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Exam 27: Lean Manufacturing and Activity Analysis

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Question 31

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Costs of failing to control quality include prevention costs and external failure costs.

A) True
B) False

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Question 32

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A nonfinancial measure is operating information that has not been translated into dollars.

A) True
B) False

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Question 33

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Which of the following is an objective of lean manufacturing?

From the provided schedule of activity costs, determine the external failure costs.

Match each of the following quality control activities with the appropriate classification (a or b). -Reworking defective product A)Value-added B)Non-value-added

All lead times are considered to be value-added.

Prevention costs and appraisal costs are considered costs of controlling quality.

Sifton Electronics Corporation manufactures and assembles electronic motor drives for video cameras. The company assembles the motor drives for several accounts. The process consists of a lean cell for each customer. The following information relates to only one customer's lean cell for the coming year. For the year, projected labor and overhead was $7,370,000 and materials costs were $28 per unit. Planned production included 4,000 hours to produce 27,500 motor drives. Actual production for August was 1,600 units, and motor drives shipped amounted to 1,380 units. Conversion costs are applied based on units of production -From the foregoing information, determine the cell conversion cost rate.

Match each of the following quality control activities with the appropriate classification (a or b). -Design engineering A)Value-added B)Non-value-added

In a pull manufacturing system, production is based on actual customer orders.

Which of the following are features of lean manufacturing? a. Maintaining excess inventory to ensure that products will always be available b. Cross-training of employees c. Giving employees additional authority and responsibility d. Product-oriented layout e. Increased setup time

Match each of the following quality control activities with the appropriate classification (a or b). -Inspecting finished goods A)Value-added B)Non-value-added

Reducing wait time is directly linked to reducing inventory.

Setups are a significant time-consuming activity in traditional production environments.

Inventory reduction is a(n) _____ principle.

Schedule of Activity Costs ​ -Which of the following statements best describes the relationship among the costs of quality?

Costs of controlling quality include prevention costs and internal failure costs.

_____ manufacturing treats suppliers and customers as "arm's-length" independent entities.

What do lean manufacturers demand from their vendors?

Schedule of Activity Costs ​ -From the provided schedule of activity costs, determine the non-value-added costs.