Question 1

Applying lean concepts to logistics is difficult unless either the manufacturer or the customer owns the logistics activities.

Accepted Answer

A) True 
 B)False

Question 2

In setting up a kanban control system you need to determine the number of kanban card sets needed.If the expected demand during lead time is 25 per hour, the safety stock is 20 percent of the demand during lead time, the container size is 5, and the lead time to replenish an order is 5 hours, what the number of kanban card sets is needed?

Accepted Answer

A) 5 
B) 20 
C) 27 
D) 30 
E) 34 
A) 5 
B) 20 
C) 27 
D) 30 
E) 34

Question 3

Using the formula in the textbook, the only parameters we need to determine the number of kanban card sets is the average number of units demanded over some time period, the container size, and the safety stock.

Accepted Answer

A) True 
 B)False

Question 4

"Quality at the source" requires factory workers to become their own inspectors.

Accepted Answer

A) True 
 B)False

Question 5

Which of the following is a lean production technique that has been successfully applied in service firms?

Accepted Answer

A) Decision trees 
B) Leveling the facility load 
C) Linear programming 
D) Fully utilized capacity 
E) Backflushing 
A) Decision trees 
B) Leveling the facility load 
C) Linear programming 
D) Fully utilized capacity 
E) Backflushing

Question 6

To implement lean production schedules, a firm would do which of the following?

Accepted Answer

A) Have excess capacity. 
B) Force demand. 
C) Hire a consultant. 
D) Achieve bottom-up management. 
E) Implement kanban groups. 
A) Have excess capacity. 
B) Force demand. 
C) Hire a consultant. 
D) Achieve bottom-up management. 
E) Implement kanban groups.

Question 7

In the textbook, Toyota's Fujio Cho identified which of the following types of waste to be eliminated?

Accepted Answer

A) Underproduction 
B) Excess quality 
C) Preventive maintenance 
D) Product defects 
E) Kaizen 
A) Underproduction 
B) Excess quality 
C) Preventive maintenance 
D) Product defects 
E) Kaizen

Question 8

Subcontractor networks are not very important in Japanese manufacturing.

Accepted Answer

A) True 
 B)False

Question 9

Consider the relationship between optimal lot size and set-up cost.Other things remaining the same, as the set-up cost decreases,

Accepted Answer

A) Holding cost will increase 
B) Optimal production batch size will increase.. 
C) Optimal production batch size will decrease. 
D) Optimal production batch size will increase 
E) A and C 
A) Holding cost will increase 
B) Optimal production batch size will increase.. 
C) Optimal production batch size will decrease. 
D) Optimal production batch size will increase 
E) A and C

Question 10

Kanban means "symbol" or "box" in Japanese.

Accepted Answer

A) True 
 B)False

Question 11

Which of the following are related to lean production?

Accepted Answer

A) A philosophy of waste elimination 
B) Lean consumption 
C) Never running out of inventory 
D) The Wahei-Subaru method 
E) Full use of capacity 
A) A philosophy of waste elimination 
B) Lean consumption 
C) Never running out of inventory 
D) The Wahei-Subaru method 
E) Full use of capacity

Question 12

Lean production is a management philosophy and a pull system throughout the plant.

Accepted Answer

A) True 
 B)False

Question 13

The goal of JIT production is to drive all inventory queues lower.

Accepted Answer

A) True 
 B)False

Question 14

Imagine comparing a manufacturing operation using regular lot-sizing and the same operation with a kanban/lean production approach.What would be your expectations of the difference between the total cost (i.e., inventory holding costs + setup/ordering costs) of each?

Accepted Answer

A) Inventory holding cost will increase nonlinearly with inventory. 
B) Total costs will be lower for the regular lot-size operation. 
C) Total costs will be lower for the kanban/lean production operation. 
D) The order quantity will be larger for the kanban/lean production approach. 
E) As long as the total quantity is the same, total costs will be the same. 
A) Inventory holding cost will increase nonlinearly with inventory. 
B) Total costs will be lower for the regular lot-size operation. 
C) Total costs will be lower for the kanban/lean production operation. 
D) The order quantity will be larger for the kanban/lean production approach. 
E) As long as the total quantity is the same, total costs will be the same.

Question 15

In the textbook, the expression "quality at the source" means that we need to purchase the best quality a supplier or vendor can provide.

Accepted Answer

A) True 
 B)False

Question 16

One of the many lean techniques that have been successfully applied in service firms is the upgrading of housekeeping.

Accepted Answer

A) True 
 B)False

Question 17

In a lean production system, we expect to see which of the following?

Accepted Answer

A) No extra inventory 
B) Extra inventory of critical parts held "just-in-case" 
C) More parts and fewer standardized product configurations 
D) Managers being held responsible for quality of the work turned out 
E) Closer management-labor relationships 
A) No extra inventory 
B) Extra inventory of critical parts held "just-in-case" 
C) More parts and fewer standardized product configurations 
D) Managers being held responsible for quality of the work turned out 
E) Closer management-labor relationships

Question 18

An activity where the parts that go into each unit of a product are periodically removed from inventory and accounted for based on the number of units produced is called which of the following?

Accepted Answer

A) Frozen window 
B) Backflush 
C) Level schedule 
D) Group technology 
E) Kanban 
A) Frozen window 
B) Backflush 
C) Level schedule 
D) Group technology 
E) Kanban

Question 19

You have been called in as a consultant to set up a kanban control system.The first thing you do is to determine the number of kanban card sets needed.Your research shows that the expected demand during lead time for a particular component is 1,200 per hour.You estimate the safety stock should be set at 5 percent of the demand during lead time.The tote trays used as containers can hold 2 units of stock, and the lead time to replenish an order is 10 hours.Which of the following is the number of kanban card sets necessary to support this situation?

Accepted Answer

A) 5,000 
B) 5,500 
C) 6,300 
D) 6,500 
E) 7,000 
A) 5,000 
B) 5,500 
C) 6,300 
D) 6,500 
E) 7,000

Question 20

JIT production means that we produce the product before it is required so the customer does not wait for the product.

Accepted Answer

A) True 
 B)False

Exam 14: Lean Supply Chains

Applying lean concepts to logistics is difficult unless either the manufacturer or the customer owns the logistics activities.

Using the formula in the textbook, the only parameters we need to determine the number of kanban card sets is the average number of units demanded over some time period, the container size, and the safety stock.

"Quality at the source" requires factory workers to become their own inspectors.

Which of the following is a lean production technique that has been successfully applied in service firms?

To implement lean production schedules, a firm would do which of the following?

In the textbook, Toyota's Fujio Cho identified which of the following types of waste to be eliminated?

Subcontractor networks are not very important in Japanese manufacturing.

Consider the relationship between optimal lot size and set-up cost.Other things remaining the same, as the set-up cost decreases,

Kanban means "symbol" or "box" in Japanese.

Which of the following are related to lean production?

Lean production is a management philosophy and a pull system throughout the plant.

The goal of JIT production is to drive all inventory queues lower.

Imagine comparing a manufacturing operation using regular lot-sizing and the same operation with a kanban/lean production approach.What would be your expectations of the difference between the total cost (i.e., inventory holding costs + setup/ordering costs) of each?

In the textbook, the expression "quality at the source" means that we need to purchase the best quality a supplier or vendor can provide.

One of the many lean techniques that have been successfully applied in service firms is the upgrading of housekeeping.

In a lean production system, we expect to see which of the following?

An activity where the parts that go into each unit of a product are periodically removed from inventory and accounted for based on the number of units produced is called which of the following?

JIT production means that we produce the product before it is required so the customer does not wait for the product.

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