Operations Management, 12e (Heizer/Render/Munson)

Chapter 16 Lean Operations

Lecturer: Fahmi R. Dalimunthe, CA., CPA., BKP

1) What does TPS stand for?

A) Total Production Streamlining
B) Toyota Production System
C) Taguchi's Production S's
D) Total Process Simplification
E) Transparent Processing System
Answer: B

2) Which of the following is generally found in most Lean environments?

A) a push or pull system, depending upon the rate of demand
B) a push system for high margin items and a pull system for low margin items
C) a push system for purchased parts and a pull system for manufactured
parts
D) push systems
E) pull systems
Answer: E

3) Which of the following is NOT a source of variability?

A) Employees, machines, and suppliers produce units late.
B) Customer demand is unknown.
C) Employees, machines, and suppliers produce units that conform to
standards.
D) Engineering drawings are inaccurate.
E) Drawings or specifications are incomplete.
Answer: C

4) Which of the following is specifically characterized by a focus on

continuous improvement, respect for people, and standard work
practices?
A) Just-in-time (JIT)
B) Toyota Production System (TPS)
C) Lean operations
D) Material requirements planning (MRP)
E) kanban
Answer: B

5) Which of the following is specifically characterized by continuous and

forced problem solving via a focus on throughput and reduced inventory?
A) Just-in-time (JIT)
B) Toyota Production System (TPS)
C) Lean operations
D) Material requirements planning (MRP)
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E) kanban
Answer: A

6) Which of the following statements regarding a pull system is TRUE?

A) Large lots are pulled from upstream stations.
B) Work is pulled to the downstream stations before it is actually needed.
C) Manufacturing cycle time is increased.
D) Problems become more obvious.
E) None of the above is true of a pull system.
Answer: D

7) Manufacturing cycle time is best defined as the:

A) length of the work shift, expressed in minutes per day.
B) time it takes a unit to move from one workstation to the next.
C) time between the start of one unit and the start of the next unit.
D) sum of all the task times to make one unit of a product.
E) time from raw materials receipt to finished product exit.
Answer: E

8) Which of the following is specifically characterized by the elimination

of waste through a focus on exactly what the customer wants?
A) Just-in-time (JIT)
B) Toyota Production System (TPS)
C) Lean operations
D) Material requirements planning (MRP)
E) kanban
Answer: C

9) Which of the following is NOT one of the Seven Wastes?

A) overproduction
B) transportation
C) assignment
D) defective product
E) motion
Answer: C

10) The 5Ss:

A) have the "flavor" of a housekeeping list.
B) are a checklist for lean operations.
C) have become a list of seven items in American practice.
D) can be used to assist with necessary changes in organizational culture.
E) All of these are true.
Answer: E

11) The list of 5Ss, although it looks like a housekeeping directive,

supports lean production by:
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A) identifying non-value items and removing them, in the "sort/segregate"
category.
B) reducing inventory, in the "standardize" category.
C) increasing variability through standardized procedures, in the "standardize"
category.
D) eliminating wasted motion through ergonomic studies, in the "support"
category.
E) building good safety practices, in the "shine/sweep" category.
Answer: A

12) Concerning relationships with suppliers, which of the following

combinations is critical to the success of JIT?
A) close relationships with trust
B) close relationships with skepticism
C) distant relationships with trust
D) distant relationships with skepticism
E) none of the above
Answer: A

13) Which one of the following is not a benefit of JIT implementation?

A) cost reduction
B) variability increase
C) rapid throughput
D) quality improvement
E) rework reduction
Answer: B

14) If the goals of JIT partnerships are met, which of the following is a
result?
A) For incoming goods, receiving activity and inspection are outsourced.
B) In-transit inventory falls as suppliers are located closer to facilities.
C) Suppliers maintain a variety of customers to reduce risk.
D) In-plant inventory replaces in-transit inventory.
E) All of the above are consequences of meeting the JIT partnership goals.
Answer: B

15) Which one of the following is a characteristic of a JIT partnership?

A) third-party logistics never used
B) maximal product specifications imposed on supplier
C) active pursuit of vertical integration
D) removal of incoming inspection
E) frequent deliveries in large lot quantities
Answer: D

16) Characteristics of just-in-time partnerships do NOT include:

A) removal of in-transit inventory.
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B) large lot sizes to save on setup costs and to gain quantity discounts.
C) long-term contracts.
D) produce with zero defects.
E) focus on core competencies.
Answer: B

17) Which of the following is not a goal of JIT partnerships?

A) removal of unnecessary activities
B) removal of in-plant inventory
C) removal of in-transit inventory
D) inspect all incoming shipments to ensure zero defects
E) All of the above are goals of JIT partnerships.
Answer: D

18) Which of the following is NOT a goal of JIT partnerships?

A) removal of unnecessary activities
B) removal of in-plant inventory
C) removal of in-transit inventory
D) obtain improved quality and reliability
E) All of the above are goals of JIT partnerships.
Answer: E

19) Which one of the following is a concern expressed by suppliers in JIT

partnerships?
A) having too many customers
B) delivery to the point of use
C) having limited ability to respond to changes in product and quality
D) large lot sizes
E) customers' infrequent engineering changes
Answer: C

20) How can a reduction of in-transit inventory be encouraged?

A) supplier location near plants
B) high setup costs
C) low carrying costs
D) use of trains, not trucks
E) low-cost, global suppliers
Answer: A

21) In JIT partnerships, suppliers have several concerns. Which of the

following is NOT such a concern?
A) desire for diversification
B) poor customer scheduling
C) small lot sizes
D) producing high enough quality levels
E) customers' infrequent engineering changes
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Answer: E

22) Which of the following is NOT a concern of suppliers as they prepare

to enter into JIT partnerships?
A) Suppliers feel that they would be less at risk if they contracted with more
than one customer.
B) Suppliers are concerned that customers will present frequent engineering
changes with inadequate lead time to deal with them.
C) Suppliers feel that their processes are suited for larger lot sizes than the
customer wants.
D) Suppliers are concerned that frequent delivery of small quantities is
economically prohibitive.
E) All of the above represent JIT supplier concerns.
Answer: E

23) Just-in-time systems make demands on layouts, including the need

for:
A) distance reduction.
B) increased flexibility.
C) reduced space and inventory.
D) cross-trained, flexible employees.
E) all of the above
Answer: E

24) Which one of the following is NOT a layout tactic in a JIT

environment?
A) work cells for families of products
B) fixed equipment
C) minimizing distance
D) little space for inventory
E) poka-yoke devices
Answer: B

25) Who is credited with coining the phrase, "Inventory is evil"?

A) Poka Yoke
B) Pat "Keiretsu" Morita
C) Kanban Polka
D) Shigeo Shingo
E) Taiichi Ohno
Answer: D

26) Which one of the following statements is TRUE regarding JIT

inventory?
A) It exists just in case something goes wrong.
B) It is the minimum inventory necessary to keep a perfect system running.
C) It hides variability.
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D) It is minimized with large lot production.
E) It increases if setup costs decrease.
Answer: B

27) A firm wants to develop a level material use schedule based on the
following data. What should be the setup cost?
Desired lot size: 60
Annual demand: 40,000
$20 per unit per
Holding cost: year
Daily production
rate: 320
Work days per
year: 250

A) $0.45
B) $4.50
C) $45
D) $450
E) $500
Answer: A

28) A product has annual demand of 100,000 units. The plant manager
wants production to follow a four-hour cycle. Based on the following data,
what setup cost will enable the desired production cycle?
d = 400 per day (250 days per year), p = 4000 units per day, H = $40 per
unit per year, and Q = 200 (demand for four hours, half a day).
A) $2.00
B) $7.20
C) $18.00
D) $64.00
E) $1,036.80
Answer: B

29) Which of the following is TRUE regarding the steps to reducing setup
times?
A) The first step involves performing as much setup preparation as possible
while the process/machine is operating.
B) The cycle of steps is repeated until setup time is reduced to under a minute.
C) The standardization of both tooling and work procedures is advantageous to
setup time reduction.
D) Move material closer and improve material handling are done before
operator training.
E) All of the above are true.
Answer: E

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30) If a factory wants to cut its current lot size in half, by what proportion
must setup cost change?
A) Setup cost must be cut to one fourth its current value.
B) Setup cost must also be cut in half from its current value.
C) Setup cost must double from its current value.
D) Cannot be determined.
E) Setup cost must quadruple from its current value.
Answer: A

31) Which one of the following statements is TRUE about the kanban
system?
A) The quantities in the containers are usually large to reduce setup costs.
B) It is associated with a push system.
C) It is useful to smooth operations when numerous quality problems occur.
D) The supplier workstation signals the customer workstation as soon as a
batch is completed.
E) The customer workstation signals to the supplier workstation when
production is needed.
Answer: E

32) Kanban is associated with all EXCEPT which of the following?

A) small lot sizes
B) signals, such as cards, lights, or flags
C) moving inventory only as needed
D) increased material handling
E) reductions in inventory
Answer: D

33) What does the Japanese word "kanban" mean?

A) low inventory
B) employee empowerment
C) card
D) continuous improvement
E) lot size of one
Answer: C

34) Which one of the following scenarios represents the use of a kanban to
reduce inventories?
A) A supervisor tells the operators to stay busy and start producing parts for
next month.
B) A "supplier" work center signals the downstream workstation that a batch
has been completed.
C) A supervisor signals to several work centers that the production rate should
be changed.
D) A "customer" work center signals to the "supplier" workstation that more
parts are needed.
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E) An operator asks the next station's operator to help him fix his machine.
Answer: D

35) The number of kanbans should be equal to which of the following?

A) one
B) the ratio of (demand during lead time + safety stock) to container size
C) one-half of the EOQ
D) one full day's production divided by the EOQ
E) the ratio of demand during lead time to (container size + safety stock)
Answer: B

36) Lead time for cakes is 2 days with daily demand of 10 cakes and a
safety stock of ½ a day. Each container (kanban) holds 1 cake. What is the
correct number of kanbans?
A) 4
B) 1
C) 5
D) 10
E) 25
Answer: E

37) The cook in a fast-food restaurant knows that 2 hamburger patties

and an order of fries should be started for each car that is waiting in line.
This is best an example of:
A) keiretsu.
B) kanban.
C) push production.
D) kaizen.
E) EOQ.
Answer: B

38) Lead time for computers is 7 days with daily demand of 5 computers
and a safety stock of 1 day. Each kanban holds 8 computers. What is the
correct number of kanbans?
A) 4.5
B) 1
C) 5
D) 7
E) 8
Answer: C

39) Lead time for computers is 5 days with daily demand of 25 and safety
stock of 5 computers. If management wants to use 10 kanbans how many
computers should each one hold?
A) 25
B) 1
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C) 5
D) 10
E) 13
Answer: E

40) A grocery store is attempting to implement a kanban system. Which

of the following would not be an application of kanbans?
A) An empty doughnut tray signaling the bakery to produce 2 dozen glazed
doughnuts.
B) A line of 5 people in the Chinese department signaling the department to
heat 5 Crab Rangoon.
C) A red light on top of the cashier's lane signals that the cashier needs
additional change replenished.
D) The meat department stocking up on turkeys before Thanksgiving.
E) All of the above are kanban applications.
Answer: D

41) Which of the following is FALSE regarding the links between JIT and
quality?
A) Inventory hides bad quality; JIT immediately exposes it.
B) JIT reduces the number of potential sources of error by shrinking queues
and lead times.
C) As quality improves, fewer inventory buffers are needed; in turn, JIT
performs better.
D) If consistent quality exists, JIT allows firms to reduce all costs associated
with inventory.
E) JIT increases the cost of obtaining good quality.
Answer: E

42) JIT makes quality cheaper because:

A) the cost of low quality can be hidden in inventory.
B) JIT adds more buffers to the system.
C) JIT prevents long runs of defects.
D) B and C
E) A, B and C
Answer: C

43) Great Lakes Barge and Baggage Company makes, among other things,
battery-operated bilge pumps. Which of the following activities is NOT
part of JIT? They:
A) communicate their schedules to suppliers.
B) produce in long production runs to reduce the impact of setup costs.
C) use a pull system to move inventory.
D) continuously work on reducing setup time.
E) produce in small lots.
Answer: B
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44) A manufacturer took the following actions to reduce inventory. Which
of these is generally not accepted as a JIT action?
A) It used a pull system to move inventory.
B) It produced in ever smaller lots.
C) It required deliveries directly to the point of use.
D) It picked the supplier that offered the lowest price based on quantity
discounts.
E) It worked to reduce the company's in-transit inventory.
Answer: D

45) Which of the following is not characteristic of a TPS employee?

A) knowledgeable
B) strict job classifications
C) know more about their job than anyone else
D) empowered
E) All of the above characterize a TPS employee.
Answer: B

46) Which of the following is NOT an attribute of lean operations?

A) eliminating almost all inventory through just-in-time techniques
B) minimizing space requirements by reducing the distance a part travels
C) pushing responsibility to the highest level possible through centralized
decision making
D) educating suppliers to accept responsibility for helping meet customer needs
E) building worker flexibility through cross-training and reducing job
classifications
Answer: C

47) Lean operations are known for their:

A) employee development.
B) supplier education.
C) supplier partnerships.
D) challenging jobs.
E) All of the above are attributes of lean operations.
Answer: E

48) Which of the following is characteristic of lean operations?

A) inventory buffers between each workstation to minimize system downtime
B) easy, mindless jobs
C) specialty workers with no cross-training
D) low space requirements
E) no supplier partnerships
Answer: D

49) Excess bags of basic commodities such as flour and sugar that are
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stored in a restaurant's kitchen represent which of the following wastes?
A) overproduction
B) queues
C) transportation
D) inventory
E) defective product
Answer: D

50) Which one is NOT an application of lean principle in services?

A) JIT in food supply management
B) improving kitchen layout at McDonald's to drive seconds out of the
production process
C) inventory sharing among members of the pharmaceutical network
D) scheduling personnel availability at 15 minute increments to meet demand
fluctuations
E) securing more inventory to prepare for disruption in production
Answer: E

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