Chapter 7 Review Quiz

In the 1980s, the Japanese reminded us that we needed to get leaner. Twenty years later, the Chinese rewrote the rules, becoming the world’s shop floor. What do these adaptations/evolutions exemplify?

• Extinction
• Darwin's Law
• Being unprofitable
• Six Sigma

What is the secret to establishing a lean manufacturing system?

• Process and culture
• Products and services
• Preparation and products
• Processes and power

Where you position equipment, defines the _________ and the number of times you must handle each item.

• Goods and services
• Supply levels
• Cost of materials
• Flow of materials

The EOQ is the ______ that minimizes the sum of _______ and ______ costs.

• Cycle time; lead-time; demand
• Order quantity; holding; set-up
• Cycle time; holding; set-up
• Order quantity; lead-time; set-up

Your goal in lean operations is to identify and eliminate ___________ wherever you can find it.

• Waste
• People
• Processes
• Defects

If you cultivate the right _____ and provide the right ______, you can bring human technology systems together to create ________ rivals can't copy.

• culture; resources; competition
• atmosphere; people; needs
• values; people; competition
• Culture; structure; value

Facility layout focuses on how you will use your ______ and _______ to make things efficiently.

• Negotiation techniques; pizazz
• Plant; equipment
• Time; effort
• People; equipment

Clueless Useless Stuff plans to sell 120,000 “Spring Cups” next year and is starting to plan schedules. Each cup requires one sunflower ornament. Each ornament costs $1.15. An order costs $10.00 and inventory carrying costs are 13% due to breakage and other factors. If the company runs production for the “Spring Cups” on 200 business days next year and the lead time is 5 days, what is the re-ordering point?

• 2555
• 6500
• 4500
• 3000