M1-Process Management

Question 1

Just-in-time purchasing systems usually result in a reduction in the number of suppliers. Because a company that adopts J-I-T is very dependent on supplier performance, usually fewer suppliers are used and a very close working relationship is developed with existing suppliers. (true or false)

Answer 1

true

Question 2

Just-in-time has the goal to minimize the level of inventory carried. Typical characteristics include lot sizes equal to one, insignificant set-up times and costs, and balanced and level workloads. In a JIT environment, the flow of goods is controlled by a “pull” approach, where an item is produced only when it is needed down the line, and not a “push-through” system. (true or false)

Answer 2

true

Question 3

A JIT system is used to lower inventory levels and result in more purchase orders of fewer units each. If carrying costs are increasing, JIT would be beneficial. Costs per purchase order that are decreasing would also be conducive to JIT. (true or false)

Answer 3

true

Question 4

Total Quality Management (TQM) focuses on customer needs, continuous improvement, and quality circles. (true or false)

Answer 4

true

Question 5

Kaizen, or continuous improvement, occurs at the manufacturing stage where the ongoing search for cost reductions takes the form of analysis of production processes to ensure that resource uses stay within target costs. (true or false)

Answer 5

true

Question 6

The main objective in lean manufacturing is waste reduction. Although customer requirements and demand-pull serve as the basis for the approach, quality is not the preeminent concept. (true or false)

Answer 6

true

Question 7

The theory of constraints is concerned with maximizing throughput by identifying and alleviating constraints. (true or false)

Answer 7

true

Question 8

Six sigma is a quality improvement program that uses metrics to evaluate the achievement of goals. Improving current processes for the purpose of things like reducing defective product outputs is a big component of the program. (true or false)

Answer 8

true

Question 9

Quality assurance takes place in the implementation process, after the standard of quality has been defined. (true or false)

Answer 9

true

Quality is broadly defined in the authorization process.

The standard of quality is more precisely defined in the planning process. Quality assurance performance takes place after it is planned.