Stock Control

Lean production is best defined as:

• a system of frequent improvement
• a production method that aims to reduce all forms of waste
• a production method dependent on automation
• a production method in which zero inventories are held
  by the firm

Capacity utilisation is defined as:

• the proportion of maximum potential output currently being produced
• full-capacity output
• maximum output ÷ current output × 100
• the level of output that is in balance with demand

What does Just-In-Time production help with?

• Creating waste
• Taking away jobs
• Increasing efficiency
• Making products heavier

Just-In-Time production can be used to by car manufacturers, why?

• Helps to limit number of cars in storage
• Helps to increase the number of parts made

Lean manufacturing is when ...

• We design and make things smaller
• We design and make things to be better at assembly
• We design and make things to reduce waste
• We design and make things that look thin

Why would a company choose Just-In-Time manufacturing?

• Better for the environment
• Worse for the environment
• Better for the aesthetic qualities
• Worse for the aesthetic qualities

Which of the following statements combine to form a valid definition of lean manufacturing? You may pick more than one answer. Lean manufacturing…

• is a rigidly defined set of steps to follow.

• focuses on reducing waste.

• is a set of tools and philosophies.

• focuses on automation of production.

Which of the following wastes occur as a result of overproduction? You may pick more than one answer

• Insurance costs are higher.

• More space is required to store excess product.

• Handling and management costs are increased.

• Large quantities of parts can be made obsolete simultaneously.

The basic formula of business is Profit = Sales – Expenses. Lean manufacturing aims to:

• Reduce expenses

• Increase sales

• Balance sales and expenses

• Increase expenses

In lean production a business aims to use cheaper materials?

• True
• False