OPS Final Study

Question 1

Overproduction(WASTE)

Answer 1

Manufacturing an item before it is needed, creating excessive lead times and inventory.

Question 2

Inappropriate
processing(WASTE)

Answer 2

Using expensive high-precision equipment when simpler machines would suffice. It leads to overutilization of expensive capital assets.

Question 3

Waiting(WASTE)

Answer 3

Wasteful time incurred when product is not being moved or processed, caused by long production runs and poor material flows.

Question 4

Transportation(WASTE)

Answer 4

Excessive movement and material handling of product between processes, which can cause damage and deterioration of product quality.

Question 5

Motion(WASTE)

Answer 5

Unnecessary effort related to the ergonomics of bending, stretching, reaching, lifting and walking.

Question 6

Inventory(WASTE)

Answer 6

Excess inventory hides problems, consumes space, increases lead times, and inhibits communication.

Question 7

Defects(WASTE)

Answer 7

Quality defects result in rework and scrap and add wasteful costs to the system (e.g., lost capacity, rescheduling, inspection, loss of goodwill).

Question 8

Underutilization of
employees(WASTE)

Answer 8

Failure of the firm to learn from and capitalize on its employees’ knowledge and creativity impedes long-term efforts to eliminate waste.

Question 9

Toyota Production System (Advantages)

Answer 9

▪ Minimal inventory
▪ Less space
▪ Easier to spot quality issues

Question 10

Toyota Production System (Disadvantages)

Answer 10

▪ Stable supply and demand
required
▪ High quality required
▪ A high-pressure working
environment

Question 11

Why do we care about inventory?

Answer 11

▪ Inventory is one of the biggest corporate assets.
- To finance, inventory is a cost and an asset—often focus is on reducing
inventory levels
- To sales, inventory is a constraint—without it, they cannot earn commission
* Inventory has more profit in than sales

Question 12

Inventory Management

Answer 12

The planning and controlling of inventories to meet the competitive priorities of the organization.

Question 13

Inventory

Answer 13

A stock of materials used to satisfy customer demand or to support the production of services or goods.

Question 14

1st kind of inventory

Answer 14

Raw Material Inventory: Unprocessed, purchased inputs

Question 15

2nd kind of inventory

Answer 15

Work-in-process (WIP) Inventory: Partially processed goods. Raw materials have been transformed, but not completed

Question 16

3rd kind of inventory

Answer 16

Finished Goods Inventory: Completed product ready for shipment or sale

Question 17

What purpose does inventory serve?

Answer 17

6 answers