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A functioning MRP system is required prior to adopting lean planning and control systems.

A) True
B) False

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A production system uses kanban cards to control production and movement of parts. One work center uses an average of 40 pieces per hour of a certain part. Standard containers hold 10 parts. The cycle time for parts containers is about 36 minutes. Management has assigned an efficiency factor of .20 to this work center. How many containers should be used to support this operation?

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Having a vendor be responsible for managing the restocking of inventory is what is meant by the term:


A) JIT II.
B) MRP II.
C) SCM I.
D) EOQ III.
E) POQ II.

F) A) and B)
G) A) and E)

Correct Answer

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The ultimate goal of lean operations is a system characterized by the smooth, rapid flow of materials.

A) True
B) False

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Lean systems often rely on a method of overhead allocation known as:


A) direct-labor allocation.
B) capital-charge allocation.
C) mixed-model accounting.
D) activity-based costing.
E) indirect-labor allocation.

F) A) and B)
G) A) and C)

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Lean systems typically require that suppliers be able to provide large lots at periodic intervals.

A) True
B) False

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Preventive maintenance will eliminate the need to carry supplies of spare parts.

A) True
B) False

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