Deck 6: Just-In-Time Lean Purchasing

Question 1

__________ manufacturers attempt to reduce incoming material inspection as much as possible. In order to eliminate the associated receiving inspection costs, a very high emphasis is placed on the quality of incoming materials under the _______ system.

A) Most / JIT
B) Japanese / JIT
C) Many / JOB
D) Smart / JIT
E) Low cost / MOB

Answer 1

B

Question 2

In order to obtain ________ lot sizes for production, the order quantity size needs to be _________ and corresponding delivery schedules need to be made more _________.

A) small / reduced / frequent
B) larger / increased / infrequent
C) smaller / increased / frequent
D) larger / reduced / frequent
E) small / increased / infrequent

Answer 2

A

Question 3

The reliability of supply is a critical consideration in the selection of _______ suppliers.

A) key
B) all
C) MOB
D) JIT
E) JOT

Answer 3

D

Question 4

The role of the purchasing function in a manufacturing organization has become increasingly important. The _____________ production control system focuses on reducing both raw materials and work-in-process inventories.

A) JUST-ON-TARGET
B) MBO
C) just-in-time
D) strategic
E) just-in-line

Question 5

Thus, a kanban system is referred to as a __________ because the kanban is used to ______ parts to the next production stage only when they are needed.

A) push system / push
B) pull system / pull
C) traditional system / ship
D) traditional system / transfer
E) pull system / push

Question 6

JIT emphasizes scheduling flexibility by aiming for __________________.

A) reduced waste and shorter setup times
B) reduced purchasing lead times and setup times
C) faster delivery and smaller orders
D) increased purchasing lead times and shorter setup times
E) short purchasing lead times and lower costs

Question 7

Supplier performance can be measured more accurately under the __________ purchasing approach compared to the traditional one.

A) MBO
B) JIT
C) JOT
D) JOB
E) ITS

Question 8

Lower levels of __________ contribute significantly to reduced working capital requirements for the firm.

A) waste
B) supplies
C) materials
D) safety stock
E) inventory

Question 9

Rule Three (3) of the dual card kanban states: Containers for each specific part are ___________, and they are always filled with the same (ideally, small) quantity.

A) made of plastic
B) made to a customized size for the part
C) made of metal
D) standardized
E) "B" and "C" only

Question 10

Since JIT purchasing has gained popularity within the United States, the purchasing function has been preoccupied with trimming the overall supplier base in quest of so called __________ suppliers.

A) mega
B) super
C) superior
D) high quality
E) prominent

Question 11

The JIT philosophy inherently attempts to reduce lead times for order completions. Under traditional purchasing practices, the lead time is made up of all the following components with one exception. Which one is the exception?

A) paperwork lead time
B) manufacturing time for supplier
C) transportation lead time
D) time spent on unpacking and storing
E) time spent on receiving and inspection

Question 12

One of the most crucial elements of the ____________ system is small lot sizes.

A) just-in-time
B) management ordering and buying
C) just-on-target
D) purchasing
E) computer ordering and buying

Question 13

Rule Two (2) of the dual card kanban is: There as many kanbans per container as needed.

Question 14

Implementation of just-in-time (Lean) purchasing assists the purchasing function in its major objective(s) of ___________________________.

A) improving quality of incoming materials and supplier delivery performance
B) along with reducing lead times and cost of materials
C) improving supplier relationships and reducing waste
D) "A" and "B" only
E) "A" and "C" only

Question 15

ompared to traditional purchasing approaches, delivery lead times under the ________ system are considerably shorter. Lead-time reliability is usually much better for ___________ systems.

A) JIT / just-in-time
B) JOB / JOB
C) JOT / JOT
D) MBO / management buying and ordering
E) JIT / computerized

Question 16

JIT purchasing facilitates reduction in _____________ and the associated _____________ costs.

A) the cost of materials / storage
B) the cost of shipping / holding
C) the cost of inventory / storage
D) inventory levels / materials'
E) inventory levels / inventory holding

Question 17

The ____________ is to provide a firm with component parts and raw materials. ____________ also must ensure that high-quality products are provided on time, at a reasonable price.

A) manufacturing department / Manufacturing
B) operations division / Operations
C) function of purchasing / Purchasing
D) procurement department / Operations
E) buying function / Manufacturing

Question 18

Traditionally, long and infrequent production runs have in the past been considered beneficial for the overall productivity of a manufacturing organization.However, long production runs usually lead to ____________ of raw-material and finished-goods inventories.

A) stable levels
B) low levels
C) steady flows
D) intermittent flows
E) high levels

Question 19

The cost of raw materials has traditionally, been a serious concern of top management. Over the years, material cost as a proportion of total cost of the end product has risen sharply and is as high as ______ percent in some instances.

A) 50
B) 60
C) 70
D) 80
E) 90

Question 20

Rule One (1) of the dual card kanban is: No parts are made unless there is a production kanban to authorize production. If no production kanban are in the "in box" at a work center, the process remains idle, and workers perform other assigned activities. This rule enforces the "pull" nature of the process control.

Question 21

ecause of ____________ and frequent delivery schedules, suppliers are in a position to receive quick feedback regarding any potential manufacturing or design problems. Also, manufacturing is in a position to implement engineering changes quicker because of the _________ inventory levels.

A) large orders / increased
B) computerization / flat
C) smaller orders / increased
D) computerized ordering systems / reduced
E) smaller lot sizes / reduced

Question 22

__________ percent of the firms surveyed using JIT practices in the United States indicated that they had serious problems regarding lack of support from engineering.

A) Nineteen
B) Twenty-nine
C) Sixty-nine
D) Forty-nine
E) Thirty-nine

Question 23

Scheduling flexibility prevents confusion in the manufacturing plant and offers unique _____________ to manufacturing firms since they are capable of adapting to changes in the environment more quickly.

A) opportunities
B) strengths
C) opportunities and advantages
D) competitive opportunities
E) competitive advantages

Question 24

crucial issue to be considered is the relevance of _________ in the successful implementation of the just-in-time system in a country.

A) culture
B) procedure
C) communication style
D) life styles
E) policy

Question 25

If suppliers fail to provide materials of _____________ on a regular basis, production slow-downs and stoppages will occur regularly.

A) adequate quantity
B) acceptable quantity
C) adequate quality
D) high quality
E) acceptable quality

Question 26

Many firms report lack of support from __________ as being one of the major problems encountered in the implementation of JIT (Lean) purchasing.

A) stakeholders
B) their employees
C) their stockholders
D) their bankers
E) their lenders

Question 27

ffective development and implementation of the just-in-time system requires integration of important functional areas such as ______________________.

A) purchasing
B) manufacturing
C) quality
D) production and transportation
E) all of the above

Question 28

Some of the common problems associated with implementing the JIT system are as follows with one exception. Which one is the exception?

A) Lack of cooperation from suppliers
B) Lack of top management support
C) Lack of employee readiness and support
D) Lack of support from development
E) Low product quality

Question 29

The JIT philosophy concept cannot be implemented successfully without total support from ______________.

A) all involved
B) all employees
C) top management
D) middle management
E) the purchasing department

Question 30

comprehensive JIT progress report indicates that supplier costs were reduced by ________ when they adopted the JIT system in cooperation with their customers.

A) significant amounts
B) 11 percent
C) twenty fold
D) 100 percent
E) 10 percent

Question 31

The _________ see little incentive in adopting the JIT approach when the primary benefits of the program go to the buyer.

A) customers
B) suppliers
C) employees
D) stockholders
E) stakeholders

Question 32

Since ______________ (is) are critical in achieving a competitive advantage in today's global business world, manufacturers gain immensely by implementing the _____ production control system.

A) low prices / JIT
B) low costs / JOB
C) high-quality products / JIT
D) quality products / MOB
E) satisfaction / MBO

Question 33

ew buying firms, however, work closely with _________ to develop long-term relationships that provide for highly structured _______________ that lower costs for the buying firm.

A) suppliers / transportation routes
B) suppliers / deliveries
C) carriers / routes
D) carriers / delivery schedules
E) suppliers / delivery schedules

Question 34

Very often, resistance is encountered because the employees are required to change their _____________, or because they interpret the new system as being _____________ jobs.

A) long-standing work habits / a threat to their
B) work stations / unnecessary to their
C) job descriptions / an intrusion in their
D) job standards / an evaluation of their
E) personal work habits / a change in the expectations of their

Question 35

It is well documented that JIT reduces physical inventory level. Reductions in physical inventory will also have a favorable impact on:
Reduced insurance premiums associated with the storage of inventory.Reduced inventory holding costs.Reduced labor cost in store rooms and material handing costs.Reduced clerical and administrative costs.Reduced waste from the manufacturing process.Reduced obsolescence costs.Reduced deprecation of handling and storage equipment.ach of the cost savings will result in a leaner more profitable operation.

Question 36

JIT purchasing results in improved __________ and corresponding levels of higher ______________.

A) customer service / quality
B) relationships / customer service
C) customer service / satisfaction
D) buyer relations / supplier satisfaction
E) quality / customer satisfaction
Power Point Slide 30

Question 37

The JIT progress report mentioned in the textbook indicates that supplier quality improved by ______ percent since the JIT system was adopted.

A) 26
B) 16
C) 36
D) 6
E) 46

Question 38

s cooperation and relationships between suppliers and manufacturers build up in a JIT system, so do the opportunities to ______________________ and focus on ________________________.

A) lower costs of materials and supplies / reducing waste and shrinkage
B) conduct an extensive competitive analysis / reducing selling prices
C) conduct an extensive value analysis / reducing the cost of parts purchased
D) analyze competition / developing competitive strengths
E) conduct cost analysis / reducing the costs of doing business

Question 39

The switch to a JIT system presents formidable challenges. _________ must be prepared to change their behavior when their customers are using the JIT system.

A) Marketing
B) Management
C) Finance
D) Operations
E) Manufacturing

Question 40

Implementation of the JIT philosophy requires a _________ change in the organization.

A) major
B) minor
C) management
D) design
E) cultural

Question 41

The key lean principles focus on __________, ____________, ____________, and ___________. All of these key business principles have a direct effect on the purchasing function.

A) profit / reduction of waste / involvement / efficiency
B) human resources / waste removal / postponement / inefficiency
C) people / the elimination of waste / postponement / efficiency
D) people / the elimination of waste / involvement / efficiency
E) people / waste removal / postponement / efficiency

Question 42

The __________ system is a powerful management tool that could easily determine the success or failure of the manufacturing system.

A) MBO
B) CAD
C) CAM
D) TQM
E) JIT (lean)

Question 43

In its simplest form, "the manufacturing process" is a composition of the material flows. Just-in-time (JIT) is designed to manage the flow of ________________________ .

A) materials
B) components
C) tools
D) associated information
E) All of the above

Question 44

_______ has evolved as a novel manufacturing concept based on a philosophy of trust and commitment of the entire organization. The benefits of implementing a _____ system impact all entities involved in supply-chain management.

A) JIT / JIT
B) JST / JST
C) GOP / GOP
D) JOB / JOB
E) ITS / ITS

Question 45

nother critical issue for JIT manufacturers is the __________ in product demand. JIT systems seem to work best when its smooth production and low inventory requirements are aimed at meeting a relatively _________ product demand.

A) regularity / unstable
B) variability / stable
C) variability / variable
D) predictability / predictable
E) stability / stable

Question 46

JIT is Toyota's manufacturing philosophy to minimize _______, and the JIT production system is a subsystem controlled by ________.

A) costs / computer
B) waste / kanban
C) expenses / kanban
D) costs / kanban
E) waste / computer

Question 47

.JIT is also referred to as _______ production.

A) mass
B) quality
C) lean
D) custom
E) short run

Question 48

n organization driven by a JIT philosophy can improve _________________ by reducing inventory levels, reducing variability, improving product quality, reducing production and delivery lead times, and reducing setup costs.

A) profits
B) return on investment
C) dividends
D) "A" and "B"
E) "B" and "C"

Question 49

ccording to Monden (1983), the success of Toyota's kanban-controlled production system is supported by:

A) smoothing of production, standardization of jobs, and reduction of setup times
B) improvement of activities and design of machine layout
C) automation of processes
D) All of the above.
E) "A" and "C" only.

Question 50

Improvements in the kanban-controlled production systems have followed a pragmatic approach, ________________. Therefore, success of the JIT production system must be explained in conjunction with ________________, _________________, and lean thinking.

A) management by objectives/management by objectives/zero defects
B) zero defects/zero defects/total quality management
C) continuous improvement/continuous improvement/ total quality management
D) total quality management/total quality management/zero defects
E) quality circles/quality circles/continuous improvement systems

Question 51

Many companies turned to JIT looking for a relatively _________________ that would yield substantial short-term benefits. Over the years, these companies have come to realize the tremendous effort and commitment required to make a JIT system run smoothly.

A) painless organizational surgery
B) painless operational surgery
C) easy manufacturing process
D) easy operational process
E) painless financial surgery

Question 52

ll marketing strategies are compatible with the JIT system.

Question 53

The transition to ______ has not necessarily been a smooth one for many companies in the United States. But this does not imply that switching from a pure ____ system to a __________ system was a mistake for most companies.

A) JOT / MRI / JOT or hybrid
B) JIT / MBO / JIT or hybrid
C) JIT / MRP / JIT or hybrid
D) JOT / MRP / JOT or matrix
E) JIT / MRI / JIT or hybrid

Question 54

The ________ JIT production system has been erected based on the premise of minimizing _________________ (waste) by reducing or eliminating discrete batches.

A) computer controlled/batches or lots
B) computer controlled/inventories
C) kanban-controlled/stock on hand
D) kanban-controlled/work-in-process inventories
E) computer controlled/stock on hand

Question 55

The JIT production system is not a ___________.

A) pull system
B) complete system
C) true production system
D) quality system
E) panacea

Question 56

.The just-in-time (JIT) system is no longer a (n) _______________ in the manufacturing world today. In the face of intense global competition, many firms in the United States are looking at improved techniques to manage their manufacturing operations.

A) manufacturing theory
B) production concept
C) management concept
D) untried theory
E) esoteric concept

Question 57

There is a list of reasons why the Toyota manufacturing system may not work for all firms. The reasons include all of the following with one exception. The exception is:

A) different management styles, and so forth
B) supplier power
C) a diverse workforce
D) cultural differences
E) geographical dispersion of suppliers

Question 58

The following practices are considered essential for a comprehensive JIT implementation:
1. Uniform production (also known as heijunka)
2. Quick set times
3. Small lot sizes
4. Short lead times

Question 59

It takes time to ___________ of the workforce and _____________ relationships with suppliers.

A) change habits / improve
B) change attitudes / nurture long-term
C) improve the attitudes / build
D) change old habits / nurture long-term
E) change attitudes / maintain short-term

Question 60

The Toyota manufacturing system has been viewed in following different ways:

A) As a lean production system because it uses less of every resource compared with the conventional mass production system.
B) As a conventional reorder point system with extremely small lot sizes.
C) As a pull system as opposed to the conventional push system.
D) All of the above.
E) "A" and "C" only.

Question 61

In a ____________, removing an end item (or a fixed lot of end items) triggers the order release, by which the flow of materials or components is initiated. In contrast, ____________ allow for the production or material flow in anticipation of future demand

A) push system / pull systems
B) pull system / push systems
C) CIT system / CAM systems
D) diverse system / traditional systems
E) traditional system / push systems

Question 62

There are two main types of kanban: 1. __________ signals the need to produce more parts. Each kanban is physically attached to a container.2. __________ signals the need to withdraw parts from one work center and deliver them to the next work center.

A) Reorder kanban / Production kanban
B) Withdrawal kanban / Production kanban
C) Quality circle kanban / Withdrawal kanban
D) Production kanban / Withdrawal kanban
E) Production kanban / Zero defects kanban

Question 63

The kanban card contains the part number, the part description, the type of container, and various workstation information. The kanban production control system uses simple, visual signals to control the movement of materials between work centers as well as the production of new materials to replenish those sent downstream to the next work center.

Question 64

Kanban is the Japanese word for _____________.

A) card
B) container
C) computer
D) program
E) system