Chap 010

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


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


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


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


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


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


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


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


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


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


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


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


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


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


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


75. Explain why lean manufacturing requires a stable demand environment.

10-16


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


3. Lean production requires a "push & pull" system of inventory replenishment. FALSE


10-17


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


10-18


8. A recent report recommended that companies report that their emissions of Green House Gases were generated by their supply chain. 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


10. Group technology cells help to eliminate movement and queue (waiting) time between operations. TRUE


11. Group technology includes the set of psychological tests and training exercises given to group workers to insure a high level of teamwork. FALSE


10-19


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


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


10-20


16. JIT is typically applied to non-repetitive manufacturing. FALSE


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


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


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


22. Value stream mapping is used to visualize product flows through various processing steps. TRUE


23. A Kanban control system uses a signaling device to regulate JIT flows. TRUE


10-22


24. Kanban means "symbol" or "box" in Japanese. 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. FALSE


26. "Kanban Squares" is an educational game played in Kanban training sessions. FALSE


27. Respect for people is a key to the Japanese improvement ideas in manufacturing. TRUE


10-23


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


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


31. Firms in Japan tend to have short-term partnerships with their suppliers and customers. FALSE


10-24


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


34. One of the many JIT techniques that have been successfully applied in service firms is leveling facility load. TRUE


35. One of the many JIT techniques that have been successfully applied in service firms is the eliminating of unnecessary activities. TRUE


10-25


36. One of the few JIT techniques that do not work well in service firms is demand-pull scheduling. FALSE


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


10-26


40. Value stream mapping involves materials, not information. FALSE


41. A kaizen burst is a symbol on a value stream map. TRUE


42. A kaizen burst is an overfilled kanban container. FALSE


10-27


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


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


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


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

AACSB: AnalyticDifficulty: EasyLearning Objective: 4Taxonomy: KnowledgeTopic: Lean Supply chain Design Principles

10-30


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


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


10-32


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

AACSB: AnalyticDifficulty: MediumLearning Objective: 2Taxonomy: UnderstandingTopic: Lean Logic

10-33


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


10-34


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


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


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

10-36


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


10-37


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? ___________________ 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

10-38


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

10-39


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.


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.


10-40


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

10-41

Chap 010

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true false questions

lean production

lean supply chain

goal of jit production

highvolume production

production pull system

supply chain process

production activity