TRUE or FALSE: ( select the one correct response )
16. According to learning curve theory, every doubling of total output will
produce a constant percentage decrease in labor time per unit, until a
plateau is eventually reached.
TRUE FALSE
17. The pull method is when the production of an item begins in advance of
customer needs.
TRUE FALSE
18. JIT systems can be employed in service sector operations.
TRUE FALSE
19. One benefit of a JIT system is that it reduces inventory space requirements.
TRUE FALSE
20. Kanban cards must be used to order from outside vendors in JIT
systems.
TRUE FALSE
21. One way of creating reserve capacity in a JIT system is to operate its
equipment at 80% to 90% of maximum speed.
TRUE FALSE
22. In JIT systems, the trays, among other purposes, are utilized for quality
control.
TRUE FALSE
-2-
23. In JIT, it is desirable to convert as many external setup activities into
internal setup activities as possible.
TRUE FALSE
24. The rewards system in JIT is geared toward the performance of the
individual worker, as opposed to the group.
TRUE FALSE
25. In learning curve theory, the prototype unit becomes the “base” or reference
unit.
TRUE FALSE
26. The effects of labor policies, layout improvements, equipment redesign, and
worker training are all carefully identified, measured, and factored into the
learning curve.
TRUE FALSE
27. The learning index ( or rate ) can be identified under both the natural
logarithm and ‘base 10’ logarithm calculations:
TRUE FALSE
28. In learning curve models, a production unit may be one (1) bolt, screw,
fastener, or component.
TRUE FALSE
29. The “pull” system is employed by both the parent firm and its external
suppliers.
TRUE FALSE
30. The number of authorized trays/bins for each part, subassembly, or material,
might be based on several end product’s daily demands.
TRUE FALSE
-3-
31. Under the kanban version of assembly line balancing, the line is balanced
once or twice per day.
TRUE FALSE
32. When a user center has received all of its parts, assemblies, or materials
to meet current needs, it returns the empty tray(s) to its provider center
with a move or production card attached.
TRUE FALSE
33. In the “ pull “ system, there is a delicate balance between market
demand, production scheduling, and vendor resupply activity.
TRUE FALSE
34. Keiretsu calls for horizontal and vertical integration within a
particular industry, by one or several Japanese firms working
together.
TRUE FALSE
35. Daily demand for a particular product’s sub-assembly is 30 units,
and its lead time is one (1) hour. The number of authorized com-
partments for its kanban tray is four (4). Safety stock for this
subassembly has been set at five (5) units. The authorized number
of trays for this item will be:
a. 0
b. 3
c. 5
d. 7
36. Kanban trays/bins/totes are custom designed to carry a particular part,
assembly, or material.
TRUE FALSE
37. In JIT systems, safety stocks are designed to meet unexpected increases
in market demand.
TRUE FALSE
-4-
38. In JIT systems, all of the original inventory accounts are eliminated over
time.
TRUE FALSE
39. Setup times and setup costs are critical inputs for development of cycle
times between pairs of work centers.
TRUE FALSE
40. In Kanban systems, the assembly line is rebalanced each time another
product’s production is started.
TRUE FALSE
41. Short-term surges in product demand can be temporarily met by
‘abandoning’ JIT.
TRUE FALSE
42. Firms should have comprehensive plans for addressing operational
problems, as inventories are systematically reduced.
TRUE FALSE
43. Small batch sizes help achieve a uniform distribution of work-in-process
inventory among the work and supply centers.
TRUE FALSE
44. If setup times are reduced, smaller batch sizes will automatically be
achieved at all work and supply centers.
TRUE FALSE
45. Standard task times must be developed under the Kanban system.
TRUE FALSE
-5-
46. Small batch sizes increase the number of setups as well as total setup
costs and time.
TRUE FALSE
47. At the global market level, individual product demand is essentially
unchanged on a day to day basis.
TRUE FALSE
48. JIT systems employ rigidly defined job descriptions.
TRUE FALSE
49. JIT suppliers may be involved in product design.
TRUE FALSE
50. Machine design in JIT systems should be kept as simple as possible
for easier maintenance and higher reliability.
TRUE FALSE
