1. An advantage of a make-to-stock process is which of the following?
It responds directly to customer orders
It allows the firm to avoid inventory costs
Rapid delivery of a standard product
All units of output are unique
2. According to Little’s law, which of the following can be used to estimate inventory?
Set up time times throughput rate
Process time times cycle time
Process velocity times flow time
Throughput rate times flow time
3. Which of the following is a principle of reengineering?
Integrate the outcomes of parallel activities
Organize around the tasks
Treat geographically dispersed resources as though they were centralized
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?
International government regulators
Board of directors
5. In the pull system, which of the following is the partner that begins the process of pulling?
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?
7. To implement a flow process in developing a lean system, a firm might do which of the following?
Eliminate some fixed costs
Build product in anticipation of demand
Reduce setup/changeover time
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?
SPC tools and bottleneck analysis
Decision trees and stakeholder analysis
Plant audits and statistical tools
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?
10. Which of the following are possible examples of cycle times?
Time required to produce a batch of parts
Time it takes for an instructor to grade an exam
Time to set up a new assembly line
Time that a part waits in queue
11. Which of the following is a key metric associated with value stream mapping?
Defects per million operations
12. In contrast to TQM, what approach seeks radical change through innovation?
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).
Operations consulting process
14. Lean production seeks to achieve high volume production using which of the following?
Maximize inventory of work-in-process
Minimize inventory of raw materials
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?
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?
17. Which of the following is a factor that causes a diseconomy of scale?
Increased transportation costs
Increased product value and prices
Increased total operating costs
18. Which of the following is a situation that likely will yield economies of scale?
Factory that fully utilizes dedicated resources for information technology, material handling, and administrative support
Large factory with dedicated capacity that is able to produce twice the number of units as locally demanded
Company with factories in multiple countries that produces products for local demand
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?
20. Which of the following terms refers to a special type of flowcharting tool that is valuable for the development of lean processes?
Kanban production control system
Value stream mapping
21. The basic notion of economies of scale assumes which of the following?
Total cost of output drops as volume increases
Two plants can be operated at the same cost as a single plant
A piece of equipment with twice the capacity of another piece typically costs twice as much to purchase and to operate
Average cost per unit of output drops as a plant gets larger and volume increase