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100 Cards in this Set

  • Front
  • Back
In a JIT system, the computer inventory data is the interface and control point between customers and supply cycles.
False
Which of the following is least related to a push system?
Maximum customer responsiveness
Quick setup or changeover of tooling and fixtures is associated with ____.
Single minute exchange of dies
In the 5Ss, items identified as unnecessary and thus removed from a workplace would be included with which S?
Sort
In a push system, finished goods inventory is produced in advance of customer demand using a forecast of sales.
True
Lean principles are of primary benefit to manufacturers and provide little value to service organizations.
False
Single minute exchange of dies (SMED) frees up capacity for other productive uses
True
Which of the following is not one of the 5Ss
Synchronize
Firms use the "5S" principles to create a clean and organized work environment
True
ABC Manufacturing uses a Kanban system for a component. The daily demand is 800 units. Each container has a combined waiting and processing time of 0.34 days. If the container size is 50 and efficiency (safety) factor is 9 percent, how many Kanban card sets should be authorized (round up)?
6 sets
Principles of lean operating systems include all of the following except
Reduce workforce
Which one of the following statements is true
The heijunka system is a system of boxes much like in a mailroom set of boxes attached to a wall used to smooth production outputs.
According to the Toyota Motor Company, which of the following is not one of the seven major waste categories?
Single-piece flow
Southwest Airlines illustrates the application of "lean principles" when it
reduces airplane turnaround time at airport gates.
Lean operating systems seek to apply the principles of continuous flow to the production of discrete parts by reducing batch size, ideally to a size of one
True
The number of Kanban cards is dependent on all of the following except
Setup time
Which one of the following statements is true concerning Lean Six Sigma
Lean principles include the 5Ss framework and practices
Which one of the following statements is true
General Motors supply chain is a good example of a push system.
In lean thinking, waste need not be classified as simply material waste such as scrap and defective parts.
True
Six Sigma addresses visible problems in processes; lean production is more concerned with less visible problems.
False
Larger orders result in higher total holding cost but lower total ordering cost.
True
Demand that incorporates uncertainty is called ____.
Stochastic
Which one of the following statements is true?
The EOQ is most accurate when both inventory and order costs are estimated on a pure variable cost basis.

Which is not an advantage of the periodic review system?

Helps to control "A" items

Safety stock inventory is an additional amount of inventory kept over and above the average amount required to meet demand.

True

An airline seat is an example of an asset held for future use or sale.

True
Which one of the following statements is true
When demand is uncertain and no safety stock is maintained, stock outs will occur during approximately 50 percent of the cycles.
In the fixed-period system, managers must make two key decisions: the time interval between reviews, and the replenishment level.
True
Which one of the following is not true regarding the Fixed Period System (FPS
The optimal replenishment level includes the demand during the review period plus any desired safety stock.
Which of the following is not a key assumption underlining the classic economic order quantity (EOQ) model?
Demand is assumed to be stochastic
Inventory position is computed using all the following except
Lead time demand
Which one of the following statements concerning the economic order quantity (EOQ) model is not true when the unit holding cost increases?
total ordering cost will increase
Inventory that acts as a buffer between workstations in flow shops or departments in job shops is called ____ inventory.

Work-in-process

For the single-period inventory model, solving for the optimal order quantity involves using
marginal economic analysis
In ABC inventory analysis, which of the following is true for "C" items?
"C" items make up a lower percentage of total inventory value ($) than either "A" or "B" items.
Using ABC analysis, continuous monitoring and accurate record keeping relates best to ____ items

a

Because of demanding customers, organizations must always maintain a 100% service level
False
Additional inventory kept over and above the average amount required to meet demand is called ____ inventory.
Safety stock
Average inventory in the EOQ model is defined as
One-half the order quantity
Dependent demand, unlike independent demand, needs to be forecasted.
False

A(n) ____ produces goods in advance of customer demand using a forecast of sales and moves them to points of sale where they are stored as finished goods inventory.

Push system
A contract manufacturer can offer significant competitive advantages. Which one of the following is notan advantage of using a contract manufacturer?
Standardized design
ISO 9000:2000 principles consist of all of the following except
Zero defects
The center-of-gravity method takes all the following into account except
Service objectives
All of the following relate to Six Sigma except
Use of PDSA problem solving approach
A(n) ____ seeks to balance capacity and demand, might use only a few large distribution centers, and minimize costs of routing products from factories to retail stores and customers.
Efficient supply chain
Which one of the following statements is false?
At Dell, Inc. customer financing of purchases is a post-production service in their value chain.
The Supply Chain Operations Reference (SCOR) Model function that entails all order management activities from processing customer orders to routing shipments, managing goods at distribution centers and invoicing the customer is called ____.
Deliver
Which of the following is not one of W. Edwards Deming's 14 points
The only performance standard is Zero Defects
Which of the following is true regarding order amplification?
The fluctuation of orders is larger than the fluctuation in sales.
Machine down time and downgrading costs are examples of which type of quality cost
Internal-failure
In the SERVQUAL instrument for measuring service quality, the concept of assurance is associated with
The ability to convey trust and confidence
Cause-and-effect diagrams would help most in which phase of the DMAIC problem-solving approach
Analyze
Which of the following is not directly related to W. Edwards Deming
Quality is free
A tool to help focus on the most significant problems is
Pareto analysis
The weights typically used in the center-of-gravity method are
Volumes of goods
____ is the process of delaying product customization until the product is closer to the customer at the end of a supply chain.
Postponement
The metric "perfect order fulfillment" is often used to measure ____
Delivery reliability
Which of the following is not a part of Philip Crosby's philosophy of quality?
The only performance standard is Six Sigma
Where in its supply chain does Dell, Inc. begin to use a pull system?
supplier
The average number of entities completed per unit time⎯the output rate⎯from a process is called ____.
Throughput
A legal defense preparation is an example of a project.

true

The terms, "general purpose equipment," "flexible and capable of customizing work" and "wide variety of goods or services" best relate to
Job shops




A custom good or service is produced in anticipation of demand.

False
The service-positioning matrix focuses on the service encounter level rather than the overall design of the service system.

true

Little's Law
Evaluates average process performance
Which one of the following major activities is not one of the six major activities to design a goods-producing or service-providing process?
Use the product life cycle for each good or service to create a future state process map.
____ offer customers broad freedom to select the pathways that are best suited for their immediate needs and wants from many possible pathways through the service delivery system.
Customer-routed pathways
Dell computers and Subway sandwiches are examples of ____ goods.
Option

The Product-Process Matrix works well for both goods and services.

false

Job shop processes use flexible, general purpose equipment that is capable of customizing work for individual customers.

true

Which of the following is not a major activity in designing a goods-producing or service-providing process?
Utilize reengineering
Which of the following is not a common process design improvement strategy
Decreasing agility




A(n) ____ is a group of ____ needed to create and deliver an intermediate or final output

Activity; tasks

Configurations of standard parts, subassemblies, or services that can be selected by customers from a limited set are called "make to order" goods and services.

false




A group of tasks needed to create and deliver an intermediate or final output is called a process.

false

Which is the correct order of hierarchy?
Value chain, process, activity, task
A manufacturing firm that produces a standardized product, not made of discrete parts, with little-to-no customization, with high demand, is most likely to use this type of process.
continuous flow
Ships, weddings and estate planning are examples of ____ goods and services.
Make-to-order

Which of the following is least related to Value Stream Mapping?

Reengineering
In general, the designs of both goods and services follow a similar path. The critical differences lie in the detailed product and process design phases.

true

The design of a service cannot be done independently from the process by which the service is delivered.

true

Estate planning is an example of a low-contact system.

false

The final step in using the House of Quality involves identifying those technical features that meet any of the following criteria except
have the highest quality
The fundamental planning tool used to implement Quality Function Deployment is the
House of Quality
The text presents an integrative case study of LensCrafters. Which statement is correct?
Each store has a visible low contact area.
A(n) ____ is a promise to reward and compensate a customer if a service upset occurs
service guarantee

The design of a customer benefit package (CBP) focuses on the operational choices that the firm must make in order to provide the CBP.

false

Product simplicity encourages the use of standard parts and components.

true

Customer contact, for the purpose of classifying a system as being high-contact or low-contact, is measured by
the percentage of time the customer must be in the system relative to the total time it takes to provide the service
Which of the following is not a principal dimension of the servicescape?
Process and job design
Service guarantees provide a reward or compensation as a response to a service upset and are offered to customers after a service upset has occurred.

false

Which of the following is not a principal element in service encounter design?
Technology and information support systems
Which of the following is not one of the six customer attributes that impact the design and configuration of a customer benefit package?
Reliability




Ensuring that hotel staff at the front desk address a guest by name is an example of a servicescape requirement.

false

Prior to designing and configuring a customer benefit package, a firm should understand and develop its ____.
strategic mission and competitive priorities
The House of Quality shows the interrelationships between any pair of technical features

true

In design specification terminology, the target dimension is called
nominal
The design of a manufactured good focuses primarily on its physical characteristics

true

A service encounter design focuses on the interaction, directly and indirectly, between the service provider(s) and the customer.

true