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Exam 27: Lean Manufacturing and Activity Analysis

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Question 61

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Actions that transform a traditional manufacturing environment to a lean environment include all of the following except

A) form partnerships with reliable suppliers
B) reorganize manufacturing around products rather than processes
C) train employees to perform various operations
D) increase raw materials and finished goods inventories

E) All of the above
F) A) and C)

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Question 62

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

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Question 63

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

Which of the following is an example of a nonfinancial measure of performance used in lean manufacturing?

With lean manufacturing, employees are trained to be experts in one operation.

Christmas Express makes wreaths in batch sizes of 12. The cutting and assembly process takes 8 minutes per wreath, and the decorating process time is 10 minutes per wreath. It takes 12 minutes to move the wreaths from the cutting and assembly process to the decorating process.​ a. Compute the value-added, non-value-added, and total lead times of the wreath process. b. Compute the value-added ratio. Round to one decimal place.

Schedule of Activity Costs ​ -From the provided schedule of activity costs, determine the external failure costs.

_____ manufacturing principles emphasize quality and zero defects.

From the provided schedule of activity costs, determine the (a) prevention and (b) appraisal costs.

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

Lead time reduction can be a cost-saving goal for any processed item.

In a lean environment, process problems are less visible than they are in a traditional environment.

Which of the following is best suited to providing timely and focused performance information?

With lean manufacturing, financial accounting information is used more often for long-term operating decisions and nonfinancial measures are used more often for day-to-day decisions.

Within-batch wait time increases total lead time.

Schedule of Activity Costs ​ -From the provided schedule of activity costs, determine the total activity cost.

One inherent risk to using lean principles is that companies are at higher risk of inventory shortages during volatile times caused by strikes, adverse weather, etc., than when using traditional manufacturing principles.

In a push manufacturing system, production is based on estimated customer demand.

Schedule of Activity Costs ​ -When using lean principles and activity analyses with service businesses, the "product" is normally

In a lean accounting system, there are fewer transactions to record than there are in a traditional accounting system.