Chapter 15—Integrated Production Processes (IPP) Key
1. Production systems facilitate integration of all aspects of product design, manufacturing, and marketing
processes.
2. Product lifecycle management (PLM) systems are ERP modules or enterprise system add-ons that organize
data by product, including designs, manufacturing specifications, quality, and warranty performance.
3. Cycle time is the time it takes from when authorization is made for goods to be produced to when the goods
are completed.
4. In the pull approach to manufacturing, the sales forecast drives the production plan and goods are produced in
large batches.
5. Theoretically, in the push approach to manufacturing, each job consists of a batch of one unit.
6. With the pull approach to manufacturing, factory machinery is arranged in clusters or cells.
7. Supply chain management software provides available to promise planning and capable to promise planning.
8. A process costing is a costing approach where detailed costs to perform activities throughout the value chain
are computed and can be managed or assigned to cost objects, including products.
9. Cost drivers measure the amount of an activity performed to explain activity costs.
10. Lifecycle costs are the sum of costs to design, produce, market, deliver, and support a product from
conception to ultimate discontinuance.
11. Global competition and the enormous buying power of “mega-retailers”, many companies have been forced
to move operations across their value chains throughout the globe to reduce costs.
12. The computer technology application that automates the product design process, including but not limited to
the functions of geometric modeling, materials stress and strain analysis, drafting, storing product
specifications, and mechanical simulation of a product’s performance, is called CAD/CAE.
13. The inventory production schedule is a statement of specific production goals developed from forecasts of
demand, actual sales orders, or inventory information.
14. Materials requirements planning is a process that uses bills of material, raw material and WIP inventory
status data, open order data, and the master production schedule to calculate a time-phased order requirements
schedule for materials and subassemblies.
15. Continuous inventory management is an inventory management approach where inventory needs and
production capabilities are matched across the entire global enterprise.
16. The capacity requirements planning (CRP) process uses information from the master production schedule
and the time-phased order requirements schedule to develop detailed machine- and labor-use schedules based
on available capacity.
17. Purchase orders convey authority for the manufacture of a specified product or subassembly in specified
quantity and describe the material, labor, and machine requirements for the job.
18. Manufacturing resource planning (MRP) is an integrated decision support system for planning, executing,
and controlling manufacturing operations.
19. JIT is a manufacturing philosophy or business strategy for designing production processes that are more
responsive to precisely timed customer delivery requirements.
20. An assembly line manufacturing system is a highly automated computer integrated manufacturing system
that has its goal of achieving the ability to quickly produce wide varieties of products using the same
equipment.
21. Computer-aided manufacturing (CAM) is the application of computer and communications technology to
improve productivity by linking computer numerical control (CNC) machines, monitoring production, and
providing automatic feedback to control operations.
22. Computer-aided process planning (CAPP) is an automated decision support system that generates
manufacturing operations instructions and routings based on information about machining requirements and
machine capabilities.
23. An automated storage and retrieval system (AS/RS) is a computer-based cart system capable of delivering
parts and tools among multiple work centers.
24. An automated storage and retrieval system (AS/RS) is a computer-controlled machine that stores and
retrieves parts and tools.
25. JIT is often called a kanban process.
26. A bill of material contains the standard material quantities that are required to produce one unit of end
product.
27. The process of exploding the BOM involves extending a BOM to determine the total of each component
required to manufacture a given quantity of an upper-level assembly or subassembly.
28. The process of exploding the BOM results in a master production schedule.
29. The shop floor control process is devoted to monitoring and recording the status of manufacturing orders as
30. A step master shows the necessary steps and the time to complete each operation to produce a product.
31. The material, labor, and machine requirements for each job are reflected in a manufacturing order.
32. Capable to promise planning is the accumulation of the data on current inventories, sales commitments, and
planned production to determine whether the production of finished goods will be sufficient to commit to
additional sales orders.
33. Available to promise planning is the accumulation of data on current inventories, sales commitments,
planned production and excess production capacity or other planned production capacity that could be quickly
converted to production of the desired finished goods necessary to fulfill a sales order request.
34. Variance analysis is the process of comparing actual information about input costs and usage to standards.
35. The final move ticket data marks the end of the conversion process and the movement of goods to the
finished goods warehouse.
36. Which of the following is not one of the key characteristics of companies that are successful at managing
the pressures resulting from global complexity according to the Deloitte Touche report?
A. improved internal business processes in the areas of customers, products, and supply chains
37. Which of the following is not one of the key drivers of complexity in manufacturing operations in the new
millennium according to the Deloitte Touche survey?
38. Designing ground-breaking products and getting them to market quickly is an example of:
39. Which of the following has included management of throughput time and pull manufacturing?
40. Which of the following is impacted by flexible costing systems, activity-based costing, shift in cost structure
from variable to fixed costs, and reduced direct labor cost component in manufacturing?
A. product innovation
41. Which of the following is an ERP add on system that organizes data by product, including designs,
manufacturing specifications, quality and warranty performance?
42. Which of the following involves measuring the time from authorization of goods to be produced to when the
goods are completed?
43. Which of the following involves short production runs, continuous flow of operations, cellular
manufacturing, reduced floor space, and reduced WIP?
A. product lifecycle management
44. Prevailing trends in production systems reflect all of the following except:
A. emphasis on customer satisfaction
45. Which of the following statements is true?
A. Japanese companies have accomplished much in the area of production process innovation, mainly by
switching from pull to push manufacturing.
46. Which of the following statements is false?
A. With the pull approach to manufacturing, factory machinery typically is arranged in factory cells.
47. Pull manufacturing should lead to all of the following except:
48. Trends in cost management/cost accounting include all of the following except:
49. Performing a detailed analysis of cost per unit and cost drivers is an essential prerequisite for using:
50. Activity-based-costing (ABC) systems are generally prevalent in companies seeking to increase ____ and
____.
51. The Level 0 data flow diagram for the integrated production process includes all of the following process
bubbles except:
52. The objectives of computer-aided design (CAD) and computer-aided engineering (CAE) are all of the
following except:
53. Which of the following often includes global inventory management?
54. Which of the following lists the detailed specifications for each raw materials item?
55. Which of the following specifies the operations necessary to complete a subassembly or finished good and
the sequence of operations?
56. Which of the following is a statement of specific production goals developed from forecasts of demand,
actual sales orders, or inventory information?
57. The objectives of just-in-time (JIT) manufacturing usually include all of the following except:
58. The implementation features of just-in-time (JIT) manufacturing typically include all of the following
except:
59. Which of the following components is not part of a flexible manufacturing system (FMS)?
60. Which of the following develops detailed machine- and labor-use schedules that consider available
capacity?
61. What conveys authority for the manufacture of a specified product or subassembly in a specified quantity
and describe the material, labor, and machine requirements for the job?
62. Materials requirements planning (mrp) normally would use all of the following inputs except:
63. This shows when a manufacturing order or purchase order should be released so that the subassemblies and
raw materials will be available when needed.
64. The process of comparing actual information about input costs and usage to standards is:
65. The raw material quantity variance can be determined by:
66. Inventory process controls to protect inventory assets include:
67. Which of the following inventory frauds is not identified by Practice Alert No. 94-2: Auditing
Inventories¾Physical Observations?
A. double-counting inventory
68. The AICPA’s Practice Alert No. 94-2: Auditing Inventories¾Physical Observations describes several
circumstances that constitute inventory fraud. Which of the following is not an example of inventory fraud?
69. Which of the following is not an inventory process control?
70. Sales forecasts drive the production plan and goods are produced in large batches with this type of
manufacturing:
71. Production is initiated as individual sales orders are received with this type of manufacturing:
72. The entire design process is automated through the use of:
73. Which is a listing of all the subassemblies, parts, and raw materials that go into a parent assembly showing
the quantity of each that is required to make an assembly?
74. The total quality control (TCQ) approach places responsibility for quality control in the hands of the:
A. shop floor control process
75. ______________________________ systems facilitate the integration of all aspects of product design,
manufacturing, and marketing.
76. ______________________________ are ERP modules or enterprise systems add-ons that organize data by
product, including designs, manufacturing specifications, quality, and warranty performance.
77. ______________________________ is the time it takes from when authorization is made for goods to be
produced to when the goods are completed.
78. In the ______________________________ approach to manufacturing, the sales forecast drives the
production plan and goods are produced in large batches.
79. Theoretically, in the ______________________________ approach to manufacturing, each job consists of a
batch of one unit.
80. With the pull approach to manufacturing, factory machinery is arranged in
______________________________.
81. Supply chain management software provides ______________________________ to promise planning and
______________________________ to promise planning.