MGMT 3430 Exam III Review Material
You should fare well on the exam IF you follow several simple
guidelines:
1), read and understand all of the chapters assigned;
2), understand all of the learning objectives summarized at the
end of each chapter;
3), understand the questions sent as review material (below);
4), understand the principles discussed in class.
Remember, memorizing and understanding are two different
things. The type of questions that appear on the test require
understanding and synthesis of information not recitation by
rote.
LESSON OBJECTIVES
Shop floor control Chapter 15
1.Explain what transfer lots are and their
relationship to process batch size.
2.Describe the difference between a job’s planned
lead time and its flow time.
3.Demonstrate two methods of estimating planned
lead times.
4.Describe the negative effects of high levels of
work-in-process inventories.
5.Demonstrate the application of the SPT, EDD,
critical ratio
6.Describe the measures of shop performance that
are best served by SPT and EDD scheduling rules.
7.Describe and demonstrate the application of
Johnson’s rule and identify situations to which it is
applicable.
8.Construct Gantt charts to illustrate sequencing a
set of jobs.
Just-in-time production Chapter 16
1.Describe the complete cash flow cycle for a
typical customer-ordered product and explain its relevance to
operations.
2.Describe the relationship of material flows,
work-in-process inventory, and cycle times in a manufacturing
environment.
3.Explain the role of set-up time reduction in
achieving production flexibility and responsiveness.
4.Describe the organizational requirements for JIT
implementation.
5.Compare traditional push production systems with
the pull systems associated with JIT production.
6.Depict and describe the use of kanbans as
signaling devices in organizations.
THE EXAM
The exam will consist of multiple choice questions.
SAMPLE QUESTIONS
These are only sample questions. You may want to also examine
the discussion questions at the end of each chapter. There is no
guarantee that any of these questions will be included on the
exam. The questions are merely indicative of the TYPE of
question that will be on the exam. Furthermore, studying ONLY
these questions IS NOT sufficient preparation for the exam.
1. For leading companies, ______ has become the most
powerful source of competitive advantage.
a. technology
b. TQM
c. a strategic alliance
d. time
e. distribution
2. ______ is a major motivation of JIT production
systems.
a. Reduction in the number of
employees
b. Economies of scale in batch
production
c. Reduction of all unnecessary
inventory
d. Elimination of all sources of
value added
e. Both a and c are true
3. Which of the following would be a benefit of JIT
production?
a. decreased productivity of
direct labor employees
b. increased productivity of top
management
c. increased work-in-process
d. decreased utilization of
equipment
e. producing defect-free products
4. Which of the following is NOT a part of JIT
philosophy?
a. defect-free quality
b. involvement and commitment of
people
c. coordination of production
schedules
d. reduce demand until the ideal
EOQ is one
e. all of the above are parts of
JIT philosophy
5. Which of the following statements regarding
materials and inventory management in JIT is TRUE?
a. Organizations that use
just-in-time production methods prefer small lot sizes.
b. Large set-up costs are
acceptable because they encourage large, cost-effective
production lots.
c. Purchasing agreements are
relatively short-term.
d. Just-in-Time's pursuit of
small lot sizes forces organizations to give up the quantity
discounts that accompany large lot sizes.
e. None of the above is true.
6. Which of the following statements regarding
materials and inventory management in JIT is FALSE?
a. Set-up times should be reduced
as much as possible in order to realize the most benefit from
JIT.
b. Small lot sizes are preferred
by organizations that use just-in-time production methods.
c. Purchasing agreements are
relatively short-term when just-in-time methods are adopted.
d. In JIT, the customer may
purchase in large discounted lots and receive frequent small lot
deliveries.
e. None of the above is false.
7. ______ refers to the signal to authorize the
production of material.
a. Push production system
b. Pull production system
c. kanban
d. kaizen
e. Ishikawa signal
8. If you want to reduce the economic lot size Q, what
is the only viable alternative?
a. reduce demand
b. increase carrying cost
c. reduce carrying cost
d. reduce setup cost
e. increase production rate
9. Which of the following situations can lead to
increased WIP?
a. short machine setup times
b. small lot sizes
c. quality products
d. frequent product rework
e. all of the above
10. At the Widget Corp., material is processed and
moved to the next station, even if the next station doesn't have
the capacity to process it. Widget Corp. is most likely
using a ______ production system.
a. push
b. pull
c. query
d. FIFO
e. LIFO
11. Which of the following statements about inventories
is TRUE?
a. Companies frequently have too
much of the "wrong" stuff and too little of the
"right" stuff.
b. Companies should use inventory
as insurance against variability.
c. Companies should use
short-cycle times and improved processes as insurance against
variablitity.
d. all of the above
e. only a and c are true
12. JIT
a. exists primarily to reduce
inventories.
b. cannot be applied to MTS
companies.
c. is a series of steps to
follow.
d. all of the above
e. none of the above
13. Including processing time and delays, the estimated
time that it will take to complete an order is
a. actual flowtime.
b. flowtime or cycle time.
c. planned lead time.
d. completion date.
e. none of the above.
14. ______ is the estimated time required at an
operation.
a. Flowtime or cycle time
b. Actual flowtime
c. Value added time
d. Total processing time
e. Operation processing time
15. Sequencing by the earliest due date (EDD) rule will
a. minimize the average flowtime.
b. minimize maximum lateness.
c. minimize the average lateness.
d. minimize the critical ratio.
e. none of the above.
16. The authors describe various shop floor management
methods of eliminating or reducing non-value adding activities,
including which of the following?
a. reduce setup time
b. reduce queue time
c. reduce material handling
d. use of sole source procurement
e. all but d are valid methods
17. In shop floor management, which of the following
items are ordinarily non-value adding activities?
a. queue time
b. moving
c. wait
d. setup time
e. all of the above
18. Which of the following dispatching rules ordinarily
tends to give the best results when the criterion is fewest
number of jobs waiting in line?
a. latest due date
b. critical ratio
c. shortest processing time
d. first come, first serve
e. slack time remaining
19. Which of the following is a disadvantage with the
Shortest Processing Time rule?
a. It minimizes average flowtime,
but not the average number of jobs in the system.
b. It may be unsuitable when
customers are present in the job queue.
c. It generates worse average
lateness than use of Slack Time Remaining.
d. Long processing time jobs may
tend to stay in the system.
e. Both b and d are true.
20. When top priority goes to the job that must be
delivered soonest to the customer, the ______ dispatching rule
is being used.
a. shortest processing time
b. first come, first serve rule
c. slack time remaining
d. critical ratio
e. earliest due date
21. ______ is a shop floor dispatching rule that
sequences jobs without considering the amount of work left to be
completed.
a. Slack time remaining
b. Earliest due date
c. First come first serve
d. Critical ratio
e. both b and c ignore remaining
work
22. Which of the following statements is FALSE?
a. Setup reduction leads,
ultimately, to decreased production lead time.
b. Setups are reduced as a result
of reducing lot sizes.
c. When inventories are reduced,
the use of tools such as preventive maintenance and SPC must be
increased.
d. The benefits of small-lot
production can be realized in a push mode of production.
23. Management experts have long recognized that the
existence of significant amounts of WIP:
a. slows down service
b. improves the ability to
forecast
c. makes operators nervous and
fearful about job security
d. reduces the need for
expeditors and dispatchers
