Lean Production/JIT

One of the benefits of increasing productivity is:

• more workers will be employed

• total production will increase with the same number of workers

• average costs will remain the same

• fewer raw materials will be needed to produce the same level of output

Which one of the following is the best definition of 'an increase in efficiency'?

• higher output levels than last year

• lower total costs of production

• fewer workers employed but output level remains the same

• 10% more workers employed and output is also rises by 10%

In inventory ordering 'lead time' means:

• the time taken to deliver goods from the firm to the consumer

• the time between ordering inventories and their delivery

• the time taken to produce goods after the raw materials arrive

• the time taken for inventories to fall from maximum level to the reorder level

Which one of the following would be an example of 'lean production'?

• producing a greater variety of goods with an increased workforce

• holding very low stock levels such as with Just-in-Time methods

• making smaller quantities of goods than previously

• buying the latest equipment to increase output even though it is not used all of the time

Which one of the following is NOT considered to be a waste?

• over production

• excess inventory

• over processing

• higher productivity

Which one of the following is NOT a benefit of lean production?

• overcrowded work area

• saves cost

• unit costs are reduced

• less risks of damage to stocks and equipments

Effective lean production requires all of the following except:

• good relations with suppliers

• wastage of resources

• trust between management and employees

• a culture of quality assurance

Lean production is an approach to production developed by Toyota, Japan

• TRUE

• FALSE