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    Sample Questions on BASICS OF Supply Chain Management

    Question #: 1

    The inventory turns ratio measures:

    A) The amount of inventory needed to support sales growth.B) Obsolete inventory as a percent of sales.

    C) How effectively inventory is being used.) The amount of space needed to store inventory.

    Correct Answer is: C!nventory turns ratio measures how effectively inventories are being used. !t is calculated bydividing annual cost of goods sold by average inventory in dollars. "!ntroduction to #aterials#anagement$ Chapter %).

    Question #: 2

    &rocess specifications can be best defined as a document which:

    A) 'hows how the product will appear.B) 'hows the steps needed to produce the end item.C) etails the capacity available at a wor( center.) low*charts various processes.

    Correct Answer is: B&rocess specifications describe the steps needed to ma(e an end product. *They+re usuallyprinted on a routing sheet or (ept in the database for online access. "!ntroduction to#aterials #anagement$ Chapter %)

    Question #: 3

    A bill of materials contains:

    !. Components used to ma(e a product.!!. ,abor needed to build the product.

    !!!. Assemblies at various stages of production.!-. 'afety stoc( by item.

    A) ! and !!.B) ! and !!!.C) !! and !!!.) !!! and !-.

    Correct Answer is: BA bill of materials contains all the components used in the manufacture of end items. !naddition$ the subassemblies at various stages of manufacture are described. ,abor is definedin the touting generally in standard hours and safety stoc( is not generally maintained on thebill of materials. "!ntroduction to #aterials #anagement$ Chapter %)

    Question #: 4

    hich of the following activities is not part of physical supply/distribution0

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    A) TransportationB) arehousingC) Order 1ntry) Capacity &lanning

    Correct Answer is: Capacity planning is considered part of the manufacturing process. "!ntroduction to #ateria

    #anagement$ Chapter %)

    Question #: 5

    Allof the following are part of physical supply/distribution e2cept:

    A) 'upplier inventory.B) #aterial handling.C) Order entry.) inished goods inventory.

    Correct Answer is: A&hysical supply/distribution is involved with the movement of goods from the supplier to thebeginning of production$ and from the end of production to the final customers. "!ntroductionto #aterial #anagement$ Chapter %)

    Question #:

    A company3s strategic plan:

    A) &rovides the manufacturing plan for families of end items.

    B) Outlines the sales plan for the ne2t year.C) !s a statement of goals and ob4ectives for a long*range period.) Outlines new products for the ne2t year.

    Correct Answer is: Chile strategic plans do provide for manufacturing sales and new product plans$ they reallyprovide the overall direction for the company. The result is a statement of goals andob4ectives for 5*6 years and sometimes %7. "!ntroduction to #aterials #anagement$ Chapter 5)

    Question #: !

    &roduction plans have all the following e2cept:

    A) 'hipment plan.B) &roduct families.C) !nventory plan.) ee(ly production.

    Correct Answer is: &roduction plans are generally monthly statements of shipments$ production and inventory"or bac(log) bro(en down by product families$ not end items.

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    "!ntroduction to #aterials #anagement$ Chapter 5)

    Question #: "

    hich of the following statements is most correct0

    A) The #&' shows families of products.B) The #&' has more detail than the production plan.

    C) The production plan has more detail than the #&'.) The production plan rolls up to e8ual the #&'.

    Correct Answer is: BThe #&' has more detail than the production plan. The #&' should add up to e8ual theproduction plan families. "!ntroduction to #aterials #anagement$ Chapter 5.)

    Question #:

    A closed loop #9& system can be best defined as:

    A) Action ta(en by a planner to approve planned orders.B) 9e*planning of capacity to accommodate restraints.C) !ntegrated planning and control system with feedbac( from the bottom*up.) !ntegrated systems$ which include financial software$ finite capacity and logistics.

    Correct Answer is: CClosed loop #9& systems operate from the top down with feedbac( through the system. Thesefeedbac( mechanisms allow changes to occur in the top level planning. "!ntroduction to #aterials#anagement$ Chapter 5)

    Question #: 1$

    ou are wor(ing as a #aster 'cheduler$ in a discrete manufacturing company. A largecustomer has as(ed if you can deliver an order$ but you have some short term capacityconstraints. hich of the following actions could be ta(en so the order can be delivered0

    !. &eople could be hired.!!. Overtime could be wor(ed.

    !!!. !nventory could be built in slow times.!-. or( could be subcontracted.

    A) !$ !! and !!!.

    B) !!$ !!! and !-.C) !$ !!! and !-.) !$ !! and !-.

    Correct Answer is: B'hort*term capacity can be increased by overtime inventory or subcontract. Often hiring8ualified people ta(es much longer than the other three options."!ntroduction to #aterials#anagement$ Chapter 5)

    Question #: 11

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    hich of the following are strategies to use in developing a production plan0

    !. Chase strategy!!. elphi strategy

    !!!. ,evel strategy!-. Bac(log strategy

    A) ! and !!.B) ! and !!!.C) !! and !-.) !!! and !-.

    Correct Answer is: BThe Chase strategy means production will vary with demand "inventory stays level). The,evel strategy establishes production at the average demand. luctuations in demand areabsorbed by inventory. Third strategy is subcontracting. &roduction is at the minimumdemand level. 'ubcontracting production absorbs variations in the demand level"!ntroduction to #aterials #anagement$ Chapter 5.)

    Question #: 12

    A Company needs to produce 6C) %77) %56

    Correct Answer is: CThe calculation would be as follows:

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    !. &roduction plan!!. orecasts for end items

    !!!. &roduct costs for end items!-. Capacity constraints

    A) !$ !! and !!!.B) !$ !! and !-.C) !!$ !!! and !-.

    ) !$ !!! and !-.

    Correct Answer is: BThe production plan$ forecasts and capacity constraints are all inputs to the #&'. hile costsare nice to have$ they are not a necessary input. "!ntroduction to #aterials #anagement$ Chapter;)

    Question #: 15

    hich of the following are ob4ectives when establishing the #&'0

    !. 1fficient use of resources!!. 1fficient final assembly!!!. High customer service levels!-. 1fficient use of inventory

    A) !$ !! and !!!.B) !$ !!! and !-.C) !!$ !!! and !-.) !$ !!! and !-.

    Correct Answer is: The master scheduler$ when developing the #&'$ must ma(e sure labor$ material$ e8uipment$

    and inventory is being used efficiently to maintain high levels of customer service. 1fficient finaassembly would be developed by a final assembly schedule. "!ntroduction to #aterials#anagement$ Chapter ;)

    Question #: 1

    9ough cut capacity planning can be best described as:

    A) Chec(ing to be certain critical resources are available to support the preliminary #&'.B) #a(ing sure warehouse space is available for raw materials.C) #a(ing certain the load at each wor( center is less than capacity.

    ) 1nsuring resources are available by product family.

    Correct Answer is: A9ough cut capacity planning is concerned with ma(ing certain critical resources areavailable at the preliminary #&' stage before committing to the schedule. Criticaresources are bottlenec( operations "not every wor( center)$ labor$ and materials$ whichmay be scarce or have long lead times. "!ntroduction to #aterials #anagement$ Chapter ;)

    Question #: 1!

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    hich of the following manufacturing environments would consumer products$ such as film$ foodetc. be classified0

    A) Assemble to orderB) 1ngineer to orderC) #a(e to order ) #a(e to stoc(

    Correct Answer is: Consumer products are generally considered ma(e to stoc(. There are a few standard itemsassembled from many components. The #&' is a schedule of finished end items. "!ntroductionto #aterials #anagement$ Chapter ;.)

    Question #: 1"

    #any different end items are made from a small number of components. hat manufacturingenvironment would this be0

    A) #a(e to stoc(B) #a(e to order C) Assemble to order) 1ngineer to order

    Correct Answer is: BThe correct answer is B).#a(e to order. Companies ma(e many end items from a small number of components. Theschedule is developed from actual customer orders. "!ntroduction to #aterials #anagementChapter ;.)

    Question #: 1

    inal Assembly scheduling usually occurs when:

    A) A customer order is received.B) &lanning a build schedule.C) The #&' is established.) Capacity is constrained.

    Correct Answer is: Ainal Assembly 'cheduling occurs only after the customer order is received. The A' is theactual build schedule to ensure the customers get what they want. @enerally$ A' occurswhen there are a variety of options for the customer to order. "!ntroduction to #aterials

    #anagement$ Chapter ;.)

    Question #: 2$

    The minimum*planning horion for the #&' should be:

    A. Twelve months in wee(ly amounts.B. 18ual to the longest cumulative lead*time.C. As long as it ta(es to ac8uire new capacity.. Twice the longest component lead*time.

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    Correct Answer is: BThe planning horion should be e8ual to the longest cumulative lead*time to purchasecomponents and manufacture. This allows visibility to plan. "!ntroduction to #aterials#anagement$ Chapter ;.)

    Question #: 21

    !n ma(e to stoc( re8uirements$ customer orders are satisfied from:

    A. Available capacityB. or( in process inventory*C. inished goods inventory.. 9aw material inventory.

    Correct Answer is: C#a(e to stoc( companies ship customer+s orders from finished goods. #a(e to order companiesship from available capacity. "!ntroduction to #aterials #anagement$ Chapter ;.)

    Question #: 22Available to promise can be best defined as:

    A) !nventory and planned production not already committed.B) Customer orders inside lead time$ which have been promised.C) !nventory not already committed.) Capacity$ which is not used and therefore is available.

    Correct Answer is: AAvailable to promise is the part of inventory and planned production$ which is available to bepromised to customers for delivery. Adding scheduled receipts to the beginning calculate

    inventory and subtracting actual orders scheduled before the ne2t scheduled receipt"!ntroduction to #aterials #anagement$ Chapter ;.)

    Question #: 23ee( % 5 ; < 6Customer Orders 7 ;7 57

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    !ndependent demand can be defined by all of the following e2cept:

    A) emand not related to demand from higher*level assemblies.B) orecasted demand.C) emand calculated based on present demand.) emand from customer orders.

    Correct Answer is: C

    emand calculated from present demand would be dependent demand. !ts demand isdependent upon a higher*level assembly. "!ntroduction to #aterial #anagement$ Chapter

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    Correct Answer is: Capacity planning is not an input to #9&. !n fact$ #9& assumes infinite capacity is available inits calculation. "!ntroduction to #aterials #anagement$ Chapter

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    A) Bills of material based on forecast demand.B) Bills of material for new products.C) Bills of material$ which represent average products.) Bills of material for e2pected usage.

    Correct Answer is: C&lanning bills is an artificial grouping of components established for planning purposes. Theyare used to simplify forecasting and scheduling. They are not build able products. "!ntroduction

    to #aterials #anagement$ Chapter

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    A) 'chedule receipts * available inventory to forecast.B) orecasts * scheduled receipts * customer+s orders.C) orecasts * customer orders and scheduled receipts.) @ross re8uirements * scheduled receipts available inventory.

    Correct Answer is: Fet re8uirements are calculated by gross re8uirements * scheduled receipts G availableinventory. "!ntroduction to #aterials #anagement$

    Chapter

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    e2ception message. "!ntroduction to #aterials #anagement$ Chapter

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    running the schedule. "!ntroduction to #aterials #anagement$ Chapter 6)

    Question #: 41hich of the following best describes a routing0

    A) The path materials follow from beginning to end.B) The path wor( follows from wor( center to wor( center as it is completed.C) The path information transactions follow to be completed.

    ) The critical ratio calculated to determine whether 4obs are on schedule.

    Question #: 42

    hich of the following will affect available capacity0

    !) &roduct specifications!!) &roduct mi2

    !!!) Juantity of customer order!-) or( pace

    A) !$ !!$ and !!!.B) !$ !!! and !-.C) !!$ !!! and !-.) !$ !! and !!!.

    Question #: 43

    'ometimes a common unit of measure is not available for use in measuring output. !n thesecases$ what measure would be used0

    A) #achine speed

    B) Fumber of assembliesC) 'tandard time) Acceptable 8uality parts

    Correct Answer is: C'tandard time measured as labor hours can be used as the common measure of output and wor(content. !t can be used for loading and scheduling. "!ntroduction to #aterials #anagementChapter 6)

    Question #: 44

    Available capacity can be determined two ways: measurement and calculation. hich of thefollowing methods determines measured capacity0

    A) Historical dataB) Available timeC) #achine utiliation) #achine efficiency

    Correct Answer is: A#easured capacity is based on historical data$ that is$ what the machine or operator has

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    produced in the past. "!ntroduction to #aterials #anagement$ Chapter 6)

    Question #: 45

    A wor( center has < machines operating days for E hours per day. hat is the availabletime0

    A) 5< hours

    B) ;5 hoursC) 7KB) >6KC) E7K) E6K

    Correct Answer is: CItiliation is e8ual to hours actually wor( divided by available hours. !n this e2ample$ there are

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    due date. All previous operations are scheduled bac( from the last operation. The benefit ofbac(ward scheduling is that it schedules bac( from the customer due date. However$because there is no slac( time$ on time delivery and service may suffer. "!ntroduction to#aterials #anagement$ Chapter .)

    Question #: 5

    hen the ne2t operation is allowed to begin before the entire lot is completed on the previous

    operation$ this is called:

    A) Operation splitting.B) Operation overlapping.C) or( center overlapping.) or( center splitting.

    Correct Answer is: BOperation overlapping allows the ne2t operation to begin even though the whole lot has notbeen completed through the previous operations. !t can be used to e2pedite an orderHowever$ sometimes costs are increased. "!ntroduction to #aterials #anagement$ Chapter.)

    Question #: $Bottlenec(s can be best defined as:

    A) or( stations where available capacity is greater than re8uired capacity.B) or( stations where measured capacity is greater than re8uired capacity.C) or( stations where re8uired capacity is greater than available capacity.) or( stations where the demonstrated capacity is greater than the measured capacity.

    Correct Answer is: CBottlenec(s occur when the re8uired capacity is greater than the available capacity. "!ntroduction

    to #aterials #anagement$ Chapter .)

    Question #: 1The total volume of production passing through a facility is defined as:

    A) Total output.B) inished goods production.C) ,oad.) Throughput

    Correct Answer is:

    Throughput is the total volume passing through a facility. Bottlenec(s control the throughputas production can only proceed as 8uic(ly as the slowest bottlenec(. "!ntroduction to #aterials#anagement$ Chapter ).

    Question #: 2All of the following are principles of bottlenec(s e2cept:

    A) Ising a non*bottlenec( %77K of the time does not produce %77K utiliation.B) The capacity of the production process depends on the capacity of the bottlenec(.

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    C) Time saved at the bottlenec( saves nothing.) Capacity and demand must be considered together.

    Correct Answer is: CTime saved at the bottlenec( is where capacity is saved because the entire productionprocess can only go as fast as the bottlenec(. "!ntroduction to #aterials #anagement$Chapter .)

    Question #: 3#anaging bottlenec(s is e2tremely important to the throughput of the production facility. All ofthe following should be done to manage bottlenec(s e2cept:

    A) Change the schedule fre8uently to meet customer promises.B) #aintain a time buffer before each bottlenec(.C) Control the feed rate of material to the bottlenec(.) !ncrease the bottlenec( capacity as much as possible.

    Correct Answer is: AThe schedule should be changed as a last resort to meet customer deliveries. However$fre8uent changes will in fact reduce capacity at the bottlenec(. "!ntroduction to #aterials#anagement$ Chapter .)

    Question #: 4A shop pac(et will contain all of the following e2cept:

    A) 1ngineering drawingsB) Bills of materialsC) 9oute sheets) Customer information

    Correct Answer is:

    hile the customer might be identified$ it is not necessary to contain the customerinformation in the sL pac(et. The other answers would generally be intruded. "!ntroductionto #aterials #anagement$ Chapter .)

    Question #: 5

    The input rate is controlled by:A) The material flow from suppliers.B) The tooling re8uirements.C) The release of orders to the shop.) The demand from customers.

    Correct Answer is: C9eleasing orders to the shop controls the input rate. !f orders are released faster than theycan be produced$ then 8ueue wor(*in*progress and lead times will increase. "!ntroduction to#aterials #anagement$ Chapter .)

    Question #: ou calculate the critical ratio$ which is .=6 for a particular order. The order is:

    A) Behind schedule.

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    B) Ahead of schedule.C) On schedule.) Critical ratio has nothing to do with order priority.

    Correct Answer is: AThe critical ratio measures the priority of an order to the other orders at a wor( center. !t iscalculated by:

    ue date * &resent date Actual time remaining,ead time remaining ,ead*time remaining

    "!ntroduction to #aterials #anagement$ Chapter .)Question #: !All of the following are ob4ectives of purchasing e2cept:

    A) Buy goods and services in the right 8uantity and 8uality.B) Buy goods and services at the lowest cost possible.C) #aintaining good supplier relations.) 'chedule the supplier+s plant so goods arrive on time.

    The correct answer is ).&urchasing ob4ectives are the three answers in A$B$ and C. !n addition$ purchasing must ma(esure the company receives the best possible service and prompt delivery by the supplier."!ntroduction to #aterials #anagement$ Chapter >.)

    Question #: "hich of the following are factors in selecting suppliers0

    !. Technical capability.!!. inancial reliability.

    !!!. ,ocation!-. 'ervice after the sale.

    A) !$ !! and !!!.B) !$ !!! and !-.C) !!$ !!! and !-.) %$ !!$ !!!$ and !-.

    Correct Answer is: All of the factors listed should be considered when trying to select a supplier. Other factorsinclude price$ credit terms and 8uality capabilities. "!ntroduction to #aterials #anagement$

    Chapter >.)

    Question #:

    The ability to negotiate price is dependent on the type of product. hich of the followingproducts could generally be negotiated0

    A) #aintenance$ repair and operating suppliesB) Copper$ cool$ wheat$ metalC) 'tandard electronic components

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    ) #ade to order motors1)

    Correct Answer is: @enerally made to order items$ which are made to specification from many sources$ can benegotiated.

    Question #: !$

    hich of the following best describes the advantage of a planner/buyer position0

    !. 'mooth flow of information between supplier and the factory.!!. !mproved coordination of factory re8uirements and the supplier.

    !!!. !mproved flow of materials through the factory.!-. Ability to match material re8uirements with supplier+s capability.

    A) !$ !! and !-.B) !$ !!! and !-.C) !!$ !!! and %&') !$ !! ar( !-*

    Correct Answer is: The planner/buyer concept improves coordination between the factory and supplier. Byeliminating the e2tra handoff between planner and buyer$ communication will improve. hilematerials will flow more smoothly into the facility$ the flow through the factory is dependenton many other factors. "!ntroduction to materials #anagement$ Chapter >.)

    Question #: !1!n most companies$ material purchases represent what percentage of the cost of the product0

    A) ;7KB) 67K

    C) >7K) =7K

    Correct Answer is: B!n most companies today$ material costs represent 673L ir higher of the cost of the product."!ntroduction to #aterials #anagement$ Chapter >.)

    Question #: !2hich of the following would be included in demand management0

    !. orecasted re8uirements

    !!. 'ervice parts re8uirements!!!. Branch warehouse re8uirements!-. !nterplant orders

    A) !$ !! and !!!.B) !!$ !!! and !-.C) !$ !!! and !-.) %$ !!$ !!!$ and !-.

    Correct Answer is:

    5%

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    All of the answers would be part of demand management$ plus order entry and order promising."!ntroduction to #aterials #anagement$ Chapter E.)

    Question #: !3

    The purpose of a strategic business plan is:

    A) To plan production by product family.

    B) To plan for business changes which ta(e a long time.C) To establish customer re8uirements over the long term.) To establish order promising strategies.

    Correct Answer is: B'trategic plans are used for long term planning "5*%7 years). They are used to allow timeto plan for changes$ which ta(e a long time to occur. These might include new plants ordistribution centers.

    "!ntroduction to #aterials #anagement$ Chapter E.)

    Question #: !4All of the following are principles of forecasting e2cept:

    A) orecasts are usually wrong.B) orecasts are more accurate for end items.C) orecasts should include an estimate of error.) orecasts are more accurate in the near term.

    Correct Answer is: Borecasts are more accurate for product families or group The reason is that aggregatenumbers tend to be more accurate then detailed numbers. 'o although the sales forecasterror may be very small in a company$ predicting the shipments of an end item will havemore error associated with it. "!ntroduction to #aterials #anagement$ Chapter E)

    Question #: !5

    hen historical data is available in a company to use in forecasting future demand$ thetechni8ue to use this data is:

    A) Jualitative forecasting techni8uesB) 12trinsic forecasting techni8uesC) !ntrinsic forecasting techni8ues) Causal forecasting techni8ues

    Correct Answer is: C!ntrinsic forecasting techni8ues use internal historical data to forecast future demand. !t is usedbased on an assumption that historical patterns can predict future patterns. "!ntroduction to#aterials #anagement$ Chapter E)

    Question #: !Aggregate inventory can be best defined as:

    A) The pro4ected on hand balance in #&'. B) The inventory levels resulting from the forecast.

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    C) The additional inventory needed to cover pro4ected trends. ) Fone of the above.

    The correct answer is ). Aggregate inventory is the sum of all inventory levels for individuaitems into larger sums.Question #: !!True statements regarding the 1OJ "1conomic Order Juantity) formula include which of the

    following0

    !. !t attempts to balance ordering costs with carrying costs.!!. !t is a lot*siing method.!!!. The carrying cost portion is considered a management policy variable. A) ! and !! only. B) ! and !!! only. C) !! and !!! only.

    ) !! !!! and !.

    The correct answer is ). All statements are true regarding 1OJ. !n the third answer$ becausecarrying cost is difficult to 8uantify$ management usually sets it.

    Question #: !"The ABC analysis used for cycle counting is: A) The high$ low$ middle principle.

    B) &areto3s analysis. C) 9egression analysis. ) Fone of the above.

    The correct answer is B). &areto3s analysis or the E7/57 rule is where the ABC analysis conceptcomes from.

    Question #: ! hich of the following statements are true regarding time*phased order point0!. ,ot siing is eliminated.!!. !t is more effective than order point.!!!. Ises #9& logic for independent demand. A) ! and !! only. B) ! and !!! only. C) !! and !!! only. ) !$ !! and !!!.

    The correct answer is C). Ising Time &hased Order &oint does not eliminate ,ot siing. ,ot

    sies are used for independent items as well as for components in #9&.

    Question #: "$!f a company has 5 distribution centers and % central warehouses where part MN is stored$ howmany 'DI3s does part MN represented0

    A) % B) 5 C) ; ) Fone of the above.

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    The correct answer is C. An 'DI e2ists for each location even if the part has the same number.

    Question #: "1hich of the following best defines the term ,!O0 A) !t is a lot siing techni8ue. B) !t is an inventory valuation method. C) !t is a cycle counting method.

    ) Fone of the above.

    The correct answer is B). ,!O stands for last in first out and is an inventory valuation techni8uewhere inventory is valued based on the earliest products to enter inventory. !t is particularlyuseful during inflationary times to reduce ta2es.

    Question #: "2hich of the following best defines the term !O0 A) !t is a lot siing techni8ue. B) !t is a method to determine A$B$and C parts. C) !t is an inventory valuation method. ) Fone of the above.

    The correct answer is C). !O stands for first*in$ first*out and is an inventory valuationtechni8ue where inventory is valued based on the latest products to enter inventory.

    Question #: "3uring inflationary periods$ which of the following statements would be true if the ,!O method ofinventory valuation is used0

    A) !nventory value would be lower$ cost of goods sold higher.B) !nventory value would be higher$ cost of goods sold higher.C) !nventory value would be higher$ cost of goods sold lower.) Fone of the above.

    The correct answer is A. uring inflation$ the ,!O method values the inventory at the earliestcosts which would be lower charging higher costs to cost of sales usually resulting in higherboo(ed profits.

    Question #: "4hich of the following are true regarding cycle counting0!. All items are counted the same number of times per year.!!. &aperwor( cut off is generally more difficult than at an annual physical.!!!. Causes of error and correction are more effective than annual physicals. A) ! and !! only.

    B) ! and !!! only. C) !! and !!! only. ) !$ !! and !!!.

    The correct answer is C. !n a cycle counting program$ you are attempting to obtain the mostreturn for the resources e2pended Therefore$ the most critical parts would be counted morefre8uently than the less important parts.

    Question #: "5hich of the following are costs of carrying inventory0

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    !. !nsurance on the warehouse and its contents.!!. !nventory write*offs.!!!. 'tate inventory ta2. A) ! and !! only. B) ! and !!! only. C) !! and !!! only. ) !$ !! and !!! .

    The correct answer is . All of the above answers would be included in the cost of carryinginventory.Question #: ",ot siing can be used with which of the following ordering systems0!. 9eorder points.!!. #aster production scheduling.!!!. #aterial re8uirements planning. A) ! and !! only. B) ! and !!! only. C) !! and !!! only. ) !$ !! and !!!.

    The correct answer is . All of the above can use some form of lot siing for placing ordersalthough orders can be released based on different criteria.

    Question #: "!Based on the following information$ what would the reorder point be for this product0 &roduct lead time ? ; wee(s ee(ly usage ? 577 #A ? 577 'ervice &olicy -ariable ? %.7 A)

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    A) A standard lot sie. B) A printout of 4obs and their se8uence. C) An analysis of cycle count classifications. ) Fone of the above.

    The correct answer is A. A batch is a standard lot sie usually resulting from a standardcontainer$ tan($ etc.

    Question #: $hich of the following statements best defines the reason bills of material need to be accurate0!. Juality problems can occur.!!. Cost analysis will not be complete or accurate.!!!. #9& will plan parts incorrectly. A) ! and !! only. B) ! and !!! only. C) !! and !!! only. ) !$ !! and !!!.

    The correct answer is . All of the problems stated can occur if the bills of material do not reflectthe manufacturing process accurately.

    Question #: 1A Company has 4ust implemented a buc(etless #9& system. hat (ind of system is it0A) !t is an on*line integrated pac(age.B) One in which all line phased data is displayed using day/8uantity detail.C) !t does not contain the financial module.) Fone of the above.

    The correct answer is B). A buc(etless system uses dates to display data and plans based onday/8uantity detail rather than time periods or buc(ets.

    Question #: 2A Company with a cumulative longest lead*time of %; wee(s to manufacture has a planninghorion of %% wee(s. hich of the following will occur0!. Order releases for the vendor will be inside the lead*time.!!. Constant e2pediting will occur.!!!. #anufacturing inefficiencies will occur. A) ! and !! only. B) ! and !!! only. C) !! and !!! only. ) !$ !! and !!!.

    The correct answer is ). hen the planning horion is too short$ orders will be released withoutenough lead*time causing a number of problems to develop as the organiation tries to ma(e upthe time.

    Question # 3hich of the following ratios could be measures of customer service0!. Order lines filled versus lines ordered.!!. Complete orders shipped on time.!!!. Truc(s departing on time.

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    A) ! and !! only. B) ! and !!! only. C) !! and !!! only. ) !$ !! and !!!.The correct answer is A). #any measures e2ist regarding customer service$ however$ truc(sdeparting on time would not be one of them.

    Question #: 4

    !f a company refers to their manufacturing cycle as being two wee(s$ they mean the time:A) rom the procurement to the shipment to customer.B) from the release of the manufacturing order until shipment to the customer.C) Of final assembly.) Fone of the above.

    The correct answer is B). The manufacturing cycle time is the time from release of themanufacturing order to the customer3s shipment or$ entry to finished goods in a ma(e to stoc(company.

    Question #: 5A Company has several warehouses and each maintains its own inventory managementdecisions. hich of the following would best support the management of inventory0 A) istribution resource planning B) 9eorder point with safety stoc( C) 1conomic order 8uantity ) ,imit inventory method

    The correct answer is A). istribution resource planning uses planning logic similar to #9&which allows the planning of inventory at warehouse locations. Because the logic is time phased$inventory management is more effective using 9&. elivery lead*time is the time from customerorder receipt to delivery of the product.

    Question #: hich of the following are sources of demand0 !. Customer order !!. orecast !!!. Branch warehouse A) ! and !! only. B) ! and !!! only. C) !! and !!! only. ) !$ !! and !!!.

    The correct answer is ). All could be sources of demand$ as well as others.

    Question #: !!n a distribution resource planning system$ the ability to chec( physical distribution resourcese2ists. These resources would include:!. Tractors and trailer capacity.!!. arehouse storage space.!!!. inances. A) ! and !! only. B) ! and !!! only. C) !! and !!! only.

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    ) !$ !! and !!!.

    The correct answer is ). istribution resource planning allows a resource chec( on criticalresources in distribution$ similar to manufacturing resource planning in manufacturing.

    Question #: "hich of the following best describes the term e8ual runout 8uantities0

    A) The date a product is due to be out of stoc(.

    B) The use up before change feature in the engineer change order.C) Order 8uantities of items in a group$ which will run out at the same time.) Fone of the above.The correct answer is C). The products are ordered in the right 8uantities'o they will run out at the same time leaving no residual inventory with a potential forobsolescence.

    Question #: !n a fi2ed order 8uantity system$ which of the following is true0!. The 8uantity is the same for each order.!!. The order interval varies.!!!. An order is placed when on*hand balance reaches a reorder point. A) ! and !! only. B) ! and !!! only. C) !! and !!! only. ) !$ !! and !!!.

    The correct answer is A). An order is placed when the on*hand balance plus the on*order8uantity is e8ual to or less than a predetermined point. The same 8uantity would be ordered atvarying order intervals.

    Question #: 1$$A Company has two plants one$ which is a final assembly plant and the other$ produces

    subassemblies which supplies the assembly plant. How is the interplant demand carried in thesubassembly plant0A) 'afety stoc( absorbs the demand.

    B) 'imilar to a customer order in the master schedule. C) As components in #9&. ) Fone of the above.

    The correct answer is B). The interplant demand$ while not a customer order$ would be handledin a manner similar to the #&'. That is$the interplant demand would be a gross re8uirement forthe supplying plant.

    Question #: 1$1hich of the following should be included in the cost of carrying inventory0!. Annual inventory ta2!!. !nventory shrin(age!!!. #ovement of inventory A) ! and !! only. B) ! and !!! only. C) !! and !!! only. ) !$ !! and !!!.

    5E

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    The correct answer is B). ,ogistics is the science of purchasing and distributing materials andincludes all functions associated with those activities.

    Question #: 1$Inder a min*ma2 inventory system$ what would the order process be0 A) hen the minimum is reached$ order the ma2imum. B) hen the minimum is reached$ order up to the ma2imum. C) hen the ma2imum is reached$ order the minimum.

    ) Fone of the above.

    The correct answer is B). The minimum acts as the reorder point and the ma2imum is the build toamount.

    Question #: 1$!hich of the following best describes the term on*hand balance0 A) Available inventory for orders. B) The net pro4ected inventory balance. C) The amount of inventory physically in stoc(. ) Fone of the above.

    The correct answer is C). Available inventory has the allocated inventory subtracted$ howeverthe product is still on*hand as reflected in the inventory records.

    Question #: 1$"hich of the following are included in ordering costs0!. Order receipt clerical costs

    !!. Order preparation costs!!!. 'et*up costs A) ! and !! only. B) ! and !!! only. C) !! and !!! only.

    ) !$ !! and !!!.

    The correct answer is ). All of these costs are part of the ordering costs.

    Question #: 1$hich of the following best describes an outbound stoc(pot in a conbon scheduling system0

    A) A field warehouses nearest a large mar(et.B) A staging area for outbound shipments.C) A location on the plant floor near the point of use where material is moved to be pulled to thene2t operation.) Fone of the above.

    The correct answer is C). An outbound stoc(point is a designated location near the point of usein the factory where material waits to be pulled to the ne2t operation.

    Question #: 11$hich of the following can be considered out*of*poc(et e2penses0!. &ayroll!!. reight!!!. epreciation on buildings. A) ! and !! only.

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    B) ! and !!! only. C) !! and !!! only. ) !$ !! and !!!.

    The correct answer is A). Out*of*poc(et e2penses involve the direct disbursement of cash.epreciation is an accounting method to e2pense long term capital costs over the life of thecapital asset.

    Question #: 111'afety 'toc( ? 7 $ ,ead time ? 5 periods$ Allocation ? %7 % 5 ; < 6 @ross 9e8uirement ;7 %7 %7 57 57 7'cheduled 9eceipts ;7 ;7&ro4ected on hand 67&lanned Order 9eleaseBased on the time*phased record above$ what is the pro4ected available inventory balance inperiod 0 A) 6 B) %7 C) %6

    ) 57

    The correct answer is B). &ro4ected on*hand will be 67*%7*;7 ? %7"per %). !n period 5$ "%7*%7) ;7 ? ;7. !n period ;$ ;7 * %7 ? 57. !n period

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    preparation and release to the time when the product can be used.

    Question #: 114hy is istribution 9esource &lanning considered a push inventory management system0

    A) !nventory is pushed to feed warehouses from a central location.B) !nventory is pushed to field warehouses when they reach their reorder points.C) &ush systems allow decentralied control of inventory.) Fone of the above.

    The correct answer is A). !nventory is managed throughout the distribution networ( from acentralied location. !t is pushed to where it is needed based on demands so the overallinventory is managed.

    Question #: 115hich of the following is true regarding the reduction in 8ueue times0!. They can be achieved by speeding up the e8uipment.!!. ,ead times will be reduced.!!!. or(*in*process inventory will decline. A) ! and !! only. B) ! and !!! only. C) !! and !!! only. ) !$ !! and !!!.

    The correct answer is C). 'peeding the machines will not help if wor( is being scheduled poorly.A reduction in 8ueues will reduce inventory and lead*time because time will not be wastedwaiting for operations.

    Question #: 11All of the following could be a cause of stoc(room inventory shrin(age 1MC1&T: A) Inrecorded scrap B) Theft

    C) 9eceived 8uantity less than ordered ) 'helf life e2pires

    The correct answer is C). As long as the received 8uantity is e8ual to the amount which wasphysically put away$ then no shrin( would occur even though it was less than ordered.

    Question #: 11!!n a standard cost system$ standard costs are generally established prior to the actuaproduction. How can management using the standard cost system determine how welproduction is achieving its goals0 A) &roductivity per man*hour should be high.

    B) -ariances from standard cost should be favorable. C) efects per %777 should be low. ) Fone of the above.The correct answer is B). -ariances should be favorable "actual costs less than the standard)hile the other answers contribute to favorable variances$ these would not directly relate tostandard cost.

    Question #: 11"Time phased order point "T&O&) can be best described as:

    A) Order point calculation with constant demand over time.

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    B) A method of double order point.C) #9& logic applied to independent demand items.) Fone of the above.

    The correct answer is C). T&O& is the application of #9& logic to independent items. The grossre8uirements come from forecasts and not e2plosions.

    Question #: 11

    !f the sum of the forecast errors is %77 for four periods$ what should the safety stoc( level be fora =6K service level "9ound to nearest whole number). A) 65

    B) %77 C) %

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    The correct answer is B). #a(e to order. Companies ma(e many end items from a small numbeof components. The schedule is developed from actual customer orders.

    Question #: 123&art A and &art C would be considered parents since they have components attached.

    &lanning bills can be best described as: A) Bills of material based on forecast demand.

    B) Bills of material for new products. C) Bills of material$ which represents average products. ) Bills of material for e2pected usage.The correct answer is C). &lanning bills is an artificial grouping of components established forplanning purposes. They are used to simplify forecasting and scheduling. They are notbuildable products.

    Question #: 124All of the following are part of manufacturing lead*time e2cept: A) Jueue time. B) ait time. C) #ove time. ) &urchasing time.

    The correct answer is ). &urchasing time is part of the overall lead time of a product$ howevermanufacturing lead*time includes 8ueue time$ setup time$ run time$ wait time and move time.

    Question #: 125hen the ne2t operation is allowed to begin before the entire lot is completed on the previousoperation$ this is called: A) Operation splitting. B) Operation overlapping. C) or( center overlapping.

    ) or( center splitting.

    The correct answer is B). Operation overlapping allows the ne2t operation to begin even thoughthe whole lot has not been completed through the previous operations. !t can be used toe2pedite an order. However$ sometimes costs are increased.

    Question #: 12!n most companies$ material purchases represent what percentage of the cost of the product0 A) ;7K B) 67K C) >7K

    ) =7KThe correct answer is B). !n most companies today$ material costs represent 67K or higher ofthe cost of the product.

    Question #: 12!Aggregate inventory management is concerned with: A) #anaging inventory items and how they are used. B) 1stablishing the production plan. C) The cost and benefits of carrying the different classes of inventory. ) The distribution networ( and the movement of inventory.

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    The answer is C). Aggregate inventory management is concerned with the cost and benefit ofcarrying raw materials$ wor(*in*process and finished goods inventory. !t is financially oriented.

    Question #: 12"hich of the following conditions will cause the 1OJ concept to be invalid0 !. &roducts that are made to order. !!. 'hort shelf life products.

    !!!. ,ength of production run is unlimited. !-. 9aw materials$ which are on #9&. A) !$ !! and !!!. B) !$ !! and !-. C) !!$ !!! and !-. ) !$ !! and !-.

    The correct answer is ). 1OJ assumptions are usually valid for finished goods withindependent and uniform demand. However$ the assumptions brea( down in many real*worldcases.

    Question #: 12Based on the following information$ what would the safety stoc( be to ensure product is in stoc(==.==K of the time0 #A ? %77 On hand ? 577 ee(ly demand ?

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    ) !$ !!$ !!! and !-.

    The correct answer is B). All are advantages of point of use storage e2cept ease of control$which is an advantage of central storage.

    Question #: 131hich of the following are advantages of using central storage0 !. 1ase of control.

    !!. Costs are reduced. !!!. !nventory record accuracy is easier to attain. !-. 'afety stoc( is reduced. A) !$ !! and !!!. B) !$ !!! and !-. C) !!$ !!! and !-. ) !$ !!$ !!! and !-.

    The correct answer is B). Costs are not reduced with central storage. There are labor costs$rac(ing$ paper system and other costs associated with central storage.

    Question #: 132or a given product$ the line haul cost is P%.67 per mile. The product will move

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    The correct answer is A). 'ubcontracting usually provides an ad4ustment to capacity for shortand medium range planning.

    Question #: 135Bac(logs should be held: A) on the shop floor B) at the customer C) in production control

    ) Fone of the above

    The correct answer is C). By (eeping the bac(logs in production control$ the floor will not be4ammed with wor( which cannot be completed thereby rendering due dates invalid on the floor.

    ****************************************************O9D C1FT19 5%7 "in standard hours)**************************************************** % 5 ; < 6&,AFF1 !F&IT %67 %67 %67 %67 %67

    ACTIA, !F&IT %67 %

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    Based on the input/output control chart above$ what should the input be in period < in order toreduce the bac(log0

    A) %;7 B) %67 C) %7 ) Any of the above.The correct answer is ). As long as the input does not e2ceed or e8ual the planned output$ the

    bac(log will be reduced. The lower the input$ the better to reduce the bac(log.

    ****************************************************O9D C1FT19 5%7"in standard hours)**************************************************** % 5 ; < 6&,AFF1 !F&IT %67 %67 %67 %67 %67

    ACTIA, !F&IT %67 %

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    !. A cost accounting system to capture variances. !!. A material contol system.

    !!!. A shop floor control system$ which provides accountability. A) ! and !! only. B) ! and !!! only. C) !! and !!! only. ) !$ !! and !!!.

    The correct answer is C). A good capacity management system can e2ist without a cost system.However$ without valid due dates and accountability for wor( on the floor$ capacity managementwill be poor.

    Question #: 141The time period$ which e2ists between the completion of one operation and the start of the ne2toperation$ is: A) ait time B) 'et*up time C) !nteroperation time ) &re*operation timeThe correct answer is C). !nteroperation time would include move time$ 8ueue time and wait time.

    Question #: 142hich of the following is/are associated with bac(ward scheduling0 A) inite loading B) !nfinite loading C) !nteroperation se8uencing ) Fone of the aboveThe correct answer is B). ith infinite loading$ the load on the plant is determined by customerdue date scheduled bac(ward without regard to standard capacity available to perform the wor(.Capacity is then reviewed for potential improvements through overtime$ subcontracting$ etc.

    Question #: 143hich of the following statements are true regarding input/output control0!. Fever load in more than you e2pect out.!!. 'eparate the planning and control of capacity from the planning and control of mi2.!!!. &lace the due date on the order at the last possible moment. A) ! and !! only.

    B) ! and !!! only. C) !! and !!! only. ) !$ !! and !!!.Correct answer is ). These are three of the four basic principles of input/output control. Thefourth is that capacity should be planned in the largest possible group of items.

    Question #: 144!f wor( center is becoming a bottlenec( and throughput time is getting longer$ which of thefollowing could be a solution0 !. ecrease the input. !!. !ncrease the planned lead times. !!!. !ncrease the capacity. A) ! and !! only. B) ! and !!! only. C) !! and !!! only.

    ;=

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    !. A machine which is designated to produce only one item.!!. 'pecial e8uipment designed specifically to produce a small group of items.!!!. The 57K committed capacity a customer has ta(en. A) ! and !! only. B) ! and !!! only. C) !! and !!! only. ) !$ !! and !!!.The correct answer is A). edicated capacity refers to the way wor( centers have been assigned

    to manufacture specialied products.

    Question #: 15$hich of the following is used to calculate demonstrated capacity0 A) Actual output B) Actual input C) 'tandard output ) Fone of the aboveThe correct answer is A). emonstrated capacity is calculated using the historical actual outputtimes the standard hours to produce.

    Question #: 151Qob ABC will ta(e %77 standard hours to produce. Ising the following information$ how manye8uivalent days will it ta(e to complete the 4ob "round to the nearest whole day)0 #achines ? 5 Fumber of operations ? 5 'hifts per day ? % Hours per shift ? E #achine utiliation ? =7K Operator efficiency ? =7K A) B) > C) E

    ) =The correct answer is C). There are %5.= available hours per day "5 machines 2 E hours perday 2 .=7 utiliation 2 .=7 efficiency). %77 hours needed/%5.= hours available ? >.>5 or E days.

    Question #: 152An order is due 5 wee(s from now for %777. The historical scrap factor for this part is 6K. Basedon this$ the e2pected completion 8uantity will be: A) =67 B) %777 C) %767 ) %%77

    The correct answer is A). The e2pected completion 8uantity is the planned 8uantity e2pectedless the e2pected scrap.

    Question #: 153hich of the following best describes the forward scheduling techni8ue0!. Begins with a (nown start date and calculates a completion date for an order.!!. ates generated are earliest start dates for each operation.!!!. Orders are loaded for each operation$ first to last. A) ! and !! only. B) ! and !!! only.

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    B) ! and !!! only. C) !! and !!! only. ) !$ !! and !!!.The correct answer is C). #any people believe it is only a delivery of material as needed. !t is aphilosophy of waste elimination and wor(er involvement. Additionally$ wor( is pulled through thefactory based on demand.

    Question #: 15

    hich of the following statements are true regarding infinite loading0!. The techni8ue is valid although the name is misleading.!!. The techni8ue is now (nown as capacity re8uirements planning.!!!. !t is also (nown as operations scheduling. A) ! and !! only. B) ! and !!! only. C) !! and !!! only. ) !$ !! and !!!.The correct answer is A). Capacity re8uirements planning or infinite loading is based on thecustomer due date. hile operations scheduling plans each operation to arrive at a completiondate based on a finite capacity.

    Question #: 1$!n a se8uence of operations without alternate routings$ capacity and the whole se8uence ofoperations can be scheduled by the operation with the least capacity. This operation is (nownas: A) The gateway operation B) The limiting operation C) The downstream operation ) Fone of the aboveThe correct answer is B). The limiting operation$ also (nown as the bottle*nec( operation$ can beused to schedule the whole se8uence of operations since wor( can only procede as fast as theslowest point.

    Question #: 11Based on the following information$ what is the lost time factor0 &lanned hours %7 'tandard hours earned E Actual hours wor(ed %7 A) .5 B) .56 C) 5 ) Fone of the aboveThe correct answer is A). ,ost time factor is calculated as the planned hours minus standard

    hours earned divided by the planned hours or$ %7 * E ? 5 5/%7 ? .5.

    Question #: 12Based on the following information$ calculate the machine utiliation for the wee( based on E*hour shifts. ay % ay 5 ay ; ay < ay 6'et up time "hrs) %.7 %.7 %.6 %.7 %.69un time "hrs) .7 6.6 6.6 .7 6.6ait time "hrs) %.7 %.6 %.7 %.7 %.7 A) >%.56K

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    B) E.56K C) =%.56K ) Fone of the aboveThe correct answer is B). #achine utiliation is calculated by dividing direct time charged toproduction activities by the cloc( time scheduled for those production activities. !n the 8uestion$E hours available each day or

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    The plant manager is responsible for: !. #anufacturing to meet a schedule. !!. Changing the schedule.

    !!!. 1nsuring raw materials arrive in time. A) ! only. B) ! and !!! only. C) ! and !! only. ) !! and !!! only.

    The correct answer is A). The plant manager is responsible for ensuring products are producedto meet the schedule in the priority assigned with the best 8uality possible at the least costpossible.

    Question #: 1!!n which of the following businesses can shop floor control procedures be best applied0 !. #a(e*to*stoc( !!. #a(e*to*order !!!. Assemble*to*order A) ! and !! only. B) ! and !!! only. C) !! and !!! only. ) !$ !! and !!!.The correct answer is ). All types of manufacturing industries can receive benefits from shopfloor control procedures.

    Question #: 1"hich of the following are true regarding variable costing0!. i2ed factory overhead is not assigned to the product.!!. !t is acceptable for e2ternal financial reporting.!!!. !t is beneficial for internal analysis. A) ! and !! only. B) ! and !!! only.

    C) !! and !!! only. ) !$ !! and !!!.Correct answer is B). hile variable costing is best for internal management analysis$ it is notaccepted for e2ternal financial reporting. Only variable costs directly identified with a productare assigned to the product.

    Question #: 1hich of the following could be done to reduce manufacturing lead*times0 !. Add a shift to the operation. !!. !mprove set*up times. !!!. 9educe 8ueues in front of wor( centers.

    A) ! and !! only. B) ! and !!! only. C) !! and !!! only. ) !$ !! and !!!.The correct answer is ). All of the answers could be completed to reduce lead*times$ somemore 8uic(ly than others.Question #: 1!$or which of the following cost variances does a foreman have responsibility0!. -olume variance

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    !!. #aterial usage!!!. Alternate routings A) ! and !! only. B) ! and !!! only. C) !! and !!! only. ) !$ !! and !!!.The correct answer is C). -olume variances result from the difference in planned sales andactual sales. #aterial usage variances result from actual materials being used at a rate different

    than standard. Alternate routings can generate more cost as they are usually less efficient andare used when the primary wor(center is out of service.

    Question #: 1!1!nventory shrin(age is caused by:

    A) Actual inventory value being less than planned inventory value.B) A physical inventory 8uantity being less than the boo( 8uantity due to unrecordeddeterioration$ scrap$ theft or usage.C) &oor boo( inventory entries.) Fone of the above.The correct answer is B). hen the physical inventory 8uantity is less than the boo( value$ thena shrin( is recorded. These are usually caused by unrecorded activities.

    Question #: 1!2hich of the following is true regarding first*piece inspection0

    A) !t is the 8uality inspection after the first finished product is assembled.B) !t is 8uality chec( of a component after the set*up.C) !t is the inspection time built into the routing.) Fone of the above.Correct answer is B). !t is the 8uality chec( conducted on the first piece produced after the set*up is completed.Question #: 1!3

    loor stoc(s can be best defined as:A) Components which have been issued and moved to the floor.B) 9aw steel to be formed.C) !ne2pensive parts held in the factory for use without re8uisitions by wor(ers.) Fone of the above.The correct answer is C). &roduction parts$ which are held on the floor to be used by productionwor(ers$ are floor stoc(s. 9e8uisitions are not used$ as parts are generally ine2pensive.

    Question #: 1!4#a4or benefits of a fle2ible machine center include which of the following0 !. Juic( changeovers

    !!. #ultiple products to be manufactured !!!. Juic( set*upsA) ! and !! only.

    B) ! and !!! only. C) !! and !!! only. ) !$ !! and !!!.The correct answer is ). All of the above are benefits of a fle2ible machine center. Onenegative may be the investment.

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    Question #: 1!5hich of the following are valid methods of relieving inventory0 !. &ost*deduction transaction !!. &re*deduct transaction !!!. irect*deduct transaction A) ! and !! only. B) ! and !!! only.

    C) !! and !!! only.

    ) !$ !! and !!!.The correct answer is ). All are valid methods however$ ! and !!! would be preferable. &ostdeduct transactions are completed when an order is closed. irect deduct transactions arecompleted as materials are issued or received. &re*deduct transactions are completed when billmaterial e2plosion occurs.

    Question #: 1!hich of the following reasons could e2ist for an unplanned issue0!. #aterial scrapped has to be replaced.!!. #aterial is being used which is not on the bill of material.!!!. The pic(list 8uantity must be changed. A) ! and !! only. B) ! and !!! only. C) !! and !!! only. ) !$ !! and !!!.The correct answer is A). An unplanned issue is an issue transaction from inventory$ which is noton the pic(list. Answers ! and !! 8ualify.

    Question #: 1!!hich of the following is the most important element of a total 8uality control "TJC) program0 A) &rocess control B) ,ine stops capability C) &ro4ect by pro4ect improvement

    ) Fone of the aboveThe correct answer is ). Fo one item is most important in a total 8uality control program. !t is abroad*based approach$ which encompasses all phases of manufacturing$ from design tocustomer delivery.

    Question #: 1!"hich of the following are direct causes of idle time0 !. ,ac( of material !!. !naccurate planning bill !!!. 'et*up A) ! and !! only.

    B) ! and !!! only. C) !! and !!! only. ) !$ !! and !!!.The correct answer is B). !dle*time or downtime is the amount of time machines or people areidle due to set*up$ maintenance$ tooling or waiting for material. An inaccurate planning bill wouldnot directly cause idle time.

    Question #: 1!A 4ob status report would show: A) Costs accumulated for the 4ob.

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    B) The input and output of every wor(center. C) The plan for completing a 4ob and the progress versus the plan. ) Fone of the aboveThe correct answer is C). A 4ob status report shows the actual progress of a 4ob versus thecompletion date.Question #: 1"$

    A 4ob is due > wor(days from today with > hours per day available to wor( on the 4ob. The

    amount of wor( left to complete the 4ob is %E hours. Ising the slac( time rule$ what is the priorityon this 4ob0 A) > B) days 2 > hrs/day ?

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    Question #: 1"4!n a ship to wip process$ which of the following is true0 !. A certified supplier can ship to the point of use !!. !nspection is completed in small lots !!!. Traditional receiving process is bypassed A) ! and !! only. B) ! and !!! only.

    C) !! and !!! only. ) !$ !! and !!!.The correct answer is B). !n a ship to wip process$ traditional receiving$inspection and stoc(ing are bypassed and the product is delivered to the point of use.

    Question #: 1"5The process of shutting down a production line or machine upon identification of a defect is: A) own time B) A capacity constraint C) 'implification ) AutonomationThe correct answer is ). Autonomation is the process whereby detection of a defectautomatically shuts down a machine or line. This concentrates the firms resources on problemresolution * inventory can3t hide the problem.

    Question #: 1"An and on is: A) or( center which constrains the flow B) A signal system which lin(s wor( centers C) A tool for 8uic( set*up ) Fone of the aboveCorrect answer is B). An andon is a type of signal system which provides visibility to the floorconditions. @enerally$ red "stop)$ green "running)$ and yellow "needs attention)$ indicates

    production line conditions.

    Question #: 1"!The time re8uired between the completion of each successive end product is called: A) !nteroperation times B) Throughput time C) Tact time ) Fone of the aboveCorrect answer is C). Tact time is synonymous with drumbeat and cadence and sets the productrate for the line in high volume factories.

    Question #: 1""hat changes are re8uired by employees in a Q!T environment0 !. #ore specialiation !!. #ore involvement in solutions !!!. #ore group improvement effort A) ! and !! only. B) ! and !!! only. C) !! and !!! only. ) !$ !!$ and !!!.The correct answer is C). 1mployees become less specialied in 4ob function while being more

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    involved solving problems and in group teamwor(.

    Question #: 1"hich of the following is true about '&C0 !. Control charts are maintained only for later use. !!. !t is a 8uality control function. !!!. !t eliminates 8uality control 4obs. A) ! only.

    B) ! and !! only. C) !$ !!$ and !!!. ) Fone of the above.The correct answer is ). Fone of the answers are really true about '&C.hile charts aremaintained they are used as a tool to correct processes$ which vary. !t is not really a 8ualitycontrol function$ as it re8uires the factory wor(ers to understand and ad4ust.

    Question #: 1$!f resources are tight$ which of the following educational sources would be most cost effectivefor a '&C program0 A) Outside training seminars B) evelop training in*house C) ,ocal education institution ) Outside consultant to conduct initial trainingCorrect answer is ). An outside consultant can provide in*house training to large groups at alllevels. !t is important that the person is (nowledgeable and has good presentation s(ills so themessage is deliveredclearly. hile in*house materials could be cheaper$ the message may not carry the samecredibility.

    Question #: 11'mall group improvement activities "'@!A) provide which of the following purposes0 !. evelop the potential of the human asset

    !!. #aintain or improve wor(er morale !!!. !mplement and manage change

    A) ! and !! only. B) ! and !!! only. C) !! and !!! only. ) !$ !!$ and !!!.The correct answer is ). 'mall group improvement activities provide all ofthe above purposes and others including$ increased awareness$ learn from each other anddevelop leadership abilities.

    Question #: 12All of the following show management support for '@!A3s 1MC1&T: A) Commitment to 8uality at all times B) 'hared responsibility and authority which encourages ownership C) 9ewards for individual results ) Training and development commitmentThe correct answer is C). 9ewards and focus should be based on team results$not individualresults.

    Question #: 13

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    The term$ linearity$ means: A) The line capacity is balanced from beginning to end B) &roduction at a constant or level rate C) A single source supplies each component ) Fone of the aboveThe correct answer is B). ,inearity refers to the use of a resource at a level rate or production ata constant rate. The rate is measured at least daily or more fre8uently.

    Question #: 14C!# should be implemented after Q!T has been successfully implemented. C!# is a verycomple2 underta(ing$ which in an unfocused$ comple2 factory$can be very e2pensive withoutgreat success.

    The phrase One less at a time refers to which of the following0A) 9educing the number of suppliers necessary to produce the product.B) The reduction of direct labor caused by the creation of manufacturing cells.C) The process of gradually reducing lot sies in manufacturing to eliminate obstacles.) Fone of the above.Correct answer is C). The phrase refers to the @9AIA, "continuous improvement) reduction oflot sies. This creates the opportunity to eliminate obstacles to higher throughput by identifyingthem readily.

    Question #: 15or( teams which operate highly focused segments of the production process without e2ternalsupervision or reporting are called: A) Juality circles B) 'mall group improvement activity "'@!A)

    C) Autonomous wor( group ) Fone of the above

    The correct answer is C). Autonomous wor( groups wor( to an e2ternal schedule$ however$ thereis little or no e2ternal influence.

    Question #: 1!n a Qust*in*Time delivery process$ pac(aging plays a critical role. hich of the following areimportant in designing pac(aging for Q!T0!. &ac(aging should be designed for direct use by the customer.!!. &ac(aging should minimie delivery and transportation costs.!!!. &ac(aging should convey a mar(eting image first. A) ! and !! only. B) ! and !!! only.

    C) !! and !!! only. ) !$ !!$ and !!!.The correct answer is A). &ac(aging should be designed for customer use. ith small lots andfre8uent deliveries$ pac(aging should wherever possible$ minimie the logistic cost. Advertisingand positive image should play a secondary role to function.

    Question #: 1!hich of the following are important in measuring the Q!T delivery process0!. On time delivery!!. #inimal schedule changes by the supplier

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    !!!. Accurate 8uantity A) ! and !! only. B) ! and !!! only. C) !! and !!! only. ) !$ !!$ and !!!.The correct answer is ). All are important$ more than low cost$ in evaluating deliveryperformance. hile cost must remain competitive$ it must be analyed in relation to the service.

    Question #: 1"!n order to accommodate a Q!T delivery system$ a customer3s facility must have all of the folowing1MC1&T: A) edicated receiving doc(s B) &re*printed receiving travelers C) &re*arranged delivery appointment ) Appropriate handling e8uipmentThe correct answer is B). Any printed document to move material would not add value and is nota must in a Q!T delivery system.

    Question #: 1!n considering a carrier for use in a Q!T delivery system$ which of the following are important0!. 18uipment sie and type!!. Capability to communicate effectively with supplier and customer!!!. le2ibility to schedule changes A) ! and !! only. B) ! and !!! only. C) !! and !!! only. ) !$ !!$ and !!!.Correct answer is ). All of the answers are important in addition to past Q!T e2perience$ anddistance from supplier and customer$ although less so.

    Question #: 2$$

    A 8uality policy should be developed to communicate to employees. This policy should includewhich of the following: !. A definition of 8uality !!. A standard of performance !!!. A measurement method !-. A penalty for non*conformance A) !$ !!$ and !-. B) !$ !!$ and !!!. C) !!$ !!!$ and !-. ) !$ !!$ !!!$ and !-.The correct answer is B). A 8uality policy is a way to communicate to employees what 8uality

    is$ so everyone understands. A penalty of non*conformance should not be included$ however$ asystem for achieving 8uality should be.

    Question #: 2$1!n determining the cost of 8uality in an organiation as a measurement tool$ which of thefollowing should be included0 !. arranty costs !!. 12cess inventory !!!. 9eturns and allowances

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    !-. 9ewor( costs A) !$ !!$ and !-. B) !$ !!$ and !-. C) !!$ !!!$ and !-. ) !$ !!$ !!!$ and !-.The correct answer is ). All of the costs listed would be included in the cost of 8uality plusscrap$ down time and others.

    Question #: 2$2!n a Q!T manufacturing environment$ the cost system should do which of the following0!. Collect detailed costs of labor.!!. 9ecord the in and out transactions to a wor( cell but not one machine.!!!. &erformance measures should optimie total costs. A) ! and !! only. B) ! and !!! only. C) !! and !!! only. ) !$ !!$ and !!!.Correct answer is C).Because the Q!T environment is simplified$ costs only need to be gatheredinto and out of the cell in total. The need to gather detailed labor data is reduced or eliminated$as labor becomes a very low ratio of total cost of production.

    Question #: 2$3hat is the reason for the 6 3s in Qapan0 A) !t teaches the wor( ethic for which they are famous. B) !t forms the basis of the Qapanese Dieretsu. C) !t provides the cause of a problem. ) Fone of the above.The correct answer is C). The 6 hy3s is a concept whereby Qapanese managers as( why 6times to identify a problem. By the fifth why$ they believe they will find the actual cause of aproblem$ which they can then solve.

    Question #: 2$4hich of the following statements are true in a Q!T environment0!. Continuous improvement measures are more important than traditional accounting measures!!. Because of the continuous flow$ labor is a more costly component!!!. 'ystems can be eliminated or simplified A) ! and !! only. B) ! and !!! only. C) !! and !!! only. ) !$ !!$ and !!!.Te correct answer is B). !n a continuous flow$ repetitive manufacturing labor cost as a componentis generally lower.

    Question #: 2$5ull absorption accounting is best suited for which of the following situations0 A) !nternal management decisions B) 12ternal reporting to the financial community C) or measuring manufacturing performance ) Fone of the aboveThe correct answer is B). ull absorption is an accounting method whereby all fi2ed costs areapplied "absorbed) by the product. !t is re8uired for e2ternal reporting to shareholders$ ban(s$etc.

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    Question #: 2$irect costing "variable costing) is best for which of the following situations0 A) !nternal management decisions B) 12ternal reporting to the financial community C) or measuring company performance with other companies ) Fone of the aboveThe correct answer is A). irect costing applies only the variable cost to products. They are then

    reviewed for their margin contribution towards the fi2ed costs. As an internal management tool$ itis better than full absorption accounting.

    Question #: 2$!hich of the following groups should be educated about Q!T0 !. Top management !!. #anufacturing management !!!. inancial personnel !-. #achine operators A) !$ !!$ and !!! only. B) !$ !!$ and !- only. C) !!$ !!!$ and !- only. ) !$ !!$ !!!$ and !-.Correct answer is ). All levels of personnel must be educated as Q!T re8uires a ma4or change inmindset and attitude. Only through understanding can that change occur.

    Question #: 2$"hich of the following would be considered waste in the Q!T environment0 !. &urchase orders !!. actory orders !!!. 9eceiving documents !-. #aterial re8uisitions

    A) ! and !! only. B) !! and !- only. C) ! and !- only. ) !$ !!$ !!!$ and !-.The correct answer is ). All of the answers add no value to the customer and should beeliminated. This can be done through the use of information technology.

    Question #: 2$hich of the following would be considered waste in a Q!T environment0 !. !nspection !!. #aterial movements

    !!!. Ac(nowledgements !-. !nvoices A) ! and !! only. B) !! and !- only. C) ! and !- only. ) !$ !!$ !!!$ and !-.The correct answer is ). All of the answers add no value to the customer and should beeliminated.

    Question #: 21$

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    'uccessful employee involvement programs have which of the following attributes0!. The focus is on ma(ing the company more competitive.!!. 1mployees must understand how it can improve their wor( place.!!!. The monetary rewards are high. A) ! and !! only. B) ! and !!! only. C) !! and !!! only. ) !$ !!$ and !!!.

    Correct answer is A). The most successful employee involvement programshave recognition and wor( place improvement as rewards$ not large amounts of money.

    Question #: 211'mall group improvement activity teams are successful only if certain assumptions are achievedhich of the following assumptions are important to the team success0!. The smartest employees are involved in the teams.!!. &eople want to be involved in controlling their wor( place environment.!!!. &eople want recognition for their achievements. A) ! and !! only. B) ! and !!! only. C) !! and !!! only. ) !$ !!$ and !!!.The correct answer is C). @roup dynamics outweighs the re8uirement for thesmartest people to participate. &eople want to control their environment and receive recognitionfor achievement.

    Question #: 212hich of the following are the responsibilities of an '@!A team leader0 !. To ma(e decisions when the group cannot !!. To facilitate the groups activities !!!. To organie the groups activities

    A) ! and !! only. B) ! and !!! only. C) !! and !!! only. ) !$ !!$ and !!!.Correct answer is C). The leader is the group facilatator and organiesthe team but ma(es no decisions. Those should be made by consensus.

    Question #: 213hich of the following can be considered factors in the success of an '@!A0!. #anagement support and committment!!. Clear goals always established by management

    !!!. 1ducating and training all personnel!-. 9ecogniing and rewarding the group A) !$ !!$ and !-. B) !$ !!! and !-. C) !!$ !!!$ and !-. ) !$ !!$ !!!$ and !-.The correct answer is B). Clear goals can established early in the processby managementhowever$ goal setting should be done by the '@!A3s over time.

    Question #: 214

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    reduced$ and eliminate transactions which are not really needed.

    Question #: 21" company$ purchasing is conducted differently than in traditional companies. hich of thefollowing are true statements regarding the purchasing function in Q!T0!. 'cheduling must provide re8uirements which are reasonably accurate.!!. -endors should 4ust (eep inventory buffers at their facility to provide Qust*!n*Time service.!!!. The Qust*!n*Time process should be completed at the customer site first before including the

    vendor. A) ! and !! only B) ! and !!! only C) !! and !!! only ) !$ !!$ and !!!The correct answer is B). By implementing 4ust*in*time practices in the customer facility first$ thevendors can see first*hand how 4ust*in*time wor(s to reduce costs $increase fle2ibility$ and itshows them the customer is serious about improving operations. The vendor also needs to besure this is not an attempt to (eep the inventory at his facility which would not reduce costs$ onlyshift them.

    Question #: 21!One of the early steps in implementing Qust*!n*Time in the purchasing department is:

    A) Order the vendors to reduce their costs by 6K.B) Begin a process of reducing the number of vendors from which the company receivesproducts.C) 9edesign the purchase order form to ma(e it more efficient to use.) Fone of the above.The correct answer is B). &urchasing needs to reduce the number of vendors if they are going tohave a cooperative relationship with vendors. &urchase orders should be eliminated notredesigned and cost reductions should occur over time in an ongoing effort$customer andvendor$ to reduce costs.

    Question #: 21"'ome of the greatest savings to be achieved from a 4ust*in*time process can be found in white*collar areas. hich of the following would offer savings potential0 !. Transaction processing !!. #anagement layer reduction !!!. !ncreased information technology A) ! and !! only. B) ! and !!! only. C) !! and !!! only. ) !$ !! and !!!.Correct answer is ). All of the answers offer savings potential. !n order to compete in the global

    economy$ we will need to be 8uic(er$ more fle2ible and have accurate information available8uic(ly.

    Question #: 21!n a factory$ the most under*utilied resource generally is the: A) #achinery B) Building C) or(ers ) #aterialsThe correct answer is C). @enerally$ the human potential is the most under*utilied resource

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    which ma(es the results of empowerment so dramatic.

    Question #: 22$There are many obstacles to implementing Q!T in a manufacturing environment. hich of thefollowing obstacles would be considered most difficult to overcome0 A) istrust between vendor and customer B) Attitude of it can3t wor( here C) Conventional manufacturing performance measures

    ) 'et*up time reductionCorrect answer is C). All of the obstacles listed are difficult to overcome however$ manyperformance measures in manufacturing run contrary to Q!T operations. or e2ample$ machineand labor utiliation can be efficient by producing inventory which becomes obsolete or$purchase price variance measures cause purchasing to focus on price first rather than 8ualityand service. There are doens of measures by which manufacturing companies are run today.

    Question #: 221To implement Q!T successfully$ people must be motivated to focus their energy towards theimprovement process. hich of the following would provide this focus0 A) 'urvival of the company in competitive times B) !mproved pay for better profits C) !mproved benefits ) Better mar(et shareThe correct answer is A). Often times$ companies do not respond to competition until the survivaof the company is threatened. This provides the focus for people throughout the company torally behind a common cause. Infortunately$ many companies react too late and don3t survive.

    Question #: 222hich of the following can be included as benefits of cellular manufacturing0 !. 9educed order flow time !!. ,ower setup time !!!. ,ower material handling costs

    A) ! and !! only. B) ! and !!! only. C) !! and !!! only. ) !$ !!$ and !!!.The correct answer is ). All of the answers can be included as benefits in addition to improved8uality$ less wor(*in*process and improved 4ob satisfaction.

    Question #: 223!n moving a manufacturing organiation towards fle2ible manufacturing systems or computer

    integrated manufacturing$ the most important obstacle to overcome is: A) &ersonnel issues$ which arise from$ change B) Hardware compatibility across platforms C) 'oftware language barriers ) Fone of the aboveThe correct answer is A). &eople issues are the most important to resolve in successfullyimplementing a C!# strategy or any long*term improvement process.

    Question #: 224Companies have incompatible islands of automation caused by:

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    A) Hardware which cannot be integrated. B) 'oftware which can be integrated only with significant e2penditure. C) The lac( of a strategic C!# plan. ) All of the above.The correct answer is ). A strategic automation plan should be a critical part of the strategicbusiness plan. The automation plan should ensure hardware and software compatibility andaddress the people issues.

    Question #: 225!n C!# converted manufacturing plants$ the largest productivity gains come from: A) 9eductions in overhead B) 9educed labor force C) !mproved 8uality ) Fone of the aboveCorrect answer is C). Computer integrated manufacturing still re8uires people so reduced laborcosts should come from attrition or additional business. ,ayoffs will negatively impact the C!#conversion plan. Overhead costs will be higher with new technology so most gains will be in8uality improvement and a simplified process.

    Question #: 22ith the advance of technology in the factory$ cost accounting systems traditional approachesare outdated because:!. Overhead is absorbed based on labor.!!. !mportant costs$ such as 8uality defects are not ade8uately trac(ed.!!!. Overproduction is rewarded. A) ! and !! only. B) ! and !!! only. C) !! and !!! only. ) !$ !! and !!!.The correct answer is ). !n a plant of high*tech e8uipment$ labor could have little directcontribution to production. Basing overhead on this base would be irrelevant. Overproduction

    can provide transient profits by inflating ending inventory and absorbing costs incorrectly.

    Question #: 22!Target costs can be best defined by which of the following0!. The final costed bill of material.!!. The product cost ob4ective necessary to achieve a targeted mar(et share.!!!. They are usually less than the standard cost. A) ! and !! only. B) ! and !!! only. C) !! and !!! only. ) !$ !! and !!!.

    Correct answer is B). Target costs are costs which need to be achieved to reach certain mar(etshare levels. hile products may be introduced at one price level$ cost reductions will allowproducts to be priced more competitively to gain mar(et share while maintaining margins.

    Question #: 22"The acronym$ J$ stands for: A) Juality$ unction and esign B) Juality unction eployment C) Juantitative unctional isplay ) Fone of the above

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    The correct answer is B). J$ or Juality unction eployment is a process whereby the wantsand needs of the customer are carried throughout the organiation using cross functional teamsThe customer wants are matched to the company strategies/manufacturing strategies to meetthose wants.

    Question #: 22le2ibility in manufacturing is very important but is a relatively new concept in which measureshave not evolved or been accepted.

    A new wor( team established in your factory starts wor(ing on a pro4ect which you$ asmanagement$ believes is of little conse8uence to your business. ou should:A) 9edirect their activities to more useful endeavors.B) 1ncourage them through incentives to redirect their effortsC) ,et them wor( on their pro4ect.) Fone of the above.The correct answer is C). Few wor( teams will wor( on seemingly frivolous pro4ects to learn theprocess. These pro4ects are important to the team and management may not be in touch withthe business. As the process developes the team will be more comfortable with bigger pro4ects.

    Question #: 23$hich of the following are obstacles to realiing benefits from computer integratedmanufacturing0 !. C!# is not a part of the strategic plan. !!. Cost patterns change with C!#. !!!. Traditional performance measures are no longer valid. A) ! and !! only. B) ! and !!! only. C) !! and !!! only. ) !$ !! and !!!.The correct answer is ). All are obstacles to achieving the benefits possible from C!#. !tre8uires new measurements$ as the traditional ones are no longer appropriate.

    Question #: 231A critical element in a fle2ible manufacturing system is: A) 'oftware B) Hardware C) &eople ) Fone of the above.The correct answer is A). 'oftware is the integration which allows the fle2ibility of the factorybetween all the e8uipment. !t provides the base to operate as one system.

    Question #: 232hich of the following are reasons #' pro4ects do not reach their potential benefits0

    !. !t is not fle2ible enough nor an integrated system.!!. &eople do not want the system.!!!. &roducts produced on the #' do not provide a good return on capital used. A) ! and !! only. B) ! and !!! only. C) !! and !!! only. ) !$ !! and !!!.The correct answer is B). !f the #' is not fle2ible enough or if it is not integrated as one system$it will not reach its potential. Additionally$ if product demand is poor for the products producedon the #'$ the cost to produce those units will be high. urther #' development will be

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    8uestioned.

    Question #: 233Juality unction eployment$ the process has which of the following as the focal point0 A) esign B) &rocess evelopment C) Customer needs and wants ) Fone of the above

    Correct answer is C). The customer3s needs and wants drives the process. J is a structuredprocess for focusing on the customer so the product definition is enhanced.

    Question #: 235@roup technology offers several benefits. These include: !. 'horter manufacturing lead times !!. !ntroduction of new technology !!!. ,ess wor( in process inventory. A) ! and !! only. B) ! and !!! only. C) !! and !!! only. ) !$ !! and !!!.Correct answer is ). @roup technology allows shorter manufacturing time$ less wor( in processinventory$ improved process and product design$ and the introduction of new technology into thefactory. Deep in mind$ however$ that new technology alone will not drive benefits without peoplesupporting it.

    Question #: 23Carousels are automated storage and retrieval systems which offer which of the followingbenefits0 !. 9elatively low maintenance costs !!. le2ibility in e2pansion !!!. 9elatively high return on investment

    A) ! and !! only. B) ! and !!! only. C) !! and !!! only. ) !$ !! and !!!.Correct answer is ). All are benefits of a carousel type A'/9'. Because the investment is lowerthan large scale A'/9' systems$ the return on investment is usually higher. Because they areless complicated than large A'/9' systems$ maintenance is lower.

    Question #: 23!!n a continuous flow manufacturer$ manufacturing planning and control systems must be able toaccommodate which of the following operation0

    !. Handling of by*products !!. Assembly operations !!!. 'alvage materials which must be re*processed A) ! and !! only. B) ! and !!! only. C) !! and !!! only. ) !$ !! and !!!.The correct answer is B). #anufacturing planning and control systems need to handle operationsuni8ue to the continuous flow manufacturer such as$ by*products which occur and salvagematerials which can be processed further or sold to others.

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    Question #: 23"!n beginning to implement automation in the factory$ which of the following would generally bethe best place to start0

    A) One cell in a pilot area.B) One machining center to try.C) An overall automation master plan to guide implementation of the various software/hardwareinstallations.

    ) Fone of the above.Correct answer is C). 9ather than implementing narrow scope cells or machine centerscompanies should start with an overall plan with e8uipment installation according to the plan.This insures that the installation of cell$ machine centers or larger scope pro4ects"software/hardware) follow a plan.

    Question #: 23An e2pert system is:A) A pc program for comple2 data manipulation.B) A program that models a human e2pert for the area in which the program was written.C) A mainframe database system which allow data e2tracts to be used for decision support.) Fone of the above.Correct answer is B). 12pert systems simulate human e2pert decision ma(ing.

    Question #: 24$hich of the following are common to all e2pert systems0 !. Dnowledge base !!. !nformation storage facilitator !!!. !nference engine A) ! and !! only. B) ! and !!! only. C) !! and !!! only. ) !$ !! and !!!.

    The correct answer is B). 12pert systems$ which thin( the way human e2perts do$ all have a(nowledge base and a inference engine. The (nowledge base stores the (nowledge of humane2perts and the inference engine reviews the rules in the (nowledge base and ma(es the finaldecision.

    Question #: 241!n which of the following areas are e2pert systems most appropriate0!. Tas(s where the decisions are from broad based (nowledge.!!. Tas(s in which decisions are made from a narrow (nowledge base.!!!. or( in areas where the (nowledge of many e2perts would be too e2pensive. A) ! and !! only.

    B) ! and !!! only. C) !! and !!! only. ) !$ !! and !!!.The correct answer is C). 12pert systems are best used for narrowly focused decisions or inareas where it would be too e2pensive to gather e2pert3s information for a decision.

    Question #: 242hen a fle2ible manufacturing system is implemented$ wor(ers s(ill levels can be reduced. Theadvantages in doing this are:!. ,ess e2pense for low s(ill wor(ers.

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    !!. or(ers will feel responsible for ensuring the system functions well.!!!. The wor( force will shrin( causing the union to lose power. A) ! and !! only.

    B) ! and !!! only. C) !! and !!! only. ) !$ !! and !!!.The correct answer is B). here wor(ers s(ill levels are lowered$ perceived advantages are

    lower labor e2pense and a wea(er union. However$ wor(ers will not feel responsible in factorieswhere their s(ills have been replaced by #'.

    Question #: 243!n implementing group technology$ one of the most difficult problems to resolve is:A) hat type of machines to purchase. B) How to group products and machines. C) How the material handling will occur between the groups. ) Fone of the above.The correct answer is B). &articularly in comple2 environments with many parts and machines$grouping the parts and machines in the most optimum manner can be very difficult.

    Question #: 244@roup technology is installed most fre8uently in: A) low shops B) 9epetitive manufacturers C) Qob shops ) Fone of the above.The correct answer is C). Qob shops offer the greatest potential for improvement from grouptechnology because of the shorter cycle times and improved set up times which result.

    Question #: 245The coding and classification of parts in a group technology pro4ect provid