QUESTIONS AND CORRECT ANSWERS (VERIFIED
QUESTIONS AND CORRECT ANSWERS (VE
ANSWERS)|AGRADE ANSWERS)|AGRADE
A new, energy-efficient furnace is being installed in a steel factory. Because A technique used to analyze the flow of materials, ideas, and inform
it understand how processes function. Each activity in the process is def
would have added 10% to the cost of the furnace, management has decided not value added or non-value added - ANSWER- Value stream mapping
to
install the optional safety override for the furnace. This decision is most likely to In a JIT environment, the master schedule usually has a planning hor
lead to which of the following? - ANSWER- An increase in legal costs ANSWER- 2-3 month
Refers to the organizational issue of balancing financial profitability with What production system uses general purpose machinery and is level
environmental responsibility - ANSWER- ANSWER- JIT
sustainability
Operations managers rarely become involved with worker safety or , What indicates the quantities of component parts that will be made ea
environmental because leadtimes are usually short in a JIT environment - ANSWER
pollution complaints because such ethical issues are only handled by an assembly schedule
organizations legal department. True or False - ANSWER- False Which technique should a company adopt to keep a smooth productio
SWOT analysis is used as a tool when a firm crafts a strategy that helps distinguishANSWER- Level schedule
itself among competitors, develops competitive advantages, and avoids barriers
within the business environment. - ANSWER- strategic What helps to reduce set up time in a JIT system? - ANSWER- Placin
tools and equipment in predetermined locations and shortening the do
The difference between the lowest cost producer of a good and the next lowest costequipment
producer of the same good is known as a - ANSWER- Relative advantage Why is the movement of materials simplified in a JIT system? - ANSW
are moved by hand
Characteristics associated with a perpetual inventory system - ANSWER- -when a
company needs to know exact inventory balances at all times What types of waste are related to JIT? - ANSWER- Inventory
-when a company wants accurate financial statements Waiting
Motion and movement
Under what two conditions should I periodic review system be adopted - Transportation
ANSWER- -When a supplier will only deliver at a specific interval Overproduction
-when a company must manually track inventory levels Overprocessing
Defects
SWOT analysis is used tool when used to uncover
as a exploitable A firm that uses JIT would most likely use a group technology produc
opportunities within the competitive landscape. - to ? - ANSWER- A group technology production system may be u
several different, but related, parts. The idea behind GT is that each pa
ANSWER- simple
same essential processing sequence which can reduce set up time.
What best describes a competitive advantage? - ANSWER- A
capability valued by
Employee empowerment - ANSWER- Extending employee responsib
customers that gives a firm in edge over its
authority to the lowest levels of an organization
rivals
Crosby - ANSWER- Quality is Free, Zero Defects, Do it right the firs