Question 1

Lead time includes both value-added time and non-value-added time.

Accepted Answer

Lead time is the total amount of time it takes to get a product or service to the customer, and it includes both value-added time (time spent on activities that directly add value to the product or service) and non-value-added time (time spent on activities that do not add value to the product or service).

Question 2

Just-in-Time (JIT) manufacturing favors organizing work around products rather than around processes.

Accepted Answer

JIT manufacturing focuses on producing products only when they are needed, which requires organizing work around the specific product being produced rather than the processes used to produce it. This allows for greater efficiency and reduces waste in the production process.

Question 3

The just-in-time (JIT) philosophy views inventory as a necessary buffer to protect against process problems.

Accepted Answer

The JIT philosophy seeks to minimize inventory and view it as waste, rather than a buffer. It aims to rely on a highly efficient and responsive supply chain to quickly deliver materials and products as needed.

Question 4

Long setups and large batch sizes result in smaller inventories.

Accepted Answer

Long setups and large batch sizes typically lead to larger inventories because more items are produced before switching to the next product, leading to excess stock.

Question 5

Reducing wait time is directly linked to reducing inventory.

Accepted Answer

When wait time is reduced, less inventory needs to be kept on hand to account for longer lead times. This is because there is less uncertainty in the demand and the supply chain can operate more efficiently with smaller inventory buffers.

Question 6

The just-in-time (JIT) philosophy views inventory as an unnecessary waste of resources.

Accepted Answer

JIT philosophy aims to eliminate waste, including excess inventory, in order to improve efficiency and reduce costs.

Question 7

Large batch sizes increase lead time.

Accepted Answer

Large batch sizes require more time to be produced and processed, leading to an increase in overall lead time.

Question 8

Reducing wait time is not linked to reducing inventory.

Accepted Answer

Reducing wait time can lead to reducing inventory, as shorter wait times mean that products can be delivered more quickly and efficiently, reducing the need for large inventory levels. Conversely, reducing inventory can lead to longer wait times, as products may need to be manufactured or shipped from farther away to maintain necessary stock levels.

Question 9

Lead time is the process time between start and completion.

Accepted Answer

Lead time is the time between the initiation and completion of a production process, including all stages from raw material processing to finished goods packaging.

Question 10

Just-in-Time (JIT) manufacturing is also called make-to-order manufacturing.

Accepted Answer

Just-in-Time (JIT) manufacturing refers to producing orders in response to customer demand, which means that products are made to order rather than being produced in large quantities beforehand, which is known as make-to-stock manufacturing.

Question 11

A make-to-order company matches its production schedules to actual customer orders.

Accepted Answer

A make-to-order company produces goods only after receiving a confirmed order from a customer. Therefore, its production schedules are matched with actual customer orders to avoid excess inventory or wastage of resources.

Question 12

Just-in-Time (JIT) manufacturing is also called make-to-stock manufacturing.

Accepted Answer

Just-in-Time (JIT) manufacturing is actually the opposite of make-to-stock manufacturing. In JIT manufacturing, products are only produced when they are needed, which helps to minimize inventory costs and reduce waste. Make-to-stock manufacturing, on the other hand, involves producing products in advance and storing them until they are sold.

Question 13

A setup is the time required to prepare an operation for a new production run.

Accepted Answer

A setup is the process of preparing the machines, equipment, and materials required to start a new production run. It usually involves adjusting the machines, checking the tools, and configuring the systems to ensure that they are ready for production. The setup time can vary depending on the complexity of the operation and the type of equipment used but is an essential step in ensuring high-quality and efficient production runs.

Question 14

Employee involvement in a product-oriented factory emphasizes employee teams, rather than individual employees.

Accepted Answer

In a product-oriented factory, employee involvement is usually emphasized through the formation of employee teams rather than individual employees working alone. This is because teamwork allows for better communication, collaboration, and problem-solving, which are essential for the success of the factory.

Question 15

All lead time are considered as value-added lead time.

Accepted Answer

Lead time includes both value-added and non-value-added activities. Non-value-added activities include waiting, transportation, and storage, which do not add any value to the product or service. Therefore, all lead time cannot be considered as value-added lead time.

Question 16

Just-in-Time (JIT) manufacturing focuses on reducing time, cost, and poor quality in processes.

Accepted Answer

Just-in-Time (JIT) manufacturing is a philosophy that aims to reduce waste (including time), cost, and poor quality in processes.

Question 17

In the just-in-time (JIT) philosophy, unexpected downtime is the result of unreliable processes.

Accepted Answer

The just-in-time philosophy focuses on removing waste in the manufacturing process and achieving smooth, reliable operations. Unexpected downtime is seen as a sign of unreliable processes that need to be addressed and improved upon.

Question 18

Within-batch wait time increases total lead time.

Accepted Answer

Within-batch wait time refers to the time a product spends waiting within a batch or group to be processed. This wait time increases the total lead time of the product, which is the time it takes from when the customer places an order to when they receive the finished product. This is because the within-batch wait time adds to the overall processing time for the batch, which then increases the lead time for the entire batch.

Question 19

Just-in-Time (JIT) manufacturing favors organizing work around processes rather than around products.

Accepted Answer

JIT manufacturing focuses on organizing work around products to minimize waste and improve efficiency by producing only what is needed, when it is needed.

Question 20

Lead time reduction can be a cost-saving goal for any processed item.

Accepted Answer

By reducing lead time, companies can shorten the time it takes to produce and deliver a product or service, ultimately reducing costs and improving efficiency.

Quiz 27: Cost Management for Just-In-Time Environments