chap 010
TRANSCRIPT
Chapter 10 - Lean and Sustainable Supply Chains
Chapter 10Lean and Sustainable Supply Chains
Learning Objectives for Chapter 10:
1. Describe how Green and Lean can complement each other.2. Explain how a production pull system works.3. Understand Toyota Production System concepts.4. Summarize important attributes of a lean supply chain.5. Analyze a supply chain process using value stream mapping.6. Know the principles of supply chain design.
True / False Questions
1. Lean production is an integrated set of activities designed to achieve high-volume production using minimal inventories of raw materials, work in process, and finished goods. True False
2. Henry Ford used JIT concepts as he streamlined his moving assembly lines to make automobiles in the early 1900's. True False
3. Lean production requires a "push & pull" system of inventory replenishment. True False
10-1
Chapter 10 - Lean and Sustainable Supply Chains
4. Lean production replaced JIT in the 1990s because JIT did not address the problem of reducing waste. True False
5. Lean production is a management philosophy and a pull system throughout the plant. True False
6. Lean production makes implementing green strategies in manufacturing processes more difficult. True False
7. Green strategies that save energy and fight global warming have broad consumer appeal and political support. True False
10-2
Chapter 10 - Lean and Sustainable Supply Chains
8. A recent report recommended that companies report that their emissions of Green House Gases were generated by their supply chain. True False
9. Group technology is a philosophy wherein similar parts are grouped together and the processes required to make the parts are arranged as a work cell. True False
10. Group technology cells help to eliminate movement and queue (waiting) time between operations. True False
11. Group technology includes the set of psychological tests and training exercises given to group workers to insure a high level of teamwork. True False
12. In the textbook the expression "quality at the source" means that we need to purchase the best quality a supplier or vendor can provide. True False
13. "Quality at the source" requires factory workers to become their own inspectors. True False
14. JIT production means that we produce the product before it is required so the customer does not wait for the product. True False
10-3
Chapter 10 - Lean and Sustainable Supply Chains
15. The goal of JIT production is to drive all inventory queues lower. True False
16. JIT is typically applied to non-repetitive manufacturing. True False
17. JIT manufacturing forces a firm to work with a lower water level despite safety hazards. True False
18. A principle of value stream mapping is to concentrate on speeding up value-added operations. True False
19. Value stream mapping is a technique that aims to eliminate waste in a process. True False
20. Uniform plant loading is where you schedule production with different amounts of the same product each day of the week to permit variation to meet changing demand requirements. True False
21. Uniform plant loading is a process of smoothing the production activity flow to dampen the reaction waves that normally occur in response to schedule variations. True False
22. Value stream mapping is used to visualize product flows through various processing steps. True False
10-4
Chapter 10 - Lean and Sustainable Supply Chains
23. A Kanban control system uses a signaling device to regulate JIT flows. True False
24. Kanban means "symbol" or "box" in Japanese. True False
25. Using the formula in the textbook the only parameters we need to determine the number of Kanban card sets is the average number of units demanded over some time period, the container size, and the safety stock. True False
26. "Kanban Squares" is an educational game played in Kanban training sessions. True False
27. Respect for people is a key to the Japanese improvement ideas in manufacturing. True False
28. In Japanese manufacturing automation and robotics are used extensively to perform dull or routine jobs so employees are free to focus on important improvement tasks. True False
29. Subcontractor networks are not very important in Japanese manufacturing. True False
30. Company unions in Japan exist to foster a cooperative relationship with management. True False
10-5
Chapter 10 - Lean and Sustainable Supply Chains
31. Firms in Japan tend to have short-term partnerships with their suppliers and customers. True False
32. One of the many JIT techniques that have been successfully applied in service firms is the upgrading of quality. True False
33. One of the many JIT techniques that have been successfully applied in service firms is the upgrading of housekeeping. True False
34. One of the many JIT techniques that have been successfully applied in service firms is leveling facility load. True False
35. One of the many JIT techniques that have been successfully applied in service firms is the eliminating of unnecessary activities. True False
36. One of the few JIT techniques that do not work well in service firms is demand-pull scheduling. True False
37. The term "freeze window" refers to the practice of building quality into the process and not identifying quality by inspection. True False
10-6
Chapter 10 - Lean and Sustainable Supply Chains
38. Preventive maintenance is emphasized in lean production to ensure that flows are not interrupted by downtime or malfunctioning equipment. True False
39. Value stream mapping is used to identify all of the value-adding as well as non-value-adding processes that materials are subjected to within a plant. True False
40. Value stream mapping involves materials, not information. True False
41. A kaizen burst is a symbol on a value stream map. True False
42. A kaizen burst is an overfilled kanban container. True False
Multiple Choice Questions
43. Which of the following are related to lean production? A. A philosophy of waste eliminationB. Lean consumptionC. Never running out of inventoryD. The Waehi-Subaru methodE. Full use of capacity
10-7
Chapter 10 - Lean and Sustainable Supply Chains
44. In the textbook Toyota's Fujio Cho identified which of the following types of waste to be eliminated? A. Excess qualityB. OverproductionC. UnderproductionD. EnvironmentalE. Over-thinking
45. In the textbook Toyota's Fujio Cho identified which of the following types of waste to be eliminated? A. UnderproductionB. Excess qualityC. Preventive maintenanceD. Product defectsE. Kaizen
46. In the textbook Toyota's Fujio Cho identified which of the following types of waste to be eliminated? A. Excess qualityB. MotionC. Excess capacityD. UnderproductionE. Excess demand
47. Which of the following is a key inventory reduction target under lean production? A. FIFO inventoryB. Hidden inventoryC. Safety stockD. Lost inventoryE. Ladder inventory
10-8
Chapter 10 - Lean and Sustainable Supply Chains
48. Which of the following addresses elimination of waste under lean production? A. Info-matic warehouse networksB. Outsourced housekeepingC. Quality at the sourceD. BackflushE. Bottom-round management
49. Which of the following is an element that addresses elimination of waste under lean production? A. Production ahead of demandB. Group plant loading technologyC. Kanban production control systemD. Minimized run timesE. Full capacity utilization
50. Group technology (GT) is credited with which of the following benefits? A. Reducing waiting time between process operationsB. Improving inventory disciplineC. Reducing required workforce skillsD. Improved labor relationsE. Improved small group functioning
51. Which of the following statements holds true for Kanban production control systems? A. The authority to produce or supply additional parts comes from upstream operationsB. In a paperless control system, containers can be used instead of cardsC. The cards or containers make up the Kanban push systemD. They require substantial quantitative analysis prior to implementationE. They have not been successful outside of Japan and the United States
10-9
Chapter 10 - Lean and Sustainable Supply Chains
52. In setting up a Kanban control system you need to determine the number of Kanban card sets needed. If the expected demand during lead time is 25 per hour, the safety stock is 20% of the demand during lead time, the container size is 5, and the lead time to replenish an order is 5 hours, what is the number of Kanban card sets needed? A. 5B. 20C. 27D. 30E. 34
53. In setting up a Kanban control system you need to determine the number of Kanban card sets needed. If the expected demand during lead time is 50 per hour, the safety stock is 20% of the demand during lead time, the container size is 4. If the lead time to replenish an order is 8 hours, what number of Kanban card sets is needed? A. 60B. 80C. 90D. 120E. 150
54. You have been called in as a consultant to set up a Kanban control system. The first thing to do is to determine the number of Kanban card sets needed. Your research shows that the expected demand during lead time for a particular component is 150 per hour. You estimate the safety stock should be set at 25% of the demand during lead time. The tote trays used as containers can hold 8 units of stock and the lead time it takes to replenish an order is 2 hours. Which of the following is the number of Kanban card sets necessary to support this situation? A. 42B. 47C. 68D. 89E. 94
10-10
Chapter 10 - Lean and Sustainable Supply Chains
55. You have been called in as a consultant to set up a Kanban control system. The first thing you do is to determine the number of Kanban card sets needed. Your research shows that the expected demand during lead time for a particular component is 1,200 per hour. You estimate the safety stock should be set at 5% of the demand during lead time. The tote trays used as containers can hold 2 units of stock and the lead time to replenish an order is 10 hours. Which of the following is the number of Kanban card sets necessary to support this situation? A. 5,000B. 5,500C. 6,300D. 6,500E. 7,000
56. In designing a lean production facility layout a designer should do which of the following? A. Design for work flow balanceB. Locate flexible workstations off lineC. Link operations through a push systemD. Balance capacity using job shop analysisE. Always keep operations on a single floor of the factory
57. When implementing a lean production system a stabilized schedule is achieved using which of the following? A. Level schedulingB. Demand pullC. Freeze windowD. Reduced lot sizesE. Bottom-round management
58. To implement a Kanban pull system a firm would do which of the following? A. Reduce lot sizesB. Force demandC. Hire a consultantD. Bottom-round managementE. Implement group technology
10-11
Chapter 10 - Lean and Sustainable Supply Chains
59. In implementing a lean production system you should work with suppliers to do which of the following? A. Open facilities near your factoryB. Focus workstation capacitiesC. BackflushD. Provide quality at the sourceE. Reduce lead times
60. In implementing a lean production system you should work with suppliers to do which of the following? A. Calculate lead timesB. Quality circlesC. Freeze windowsD. Make frequent deliveriesE. Achieve bottom-round management
61. To implement a flow process in developing a lean system a firm might do which of the following? A. Improve capacity utilizationB. Build product in anticipation of demandC. Reduce setup/changeover timeD. Eliminate some fixed costsE. Implement groupware
62. To implement a flow process in developing a lean system a firm might do which of the following? A. Balance workstation capacitiesB. Standardize product configurationsC. Process design with product designD. Adopt a kaizen philosophyE. Implement top-down management controlsF. Level: Medium
10-12
Chapter 10 - Lean and Sustainable Supply Chains
63. Imagine comparing a manufacturing operation using regular lot-sizing and the same operation with a Kanban/lean production approach. What would be your expectations of the difference between the total cost (i.e., inventory holding costs + setup/ordering costs) of each? A. Inventory holding cost will increase non-linearly with inventoryB. Total costs will be lower for the regular lot-size operationC. Total costs will be lower for the Kanban/lean production operationD. The order quantity will be larger for the Kanban/lean production approachE. As long as the total quantity is the same, total costs will be the same
64. In a lean production system we expect to see which of the following? A. No extra inventoryB. Extra inventory of critical parts held "just-in-case"C. More parts and fewer standardized product configurationsD. Managers being held responsible for quality of the work turned outE. Closer management/labor relationships
65. Which of the following is a lean production technique that is not reported in the textbook to have been successfully applied in service firms? A. Organize problem-solving groupsB. Upgrade housekeepingC. Upgrade qualityD. Freeze windowsE. Eliminate unnecessary activities
66. An activity where the parts that go into each unit of a product are periodically removed from inventory and accounted for based on the number of units produced. is called which of the following? A. Frozen windowB. BackflushC. Level scheduleD. Group TechnologyE. Kanban
10-13
Chapter 10 - Lean and Sustainable Supply Chains
67. Which of the following is a lean production technique that has been successfully applied in service firms? A. Decision treesB. Leveling the facility loadC. Linear programmingD. Fully utilizing capacityE. Backflushing
Fill in the Blank Questions
68. In setting up a kanban control system you need to determine the number of kanban card sets needed. If the expected demand during lead time is 24 per hour, safety stock is 10% of the demand during lead time, the container size is 5. If the lead time to replenish an order is 5 hours, what number of kanban card sets is needed? ___________________ ________________________________________
69. In setting up a kanban control system and you need to determine the number of kanban card sets needed. If the expected demand during lead time is 50 per hour, the safety stock is 20% of the demand during lead time, the container size is 4. If the lead time to replenish an order is 2 hours, what number of kanban card sets is needed? ___________________ ________________________________________
70. Name Fujio Cho's seven prominent types of waste to be eliminated.1) ___________________2) ___________________3) ___________________4) ___________________5) ___________________6) ___________________7) ___________________ ________________________________________
10-14
Chapter 10 - Lean and Sustainable Supply Chains
71. Name seven elements that address elimination of waste. 1) ___________________2) ___________________3) ___________________4) ___________________5) ___________________6) ___________________7) ___________________ ________________________________________
72. Name the four value stream principles. 1) ___________________2) ___________________3) ___________________4) ___________________ ________________________________________
73. What are the four rules of the Toyota Production System? 1) ___________________2) ___________________3) ___________________4) ___________________ ________________________________________
Essay Questions
74. As lean production methods reduce changeover and setup times and thus enable smaller economic lot sizes and less work-in-process inventory, is the importance of quality increased or decreased? Why? Level: Hard
10-15
Chapter 10 - Lean and Sustainable Supply Chains
75. Explain why lean manufacturing requires a stable demand environment.
10-16
Chapter 10 - Lean and Sustainable Supply Chains
Chapter 10 Lean and Sustainable Supply Chains Answer Key
True / False Questions
1. Lean production is an integrated set of activities designed to achieve high-volume production using minimal inventories of raw materials, work in process, and finished goods. TRUE
AACSB: AnalyticDifficulty: EasyLearning Objective: 4Taxonomy: KnowledgeTopic: Lean Supply Chains
2. Henry Ford used JIT concepts as he streamlined his moving assembly lines to make automobiles in the early 1900's. TRUE
AACSB: AnalyticDifficulty: EasyLearning Objective: 4Taxonomy: KnowledgeTopic: Lean Supply Chains
3. Lean production requires a "push & pull" system of inventory replenishment. FALSE
AACSB: AnalyticDifficulty: EasyLearning Objective: 4Taxonomy: KnowledgeTopic: Lean Supply Chains
10-17
Chapter 10 - Lean and Sustainable Supply Chains
4. Lean production replaced JIT in the 1990s because JIT did not address the problem of reducing waste. FALSE
AACSB: AnalyticDifficulty: MediumLearning Objective: 4Taxonomy: KnowledgeTopic: Lean Supply Chains
5. Lean production is a management philosophy and a pull system throughout the plant. TRUE
AACSB: AnalyticDifficulty: MediumLearning Objective: 4Taxonomy: KnowledgeTopic: Lean Supply Chains
6. Lean production makes implementing green strategies in manufacturing processes more difficult. FALSE
AACSB: AnalyticDifficulty: EasyLearning Objective: 1Taxonomy: KnowledgeTopic: Lean Production
7. Green strategies that save energy and fight global warming have broad consumer appeal and political support. TRUE
AACSB: AnalyticDifficulty: EasyLearning Objective: 1Taxonomy: KnowledgeTopic: Lean Production
10-18
Chapter 10 - Lean and Sustainable Supply Chains
8. A recent report recommended that companies report that their emissions of Green House Gases were generated by their supply chain. FALSE
AACSB: AnalyticDifficulty: EasyLearning Objective: 1Taxonomy: KnowledgeTopic: Lean Production
9. Group technology is a philosophy wherein similar parts are grouped together and the processes required to make the parts are arranged as a work cell. TRUE
AACSB: AnalyticDifficulty: EasyLearning Objective: 4Taxonomy: KnowledgeTopic: Lean Supply Chains
10. Group technology cells help to eliminate movement and queue (waiting) time between operations. TRUE
AACSB: AnalyticDifficulty: EasyLearning Objective: 4Taxonomy: KnowledgeTopic: Lean Supply Chains
11. Group technology includes the set of psychological tests and training exercises given to group workers to insure a high level of teamwork. FALSE
AACSB: AnalyticDifficulty: EasyLearning Objective: 4Taxonomy: KnowledgeTopic: Lean Supply Chains
10-19
Chapter 10 - Lean and Sustainable Supply Chains
12. In the textbook the expression "quality at the source" means that we need to purchase the best quality a supplier or vendor can provide. FALSE
AACSB: AnalyticDifficulty: EasyLearning Objective: 2Learning Objective: 4Taxonomy: KnowledgeTopic: Lean Logic, Lean Supply Chains
13. "Quality at the source" requires factory workers to become their own inspectors. TRUE
AACSB: AnalyticDifficulty: EasyLearning Objective: 4Taxonomy: KnowledgeTopic: Lean Supply Chains
14. JIT production means that we produce the product before it is required so the customer does not wait for the product. FALSE
AACSB: AnalyticDifficulty: EasyLearning Objective: 3Learning Objective: 4Taxonomy: KnowledgeTopic: The Toyota Production System, Lean Supply Chains
15. The goal of JIT production is to drive all inventory queues lower. FALSE
AACSB: AnalyticDifficulty: EasyLearning Objective: 3Learning Objective: 4Taxonomy: KnowledgeTopic: The Toyota Production System, Lean Supply Chains
10-20
Chapter 10 - Lean and Sustainable Supply Chains
16. JIT is typically applied to non-repetitive manufacturing. FALSE
AACSB: AnalyticDifficulty: EasyLearning Objective: 3Learning Objective: 4Taxonomy: KnowledgeTopic: The Toyota Production System, Lean Supply Chains
17. JIT manufacturing forces a firm to work with a lower water level despite safety hazards. FALSE
AACSB: AnalyticDifficulty: EasyLearning Objective: 3Taxonomy: KnowledgeTopic: The Toyota Production System
18. A principle of value stream mapping is to concentrate on speeding up value-added operations. FALSE
AACSB: AnalyticDifficulty: MediumLearning Objective: 5Taxonomy: KnowledgeTopic: Value Stream Mapping
19. Value stream mapping is a technique that aims to eliminate waste in a process. TRUE
AACSB: AnalyticDifficulty: EasyLearning Objective: 5Taxonomy: KnowledgeTopic: Value Stream Mapping
10-21
Chapter 10 - Lean and Sustainable Supply Chains
20. Uniform plant loading is where you schedule production with different amounts of the same product each day of the week to permit variation to meet changing demand requirements. FALSE
AACSB: AnalyticDifficulty: EasyLearning Objective: 3Taxonomy: KnowledgeTopic: The Toyota Production System
21. Uniform plant loading is a process of smoothing the production activity flow to dampen the reaction waves that normally occur in response to schedule variations. TRUE
AACSB: AnalyticDifficulty: EasyLearning Objective: 3Taxonomy: KnowledgeTopic: The Toyota Production System
22. Value stream mapping is used to visualize product flows through various processing steps. TRUE
AACSB: AnalyticDifficulty: EasyLearning Objective: 5Taxonomy: KnowledgeTopic: Value Stream Mapping
23. A Kanban control system uses a signaling device to regulate JIT flows. TRUE
AACSB: AnalyticDifficulty: EasyLearning Objective: 3Taxonomy: KnowledgeTopic: The Toyota Production System
10-22
Chapter 10 - Lean and Sustainable Supply Chains
24. Kanban means "symbol" or "box" in Japanese. FALSE
AACSB: AnalyticDifficulty: EasyLearning Objective: 3Taxonomy: KnowledgeTopic: The Toyota Production System
25. Using the formula in the textbook the only parameters we need to determine the number of Kanban card sets is the average number of units demanded over some time period, the container size, and the safety stock. FALSE
AACSB: AnalyticDifficulty: EasyLearning Objective: 3Taxonomy: KnowledgeTopic: The Toyota Production System
26. "Kanban Squares" is an educational game played in Kanban training sessions. FALSE
AACSB: AnalyticDifficulty: EasyLearning Objective: 3Taxonomy: KnowledgeTopic: The Toyota Production System
27. Respect for people is a key to the Japanese improvement ideas in manufacturing. TRUE
AACSB: AnalyticDifficulty: EasyLearning Objective: 3Taxonomy: KnowledgeTopic: The Toyota Production System
10-23
Chapter 10 - Lean and Sustainable Supply Chains
28. In Japanese manufacturing automation and robotics are used extensively to perform dull or routine jobs so employees are free to focus on important improvement tasks. TRUE
AACSB: AnalyticDifficulty: EasyLearning Objective: 3Taxonomy: KnowledgeTopic: The Toyota Production System
29. Subcontractor networks are not very important in Japanese manufacturing. FALSE
AACSB: AnalyticDifficulty: MediumLearning Objective: 3Learning Objective: 4Taxonomy: KnowledgeTopic: The Toyota Production System, Lean Supply Chains
30. Company unions in Japan exist to foster a cooperative relationship with management. TRUE
AACSB: AnalyticDifficulty: EasyLearning Objective: 3Taxonomy: KnowledgeTopic: The Toyota Production System
31. Firms in Japan tend to have short-term partnerships with their suppliers and customers. FALSE
AACSB: AnalyticDifficulty: EasyLearning Objective: 3Learning Objective: 4Taxonomy: KnowledgeTopic: The Toyota Production System, Lean Supply Chains
10-24
Chapter 10 - Lean and Sustainable Supply Chains
32. One of the many JIT techniques that have been successfully applied in service firms is the upgrading of quality. TRUE
AACSB: AnalyticDifficulty: EasyLearning Objective: 4Learning Objective: 6Taxonomy: KnowledgeTopic: Lean Supply Chains, Lean Supply Chain Design Principles
33. One of the many JIT techniques that have been successfully applied in service firms is the upgrading of housekeeping. TRUE
AACSB: AnalyticDifficulty: EasyLearning Objective: 4Learning Objective: 6Taxonomy: KnowledgeTopic: Lean Supply Chains, Lean Supply Chain Design Principles
34. One of the many JIT techniques that have been successfully applied in service firms is leveling facility load. TRUE
AACSB: AnalyticDifficulty: EasyLearning Objective: 4Learning Objective: 6Taxonomy: KnowledgeTopic: Lean Supply Chains, Lean Supply Chain Design Principles
35. One of the many JIT techniques that have been successfully applied in service firms is the eliminating of unnecessary activities. TRUE
AACSB: AnalyticDifficulty: EasyLearning Objective: 4Learning Objective: 6Taxonomy: KnowledgeTopic: Lean Supply Chains, Lean Supply Chain Design Principles
10-25
Chapter 10 - Lean and Sustainable Supply Chains
36. One of the few JIT techniques that do not work well in service firms is demand-pull scheduling. FALSE
AACSB: AnalyticDifficulty: EasyLearning Objective: 4Learning Objective: 6Taxonomy: KnowledgeTopic: Lean Supply Chains, Lean Supply Chain Design Principles
37. The term "freeze window" refers to the practice of building quality into the process and not identifying quality by inspection. FALSE
AACSB: AnalyticDifficulty: EasyLearning Objective: 4Learning Objective: 5Taxonomy: KnowledgeTopic: Lean Supply Chains, Value Stream Mapping
38. Preventive maintenance is emphasized in lean production to ensure that flows are not interrupted by downtime or malfunctioning equipment. TRUE
AACSB: AnalyticDifficulty: EasyLearning Objective: 2Learning Objective: 3Learning Objective: 4Taxonomy: KnowledgeTopic: Lean Logic, The Toyota Production System, Lean Supply Chains
39. Value stream mapping is used to identify all of the value-adding as well as non-value-adding processes that materials are subjected to within a plant. TRUE
AACSB: AnalyticDifficulty: EasyLearning Objective: 5Taxonomy: KnowledgeTopic: Value Stream Mapping
10-26
Chapter 10 - Lean and Sustainable Supply Chains
40. Value stream mapping involves materials, not information. FALSE
AACSB: AnalyticDifficulty: EasyLearning Objective: 5Taxonomy: KnowledgeTopic: Value Stream Mapping
41. A kaizen burst is a symbol on a value stream map. TRUE
AACSB: AnalyticDifficulty: EasyLearning Objective: 5Taxonomy: KnowledgeTopic: Value Stream Mapping
42. A kaizen burst is an overfilled kanban container. FALSE
AACSB: AnalyticDifficulty: EasyLearning Objective: 5Taxonomy: KnowledgeTopic: Value Stream Mapping
10-27
Chapter 10 - Lean and Sustainable Supply Chains
Multiple Choice Questions
43. Which of the following are related to lean production? A. A philosophy of waste eliminationB. Lean consumptionC. Never running out of inventoryD. The Waehi-Subaru methodE. Full use of capacity
AACSB: AnalyticDifficulty: EasyLearning Objective: 4Taxonomy: KnowledgeTopic: Lean Supply Chains
44. In the textbook Toyota's Fujio Cho identified which of the following types of waste to be eliminated? A. Excess qualityB. OverproductionC. UnderproductionD. EnvironmentalE. Over-thinking
AACSB: AnalyticDifficulty: MediumLearning Objective: 2Learning Objective: 4Taxonomy: UnderstandingTopic: Lean Logic, Lean Supply Chains
10-28
Chapter 10 - Lean and Sustainable Supply Chains
45. In the textbook Toyota's Fujio Cho identified which of the following types of waste to be eliminated? A. UnderproductionB. Excess qualityC. Preventive maintenanceD. Product defectsE. Kaizen
AACSB: AnalyticDifficulty: MediumLearning Objective: 2Learning Objective: 4Taxonomy: UnderstandingTopic: Lean Logic, Lean Supply Chains
46. In the textbook Toyota's Fujio Cho identified which of the following types of waste to be eliminated? A. Excess qualityB. MotionC. Excess capacityD. UnderproductionE. Excess demand
AACSB: AnalyticDifficulty: MediumLearning Objective: 3Taxonomy: KnowledgeTopic: The Toyota Production System
47. Which of the following is a key inventory reduction target under lean production? A. FIFO inventoryB. Hidden inventoryC. Safety stockD. Lost inventoryE. Ladder inventory
AACSB: AnalyticDifficulty: EasyLearning Objective: 4Taxonomy: UnderstandingTopic: Lean Supply Chains
10-29
Chapter 10 - Lean and Sustainable Supply Chains
48. Which of the following addresses elimination of waste under lean production? A. Info-matic warehouse networksB. Outsourced housekeepingC. Quality at the sourceD. BackflushE. Bottom-round management
AACSB: AnalyticDifficulty: EasyLearning Objective: 4Taxonomy: KnowledgeTopic: Lean Supply Chains
49. Which of the following is an element that addresses elimination of waste under lean production? A. Production ahead of demandB. Group plant loading technologyC. Kanban production control systemD. Minimized run timesE. Full capacity utilization
AACSB: AnalyticDifficulty: EasyLearning Objective: 4Taxonomy: KnowledgeTopic: Lean Supply Chains
50. Group technology (GT) is credited with which of the following benefits? A. Reducing waiting time between process operationsB. Improving inventory disciplineC. Reducing required workforce skillsD. Improved labor relationsE. Improved small group functioning
AACSB: AnalyticDifficulty: EasyLearning Objective: 4Taxonomy: KnowledgeTopic: Lean Supply chain Design Principles
10-30
Chapter 10 - Lean and Sustainable Supply Chains
51. Which of the following statements holds true for Kanban production control systems? A. The authority to produce or supply additional parts comes from upstream operationsB. In a paperless control system, containers can be used instead of cardsC. The cards or containers make up the Kanban push systemD. They require substantial quantitative analysis prior to implementationE. They have not been successful outside of Japan and the United States
AACSB: AnalyticDifficulty: EasyLearning Objective: 2Taxonomy: UnderstandingTopic: Lean Logic
52. In setting up a Kanban control system you need to determine the number of Kanban card sets needed. If the expected demand during lead time is 25 per hour, the safety stock is 20% of the demand during lead time, the container size is 5, and the lead time to replenish an order is 5 hours, what is the number of Kanban card sets needed? A. 5B. 20C. 27D. 30E. 34
AACSB: AnalyticDifficulty: MediumLearning Objective: 2Taxonomy: AnalysisTopic: Lean Logic
10-31
Chapter 10 - Lean and Sustainable Supply Chains
53. In setting up a Kanban control system you need to determine the number of Kanban card sets needed. If the expected demand during lead time is 50 per hour, the safety stock is 20% of the demand during lead time, the container size is 4. If the lead time to replenish an order is 8 hours, what number of Kanban card sets is needed? A. 60B. 80C. 90D. 120E. 150
AACSB: AnalyticDifficulty: MediumLearning Objective: 2Taxonomy: AnalysisTopic: Lean Logic
54. You have been called in as a consultant to set up a Kanban control system. The first thing to do is to determine the number of Kanban card sets needed. Your research shows that the expected demand during lead time for a particular component is 150 per hour. You estimate the safety stock should be set at 25% of the demand during lead time. The tote trays used as containers can hold 8 units of stock and the lead time it takes to replenish an order is 2 hours. Which of the following is the number of Kanban card sets necessary to support this situation? A. 42B. 47C. 68D. 89E. 94
AACSB: AnalyticDifficulty: MediumLearning Objective: 2Taxonomy: AnalysisTopic: Lean Logic
10-32
Chapter 10 - Lean and Sustainable Supply Chains
55. You have been called in as a consultant to set up a Kanban control system. The first thing you do is to determine the number of Kanban card sets needed. Your research shows that the expected demand during lead time for a particular component is 1,200 per hour. You estimate the safety stock should be set at 5% of the demand during lead time. The tote trays used as containers can hold 2 units of stock and the lead time to replenish an order is 10 hours. Which of the following is the number of Kanban card sets necessary to support this situation? A. 5,000B. 5,500C. 6,300D. 6,500E. 7,000
AACSB: AnalyticDifficulty: MediumLearning Objective: 2Taxonomy: AnalysisTopic: Lean Logic
56. In designing a lean production facility layout a designer should do which of the following? A. Design for work flow balanceB. Locate flexible workstations off lineC. Link operations through a push systemD. Balance capacity using job shop analysisE. Always keep operations on a single floor of the factory
AACSB: AnalyticDifficulty: MediumLearning Objective: 2Taxonomy: UnderstandingTopic: Lean Logic
10-33
Chapter 10 - Lean and Sustainable Supply Chains
57. When implementing a lean production system a stabilized schedule is achieved using which of the following? A. Level schedulingB. Demand pullC. Freeze windowD. Reduced lot sizesE. Bottom-round management
AACSB: AnalyticDifficulty: MediumLearning Objective: 2Learning Objective: 3Taxonomy: KnowledgeTopic: Lean Logic, The Toyota Production System
58. To implement a Kanban pull system a firm would do which of the following? A. Reduce lot sizesB. Force demandC. Hire a consultantD. Bottom-round managementE. Implement group technology
AACSB: AnalyticDifficulty: MediumLearning Objective: 2Taxonomy: UnderstandingTopic: Lean Logic
10-34
Chapter 10 - Lean and Sustainable Supply Chains
59. In implementing a lean production system you should work with suppliers to do which of the following? A. Open facilities near your factoryB. Focus workstation capacitiesC. BackflushD. Provide quality at the sourceE. Reduce lead times
AACSB: AnalyticDifficulty: MediumLearning Objective: 2Taxonomy: KnowledgeTopic: Lean Logic
60. In implementing a lean production system you should work with suppliers to do which of the following? A. Calculate lead timesB. Quality circlesC. Freeze windowsD. Make frequent deliveriesE. Achieve bottom-round management
AACSB: AnalyticDifficulty: MediumLearning Objective: 2Taxonomy: UnderstandingTopic: Lean Logic
61. To implement a flow process in developing a lean system a firm might do which of the following? A. Improve capacity utilizationB. Build product in anticipation of demandC. Reduce setup/changeover timeD. Eliminate some fixed costsE. Implement groupware
AACSB: AnalyticDifficulty: MediumLearning Objective: 4Taxonomy: UnderstandingTopic: Lean Supply Chains
10-35
Chapter 10 - Lean and Sustainable Supply Chains
62. To implement a flow process in developing a lean system a firm might do which of the following? A. Balance workstation capacitiesB. Standardize product configurationsC. Process design with product designD. Adopt a kaizen philosophyE. Implement top-down management controlsF. Level: Medium
AACSB: AnalyticDifficulty: EasyLearning Objective: 5Taxonomy: KnowledgeTopic: Value Stream
63. Imagine comparing a manufacturing operation using regular lot-sizing and the same operation with a Kanban/lean production approach. What would be your expectations of the difference between the total cost (i.e., inventory holding costs + setup/ordering costs) of each? A. Inventory holding cost will increase non-linearly with inventoryB. Total costs will be lower for the regular lot-size operationC. Total costs will be lower for the Kanban/lean production operationD. The order quantity will be larger for the Kanban/lean production approachE. As long as the total quantity is the same, total costs will be the same
AACSB: AnalyticDifficulty: EasyLearning Objective: 2Taxonomy: KnowledgeTopic: Lean Logic
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Chapter 10 - Lean and Sustainable Supply Chains
64. In a lean production system we expect to see which of the following? A. No extra inventoryB. Extra inventory of critical parts held "just-in-case"C. More parts and fewer standardized product configurationsD. Managers being held responsible for quality of the work turned outE. Closer management/labor relationships
AACSB: AnalyticDifficulty: EasyLearning Objective: 2Taxonomy: UnderstandingTopic: Lean Logic
65. Which of the following is a lean production technique that is not reported in the textbook to have been successfully applied in service firms? A. Organize problem-solving groupsB. Upgrade housekeepingC. Upgrade qualityD. Freeze windowsE. Eliminate unnecessary activities
AACSB: AnalyticDifficulty: EasyLearning Objective: 2Taxonomy: UnderstandingTopic: Lean Logic
66. An activity where the parts that go into each unit of a product are periodically removed from inventory and accounted for based on the number of units produced. is called which of the following? A. Frozen windowB. BackflushC. Level scheduleD. Group TechnologyE. Kanban
AACSB: AnalyticDifficulty: EasyLearning Objective: 2Taxonomy: KnowledgeTopic: Lean Logic
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Chapter 10 - Lean and Sustainable Supply Chains
67. Which of the following is a lean production technique that has been successfully applied in service firms? A. Decision treesB. Leveling the facility loadC. Linear programmingD. Fully utilizing capacityE. Backflushing
AACSB: AnalyticDifficulty: EasyLearning Objective: 2Taxonomy: KnowledgeTopic: Lean Logic
Fill in the Blank Questions
68. In setting up a kanban control system you need to determine the number of kanban card sets needed. If the expected demand during lead time is 24 per hour, safety stock is 10% of the demand during lead time, the container size is 5. If the lead time to replenish an order is 5 hours, what number of kanban card sets is needed? ___________________ 27 (26.4)
AACSB: AnalyticDifficulty: MediumLearning Objective: 3Taxonomy: AnalysisTopic: The Toyota Production System
69. In setting up a kanban control system and you need to determine the number of kanban card sets needed. If the expected demand during lead time is 50 per hour, the safety stock is 20% of the demand during lead time, the container size is 4. If the lead time to replenish an order is 2 hours, what number of kanban card sets is needed? ___________________ 30
AACSB: AnalyticDifficulty: MediumLearning Objective: 3Taxonomy: AnalysisTopic: The Toyota Production System
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Chapter 10 - Lean and Sustainable Supply Chains
70. Name Fujio Cho's seven prominent types of waste to be eliminated.1) ___________________2) ___________________3) ___________________4) ___________________5) ___________________6) ___________________7) ___________________ (1.) Waste from overproduction; (2.) Waste of waiting time; (3.) Transportation waste; (4.) Inventory waste; (5.) Processing waste; (6.) Waste of motion; (7.) Waste from product defects.
AACSB: AnalyticDifficulty: HardLearning Objective: 3Taxonomy: KnowledgeTopic: The Toyota Production System
71. Name seven elements that address elimination of waste. 1) ___________________2) ___________________3) ___________________4) ___________________5) ___________________6) ___________________7) ___________________ (1.) Focused factory networks; (2.) Group technology; (3.) Quality at the source; (4.) JIT Production; (5.) Uniform plant loading; (6.) Kanban production control system; (7.) Minimized set-up times.
AACSB: AnalyticDifficulty: HardLearning Objective: 2Learning Objective: 3Taxonomy: KnowledgeTopic: Lean Logic, The Toyota Production System
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Chapter 10 - Lean and Sustainable Supply Chains
72. Name the four value stream principles. 1) ___________________2) ___________________3) ___________________4) ___________________ (1.) Keep the value stream moving at maximum velocity; (2.) Eliminate waste that stops, slows down or diverts the value stream; (3.) Concentrate on removing waste rather than speeding up value-added operations; (4.) Look for waste in the factory, office, physical, technical and procedural operations.
AACSB: AnalyticDifficulty: HardLearning Objective: 5Taxonomy: KnowledgeTopic: The Toyota Production System
73. What are the four rules of the Toyota Production System? 1) ___________________2) ___________________3) ___________________4) ___________________ (1.) All work shall be highly specified as to content, sequence, timing and outcome; (2.) Every customer-supplier connection must be direct and there must be an unambiguous yes-or-no way to send requests and receive responses; (3.) The pathway for every product and service must be simple and direct; (4.) Any improvement must be made in accordance with the scientific method under the guidance of a teacher at the lowest possible level of the organization.
AACSB: AnalyticDifficulty: HardLearning Objective: 3Taxonomy: KnowledgeTopic: The Toyota Production System
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Chapter 10 - Lean and Sustainable Supply Chains
Essay Questions
74. As lean production methods reduce changeover and setup times and thus enable smaller economic lot sizes and less work-in-process inventory, is the importance of quality increased or decreased? Why? Level: Hard
Increased. The reason for this is simply that as lean production takes hold, there is a lower margin for error. A defective component can totally shut down a production line where, with plenty of inventory, the defect can be discarded with minimal affect on other processes. An incorrect answer can be logically construed. An answer of "decreased" can be defended by the notion that with very brief set-up times it doesn't take too long to set up to replace the defective component. However brief that time is, however, it is time that several other processes are being starved for components.
AACSB: AnalyticDifficulty: HardLearning Objective: 2Taxonomy: SynthesisTopic: Lean Logic
75. Explain why lean manufacturing requires a stable demand environment.
The text refers to "uniform plant loading" on page 284. Changes in demand result in a "ripple effect" that is echoes throughout the manufacturing system. This is similar to the "bullwhip effect" discussed in Chapter 8, "Global Sourcing And Procurement." To avoid this, adjustments to the schedule are made very gradually.
AACSB: AnalyticDifficulty: MediumLearning Objective: 4Taxonomy: SynthesisTopic: Lean Supply Chains
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