Posted: July 19th, 2016

The small lot-sizing policy works well in a situation where both holding costs and setup costs are high?

6. Lean operations are unable to easily handle changes of output or product mix.
True False
FALSE
Volume or product mix changes can easily undermine a system being operated according to lean principles.
7. In the lean philosophy, producing more than two order quantities represents waste.
True False
FALSE
Producing one order quantity in advance of demand represents waste.
8. The four building blocks of lean operations are: product design, process design, personnel/organizational elements, and manufacturing planning and control.
True False
TRUE
These are the building blocks of lean operations.
9. Fast and simple are two common threads that run through the four building blocks of lean operations.
True False
TRUE
Streamlined and error-proof are lean ideals.
10. Value-stream mapping is a technique focused on finding new ways of adding value for critical stakeholders such as customers.
True False
FALSE
Value-stream mapping is a visual tool used to systematically examine the flow of materials and information.
11. If a firm’s product mix is 60% of product A and 20% each of products B and C, an optimal mix-model production schedule would be successive sequences of AAABC.
True False
FALSE
An optimal schedule would be successive sequences of ABACA.
12. Quality and highly capable production systems are requirements for the successful implementation of lean operations.
True False
TRUE
These help prevent waste.
13. The small lot-sizing policy works well in a situation where both holding costs and setup costs are high.
True False
FALSE
Small lot-sizing is only workable when setup costs are low.
14. The use of small lot sizes in lean operations is in conflict with the EOQ approach since setup costs tend to be significantly higher than holding costs.
True False
FALSE
These are not in conflict, since with low setup costs the EOQ leads to small lot sizes.
15. A basic requirement for operating with low inventories in lean systems is that major system problems must already have been solved and new problems will be solved as they appear.
True False
TRUE
Unless these problems are solved, steps required to work with low inventories are economically infeasible.