Chapter 7: Lean Systems

Multiple Choice

1. JIT is applies to
a) only the manufacturing organization
b) only the service organization
c) both the manufacturing and service organizations
d) only the production portion of manufacturing and service organizations
e) all of the organization except the marketing division

Ans: c
Section Ref: Introduction
Level: moderate

2. JIT considers waste anything that

a) Fits in a waste basket
b) Reduces production capacity
c) Has been discarded
d) Cannot be recycled
e) Does not add value

Ans: e
Section Ref: The Philosophy of JIT
Level: moderate

3. JIT can be traced back to the early 1900’s but no one can argue that the philosophy gained
worldwide prominence
a) at the close of WWII
b) in the 1950s
c) in the 1960s
d) in the 1970s
e) in the 1980s

Ans: d
Section Ref: The Philosophy of JIT
Level: moderate

4. The philosophy of JIT

a) Originated in Japan
b) Was operational at Henry Ford's complex in 1920's
c) Is a production planning system
d) Has received little attention in the US
e) Focuses on direct control of worker activities by management

Ans: a
Section Ref: The Philosophy of JIT
Level: easy

5. The broad view of JIT is now often termed __________________________.

a) vendor-managed inventory
b) business process reengineering
c) lean production
d) cycle time management
e) e-distribution

Ans: c
Section Ref: The Philosophy of JIT
Level: easy

6. In the broad view of the organization everyone should have

a) the same job duration
b) the same retirement plan
c) the same job description
d) the same view of serving the customer
e) a narrow view of the organization that includes only their assigned tasks

Ans: d
Section Ref: The Philosophy of JIT
Level: moderate

7. The central belief of the JIT philosophy is

a) Quality must be emphasized
b) Use of Kanban
c) Elimination of waste
d) Minimize inventory
e) Save money

Ans: c
Section Ref: The Philosophy of JIT
Level: easy
8. Which of the following is characteristic of the JIT philosophy?
a) Inventories are an asset
b) Lot sizes are optimized by formula
c) Tolerate some scrap
d) Elimination of waste
e) Rigidity

Ans: d
Section Ref: The Philosophy of JIT
Level: easy

9. Beliefs that help define the JIT philosophy include all of the following except
a) Simplicity
b) Visibility
c) Flexibility
d) Push production
e) Continuous improvement

Ans: d
Section Ref: The Philosophy of JIT
Level: moderate

10. An employee who will not help a customer because “it is not my job” violates the JIT belief
of
a) Simplicity
b) A broad view of operations
c) Continuous improvement
d) Visibility
e) Pull production

Ans: b
Section Ref: The Philosophy of JIT
Level: hard

11. JIT was based on the need for

a) survival
b) waste elimination
c) better working conditions
d) consistent application of policies
e) consistent supplier performance

Ans: a
Section Ref: The Philosophy of JIT
Level: hard
12. Kaizen is a Japanese term referring to __________________________.
a) just-in-time production
b) continuous improvement
c) employee involvement
d) concurrent engineering
e) simplicity

Ans: b
Section Ref: The Philosophy of JIT
Level: moderate

13. An improvement tool that utilizes cross-functional teams to plan and deliver improvements
to specific processes during two- or three-day marathon sessions is called a
___________________________.
a) kanban blitz
b) cross-functional blitz
c) short-term blitz
d) JIT blitz
e) kaizen blitz

Ans: e
Section Ref: The Philosophy of JIT
Level: moderate

14. JIT flexibility refers to

a) ability to modify sales figures
b) correct the bull whip effect
c) increase or decrease supplier deliveries on short notice
d) workers being able to perform many different tasks
e) managers being able to shift positions easy

Ans: d
Section Ref: The Philosophy of JIT
Level: moderate

15. Being able to keep costs low while changing the volume of production is an example of
a) Simplicity
b) Flexibility
c) Visibility
d) Continuous improvement
e) Total quality management
Ans: b
Section Ref: The Philosophy of JIT
Level: hard

16. Three basic elements work together to complete a JIT system: just-in-time manufacturing,
total quality management, and
a) Quality circles
b) Pull production
c) Minimizing inventory
d) Respect for people
e) Full utilization of capacity

Ans: d
Section Ref: Elements of JIT
Level: moderate

17. JIT is often mistakenly assumed to

a) refer to the final assembly schedule only
b) dictate the product standards specification
c) refer to only just-in-time manufacturing
d) be a core element of ISO 9000 requirements
e) be driven by the finance department long range spending plan

Ans: c
Section Ref: Elements of JIT
Level: moderate

18. By focusing on processes, JIT is able to achieve high-volume production of

high-quality, low-cost products.
a) Downstream
b) Upstream
c) Change-over
d) Gateway
e) Value-added

Ans: e
Section Ref: Elements of JIT
Level: moderate

19. The manufacturing process in JIT starts with the

a) Final assembly schedule
b) Schedules for individual machines
c) Vendor deliveries
d) Prioritization of lots
e) Forward scheduling

Ans: a
Section Ref: Elements of JIT
Level: hard

20. For the current month using JIT

a) The same amount of each product is produced in the same order each day
b) Production matches that of last month
c) Lot sizes are varied week-to-week
d) Production differs greatly from day to day
e) Production is primarily for next month’s sales

Ans: a
Section Ref: Elements of JIT
Level: moderate

21. JIT relies on a ______ that withdraws parts for a previous work cell and moves them to the
next.
a) Information technology system
b) coordination system
c) six sigma system
d) quality circle system
e) transportation system

Ans: b
Section Ref: Elements of JIT
Level: moderate

22. JIT is a system.

a) Pull
b) Push
c) Lead time
d) Preventive maintenance
e) Closed

Ans: a
Section Ref: Elements of JIT
Level: easy
23. JIT manufacturing cannot succeed if costs are too high.
a) Variable
b) Fixed
c) Set-up
d) Depreciation
e) Marginal

Ans: c
Section Ref: Elements of JIT
Level: moderate

24. The ultimate goal of JIT is to produce products in a lot size of

a) 100 or fewer
b) N=(DT(1+X))/C
c) The inverse of the carrying cost
d) One
e) The capacity of the factory

Ans: d
Section Ref: Elements of JIT
Level: moderate

25. Unlike JIT traditional quality control systems use

a) quality circles
b) quality plans
c) control charts
d) acceptable quality levels
e) quality applications

Ans: d
Section Ref: Elements of JIT
Level: moderate

26. According to JIT, is carried to cover up a wide variety of problems, such as

poor quality, demand uncertainty, and slow delivery.
a) Inventory
b) Excess capacity
c) A group of back-up workers
d) Spare equipment
e) Insurance

Ans: a
Section Ref: Elements of JIT
Level: moderate

27. According to JIT, by eliminating inventory we can clearly identify and work
on eliminating them.
a) Obsolete products
b) Malfunctioning machines
c) Grievances
d) Product imperfections
e) Problems

Ans: e
Section Ref: Elements of JIT
Level: easy

28. Before it is possible to operate successfully with JIT

a) Inventory space must be eliminated
b) Inventories must be reduced rapidly
c) Problems must be uncovered
d) Problems must be solved
e) Setup times must be increased

Ans: d
Section Ref: Elements of JIT
Level: hard

29. An important TQM concept is that quality is defined by the

a) Quality control group
b) Marketing department
c) Board of directors
d) Customer
e) Auditors

Ans: d
Section Ref: Elements of JIT
Level: moderate

30. The objective of quality at the source is not only to identify a quality problem, but also to
a) Determine its extent
b) Uncover its root cause
c) Rate its seriousness
d) Place blame
e) Categorize it
Ans: b
Section Ref: Elements of JIT
Level: hard

31. JIT considers to be a company’s most precious resource.

a) Capital
b) Productive equipment
c) Information
d) People
e) Vision

Ans: d
Section Ref: Elements of JIT
Level: moderate

32. In JIT the workforce is viewed as

a) another resource to be managed
b) another contractual obligation
c) a long-term asset
d) a short term asset
e) an asset that must be closely managed

Ans: c
Section Ref: Elements of JIT
Level: moderate

33. JIT believes in developing relationships with suppliers.

a) Long-term
b) Adversarial
c) Arms-length
d) Temporary
e) Distant

Ans: a
Section Ref: Elements of JIT
Level: moderate

34. are groups of workers who are responsible for every aspect of their
business.
a) Focus teams
b) Staff departments
c) Partnerships
d) Self-managed teams
e) Negotiators

Ans: d
Section Ref: Elements of JIT
Level: moderate

35. Traditional manufacturing operations are based on the assumption that

a) Overproduction is disastrous
b) Nice guys finish last
c) It is better to anticipate future requirements and plan for them
d) If you manufacture it, demand will increase
e) Inventory has no value

Ans: c
Section Ref: Just-In-Time Manufacturing
Level: hard

36. JIT uses a pull system where communication starts with either the customer or with the
_________ work station in the production line.
a) First
b) Bottleneck
c) Dominant
d) Most expensive
e) Last

Ans: e
Section Ref: Just-In-Time Manufacturing
Level: easy

37. With JIT there are two types of Kanban cards, production Kanban and
Kanban.
a) Buffer
b) Transaction
c) Withdrawal
d) Logistics
e) Sales

Ans: c
Section Ref: Just-In-Time Manufacturing
Level: hard
38. In JIT a Kanban card is used to signal
a) The need for more parts
b) A supplier needs assistance
c) A worker is overloaded
d) A machine is ready for preventive maintenance
e) Management is inspecting operations

Ans: a
Section Ref: Just-In-Time Manufacturing
Level: moderate

39. Without kanbans, the withdrawal and production of materials

a) can continue in a reduced manner
b) will not be well coordinated
c) cannot take place
d) would continue based on historical needs
e) would continue based on forecasted needs

Ans: c
Section Ref: Just-In-Time Manufacturing
Level: moderate

40. The number of kanbans or containers needed at a workstation is dependent on all except
which of the following?
a) the demand rate
b) the number of workers
c) the size of the container
d) the lead time
e) the safety stock level

Ans: b
Section Ref: Just-In-Time Manufacturing
Level: moderate

41. The system of Kanbans used to coordinate delivery of goods by suppliers can include all of
the following except
a) Filled containers delivered by the supplier
b) Purchase approvals by the production manager
c) Mail boxes for each supplier
d) Empty containers with a Kanban
e) Bar-coded Kanbans

Ans: b
Section Ref: Just-In-Time Manufacturing
Level: moderate

42. If it is desired to reduce the amount of inventory in the system, the number of Kanban cards
should
a) Be decreased
b) Be increased
c) Remain the same
d) Be calculated by formula
e) Remain the same, but container size should be increased

Ans: a
Section Ref: Just-In-Time Manufacturing
Level: moderate

43. Consider a workstation that can process 4 units per minute. It takes 2 hours to receive an
order from the previous station. The container size is 10 units. The factory sets safety stock at
20 percent of demand during lead time. How many kanbans are needed for the workstation?
a) 57.6
b) 48
c) 0.96
d) 9.6
e) 28.8

Ans: a (N=(DT+S)/C =(4 * 60 * 2 + .2 * (4 * 60 * 2))/10 = 57.6)

Section Ref: Just-In-Time Manufacturing
Level: moderate

44. Consider a workstation that can process 4000 units per hour. It takes 15 minutes to receive
an order from the previous station. The container size is 20 units. The factory sets safety stock
at 20 percent of demand during lead time. How many kanbans are needed for the workstation?
a) 16
b) 3600
c) 50
d) 10
e) 60

Ans: e (N=(DT+S)/C =(4000 * 15/60 + .2 * (4000 * 15/60))/20 = 60)

Section Ref: Just-In-Time Manufacturing
Level: moderate

45. Small lot production

a) Increases inventory
b) Decreases flexibility
c) Reduces setup
d) Increases excess processing
e) Shortens lead time

Ans: e
Section Ref: Just-In-Time Manufacturing
Level: hard

46. What is adjustment of a machine after making one product type so that production can begin
for another product type?
a) Level assembly schedule
b) Group technology
c) Setup
d) Cycle time
e) Automation

Ans: c
Section Ref: Just-In-Time Manufacturing
Level: easy

47. External setups

a) Are the same as single setup
b) Can be done while the machine is running
c) Are undesirable for small lot production
d) Are often contracted out
e) Are more common than internal setups in traditional manufacturing systems

Ans: b
Section Ref: Just-In-Time Manufacturing
Level: hard

48. Uniform plant loading involves

a) Large lots produced over several days
b) Making the same mix of products every day in small quantities
c) Large amounts of inventory
d) Making large changes in production to respond to changes in demand
e) Spreading production uniformly over several plants

Ans: b
Section Ref: Just-In-Time Manufacturing
Level: moderate
49. One aspect of flexible resources is
a) Use of multifunction workers
b) Relying on special equipment
c) Use of overtime
d) Leasing, rather than buying, equipment
e) Variable work schedules

Ans: a
Section Ref: Just-In-Time Manufacturing
Level: hard

50. Advantages of cell manufacturing using a U-shaped cell include all of the following except
a) Production efficiency with flexibility to produce a variety of parts
b) Easy reach and flexibility for workers
c) Higher worker satisfaction
d) No special material handling
e) Longer setup times

Ans: e
Section Ref: Just-In-Time Manufacturing
Level: moderate
51. Quality in just-in-time is centered on building quality into the
a) Product
b) Maintenance of equipment
c) Process
d) Distribution system
e) Workforce

Ans: c
Section Ref: Total Quality Management
Level: hard

52. Quality problems in manufacturing can come from many sources, including all of the
following except
a) Customer needs are not incorporated into the product design
b) Low quality materials from suppliers
c) Product specifications being ignored
d) Equipment problems from design of the production process
e) Operator error

Ans: c
Section Ref: Total Quality Management
Level: hard

53. What is the term that means giving workers authority to stop the production line when
quality problems are encountered?
a) Automation
b) Kaizen
c) Muda
d) Poka-yoke
e) Jidoka

Ans: e
Section Ref: Total Quality Management
Level: moderate

54. Poka-yoke means

a) Using color coding
b) Foolproofing
c) Using process control charts
d) Preventive maintenance
e) Undercapacity scheduling

Ans: b
Section Ref: Total Quality Management
Level: moderate

55. Regular inspections and maintenance designed to keep a machine operational is

___________ maintenance.
a) Preventive
b) Breakdown
c) Unscheduled
d) Emergency
e) Unnecessary

Ans: a
Section Ref: Total Quality Management
Level: moderate

56. According to JIT, workers should perform

a) system specification development
b) as directed by the supervisor
c) routine preventive maintenance activities
d) poka-yoke designs
e) quality program development

Ans: c
Section Ref: Total Quality Management
Level: moderate

57. Which of the following is not characteristic of preventive maintenance in JIT systems?
a) Keeping machines operational
b) Regular inspections of machines
c) Workers helping to maintain their own equipment
d) Operating machines properly
e) Perceiving breakdowns as an opportunity for continuous quality improvement

Ans: e
Section Ref: Total Quality Management
Level: hard

58. Something you would not expect to see in a just-in-time work environment is
a) Order
b) Clutter
c) Ample space
d) Tools in their place
e) Cleanliness
Ans: b
Section Ref: Total Quality Management
Level: moderate

59. Just-in-time organizations rely on employees to

a) Do what their boss tells them to do
b) Dress differently every day
c) Work together
d) File grievances
e) Be adversarial toward management

Ans: c
Section Ref: Total Quality Management
Level: moderate

60. Just-in-time relies on worker skills, meaning the ability of workers to

perform many different tasks on many different machines.
a) Natural
b) Verbal
c) Intuitive
d) Manual
e) Cross functional

Ans: e
Section Ref: Respect for People
Level: moderate

61. JIT production workers are expected to

a) Cover up quality problems
b) Ignore data
c) Take responsibility in getting to the root cause of quality problems
d) Blame problems on someone else
e) Have a poor attitude about quality

Ans: c
Section Ref: Respect for People
Level: moderate

62. JIT production workers

a) Keep data to themselves
b) Participate in team problem-solving activities
c) Do not understand data
d) Never use data
e) Rely on others to do data analysis

Ans: b
Section Ref: Respect for People
Level: moderate

63. The role of production employees in JIT includes all of the following except
a) Be actively engaged in improving the production process
b) Monitor quality
c) Record data
d) Follow clearly defined and limiting work rules
e) Act on the information they have

Ans: d
Section Ref: Respect for People
Level: moderate

64. Which of the following is not a characteristic of bottom-round management?

a) Consensus management by committees or teams
b) Participation in quality circles
c) Decision making starts with discussion at the bottom level
d) Lack of consensus
e) Employees volunteering to help solve quality problems

Ans: d
Section Ref: Respect for People
Level: easy

65. Which of the following is not a role of JIT management

a) creating a JIT culture
b) cost and information sharing
c) serving as coaches and facilitators
d) developing an incentive system
e) ensuring multifunctional training occurs

Ans: b
Section Ref: Respect for People
Level: easy

66. In Japan lifetime employment

a) Is a recent trend
b) Has had little impact
c) Is an ideal that is never achieved
d) Is true for everyone
e) Comprises a relatively small percentage of the total work force today

Ans: e
Section Ref: Respect for People
Level: hard

67. In a JIT environment, workers need to

a) Protect themselves from their boss’s whims
b) Be prepared to be reprimanded
c) Keep their ideas to themselves
d) Always work in pairs
e) Feel secure in their jobs

Ans: e
Section Ref: Respect for People
Level: moderate

68. With JIT a company’s relationship with its suppliers includes

a) Competitive bidding
b) Being in partnership with them
c) Buying parts from the cheapest supplier
d) Short-term relationships
e) Having as many suppliers as possible

Ans: b
Section Ref: Respect for People
Level: moderate

69. With regard to suppliers, JIT typically requires

a) Delivery of large lots at regular intervals
b) Buyer inspection of incoming goods and materials
c) Multiple sources from which to purchase
d) Information sharing
e) Buying parts from the cheapest supplier

Ans: d
Section Ref: Respect for People
Level: moderate
70. The benefits of long-term relationships with a small number of suppliers include all of the
following except
a) Always getting the lowest price
b) Focus on improving process controls
c) Greater accountability
d) Develop stable delivery schedules
e) Eliminate paperwork

Ans: a
Section Ref: Respect for People
Level: moderate

71. Which of the following is not a good approach for suppliers who are providing JIT services
to manufacturers?
a) Use the “push system” for deliveries
b) Locate near their customers
c) Have small warehouses near the manufacturing plant
d) Use standardized containers
e) Join together with other suppliers to help each other make small deliveries

Ans: a
Section Ref: Respect for People
Level: easy

72. The challenge for service operations is that they have to synchronize their __________ with
demand.
a) accounting
b) finance
c) marketing
d) production
e) information systems

Ans: d
Section Ref: JIT In Services
Level: easy

73. In making specific changes to JIT manufacturing, which of the following steps should come
first?
a) reduce lot sizes and lead times
b) switch to pull production
c) reorganize workplace
d) reduce setup times
e) implement layout changes
Ans: c
Section Ref: Implementing JIT
Level: hard

74. Which of the following is not considered to be a key element of JIT supplier relationships?
a) suppliers viewed as internal factory
b) use of single-source suppliers
c) long-term supplier relationships developed
d) suppliers locate near customer
e) cost and information sharing

Ans: a
Section Ref: Benefits of JIT
Level: hard

True/False

1. JIT considers waste anything that does not add value.

Ans: True
Section Ref: The Philosophy of JIT
Level: hard

2. The broad view of JIT is now often termed lean production or lean systems.

Ans: True
Section Ref: The Philosophy of JIT
Level: easy

3. Often the best quality problem resolution solution involves a complex answer as the
organization is a complex organization.

Ans: False
Section Ref: The Philosophy of JIT
Level: easy

4. Continuous improvement is called kaizen by the Japanese.

Ans: True
Section Ref: The Philosophy of JIT
Level: moderate

5. An improvement tool that utilizes cross-functional teams to plan and deliver improvements to
specific processes during two- or three-day marathon sessions is called a kanban blitz.

Ans: False
Section Ref: The Philosophy of JIT
Level: moderate

6. With a kaizen system there is no excess production because the only products and quantities
produced are those specified by the kaizen.

Ans: False
Section Ref: Elements of JIT
Level: hard

7. JIT facilities are lacking in floor space.

Ans: False
Section Ref: Elements of JIT
Level: hard

8. Being able to keep costs low while changing the volume of production is an example of
flexibility.

Ans: True
Section Ref: Elements of JIT
Level: moderate

9. By focusing on value-added processes, JIT is able to achieve high-volume production of high-

quality, low-cost products.

Ans: True
Section Ref: Elements of JIT
Level: moderate
10. The manufacturing process in JIT starts with the final assembly schedule.

Ans: True
Section Ref: Elements of JIT
Level: moderate

11. JIT manufacturing cannot succeed if set-up costs are too high.

Ans: True
Section Ref: Elements of JIT
Level: moderate

12. According to JIT, by eliminating inventory we can clearly identify obsolete products and
work on eliminating them.

Ans: False
Section Ref: Elements of JIT
Level: moderate

13. JIT considers people to be a company’s most precious resource.

Ans: True
Section Ref: Elements of JIT
Level: moderate

14. There are two types of Kanban cards, production Kanban and withdrawal Kanban.

Ans: True
Section Ref: Just-In-Time Manufacturing
Level: hard

15. If it is desired to reduce the amount of inventory in the system, the number of Kanban cards
should be increased.

Ans: False
Section Ref: Just-In-Time Manufacturing
Level: moderate
16. External setups can be done while the machine is running.

Ans: True
Section Ref: Just-In-Time Manufacturing
Level: hard

17. Just-in-time organizations rely on employees to work together.

Ans: True
Response: See page 238
Level: moderate

18. Just-In-Time relies on cross-functional worker skills.

Ans: True
Section Ref: Respect for People
Level: moderate

19. Bottom-round management includes consensus management by committees or teams.

Ans: True
Section Ref: Respect for People
Level: easy

20. With regard to suppliers, JIT typically requires information sharing.

Ans: True
Section Ref: Respect for People
Level: moderate

21. Successfully implementing JIT requires that it be done as quickly as possible.

Ans: False
Section Ref: Implementing JIT
Level: easy
22. JIT concepts that are applicable to service organizations include use of multifunction
workers.

Ans: True
Section Ref: Implementing JIT
Level: moderate

23 The challenge for service organizations is synchronizing their production with demand.

Ans: True
Section Ref: Implementing JIT
Level: moderate

24. Services organizations cannot use the JIT philosophy to reduce cycle time.

Ans: False
Section Ref: Implementing JIT
Level: moderate

25. A key outcome of JIT is that organizational barriers are eliminated.

Ans: True
Section Ref. JIT and Lean Systems Across the Organization.
Level: moderate

Essay

1. The central belief of the JIT philosophy is elimination of waste) What are the other beliefs that
help define this philosophy?

Ans: broad view of operations, simplicity, continuous improvement, visibility and flexibility
Section Ref: The Philosophy of JIT
Level: moderate

2. Under the JIT belief of visibility, describe JIT facilities.

Ans: open and clean, with plenty of floor space; no clutter; everyone can see what everyone else
is doing; no one can hide extra inventory anywhere; an orderly environment; visibility
allows waste to be readily seen
Section Ref: The Philosophy of JIT
Level: hard

3. Describe the “kaizen blitz.”

Ans: This is an improvement tool that utilizes cross-functional teams to plan and deliver
improvements to specific processes during two- or three-day marathon sessions. This
process allows a small group of people to concentrate on a bit-size chunk of the problem for
a short period of time. Companies find that a kaizen blitz can quickly deliver dramatic and
low-cost improvements to processes.
Section Ref: The Philosophy of JIT
Level: hard

4. What is the formula to compute the number of kanbans needed to control the production of a
particular product (including the variable definitions)?

Ans: N = (DT + S) / C; where N = total # of kanbans or containers (one card per container), D
= demand rate at the workstation, T = the time it takes to receive an order from the previous
workstation, C = size of the container, and S = safety stock to protect against variability or
uncertainty in the system.
Section Ref: Just-In-Time Manufacturing
Level: hard

5. What are the advantages of cell manufacturing using a U-shaped cell?

Ans: production efficiency with flexibility to produce a variety of parts, easy reach and
flexibility for workers, higher worker satisfaction, and no special material handling
Section Ref: Just-In-Time Manufacturing
Level: hard

6. What are the responsibilities of production employees in JIT?

Ans: get to the root cause of quality problems, participate in team problem-solving activities, be
actively engaged in improving the production process, monitor quality, record data, and act
on the information they have
Section Ref: Respect for People
Level: hard
7. What are the key elements a JIT company’s relationship with its suppliers?

Ans: suppliers viewed as an external factory, use of single-source suppliers, respect for suppliers,
build long-term relationships, form a partnership with suppliers, share cost and other
information, work together to improve process controls, increased accountability on the part
of the suppliers, development of stable delivery schedules, suppliers may locate near the
company’s factory, and elimination of paperwork
Section Ref: Respect for People
Level: hard

8. What are the benefits of JIT?

Ans: increased flexibility, shorter lead times, increased productivity, improved quality, increased
machine utilization, lower production costs, reduced inventory
Section Ref: Respect for People
Level: moderate

9. What does a company need to successfully implement JIT?

Ans: a “champion” for JIT implementation, a shared vision of where the company is and where it
wants to go, top management must create the right atmosphere, reward systems to reward
ideas and team cooperation, quality improvements need to be made, reorganize the
workplace, reduce setup times, reduce lot sizes and lead times, make layout changes, switch
to pull production, and develop relationships with suppliers
Section Ref: Implementing JIT
Level: moderate

10. Discuss why implementation of a JIT will not start and end in definite time periods.

Ans: JIT is a gradual process that is never complete because improving performance is a never-
ending task.
Section Ref: Implementing JIT
Level: moderate

11. What JIT concepts are applicable to service organizations?

Ans: reductions in cycle times, use of multifunction workers, minimizing set-up times, parallel
processing, workplace organization, improved quality, and uniform facility loading
Section Ref: JIT In Services
Level: moderate
12. Describe how JIT affects the Accounting department.

Ans: Traditional accounting systems generally allocate overhead on the basis of direct labor
hours. This does not accurately describe the actual use of overhead. JIT relies on activity-based
costing to appropriately allocate overhead. In an ABC specific costs are identified and then
assigned to various types of activities. Overhead is then assigned to the jobs depending on how
many activities a particular job takes up.
Section Ref: JIT and Lean System Across the Organization
Level: hard

Problems

1. Frank James works for a production facility that makes car radios. His job is to insert the
integrated circuits and make sure that they work correctly. He is expected to handle 20 radios per
hour. The factory uses a Kanban production system with containers that hold four radios. It takes
60 minutes for Frank to receive the radios from the previous work station. How many Kanbans
are needed?

Ans: 5 (N = (DT+S)/C = 20 * 1 /4 = 5 No safety stock)

Section Ref: Just-In-Time Manufacturing
Level: easy

2. Matt Dillon works for a production facility that makes ball point pens. His job is to place the
spring on the central ink insert. He is expected to process 200 inserts per hour. The factory uses a
Kanban production system with containers that hold 50 inserts. It takes 30 minutes for Frank to
receive the inserts from the previous work station. How many Kanbans are needed?

Ans: 2 (N = (DT+S)/C = 200 * 1/2 /50 = 2 No safety stock, lead time converted to an hour basis)
Section Ref: Just-In-Time Manufacturing
Level: easy

3. Frank James works for a production facility that makes car radios. His job is to insert the
integrated circuits and make sure that they work correctly. He is expected to handle 20 radios per
hour. The factory uses a Kanban production system with containers that hold four radios. It takes
60 minutes for Frank to receive the radios from the previous work station. The factory sets
safety stock at 50 percent of demand during lead time. How many Kanbans are needed?

Ans: 7.5 (N = (DT+S)/C = [(20 * 1) + (.5 * 20 * 1)] /4 = 7.5)

Section Ref: Just-In-Time Manufacturing
Level: moderate
4. Matt Dillon works for a production facility that makes ball point pens. His job is to place the
spring on the central ink insert. He is expected to process 200 inserts per hour. The factory uses a
Kanban production system with containers that hold 50 inserts. It takes 30 minutes for Frank to
receive the inserts from the previous work station. The factory sets safety stock at 40 percent of
demand during lead time. How many Kanbans are needed?

Ans: 2.8 (N = (DT+S)/C = [(200 * ½) + (.4 * 200 * ½)] /50 = 2.8)

Section Ref: Just-In-Time Manufacturing
Level: moderate

5. Consider a workstation that can process 4 units per minute. It takes 10 minutes to receive an
order from the previous station. The container size is 10 units. The factory sets safety stock at
20 percent of demand during lead time. How many kanbans are needed for the workstation?

Ans: 4.8 (N = (DT+S)/C = [(4 * 60 * 10/60) + (.2 * 4 * 60 * 10/60)] /10 = 4.8 units/minute and
lead time converted to an hour basis)
Section Ref: Just-In-Time Manufacturing
Level: moderate

6. Consider a workstation that can process 2 units per minute. It takes 6 minutes to receive an
order from the previous station. The container size is 12 units. The factory sets safety stock at
20 percent of demand during lead time. How many kanbans are needed for the workstation?

Ans: 1.2 (N = (DT+S)/C = [(2 * 60 * 6/60) + (.2 * 2 * 60 * 6/60)] /12 = 1.2 units/minute and
lead time converted to an hour basis)
Section Ref: Just-In-Time Manufacturing
Level: moderate

7. Consider a workstation that can process 4 units per minute. It takes 2 hours to receive an
order from the previous station. The container size is 10 units. The factory sets safety stock at
20 percent of demand during lead time. How many kanbans are needed for the workstation?

Ans: 57.6 (N = (DT+S)/C = [(4 * 60 * 2) + (.2 * 4 * 60 * 2)] /10 = 57.6 units/minute converted
to an hour basis)
Section Ref: Just-In-Time Manufacturing
Level: moderate
8. Consider a workstation that can process 1060 units per hour. It takes 15 minutes to receive an
order from the previous station. The container size is 20 units. The factory sets safety stock at
20 percent of demand during lead time. How many kanbans are needed for the workstation?

Ans: 15.9 (N = (DT+S)/C = [(1060 * 15/60) + (.2 * 1060 *15/60)] /20 = 15.9 lead time
converted to an hour basis)
Section Ref: Just-In-Time Manufacturing
Level: moderate

9. Consider a workstation that can process 400 units per hour. It takes 3 hours to receive an
order from the previous station. The container size is 50 units. The factory sets safety stock at
10 percent of demand during lead time. How many kanbans are needed for the workstation?

Ans: 26.4 (N = (DT+S)/C = [(400 * 3) + (.1 * 400 * 3)] /50 = 26.4)

Section Ref: Just-In-Time Manufacturing
Level: moderate

10. Consider a workstation that can process 1200 units per hour. It takes 1.5 hours to receive an
order from the previous station. The container size is 40 units. The factory sets safety stock at
20 percent of demand during lead time. How many kanbans are needed for the workstation?

Ans: 54 (N = (DT+S)/C = [(1200 * 1.5) + (.2 * 1200 * 1.2)] /40 = 54)

Section Ref: Just-In-Time Manufacturing
Level: moderate

11. Frank’s umbrella corporation is designing a kanban system. They know that they are
expected to produce 100 umbrellas per hour. They’ve also determined that a key external
resource takes 30 minutes to deliver the required material once an order has been transmitted. To
start with they want to maintain a safety stock of 25 critical parts. Originally they want to start
with 3 kanbans. What container size should Frank’s umbrella company start with?

Ans: 25 (N = (DT+S)/C therefore C = (DT+S)/N = [(100 umbrellas/hr * 0.5/hr)+25] /3 = [50

umbrellas +25)] /3 = 54) = 25
Section Ref: Just-In-Time Manufacturing
Level: moderate

12. Raissa’s teapot firm is moving to a JIT system. One question they are trying to answer is
what level of safety stock they should maintain. They produce 240 teapots every four hours. The
teapot ceramic handle vendor will deliver a container containing 30 parts one hour after they
receive a request to ship. Raissa’s kanban system uses four containers. What should they
maintain as a safety stock?
Ans: 2 (N = (DT+S)/C therefore S = (N*C)/(D*T) = (4*30)/(240 tea pots/4 hours * 1 hour) = 2
Section Ref: Just-In-Time Manufacturing
Level: hard

Short Answer

1. What are the three major elements of JIT? ________________________,

________________________, and ________________________ .

Ans: just-in-time manufacturing, total quality management, and respect for people.
Section Ref: Elements of JIT
Level: moderate

2. What are three reasons that respect for people is important in JIT.
________________________, ________________________, and
________________________ .

Ans: JIT requires workers active participation, cooperation, ideas, willingness to cross train,
flexibility, good attitude, willingness to change, for example.
Section Ref: Elements of JIT
Level: hard

3. A work cell produces 100 units per hour. It takes 15 minutes to get packaging from the
previous workstation. Each container holds a dozen (12) units. Safety stock is 10% of demand
during lead time. How many kanbans and containers should be devoted to this product?
________________________

Ans: 2.29 (N = (DT+S)/C = [(100 * 15/60) + (.1 * 100 * 15/60)] /12 = 2.29)
Section Ref: Just-In-Time Manufacturing
Level: hard

4. Traditional production plans schedule ________________________ while JIT with Level

Scheduling uses ________________________ .

Ans: large batches at one time, small batches at many times.

Section Ref: Just-In-Time Manufacturing
Level: moderate
5. Materials and work in process move farther and more often under
________________________

Ans: traditional manufacturing.

Section Ref: Total Quality Management
Level: moderate

6. Name three ways that quality at the source includes more than manufacturing.
________________________ ________________________ ________________________

Ans: product design, process design, suppliers, stopping a production line when a problem
occurs.
Section Ref: Total Quality Management
Level: moderate

7. Scheduling two, 12-hour shifts and a 4-hour housekeeping and repair shift each workday is an
example of ________________________

Ans: preventive maintenance

Section Ref: Total Quality Management
Level: hard

8. Production employees in JIT setting record and visually display performance data like:
________________________

Ans: SPC charts, time since last unscheduled work stoppage, time since last injury
Section Ref: Respect for People
Level: hard

9. JIT supply chains often involve firms that ________________________

Ans: locate near each other.

Section Ref: Respect for People
Level: hard

10. JIT changes happen in sequence because ________________________

Ans: One of several reasons like: Some changes depend on, or are easier to implement after,
others. Trying to make all changes at once would overwhelm and demoralize the managers and
other employees.
Section Ref: Implementing JIT
Level: hard

11. Every organization is just one element of an ______ _____ ____

Ans: entire supply chain

Section Ref: The Supply Chain Link
Level: moderate

12. The principles of JIT need to be adopted by all members of a supply chain in order to have a
______ ____

Ans: full impact

Section Ref: The Supply Chain Link
Level: easy