Difficulty:  Moderate

Keywords:  lean systems, manufacturing systems, value added

Learning Outcome:  Describe the advantages and disadvantages of various production strategies such as lean, Theory of Constraints, JIT, and Six Sigma

AACSB:  Application of Knowledge

6) In a lean system, the key to continuous improvement is the understanding that excess capacity or inventory hides problems on the shop floor and thus prevents waste sources from being identified and eliminated.

Answer:  TRUE

Reference:  Continuous Improvement Using a Lean Systems Approach

Difficulty:  Easy

Keywords:  lean systems, types of waste, inventory

Learning Outcome:  Describe the advantages and disadvantages of various production strategies such as lean, Theory of Constraints, JIT, and Six Sigma

AACSB:  Application of Knowledge

 

7) In lean systems, work-in-process inventory is a direct result of overproduction and waiting.

Answer:  TRUE

Reference:  Continuous Improvement Using a Lean Systems Approach

Difficulty:  Moderate

Keywords:  lean systems, types of waste, inventory, overproduction, waiting

Learning Outcome:  Describe the advantages and disadvantages of various production strategies such as lean, Theory of Constraints, JIT, and Six Sigma

AACSB:  Application of Knowledge

 

8) Long production runs, poor material flows, and processes that are not tightly linked to one another can cause over 90% of a product's lead time to be spent waiting.

Answer:  TRUE

Reference:  Continuous Improvement Using a Lean Systems Approach

Difficulty:  Moderate

Keywords:  lean systems, types of waste, long production runs, material flow, overproduction, waiting

Learning Outcome:  Describe the advantages and disadvantages of various production strategies such as lean, Theory of Constraints, JIT, and Six Sigma

AACSB:  Application of Knowledge

 

 

9) The just-in-time (JIT) system is a(n):

  1. A) management system of people and procedures to fulfill all delivery deadlines.
  2. B) production system of small-lot manufacturing to reduce work-in-process inventory.
  3. C) materials management system for removing all inventories.
  4. D) integrated system of managing resources, information, and decision processes to eliminate waste.

Answer:  D

Reference:  Continuous Improvement Using a Lean Systems Approach

Difficulty:  Moderate

Keywords:  JIT, just-in-time, integrated system, waste elimination

Learning Outcome:  Describe the advantages and disadvantages of various production strategies such as lean, Theory of Constraints, JIT, and Six Sigma

AACSB:  Application of Knowledge

10) Regarding the Eight Types of Waste that must be eliminated to implement lean systems, excessive movement and material handling of product between processes is part of which general waste category?

  1. A) Motion
  2. B) Transportation
  3. C) Inappropriate Processing
  4. D) Underutilization of Employees

Answer:  B

Reference:  Continuous Improvement Using a Lean Systems Approach

Difficulty:  Easy

Keywords:  types of waste, transportation

Learning Outcome:  Describe the advantages and disadvantages of various production strategies such as lean, Theory of Constraints, JIT, and Six Sigma

AACSB:  Application of Knowledge

 

11) Regarding the Eight Types of Waste that must be eliminated to implement lean systems, using expensive high precision equipment when a simpler machine would suffice is part of which general waste category?

  1. A) Motion
  2. B) Overproduction
  3. C) Inappropriate Processing
  4. D) Defects

Answer:  C

Reference:  Continuous Improvement Using a Lean Systems Approach

Difficulty:  Easy

Keywords:  types of waste, inappropriate processing

Learning Outcome:  Describe the advantages and disadvantages of various production strategies such as lean, Theory of Constraints, JIT, and Six Sigma

AACSB:  Application of Knowledge

 

 

12) Which of the following statements is TRUE with regard to the eight types of waste that must be eliminated to implement lean systems?

  1. A) Jobs with excessive motion should be redesigned.
  2. B) Work-in-process inventory is the direct result of underutilization of employees.
  3. C) Manufacturing an item before it is needed helps an organization detect and reduce defects.
  4. D) Product damage and deterioration result from using expensive high precision equipment.

Answer:  A

Reference:  Continuous Improvement Using a Lean Systems Approach

Difficulty:  Moderate

Keywords:  types of waste, motion

Learning Outcome:  Describe the advantages and disadvantages of various production strategies such as lean, Theory of Constraints, JIT, and Six Sigma

AACSB:  Application of Knowledge

13) Regarding the Eight Types of Waste that must be eliminated to implement lean systems, manufacturing an item before it is needed is part of which general waste category?

  1. A) Inappropriate Processing
  2. B) Waiting
  3. C) Inventory
  4. D) Overproduction

Answer:  D

Reference:  Continuous Improvement Using a Lean Systems Approach

Difficulty:  Easy

Keywords:  types of waste, overproduction

Learning Outcome:  Describe the advantages and disadvantages of various production strategies such as lean, Theory of Constraints, JIT, and Six Sigma

AACSB:  Application of Knowledge

 

14) Continuous improvement with lean systems:

  1. A) involves navigating a ship over treacherous rocks.
  2. B) requires periodically increasing lot sizes or workforce levels to uncover problems.
  3. C) entails systematically stressing the system and focusing on problem areas.
  4. D) focuses exclusively on internal operations without addressing relationships with customers and suppliers.

Answer:  C

Reference:  Continuous Improvement Using a Lean Systems Approach

Difficulty:  Moderate

Keywords:  lean system

Learning Outcome:  Describe the advantages and disadvantages of various production strategies such as lean, Theory of Constraints, JIT, and Six Sigma

AACSB:  Application of Knowledge

 

 

15) What did the production manager say to the pile of scrapped material?

  1. A) "Hello muda."
  2. B) "Hello fadduh."
  3. C) "We need more kanbans."
  4. D) "JIT II Brute?"

Answer:  A

Reference:  Continuous Improvement Using a Lean Systems Approach

Difficulty:  Easy

Keywords:  muda, waste

Learning Outcome:  Describe the advantages and disadvantages of various production strategies such as lean, Theory of Constraints, JIT, and Six Sigma

AACSB:  Application of Knowledge

 

16) ________ is the philosophy that waste can be eliminated by cutting unnecessary inventory and removing non-value-adding activities in operations.

Answer:  Just-in-time, JIT

Reference:  Continuous Improvement Using a Lean Systems Approach

Difficulty:  Easy

Keywords:  JIT, just-in-time, waste elimination, inventory, non-value-adding activities

Learning Outcome:  Describe the advantages and disadvantages of various production strategies such as lean, Theory of Constraints, JIT, and Six Sigma

AACSB:  Application of Knowledge

17) The Japanese term for continuous improvement in quality and productivity is ________.

Answer:  Kaizen

Reference:  Continuous Improvement Using a Lean Systems Approach

Difficulty:  Moderate

Keywords:  Kaizen, continuous improvement

Learning Outcome:  Describe the advantages and disadvantages of various production strategies such as lean, Theory of Constraints, JIT, and Six Sigma

AACSB:  Application of Knowledge

 

 

18) List and briefly define the eight types of waste (or muda) that often occur in firms which must be eliminated in implementing lean systems.

Answer:  Refer to Table 6.1 in the text.

  1. Overproduction Manufacturing an item before it is needed, making it difficult to detect defects and creating excessive lead times and inventory.
  2. Inappropriate Processing Using expensive high-precision equipment when simpler machines would suffice. It leads to overutilization of expensive capital assets. Investment in smaller flexible equipment, immaculately maintained older machines, and combining process steps where appropriate reduce the waste associated with inappropriate processing.
  3. Waiting Wasteful time incurred when product is not being moved or processed. Long production runs, poor material flows, and pro- cesses that are not tightly linked to one another can cause over 90 percent of a product's lead time to be spent waiting.
  4. Transportation Excessive movement and material handling of product between processes, which can cause damage and deterioration of product quality without adding any significant customer value.
  5. Motion Unnecessary effort related to the ergonomics of bending, stretching, reaching, lifting, and walking. Jobs with excessive motion should be redesigned.
  6. Inventory Excess inventory hides problems on the shop floor, consumes space, increases lead times, and inhibits communication. Work-in-process inventory is a direct result of overproduction and waiting.
  7. Defects Quality defects result in rework and scrap and add wasteful costs to the system in the form of lost capacity, rescheduling effort, increased inspection, and loss of customer goodwill.
  8. Underutilization of Employees Failure of the firm to learn from and capitalize on its employees' knowledge and creativity impedes long-term efforts to eliminate waste.

Reference:  Continuous Improvement Using a Lean Systems Approach

Difficulty:  Hard

Keywords:  muda, waste, eight types of waste

Learning Outcome:  Describe the advantages and disadvantages of various production strategies such as lean, Theory of Constraints, JIT, and Six Sigma

AACSB:  Application of Knowledge

 

6.2  Strategic Characteristics of Lean Systems

 

1) Just-in-time (JIT) systems need close relationships with suppliers.

Answer:  TRUE

Reference:  Strategic Characteristics of Lean Systems

Difficulty:  Moderate

Keywords:  JIT, just-in-time, supplier relationship

Learning Outcome:  Describe the advantages and disadvantages of various production strategies such as lean, Theory of Constraints, JIT, and Six Sigma

AACSB:  Application of Knowledge

 

2) JIT II refers to a form of supplier partnership that places a supplier representative, who is empowered to plan and schedule the replenishment of materials from the supplier, in the customer's plant on a full-time basis.

Answer:  TRUE

Reference:  Strategic Characteristics of Lean Systems

Difficulty:  Moderate

Keywords:  JIT II, supplier partnership, supplier in-plant representative

Learning Outcome:  Describe the advantages and disadvantages of various production strategies such as lean, Theory of Constraints, JIT, and Six Sigma

AACSB:  Application of Knowledge

 

3) In lean systems, the need for single-digit setups is driven by the desire for small lot sizes.

Answer:  TRUE

Reference:  Strategic Characteristics of Lean Systems

Difficulty:  Moderate

Keywords:  lean systems, small lot sizes, single-digit setup

Learning Outcome:  Describe the advantages and disadvantages of various production strategies such as lean, Theory of Constraints, JIT, and Six Sigma

AACSB:  Application of Knowledge

 

4) Push systems are often used in firms with highly repetitive processes and well defined work flows of standardized items.

Answer:  FALSE

Reference:  Strategic Characteristics of Lean Systems

Difficulty:  Moderate

Keywords:  push production, repetitive processes, defined work flows, standardized items

Learning Outcome:  Describe the advantages and disadvantages of various production strategies such as lean, Theory of Constraints, JIT, and Six Sigma

AACSB:  Application of Knowledge

 

5) Firms that have highly repetitive processes and well-defined work flows of standardized items often use the pull method.

Answer:  TRUE

Reference:  Strategic Characteristics of Lean Systems

Difficulty:  Moderate

Keywords:  pull production, repetitive processes, defined work flows, standardized items

Learning Outcome:  Describe the advantages and disadvantages of various production strategies such as lean, Theory of Constraints, JIT, and Six Sigma

AACSB:  Application of Knowledge

 

 

6) Just-in-time (JIT) systems rely on inspectors to inspect quality into the product.

Answer:  FALSE

Reference:  Strategic Characteristics of Lean Systems

Difficulty:  Easy

Keywords:  JIT, just-in-time, quality

Learning Outcome:  Describe the advantages and disadvantages of various production strategies such as lean, Theory of Constraints, JIT, and Six Sigma

AACSB:  Application of Knowledge

7) Quality at the source is a philosophy whereby defects are caught and corrected where they are created.

Answer:  TRUE

Reference:  Strategic Characteristics of Lean Systems

Difficulty:  Easy

Keywords:  lean systems, quality at the source

Learning Outcome:  Describe the advantages and disadvantages of various production strategies such as lean, Theory of Constraints, JIT, and Six Sigma

AACSB:  Application of Knowledge

 

8) Automatically stopping the process when something is wrong and then fixing the problems on the line itself as they occur is called jidoka.

Answer:  TRUE

Reference:  Strategic Characteristics of Lean Systems

Difficulty:  Moderate

Keywords:  jidoka

Learning Outcome:  Describe the advantages and disadvantages of various production strategies such as lean, Theory of Constraints, JIT, and Six Sigma

AACSB:  Application of Knowledge

 

9) A power cord that can be plugged in only one way is an example of a poka-yoke.

Answer:  TRUE

Reference:  Strategic Characteristics of Lean Systems

Difficulty:  Moderate

Keywords:  poka-yoke, mistake-proofing

Learning Outcome:  Describe the advantages and disadvantages of various production strategies such as lean, Theory of Constraints, JIT, and Six Sigma

AACSB:  Application of Knowledge

 

10) Takt time is the cycle time needed to match the rate of production to the rate of sales.

Answer:  TRUE

Reference:  Strategic Characteristics of Lean Systems

Difficulty:  Moderate

Keywords:  takt time

Learning Outcome:  Describe the advantages and disadvantages of various production strategies such as lean, Theory of Constraints, JIT, and Six Sigma

AACSB:  Application of Knowledge

 

11) Takt time is the cycle time needed to maximize utilization of an organization's workers and equipment.

Answer:  FALSE

Reference:  Strategic Characteristics of Lean Systems

Difficulty:  Moderate

Keywords:  takt time

Learning Outcome:  Describe the advantages and disadvantages of various production strategies such as lean, Theory of Constraints, JIT, and Six Sigma

AACSB:  Application of Knowledge

12) A firm that averages sales of 320 units for every 480-minute shift it runs has a takt time of 90 seconds.

Answer:  TRUE

Reference:  Strategic Characteristics of Lean Systems

Difficulty:  Moderate

Keywords:  takt time

Learning Outcome:  Describe the advantages and disadvantages of various production strategies such as lean, Theory of Constraints, JIT, and Six Sigma

AACSB:  Analytical Thinking

 

13) Heijunka is the leveling of production load by both volume and product mix.

Answer:  TRUE

Reference:  Strategic Characteristics of Lean Systems

Difficulty:  Moderate

Keywords:  heijunka

Learning Outcome:  Describe the advantages and disadvantages of various production strategies such as lean, Theory of Constraints, JIT, and Six Sigma

AACSB:  Application of Knowledge

 

14) Mixed-model assembly is a type of assembly that produces a mix of models in smaller lots.

Answer:  TRUE

Reference:  Strategic Characteristics of Lean Systems

Difficulty:  Moderate

Keywords:  mixed model assembly, small lot size

Learning Outcome:  Describe the advantages and disadvantages of various production strategies such as lean, Theory of Constraints, JIT, and Six Sigma

AACSB:  Application of Knowledge

 

15) Productivity tends to increase when components are standardized because each worker performs a standardized task or work method more often each day.

Answer:  TRUE

Reference:  Strategic Characteristics of Lean Systems

Difficulty:  Moderate

Keywords:  productivity, standardized components, standardized work method

Learning Outcome:  Describe the advantages and disadvantages of various production strategies such as lean, Theory of Constraints, JIT, and Six Sigma

AACSB:  Application of Knowledge

 

16) Five S practices can enable workers to visually see everything differently, prioritize tasks, and achieve a greater degree of focus.

Answer:  TRUE

Reference:  Strategic Characteristics of Lean Systems

Difficulty:  Moderate

Keywords:  5S, five S

Learning Outcome:  Describe the advantages and disadvantages of various production strategies such as lean, Theory of Constraints, JIT, and Six Sigma

AACSB:  Application of Knowledge

17) Five S practices can be applied to both manufacturing and service settings and can include offices, work spaces, tool rooms, and shop floors.

Answer:  TRUE

Reference:  Strategic Characteristics of Lean Systems

Difficulty:  Moderate

Keywords:  5S, five S

Learning Outcome:  Describe the advantages and disadvantages of various production strategies such as lean, Theory of Constraints, JIT, and Six Sigma

AACSB:  Application of Knowledge

 

18) Preventive maintenance is typically given very low priority in just-in-time systems.

Answer:  FALSE

Reference:  Strategic Characteristics of Lean Systems

Difficulty:  Easy

Keywords:  preventive maintenance, JIT, just-in-time

Learning Outcome:  Describe the advantages and disadvantages of various production strategies such as lean, Theory of Constraints, JIT, and Six Sigma

AACSB:  Application of Knowledge

 

19) One tactic of Total Preventive Maintenance (TPM) is to make workers responsible for routine minor maintenance of their own equipment.

Answer:  TRUE

Reference:  Strategic Characteristics of Lean Systems

Difficulty:  Moderate

Keywords:  Total Preventive Maintenance (TPM)

Learning Outcome:  Describe the advantages and disadvantages of various production strategies such as lean, Theory of Constraints, JIT, and Six Sigma

AACSB:  Application of Knowledge

 

 

20) While lean systems work very well for manufacturing systems, they cannot be applied to service systems.

Answer:  FALSE

Reference:  Strategic Characteristics of Lean Systems

Difficulty:  Easy

Keywords:  lean systems, manufacturing systems, service systems

Learning Outcome:  Describe the advantages and disadvantages of various production strategies such as lean, Theory of Constraints, JIT, and Six Sigma

AACSB:  Application of Knowledge

 

21) Toyota sets up all of its operations as experiments and teaches employees at all levels how to use the trial and error method of problem solving.

Answer:  FALSE

Reference:  Strategic Characteristics of Lean Systems

Difficulty:  Easy

Keywords:  Toyota production system, scientific method

Learning Outcome:  Describe the advantages and disadvantages of various production strategies such as lean, Theory of Constraints, JIT, and Six Sigma

AACSB:  Application of Knowledge

22) In the Toyota Production System, when a work station needs more material, it is obvious to both the worker and the supplier that material is needed. Further, the amount needed must be understood as well as the delivery time for replenishment.

Answer:  TRUE

Reference:  Strategic Characteristics of Lean Systems

Difficulty:  Easy

Keywords:  TPS, Toyota production system, customer-supplier connection

Learning Outcome:  Describe the advantages and disadvantages of various production strategies such as lean, Theory of Constraints, JIT, and Six Sigma

AACSB:  Application of Knowledge

 

23) The Toyota Production System requires that any process improvements are to be made at the lowest level of the organization.

Answer:  TRUE

Reference:  Strategic Characteristics of Lean Systems

Difficulty:  Easy

Keywords:  Toyota production system

Learning Outcome:  Describe the advantages and disadvantages of various production strategies such as lean, Theory of Constraints, JIT, and Six Sigma

AACSB:  Application of Knowledge

 

 

24) In the Toyota Production System, services and goods flow to the next available person or machine to maintain smooth, rapid flow.

Answer:  FALSE

Reference:  Strategic Characteristics of Lean Systems

Difficulty:  Moderate

Keywords:  Toyota production system, pathway

Learning Outcome:  Describe the advantages and disadvantages of various production strategies such as lean, Theory of Constraints, JIT, and Six Sigma

AACSB:  Application of Knowledge

 

25) Lean systems try to:

  1. A) produce a product in anticipation of demand.
  2. B) maximize the value added by each of its activities.
  3. C) organize production in large lots to minimize the number of setups.
  4. D) reduce the labor content in all processes.

Answer:  B

Reference:  Strategic Characteristics of Lean Systems

Difficulty:  Moderate

Keywords:  lean system, value added

Learning Outcome:  Describe the advantages and disadvantages of various production strategies such as lean, Theory of Constraints, JIT, and Six Sigma

AACSB:  Application of Knowledge

26) Companies using lean systems generally have:

  1. A) many suppliers to ensure that material shortages never occur.
  2. B) suppliers that are located nearby to decrease delivery lead time.
  3. C) suppliers that are willing to accept short-term contracts.
  4. D) suppliers who are low-cost producers.

Answer:  B

Reference:  Strategic Characteristics of Lean Systems

Difficulty:  Moderate

Keywords:  supplier

Learning Outcome:  Describe the advantages and disadvantages of various production strategies such as lean, Theory of Constraints, JIT, and Six Sigma

AACSB:  Application of Knowledge

 

 

27) Lean systems maintain inventory in small lot sizes because small lot sizes:

  1. A) increase pipeline inventory, allowing the organization to buffer against demand uncertainties.
  2. B) increase the quality level of the product.
  3. C) enable schedules to use machine capacities more efficiently.
  4. D) increase manufacturing lead time because of the increase in waiting time.

Answer:  C

Reference:  Strategic Characteristics of Lean Systems

Difficulty:  Moderate

Keywords:  lot size

Learning Outcome:  Describe the advantages and disadvantages of various production strategies such as lean, Theory of Constraints, JIT, and Six Sigma

AACSB:  Application of Knowledge

 

28) The goal of single-digit setups is to have a setup time:

  1. A) of less than one shift.
  2. B) of less than one hour.
  3. C) of less than 30 minutes.
  4. D) of less than 10 minutes.

Answer:  D

Reference:  Strategic Characteristics of Lean Systems

Difficulty:  Easy

Keywords:  single-digit setup

Learning Outcome:  Describe the advantages and disadvantages of various production strategies such as lean, Theory of Constraints, JIT, and Six Sigma

AACSB:  Application of Knowledge

 

29) The lean system concept will not work without the proper environment. Which one of the following characteristics is most common to firms that have successfully implemented a lean system?

  1. A) uniform assembly schedules
  2. B) specialized workforce
  3. C) high rates of machine failures
  4. D) longer setup times

Answer:  A

Reference:  Strategic Characteristics of Lean Systems

Difficulty:  Moderate

Keywords:  lean system

Learning Outcome:  Describe the advantages and disadvantages of various production strategies such as lean, Theory of Constraints, JIT, and Six Sigma

AACSB:  Application of Knowledge

 

30) There are many requirements for the successful implementation of the lean system of production. Which one of the following is not such a requirement?

  1. A) uniform assembly schedule
  2. B) short setup time
  3. C) low machine failure and low defects
  4. D) substantial natural resources

Answer:  D

Reference:  Strategic Characteristics of Lean Systems

Difficulty:  Moderate

Keywords:  lean system

Learning Outcome:  Describe the advantages and disadvantages of various production strategies such as lean, Theory of Constraints, JIT, and Six Sigma

AACSB:  Application of Knowledge

 

31) Using customer demand to activate production of an item or service is called:

  1. A) the andon method.
  2. B) the pull method.
  3. C) the jidoka method.
  4. D) the push method.

Answer:  B

Reference:  Strategic Characteristics of Lean Systems

Difficulty:  Moderate

Keywords:  lean system, pull method

Learning Outcome:  Describe the advantages and disadvantages of various production strategies such as lean, Theory of Constraints, JIT, and Six Sigma

AACSB:  Application of Knowledge

 

32) A method in which production of an item begins in advance of customer needs is called:

  1. A) the andon method.
  2. B) the pull method.
  3. C) the jidoka method.
  4. D) the push method.

Answer:  D

Reference:  Strategic Characteristics of Lean Systems

Difficulty:  Moderate

Keywords:  lean system, push method

Learning Outcome:  Describe the advantages and disadvantages of various production strategies such as lean, Theory of Constraints, JIT, and Six Sigma

AACSB:  Application of Knowledge

 

 

33) Automatically stopping the process when something is wrong and then fixing the problems on the line itself as they occur is known as:

  1. A) andon.
  2. B) muda.
  3. C) jidoka.
  4. D) poka-yoke.

Answer:  C

Reference:  Strategic Characteristics of Lean Systems

Difficulty:  Moderate

Keywords:  lean system, jidoka

Learning Outcome:  Describe the advantages and disadvantages of various production strategies such as lean, Theory of Constraints, JIT, and Six Sigma

AACSB:  Application of Knowledge

34) Mistake-proofing is known by the term:

  1. A) andon.
  2. B) muda.
  3. C) jidoka.
  4. D) poka-yoke.

Answer:  D

Reference:  Strategic Characteristics of Lean Systems

Difficulty:  Moderate

Keywords:  poka-yoke, mistake-proofing

Learning Outcome:  Describe the advantages and disadvantages of various production strategies such as lean, Theory of Constraints, JIT, and Six Sigma

AACSB:  Application of Knowledge

 

35) Items to be assembled that fit together only the proper way are an example of:

  1. A) andon.
  2. B) jidoka.
  3. C) poka-yoke.
  4. D) muda.

Answer:  C

Reference:  Strategic Characteristics of Lean Systems

Difficulty:  Moderate

Keywords:  poka-yoke, mistake-proofing

Learning Outcome:  Describe the advantages and disadvantages of various production strategies such as lean, Theory of Constraints, JIT, and Six Sigma

AACSB:  Application of Knowledge

 

 

36) In lean systems, if a defective product is found, which of the following is generally NOT done?

  1. A) The production line is stopped.
  2. B) The defective unit is passed on to the next workstation.
  3. C) The defective unit is returned to the worker responsible for creating the defect.
  4. D) The production line is made aware of the problem without necessarily stopping the line.

Answer:  B

Reference:  Strategic Characteristics of Lean Systems

Difficulty:  Moderate

Keywords:  lean systems, quality at the source

Learning Outcome:  Describe the advantages and disadvantages of various production strategies such as lean, Theory of Constraints, JIT, and Six Sigma

AACSB:  Application of Knowledge

 

37) The takt time of a process is defined as:

  1. A) the cycle time needed to match the rate of production to the rate of consumption.
  2. B) the total time required to move an item through a process.
  3. C) the time required to change a machine to run a new model.
  4. D) the lead time necessary to notify maintenance that a problem has occurred in an operation.

Answer:  A

Reference:  Strategic Characteristics of Lean Systems

Difficulty:  Moderate

Keywords:  lean system, takt time, production rate, consumption rate

Learning Outcome:  Describe the advantages and disadvantages of various production strategies such as lean, Theory of Constraints, JIT, and Six Sigma

AACSB:  Application of Knowledge

38) The production of 240 units during a 480-minute work shift results in a takt time of:

  1. A) 24 seconds.
  2. B) 30 seconds.
  3. C) 120 seconds.
  4. D) 240 seconds.

Answer:  C

Reference:  Strategic Characteristics of Lean Systems

Difficulty:  Easy

Keywords:  takt time

Learning Outcome:  Describe the advantages and disadvantages of various production strategies such as lean, Theory of Constraints, JIT, and Six Sigma

AACSB:  Analytical Thinking

 

 

39) A takt time of 90 seconds generates a process output of:

  1. A) 40 units per hour.
  2. B) 30 units per hour.
  3. C) 4 units per hour.
  4. D) 90 units per hour.

Answer:  A

Reference:  Strategic Characteristics of Lean Systems

Difficulty:  Moderate

Keywords:  takt time, process output

Learning Outcome:  Describe the advantages and disadvantages of various production strategies such as lean, Theory of Constraints, JIT, and Six Sigma

AACSB:  Analytical Thinking

 

40) The production of 150 units during a 480-minute work shift results in a takt time of:

  1. A) 150 seconds.
  2. B) 192 seconds.
  3. C) 120 seconds.
  4. D) 18.8 seconds.

Answer:  B

Reference:  Strategic Characteristics of Lean Systems

Difficulty:  Moderate

Keywords:  takt time

Learning Outcome:  Describe the advantages and disadvantages of various production strategies such as lean, Theory of Constraints, JIT, and Six Sigma

AACSB:  Analytical Thinking

 

41) Justin Thyme used to run one batch each of 500 As, 300 Bs and 100 Cs every month but now he runs a batch of 5 As, 3 Bs, and 1 C every half day with the use of:

  1. A) single-digit setups.
  2. B) andon lights.
  3. C) mixed-model assembly.
  4. D) push method.

Answer:  C

Reference:  Strategic Characteristics of Lean Systems

Difficulty:  Moderate

Keywords:  lean system, mixed-model assembly

Learning Outcome:  Describe the advantages and disadvantages of various production strategies such as lean, Theory of Constraints, JIT, and Six Sigma

AACSB:  Analytical Thinking

 

42) Lean systems use the standardization of components because standardization:

  1. A) decreases the demand for each component.
  2. B) increases repeatability.
  3. C) allows for small lot sizes more easily.
  4. D) decreases repeatability.

Answer:  B

Reference:  Strategic Characteristics of Lean Systems

Difficulty:  Moderate

Keywords:  lean system

Learning Outcome:  Describe the advantages and disadvantages of various production strategies such as lean, Theory of Constraints, JIT, and Six Sigma

AACSB:  Application of Knowledge

 

43) Weeding out unnecessary items, neatly arranging what's left, and cleaning the work area are components of:

  1. A) a Kanban system.
  2. B) a constraint management system.
  3. C) mixed-model assembly.
  4. D) a 5S program.

Answer:  D

Reference:  Strategic Characteristics of Lean Systems

Difficulty:  Easy

Keywords:  5S, five S

Learning Outcome:  Describe the advantages and disadvantages of various production strategies such as lean, Theory of Constraints, JIT, and Six Sigma

AACSB:  Application of Knowledge

 

44) "When in doubt, weed it out" describes which 5S element?

  1. A) Sort
  2. B) Straighten
  3. C) Shine
  4. D) Standardize

Answer:  A

Reference:  Strategic Characteristics of Lean Systems

Difficulty:  Moderate

Keywords:  5S, five S

Learning Outcome:  Describe the advantages and disadvantages of various production strategies such as lean, Theory of Constraints, JIT, and Six Sigma

AACSB:  Application of Knowledge

 

 

45) Which of the following statements about the Toyota Production System is BEST?

  1. A) Toyota has built a learning organization over the course of 50 years.
  2. B) The key to success for Toyota is the set of tools and procedures readily apparent on a plant tour.
  3. C) The four principles that form the basis to TPS are impossible to replicate.
  4. D) Toyota has 23 manufacturing plants in North America alone.

Answer:  A

Reference:  Strategic Characteristics of Lean Systems

Difficulty:  Moderate

Keywords:  principle, TPS, Toyota Production System

Learning Outcome:  Describe the advantages and disadvantages of various production strategies such as lean, Theory of Constraints, JIT, and Six Sigma

AACSB:  Application of Knowledge

46) The four bolts that hold the passenger seat in a pickup truck are tightened in a clockwise order beginning with the front right bolt, in 24 seconds. This production factoid illustrates which of the following principles of the Toyota Production System?

  1. A) All work must be specified as to content.
  2. B) Every customer-supplier connection must be direct and unambiguous.
  3. C) The pathway for every service and product must be direct.
  4. D) Any improvements to the system must be made in accordance with the scientific method.

Answer:  A

Reference:  Strategic Characteristics of Lean Systems

Difficulty:  Moderate

Keywords:  principle, TPS, Toyota Production System

Learning Outcome:  Describe the advantages and disadvantages of various production strategies such as lean, Theory of Constraints, JIT, and Six Sigma

AACSB:  Application of Knowledge

 

47) The rack at my assembly station that holds rear view mirrors is empty, so a runner wheels it away and replaces it with a new rack, fully populated with rear view mirrors. This production factoid illustrates which of the following principles of the Toyota Production System?

  1. A) All work must be specified as to content.
  2. B) Every customer-supplier connection must be direct and unambiguous.
  3. C) The pathway for every service and product must be direct.
  4. D) Any improvements to the system must be made in accordance with the scientific method.

Answer:  B

Reference:  Strategic Characteristics of Lean Systems

Difficulty:  Moderate

Keywords:  principle, TPS, Toyota Production System

Learning Outcome:  Describe the advantages and disadvantages of various production strategies such as lean, Theory of Constraints, JIT, and Six Sigma

AACSB:  Application of Knowledge

 

 

48) Management at Pepman has decided to switch from a push system to a pull system of manufacturing. They are a large repetitive manufacturer of bicycles. Which one of the following is most likely to occur?

  1. A) The cycle time will increase, resulting in higher inventory levels.
  2. B) The space required will increase due to the increase in the number of units that require rework.
  3. C) The decrease in WIP inventory levels will reduce the space requirements.
  4. D) The workers at any given process will produce units before they are needed by the subsequent process.

Answer:  C

Reference:  Strategic Characteristics of Lean Systems

Difficulty:  Moderate

Keywords:  push system, pull system, WIP inventory

Learning Outcome:  Describe the advantages and disadvantages of various production strategies such as lean, Theory of Constraints, JIT, and Six Sigma

AACSB:  Application of Knowledge

49) ________ refers to a form of supplier partnership that places a supplier representative, who is empowered to plan and schedule the replenishment of materials from the supplier, in the customer's plant on a full-time basis.

Answer:  JIT II

Reference:  Strategic Characteristics of Lean Systems

Difficulty:  Moderate

Keywords:  JIT II, in-plant representative, material replenishment

Learning Outcome:  Describe the advantages and disadvantages of various production strategies such as lean, Theory of Constraints, JIT, and Six Sigma

AACSB:  Application of Knowledge

 

50) A(n) ________ is a group of activities needed to readjust a process between successive lots of items.

Answer:  setup or changeover

Reference:  Strategic Characteristics of Lean Systems

Difficulty:  Moderate

Keywords:  setup, changeover

Learning Outcome:  Describe the advantages and disadvantages of various production strategies such as lean, Theory of Constraints, JIT, and Six Sigma

AACSB:  Application of Knowledge

 

51) ________ refers to the goal of having a setup time of fewer than 10 minutes.

Answer:  Single-digit setup

Reference:  Strategic Characteristics of Lean Systems

Difficulty:  Moderate

Keywords:  single-digit setup

Learning Outcome:  Describe the advantages and disadvantages of various production strategies such as lean, Theory of Constraints, JIT, and Six Sigma

AACSB:  Application of Knowledge

 

52) The ________ method activates production of a service or item based on customer demand.

Answer:  pull

Reference:  Strategic Characteristics of Lean Systems

Difficulty:  Easy

Keywords:  production, push method, pull method

Learning Outcome:  Describe the advantages and disadvantages of various production strategies such as lean, Theory of Constraints, JIT, and Six Sigma

AACSB:  Application of Knowledge

 

53) Automatically stopping the process when something is wrong and then fixing the problems on the line itself as they occur is called ________.

Answer:  jidoka

Reference:  Strategic Characteristics of Lean Systems

Difficulty:  Moderate

Keywords:  jidoka

Learning Outcome:  Describe the advantages and disadvantages of various production strategies such as lean, Theory of Constraints, JIT, and Six Sigma

AACSB:  Application of Knowledge

54) ________ refers to mistake-proofing methods aimed at designing fail-safe systems that minimize human error.

Answer:  Poka-yoke

Reference:  Strategic Characteristics of Lean Systems

Difficulty:  Moderate

Keywords:  poka-yoke, mistake-proofing

Learning Outcome:  Describe the advantages and disadvantages of various production strategies such as lean, Theory of Constraints, JIT, and Six Sigma

AACSB:  Application of Knowledge

 

55) A lean system's ________ refers to the cycle time needed to match the rate of production to the rate of sales or consumption.

Answer:  takt time

Reference:  Strategic Characteristics of Lean Systems

Difficulty:  Moderate

Keywords:  takt time, production rate, consumption rate

Learning Outcome:  Describe the advantages and disadvantages of various production strategies such as lean, Theory of Constraints, JIT, and Six Sigma

AACSB:  Application of Knowledge

 

56) ________ is the leveling of production load by both volume and product mix.

Answer:  Heijunka

Reference:  Strategic Characteristics of Lean Systems

Difficulty:  Moderate

Keywords:  heijunka, production leveling

Learning Outcome:  Describe the advantages and disadvantages of various production strategies such as lean, Theory of Constraints, JIT, and Six Sigma

AACSB:  Application of Knowledge

 

57) A ________ assembly line produces a mix of models in smaller lots.

Answer:  mixed-model

Reference:  Strategic Characteristics of Lean Systems

Difficulty:  Moderate

Keywords:  mixed-model assembly, small lot size

Learning Outcome:  Describe the advantages and disadvantages of various production strategies such as lean, Theory of Constraints, JIT, and Six Sigma

AACSB:  Application of Knowledge

 

58) ________ is a methodology consisting of five workplace practices that are conducive to visual controls and lean production.

Answer:  Five S, 5S

Reference:  Strategic Characteristics of Lean Systems

Difficulty:  Easy

Keywords:  five S, 5S

Learning Outcome:  Describe the advantages and disadvantages of various production strategies such as lean, Theory of Constraints, JIT, and Six Sigma

AACSB:  Application of Knowledge

59) The list of five S practices includes ________, ________, ________, ________ and ________.

Answer:  sort, straighten, shine, standardize, sustain

Reference:  Strategic Characteristics of Lean Systems

Difficulty:  Moderate

Keywords:  five S, 5S, sort, straighten, shine, standardize, sustain

Learning Outcome:  Describe the advantages and disadvantages of various production strategies such as lean, Theory of Constraints, JIT, and Six Sigma

AACSB:  Application of Knowledge

 

60) ________ practices include early testing of machine parts that may need to be replaced and making workers responsible for routine minor maintenance of their own equipment.

Answer:  Total Preventive Maintenance, TPM

Reference:  Strategic Characteristics of Lean Systems

Difficulty:  Moderate

Keywords:  Total Preventive Maintenance, TPM

Learning Outcome:  Describe the advantages and disadvantages of various production strategies such as lean, Theory of Constraints, JIT, and Six Sigma

AACSB:  Application of Knowledge

 

 

61) All improvements to the Toyota Production System must be made at the ________ level.

Answer:  lowest

Reference:  Strategic Characteristics of Lean Systems

Difficulty:  Moderate

Keywords:  TPS, Toyota Production System, improvement

Learning Outcome:  Describe the advantages and disadvantages of various production strategies such as lean, Theory of Constraints, JIT, and Six Sigma

AACSB:  Application of Knowledge

 

62) All improvements to the Toyota Production System must be made using the ________ method.

Answer:  scientific

Reference:  Strategic Characteristics of Lean Systems

Difficulty:  Moderate

Keywords:  TPS, Toyota Production System, scientific method

Learning Outcome:  Describe the advantages and disadvantages of various production strategies such as lean, Theory of Constraints, JIT, and Six Sigma

AACSB:  Application of Knowledge

 

63) The pathway for every service and product in the Toyota Production System must be ________ and ________.

Answer:  simple, direct

Reference:  Strategic Characteristics of Lean Systems

Difficulty:  Moderate

Keywords:  TPS, Toyota Production System, pathway

Learning Outcome:  Describe the advantages and disadvantages of various production strategies such as lean, Theory of Constraints, JIT, and Six Sigma

AACSB:  Application of Knowledge

64) In the Toyota Production System, all work must be completely specified as to ________, ________, ________ and ________.

Answer:  content, sequence, timing, outcome

Reference:  Strategic Characteristics of Lean Systems

Difficulty:  Moderate

Keywords:  TPS, Toyota Production System, work, content, sequence, timing, outcome

Learning Outcome:  Describe the advantages and disadvantages of various production strategies such as lean, Theory of Constraints, JIT, and Six Sigma

AACSB:  Application of Knowledge

 

 

65) What are the supply chain implications of the lean system emphasis on close supplier ties?

Answer:  Close supplier ties lead to partnerships with a relatively few number of suppliers in close geographic locations. It helps firms get frequent supplier shipments, have short lead time, on-time scheduled arrival of goods of high quality, with deliveries as often as several times per day. Close cooperation leads to better inventory planning and scheduled deliveries that improve both customer and supplier profit margins. Sometimes, a JIT II system is used with the supplier having a representative in the customer's plant, and this representative is then empowered to plan and schedule the replenishment of materials from the supplier.

Reference:  Strategic Characteristics of Lean Systems

Difficulty:  Hard

Keywords:  supply chain, lean system, close supplier ties

Learning Outcome:  Describe the advantages and disadvantages of various production strategies such as lean, Theory of Constraints, JIT, and Six Sigma

AACSB:  Application of Knowledge

 

66) What are the supply chain implications of the lean system emphasis on small lot sizes?

Answer:  Small lot sizes reduce average inventory levels (relative to large lots) throughout the entire supply chain. Small lots also pass through the system more quickly, because they do not keep materials waiting. Defective items are discovered more quickly, and shorter delays result from correcting a problem with a smaller lot. In addition, they help achieve a uniform workload and prevent overproduction. One disadvantage of small lots is that they increase the frequency of setups, so lean systems direct a great deal of attention to reducing setup times. Often, an objective of single-digit setups is established, which represents the firm's goal to have setup times of less than 10 minutes.

Reference:  Strategic Characteristics of Lean Systems

Difficulty:  Hard

Keywords:  supply chain, lean system, small lot size

Learning Outcome:  Describe the advantages and disadvantages of various production strategies such as lean, Theory of Constraints, JIT, and Six Sigma

AACSB:  Application of Knowledge

67) What is the difference between the "push" and "pull" methods of material flow? Which method does lean systems use?

Answer:  With the pull method, customer demand (an order) activates the production of the goods or services. The production system does not anticipate the need for more product until indicated by a customer order. The push method begins with a production schedule and customer demand is assumed (or hoped for). Lean system processes use the pull method of production.

Reference:  Strategic Characteristics of Lean Systems

Difficulty:  Moderate

Keywords:  push method, pull method, production, material flow, lean system

Learning Outcome:  Describe the advantages and disadvantages of various production strategies such as lean, Theory of Constraints, JIT, and Six Sigma

AACSB:  Application of Knowledge

 

 

68) What are some of the approaches used to achieve the high quality levels associated with lean systems?

Answer:  Quality at the source is one principle approach that is used—this is the philosophy that defects are caught and corrected where they are created. Other ways of building in quality include automatically stopping a process when something is wrong and then fixing the problem on the line itself as they occur (called jidoka), and using mistake-proofing methods to design fail-safe systems that minimize human error (called poka-yoke).

Reference:  Strategic Characteristics of Lean Systems

Difficulty:  Moderate

Keywords:  quality, quality at the source, jidoka, poka-yoke

Learning Outcome:  Describe the advantages and disadvantages of various production strategies such as lean, Theory of Constraints, JIT, and Six Sigma

AACSB:  Application of Knowledge

 

69) Explain the meaning of the term takt time, and use a numerical example to illustrate.

Answer:  Takt time is the cycle time needed to match the rate of production to the rate of sales or consumption. Numerical examples may vary, but one might be as follows: Units are sold at a rate of 240 per day. A plant running one shift (480 minutes) per day would establish a takt time of 2 minutes per unit, or 120 seconds per unit (480 minutes ÷ 240 units). All manufacturing steps in the process would be planned to complete their work within the 2-minute takt time.

Reference:  Strategic Characteristics of Lean Systems

Difficulty:  Moderate

Keywords:  takt time, production rate, consumption rate, lean system

Learning Outcome:  Describe the advantages and disadvantages of various production strategies such as lean, Theory of Constraints, JIT, and Six Sigma

AACSB:  Application of Knowledge

 

70) With respect to lean systems, what is the advantage of standardized components?

Answer:  Standardization tends to increase the repeatability of tasks, which in turn enables a higher degree of efficiency in production.

Reference:  Strategic Characteristics of Lean Systems

Difficulty:  Moderate

Keywords:  lean system, standardized components, repeatability, production efficiency

Learning Outcome:  Describe the advantages and disadvantages of various production strategies such as lean, Theory of Constraints, JIT, and Six Sigma

AACSB:  Application of Knowledge

71) List and briefly define the 5S Practices that serve as an enabler and essential foundation of lean systems.

Answer:  Refer to Table 6.2, page 215 in the text.

Reference:  Strategic Characteristics of Lean Systems

Difficulty:  Moderate

Keywords:  five S, 5S, sort, straighten, shine, standardize, sustain

Learning Outcome:  Describe the advantages and disadvantages of various production strategies such as lean, Theory of Constraints, JIT, and Six Sigma

AACSB:  Application of Knowledge

 

72) What are the four underlying principles of the Toyota Production System?

Answer:  The four underlying principles are: (1) all work must be completely specified as to content, sequence, timing and outcome; (2) every customer—supplier connection must be direct, unambiguously specifying the people involved, the form and quantity of goods and services, the way requests are made by customers, and the expected time in which the requests will be met; (3) the pathway for every product and service must be simple and direct; and (4) any improvement to the system must be made in accordance with the scientific method, under the guidance of a teacher, and at the lowest possible level.

Reference:  Strategic Characteristics of Lean Systems

Difficulty:  Moderate

Keywords:  TPS, Toyota Production System, principles

Learning Outcome:  Describe the advantages and disadvantages of various production strategies such as lean, Theory of Constraints, JIT, and Six Sigma

AACSB:  Application of Knowledge

 

73) Briefly discuss the House of Toyota, including its origin and key points.

Answer:  The House of Toyota is a graphic presentation of all the essential elements of lean systems that make the Toyota Production System (TPS) work well. It was originally used by Toyota to define TPS to its employees and suppliers. Its roof represents the primary goals of high quality, low cost, waste elimination, and short lead times. The roof is supported by the twin pillars of JIT and jidoka, which stand on a base of operational stability that comes from leveraging a number of lean concepts. For additional details refer to Figure 6.3, page 217 in the text.

Reference:  Strategic Characteristics of Lean Systems

Difficulty:  Moderate

Keywords:  House of Toyota, lean system, essential elements

Learning Outcome:  Describe the advantages and disadvantages of various production strategies such as lean, Theory of Constraints, JIT, and Six Sigma

AACSB:  Application of Knowledge

 

74) An item sells at a rate of 240 units per day. If a plant works one shift per day (480 minutes), what takt time is required for the plant to meet this demand?

Answer:  480 minutes per day ÷ 240 units = 2.0 minutes per unit, or 120 seconds per unit

Reference:  Strategic Characteristics of Lean Systems

Difficulty:  Easy

Keywords:  takt time

Learning Outcome:  Describe the advantages and disadvantages of various production strategies such as lean, Theory of Constraints, JIT, and Six Sigma

AACSB:  Analytical Thinking

 

75) A plant's manufacturing process has a takt time of 90 seconds per unit. This results in a process output of how many units per hour?

Answer:  60 minutes per hour × 60 seconds per minute = 3600 seconds per hour

3600 seconds per hour ÷ 90 seconds per unit = 40 units per hour output

Reference:  Strategic Characteristics of Lean Systems

Difficulty:  Moderate

Keywords:  takt time, process output

Learning Outcome:  Describe the advantages and disadvantages of various production strategies such as lean, Theory of Constraints, JIT, and Six Sigma

AACSB:  Analytical Thinking

 

76) An item is used in Process B at a rate of 150 units per day. Process A works one shift per day (480 minutes) and supplies Process B's requirements. What takt time is required in Process A to meet Process B's demand?

Answer:  480 minutes per day ÷ 150 units = 3.2 minutes per unit, or 192 seconds per unit

Reference:  Strategic Characteristics of Lean Systems

Difficulty:  Moderate

Keywords:  takt time

Learning Outcome:  Describe the advantages and disadvantages of various production strategies such as lean, Theory of Constraints, JIT, and Six Sigma

AACSB:  Analytical Thinking

 

77) What is the output for a process that has a takt time of 1.25 minutes per unit?

Answer:  60 minutes per hour ÷ 1.25 minutes per unit = 48 units per hour output

Reference:  Strategic Characteristics of Lean Systems

Difficulty:  Moderate

Keywords:  takt time, process output

Learning Outcome:  Describe the advantages and disadvantages of various production strategies such as lean, Theory of Constraints, JIT, and Six Sigma

AACSB:  Analytical Thinking

 

78) An item sells at a rate of 600 units per day. If a plant works two shifts per day (480 minutes each shift), what takt time is required for the plant to meet this demand?

Answer:  480 minutes per shift × 2 shifts = 960 minutes per day

960 minutes per day ÷ 600 units = 1.6 minutes per unit, or 96 seconds per unit

Reference:  Strategic Characteristics of Lean Systems

Difficulty:  Moderate

Keywords:  takt time

Learning Outcome:  Describe the advantages and disadvantages of various production strategies such as lean, Theory of Constraints, JIT, and Six Sigma

AACSB:  Analytical Thinking

 

 

79) A plant's manufacturing process has a takt time of 72 seconds per unit. This results in a process output of how many units per hour?

Answer:  60 minutes per hour × 60 seconds per minute = 3600 seconds per hour

3600 seconds per hour ÷ 72 seconds per unit = 50 units per hour output

Reference:  Strategic Characteristics of Lean Systems

Difficulty:  Moderate

Keywords:  takt time, process output

Learning Outcome:  Describe the advantages and disadvantages of various production strategies such as lean, Theory of Constraints, JIT, and Six Sigma

AACSB:  Analytical Thinking

6.3  Designing Lean System Layouts

 

1) One benefit of a lean system is that it reduces space requirements.

Answer:  TRUE

Reference:  Designing Lean System Layouts

Difficulty:  Moderate

Keywords:  lean system

Learning Outcome:  Describe the advantages and disadvantages of various production strategies such as lean, Theory of Constraints, JIT, and Six Sigma

AACSB:  Application of Knowledge

 

2) Options for achieving line-flow layouts in a lean system include assigning one worker to operate several different machines in a line and creating cells to produce similar product groups called families.

Answer:  TRUE

Reference:  Designing Lean System Layouts

Difficulty:  Moderate

Keywords:  lean system

Learning Outcome:  Describe the advantages and disadvantages of various production strategies such as lean, Theory of Constraints, JIT, and Six Sigma

AACSB:  Application of Knowledge

 

3) An OWMM arrangement reduces labor requirements but increases inventory.

Answer:  FALSE

Reference:  Designing Lean System Layouts

Difficulty:  Moderate

Keywords:  line flow, one-worker, multiple-machine, OWMM, labor requirements, inventory

Learning Outcome:  Describe the advantages and disadvantages of various production strategies such as lean, Theory of Constraints, JIT, and Six Sigma

AACSB:  Application of Knowledge

 

 

4) Group technology collects similar parts into families and organizes machine tools into separate cells.

Answer:  TRUE

Reference:  Designing Lean System Layouts

Difficulty:  Moderate

Keywords:  group technology, GT, machine tools, cells, parts families

Learning Outcome:  Describe the advantages and disadvantages of various production strategies such as lean, Theory of Constraints, JIT, and Six Sigma

AACSB:  Application of Knowledge

 

5) Combining parts or products with similar characteristics into families and setting machines aside for their production is known as:

  1. A) the one-worker, multiple machines (OWMM) method of production.
  2. B) the standardized component method of manufacturing.
  3. C) group technology.
  4. D) the flexible workforce approach to manufacturing.

Answer:  C

Reference:  Designing Lean System Layouts

Difficulty:  Moderate

Keywords:  group technology, GT

Learning Outcome:  Describe the advantages and disadvantages of various production strategies such as lean, Theory of Constraints, JIT, and Six Sigma

AACSB:  Application of Knowledge

6) A ________ is a workstation in which a worker operates several different machines simultaneously to achieve a line flow.

Answer:  one-worker, multiple-machines (OWMM) cell

Reference:  Designing Lean System Layouts

Difficulty:  Moderate

Keywords:  one-worker, multiple-machines (OWMM)

Learning Outcome:  Describe the advantages and disadvantages of various production strategies such as lean, Theory of Constraints, JIT, and Six Sigma

AACSB:  Application of Knowledge

 

7) ________ is the combining of parts or products with similar characteristics into families and setting aside groups of machines for their production.

Answer:  Group technology (GT)

Reference:  Designing Lean System Layouts

Difficulty:  Moderate

Keywords:  group technology, GT

Learning Outcome:  Describe the advantages and disadvantages of various production strategies such as lean, Theory of Constraints, JIT, and Six Sigma

AACSB:  Application of Knowledge

 

 

8) What is group technology and what advantages are accrued from its use?

Answer:  The theory is to group parts or products into families and set aside groups of machines for their production. By dedicating these groups of machines to specific part families, the overall setup time between parts is minimized, part routings are less complicated, shorter, and therefore faster, and material handling is minimized. Other less tangible benefits may also be realized; for example, it is typically easier to track down the status of an order if the expeditor knows the cell where it should be produced. Inventory levels may also be lower and learning effects may reduce overall production time.

Reference:  Designing Lean System Layouts

Difficulty:  Moderate

Keywords:  group technology, GT, product family, part family, cell, machine groups

Learning Outcome:  Describe the advantages and disadvantages of various production strategies such as lean, Theory of Constraints, JIT, and Six Sigma

AACSB:  Application of Knowledge

 

9) How can group technology be used in a service setting? Provide an example and describe two advantages of using this principle in a service setting.

Answer:  The theory behind group technology is to group parts or products into families and set aside groups of machines for their production. In a service setting, the parts are customers and the groups of machines may be customer service representatives or could be machines. Examples will vary, but in a university setting, student advising is most likely done using group technology principles, e.g., students are assigned to an advisor based on their major rather than alphabetically. This means that the advisor can develop intimate knowledge of a few majors rather than the virtually impossible task of understanding the quirks of all majors and departments at a university. Many businesses parse their customer bases into commercial and residential groups as well.

Reference:  Designing Lean System Layouts

Difficulty:  Moderate

Keywords:  group technology, GT, product family, part family, cell, machine groups

Learning Outcome:  Describe the advantages and disadvantages of various production strategies such as lean, Theory of Constraints, JIT, and Six Sigma

AACSB:  Application of Knowledge

 

10) Explain how a line-flow strategy can be used to reduce or eliminate setups.

Answer:  If line-flow volumes are high enough, a product layout can be used that eliminates setup requirements entirely. Another tactic, the one-worker-multiple-machines (OWMM) approach, can also be used to reduce or eliminate setups by having one person operate several machines simultaneously to achieve line-flow without requiring the machine to be changed over. In low volume processes, line-flow can be achieved through group technology (GT). This technique groups parts or products with similar characteristics into families and sets aside groups of machines for their production. The goal is to group products with similar processing requirements and minimize changeover or setup.

Reference:  Designing Lean System Layouts

Difficulty:  Hard

Keywords:  line flow strategy, setup time, one-worker, multiple-machines, OWMM, group technology, GT

Learning Outcome:  Describe the advantages and disadvantages of various production strategies such as lean, Theory of Constraints, JIT, and Six Sigma

AACSB:  Application of Knowledge

 

6.4  Value Stream Mapping

 

1) Use of value stream mapping requires construction of a current state drawing, a future state drawing, and an implementation plan.

Answer:  TRUE

Reference:  Value Stream Mapping

Difficulty:  Easy

Keywords:  value stream mapping, current state drawing, future state drawing, implementation plan

Learning Outcome:  Describe the advantages and disadvantages of various production strategies such as lean, Theory of Constraints, JIT, and Six Sigma

AACSB:  Application of Knowledge

 

2) The value stream mapping tool often requires completion of the future state drawing before the current state drawing, to help managers see the future state goals and more easily identify problems with the current state of the process.

Answer:  FALSE

Reference:  Value Stream Mapping

Difficulty:  Moderate

Keywords:  value stream mapping, current state drawing, future state drawing

Learning Outcome:  Describe the advantages and disadvantages of various production strategies such as lean, Theory of Constraints, JIT, and Six Sigma

AACSB:  Application of Knowledge

 

 

3) To complete the current state drawing of a process, a map of the current situation is developed, including such items as material and information flows, process times, setup times, batch sizes, scrap rates, and number of people required.

Answer:  TRUE

Reference:  Value Stream Mapping

Difficulty:  Moderate

Keywords:  value stream mapping, current state drawing, material and information flows

Learning Outcome:  Describe the advantages and disadvantages of various production strategies such as lean, Theory of Constraints, JIT, and Six Sigma

AACSB:  Application of Knowledge

4) Often in value stream mapping, analysts must rely on process information from shop floor workers rather than direct observation in an effort to quickly develop a work plan and accelerate implementing the improved process.

Answer:  FALSE

Reference:  Value Stream Mapping

Difficulty:  Moderate

Keywords:  value stream mapping, process information, direct observation

Learning Outcome:  Describe the advantages and disadvantages of various production strategies such as lean, Theory of Constraints, JIT, and Six Sigma

AACSB:  Application of Knowledge

 

5) The theory of constraints accepts existing system bottlenecks and works to maximize throughput given these constraints, while value stream mapping endeavors to understand how existing processes can be altered to eliminate bottlenecks and other wasteful activities.

Answer:  TRUE

Reference:  Value Stream Mapping

Difficulty:  Moderate

Keywords:  theory of constraints, value stream mapping

Learning Outcome:  Describe the advantages and disadvantages of various production strategies such as lean, Theory of Constraints, JIT, and Six Sigma

AACSB:  Application of Knowledge

 

6) A value stream map shows the flows of materials and information and the lines of responsibility and authority.

Answer:  FALSE

Reference:  Value Stream Mapping

Difficulty:  Moderate

Keywords:  value stream mapping, material flow, information flow

Learning Outcome:  Describe the advantages and disadvantages of various production strategies such as lean, Theory of Constraints, JIT, and Six Sigma

AACSB:  Application of Knowledge


Scenario 6.1

El Gran Raton, the producers of the finest carpincho wallets in all of Argentina, examined their production process in the form of a value stream map, displayed below.

 

Daniel Penfield artist

 

7) Use Scenario 6.1 to determine the total production lead time for carpincho gloves.

  1. A) 14 days 585 seconds
  2. B) 14 days
  3. C) 14 days minus 585 seconds
  4. D) 585 seconds

Answer:  B

Reference:  Value Stream Mapping

Difficulty:  Moderate

Keywords:  value stream mapping (VSM)

Learning Outcome:  Describe the advantages and disadvantages of various production strategies such as lean, Theory of Constraints, JIT, and Six Sigma

AACSB:  Analytical Thinking

 

8) Use Scenario 6.1 to determine the total processing time for carpincho gloves.

  1. A) 14 days 585 seconds
  2. B) 14 days
  3. C) 14 days minus 585 seconds
  4. D) 585 seconds

Answer:  D

Reference:  Value Stream Mapping

Difficulty:  Moderate

Keywords:  value stream mapping (VSM)

Learning Outcome:  Describe the advantages and disadvantages of various production strategies such as lean, Theory of Constraints, JIT, and Six Sigma

AACSB:  Analytical Thinking

 

9) In Scenario 6.1, what is the significance of the two jagged arrows leading from the box labeled Production Control to the boxes labeled Supplier and Customer?

  1. A) the arrows represent flows of information
  2. B) the arrows represent flows of money
  3. C) the arrows represent the flows of materials
  4. D) the arrows represent the passage of time

Answer:  A

Reference:  Value Stream Mapping

Difficulty:  Easy

Keywords:  value stream mapping (VSM)

Learning Outcome:  Describe the advantages and disadvantages of various production strategies such as lean, Theory of Constraints, JIT, and Six Sigma

AACSB:  Application of Knowledge

 

10) Scenario 6.1 shows a value stream map with the picture separated into a top and bottom halves, each encircled by a dashed line. The bottom half of the picture could best be described as representing the:

  1. A) flow of information.
  2. B) flow of money.
  3. C) flow of material.
  4. D) flow of power.

Answer:  C

Reference:  Value Stream Mapping

Difficulty:  Moderate

Keywords:  value stream mapping (VSM)

Learning Outcome:  Describe the advantages and disadvantages of various production strategies such as lean, Theory of Constraints, JIT, and Six Sigma

AACSB:  Application of Knowledge

 

 

11) In Scenario 6.1, what does the triangle between Process A and Process B represent?

  1. A) WIP
  2. B) takt
  3. C) OWMM
  4. D) kanban

Answer:  A

Reference:  Value Stream Mapping

Difficulty:  Moderate

Keywords:  value stream mapping (VSM)

Learning Outcome:  Describe the advantages and disadvantages of various production strategies such as lean, Theory of Constraints, JIT, and Six Sigma

AACSB:  Application of Knowledge

12) Use the data in Scenario 6.1 to calculate the per unit processing time for Process A if El Gran Raton decides to run a batch size of 360 units. The per unit time is:

  1. A) 310 seconds.
  2. B) 46.67 seconds.
  3. C) 340 seconds.
  4. D) 696.67 seconds.

Answer:  A

Reference:  Value Stream Mapping

Difficulty:  Moderate

Keywords:  value stream mapping (VSM)

Learning Outcome:  Describe the advantages and disadvantages of various production strategies such as lean, Theory of Constraints, JIT, and Six Sigma

AACSB:  Analytical Thinking

 

13) With a batch size of 360 units, which process step in Scenario 6.1 is the bottleneck?

  1. A) Process A
  2. B) Process B
  3. C) Process C
  4. D) the market

Answer:  C

Reference:  Value Stream Mapping

Difficulty:  Easy

Keywords:  value stream mapping (VSM)

Learning Outcome:  Describe the advantages and disadvantages of various production strategies such as lean, Theory of Constraints, JIT, and Six Sigma

AACSB:  Analytical Thinking

 

 

14) With a batch size of 300 units, what is the per unit processing time for Process C?

  1. A) 5 minutes 12 seconds
  2. B) 5 minutes 48 seconds
  3. C) 6 minutes
  4. D) 5 minutes 30 seconds

Answer:  C

Reference:  Value Stream Mapping

Difficulty:  Moderate

Keywords:  value stream mapping (VSM)

Learning Outcome:  Describe the advantages and disadvantages of various production strategies such as lean, Theory of Constraints, JIT, and Six Sigma

AACSB:  Analytical Thinking

 

15) With a batch size of 300 units, what is the capacity of process A as shown in Scenario 6.1?

  1. A) 10.3 units per hour
  2. B) 11.5 units per hour
  3. C) 12.7 units per hour
  4. D) 13.9 units per hour

Answer:  A

Reference:  Value Stream Mapping

Difficulty:  Moderate

Keywords:  value stream mapping (VSM)

Learning Outcome:  Describe the advantages and disadvantages of various production strategies such as lean, Theory of Constraints, JIT, and Six Sigma

AACSB:  Analytical Thinking

16) Use the data in Scenario 6.1 to determine the batch size necessary to restrict overall process capacity to 10 units per hour.

  1. A) 200 units
  2. B) 220 units
  3. C) 240 units
  4. D) 260 units

Answer:  C

Reference:  Value Stream Mapping

Difficulty:  Moderate

Keywords:  value stream mapping (VSM)

Learning Outcome:  Describe the advantages and disadvantages of various production strategies such as lean, Theory of Constraints, JIT, and Six Sigma

AACSB:  Analytical Thinking

 

 

17) ________ is a qualitative lean tool for eliminating waste that involves current state and future state drawings, and an implementation plan.

Answer:  Value stream mapping (VSM)

Reference:  Value Stream Mapping

Difficulty:  Moderate

Keywords:  value stream mapping (VSM)

Learning Outcome:  Describe the advantages and disadvantages of various production strategies such as lean, Theory of Constraints, JIT, and Six Sigma

AACSB:  Application of Knowledge

 

18) Value stream maps consist of a(n)________, a(n)________, and a(n)________.

Answer:  current state drawing, future state drawing, implementation plan

Reference:  Value Stream Mapping

Difficulty:  Moderate

Keywords:  value stream mapping (VSM)

Learning Outcome:  Describe the advantages and disadvantages of various production strategies such as lean, Theory of Constraints, JIT, and Six Sigma

AACSB:  Application of Knowledge

 

19) Briefly outline the steps to be followed in evaluating and improving a process using value stream mapping.

Answer:  VSM analysts begin by selecting a product family for which the mapping will be done. This is followed by drawing a current state map of the existing production situation, and gathering and including all pertinent information on material and information flows (cycle times, scrap rates, machine uptime, batch sizes, etc.). Once the current state map is completed, the analysts use lean systems principles (e.g., load leveling, pull scheduling, Kanban systems) to create a future state map with more streamlined product flows. In this step, sources of waste are highlighted, and means for eliminating them are identified. Finally an implementation plan for achieving the future state is developed, which then becomes the blueprint for implementing and fine tuning a lean system. The process does not stop here, but provides continuous improvement opportunities as a new future state map is drawn after the lean system has been further improved.

Reference:  Value Stream Mapping

Difficulty:  Moderate

Keywords:  VSM, value stream mapping, product families, current state drawing, future state drawing, implementation plan

Learning Outcome:  Describe the advantages and disadvantages of various production strategies such as lean, Theory of Constraints, JIT, and Six Sigma

AACSB:  Application of Knowledge

 

20) Choose a simple, common process and create a value stream map containing the current state, plus a realistic future state, and implementation plan.

Answer:  Answers will vary. See the outline below for steps to be followed and information to be included.

 

VSM analysts begin by selecting a product family for which the mapping will be done. This is followed by drawing a current state map of the existing production situation, and gathering and including all pertinent information on material and information flows (cycle times, scrap rates, machine uptime, batch sizes, etc.). Once the current state map is completed, the analysts use lean systems principles (e.g., load leveling, pull scheduling, Kanban systems) to create a future state map with more streamlined product flows. In this step, sources of waste are highlighted, and means for eliminating them are identified. Finally an implementation plan for achieving the future state is developed, which then becomes the blueprint for implementing and fine tuning a lean system. The process does not stop here, but provides continuous improvement opportunities as a new future state map is drawn after the lean system has been further improved.

Reference:  Value Stream Mapping

Difficulty:  Moderate

Keywords:  VSM, value stream mapping, product families, current state drawing, future state drawing, implementation plan

Learning Outcome:  Describe the advantages and disadvantages of various production strategies such as lean, Theory of Constraints, JIT, and Six Sigma

AACSB:  Application of Knowledge

 


Scenario 6.1

El Gran Raton, the producers of the finest carpincho wallets in all of Argentina, examined their production process in the form of a value stream map, displayed below.

 

Daniel Penfield artist

 

 

21) Use the value stream map to conduct a complete analysis of the carpincho wallet production process. Calculate all raw material and WIP lead times and determine overall process capacity assuming El Gran Raton uses a batch size of 300 units. If a single carpincho wallet were ordered today, how long before it would reach the back pocket of the delighted customer if his order is but one of an average of 2230 orders (all for a single wallet) during an average 5 day work week. *Assume that the days indicated on the lead time ladder are based on a different batch size and not applicable to the 300 unit batch currently in use.*

Answer:  Using a batch size of 300 units, the capacity of Process A is calculated as:

60 minute setup * 60 seconds/minute = 3600 second setup

3600 seconds/300 units per batch = 12 seconds per unit

Per unit processing time = 300 seconds + 12 seconds = 312 seconds

The capacity of Process A is 27000 seconds per day/312 seconds per unit = 86.5 units per day

 

Process B is 47 seconds per unit with a capacity of 574.4 units per day and Process C is 348 seconds per unit with a capacity of 77.58 units per day

 

Process C is always the bottleneck regardless of batch size.

 

WIP times are calculated as 2230 units/week divided by 5 days per week equals 446 units/day

Pre Process A: 1783 units/446 units per day = 4 days

Between A and B: 1202 units/446 units per day = 2.69 days

Between B and C: 733 units/446 units per day = 1.64 days

C to Shipping: 593 units/446 units per day = 1.32 days

 

Adding up these production times and delays yields:

5.94 days + 300 seconds + 4 days + 45 seconds + 2.44 days + 300 seconds + 1.97 days = 14.37 days and 645 seconds, or 14.394 days, based on a 27,000 second day.

A carpincho is more commonly known as a capybara in the U.S.

Reference:  Value Stream Mapping

Difficulty:  Hard

Keywords:  value stream mapping (VSM)

Learning Outcome:  Describe the advantages and disadvantages of various production strategies such as lean, Theory of Constraints, JIT, and Six Sigma

AACSB:  Analytical Thinking

 

6.5  The Kanban System

 

1) A Kanban is a card used to control the flow of production in many just-in-time systems.

Answer:  TRUE

Reference:  The Kanban System

Difficulty:  Easy

Keywords:  Kanban card

Learning Outcome:  Describe the advantages and disadvantages of various production strategies such as lean, Theory of Constraints, JIT, and Six Sigma

AACSB:  Application of Knowledge

 

2) In a Kanban system, materials may be withdrawn without a withdrawal card if the operation requiring the material is about to run out of work.

Answer:  FALSE

Reference:  The Kanban System

Difficulty:  Moderate

Keywords:  Kanban system, Kanban card

Learning Outcome:  Describe the advantages and disadvantages of various production strategies such as lean, Theory of Constraints, JIT, and Six Sigma

AACSB:  Application of Knowledge

 

3) Some Kanban systems are set up without Kanban cards, and use the material containers or open spaces in a work area to withdraw materials.

Answer:  TRUE

Reference:  The Kanban System

Difficulty:  Moderate

Keywords:  Kanban system, container system, containerless system

Learning Outcome:  Describe the advantages and disadvantages of various production strategies such as lean, Theory of Constraints, JIT, and Six Sigma

AACSB:  Application of Knowledge

 

4) As the average processing time per container of parts increases, fewer containers are needed in a Kanban system.

Answer:  FALSE

Reference:  The Kanban System

Difficulty:  Moderate

Keywords:  Kanban system

Learning Outcome:  Describe the advantages and disadvantages of various production strategies such as lean, Theory of Constraints, JIT, and Six Sigma

AACSB:  Application of Knowledge

 

5) A Kanban system is an important mechanism for lean system management. Which one of the following statements regarding the operation of a Kanban system is BEST?

  1. A) A typical Kanban used in the JIT system includes information such as item number, unit price, competitor's product name, and its price.
  2. B) A Kanban can be used to set the order quantity but not the inventory level.
  3. C) A Kanban and a container move as a pair once production begins at the fabrication process.
  4. D) An empty container can be exchanged for a full container at the storage location even though no Kanban is on the full container.

Answer:  C

Reference:  The Kanban System

Difficulty:  Moderate

Keywords:  Kanban system, container, lean system

Learning Outcome:  Describe the advantages and disadvantages of various production strategies such as lean, Theory of Constraints, JIT, and Six Sigma

AACSB:  Application of Knowledge

 

6) An important mechanism for lean systems is a Kanban system. Which one of the following statements correctly describes the behavior of a two-card Kanban system?

  1. A) A withdrawal Kanban is issued to authorize production in the fabrication process.
  2. B) A production-ordering Kanban authorizes the assembly process to remove the materials from the storage location.
  3. C) The fabrication process produces certain units defined by the lot size and pushes them down to the assembly process.
  4. D) Containers must never be removed from the storage location without an authorizing withdrawal Kanban.

Answer:  D

Reference:  The Kanban System

Difficulty:  Moderate

Keywords:  Kanban system, container, withdrawal Kanban, lean system

Learning Outcome:  Describe the advantages and disadvantages of various production strategies such as lean, Theory of Constraints, JIT, and Six Sigma

AACSB:  Application of Knowledge

 

7) Which one of the following statements regarding the Toyota production system is BEST?

  1. A) It is particularly well suited for making irregularly used parts and customized "specials."
  2. B) It is a "push system," with orders pushed out in anticipation of future requirements.
  3. C) Each container has either a withdrawal or production-ordering Kanban.
  4. D) It does not use poka yoke or 5S practices.

Answer:  C

Reference:  The Kanban System

Difficulty:  Moderate

Keywords:  lean system, Kanban system, withdrawal Kanban, production-ordering Kanban

Learning Outcome:  Describe the advantages and disadvantages of various production strategies such as lean, Theory of Constraints, JIT, and Six Sigma

AACSB:  Application of Knowledge

 


Case 6.1

The Edward James Toy Company uses a Kanban system to make plastic wheels that are a component of several toys. The waiting time for a container of the wheels during production is 0.25 day; average processing time is 0.15 day per container. Each container holds 200 wheels. The company uses 2000 wheels a day in the production of its products.

 

8) Use the information in Case 6.1. Using a policy variable of 5%, calculate the number of Kanban containers needed for the wheels.

  1. A) three or fewer
  2. B) four or five
  3. C) five or six
  4. D) seven or more

Answer:  B

Reference:  The Kanban System

Difficulty:  Moderate

Keywords:  Kanban system, number of containers

Learning Outcome:  Describe the advantages and disadvantages of various production strategies such as lean, Theory of Constraints, JIT, and Six Sigma

AACSB:  Analytical Thinking

9) Use the information in Case 6.1. How many Kanban containers would be required if a 10% policy variable is used?

  1. A) three or fewer
  2. B) four or five
  3. C) five or six
  4. D) seven or more

Answer:  B

Reference:  The Kanban System

Difficulty:  Moderate

Keywords:  Kanban system, number of containers

Learning Outcome:  Describe the advantages and disadvantages of various production strategies such as lean, Theory of Constraints, JIT, and Six Sigma

AACSB:  Analytical Thinking

 


Case 6.2

The Jewel Golf Club Company, which recently began using a Kanban system, has had problems with high inventory levels of one of the handle grips used to make several versions of its clubs. Daily demand for the grip is 3000 units, average waiting time during production is 0.20 day, processing time is 0.10 day per container, and a container holds 150 grips.

 

10) Use the information in Case 6.2. How many Kanban containers would Jewel require if a 5% policy variable is used?

  1. A) three or fewer
  2. B) four or five
  3. C) six or seven
  4. D) eight or more

Answer:  C

Reference:  The Kanban System

Difficulty:  Moderate

Keywords:  Kanban system, number of containers

Learning Outcome:  Describe the advantages and disadvantages of various production strategies such as lean, Theory of Constraints, JIT, and Six Sigma

AACSB:  Analytical Thinking

 

11) Use the information in Case 6.2. How many Kanban containers would Jewel require if a 10% policy variable is used?

  1. A) three or fewer
  2. B) four or five
  3. C) five or six
  4. D) six or seven

Answer:  D

Reference:  The Kanban System

Difficulty:  Moderate

Keywords:  Kanban system, number of containers

Learning Outcome:  Describe the advantages and disadvantages of various production strategies such as lean, Theory of Constraints, JIT, and Six Sigma

AACSB:  Analytical Thinking

12) Which of the following actions would increase the number of containers in use in a Kanban system?

  1. A) using larger containers that can hold more parts than before
  2. B) less demand for the part held by the container
  3. C) faster processing time for the part held by the container
  4. D) increased waiting time for the container

Answer:  D

Reference:  The Kanban System

Difficulty:  Moderate

Keywords:  Kanban system, number of containers

Learning Outcome:  Describe the advantages and disadvantages of various production strategies such as lean, Theory of Constraints, JIT, and Six Sigma

AACSB:  Application of Knowledge

 

13) A ________ is a card used to control the flow of production through a factory.

Answer:  Kanban

Reference:  The Kanban System

Difficulty:  Easy

Keywords:  Kanban system, card, signal, production flow

Learning Outcome:  Describe the advantages and disadvantages of various production strategies such as lean, Theory of Constraints, JIT, and Six Sigma

AACSB:  Application of Knowledge

 

14) A ________ is based on both a withdrawal card and a production-order card, to control inventory quantities more closely.

Answer:  two-card Kanban system

Reference:  The Kanban System

Difficulty:  Moderate

Keywords:  Kanban system, two-card Kanban system, withdrawal card, production-order card

Learning Outcome:  Describe the advantages and disadvantages of various production strategies such as lean, Theory of Constraints, JIT, and Six Sigma

AACSB:  Application of Knowledge

 

15) In a ________ system based on other Kanban signals, an empty space signals a need to fill it.

Answer:  Containerless

Reference:  The Kanban System

Difficulty:  Moderate

Keywords:  Kanban system, containerless system

Learning Outcome:  Describe the advantages and disadvantages of various production strategies such as lean, Theory of Constraints, JIT, and Six Sigma

AACSB:  Application of Knowledge

 

16) What are the general operating rules for a single-card kanban system?

Answer:  The operating rules for the single-card system are simple and are designed to facilitate the flow of materials while maintaining control of inventory levels.

  1. Each container must have a card.
  2. The assembly line always withdraws materials from the fabrication cell. The fabrication cell never pushes parts to the assembly line because, sooner or later, parts will be supplied that are not yet needed for production.
  3. Containers of parts must never be removed from a storage area without a kanban first being posted on the receiving post.
  4. The containers should always contain the same number of good parts. The use of nonstandard containers or irregularly filled containers disrupts the production flow of the assembly line.
  5. Only nondefective parts should be passed along to the assembly line to make the best use of materials and worker's time. This rule reinforces the notion of building quality at the source, which is an important characteristic of lean systems.
  6. Total production should not exceed the total amount authorized on the kanbans in the system.

Reference:  The Kanban System

Difficulty:  Moderate

Keywords:  Kanban system, single card

Learning Outcome:  Describe the advantages and disadvantages of various production strategies such as lean, Theory of Constraints, JIT, and Six Sigma

AACSB:  Application of Knowledge

 

17) How does Toyota's two-card kanban system work?

Answer:  Toyota uses a two-card system, based on a withdrawal card and a production-order card, to control inventory quantities more closely. The withdrawal card specifies the item and the quantity the user of the item should withdraw from the producer of the item, as well as the stocking locations for both the user and the producer. The production-order card specifies the item and the quantity to be produced, the materials required and where to find them, and where to store the finished item. Materials cannot be withdrawn without a withdrawal card, and production cannot begin without a production-order card. The cards are attached to containers when production commences. By manipulating the number of withdrawal and production cards in play at any time, management can control the flow of materials in the production system.

Reference:  The Kanban System

Difficulty:  Moderate

Keywords:  Kanban system, two-card

Learning Outcome:  Describe the advantages and disadvantages of various production strategies such as lean, Theory of Constraints, JIT, and Six Sigma

AACSB:  Application of Knowledge

 

18) When determining the number of kanban containers, discuss the impact of alpha, the policy variable, on the total amount of inventory in the system. If alpha is set equal to zero, is system inventory zero? What would be required to achieve a system-wide inventory of zero?

Answer:  The policy variable alpha adds safety stock to cover for unexpected circumstances, for example a quality issue or delays in supply. Even if alpha is zero, there is still inventory in the system as dictated by the average demand during lead time DDLT. The DDLT is calculated by multiplying the daily demand for parts by the sum of the average container travel time plus the average container process time. One unappealing way for system-wide inventory of zero would be for demand to drop to zero. Another way for system-wide inventory to be close to zero would be for a manufacturer to have very large capacity and fast processing. Such capacity and speed would be prohibitively expensive for processing tangible goods.

Reference:  The Kanban System

Difficulty:  Moderate

Keywords:  Kanban system, number of kanban containers, safety stock

Learning Outcome:  Describe the advantages and disadvantages of various production strategies such as lean, Theory of Constraints, JIT, and Six Sigma

AACSB:  Application of Knowledge

 

19) Jones Electric Motors uses a Kanban system to make motors for several garage door companies in the southeastern United States. The daily demand for motor housings used in manufacturing is 100 units. The average waiting time for a container of parts is 0.2 day. The processing time for a container of housings is 0.1 day, and a container holds 5 housings. If Jones wishes to use a 10% policy variable, how many containers are needed?

Answer: 

k =  =  = 6.6 → 7 containers

Reference:  The Kanban System

Difficulty:  Moderate

Keywords:  Kanban system, number of containers

Learning Outcome:  Describe the advantages and disadvantages of various production strategies such as lean, Theory of Constraints, JIT, and Six Sigma

AACSB:  Analytical Thinking

 

20) Happiness, Inc. uses a Kanban system. The daily demand for the most critical part, the Smylie, is 400 units over an eight-hour production period. The average waiting time for a container of Smylies is 30 minutes. The processing time for a container filled with Smylies is 6 minutes, and a container holds 5 units. If the company wishes to use a 5% policy variable, how many containers are needed?

Answer: 

k =  =  = 6.3 → 7 containers

Reference:  The Kanban System

Difficulty:  Moderate

Keywords:  Kanban system, number of containers

Learning Outcome:  Describe the advantages and disadvantages of various production strategies such as lean, Theory of Constraints, JIT, and Six Sigma

AACSB:  Analytical Thinking

21) Degan's Salad Dressings uses a Kanban system. The daily demand for corrugated boxes used in packaging its dressings is 300 boxes. The average waiting time for a container of boxes is 0.25 day. The processing time for a container of boxes is 0.1 day, and a container holds 10 boxes. If Burdell wishes to use a 10% policy variable, how many containers are needed?

Answer: 

k =  =  = 11.55 →12 containers

Reference:  The Kanban System

Difficulty:  Moderate

Keywords:  Kanban system, number of containers

Learning Outcome:  Describe the advantages and disadvantages of various production strategies such as lean, Theory of Constraints, JIT, and Six Sigma

AACSB:  Analytical Thinking

 

22) Champion Cooling Company uses a kanban system at their two locations in the Oklahoma City Metroplex. The daily demand for fans is 2000 at each location and management insists on using the same alpha level (0.1) at both locations. Location Reno uses containers that hold 20 items and takes 0.04 of a day to process a container. It takes 0.07 of a day to get a container filled and for it to wait during its cycle. Location Western uses containers that hold 24 items and takes 0.02 of a day to process a container. It takes 0.08 of a day to get a container filled and for it to wait during its cycle. Which location has the higher level of inventory? Assume that both locations round up to the next highest integer number of containers.

Answer: 

kReno =  =  = 12.1 →12

WIPReno = 20 × 13 = 260

 

kWestern =  =  = 9.16 →9

WIPWestern = 24 × 10 = 240

Reference:  The Kanban System

Difficulty:  Moderate

Keywords:  Kanban system, number of containers

Learning Outcome:  Describe the advantages and disadvantages of various production strategies such as lean, Theory of Constraints, JIT, and Six Sigma

AACSB:  Analytical Thinking

 

23) Champion Cooling Company uses a kanban system at their location in the Oklahoma City Metroplex. The daily demand for fans is 2000 and management insists on using an alpha level of 0.1. They use containers that hold 20 items and takes 0.04 of a day to process. It takes 0.07 of a day to get a container filled and for it to wait during its cycle. How many containers should they use? If they use the nearest integer value number of containers, what is the actual system alpha?

Answer: 

k =  =  = 12.1 → 12 containers

12 =  =  

240 = 2000 (.04 + .07)(1 + α)

 = .11(1 + α)

 = 1 + α

  1. - 1 = α

  = α

Reference:  The Kanban System

Difficulty:  Moderate

Keywords:  Kanban system, number of containers

Learning Outcome:  Describe the advantages and disadvantages of various production strategies such as lean, Theory of Constraints, JIT, and Six Sigma

AACSB:  Analytical Thinking

 

 

24) Champion Cooling Company uses a kanban system at their location in the Oklahoma City Metroplex. The daily demand for fans is 2000 and management insists on using an alpha level of 0.1. They use containers that hold 24 items and takes 0.02 of a day to process. It takes 0.08 of a day to get a container filled and for it to wait during its cycle. How many containers should they use? If they use the nearest integer value number of containers, what is the actual system alpha?

Answer: 

k =  =  = 9.16 → 9 containers

9 =  =

24 × 9 = 2000(.02 + .08)(1 + α)

 

 = .10(1 + α)

 = 1 + α

1.08 - 1 = α

0.08 = α

Reference:  The Kanban System

Difficulty:  Moderate

Keywords:  Kanban system, number of containers

Learning Outcome:  Describe the advantages and disadvantages of various production strategies such as lean, Theory of Constraints, JIT, and Six Sigma

AACSB:  Analytical Thinking

25) Burdell Salad Dressings uses a Kanban system. The daily demand for corrugated boxes used in packaging its dressings is 300 boxes. The average waiting time for a container of boxes is 0.25 day. The processing time for a container of boxes is 0.1 day, and a container holds 10 boxes. If Burdell wishes to use a 5% policy variable, what is the level of work in process inventory in their plant?

Answer: 

k =  =  = 11.025 →12 containers

WIP = 10 × 12 = 120 units

 

Assuming they round up, their WIP is 120 units. If they round down, they would have 110 units of WIP.

Reference:  The Kanban System

Difficulty:  Moderate

Keywords:  Kanban system, number of containers

Learning Outcome:  Describe the advantages and disadvantages of various production strategies such as lean, Theory of Constraints, JIT, and Six Sigma

AACSB:  Analytical Thinking

 

 

26) The Peeps factory can be described as a three step process consisting of Mixing, Forming, and Packaging. Peeps are made in batches of 1000 and have a daily demand of 75,000 units during what the plant manager likes to call "the Peep season." Mixing has a cycle time of .02 seconds with a setup time of 30 seconds; Forming has a setup time of 24 seconds and a cycle time of .03 seconds, and Packaging has a setup time of 15 seconds with a cycle time of .04 seconds. Each process step is handled by one operator, who is available for 8 hours a day. What is the process bottleneck if each process step is assumed to have 100% uptime?

Answer:  Per Unit Processing = CT + Setup

Per Unit Processing = .02 + .03 = .05

Capacity =  =  = 576,000 Units at Mixing

 

Per Unit Processing = CT + Setup

Per Unit Processing = .03 + .024 = .054

Capacity =  =  = 533,333 Units at Forming

 

Per Unit Processing = CT + Setup

Per Unit Processing = .04 + .015 = .055

Capacity =  =  = 523,636 Units at Packaging

Reference:  The Kanban System

Difficulty:  Moderate

Keywords:  bottleneck, VSM, value stream mapping

Learning Outcome:  Describe the advantages and disadvantages of various production strategies such as lean, Theory of Constraints, JIT, and Six Sigma

AACSB:  Analytical Thinking

6.6  Operational Benefits and Implementation Issues

 

1) One big advantage of lean systems is that they can usually be put in place without any major changes to existing layouts.

Answer:  FALSE

Reference:  Operational Benefits and Implementation Issues

Difficulty:  Easy

Keywords:  lean system, line-flow layout

Learning Outcome:  Describe the advantages and disadvantages of various production strategies such as lean, Theory of Constraints, JIT, and Six Sigma

AACSB:  Application of Knowledge

 

 

2) Lean systems do not need stable master production schedules.

Answer:  FALSE

Reference:  Operational Benefits and Implementation Issues

Difficulty:  Easy

Keywords:  lean system

Learning Outcome:  Describe the advantages and disadvantages of various production strategies such as lean, Theory of Constraints, JIT, and Six Sigma

AACSB:  Application of Knowledge

 

3) If frequent, small shipments of purchased items cannot be arranged with suppliers, large inventory savings for these items cannot be realized.

Answer:  TRUE

Reference:  Operational Benefits and Implementation Issues

Difficulty:  Easy

Keywords:  lean system

Learning Outcome:  Describe the advantages and disadvantages of various production strategies such as lean, Theory of Constraints, JIT, and Six Sigma

AACSB:  Application of Knowledge

 

4) Implementing a lean system:

  1. A) has the advantage that workers have less stress because of the routine, repetitive work they perform.
  2. B) typically relieves the workers and first-line supervisors from activities such as scheduling, expediting, and productivity improvements.
  3. C) requires an examination of the reward system to make sure it is consistent with the JIT philosophy.
  4. D) involves the reorganization of material flows to that of a flexible flow.

Answer:  C

Reference:  Operational Benefits and Implementation Issues

Difficulty:  Moderate

Keywords:  JIT, just-in-time philosophy, reward system, lean system

Learning Outcome:  Describe the advantages and disadvantages of various production strategies such as lean, Theory of Constraints, JIT, and Six Sigma

AACSB:  Application of Knowledge

5) Which of the following is a process consideration in the implementation of a lean system?

  1. A) Firms might have to change existing layouts.
  2. B) Workstations typically will have to be moved farther apart.
  3. C) A contract with strict job classifications will have to be adopted.
  4. D) Plant access by rail will become necessary.

Answer:  A

Reference:  Operational Benefits and Implementation Issues

Difficulty:  Moderate

Keywords:  implementation, lean system, layout

Learning Outcome:  Describe the advantages and disadvantages of various production strategies such as lean, Theory of Constraints, JIT, and Six Sigma

AACSB:  Application of Knowledge

 

6) Which one of the following is an advantage of lean systems?

  1. A) Lean systems reduce equipment needs by using larger lot sizes.
  2. B) Lean systems can be implemented in any production environment.
  3. C) Lean systems result in a decrease in safety stock and work-in-process inventory.
  4. D) Lean systems result in an increase in manufacturing lead times.

Answer:  C

Reference:  Operational Benefits and Implementation Issues

Difficulty:  Moderate

Keywords:  lean system, WIP inventory, safety stock

Learning Outcome:  Describe the advantages and disadvantages of various production strategies such as lean, Theory of Constraints, JIT, and Six Sigma

AACSB:  Application of Knowledge

 

7) When implementing a lean system:

  1. A) managers can mitigate some of the effects of worker stress by judiciously using safety stocks and emphasizing material flows rather than worker pace.
  2. B) management should base the reward system on production volume.
  3. C) the plant layout is the only environmental characteristic that need not be analyzed.
  4. D) it is critical to develop a master production schedule that changes frequently as forecasts change.

Answer:  A

Reference:  Operational Benefits and Implementation Issues

Difficulty:  Moderate

Keywords:  lean system, worker stress, safety stock, material flow, worker pace

Learning Outcome:  Describe the advantages and disadvantages of various production strategies such as lean, Theory of Constraints, JIT, and Six Sigma

AACSB:  Application of Knowledge

8) The final assembly schedule in a lean system:

  1. A) should be developed for each product independent of the process requirements for the other products.
  2. B) strives to create a uniform flow at the work centers in the plant.
  3. C) avoids the use of small lot sizes because they create many production orders and cause confusion.
  4. D) allows daily changes in demand levels, regardless of size, to be incorporated immediately into the work center schedules.

Answer:  B

Reference:  Operational Benefits and Implementation Issues

Difficulty:  Moderate

Keywords:  assembly schedule, uniform flow, lean system

Learning Outcome:  Describe the advantages and disadvantages of various production strategies such as lean, Theory of Constraints, JIT, and Six Sigma

AACSB:  Application of Knowledge

 

 

9) What are the organizational issues companies must address before implementing a lean system?

Answer:  The organizational issues faced by companies include the human cost of lean systems (tends to create stress in workers), cooperation and trust (changes activities of workers and the relationships between them), and changing reward systems and labor classification.

Reference:  Operational Benefits and Implementation Issues

Difficulty:  Moderate

Keywords:  Lean system, human cost, cooperation, trust, reward system, labor classification

Learning Outcome:  Describe the advantages and disadvantages of various production strategies such as lean, Theory of Constraints, JIT, and Six Sigma

AACSB:  Application of Knowledge

 

10) What is schedule stability and why is it important in a lean system?

Answer:  Schedule stability refers to the realization of production planning. Once the plan and necessary production levels are established, they are held as constant as possible and as true to the plan as practical. Such stability is necessary so that all resources can be put to their best use, i.e., production lines can be balanced and employees can be assigned to tasks that keep them working in appropriate roles.

Reference:  Operational Benefits and Implementation Issues

Difficulty:  Moderate

Keywords:  JIT, just-in-time, assembly schedule, lean system

Learning Outcome:  Describe the advantages and disadvantages of various production strategies such as lean, Theory of Constraints, JIT, and Six Sigma

AACSB:  Application of Knowledge

 

 

 

 

----------------------------------

OPERATIONS MANAGEMENT - 2017 - COLLECTION

FREE DOWNLOAD

EBOOKS

Operations Management, 2015, 12th Edition, William J. Stevenson - Free Download Link
Operations Management, Sustainability and Supply Chain Management, 11th Edition, 2014, Jay Heizer, Barry Render - Free Download Link

Operations Management: Sustainability and Supply Chain Management, 12th Edition, Jay Heizer, Barry Render, Chuck Munson, 2017
Principles of Operations Management: Sustainability and Supply Chain Management, 10th Edition, 2017
Operations Research: An Introduction, 10th Edition, Hamdy A. Taha, 2017
Introduction to Operations and Supply Chain Management, 4th Edition, Cecil B. Bozarth, Robert B. Handfield, 2016
Operations Management: Processes and Supply Chains, 11th Edition, Lee J. Krajewski, Manoj K. Malhotra, Larry P. Ritzman, 2016

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1. Operations Management Ebooks - Free Downloads

2. Slides - 11th Edition - Free Downloads

3. Slides - 12nd Edition - Free Downloads

4. Full List of Videos Case Studies - Link

5. All articles about Operations Management

http://top20mba.com/mba-cases/94-mba-operation-management

2017 Updates

6. QUIZ, Multiple choice questions and answers

7. CASE STUDY GUIDES

8. Video Case study guides

 

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