Which of the following is not a common constraint regarding vendor managed inventory?

Perceived quality is good when the organisation's specificaton of quality is more than the customer's perceptions of quality. a) True b) False

Which of the following is NOT a typical inspection point? Select one: 1. upon receipt of goods from your supplier 2. during the production process 3. before the product is shipped to the customer 4. at the supplier's plant while the supplier is producing 5. after a costly process

The goal of inspection is to Select one: 1. detect a bad process immediately 2. add value to a product or service 3. correct deficiencies in products 4. correct system deficiencies 5. all of the above

detect a bad process immediately

Inspection of a 'variable' measures if the product's performance falls within an acceptable range. a) True b) False

Which of the following statements is correct? Select one: 1. Inspection determines the root cause of product failures 2. Inspection separates acceptable from unacceptable products 3. Inspection always ensures that customers will be satisfied with goods and services 4. Inspection provides the management information necessary to improve processes 5. Inspection is the most cost effective way of ensuring quality

Inspection separates acceptable from unacceptable products

When customers expectations are confirmed by perceptions, service quality is considered satisfactory. a) True b) False

ISO 9000 seeks standardisation in terms of Select one: 1. products 2. production procedures 3. suppliers' specifications 4. procedures to manage quality 5. all of the above

procedures to manage quality

Select the following that would NOT normally be considered as 'costs of quality' Select one or more: 1. Warranty costs 2. Prevention costs 3. Marketing costs 4. Research and development costs 5. Inspections costs Feedback

Research and development costs Marketing costs

Total Quality Management emphasises: Select one: 1. ISO 9000 certification 2. the responsibility of the Quality Control staff to identify and solve all quality-related problems 3. a process where mostly statisticians get involved 4. a system where strong managers are the only decision makers 5. a commitment to quality that goes beyond internal company issues to suppliers and customers

a commitment to quality that goes beyond internal company issues to suppliers and customers

Testing is an example of: Select one: 1. Appraisal costs 2. Prevention costs 3. Internal failure costs 4. External failure costs 5. None of the above

The preferred method for achieving total quality in process output is: Select one: 1. Perform inspection at the next process 2. Build and install an error-proof process and maintain it 3. Rely on a team of highly trained and dedictaed inspectors 4. Rely on operator self-inspection and self-correction

Build and install an error-proof process and maintain it

The specific concerns of total quality management (TQM) include a number of aspects. Which is NOT normally associated with TQM? Select one: 1. Meeting the needs and expectations of customers 2. Inclusion of every person in the organisation 3. Primarily a "worker" rather than a management activity 4. Covering all parts of the organization

Primarily a "worker" rather than a management activity

The implied cost models of TQM are quite similar to those used in the traditional approach to quality a) True b) False

The TQM approach suggests that each individual has an impact on quality. a) True b) False

The 'error cause removal model' is a method that makes sure that blame is placed on the right person a) True b) False

Little's law explains the relationship between cycle time, throughput time and work in process. Use this law to calculate the output perweek to one decimal places for an organisation works a 5.4 day 52 hour week and has an average thoughput time of 28 days and 608 items in work in process. a. 117.3 b. 0.046 c. 209.3 d. None of these answers is correct e. 117.2 f. 21.7

The cycle time found using Little's Law when divided into 1 will give the equivalent output measure, e.g. a cycle time of 0.25 days is the equivalent of 4 items of output per day (1 / 0.25).
The correct answer is: 117.3

Just in Time is best used when variety is high and there is a need for close control. a) True b) False

Just-in-Time production implies: 1. That increased complexity means that processes must be controlled using computer based production systems 2. That products will be pulled through the operations system to meet customer demand 3. Large batches of similar products will need to be manufactured to increase efficiency 4. An increase in total inventory to cater for the likelihood of more frequent stock-outs 5. A wide range of suppliers will be needed to meet increased demand

That products will be pulled through the operations system to meet customer demand

Just-in-time does NOT require: Select one: 1. Dependable supply parts and reliable equipment 2. Focus on high capacity utilisation 3. No disruption in production due to quality errors 4. Customer demands met from production not inventory Feedback

Focus on high capacity utilisation

Which ONE of the following statements is TRUE about the kanban system? 1. Counting the quantity left in the container is used to check to see when more need to be made 2. The supplier workstation signals to the customer workstation as soon as a batch has been completed. 3. It is associated with a push system. 4. The customer workstation signals to the supplier workstation when production is needed. 5. It is a robust system that avoids interuptions to smooth operations when numerous quality problems occur.

The customer workstation signals to the supplier workstation when production is needed.

Visibility measures used in just-in-time (JIT) would NOT include: Select one: 1. Samples of competitor's products, including good and defective items 2. Displays showing improvement techniques and checklists 3. Visual control items such as kanban 4. Hidden TV cameras to monitor individual staff at work Feedback

Hidden TV cameras to monitor individual staff at work

An effective JIT effort should result in Select one: 1. queue and delay reduction 2. quality improvement 3. cost reduction 4. variability reduction 5. all of the above

Continuous flow manufacture Term

Fast-throughput manufacture 

Levelled scheduling (heijunka) is the Japanese derived term for levelling the production schedule so that: Select one: 1. Mix and volume level are even over time 2. Volume and yield level are even over time 3. Mix and quality level are even over time 4. Mix and yield level are even over time

Mix and volume level are even over time

With regards to working with suppliers, JIT systems typically require: Select one: 1. delivery of large lots at frequent intervals 2. the lowest possible price 3. multiple sources from which to purchase 4. long-term relationships and commitments 5. buyer inspection of goods and materials

long-term relationships and commitments

Which of the following is NOT true about JIT systems? Select one: 1. The goal of JIT is to drive all inventory queues to a moderate level, thus minimizing inventory investment and shortening lead times 2. The JIT system is based on the philosopy of eliminating waste and utilizing the full capability of the worker 3. JIT is typically applied to repetitive manufacturing 4. All of the above statements are true 5. Under JIT the ideal lot size is one

The goal of JIT is to drive all inventory queues to a moderate level, thus minimizing inventory investment and shortening lead times

A production system in which inventory is "pulled" through the shop tends to require a larger work-in-progress inventory than a system in which inventory is "pushed" through the shop. a) True b) False

Which one of the following would be considered a pre-requisite for successful Just-in-Time production? Select one: 1. High variety of product range 2. The preparation of a Master Production Schedule 3. Preventative maintenance of equipment 4. Sophisticated production and materials planning computer systems 5. Suppliers in multiple locations

Preventative maintenance of equipment

Select those which are benefits of cells production layouts: Select one or more: 1. Reduction of skill levels required 2. Reduction of inventory 3. Elimination of movement and waiting time between operations 4. Reduction of number of employees 5. Less interaction between employees

Elimination of movement and waiting time between operations. Reduction of number of employees. Reduction of inventory

Which of the following statements about Just-in-Time is correct? Select one: 1. JIT will overcome poor component manufacture 2. JIT is only useful in a high product variety environment 3. JIT is essential for a company involved in project work 4. JIT pushes inventory through the operations process 5. JIT seeks to reduce inventory in an effort to reduce waste

JIT seeks to reduce inventory in an effort to reduce waste

MRP stands for: Select one: 1. Materials Requirements Planning 2. Master Resources Production 3. Manufacturing Requirements Planning 4. Management Reaction PlanningTerm

Materials Requirements Planning

Optimized production technology (OPT) is a computer-based technique and tool which helps to schedule production systems. Which of the following are NOT principles of OPT? Select one: 1. Process batch should be variable 2. Balance flow is what is required 3. Capacity is "king" 4. Bottlenecks govern throughput

The outputs of a MRP11 system are: Select one: 1. Material Requirement Plans / scheduled purchase orders / capacity requirement plans 2. Sales order priorities / bills of materials / Master Production Schedule 3. Stock quantities / Bills of Materials / Master Production Schedule 4. Capacity requirement plans / stock quantities / stock locations 5. Master Production Schedule / capacity requirement plans / stock locations

Material Requirement Plans / scheduled purchase orders / capacity requirement plans

Select those that are inputs for every MRP system: Select one or more: 1. Bill of Materials 2. Stock on hand 3. Sales forecast 4. Delivery costs 5. Re-order point

Bill of Materials. Stock on hand

MPS stands for: Select one: 1. Master Production Schedule 2. Material Planning System 3. Material Production Schedule 4. Master Planning System

Master Production Schedule

Select those of the following which are benefits of MRP: Select one or more: 1. better inventory planning and scheduling 2. increased customer service 3. though the concepts behind it are complicated, its execution can be simple 4. reduced inventory levels without reduced customer service 5. lot sizing need not be considered

1. better inventory planning and scheduling. 2. increased customer service 4. reduced inventory levels without reduced customer service Correct

Closed Loop MRP means: Select one: 1. Unused materials are returned to stores and recorded back into the system 2. Capacity and resources planning is included in the MRP logic 3. Actual sales are netted off the forecasts in the MPS 4. Actual inventory is counted regularly and adjustment made to the inventory records

Capacity and resources planning is included in the MRP logic

which of the following is a major strength of Manufacturing Resource Planning? Select one: 1. minimises the amount of material used in production 2. minimises the time required for production 3. minimises the amount of labour used in production 4. determines the feasibility of a production schedule within resource constraints

determines the feasibility of a production schedule within resource constraints

Enterprise Resource Planning (ERP) has been criticised on a number of grounds. Which of the following is NOT a common criticism of ERP? Select one: 1. It can have a disruptive effect on the organisation's operations 2. Implementation is expensive 3. It doesn't allow decisions and databases from all part sof the organisation to be integrated 4. The effect it has on business is disappointing Feedback

It doesn't allow decisions and databases from all part sof the organisation to be integrated

Calculate from the available balances below the 'net requirements' and the additional scheduled receipt(s) that are required to ensure that stock is only available when needed. The delivery batch quantity is 20 and the leadtime from order to delivery is 2 hours. Available balance = week1: 20. week2: 10. week3: -10. week 4: -20. week 5: -30. week 6: -40. second new scheduled receipt of 20 in week: first new scheduled receipt of 20 in week: third new scheduled receipt of 20 in week:

second new scheduled receipt of 20 in week: – 5, first new scheduled receipt of 20 in week: – 3, third new scheduled receipt of 20 in week: – None needed

The difference between a gross material requirements plan (gross MRP) and a net material requirements plan (net MRP) is Select one: 1. the net MRP includes consideration of the inventory on hand, whereas the gross MRP does not 2. the gross MRP may not be computerised but the net MRP must be computerised 3. the gross MRP is only an estimate, whereas the net MRP is used for actual production scheduling 4. the gross MRP includes consideration of the inventory on hand, whereas the net MRP does not 5. the gross MRP doesn't take capacity into account, whereas the net MRP includes the capacity considerations

the net MRP includes consideration of the inventory on hand, whereas the gross MRP does not

The list of quantities of components, ingredients and materials required to produce a product is the Select one: 1. bill-of-material 2. engineering assembly drawing 3. purchase order 4. production order 5. none of the above

The phenomenon of magnification of demand variability as we move from the customer to the producer in the supply-chain is referred to as the: Select one: 1. Postponement 2. Just-in-time approach 3. Demand multiplier 4. Elasticity of demand 5. Bullwhip effect

Single-sourcing does NOT encourage which of the following outcomes: Select one: 1. Contracts are easier to break-off 2. Greater confidentiality is possible 3. More economies of scale are possible 4. Cooperation on new products and services is also easier

Contracts are easier to break-off

The Forrester effect shows that inaccuracies increase further upstream in the supply chain.
Select one: 1. True 2. False

The technique used to measure supplier performance over a period of time is usually known as: Select one: 1. Supplier Appraisal 2. Vendor rating 3. Vendor Managed Inventory 4. Manufacturing Resources Planning 5. Pareto Analysis

Which of the following is NOT a characteristic of lean supply chain approaches Select one: 1. Supply is initiated only when required 2. Supply level agreements detail exactly what supplier and customer are expected to do 3. Suppliers are expected to continually improve their performance 4. Suppliers give little information about their own operations

Suppliers give little information about their own operations

Use of EDI in the supply chain has led to shorter lead times and lower inventory.
Select one: 1. False 2. True

Single-sourcing has a number of advantages. Select those of the following that are advantages? Select one or more: 1. Quality may vary 2. Sources can be switched easily in case of supplier failure 3. The supplier power is decreased 4. More dependable delivery 5. More scale economies

More dependable delivery. More scale economies

Which of the following is NOT a disadvantage of single-sourcing? Select one: 1. The buyer's firm is more vulnerable to disruption if a supply failure occurs? 2. The supplier might force up prices if no alternative source is available? 3. A single supplier is more affected by fluctuations in volume? 4. Less easy to develop effective SQA (supplier quality assurance)

Less easy to develop effective SQA (supplier quality assurance)

A manufacturer seeking to reduce the variability of quality should use multiple-sourcing.
Select one: 1. False 2. True

Select the type of business relationships that suit Supply Chain Management. Select one or more: a. B2B (Business to Business) b. C2C (Consumer to consumer) c. C2B (Consumer to business) d. B2C (Business to consumer)

B2B (Business to Business) B2C (Business to consumer)

Select the type(s) of interaction between players in a supply relationships that matches the Partnership approach Select one or more: a. Vendor rating is used to evaluate supplier quality b. Relationship is integrated c. Relationship is co-operative d. Information is transparent

Relationship is integrated. Information is transparent

Materials management is: Select one: 1. concerned with developing new reliable suppliers 2. all of the activities that procure raw materials, transforms them into intermediate goods and then final products, and delivers the products to customers through a distribution system 3. the acquistion of goods and services 4. the integration of all material acquistion, movements and storage activities of the firm 5. none of the above

4. the intergration of all material acquistion, movements and storage activities of the firm

Multiple-sourcing has a number of advantages. Which of the following is NOT an advantage? Select one: 1. A wider source of knowledge and expertise is available 2. More scale economies 3. The purchaser can drive down prices through competitive tendering 4. Sources can be switched in case of supplier failure

Disadvantages of multi-sourcing do NOT include: Select one: 1. Suppliers are more likely to form a cartel and drive up prices? 2. More vulnerable to disruption if a failure to supply occurs 3. Difficulties in encouraging commitment by all suppliers? 4. Developing supplier quality assurance standards is less easy?

More vulnerable to disruption if a failure to supply occurs

If the operation is low cost and high utilisation and the market requirements are for high variety and many changes, that is:
Select one: 1. Mismatch 2. Match

Which sourcing process is used for complex items where there are a number of potential vendors?

Which types of inventory are included in the average aggregate inventory value?

What term describes the development and management of supplier relationships?

Which of the following are reasons why a company would choose to outsource select all that apply?