Deck 15: Integrated Production Processes IPP

Question 1

The computer technology application that automates the product design process, including but not limited to the functions of geometric modeling, materials stress and strain analysis, drafting, storing product specifications, and mechanical simulation of a product's performance, is called CAD/CAE.

Answer 1

True

Question 2

Production systems facilitate integration of all aspects of product design, marketing, and manufacturing.

Answer 2

False

Question 3

In the pull approach to manufacturing, the sales forecast drives the production plan and goods are produced in large batches.

Answer 3

False

Question 4

Purchase orders convey authority for the manufacture of a specified product or subassembly in specified quantity and describe the material, labor, and machine requirements for the job.

Question 5

Theoretically, in the push approach to manufacturing, each batch or job consists of one unit.

Question 6

JIT is a manufacturing philosophy or business strategy for designing production systems that are more responsive to precisely timed customer delivery requirements.

Question 7

With the pull approach to manufacturing, factory machinery is arranged in clusters or cells.

Question 8

A supply chain is a sequence of activities performed by an organization that add value or utility to the product produced or service rendered.

Question 9

MRP is an integrated decision support system for planning, executing, and controlling manufacturing operations

Question 10

An assembly line manufacturing system is a highly automated computer integrated manufacturing system that has its goal of achieving the ability to quickly produce wide varieties of products using the same equipment.

Question 11

A cost driver is one of the main factors influencing total cost.

Question 12

MRP is a process that uses bills of material, raw material and WIP inventory status data, open order data, and the master production schedule to calculate a time-phased order requirements schedule for materials and subassemblies.

Question 13

A process costing system attempts to assign costs to products based on the amount of service operations, such as purchase order preparation, material handling, storage time, wait time, and other nonvalue-added processes, that the products consume.

Question 14

The capacity requirements planning (CRP) process that uses the information from the master production schedule and the time-phased order requirements schedule to develop detailed machine and labor use schedule based on available capacity.

Question 15

The inventory production schedule is a statement of specific production goals developed from forecasts of demand, actual sales orders or inventory information.

Question 16

Cycle time is the time it takes from when authorization is made for goods to be produced to when the goods are completed.

Question 17

Product life cycle management (PLM) systems are ERP modules or enterprise system add-ons that organize data by product, including design, manufacturing specifications, quality, and warranty performance.

Question 18

Lifecycle costs are the sum of costs to design, produce, market, deliver, and support a product from conception to ultimate discontinuance.

Question 19

Supply chain management software provides available to promise planning and capable to promise planning.

Question 20

Continuous inventory management is an inventory management approach where inventory needs and production capabilities are matched across the entire global enterprise

Question 21

The process of exploding the BOM involves extending a BOM to determine the total of each component required to manufacture a given quantity of an upper-level assembly or subassembly

Question 22

An automated storage and retrieval system (AS/RS) is a computer-based cart system capable of delivering parts and tools among multiple work centers.

Question 23

Which of the following is not one key characteristics of companies that are successful at managing the pressures resulting from global complexity according to the Deloitte Touche report?

A)improved internal business processes in the areas of customers, products, and supply chains
B)better use of technology to increase integration within and among the areas of customers, products and supply chain
C)pursuit of new lucrative marketing channels
D)better general capabilities in the areas of collaboration, flexibility, visibility, and technology

Question 24

The final move ticket data marks the end of the conversion process and the movement of goods to the finished goods warehouse.

Question 25

Designing new and creative products and getting them to market quickly is an example of:

A)product innovation
B)production process innovation
C)supply chain management
D)management accounting systems

Question 26

A bill of material contains the standard material quantities that are required to produce one unit of end product.

Question 27

Computer-aided manufacturing (CAM) is the application of computer and communications technology to improve productivity by linking computer numerical control (CNC) machines, monitoring production, and providing automatic feedback to control operations.

Question 28

The financial accounting system is concerned with the flow of costs through the factory.

Question 29

The shop floor control process is devoted to monitoring and recording the status of manufacturing orders as they proceed through the factory.

Question 30

Available to promise planning is the accumulation of data on current inventories, sales commitments, planned production and excess production capacity or other planned production capacity that could be quickly converted to production of the desired finished goods necessary to fulfill a sales order request.

Question 31

Capable to promise planning is the accumulation of the data on current inventories, sales commitments, and planned production to determine whether the production of finished goods will be sufficient to commit to additional sales orders.

Question 32

Which of the following is not one of the key drivers of complexity in manufacturing operations in the new millennium according to the Deloitte Touche survey?

A)facing the realities of globalization
B)the quickening pace of product innovation
C)pursuit of new lucrative markets and channels
D)pressure to reduce costs throughout the value chain

Question 33

Which of the following is impacted heavily by flexible costing, ABC, shifting the cost structure more towards variable costs, and reducing direct labor costs?

A)product innovation
B)production process innovation
C)supply chain management
D)management accounting systems

Question 34

An automated storage and retrieval system (AS/RS) is a computer-controlled machine that stores and retrieves parts and tools.

Question 35

The material, labor, and machine requirements for each job are reflected in a manufacturing order.

Question 36

Variance analysis is the process of comparing actual information about input costs and usage to standards.

Question 37

The process of exploding the BOM results in a master production schedule.

Question 38

A step master shows the necessary steps and the time to complete each operation to produce a product.

Question 39

Computer-aided process planning (CAPP) is an automated decision support system that generates manufacturing operations instructions and routings based on information about machining requirements and machine capabilities.

Question 40

Which of the following has included management of throughput time and pull manufacturing?

A)product innovation
B)production process innovation
C)supply chain management
D)management accounting systems

Question 41

Performing a detailed analysis of cost per unit and cost drivers is an essential prerequisite for using:

A)concurrent engineering
B)activity-based costing
C)computer-integrated manufacturing
D)flexible manufacturing

Question 42

Trends in cost management/cost accounting include all of the following except:

A)reductions in the administrative costs of gathering data
B)a trend toward job order cost systems and away from process cost systems
C)adding a fourth cost category called direct technology
D)reduction in the direct labor cost component

Question 43

Which of the following involves measuring the time from authorization of goods to be produced to when the goods are completed?

A)product life cycle management
B)throughput time
C)push manufacturing
D)pull manufacturing

Question 44

The objectives of computer-aided design (CAD) and computer-aided engineering (CAE) are all of the following except:

A)improve design productivity
B)reduce design lead time
C)increase redundant design effort
D)enhance design quality

Question 45

Which of the following statements is false?

A)With the pull approach to manufacturing, factory machinery typically is arranged in factory cells.
B)The pull approach to manufacturing should lead to reduced work in process and finished goods inventories.
C)The pull approach to manufacturing should lead to shorter production runs.
D)Enterprise resource planning (ERP) employs a pull approach to manufacturing.

Question 46

The Level 0 data flow diagram for the integrated production process includes all of the following process bubbles except

A)design product and production processes
B)generate master distribution schedule
C)determine needs for materials
D)record manufacturing events

Question 47

Which of the following often includes global inventory management?

A)design product and production processes
B)generate master production schedule
C)determine needs for materials
D)develop detailed production instructions

Question 48

The implementation features of just-in-time (JIT) manufacturing typically include all of the following except:

A)arranging the factory in work cells
B)assigning each worker to a single machine
C)allowing workers to stop the production line
D)requiring that the daily production schedule remain fairly constant

Question 49

Prevailing trends in production systems reflect all of the following except:

A)emphasis on customer satisfaction
B)shortened product life cycles
C)increased factory automation
D)the change from "pull" to "push" production scheduling

Question 50

Which of the following statements is true?

A)Japanese companies have accomplished much in the area of production process innovation, mainly by switching from pull to push manufacturing.
B)Cellular manufacturing organizes machines by department.
C)Adopting the pull approach to manufacturing requires an increase in floor space.
D)In the push approach to manufacturing, the sales forecast drives the production plan and goods are produced in large batches.

Question 51

Which of the following is a statement of specific production goals developed from forecasts of demand, actual sales orders, or inventory information?

A)a master production schedule (MPS)
B)materials requirements planning (MRP)
C)shop floor control (SFC)
D)just-in-time (JIT) manufacturing

Question 52

Activity-based-costing (ABC) systems are generally prevalent in companies seeking to increase ____ and ____.

A)cost accuracy and usefulness
B)cost accumulation and cost assignment
C)cost allocation and cost containment
D)product costing and cost allocation

Question 53

The objectives of just-in-time (JIT) manufacturing usually include all of the following except:

A)large lot sizes
B)zero defects
C)zero setup times
D)zero lead times

Question 54

Which of the following is used to develop detailed machine- and labor-use schedules that consider available capacity?

A)capacity requirements planning (CRP)
B)capable to promise planning (CTP)
C)computer-aided process planning (CAPP)
D)computer-aided manufacturing (CAM)

Question 55

Which of the following is an ERP add on system that organizes data by product, including designs, manufacturing specifications, quality and warranty performance?

A)product life cycle management
B)throughput
C)push manufacturing
D)pull manufacturing

Question 56

Which of the following involves short production runs, continuous flow of operations, cellular manufacturing, reduced floor space, and reduced WIP?

A)product life cycle management
B)throughput time
C)push manufacturing
D)pull manufacturing

Question 57

Which of the following lists the detailed specifications of each item of raw materials?

A)parts master
B)routing master
C)work center master
D)bill of materials

Question 58

Which of the following components is not part of a flexible manufacturing system (FMS):

A)manufacturing resource planning (MRP)
B)computer aided manufacturing (CAM)
C)automated storage and retrieval systems(AS/RS)
D)automated guided vehicle systems (AGVS)

Question 59

Which of the following specifies the operations necessary to complete a subassembly or finished good and the sequence of operations?

A)parts master
B)routing master
C)work center master
D)bill of materials

Question 60

Pull manufacturing should lead to all of the following except:

A)short production runs
B)increased work in process and finished goods inventories
C)continuous flow operations
D)a cellular arrangement of factory machinery

Question 61

The raw material quantity variance can be determined by:

A)an excess RM issue notice
B)an RM returned notice
C)both a and b
D)none of the above

Question 62

________________________________are ERP modules or enterprise systems add-ons that organize data by product, including designs, manufacturing specifications, quality, and warranty performance.

Question 63

This shows when a manufacturing order or purchase order should be released so that the subassemblies and raw materials will be available when needed.

A)bill of materials
B)routing sheet
C)time-phased order requirements schedule
D)parts master file

Question 64

The computer technology application that automates the product design process, including but not limited to the functions of geometric modeling, materials stress and strain analysis, drafting, storing product specifications, and mechanical simulation of a product's performance, is called ____________________________________________________________.

Question 65

_________________________ is the time it takes from when authorization is made for goods to be produced to when the goods are completed.

Question 66

The logic of the typical inventory system would likely include all of the following processes except:

A)prepare purchase requisition
B)record vendor payable
C)record receipt of inventory
D)record cost of inventory receipts

Question 67

In the ____________________ approach to manufacturing, the sales forecast drives the production plan and goods are produced in large batches.

Question 68

Supply chain management software provides ____________________ to promise planning and ____________________ to promise planning.

Question 69

_________________________ are the sum of costs to design, produce, market, deliver, and support a product from conception to ultimate discontinuance.

Question 70

Which of the following is not an inventory process control?

A)JIT materials acquisition
B)locked storerooms
C)periodic inventory systems
D)physical counts

Question 71

The AICPA's Practice Alert No.94-2: Auditing Inventories-Physical Observations describes several circumstances that constitute inventory fraud.Which of the following is not an example of inventory fraud?

A)including items in inventory when the corresponding payable has not been recorded
B)adjusting inventory to lower-of-cost-or-market
C)increasing counts for items that auditors did not test count
D)counting obsolete inventory as salable or usable

Question 72

____________________ systems facilitate the integration of all aspects of product design, manufacturing and marketing.

Question 73

The process of comparing actual information about input costs and usage to standards is:

A)standard costing
B)process costing
C)variance analysis
D)activity based costing

Question 74

A(n) _________________________ is a sequence of activities performed by an organization that add value or utility to the product produced or service rendered.

Question 75

What conveys authority for the manufacture of a specified product or subassembly in a specified quantity and describe the material, labor, and machine requirements for the job?

A)capacity requirements planning (CRP)
B)manufacturing orders (MO)
C)capable to promise planning (CTP)
D)computer-aided process planning (CAPP)

Question 76

Materials requirements planning (mrp) normally would use all of the following inputs except:

A)master production schedule (MPS)
B)bill of materials
C)routing file
D)raw materials inventory status data

Question 77

Theoretically, in the ____________________ approach to manufacturing, each batch or job consists of one unit.

Question 78

Which of the following inventory frauds is not identified by Practice Alert No.94-2: Auditing Inventories--Physical Observations.

A)double-counting inventory
B)counting obsolete inventory
C)including inventory for which the corresponding payable has not been recorded
D)employee theft of inventory item having high sales volume

Question 79

A(n) ___________________________________ attempts to assign costs to products based on the amount of service operations, such as purchase order preparation, material handling, storage time, wait time, and other nonvalue-added processes, that the products consume.

Question 80

With the pull approach to manufacturing, factory machinery is arranged in ____________________.