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OM5 C17
Test Bank
Chapter 17—Lean Operating Systems
Multiple Choice
1. Principles of lean operating systems include all of the following EXCEPT _____.
a. eliminating waste
b. improving information technology
c. increasing speed and response
d. reducing costs
2. Which of the following is NOT a basic principle of a lean operating system?
a.
Elimination of waste
b.
Batching
c.
Increased speed and response
d.
Improved quality
3. According to the Toyota Motor Company, which of the following is NOT one of the seven
major waste categories?
a.
Overproduction
b.
Transportation
c.
Motion
d.
Single-piece flow
4. According to the seven major categories of waste classified by Toyota Motor Company, long
lead times and higher work-in-process are the results of _____.
a.
overproduction
b.
inventory
c.
waiting time
d.
transportation
5. Toyota classified waste into seven major categories. These categories include all of the
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following EXCEPT _____.
a.
motion
b.
ordering
c.
inventory
d.
waiting time
6. Which one of the following is an example of waste in organizations?
a.
High capacity resource utilization
b.
Retraining and relearning time and expense
c.
Correct factory routing of customer orders and jobs
d.
High data integrity
7. The process of producing large quantities of items as a group before they are transferred to the
next operation is known as _____.
a. batching
b. outsourcing
c. reshoring
d. offshoring
8. A quick setup or changeover of tooling and fixtures is associated with _____.
a.
visual controls
b.
single minute exchange of dies
c.
single-piece flow
d.
six sigma
9. Which of the following Ss in the 5S system ensures that each item in a workplace is in its
proper place or identified as unnecessary and removed?
a. Sort
b. Set in order
c. Shine
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d. Standardize
10. Which of the following is NOT one of the 5Ss?
a.
Set in order
b.
Sort
c.
Standardize
d.
Single-piece flow
11. Which of the following principles is NOT part of the 5Ss?
a.
Synchronize
b.
Set in order
c.
Shine
d.
Sustain
12. _____ is NOT a 5S principle that creates a well-organized work environment.
a.
Stabilize
b.
Standardize
c.
Shine
d.
Sustain
13. In the 5Ss, a clean work area refers to _____.
a.
sort
b.
synchronize
c.
shine
d.
standardize
14. Which of the following statements is TRUE of total productive maintenance (TPM)?
a.
It puts total responsibility on maintenance workers.
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b.
It puts total responsibility on equipment operators.
c.
Planned down time is maximized.
d.
Employees preserve and protect their equipment.
15. Total productive maintenance (TPM) seeks to do all of the following EXCEPT _____.
a.
maximizing equipment effectiveness
b.
creating worker ownership of equipment by involving them in maintenance activities
c.
fostering continuous improvement efforts
d.
enabling multiple products in small batches to be run on the same equipment
16. Quality at the source requires _____.
a.
starting with a plan
b.
having reliable suppliers
c.
doing it right the first time
d.
having a good design
17. Which of the following Ss of the 5Ss means to keep the process going through training,
communication, and organizational structures?
a.
Shine
b.
Sort
c.
Sustain
d.
Standardize
18. Which one of the following statements is TRUE of Lean Six Sigma?
a.
Lean principles focus on advanced statistical methods.
b.
It is difficult to use lean methods in nonmanufacturing environments.
c.
It uses basic root cause, process, and data analysis techniques.
d.
Six Sigma and lean principles are separate bodies of knowledge.
19. Southwest Airlines illustrates the application of lean principles when it _____.
a.
reduces airplane turnaround time at airport gates
b.
assigns airplane seats
c.
serves all passengers in-flight dinners
d.
charges a change of ticket fee for missing a scheduled flight
20. Timken Company illustrates the application of lean principles when it _____.
a.
reduces the total cycle time for new product development
b.
increases safety stock in its inventory system
c.
expands factories and distribution centers
d.
maximizes the number of parts or items in its systems
21. ABC Manufacturing Inc. uses a Kanban system for a component. The daily demand is 800
units. Each container has a combined waiting and processing time of 0.34 days. If the container
size is 50 and efficiency (safety) factor is 9 percent, how many Kanban card sets should be
authorized?
a. 5 sets
b. 6 sets
c. 7 sets
d. 8 sets
22. Webster Manufacturing Inc. is implementing a Just-in-Time (JIT) system and wants to know
how many Kanbans to use for the initial setup of its JIT system. The daily demand is 400 units
and each Kanban (i.e., container) holds 15 units. The combined processing and waiting time per
container is 0.7 days. If the initial alpha value for safety stock is 0.6, how many Kanban
containers should be authorized?
a. More than 10 but less than or equal to 15 Kanbans
b. More than 15 but less than or equal to 20 Kanbans
c. More than 20 but less than or equal to 25 Kanbans
d. More than 25 Kanbans
23. Webster Manufacturing Inc. is implementing a Just-in-Time (JIT) system and wants to know
how many Kanbans to use for the initial setup of its JIT system. The daily demand is 400 units
and each Kanban (i.e., container) holds 15 units. The combined processing and waiting time per
container is 0.7 days. If the initial alpha value for safety stock is 0.6, what is the maximum
authorized inventory?
a. More than 100 but less than or equal to 200 units
b. More than 200 but less than or equal to 300 units
c. More than 300 but less than or equal to 400 units
d. More than 400 units
24. Webster Manufacturing Inc. is implementing a Just-in-Time (JIT) system and wants to know
how many Kanbans to use for the initial setup of its JIT system. The daily demand is 400 units
and each Kanban (i.e., container) holds 15 units. The combined processing and waiting time per
container is 0.7 days. If the initial alpha value for safety stock is 0.6 and the processing and
waiting time is reduced by 30 percent due to job and process improvements, by how many units
is the maximum authorized inventory reduced from the original Webster problem #23 and #24?
a. Less than 100 units
b. More than 100 but less than or equal to 200 units
c. More than 200 but less than or equal to 300 units
d. More than 300 but less than or equal to 400 units
25. Which of the following is NOT a best practice and prerequisite for implementing a just-in-
time system?
a. Maximizing the number of parts or items
b. Good calibration of all gauges and testing equipment
c. Clean and uncluttered workplaces
d. Minimizing setup/changeover time
26. Shine Motor Inc. has decided to switch to a “just-in-time system” of manufacturing and
distribution for its vehicles. Which one of the following is most likely to occur?
a. Inventory levels will increase.
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b. Component parts and subassemblies are now replenished only when needed.
c. Finished goods inventory will decrease, but raw materials and work-in-process inventories
will increase.
d. The workers at any given process will produce units before they are needed.
27. A(n) _____ is a flag or a piece of paper that contains all relevant information for an order
such as part number, description, process area used, time of delivery, quantity available, quantity
delivered, and production quantity.
a. matrix
b. metric
c. gauge
d. Kanban
28. In a Kanban system, in the formula (i.e., K = [d (p + w)(1 + )]/C), the alpha () is
analogous to _____.
a. demand during the lead time
b. a form of safety stock
c. capacity utilization
d. the reorder point
29. Which of the following ideas related to lean operating systems is FALSE?
a.
The ideal order quantity for single piece flow is one.
b.
Accidents are a form of waste in organizations.
c.
A push system makes only what you can sell.
d.
Overproduction is a form of waste in organizations.
30. Which of the following is LEAST related to a push system?
a.
Maximum responsiveness
b.
Predefined schedule
c.
Finished goods inventory
d.
Forecast dependent
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31. A withdraw Kanban authorizes _____.
a.
the production of parts
b.
suppliers to produce
c.
the transfer of an empty container
d.
shipping to customers
32. The number of Kanban cards is dependent on all of the following EXCEPT _____.
a.
average daily demand rate
b.
setup time
c.
waiting time
d.
safety stock
33. A(n) _____ produces finished-goods inventory in advance of customer demand using a
forecast of sales.
a.
single minute exchange of dies (SMED)
b.
push system
c.
Kanban
d.
pull system
34. Which one of the following is a best practice of just-in-time systems?
a.
Use of disposable containers
b.
Increased setup/changeover times to maximize productivity
c.
Minimal distance traveled for materials and parts handling systems
d.
Highly specialized jobs with little or no cross-training
MC Problems #35 & #36
35. A hinge manufacturing company employs a Kanban system for a component part. The daily
demand is 900 hinges. Each container has a wait time of 0.05/day, and a processing time of 0.37
days. The container size is 60 hinges, and the safety factor (α) is 10%. Given this data, the
number of Kanbans necessary for this system is _____.
a. less than 4 Kanbans
b. more than 4 but less than or equal to 8 Kanbans
c. more than 8 but less than or equal to 12 Kanbans
d. more than 12 but less than or equal to 16 Kanbans
36. The maximum authorized inventory for the problem given in #35 is _____.
a. less than or equal to 200 units
b. more than 200 but less than or equal to 300 units
c. more than 300 but less than or equal to 400 units
d. more than 400 units
MC Problems #37 to #40 (Requires algebra skills to solve for any variable in Eq. 17.1.)
37. A manufacturing company is using a two container Kanban system between a downstream
(using) and an upstream (producing) work center. Each container holds 25 parts. The using work
center can handle 100 parts per day. The average elapsed time for the entire cycle is currently 0.4
days. The company is concerned about the efficiency (and safety stock policy) of the operation.
The safety stock factor for the current operation is _____.
a. less than 0.20
b. more than 0.20 but less than or equal to 0.3
c. more than 0.3 but less than or equal to 0.4
d. more than 0.4 but less than or equal to 0.5
38. The maximum authorized inventory for this part is _____.
a. less than 25 parts
b. more than 25 but less than or equal to 50 parts
c. more than 50 but less than or equal to 100 parts
d. more than 100 but less than or equal to 150 parts
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39. If the number of containers is reduced to one, how many parts must it hold?
a. Less than 25 parts
b. More than 25 but less than or equal to 50 parts
c. More than 50 but less than or equal to 100 parts
d. More than 100 but less than or equal to 150 parts
40. If the safety stock factor is changed to 0.1 and the number of parts per container is increased
to 44, how many containers will be needed?
a. 1 container
b. 2 containers
c. 3 containers
d. 4 containers
True/False Questions
1. Lean enterprise refers to approaches that focus primarily on the elimination of waste
throughout the value chain.
2. In lean thinking, waste need not be classified as simply material waste such as scrap and
defective parts.
3. Synchronization of the value chain is a lean approach to increasing speed and response.
4. According to the Toyota Motor Company, waiting time is necessary in production and is not
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classified as waste.
5. Knowledge bottlenecks and equipment breakdowns are a form of waste in organizations.
6. The 5Ss focus on improving waste generated by inefficient transportation.
7. In the context of the 5Ss, standardize means to formalize procedures and practices to create
consistency and ensure that
all steps are performed correctly.
8. A clean and organized work area is an important principle of lean thinking.
9. Single minute exchange of dies (SMED) frees up capacity for other productive uses.
10. Large batches often reduce teardowns and setups and provide economies of scale.
11. To accomplish single piece flow, a manufacturer needs the ability to change between
products quickly and inexpensively.
12. Lean operating systems seek to apply the principles of continuous flow to the production of
discrete parts by reducing batch size, ideally to a size of one.
13. The goal of total productive maintenance (TPM) is to minimize the costs associated with
routine maintenance activities.
14. A goal of total productive maintenance is to have zero accidents in the entire life cycle of an
operating system.
15. Total productive maintenance (TPM) strives to relieve machine operators of routine
maintenance activities so that they can focus entirely on being productive.
16. When producing broad goods or service mix with diverse requirements on common
equipment, the ideal strategy is to
run large batches.
17. Lean Six Sigma is simply the union of lean approaches with quality improvement techniques,
each of which has been used independently in other applications.
18. Six Sigma addresses visible problems in processes; lean production is more concerned with
less visible problems.
19. Lean production is focused on efficiency by reducing waste and improving process flow,
while Six Sigma is focused on effectiveness by reducing errors and defects.
20. Lean principles are always transferrable to front-office services that involve high customer
contact and service encounters.
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21. The Timken Company used a Lean Six Sigma approach that was highly successful.
22. Lean principles are mostly beneficial to manufacturers and provide little value to service
organizations.
23. In a just-in-time (JIT) system, the computer inventory data is the interface and control point
between customers and supply cycles.
24. In a push system, finished-goods inventory is produced in advance of customer demand using
a forecast of sales.
25. Just-in-time (JIT) systems are based on the concept associated with pull systems rather than
push systems.
26. Kanban is the Japanese term for elimination of waste.
27. The number of Kanban cards is directly proportional to the amount of work-in-process
inventory.
28. Production Kanbans trigger the movement of parts.
29. Starbucks successfully implemented lean principles.
30. Nashua Corporation, a service organization, used lean principles and methods to reduce
order-cycle time.
Case Study Questions (To reward students who attend class, listen and learn, and take good
class notes on the case discussion and/or student team presentation.)
1. Which of the following statements is TRUE of the Community Medical Association (CMA)
case study?
a.
The case describes how the 5Ss were used by CMA’s 50 databases.
b.
Total savings was over $40 million from implementing an integrated operating system
with a common data base compared to the previous system.
c.
Doctors’ total changeover and setup (i.e., system relog) time per patient increased after
the new integrated operating system was implemented.
d.
The quality of medical diagnosis and decisions (i.e., clinical quality) improved with the
new system.
Problems for Manual Grading, Take-Home Exams and Partial Credit (Also, review the
OM Instructor’s Manual for end-of-chapter questions/problems)
1. Define lean thinking and the four principles of lean operating systems.
ANS:
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2. Discuss the seven major categories of waste as defined by Toyota Motor Company.
ANS:
3. Explain the purpose of visual controls and give examples.
ANS:
4. Explain the concept of Single Minute Exchange of Dies (SMED).
5. Contrast batching with single-piece flow.
6. Explain the 5Ss.
7. How does total productive maintenance (TPM) affect lean operating systems?
8. Discuss the differences between lean production and Six Sigma.
9. Compare and contrast a push system and a pull system.
10. Define a Kanban. Describe how it helps to execute a pull system.
11. A manufacturer of automobile engines is designing a new Kanban system for engine #321.
The demand for #321 is
75/day, and they are built in groups of 8. The total process and wait time is 3 days. The manager
wants an alpha (α) of 2 or 200 percent. How many Kanbans are required?
12. A company is using Kanban containers. There are two adjacent work centers, a downstream
(using) and an upstream (producing) center. The using work center has a production rate of 200
parts per day and each container holds 20 parts. It takes 0.5 days for a container to make the
entire cycle from the time it leaves the upstream center till it is returned, filled with production,
and leaves again. The manager wants a safety factor (α) of 20 percent. The company is interested
in reducing the number of containers.
a.
What is the number of containers currently in use?
b.
If the number of parts a container holds is increased to 24 parts, how many containers are
needed?
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c.
If the company wants the number of containers (holding 20 parts each) to be 5, what must
the safety factor become?
13. A company is using a Kanban system with 2 containers, each holding 50 parts, between a
downstream (using) and an upstream (producing) work center. The using work center can handle
250 jobs per day. The average elapsed time for the entire cycle is currently 0.25 days. The
company is concerned about the safety factor for the operation and the size of the containers.
a.
What is the efficiency rating of the current operation?
b.
If the company decides to use only one container, how many parts must it hold?
c.
If the safety factor is changed to 0.12 and there are still 2 containers, how many parts
must
each container now hold?
