Managing Operations Across The Supply Chain 2nd Edition Swink Test Bank

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Chapter 08
Lean Systems
Multiple Choice Questions
1. In the lean systems approach, as a system improves, it should have ____________ inventory
on hand.
A. More
B. The same amount of
C. Less
D. Twice the amount of
2. As lean systems thinking is implemented, the amount of training that employees receive:
A. Tends to be about the same as with other manufacturing philosophies.
B. Tends to increase.
C. Tends to be reduced dramatically, replaced instead by continuous improvement.
D. Is focused exclusively on statistical process control.
8-1
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3. When lean systems are implemented:
A. Variable costs tend to increase, while fixed costs tend to decrease.
B. Fixed costs tend to increase, while variable costs tend to decrease.
C. Fixed and variable costs both tend to decrease.
D. Contribution margin tends to decrease.
4. In a lean system, waste is any action that
A. Costs money.
B. Could be done by an outside supplier.
C. Does not generate value.
D. Must be performed manually.
5. John Jones is a plant manager. He believes his plant is guilty of "waste of overproduction."
Which of the following symptoms might he have observed that led to this belief?
A. Idle equipment.
B. Excess inventory.
C. High customer returns of products.
D. All of these.
8-2
6. We observe a man working on a setup. During the process of setting up, the man positions
the die at a first position. He then runs through a few pieces to check whether or not they are
acceptable. He then repositions the die and repeats the process. What we have observed is
which of the following forms of waste?
A. Processing waste
B. Waste from product defects
C. Inventory waste
D. Waste of motion
7. Most of the tools and techniques used in lean systems seek to:
A. Reduce variability from the system.
B. Reduce the operator's discretion.
C. Improve product quality.
D. None of these.
8. Achieving the goal of producing at the output rate which matches the rate of customer
demand is the goal of:
A. Jidoka.
B. Poka-yoke.
C. Total productive maintenance.
D. Takt time flow balancing.
8-3
9. A production kanban authorizes a worker to:
A. Add an empty bin.
B. Withdraw a standard lot of a specific item.
C. Withdraw any item he feels is needed.
D. Replenish an empty bin.
10. Zanadu Corp. produces several different colors of a product on a single production line. It
used to take several hours to switch colors, but now Zanadu has found a way to prepare for
changing colors in a few minutes. This was most likely accomplished by:
A. TAKT time flow balancing.
B. Implementing andon lights.
C. Converting internal to external setups.
D. Converting external to internal setups.
11. In our accounting department one of the actions taken by a clerk has been to identify the
most frequently used forms and to put them in an area where they can be easily accessed.
The other less frequently used forms have been tagged and put in their own separate area.
This action likely occurred from the use of which lean tool?
A. A 5-S program
B. Kanban scheduling
C. Jidoka
D. Poka-yoke
8-4
12. A standard electrical plug fits into an outlet in only one way because one of the two prongs is
larger than the other. This ensures that people will insert the plug properly to create a
grounded circuit. This is an example of:
A. Cause-and-effect analysis.
B. Kanban.
C. Poka-yoke.
D. A benefit of Pareto analysis.
13. Lean systems applications have found the most acceptance and adoption in:
A. Service firms.
B. Entire supply chains.
C. Design activities.
D. Manufacturing firms.
14. Applying lean systems to supply chain relationships has which of the following risks?
A. It encourages companies to buy at the lowest unit price.
B. It encourages firms in the supply chain to hold extra inventory to protect themselves from
failure.
C. It makes the supply chain more vulnerable to performance breakdowns.
D. All of these.
8-5
15. Johnson Corp. has so strongly embraced the lean philosophy that it wants to apply the
approach to all processes in the organization. Doing this may actually have the most severe
negative impact on:
A. Radical product innovation.
B. Incremental product innovation.
C. TAKT time.
D. All of these.
16. Which of the following two areas does lean/just-in-time production focus its attention on?
I. Cost
II. Quality
III. Variance
IV. Waste
A. I and III
B. II and IV
C. I and II
D. III and IV
17. Unnecessary automation is an example of which of the following forms of waste?
A. Overproduction
B. Process
C. Motion
D. Rework
8-6
18. Which of the following most accurately describes the role of quality in a lean/just-in-time
manufacturing environment?
A. High quality is an important waste reduction tool. Reducing defects reduces wasted
material and capacity, and reduces the need for safety stocks.
B. Quality has little to do with JIT. JIT is primarily a scheduling and inventory control tool.
C. The important thing is to screen the defects out of incoming components and raw
materials. If this is done, the production process can carry on without much concern for
quality.
D. Because everything is being done just in time, there is no time to worry about quality
during the production process. Instead, we rely on screening out defects during finished
goods inspection.
19. Which of the following would you NOT expect to find in a company attempting to implement
lean/just-in-time production?
A. Emphasis on flexible, cross-trained workers
B. Inspections after each piece is produced
C. Frequent changeovers from one product to another
D. Emphasis on preventive maintenance for equipment
20. McGreen Burger Shop sells about two burgers per minute. Although the cook can cook up to
10 burgers per minute, he starts to cook another burger only after the salesperson removes a
burger from the ramp. The ramp is large enough to hold only five burgers and keep them
warm until a sale is made. This is an example of a:
A. Pull system.
B. Push system.
C. Group technology.
D. Poka-yoke.
8-7
21. The purpose of the kanban card is to:
A. Be a signal from the user authorizing the maker to start producing the required parts.
B. Keep track of defective products.
C. Inform the maker of the exact specification of the required parts.
D. Keep track of the total labor hours spent on a finished product.
22. Tools at the point of use is an example of which of the following elements of the 5-S
program?
A. Seiri/Sort/Clear out
B. Seiton/Straighten/Configure
C. Seiso/Scrub/Clean and check
D. Seiketsu/Systematize/Confirm
23. Which of the following are NOT associated with quality at the source?
A. Total productive maintenance
B. Jidoka
C. Stop-and-fix systems
D. Andons (trouble lights)
8-8
24. C-TPAT or Customs-Trade Partnership Against Terrorism is a program designed to manage
the flow of orders across borders. It is an example of which of the following risks for lean
supply chains?
A. Operational/technological
B. Social
C. Economy/competition
D. Legal/political
25. Which of the following is NOT one of the product/process design principles associated with
lean/just-in-time production?
A. Encourage use of unique components.
B. Design products with as few parts as possible.
C. Design products that are easy to assemble.
D. Use flexible processes and cross-trained workers as much as possible.
26. Taichi Ohno, the founder of lean/just-in-time, when he came to America in the 1950s was
most impressed with which of the following American developments?
A. The assembly line
B. Ford's River Rouge assembly plant
C. The productivity of American workers
D. The American supermarket
8-9
27. Which of the following lean principles best communicates the notion of demand
synchronization?
A. Produce only the products that the customer wants.
B. Build with perfect quality.
C. Build only as quickly as customers want them.
D. Build only with features that the customers want and no others.
28. Which of the following is an important belief found in lean cultures?
A. Inventory is to be reduced.
B. Cost must be reduced.
C. Management must be done through the use of appropriate tools and procedures.
D. Waste is a symptom.
29. We have a situation where we have many different processes; high quantities are required to
deliver the product's value both on the factory floor and in the customer's use. Which of the
following categories of waste in product design have we encountered in this situation?
A. Complexity
B. Precision
C. Danger
D. Sensitivity
8-10
30. In which operational setting has lean/just-in-time experienced the lowest levels of
acceptance/implementation?
A. Manufacturing
B. Services
C. Across the supply chain
D. Turbulent business settings
8-11
Chapter 08 Lean Systems Answer Key
Multiple Choice Questions
1. In the lean systems approach, as a system improves, it should have ____________ inventory
on hand.
A. More
B. The same amount of
C. Less
D. Twice the amount of
One of the prime reasons for the lean approach is to reduce inventory.
AACSB: Reflective Thinking

Blooms: Remember
Learning Objective: 08-01 Explain how the lean system approach improves value for internal operations and across the
supply chain.
Level of Difficulty: 1 Easy
Topic Area: Lean Systems Defined
8-12
2. As lean systems thinking is implemented, the amount of training that employees receive:
A. Tends to be about the same as with other manufacturing philosophies.
B. Tends to increase.
C. Tends to be reduced dramatically, replaced instead by continuous improvement.
D. Is focused exclusively on statistical process control.
Lean systems rely on well-trained workers for implementation. (See Table 8-1.)

Blooms: Remember
supply chain.
3. When lean systems are implemented:
A. Variable costs tend to increase, while fixed costs tend to decrease.
B. Fixed costs tend to increase, while variable costs tend to decrease.
C. Fixed and variable costs both tend to decrease.
D. Contribution margin tends to decrease.
A benefit of lean systems is that both fixed and variable costs tend to decrease.

Blooms: Remember
supply chain.
Level of Difficulty: 2 Medium
8-13
4. In a lean system, waste is any action that
A. Costs money.
B. Could be done by an outside supplier.
C. Does not generate value.
D. Must be performed manually.
Because the purpose is to create value for the customer, waste is any action that does not
generate value.

Blooms: Understand
supply chain.
5. John Jones is a plant manager. He believes his plant is guilty of "waste of overproduction."
Which of the following symptoms might he have observed that led to this belief?
A. Idle equipment.
B. Excess inventory.
C. High customer returns of products.
D. All of these.
Excess inventory is one of the symptoms of waste of overproduction. The other items are
indicators of other types of waste.

Blooms: Apply
supply chain.
8-14
6. We observe a man working on a setup. During the process of setting up, the man positions
the die at a first position. He then runs through a few pieces to check whether or not they
are acceptable. He then repositions the die and repeats the process. What we have
observed is which of the following forms of waste?
A. Processing waste
B. Waste from product defects
C. Inventory waste
D. Waste of motion
Sorting, testing, and inspection are symptoms of processing waste.

Blooms: Apply
supply chain.
8-15
7. Most of the tools and techniques used in lean systems seek to:
A. Reduce variability from the system.
B. Reduce the operator's discretion.
C. Improve product quality.
D. None of these.
Standardization, reduction of variability, is fundamental to improvement. Most tools in lean

seek this objective. Workers are empowered to do this. The focus is on value, not just
product quality.

Blooms: Understand
Learning Objective: 08-02 Describe the cultural changes; tools; and techniques needed to implement a lean approach.
Topic Area: Implementing Lean Systems: Tools and Techniques
8. Achieving the goal of producing at the output rate which matches the rate of customer
demand is the goal of:
A. Jidoka.
B. Poka-yoke.
C. Total productive maintenance.
D. Takt time flow balancing.
This is the definition of Takt time flow balancing.

Blooms: Remember
8-16
9. A production kanban authorizes a worker to:
A. Add an empty bin.
B. Withdraw a standard lot of a specific item.
C. Withdraw any item he feels is needed.
D. Replenish an empty bin.
This is the definition of a production kanban.

Blooms: Remember
10. Zanadu Corp. produces several different colors of a product on a single production line. It
used to take several hours to switch colors, but now Zanadu has found a way to prepare
for changing colors in a few minutes. This was most likely accomplished by:
A. TAKT time flow balancing.
B. Implementing andon lights.
C. Converting internal to external setups.
D. Converting external to internal setups.
A key step in faster changeover is converting internal to external setups.

Blooms: Apply
8-17
11. In our accounting department one of the actions taken by a clerk has been to identify the
most frequently used forms and to put them in an area where they can be easily accessed.
The other less frequently used forms have been tagged and put in their own separate
area. This action likely occurred from the use of which lean tool?
A. A 5-S program
B. Kanban scheduling
C. Jidoka
D. Poka-yoke
The example suggests that the clerk sorted and straightened the various forms, which is
part of a 5-S program.

Blooms: Apply
12. A standard electrical plug fits into an outlet in only one way because one of the two prongs
is larger than the other. This ensures that people will insert the plug properly to create a
grounded circuit. This is an example of:
A. Cause-and-effect analysis.
B. Kanban.
C. Poka-yoke.
D. A benefit of Pareto analysis.
Poka-yoke refers to design that reduces potential errors, which the electrical plug design
accomplishes.
8-18
Blooms: Apply
Learning Objective: 08-03 Apply the concept of lean systems to product design.
13. Lean systems applications have found the most acceptance and adoption in:
A. Service firms.
B. Entire supply chains.
C. Design activities.
D. Manufacturing firms.
While lean systems have been employed in all of these environments, most application
has occurred in manufacturing.

Blooms: Remember
Learning Objective: 08-04 Recognize the strengths and limitations of lean systems.
Topic Area: Lean Systems: Range of Application
14. Applying lean systems to supply chain relationships has which of the following risks?
A. It encourages companies to buy at the lowest unit price.
B. It encourages firms in the supply chain to hold extra inventory to protect themselves
from failure.
C. It makes the supply chain more vulnerable to performance breakdowns.
D. All of these.
Lean systems eliminate buffers, therefore the supply chain becomes more vulnerable to
potential performance problems.
8-19
Blooms: Understand
15. Johnson Corp. has so strongly embraced the lean philosophy that it wants to apply the
approach to all processes in the organization. Doing this may actually have the most
severe negative impact on:
A. Radical product innovation.
B. Incremental product innovation.
C. TAKT time.
D. All of these.
Lean systems thinking tries to eliminate slack and complexity, which may be needed in
radical product innovation.

Blooms: Apply
8-20
16. Which of the following two areas does lean/just-in-time production focus its attention on?
I. Cost
II. Quality
III. Variance
IV. Waste
A. I and III
B. II and IV
C. I and II
D. III and IV
This question gets the student to understand, as pointed out in the text, that the key focal
points for lean are variance and waste. This issue is pointed out extensively in the text.

Blooms: Apply
supply chain.
17. Unnecessary automation is an example of which of the following forms of waste?
A. Overproduction
B. Process
C. Motion
D. Rework
Discussed in Table 8-2.

Blooms: Apply
8-21
supply chain.
Topic Area: Lean Systems Objectives, Culture, and Guiding Principles
18. Which of the following most accurately describes the role of quality in a lean/just-in-time
manufacturing environment?
A. High quality is an important waste reduction tool. Reducing defects reduces wasted
material and capacity, and reduces the need for safety stocks.
B. Quality has little to do with JIT. JIT is primarily a scheduling and inventory control tool.
C. The important thing is to screen the defects out of incoming components and raw
materials. If this is done, the production process can carry on without much concern for
quality.
D. Because everything is being done just in time, there is no time to worry about quality
during the production process. Instead, we rely on screening out defects during
finished goods inspection.
Quality is essentially as pointed out in this section to ensure that there is less waste and
variance.

Blooms: Apply
8-22
19. Which of the following would you NOT expect to find in a company attempting to
implement lean/just-in-time production?
A. Emphasis on flexible, cross-trained workers
B. Inspections after each piece is produced
C. Frequent changeovers from one product to another
D. Emphasis on preventive maintenance for equipment
B violates the guiding principles of building only the products the customers want
(objective 1), only as quickly as the customers want them (objective 2), and with the
minimum possible lead times (objective 5).

Blooms: Apply
supply chain.
8-23
20. McGreen Burger Shop sells about two burgers per minute. Although the cook can cook up
to 10 burgers per minute, he starts to cook another burger only after the salesperson
removes a burger from the ramp. The ramp is large enough to hold only five burgers and
keep them warm until a sale is made. This is an example of a:
A. Pull system.
B. Push system.
C. Group technology.
D. Poka-yoke.
This describes a pull system (as in the case of a kanban)—the other options are not
appropriate.

Blooms: Apply
21. The purpose of the kanban card is to:
A. Be a signal from the user authorizing the maker to start producing the required parts.
B. Keep track of defective products.
C. Inform the maker of the exact specification of the required parts.
D. Keep track of the total labor hours spent on a finished product.
This is specifically described in the discussion of kanban systems.

Blooms: Apply
8-24
22. Tools at the point of use is an example of which of the following elements of the 5-S
program?
A. Seiri/Sort/Clear out
B. Seiton/Straighten/Configure
C. Seiso/Scrub/Clean and check
D. Seiketsu/Systematize/Confirm
This is specifically described in the discussion of the 5-S program and in the associated
table (8-4).

Blooms: Apply
23. Which of the following are NOT associated with quality at the source?
A. Total productive maintenance
B. Jidoka
C. Stop-and-fix systems
D. Andons (trouble lights)
The tools associated with quality at the source are discussed beginning on page 292 total
productive maintenance is not one of these tools.

Blooms: Apply
8-25
24. C-TPAT or Customs-Trade Partnership Against Terrorism is a program designed to
manage the flow of orders across borders. It is an example of which of the following risks
for lean supply chains?
A. Operational/technological
B. Social
C. Economy/competition
D. Legal/political
The answer to this question can be found in Table 8-6, as part of the discussion of
legal/political.

Blooms: Apply
25. Which of the following is NOT one of the product/process design principles associated
with lean/just-in-time production?
A. Encourage use of unique components.
B. Design products with as few parts as possible.
C. Design products that are easy to assemble.
D. Use flexible processes and cross-trained workers as much as possible.
All of the options except the first result in simplification; A contributes to complications,
and complications affect variance and waste.

Blooms: Apply
8-26
supply chain.
26. Taichi Ohno, the founder of lean/just-in-time, when he came to America in the 1950s was
most impressed with which of the following American developments?
A. The assembly line
B. Ford's River Rouge assembly plant
C. The productivity of American workers
D. The American supermarket
In the discussion of the origins of JIT, it is pointed out that Ohno was most impressed with
the American supermarket. Why? Because he was impressed by the fact that a
supermarket was where the customer could get (1) what was needed, (2) at the time
needed, and, (3) in the quantity needed.

Blooms: Apply
supply chain.
8-27
27. Which of the following lean principles best communicates the notion of demand
synchronization?
A. Produce only the products that the customer wants.
B. Build with perfect quality.
C. Build only as quickly as customers want them.
D. Build only with features that the customers want and no others.
Demand synchronization focuses on matching supply and demand, and that objective is
best described by C.

Blooms: Apply
supply chain.
28. Which of the following is an important belief found in lean cultures?
A. Inventory is to be reduced.
B. Cost must be reduced.
C. Management must be done through the use of appropriate tools and procedures.
D. Waste is a symptom.
As discussed in the section dealing with lean culture, the only belief that is central to the
lean culture is the notion that waste is a symptom. Consequently, it should not be
attacked directly. Rather, it should be studied to identify the underlying root causes, and
management should then attack these root causes.

Blooms: Apply
8-28
supply chain.
29. We have a situation where we have many different processes; high quantities are required
to deliver the product's value both on the factory floor and in the customer's use. Which of
the following categories of waste in product design have we encountered in this
situation?
A. Complexity
B. Precision
C. Danger
D. Sensitivity
This is a straight definition-based question. The description provided directly corresponds

to the definition of complexity as provided in Table 8-7.

Blooms: Apply
Topic Area: Applying Lean Systems Range of Application
8-29
30. In which operational setting has lean/just-in-time experienced the lowest levels of
acceptance/implementation?
A. Manufacturing
B. Services
C. Across the supply chain
D. Turbulent business settings
The answer to this question can be found in Table 8-5.

Blooms: Apply
8-30

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Multiple Choice Questions

B. The same amount of

D. Twice the amount of

A. Tends to be about the same as with other manufacturing philosophies.

C. Tends to be reduced dramatically, replaced instead by continuous improvement.

D. Is focused exclusively on statistical process control.

A. Variable costs tend to increase, while fixed costs tend to decrease.

B. Fixed costs tend to increase, while variable costs tend to decrease.

C. Fixed and variable costs both tend to decrease.

D. Contribution margin tends to decrease.

4. In a lean system, waste is any action that

B. Could be done by an outside supplier.

C. Does not generate value.

D. Must be performed manually.

C. High customer returns of products.

B. Waste from product defects

A. Reduce variability from the system.

B. Reduce the operator's discretion.

C. Improve product quality.

C. Total productive maintenance.

D. Takt time flow balancing.

A. Add an empty bin.

B. Withdraw a standard lot of a specific item.

C. Withdraw any item he feels is needed.

D. Replenish an empty bin.

A. TAKT time flow balancing.

B. Implementing andon lights.

C. Converting internal to external setups.

D. Converting external to internal setups.

D. A benefit of Pareto analysis.

B. Entire supply chains.

A. It encourages companies to buy at the lowest unit price.

C. It makes the supply chain more vulnerable to performance breakdowns.

A. Radical product innovation.

B. Incremental product innovation.

17. Unnecessary automation is an example of which of the following forms of waste?

A. Emphasis on flexible, cross-trained workers

B. Inspections after each piece is produced

C. Frequent changeovers from one product to another

D. Emphasis on preventive maintenance for equipment

B. Keep track of defective products.

C. Inform the maker of the exact specification of the required parts.

D. Keep track of the total labor hours spent on a finished product.

C. Seiso/Scrub/Clean and check

A. Total productive maintenance

D. Andons (trouble lights)

A. Encourage use of unique components.

B. Design products with as few parts as possible.

C. Design products that are easy to assemble.

D. Use flexible processes and cross-trained workers as much as possible.

A. The assembly line

B. Ford's River Rouge assembly plant

C. The productivity of American workers

D. The American supermarket

A. Produce only the products that the customer wants.

B. Build with perfect quality.

C. Build only as quickly as customers want them.

28. Which of the following is an important belief found in lean cultures?

B. Cost must be reduced.

C. Across the supply chain