About the Product

• 1.An advantage of a make-to-stock process is which of the following?
o It responds directly to customer orders
o It allows the firm to avoid inventory costs
o Rapid delivery of a standard product
o All units of output are unique

• 2.According to Little’s law, which of the following can be used to estimate inventory?
o Set up time times throughput rate
o Process time times cycle time
o Process velocity times flow time
o Throughput rate times flow time

• 3. Which of the following is a principle of reengineering?
o Integrate the outcomes of parallel activities
o Organize around the tasks
o Treat geographically dispersed resources as though they were centralized
o Capture information many times, at the source and where it is interpreted

• 4. Which of the following is one of the major types of stakeholders impacted by most consulting projects?
o International government regulators
o Other consultants
o Board of directors
o Suppliers

• 5. In the pull system, which of the following is the partner that begins the process of pulling?
o Vendors
o Executive management
o Customers
o Quality control personnel

• 6. Which of the following production process terms best describes a stage in a multiple-stage process that limits the capacity of the overall process?
o Bottleneck
o Buffer
o Starving
o Blocking

• 7. To implement a flow process in developing a lean system, a firm might do which of the following?
o Eliminate some fixed costs
o Build product in anticipation of demand
o Reduce setup/changeover time
o Improve capacity utilization

• 8. Which of the following operations consulting tools are used in the cost impact and payoff analysis stage in the operations consulting process?
o SPC tools and bottleneck analysis
o Decision trees and stakeholder analysis
o Plant audits and statistical tools
o Customer surveys and gap analysis

• 9. If the run time for a batch of parts is 25 minutes on a machine, and the setup time is 75 minutes, which of the following is the operation time?
o 100 minutes
o 75 minutes
o 3 minutes
o 25 minutes

• 10. Which of the following are possible examples of cycle times?
o Time required to produce a batch of parts
o Time it takes for an instructor to grade an exam
o Time to set up a new assembly line
o Time that a part waits in queue

• 11. Which of the following is a key metric associated with value stream mapping?
o Lead time
o Product demand
o Defects per million operations
o Fixed costs

• 12. In contrast to TQM, what approach seeks radical change through innovation?
o Lean manufacturing
o Reengineering
o Project management
o JIT distribution

• 13. What is the term that refers to “the fundamental rethinking and radical redesign of business processes to achieve dramatic improvements in critical, contemporary measures of performance, such as cost, quality, service, and speed” (as cited in Jacobs & Chase, 2011, p. 461).
o TQM
o Operations consulting process
o Reengineering
o Continuous improvement

• 14. Lean production seeks to achieve high volume production using which of the following?
o Minimize utilization
o Maximize inventory of work-in-process
o Minimize inventory of raw materials
o Maximize capacity

• 15. Which of the following operations consulting tools provide summary performance updates for specific processes and are generally presented in graphical form with color-coding of trend lines and alarms?
o Responsibility charts
o Stakeholder analysis
o Process dashboards
o Decision trees

• 16. Which of the following production process terms best describes the situation when activities in a stage of production must stop because there is no work?
o Buffering
o Blocking
o Starving
o Multiple-stage processing

• 17. Which of the following is a factor that causes a diseconomy of scale?
o Increased utilization
o Increased transportation costs
o Increased product value and prices
o Increased total operating costs

• 18. Which of the following is a situation that likely will yield economies of scale?
o Factory that fully utilizes dedicated resources for information technology, material handling, and administrative support
o Large factory with dedicated capacity that is able to produce twice the number of units as locally demanded
o Company with factories in multiple countries that produces products for local demand
o Factory that produces low volume, customized products

• 19. In setting up a kanban control system, you need to determine the number of kanban card sets needed. If the average number of units demanded is 1,000 per hour, the lead time to replenish the order for this item is 10 hours, the container size is 5 units, and the safety stock is estimated to be 5% of the expected demand, what is the number of kanban card sets needed?
o 1,050
o 210
o 2,100
o 440

• 20. Which of the following terms refers to a special type of flowcharting tool that is valuable for the development of lean processes?
o Kanban production control system
o Kaizen
o Value stream mapping
o JIT production

• 21. The basic notion of economies of scale assumes which of the following?
o Total cost of output drops as volume increases
o Two plants can be operated at the same cost as a single plant
o A piece of equipment with twice the capacity of another piece typically costs twice as much to purchase and to operate
o Average cost per unit of output drops as a plant gets larger and volume increases