Deck 12: Purchasing and Supply Chain Analysis: Tools and Techniques

Question 1

Many organizations are attempting to develop new products concurrently rather than sequentially, which not only saves time and money but also allows agreement on major issues early in the process.

Answer 1

True

Question 2

If learning occurs at a supplier during the performance of a purchase contract, and the buyer does not take that into account, then the supplier will not reap the financial benefits that result from learning.

Answer 2

False

Question 3

Most processes do not cross functional boundaries.

Answer 3

False

Question 4

In a CPM or PERT project, a network is a graphical representation that shows how each individual activity relates in time and sequence to all other activities.

Question 5

Offering a supplier a longer-term contract with guaranteed volumes encourages investment in equipment that results in lower production costs.

Question 6

Activities without any slack in a PERT network are by definition on the critical path.

Question 7

Because so few processes move across functional boundaries, it is illogical to have those groups connected with the process involved with mapping and improving the process.

Question 8

Activities on the critical path in a PERT network will have the most slack.

Question 9

In collaborative relationships, buyers and suppliers can work together to mutually share the benefits of learning curves and productivity improvements.

Question 10

Value analysis traditionally applies to tangible products, and there are many reasons why companies cannot VA techniques to services.

Question 11

Projects have certain characteristics that make them unique compared with other forms of work.

Question 12

All processes or items can benefit from, or exhibit improvement from, learning.

Question 13

The longest (in time) path of continuous activities through a PERT network is the critical path.

Question 14

Because a project usually has a defined scope with agreed-upon tasks, responsibilities, and deliverables, it is often more difficult to measure project success compared with other types of work.

Question 15

The work force factor of the learning curve includes the ability of the worker on the job to learn and improve through repetitive effort and increased efficiency, but not the effort by management to pursue productivity gains.

Question 16

Each activity in PERT has three time estimates: (1) most likely, (2) pessimistic, and (3) optimistic.

Question 17

The primary advantage of a Gantt chart is that for larger projects, it can be easy to use and keep up to date.

Question 18

When a process crosses functional boundaries, there is a risk that no one actually owns or takes responsibility for the entire process.

Question 19

When using quantity discount analysis, the key calculation is the incremental cost of each additional unit at different quantity levels.

Question 20

By identifying unnecessary steps and resources, value stream mapping streamlines processes for greater efficiency.

Question 21

The planning phase of a project is particularly critical because there is a strong correlation between effective planning and successful project outcomes.

Question 22

All of the following are points that should be considered before initiating a project except _____.

A)make sure the objectives and outcomes are championed by senior executive management
B)measure subjectively
C)place the program under the leadership of people with skill, credentials, and credibility
D)establish an effective governance process with a cross-functional team
E)break down the project into phased deliverables

Question 23

Non-value-adding actions and resources are those actions in a process that must be done to make the product but create no value for the customer.

Question 24

According to Ohno and Toyota, _____ is a category of waste that retains unnecessary inventory between process steps.

A)excess inventory
B)overproduction
C)over-processing
D)waiting time
E)None of these answers.

Question 25

In a PERT network, which of the following is not one of the times shown on the chart?

A)Early start.
B)Late start.
C)On time start.
D)Early finish.
E)Late finish.

Question 26

When referring to learning improvement, the _____ represents a reduction in the cumulative average number of labor hours as production doubles from a previous level.

A)critical path
B)slack path
C)expected activity time
D)learning rate
E)early finish

Question 27

_____ is a process of visually presenting the flow of materials and information to identify wasted time and actions in a manufacturing or service process.

A)Make-buy analysis
B)QDA
C)Value stream mapping
D)TCO
E)None of these answers.

Question 28

_____ actions and resources are everything done in the process, which contribute no value to the customer, but which they are forced to pay for when they buy the product or service.

A)Value-adding
B)Excess inventory
C)Necessary non-value-adding
D)Waiting time
E)Non-value-adding

Question 29

Historically, the term _____ applies to the reduced direct-labor requirement per unit of output because of the effects of learning, while the term _____ refers to the longer-term factors of production that systematically reduce production costs.

A)learning curve….experience curve
B)learning curve….infinity curve
C)experience curve….Boeing curve
D)experience curve….learning curve
E)None of these answers.

Question 30

In a PERT network, a/an _____ is the earliest point in time an activity can begin.

A)late start
B)on time start
C)early finish
D)early start
E)late finish

Question 31

In value stream mapping, the flow diagram that depicts process improvements to optimize the value and minimize the non-value-added streams is called a/an _____.

A)current state map
B)future/ideal state map
C)variation map
D)anticipated state map
E)None of these answers.

Question 32

The primary objective of value analysis is to increase the value of an item or service at the lowest cost without sacrificing quality.

Question 33

Organizations should not use process mapping to redesign or reengineer processes.

Question 34

[A] _____ establishes the rate of improvement because of learning as producers realize direct-labor cost improvements as production volumes increase.

A)leverage
B)learning curve
C)knowledge curve
D)product life cycle
E)short-term contract

Question 35

Which of the following is not one of the critical steps to process mapping?

A)Search for better ways and methods to perform the tasks comprising a process.
B)Replace sequential activities with concurrent activities whenever possible.
C)Identify those activities that contribute to waste or add minimal value to the process and target those for elimination.
D)Identify the time associated with each part of a process and identify how much of that time is waste.
E)Utilize all sequential activities whenever possible as concurrent activities are wasteful.

Question 36

The _____ (in time) through a PERT network is the _____.

A)longest path….critical path
B)shortest path….critical path
C)longest path….slack
D)shortest path….slack
E)None of these answers.

Question 37

Which of the following is not a question that value analysis teams should ask to determine if opportunities exist for item, product, or service improvement?​

A)Are there additional uses for this product?
B)Can we use a different color of paint?
C)Is there a better production method to produce the item or product?
D)If we are making an item now, can we buy it for less (or vice versa)?
E)Are packaging cost reductions possible?

Question 38

_____ actions and resources are those actions in a process that must be done to make the product but create no value for the customer.

A)Non-value-adding
B)Necessary non-value-adding
C)Value-adding
D)Inventory surplus
E)None of these answers.

Question 39

According to Ohno and Toyota, _____ is a category of waste that occurs when employees are standing about and inventory is at a standstill.

A)waiting time
B)defect
C)overproduction
D)unnecessary movement
E)over-processing

Question 40

In a PERT network, a/an _____ is the latest point in time an activity can begin without delaying the entire project.

A)late start
B)late finish
C)early start
D)early finish
E)on time finish

Question 41

According to Ohno and Toyota, _____ is a category of waste that moves material unnecessarily or long distances.

A)unnecessary movement
B)over-processing
C)defect
D)unnecessary transport
E)overproduction

Question 42

According to Ohno and Toyota, _____ is a category of waste that uses more steps to produce a product than necessary.

A)excess inventory
B)defect
C)unnecessary movement
D)unnecessary transport
E)over-processing

Question 43

_____ is a technique used to examine the incremental changes in cost between quantities within a supplier's price quotation.

A)TCO
B)Price analysis
C)Market-share pricing
D)Competition pricing
E)Quantity discount analysis

Question 44

Users apply _____ to projects where there is a single known time (known as a deterministic time) for each activity with no variance, while _____ applies to projects where time estimates are variable or uncertain.

A)Make-buy analysis….CPM
B)PERT….CPM
C)Post-completion analysis….PERT
D)CPM…PERT
E)PERT….TCO

Question 45

According to Ohno and Toyota, _____ is a category of waste that makes incorrect product.

A)overproduction
B)waiting time
C)defect
D)unnecessary movement
E)over-processing

Question 46

_____ is a tool that reduces processes to their component parts or activities and helps identify and then eliminate non-value-added activities (waste) or delays within a process.

A)Process mapping
B)TCO
C)PERT/CPM
D)QDA
E)Productivity analysis

Question 47

Which of the following is not one of the network rules for PERT/CPM?

A)Networks can start and finish at multiple events.
B)Identify each unique activity within a project by a capital letter that corresponds only to that activity.
C)Branch direction indicates the general progression in time from left to right.
D)When a number of activities end at one event, no activity starting at that event may begin before all activities ending at that event are complete.
E)Two or more activities cannot share graphically the same beginning and ending events.

Question 48

According to Ohno and Toyota, _____ is a category of waste that produces items for which there are no orders.

A)excess inventory
B)overproduction
C)unnecessary movement
D)waiting time
E)defect

Question 49

In a PERT network, a/an _____ is the latest time an activity can finish without delaying the entire project.

A)late start
B)late finish
C)on time finish
D)early start
E)late start

Question 50

A/An _____ consists of activities or steps that can be performed at the same time during the main flow of work.

A)intermittent process
B)continuous process
C)standardized process
D)concurrent process
E)None of these answers.

Question 51

According to Ohno and Toyota, _____ is a category of waste that includes any wasted motion by man or machine.

A)overproduction
B)unnecessary transport
C)unnecessary movement
D)defect
E)None of these answers.

Question 52

_____ techniques are primarily applied to existing products and services, while _____ is the application of value principles during product or service design.

A)Value analysis….total cost of ownership
B)Value engineering….price analysis
C)Value analysis….value engineering
D)Price analysis….cost analysis
E)Value engineering….value analysis

Question 53

A _____ is one in which the set of steps or activities that make up the activity occur one after the other.

A)continuous process
B)sequential process
C)concurrent process
D)standardized process
E)None of these answers.

Question 54

Which of the following is not one of the six phases of a project?​

A)Precompletion.
B)Project definition.
C)Preliminary studies.
D)Performance.
E)Post-completion.

Question 55

All of the following are characteristics of the post-completion phase of a project except _____.

A)confirm that the final project meets the expectations of management or customers
B)reassign project personnel to other positions or other projects
C)restore any used equipment and facilities to their original status
D)conduct a post-implementation meeting to discuss the strengths and weaknesses of the project
E)identify broad budget, personnel, and resource requirements for future projects

Question 56

A _____ visually displays the tasks and times associated with a project and consists of a horizontal bar chart with activities listed vertically and times or dates displayed horizontally.

A)PERT tool
B)Gantt chart
C)CPM tool
D)TCO chart
E)networking tool

Question 57

In a PERT network, the difference between the _____ and the _____ is slack.

A)early start….late finish
B)late start….early finish
C)early start….early finish
D)late start….early start
E)None of these answers.

Question 58

_____ actions and resources are those that create value for the customer.

A)Extras
B)Non-value-adding
C)Necessary non-value-adding
D)Value-adding
E)None of these answers.

Question 59

In a PERT network, the difference between the _____ and the _____ is slack.

A)late finish….early finish
B)late start….late finish
C)early finish….late start
D)early start….early finish
E)None of these answers.

Question 60

A/An _____ is a series of tasks that requires the completion of specific objectives within a certain time frame; has defined start and stop dates; consumes resources, particularly time, personnel, and budget; and operates with limited resources.

A)process
B)work order
C)purchase order
D)project
E)team charter

Question 61

In a PERT network, a/an _____ is the earliest time a project can finish given the expected activity time.

A)late finish
B)on time start
C)on time finish
D)early start
E)early finish

Question 62

In value stream mapping, the flow diagram that depicts the process and shows the times and resources used at each step and the time delay between each step is called a/an _____.

A)anticipated state map
B)future state map
C)ideal state map
D)current state map
E)None of these answers.

Question 63

_____ is a way to achieve continuous performance improvement in an item, product, or service, but it is not a technique for cheapening a product or service by lowering quality or other performance attributes below what customers expect.

A)Make-buy analysis
B)Total cost analysis
C)Price analysis
D)Cost analysis
E)Value analysis