Pretest Flashcards
Which of the following id a combined approach for process improvement and problem solving based on reducing non-value added activities, decreasing process variation, and improving product quality?
Lean Six Sigma
Lean six sigma is a management approach for problem solving and process improvement based on a combination of the different tools of six sigma and lean manufacturing.
Resource planning takes place at which of the following levels?
Business Plan
Resource planning addresses capacity planning conducted at the business plan level.
If risk reduction is the organizations primary motivation when selecting one or more suppliers for a good that is available from several sources, which method should it select?
Multisourcing
Which of the following types of files is a key input to material requirements planning (MRP)?
Bill of Material
The bill of material (BOM) is a listing of all the subassemblies, intermediates, parts, and raw materials that go into a parent assembly, showing the required quantity of each. When the MRP BOM explosion occurs, the BOM enables the identification of all items and quantities that need to be replenished. The routing file includes the operations to be performed, their sequence, the various work centers involved, and the standards for setup and run. The supplier master file contains the detail on suppliers used by the company and is considered part of the MRP output for purchase replenishment. The work center file contains the detail on the productive resources that are available for MRP production order output.
In the theory of constraints (TOC), what is the term” weakest link” used to describe?
Resource with the least throughput in the system
A company is seeking to design a new product as a low-cost manufacturer. Which of the following design methods brings product and process design groups together to achieve this objective?
Simultaneous engineering
Simultaneous engineering, also called participative design/engineering, is a concept that refers to the participation of all the functional areas of the firm in the product design activity. Suppliers and customers are often also included.
Various cost-saving opportunities can be achieved from acquiring businesses with closely related
Sales activities where products are sold tot he same customers
Various cost-saving opportunities spring from acquiring businesses with closely related sales and marketing activities where products are sold to the same customers. A single sales force can often reduce sales costs.
A statement of long-range strategy and revenue, cost, and profit objectives usually accompanied by budgets, a projected balance sheet, and a cash flow is called a
Business Plan
A business plan is a statement of long-range strategy and revenue, cost, and profit objectives usually accompanied by budgets, a projected balance sheet, and a cash flow.
A workstation can product 100 pencils per hour and possibly 20,000 per year. This is a measure of the workstation’s hourly and annual
Capacity
Capacity is the capability of a worker, plant, work center, machine, plant, or organization to produce output per time period.
Dividing the annual cost of sales by the average inventory level will produce which of the following values?
Inventory Turnover
Inventory turnover is the number of times an inventory cycles, or “turns over,” during the year. A frequently used method to compute inventory turnover is to divide the annual cost of sales by the average inventory level.
Order promising is the process of
making a delivery commitment
Product inventory that is accumulated by the manufacturer in advance of the peak selling season is an example of
Anticipation Inventory
Anticipation inventories are accumulated above basic pipeline stock to cover projected increases in sales or plant shutdowns and vacations.
Which of the following is a key performance indicator critical to manufacturing execution and accurate reflection of the company’s assets?
Record Accuracy
Record accuracy is a measure of the conformity of recorded values in a bookkeeping system to the actual values. This measure is critically important to production planning and purchasing teams, as inaccurate records lead to stockouts and lost production time.
Which of the following performance objectives refers to the ability to keep promises to customers?
Dependability
There are five generic performance objectives: quality, speed, dependability, flexibility, and cost.
Dependability refers to keeping promises to customers. These promises can include factors such as time and volume, and the ability to delivery the correct amount in the required time frame.
Which of the following is the most appropriate first step in managing risk?
Identify the potential causes of failure
In a make to order (MTO) environment, master scheduling should take place at which of the following levels?
Raw Material
In an MTO environment, a demand order is typically not produced until an actual order appears. As such, master scheduling in this environment is at the base component and raw material level.
In an effort to be more responsive to the market, sales wants to break into production runs in order to product other products. Which of the following manufacturing activities conflicts with the sales request?
Setup
Breaking into production runs will require an additional setup, extending the time required to produce the original product.
An organization is working to better empower its factory shop floor line workers by using some lean concepts. Which lean process will empower line worker while also reducing the cost of poor quality?
Jidoka
Jidoka is the Japanese term for the practice of letting those closest to a process to be able to stop the production line when a defect occurs. This will reduce the cost of poor quality by not allowing a defect to be repeated over multiple products.
Technology advances frequently can cause in increase in companies competing with enhanced features and functions. What does this typically lead to?
Shortened product life cycles
Which of the following statement is true of a situation in which the stocking unit of measure is different from the purchasing unit of measure?
The purchase order receipt will be in the purchasing unit of measure
The purchase order will be in the purchasing unit of measure, as will the receiving documents. Everything else will be in the stocking unit of measure.
A company reporting on its environmental activities and results makes sustainability an issue most important to its
Competitors
Successful green initiatives can be used as a competitive weapon.
How would a focused competitive strategy be best described?
Providing products to a narrow piece of the total market
Which is a production strategy that avoids idle capacity but would have issues if the forecast if inaccurate?
Level
A level strategy, also called production levelling, avoids excess or idle capacity but requires an accurate forecast or there could be shortfalls or excess inventory.
Mean time to repair (MTTR) is the average time
of product repair
Which of the following best describes a work center with actual output greater than planned output?
Running ahead of schedule
Output greater than planned means that the work center is ahead of schedule.
Lacking capacity and being short of material are conditions that would cause a work center to fall behind schedule. “Very good” is not necessarily true because it could lead to unnecessary inventory.
Which of the following are manufacturing order pick lists more likely to exclude?
Floor stock materials issued to the department
Floor stock items are already issued. The other responses would all need to be picked and issued to production.
- Low-cost C-item vendor-managed inventory
- Materials purchased specifically for an order
- Consignment items that are stocked out
A benefit of implementing electronic data interchange (EDI) with a supplier is a reduction in
data errors
Performance measurements and objectives should be aligned to the company’s
strategy
Performance objectives measure how well a firm is achieving its strategic goals.
Which tends to increase when shipments are by full truckload rather than less-than-tuckload?
Carrying Costs
While full truckloads (or full car or container loads) reduce pickup and delivery costs, handling costs, and billing costs, it does create lot-size inventory (cycle stock) which increases carrying costs.
When customers orders are received in a make-to-stock environment, they consume
finished goods
Which of the following management processes is responsible for balancing customer demand and the firm’s output capabilities?
Demand Management
The ability to determine the ongoing location of a shipment is
traceability
Which of the following is the most likely manufacturing environment for a disposable food storage container?
make to stock
Creating an extensive distribution system in order to reduce shipment time to customers conflicts with which of the following objectives?
Lowest distribution costs
The length of a forecast horizon is determines primarily by the
Purpose of the forecast
How far into the future a company wants to forecast is a critical decision determining the size of the forecast horizon.
Which of the following planning techniques should a company use to improve customer service from its regional warehouse?
Distribution Requirements Planning
Distribution requirements planning provides the supply warehouse with the information necessary to plan for the goods to be at the regional warehouse when needed.
Which of the following entities or conditions impacts demand by providing expectations that products will be sold at a fair price, that higher quality is required, that before-and after-sales service is available, and that products and their volumes are flexible?
Customers
Both consumers and industrial customers have become much more demanding, and suppliers have responded by improving the range of characteristics they offer. Some of the characteristics and selections customers expect in the products and services they buy are a fair price, higher-quality products and services, better delivery lead time, better pre- and after-sales service, and product and volume flexibility.
When capacity requirements planning (CRP) gets due dates and order quantities from materials requirements planning (MRP), what does it calculate with this information?
Load
MRP provides CRP with order quantities and due dates to compute the load.
Input/output control is a technique for monitoring the
Capacity requirements plan
Input/output control is a technique in which the actual input and output of a work center is compared with the planned input and output developed by capacity requirements planning.
A distributor is issues a refund for products the distributor purchased from the wholesaler as allowed by contract even though the goods are in resellable condition. Which is true of this process?
This reverse logistics process does not need to continue back to the product manufacturer.
Reverse logistics is concerned with the management of the flow of products and materials from the customer back through the supply chain to the originating source. The wholesaler might be able to return these products to the manufacturer(s), but they could also inspect and restock the products for future sale.
What sets out the provisions and agreements of a contract?
terms and conditions
Which of the following is a critical factor in the supplier selection process?
Suppliers manufacturing capability
Service or replacement parts are an example of
Independent demand items
Service or replacement items are examples of independent demand items. They are typically forecast because demand for them is not dependent on an item higher in the bill of material.
The final assembly schedule is at which of the following levels in the product structure in an assemble-to-order envirionment?
Shippable End-item level of the bill of material
The final assembly schedule would be at the level of the end item sold to the customer, which is level 0 of the bill of material.
An effective operations strategy identifies
performance objectives
An effective operations strategy identifies:
A vision of how the business’s operations and processes can contribute to its overall strategy.
Operations performance objectives.
The broad decisions that will provide the basis for the business’s sustainable development.
Which of the following includes the product cost plus the costs of logistics, such as warehousing, transportation, and handling fees?
Landed Cost
In the middle of April, an unusually large order comes in from a customer, at odds with forecast data. In May, the customer’s orders are more in line with forecasts, This could be a result of
An exceptional Event
Exceptional events might include a customer stockpiling product based on an anticipated strike, customer plant shutdowns or equipment failures, or severe weather keeping customers at home. Events such as these need to be recorded in the forecast notes to differentiate them from potential changes in a trend.
Projections based on historical sales information are which of the following types of forecasting methods?
Intrinsic
Intrinsic forecasts are based on internal factors, such as an average of past sales, knowledge of seasonal spending habits, etc.
Which of the following best describes the results of total quality control?
The product meets the expectations of the customer
The end result of a total quality control effort should always be meeting the product quality expectations of the customer.
Which of the following is the process of combining statistical forecasting techniques and judgement to construct demand estimates for products/services across the supply chain from the supplier’s raw materials to the consumer’s needs?
Demand Planning
Demand planning is the process of combining statistical forecasting techniques and judgment to construct demand estimates for products or services across the supply chain from the supplier’s raw materials to the consumer’s needs.
