Management MCQ: Management Chapter 16

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Excess bags of basic commodities such as flour and sugar that are stored in a restaurant's kitchen represent which of the following wastes?

A) overproduction
B) queues
C) transportation
D) inventory
E) defective product

Answer: D

Which of the following is characteristic of lean operations?

A) inventory buffers between each workstation to minimize system downtime
B) easy, mindless jobs
C) specialty workers with no cross-training
D) low space requirements
E) no supplier partnerships

Answer: D

Lean operations are known for their:

A) employee development.
B) supplier education.
C) supplier partnerships.
D) challenging jobs.
E) All of the above are attributes of lean operations.

Answer: E

Which of the following is NOT an attribute of lean operations?

A) eliminating almost all inventory through just-in-time techniques
B) minimizing space requirements by reducing the distance a part travels
C) pushing responsibility to the highest level possible through centralized decision making
D) educating suppliers to accept responsibility for helping meet customer needs
E) building worker flexibility through cross-training and reducing job classifications

Answer: C

Which of the following is not characteristic of a TPS employee?

A) knowledgeable
B) strict job classifications
C) know more about their job than anyone else
D) empowered
E) All of the above characterize a TPS employee.

Answer: B

Which of the following is an illustration of employee empowerment?

A) UPS drivers are trained to perform several motions smoothly and efficiently.
B) Unionization of the work place brings better morale and therefore better quality.
C) "No one knows the job better than those who do it."
D) all of the above
E) none of the above

Answer: C

A manufacturer took the following actions to reduce inventory. Which of these is generally not accepted as a JIT action?

A) It used a pull system to move inventory.
B) It produced in ever smaller lots.
C) It required deliveries directly to the point of use.
D) It picked the supplier that offered the lowest price based on quantity discounts.
E) It worked to reduce the company's in-transit inventory.

Answer: D

Great Lakes Barge and Baggage Company makes, among other things, battery-operated bilge pumps. Which of the following activities is NOT part of JIT? They:

A) communicate their schedules to suppliers.
B) produce in long production runs to reduce the impact of setup costs.
C) use a pull system to move inventory.
D) continuously work on reducing setup time.
E) produce in small lots.

Answer: B

JIT makes quality cheaper because:

A) the cost of low quality can be hidden as inventory cost.
B) JIT adds more buffers to the system.
C) JIT prevents long runs of defects.
D) B and C
E) A, B and C

Answer: C

Which of the following is FALSE regarding the links between JIT and quality?

A) Inventory hides bad quality; JIT immediately exposes it.
B) JIT reduces the number of potential sources of error by shrinking queues and lead times.
C) As quality improves, fewer inventory buffers are needed; in turn, JIT performs better.
D) If consistent quality exists, JIT allows firms to reduce all costs associated with inventory.
E) JIT increases the cost of obtaining good quality.

Answer: E

A grocery store is attempting to implement a kanban system. Which of the following would not be an application of kanbans?

A) An empty doughnut tray signaling the bakery to produce 2 dozen glazed doughnuts.
B) A line of 5 people in the Chinese department signaling the department to heat 5 Crab Rangoon.
C) A red light on top of the cashier's lane signals that the cashier needs additional change replenished.
D) The meat department stocking up on turkeys before Thanksgiving.
E) All of the above are kanban applications.

Answer: D

Lead time for computers is 5 days with daily demand of 25 and safety stock of 5 computers. If management wants to use 10 kanbans how many computers should each one hold?

A) 25
B) 1
C) 5
D) 10
E) 13

Answer: E

Lead time for computers is 7 days with daily demand of 5 computers and a safety stock of 1 day. Each kanban holds 8 computers. What is the correct number of kanbans?

A) 4.5
B) 1
C) 5
D) 7
E) 8

Answer: C

The cook in a fast-food restaurant knows that 2 hamburger patties and an order of fries should be started for each car that is waiting in line. This is best an example of:

A) keiretsu.
B) kanban.
C) push production.
D) kaizen.
E) EOQ.

Answer: B

Lead time for cakes is 2 days with daily demand of 10 cakes and a safety stock of ½ a day. Each container (kanban) holds 1 cake. What is the correct number of kanbans?

A) 4
B) 1
C) 5
D) 10
E) 25

Answer: E

The number of kanbans should be equal to which of the following?

A) one
B) the ratio of (demand during lead time + safety stock) to container size
C) one-half of the EOQ
D) one full day's production divided by the EOQ
E) the ratio of demand during lead time to (container size + safety stock)

Answer: B

Which one of the following scenarios represents the use of a kanban to reduce inventories?

A) A supervisor tells the operators to stay busy and start producing parts for next month.
B) A "supplier" work center signals the downstream workstation that a batch has been completed.
C) A supervisor signals to several work centers that the production rate should be changed.
D) A "customer" work center signals to the "supplier" workstation that more parts are needed.
E) An operator asks the next station's operator to help him fix his machine.

Answer: D

What does the Japanese word "kanban" mean?

A) low inventory
B) employee empowerment
C) card
D) continuous improvement
E) lot size of one

Answer: C

Kanban is associated with all EXCEPT which of the following?

A) small lot sizes
B) signals, such as cards, lights, or flags
C) moving inventory only as needed
D) increased material handling
E) reductions in inventory

Answer: D

Which one of the following statements is TRUE about the kanban system?

A) The quantities in the containers are usually large to reduce setup costs.
B) It is associated with a push system.
C) It is useful to smooth operations when numerous quality problems occur.
D) The supplier workstation signals the customer workstation as soon as a batch is completed.
E) The customer workstation signals to the supplier workstation when production is needed.

Answer: E