OM 300 Test 1 Alabama Exam Updated
Actual Questions and CORRECT Answers
SKU
(Stock Keeping Unit) - CORRECT ANSWER is a distinct type of item for sale, such as
a product or service, and all attributes associated with the item type that distinguish it from
other item types. For a product, these attributes could include, but are not limited to,
manufacturer, description, material, size, color, packaging, and warranty terms. When a
business takes an inventory, it counts the quantity it has of each _________.
WIP
(Work in Progress) - CORRECT ANSWER is inventory that has begun the
manufacturing process and is no longer included in raw materials inventory, but is not yet a
completed product. On a balance sheet, _________ is considered to be an asset because
money has been spent towards a completed product. Because the product has not been
completed, however,_______ is valued lower.
OEM
(Original Equipment Manufacturer) - CORRECT ANSWER is a company that makes a
part or subsystem that is used in another company's end product
GEMBA - CORRECT ANSWER A Japanese term meaning "the actual place" or in
quality management the "manufacturing floor".
GEMBA Management - CORRECT ANSWER The idea is that if a problem occurs, the
engineers must go there to understand the full impact of the problem, gathering data from all
sources. Unlike focus groups and surveys, gemba visits are not scripted or bound by what one
wants to ask.
Andon - CORRECT ANSWER is a manufacturing term referring to a system to notify
management, maintenance, and other workers of a quality or process problem. The
centerpiece is a device incorporating signal lights to indicate which workstation has the
problem. The alert can be activated manually by a worker using a pullcord or button, or may
be activated automatically by the production equipment itself.
, Kaizen - CORRECT ANSWER Chinese and Japanese for "'continuous improvement".
When used in the business sense and applied to the workplace, _______ refers to activities
that continually improve all functions and involve all employees from the CEO to the
assembly line workers. It also applies to processes, such as purchasing and logistics, that
cross organizational boundaries into the supply chain.
Muda - CORRECT ANSWER is a Japanese word meaning "futility; uselessness;
wastefulness". And is a 7 step process to help cut out wastefulness which in turn creates
efficiency
Transportation (Muda) - CORRECT ANSWER Each time a product is moved it stands
the risk of being damaged, lost, delayed, etc. as well as being a cost for no added value.
Transportation does not make any transformation to the product that the consumer is willing
to pay for.
Inventory (Muda) - CORRECT ANSWER be it in the form of raw materials, work-in-
progress (WIP), or finished goods, represents a capital outlay that has not yet produced an
income either by the producer or for the consumer. Any of these three items not being
actively processed to add value is waste
Motion (Muda) - CORRECT ANSWER In contrast to transportation, which refers to
damage to products and transaction costs associated with moving them, motion refers to the
damage that the production process inflicts on the entity that creates the product, either over
time (wear and tear for equipment and repetitive strain injuries for workers) or during discrete
events (accidents that damage equipment and/or injure workers).
Waiting (Muda) - CORRECT ANSWER Whenever goods are not in transport or being
processed, they are waiting. In traditional processes, a large part of an individual product's
life is spent waiting to be worked on.
Over Processing (Muda) - CORRECT ANSWER Whenever goods are not in transport
or being processed, they are waiting. In traditional processes, a large part of an individual
product's life is spent waiting to be worked on.
Actual Questions and CORRECT Answers
SKU
(Stock Keeping Unit) - CORRECT ANSWER is a distinct type of item for sale, such as
a product or service, and all attributes associated with the item type that distinguish it from
other item types. For a product, these attributes could include, but are not limited to,
manufacturer, description, material, size, color, packaging, and warranty terms. When a
business takes an inventory, it counts the quantity it has of each _________.
WIP
(Work in Progress) - CORRECT ANSWER is inventory that has begun the
manufacturing process and is no longer included in raw materials inventory, but is not yet a
completed product. On a balance sheet, _________ is considered to be an asset because
money has been spent towards a completed product. Because the product has not been
completed, however,_______ is valued lower.
OEM
(Original Equipment Manufacturer) - CORRECT ANSWER is a company that makes a
part or subsystem that is used in another company's end product
GEMBA - CORRECT ANSWER A Japanese term meaning "the actual place" or in
quality management the "manufacturing floor".
GEMBA Management - CORRECT ANSWER The idea is that if a problem occurs, the
engineers must go there to understand the full impact of the problem, gathering data from all
sources. Unlike focus groups and surveys, gemba visits are not scripted or bound by what one
wants to ask.
Andon - CORRECT ANSWER is a manufacturing term referring to a system to notify
management, maintenance, and other workers of a quality or process problem. The
centerpiece is a device incorporating signal lights to indicate which workstation has the
problem. The alert can be activated manually by a worker using a pullcord or button, or may
be activated automatically by the production equipment itself.
, Kaizen - CORRECT ANSWER Chinese and Japanese for "'continuous improvement".
When used in the business sense and applied to the workplace, _______ refers to activities
that continually improve all functions and involve all employees from the CEO to the
assembly line workers. It also applies to processes, such as purchasing and logistics, that
cross organizational boundaries into the supply chain.
Muda - CORRECT ANSWER is a Japanese word meaning "futility; uselessness;
wastefulness". And is a 7 step process to help cut out wastefulness which in turn creates
efficiency
Transportation (Muda) - CORRECT ANSWER Each time a product is moved it stands
the risk of being damaged, lost, delayed, etc. as well as being a cost for no added value.
Transportation does not make any transformation to the product that the consumer is willing
to pay for.
Inventory (Muda) - CORRECT ANSWER be it in the form of raw materials, work-in-
progress (WIP), or finished goods, represents a capital outlay that has not yet produced an
income either by the producer or for the consumer. Any of these three items not being
actively processed to add value is waste
Motion (Muda) - CORRECT ANSWER In contrast to transportation, which refers to
damage to products and transaction costs associated with moving them, motion refers to the
damage that the production process inflicts on the entity that creates the product, either over
time (wear and tear for equipment and repetitive strain injuries for workers) or during discrete
events (accidents that damage equipment and/or injure workers).
Waiting (Muda) - CORRECT ANSWER Whenever goods are not in transport or being
processed, they are waiting. In traditional processes, a large part of an individual product's
life is spent waiting to be worked on.
Over Processing (Muda) - CORRECT ANSWER Whenever goods are not in transport
or being processed, they are waiting. In traditional processes, a large part of an individual
product's life is spent waiting to be worked on.
