question

Lean Operation

answer

A flexible system that uses minimal resources and produces high-quality goods or services

question

Just-In-Time (JIT)

answer

A highly coordinated processing system in which goods move through the system, and services are performed, just as they are needed

question

Muda

answer

Waste and Inefficiency

question

Pull System

answer

Replacing material or parts based on demand

question

Kanban

answer

A manual system that signals the need for parts or materials

question

Heijunka

answer

workload leveling

question

Kaizen

answer

Continuous improvement of the system

question

Jidoka

answer

quality at the source (automation)

question

Supporting Goals

answer

1. Eliminate disruptions 2. Make the System Flexible 3. Eliminate waste, especially excess inventory

question

Seven wastes of Lean Philosophy

answer

Inventory Overproduction Waiting time unnecessary transporting processing waste inefficient work methods product defects

question

The Kaizen Philosophy for Eliminating Waste:

answer

1. Waste is the enemy, and to eliminate waste it is neccessarty to get that hands dirty. 2. Improvement should be done gradually and continuously 3. Everyone should be invovled: Top managers, middle and workers 4. Kaizen is build on a cheap strategy, and it does not require spending great sums of technology or consultants

question

Building Blocks

answer

1. Product Design 2. Process Design 3. Personnel/Organizational Elements 4. Manufacturing planning and control.

question

Single-Minute exchange of die (SMED)

answer

a system for reducing changeover time

question

Autonomation

answer

Automatic detection of defects during production

question

Takt Time

answer

The cycle time needed to match customer demand for final product

question

Poke-Yoke

answer

Safeguards built into a process to reduce the possibility

question

Andon

answer

System of lights used at each workstation to signal problems or slowdowns

question

Activity-based costing

answer

Allocation of overhead to specific jobs based on their percentage of activities

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Push System

answer

Work is pushed to the next station as it is completed

question

Pull System

answer

A workstation pulls output from the preceding station as it is needed.

question

Kanban

answer

Card or other device that communicates demand for work or materials from the preceding

question

P-Kanban / Production Kanban

answer

Signals the need to produce parts

question

Conveyance Kanban (C- kanban)

answer

Signals the need to deliver parts to the next work center

question

Preventive Maintenance

answer

maintaining equipment i good operating condition and replacing parts that have tendency to fail before they actually do fail.

question

Housekeeping

answer

maintaining a workplace that is clean and free of unnecessary

question

Value Stream mapping

answer

a visual tool to systematically examine the flow of materials and information

question

Supply Cain Management

answer

the strategic coordination of the supply chain for the purpose of integrating supply and demand

question

Logistics

answer

The part of a supply chain involved with the forward and reverse flow of goods, services, cash, ad information

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Manufacturing Supply Chain

answer

Supplier, Mfg, Storage, Distributor, Retailer, Customer

question

Service Supply Chain

answer

Supplier, Storage, Service, Customer

question

Purchasing cycle

answer

Series of steps that begin with a request for purchase and end with notification of shipment received in satisfactory condition

question

Centralized Purchasing

answer

Purchasing is handled by one special department

question

Decentralized purchasing

answer

Individual departments or separate locations handle their own purchasing requirements

question

Strategic Partnering

answer

Two or more business organizations that have complementary products or services join so tat each may realize a strategic benefit

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Inventory velocity

answer

The speed at which goods move through a supply chain

question

Bullwhip effect

answer

Inventory oscillations become progressively larger looking backward through the supply chain

question

Vendor-Managed inventory

answer

Vendors monitor goods and replenish retail inventories when supplies are low

question

Order Fulfillment

answer

the processes involved in responding to customers orders.

question

Logistics

answer

The movement of materials, services, cash, and information in a supply chain

question

Traffic management

answer

Over-seeing the shipment of incoming and outgoing goods

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Radio Frequency Identification (RFID)

answer

A technology that uses radio waves to identify objects, such as goods in supply chains

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Third-party logistics (3-PL)

answer

The outsourcing of logistics management

question

Strategic sourcing

answer

Analyzing the procurement process to lower costs by reducing waste and non-value-added, activities, increase profits, reduce risk, and improve supplier performance

question

Information Velocity

answer

The speed at which information is communicated in a supply chain

question

Supply chain visibility

answer

A major trading partner can connect to its supply cian to access data in real time

question

Event management

answer

The ability to detect and respond to unplanned events

question

Fill rate

answer

the percentage of demand filled from stock on hand

question

Reverse Logistics

answer

the process of transporting returned items

question

Gatekeeping

answer

Screening returned goods to prevent incorrect acceptance of goods

question

Avoidance

answer

Finding ways to minimize the number of items that are returned

question

Closed-Loop Supply Chain

answer

A manufacturer controls both the forward and reverse shipment of product

question

Cross-Docking

answer

a technique whereby goods arriving at a warehouse from a supplier are unloaded from the supplier's truck and loaded onto outbound trucks, thereby avoiding warehouse storage

question

Delayed differentiation

answer

Production of a standard components and sub assemblies, which are held until late in the process to add differentiating features

question

disintermediation

answer

reducing one or more steps in a supply chain by cutting out one or more intermediaries

question

Scheduling

answer

Establishing the timing of the use of equipment, facilities, and human activities in an organization

question

Flow System

answer

High volume system in which jobs all follow the same sequence

question

Flow-shop scheduling

answer

Scheduling for flow systems

question

Job-shop scheduling

answer

Scheduling for low-volume systems with many variations in requirements

question

Loading

answer

The assignment of jobs to processing centers

question

Gantt Chart

answer

Chart used as a visual aid for loading and scheduling purposes

question

Load Chart

answer

A gannt chart that shows the loading and idle times for a group of machines or list of departments

question

Infinite loading

answer

Jobs are assigned to work centers with-out regard to the capacity of the work center

question

Finite loading

answer

Jobs are assigned to work centers taking into account the work center capacity and job processing times.

question

Forward scheduling

answer

Scheduling ahead from a point in time

question

Backward scheduling

answer

scheduling backward from a due date

question

Scheduling Chart

answer

A gannt chart that shows the orders or jobs in progress and whether they are on schedule

question

Input/output (I/O) Control

answer

Managing work flow and queues at work centers

question

Assignment model

answer

A linear programming model for optimal assignment of tasks and resources

question

Hungarian method

answer

Method of assigning jobs by a one-for-one matching to identify the lowest-cost solution

question

Sequencing

answer

Determining the order in which jobs at a work center will be processed

question

Workstation

answer

an area where one or a few workers and/or machines perform similar work

question

Priority rules

answer

Simple heuristics used to select the order in which jobs will be processed

question

Job time

answer

Time needed for setup and processing of a job

question

Local priority rules

answer

Focus on information pertaining to a single workstation when establishing a job sequence

question

Global priority rules

answer

Incorporate information from multiple workstations when establishing a job sequence

question

Job Flow time

answer

The amount of time from when a job arrives until it is finished

question

Job lateness

answer

The difference between the actual completion date and the due date

question

Makespan

answer

Total time needed to complete a group of jobs from the beginning of the first job to the completion of the last job

question

Johnson's Rule

answer

Technique for minimizing makespan for a group of jobs to be processed on two machines or at two work centers

question

Process batch

answer

The economical quantity to produce upon the activation of a given operation

question

Transfer Batch

answer

The quantity to be transported from one operation to another, assumed to be smaller than the first operation's process batch

question

Theory of Constraints

answer

Production planning approach that emphasizes balancing flow throughout a system, and pursues a perpetual five-step improvement process centered around the system's currently most restrictive constraint

question

Yield Management

answer

The application of pricing strategies to allocate capacity among various categories demand

question

Project Champion

answer

A person who promotes and supports a project

question

Work Breakdown Structure (WFBS)

answer

a hierarchical listing of what must be done during a project

question

PERT (program evaluation and review technique)

answer

Planning and coordinating large projects

question

CPM (Critical Path method)

answer

Critical path method, for planning and coordinating large projects

question

Networking Diagram

answer

Diagram of project activities that shows sequential relationships by use of arrows and nodes

question

Activity-on-Arrow (AOA)

answer

Network diagram convention in which arrows designate activities

question

Activity-on-Node (AON)

answer

Network diagram convention in which nodes designate activities

question

Activities

answer

Project steps that consume resources and/or time

question

Events

answer

The starting and finishing of activities, designated by nodes in the AOA convention

question

Path

answer

A sequence of activities that leads from the starting node to the finishing node

question

Critical Path

answer

The longest path; determines the expected project duration

question

Critical Activities

answer

Activities on the critical path

question

Slack

answer

Allowable slippage for a path; the difference between the length of a path and the length of the critical path

question

Deterministic

answer

Time estimates that are fairly certain

question

Probabilistic

answer

Estimates of times that allow for variation

question

Optimistic times

answer

The length of time required under optimal conditions

question

Pessimistic time

answer

The length of time required under the worst conditions

question

Most Likely Time

answer

The most probable length of time that will be required

question

Beta Distribution

answer

Used to describe the inherent variability in activity time estimates

question

Independence

answer

Assumption that path duration times are independent of each other; requiring that activity times be independent, and that each activity is on only one path

question

Crashing "Project Crashing"

answer

Shortening activity durations. By spending more money and expediting the project

question

Which of the following is not one of the assumptions of the basic EOQ model?

answer

D. Quantity discounts are available

question

Which is an application for RFID tags?

answer

A. Monitoring the temperature of fruit during shipment

question

A non-linear cost related to order size is the cost of

answer

D. Receiving

question

In a two-bin inventory system, the amount contained in the second bin is equal to the:

answer

A. ROP

question

When carrying costs are stated as a percentage of unit price, the minimum points on the total curves .....

answer

C. Do not line up

question

Dairy items, fresh fruit, and newspapers are items that

answer

C. are subject to deterioration and spoilage

question

Which is not included in order costs?

answer

E. temporary storage of delivered goods

question

In an ABC system, the typical percentage of the number of items in inventory for A items is about:

answer

A. 10

question

In the ABC classificiation system, items which account for fifteen percent of the total dollar-volume for a majority of the inventory items would be classified as:

answer

C. C items

question

Dairy items, fresh fruit, and newspapers are items that

answer

C. are subject to deterioration and spoilage

question

In the ABC classificiation system, items which account for sixty percent of the total dollar volume for few inventory items would be classified as:

answer

A. A items

question

The purpose of "cycle counting" is to:

answer

C. reduce discrepancies between inventory records and actual

question

The EOQ model is most relevant for which of the following?

answer

E. determining fixed order quantities

question

In a supermarket, the every Monday morning restocking of shelves by a bread vendor is an example of

answer

D. Fixed order interval

question

A cycle count program will usually require that 'A' items be counted:

answer

E. more frequently than annually

question

A risk avoider would want ___ safety stock

answer

B. More

question

In the basic EOQ model, if annual demand doubles, the effect on the EOQ is:

answer

E. It increases by about 40 percent

question

In the basic EOQ model, if lead time increases from five to 10 days, the EOQ will:

answer

D. remain the same

question

In the basic EOQ model, an annual demand of 40 units, an ordering cost of $5, and a holding cost of $1/unit per year will result in

answer

A. 20

question

In the basic EOQ model, if D= 60 per month, S=$12, and H = $10 per unit per month, EOQ is:

answer

B. 10

question

In the basic EOQ model, if annual demand is 50, carrying cost is $2, and ordering cost is $15, EOQ is approximately:

answer

D. 28

question

Which of the following is not true for the EOQ with incremental replenishment model?

answer

D. THere are no ordering or set up costs

question

The introduction of quantity discounts will cause the optimum order quantity to be:

answer

E. unchanged or greater

question

A fill rate is the percentage of____ filled by stock on hand

answer

B. Demand

question

In the quantity discount model, with carrying cost stated as a percentage of unit purchase price, in order for the EOQ of the lowest curve to be optimum, it must:

answer

B. be in a feasible range

question

Which of the following is not generally a determinant of the reorder point?

answer

E. purchase cost

question

If no variations in demand or lead time exist, the ROP will equal:

answer

B. expected usage during the lead time

question

If average demand in an inventory item is 200 units per day, lead time is three days, and safety stock is 100 units, the reorder point is:

answer

E. 700 units

question

Which of the following is implied by a "lead time" service level of 95 percent?

answer

D. The probability is 95 percent that demand during lead time will not exceed the amount on hand at the beginning of lead time

question

The management of supply chain inventories focuses on:

answer

C. both internal and external inventories

question

An operations strategy for inventory management should work towards:

answer

B. decreasing lot sizes

question

The Japanese manufacturing strategy of recognizing the numerous opportunity costs of carrying inventories result in:

answer

D. decreased lot sizes

question

An operations strategy which recognizes high carrying costs and reducces ordering costs will result in:

answer

C. greatly decreased order quantities

question

The need for safety stocks can be reduced by an operations strategy which:

answer

E. decreases lead time variability

question

If average demand for an item is 20 units per day, safety stock is 50 units, and lead time is four days, the ROP will be:

answer

E. 130 days

question

With an ABC system, an item that had a high demand but a low annual dollar volume would probably be classified as:

answer

C. C

question

Which item would be least likely to be ordered under a fixed order interval system?

answer

B. auto parts at an assembly plant

question

Which one of these would not be a factor in determining the reorder point?

answer

A. the EOQ

question

Which of the follwoing most closely describes dependent deman?

answer

C. derived demand

question

ERP implementation probably won't require:

answer

B. more than three or four months to install

question

A computer based information system designed to handle ordering and scheduling of dependent-demand inventories is:

answer

D. material requirements planning (MRP)

question

The development and application of MRP depnded upon two developments: (1) the recognition of the difference between independent and dependent demand, and (2):

answer

A. computers

question

The output of MRP is:

answer

C. a schedule of requirements for all parts and end items

question

Which one of the following is not an input in an MRP system?

answer

A. planned-order schedules

question

The MRP input stating which end items are to be produced, when they are neeeded, and what quantities are needed, is the:

answer

A. master schedule

question

In an MRP master schedule, the planning horizon is often separated into a series of times periods called:

answer

D. time buckets

question

The MRP input listing the assemblies, subassemblies, parts, and raw materials needed to produce one unit of finished product is the:

answer

B. bill-of-materials

question

A visual depiction of the subassemblies and components that are needed to produce and/or assemble a product is called a(n):

answer

B. product struture tree

question

The MRP input storing information on the status of each item by time period (e.g., scheduled receipts, lead time, lot size) is the:

answer

C. inventory-records

question

Which one of the following most closely describes net material requirements?

answer

A. gross requirements-amount on hand - scheduled receipts

question

In MRP, "scheduled receipts" are:

answer

C. open orders (that is, ordered before the first time bucket, but not delivered yet)

question

In MRP under lot-for-lot ordering, "planned-order receipts" are:

answer

B. identicial to "planned-order releases"

question

Under lot-for-lot, order sizes for component parts are essentially determined directly from which one of the following?

answer

B. net requirements

question

In MRP, the gross requirements of a given component part are calculated from:

answer

E. planned orders of the immediate parent

question

The identification of parent items is called:

answer

B. Pegging

question

Periodic updating of an MRP system to account for all changes which have occurred within a given time interval is called:

answer

D. regenerative

question

An MRP system whose records are updated continuously is referred to as a(n):

answer

D. net-change system

question

Which is true of a net-change system?

answer

C. the basic production plan is modified to reflect changes as they occur

question

Which one of the following most closely describes the MRP approach that is used for components or subassemblies to compensate for variations in lead time?

answer

D. safety time

question

Which of the following lot sizing methods does not attempt to balance ordering (or setup) and holding costs?

answer

C. lot for lot

question

When MRPII systemes include feedback, they are known as:

answer

E. closed up MRP

question

The multiplication process used by MRP to determine lower level requirements is called:

answer

E. exploding

question

____ is choosing how many to order or make

answer

C. Lot sizing

question

Which of the following is not usually necessary in order to have an effective MRP system?

answer

C. lot-for-lot ordering

question

The ___ of ERP makes it valuable as a strategic planning tool.

answer

D. Real-time aspect

question

A recent effort to expand the scope of production resource planning by invlving other functional areas in the planning process has been:

answer

C. manufacturing resources planning

question

Which statement concerning MRP II is flase?

answer

E. it produces a production plan which includes all resources required

question

Which of these items would be most likely to have dependent demand?

answer

A. X-box batteries

question

Which of these products would be most likely to have dependent demand?

answer

B. automobile engines

question

JIT in its conceptual sense:

answer

ALL THE ABOVE (is a lean production system, has no idle items wainging to be processed, has no idel workers, and has no idle workstations waiting to process work)

question

JIT philosophy suggests that workers are ...

answer

A. Assets

question

The ultimate goal of JIT is to have:

answer

C. a smooth, rapid flow of materials through the system

question

Which one of the following is not one of the building blocks that is the foundation of JIT?

answer

E. kanban

question

Building up an inventory of standard parts or modules instead of immediately producing the finished end items is the essence of:

answer

A. delayed differentiation

question

Which of the wolloing would you not expect to see in JIT?

answer

E. a signficant number of daily schedule changes

question

The comprehensive approach used in JIT systems to deal with quality includes:

answer

D. A, B and C

question

Which of the following is not a benefit of small lot sizes in JIT systems?

answer

B. Each product is produced less frequently

question

In the JIT philosophy, the ideal lot size is:

answer

C. one unit

question

Which of the following does not contribute to reduced setup time and cost?

answer

C. custom setup procedures for each product

question

A conveyance ____ signals parts movement

answer

D. Kanban

question

The term that refers to the automatic detection of defects is:

answer

C. autonomation

question

A basic requirement for operating with low inventories present in JIT systems is:

answer

D. major problems must have been solved

question

Which of the following is not characteristic of preventive maintenance in JIT systems?

answer

D. eliminating supplies of spare parts to reduce capital investment

question

The Five S's don't include ...

answer

C. Sanitize

question

The Kaizen Philosophy applies to ....

answer

C. Waste

question

A kanban card is used to signal that:

answer

A. work is needed at the work center

question

With regard to suppliers, JIT systems typically require:

answer

D. long-term relationships and commitments

question

Which of the following is characteristic of the JIT philosophy?

answer

C. Vendors are co workers, essentially other departments of our organization

question

The activities controlled in the same way by kanban and MRP II is the determination of

answer

B. products to be built

question

Process design supporting JIT doesn't include...

answer

B. Duplicate facilities

question

Allowing suppliers to manage the restocking of their products in our inventories is part of:

answer

C. JIT II

question

A suffessful conversion to a JIT system requires that the conversion:

answer

C. convert vendors to JIT as one of the last steps

question

A potenetial obstacle to conversion to a JIT system is:

answer

D. all of the above

question

A system of lights used at each workstation to signal problems or slowdowns is:

answer

C. andon

question

Which of the following contributes to the competitive advantage enjoyed by firms using JIT/lean production?

answer

E. Greater flexibility to cope with change

question

With regard to suppliers, JIT systems typically involve:

answer

C. long-term relationships

question

A common objective of both MRP and JIT is to:

answer

B. minimize inventory

question

The ultimate objective in a JIT system is:

answer

D. balanced and rapid flow

question

Which of the following is not a goal of supply chain management?

answer

D. lowest possible transportation costs

question

Logistics includes all of these except:

answer

D. customer selection

question

Small changes in consumer demand can result in large variations in orders placed because of the ...

answer

D. Bullwhip effect

question

RFID chips: (I) are used to track goods in distribution (II) are used to track job progress in production (III) may provide special instructions to operators (IV) can be used in invetory record keeping

answer

D. I, II, and IV

question

Which of the following is not a benefit of RFID?

answer

C. frequent deliveries of smaller shipments

question

A factor that makes it desirable for business organizations to actively manage their supply chains is;

answer

B. increasing globalization

question

Which of the following is not a benefit of effect supply chain management?

answer

E. larger number of suppliers

question

Which of the following is not a measure of the reliability of the supply chain?

answer

A. supply chain response time

question

The automatic identification of material is part of:

answer

B. RFID

question

Which of the following is not an application of E-business?

answer

E. universal product codes

question

Which of the following is an advantage of e-business? (I) reduction of transaction costs (II) shortened supply chain response time (III) greater customer loyalty

answer

C. I and II

question

Which of the following is a barrier to integration of separate organizations in the supply chain? (I) conflicting objectives of the companies in the chain (II) different level of capacity of the companies in the chain (III) reluctance of the organizations in the chain to allow other organizations access to their data.

answer

D. I and III

question

_____ has helped business concentrate on their core business.

answer

C. Outsourcing

question

Outsourcing followed by ________ is not simple.

answer

C. backsourcing

question

The interface between the firm and its suppliers is:

answer

A. purchasing

question

The two types of decisions that are relevant to supply chain management are:

answer

E. Strategic, operational

question

One important object of purchasing is to:

answer

B. be knowledgeable about new products

question

The purchasing cycle begins with:

answer

E. receiving a requisition

question

Examination of the sources of a supply for purchased parts or materials in order to improve performance is called:

answer

A. vendor analysis

question

Vendor analysis has the greates potential for savings for items which have:

answer

E. high annual cost-volume

question

Which of the following is not true of vendor analysis?

answer

A. It involves an examination of the function of purchased parts or raw materials

question

Which of the following is not a performance dirver?

answer

C. Stability

question

Which of the following would not usually be a mian factor in selecting a vendor?

answer

D. inventory turnover

question

Which of the following is part of the purchasing cycle? (I) Purchasing selects a supplier (II) Orders from vendors are received (III) Purchasing receives a requisition

answer

B. I, II, and III

question

Which of the following is not a key consideration when a company chooses a supplier?

answer

C. value analysis

question

Which of the following is not a benefit of centralized purchasing?

answer

C. quick response to local needs

question

The purchasing perspective of the supplier as a partner is characterized by:

answer

B. one or a few suppliers

question

Vendor Analysis is the examination of the ____ of purchased materials.

answer

B. Source

question

A system for inventory management involving multi-echelon warehouse is called:

answer

E. DRP

question

Which of the following is a principle required for ethical behavior in purchasing?

answer

D. all of the above (loyalty to employer, justice to those you deal with, faith in your profession)

question

The activity which begins with a request from within the organization is:

answer

B. Purchasing cycle

question

Our organization can obtain visibility to potential trading partners on the internet by using:

answer

C. B2B

question

Real time information about product movement on store shelves could benefit from the use of:

answer

D. radio frequency identification tags

question

The webiste and order fulfillment are essential features of :

answer

B. e-commerce

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