The overall objective of an integrated supply chain can best be described as the achievement of:
- A . decreased lead time.
- B . increased supplier partnerships.
- C . an efficient flow of materials and information.
- D . an efficient flow of production.
A company’s cost of goods sold would be found on which of the following financial documents?
- A . Balance sheet
- B . Income statement
- C . Cash flow statement
- D . Performance statement
In an assemble-to-order production environment, the master production schedule contains:
- A . standard items.
- B . finished items.
- C . raw materials.
- D . subassemblies.
Which of the following manufacturing systems involves the creation of one unit or a small number of units?
- A . Flow manufacturing
- B . Intermittent manufacturing
- C . Project manufacturing
- D . Continuous manufacturing
After a quality improvement program has been successfully implemented, the greatest cost of controlling quality typically is the cost of:
- A . failure.
- B . appraisal.
- C . prevention.
- D . inspection.
In the income statement, the cost of goods sold is related to the:
- A . sales dollars.
- B . total inventory dollars.
- C . marketing expenses.
- D . manufacturing expenses.
Manufacturing overhead includes which of the following types of costs?
- A . Interest expense
- B . Supervision
- C . Direct labor
- D . Direct material
The question below is based on the following cost information:
What is the carrying cost?
- A . 14%
- B . 16%
- C . 20%
- D . 25%
Which of the following concepts could a firm implement to reduce defects?
- A . Hansei
- B . Jidoka
- C . Muri
- D . Heijunka
Inventory turns is an appropriate performance measure for which of the following functions?
- A . Material control
- B . Activity-based costing control
- C . Total quality management
- D . Flexible manufacturing
The primary purpose of enterprise resources planning is to:
- A . focus on the manufacturing function within an organization.
- B . integrate an approach to business management.
- C . use external knowledge to seek an internal advantage.
- D . provide data protection along the supply chain.
Which of the following techniques typically eliminates common errors?
- A . Practical kaizen training
- B . Kaizen
- C . Poka-yoke
- D . Kanban
Which of the following characteristics is most distinctive of lean manufacturing?
- A . Teamwork
- B . Continuous improvement
- C . Qualitative measurements
- D . Bottom-line results
Which of the following manufacturing environments presents the greatest complexity in promising completion dates for customer orders?
- A . Flow
- B . Repetitive
- C . Continuous
- D . Intermittent
Which of the following types of layouts is most efficient in a lean production environment?
- A . Islands
- B . Connected islands
- C . Functional layout
- D . Cells
The lean production concept works best in which of the following manufacturing environments?
- A . Make-to-order
- B . Intermittent
- C . Project
- D . Flow
The principal objective of total quality management in manufacturing is to:
- A . implement statistical process control.
- B . meet the expectations of the customer.
- C . reduce the costs of failure.
- D . eliminate inspections.
Which practice focuses on root cause analysis?
- A . Statistical process control
- B . Five whys
- C . Scatter diagram
- D . Pareto chart
Which of the following production environment strategies requires unique design or significant customization?
- A . Make-to-order
- B . Assemble-to-order
- C . Make-to-stock
- D . Engineer-to-order
The theory of constraints is most effective when:
- A . demand environments are unstable.
- B . demand environments are stable.
- C . the constraint cannot be managed easily.
- D . the constraint cannot be identified easily.
Which of the following manufacturing processes would be characterized by a narrow range of standard products, low direct labor costs, and a high level of technical support for manufacturing?
- A . Jobbing
- B . Intermittent
- C . Flow
- D . Project
Which of the following statements characterizes an intermittent manufacturing environment?
- A . Work center load is predictable.
- B . Routings for all products are the same.
- C . Work centers are organized by function.
- D . Kanban is the most appropriate scheduling method.
Gemba is a Japanese word meaning:
- A . shop floor.
- B . shop order.
- C . shop packet.
- D . shop traveler.
Which of the following terms refers to the practice of stopping the production line when a defect occurs?
- A . Haiku
- B . Arigato
- C . Poka-yoke
- D . Jidoka
Reducing set up time will affect item lead time and throughput in which of the following ways?
- A . Lead time will increase, throughput will decrease
- B . Lead time will increase, throughput will increase
- C . Lead time will decrease, throughput will increase
- D . Lead time will decrease, throughput will decrease
Which of the following tools is considered to be one of the seven quality tools?
- A . Gantt chart
- B . Input/output chart
- C . Control chart
- D . Capacity chart
A firm offers products configured from a large number of stocked options.
Which of the following production environments is the firm most likely to use?
- A . Engineer-to-order
- B . Make-to-order
- C . Assemble-to-order
- D . Make-to-stock
Which of the following items is considered an external failure cost?
- A . Warranty cost
- B . Incoming inspection
- C . Prevention cost
- D . Appraisal cost
Which of the following is a graphical representation of a frequency distribution?
- A . Cause-and-effect diagram
- B . Pareto analysis
- C . Scatter diagram
- D . Histogram
Which plant type describes a product at one stage that can be transformed into several distinct products at the next stage (divergent points)?
- A . A-Plant
- B . I-Plant
- C . T-Plant
- D . V-Plant
Which of the following issues would be of greatest concern for a company choosing to reduce its finished goods inventory?
- A . Long production changeover time
- B . Customer service expectations
- C . Product quality requirements
- D . Product shelf life constraints
Which of the following factors is included in cost of goods sold?
- A . Revenue
- B . General and administrative expenses
- C . Overhead
- D . Standard cost
Having the needed materials within easy reach of a subassembly process eliminates waste of:
- A . motion.
- B . transportation.
- C . making defects.
- D . stocks.
Having bolts and tools at the point of use on the automobile assembly line eliminates the waste of:
- A . waiting.
- B . overproduction.
- C . making defects.
- D . stocks.
A production rate based on customer demand is called:
- A . cycle time.
- B . tact time.
- C . lead time.
- D . queue time.
Which of the following types of manufacturing processes would tend to have the lowest work in process (WIP) inventory?
- A . Project
- B . Intermittent
- C . Batch
- D . Flow
An electronic board that provides visibility on the production floor is:
- A . andon.
- B . anova.
- C . ANSI.
- D . alpha factor.
The heijunka philosophy can best be described as:
- A . level production.
- B . make-to-stock production.
- C . a chase production strategy.
- D . produce to stock production.
Which of the following situations is characteristic of a make-to-stock environment?
- A . Work in process (WIP) represents the largest cost of inventory.
- B . The impact of technology on the production process will be large.
- C . The master schedule is stated at the finished product level.
- D . Customer involvement is typically very high.
Which of the following factors is most likely to affect the demand for a company’s services or products?
- A . The sales and operations plan
- B . Demand forecasting
- C . Resource availability
- D . Economic conditions
Which of the following describes a competitive characteristic that a firm must exhibit to be considered as a supplier in a market?
- A . Marketing research
- B . Manufacturing automation
- C . Order qualifier
- D . Order winner
The question below is based on the following information:
What is the forecast for period 34 if a simple three-period moving average is used?
- A . 312
- B . 313
- C . 318
- D . 325
Which of the following statements is true regarding the concept of independent demand?
- A . These items are usually raw materials.
- B . The requirements for these items are usually forecasted.
- C . The demand for these items must be calculated.
- D . The demand for these items is related to demand for other items.
Which of the following factors most likely will impact the demand for a firm’s products or services?
- A . Forecast accuracy
- B . Order processing system
- C . Competition
- D . Planning horizon
The contribution made by an operation to the final usefulness of a product is known as:
- A . the customer service level.
- B . value-added.
- C . the cost of quality.
- D . an order winner.
Characteristics that cause customers to consider a company’s products or services are called:
- A . order qualifiers.
- B . order winners.
- C . product configurations.
- D . product specifications.
When demand is uncertain, what is the most appropriate action to take?
- A . Recalculate safety stock
- B . Increase order quantity
- C . Change method of transportation
- D . Increase number of warehouses for distribution
An order winner is a competitive characteristic that:
- A . is universal between customers and markets.
- B . differentiates among potential customers.
- C . a company must exhibit to be considered a potential supplier.
- D . a company must exhibit to gain new sales.
Service parts needs are most often determined by:
- A . bills of material explosion.
- B . forecasts based on prior demand.
- C . material requirements planning (MRP) logic calculations.
- D . analysis of lead-time requirements.
Which of the following functional areas decides the product to be supplied and the customers to be served?
- A . Engineering
- B . Finance
- C . Manufacturing
- D . Marketing
Which of the following items is a source of independent demand?
- A . Customer orders for finished products
- B . Subassembly requirements from material requirements planning
- C . Raw material requirements from material requirements planning
- D . Protective packaging for shipping customer orders
Which of the following calculations is a major component that is used with extrinsic forecasting?
- A . Moving average
- B . Exponential smoothing
- C . A seasonal index
- D . An economic indicator
The question below is based on the following information:
What is the mean absolute deviation of demand for the data?
- A . 1
- B . 3
- C . 5
- D . 101
Which of the following forecasting techniques reviews a company’s sales history?
- A . Qualitative
- B . Delphi
- C . Extrinsic
- D . Intrinsic
Which of the following forecasting techniques eliminates the need to keep months of historical data?
- A . Exponential smoothing
- B . Seasonal index
- C . Delphi
- D . Trend
A 5-year decline in demand for diapers most closely represents which of the following types of forecast patterns?
- A . Irregular
- B . Cyclic
- C . Trend
- D . Seasonal
Which of the following smoothing constants places the most weight on the old forecast?
- A . 0.4
- B . 0.3
- C . 0.2
- D . 0.1
Which demand management activity includes processing a customer request and making material available for production or shipping?
- A . Forecasting
- B . Order processing
- C . Providing available-to-promise dates
- D . Communicating with the marketplace
Which of the following forecast inputs is considered to be intrinsic data?
- A . Demographic
- B . Econometric
- C . Historical sales
- D . Market survey
A primary purpose of Quality Function Deployment is to:
- A . calculate performance limits.
- B . determine marketing strategies.
- C . direct product design.
- D . set pass/fail criteria.
A distributor provides customer service by improving which of the following market driven factors?
- A . Availability
- B . Design
- C . Shelf life
- D . Quality
Which of the following situations requires the largest amount of safety stock based on demand variability and replenishment lead time?
- A . Low variability, short replenishment lead time.
- B . Low variability, long replenishment lead time.
- C . High variability, short replenishment lead time.
- D . High variability, long replenishment lead time.