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Page 1 of 6

1. The overall objective of an integrated supply chain can best be described as the achievement of:

decreased lead time.

increased supplier partnerships.

an efficient flow of materials and information.

an efficient flow of production.

2. A company's cost of goods sold would be found on which of the following financial documents?

Balance sheet

Income statement

Cash flow statement

Performance statement

3. In an assemble-to-order production environment, the master production schedule contains:

standard items.

finished items.

raw materials.

subassemblies.

4. Which of the following manufacturing systems involves the creation of one unit or a small number of units?

Flow manufacturing

Intermittent manufacturing

Project manufacturing

Continuous manufacturing

5. After a quality improvement program has been successfully implemented, the greatest cost of controlling quality typically is the cost of:

failure.

appraisal.

prevention.

inspection.

6. In the income statement, the cost of goods sold is related to the:

sales dollars.

total inventory dollars.

marketing expenses.

manufacturing expenses.

7. Manufacturing overhead includes which of the following types of costs?

Interest expense

Supervision

Direct labor

Direct material

8. The question below is based on the following cost information:

What is the carrying cost?

14%

16%

20%

25%

9. Which of the following concepts could a firm implement to reduce defects?

Hansei

Jidoka

Muri

Heijunka

10. Inventory turns is an appropriate performance measure for which of the following functions?

Material control

Activity-based costing control

Total quality management

Flexible manufacturing

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11. The primary purpose of enterprise resources planning is to:

focus on the manufacturing function within an organization.

integrate an approach to business management.

use external knowledge to seek an internal advantage.

provide data protection along the supply chain.

12. Which of the following techniques typically eliminates common errors?

Practical kaizen training

Kaizen

Poka-yoke

Kanban

13. Which of the following characteristics is most distinctive of lean manufacturing?

Teamwork

Continuous improvement

Qualitative measurements

Bottom-line results

14. Which of the following manufacturing environments presents the greatest complexity in promising completion dates for customer orders?

Flow

Repetitive

Continuous

Intermittent

15. Which of the following types of layouts is most efficient in a lean production environment?

Islands

Connected islands

Functional layout

Cells

16. The lean production concept works best in which of the following manufacturing environments?

Make-to-order

Intermittent

Project

Flow

17. The principal objective of total quality management in manufacturing is to:

implement statistical process control.

meet the expectations of the customer.

reduce the costs of failure.

eliminate inspections.

18. Which practice focuses on root cause analysis?

Statistical process control

Five whys

Scatter diagram

Pareto chart

19. Which of the following production environment strategies requires unique design or significant customization?

Make-to-order

Assemble-to-order

Make-to-stock

Engineer-to-order

20. The theory of constraints is most effective when:

demand environments are unstable.

demand environments are stable.

the constraint cannot be managed easily.

the constraint cannot be identified easily.

Page 3 of 6

21. Which of the following manufacturing processes would be characterized by a narrow range of standard products, low direct labor costs, and a high level of technical support for manufacturing?

Jobbing

Intermittent

Flow

Project

22. Which of the following statements characterizes an intermittent manufacturing environment?

Work center load is predictable.

Routings for all products are the same.

Work centers are organized by function.

Kanban is the most appropriate scheduling method.

23. Gemba is a Japanese word meaning:

shop floor.

shop order.

shop packet.

shop traveler.

24. Which of the following terms refers to the practice of stopping the production line when a defect occurs?

Haiku

Arigato

Poka-yoke

Jidoka

25. Reducing set up time will affect item lead time and throughput in which of the following ways?

Lead time will increase, throughput will decrease

Lead time will increase, throughput will increase

Lead time will decrease, throughput will increase

Lead time will decrease, throughput will decrease

26. Which of the following tools is considered to be one of the seven quality tools?

Gantt chart

Input/output chart

Control chart

Capacity chart

27. A firm offers products configured from a large number of stocked options.

Which of the following production environments is the firm most likely to use?

Engineer-to-order

Make-to-order

Assemble-to-order

Make-to-stock

28. Which of the following items is considered an external failure cost?

Warranty cost

Incoming inspection

Prevention cost

Appraisal cost

29. Which of the following is a graphical representation of a frequency distribution?

Cause-and-effect diagram

Pareto analysis

Scatter diagram

Histogram

30. Which plant type describes a product at one stage that can be transformed into several distinct products at the next stage (divergent points)?

A-Plant

I-Plant

T-Plant

V-Plant

Page 4 of 6

31. Which of the following issues would be of greatest concern for a company choosing to reduce its finished goods inventory?

Long production changeover time

Customer service expectations

Product quality requirements

Product shelf life constraints

32. Which of the following factors is included in cost of goods sold?

Revenue

General and administrative expenses

Overhead

Standard cost

33. Having the needed materials within easy reach of a subassembly process eliminates waste of:

motion.

transportation.

making defects.

stocks.

34. Having bolts and tools at the point of use on the automobile assembly line eliminates the waste of:

waiting.

overproduction.

making defects.

stocks.

35. A production rate based on customer demand is called:

cycle time.

tact time.

lead time.

queue time.

36. Which of the following types of manufacturing processes would tend to have the lowest work in process (WIP) inventory?

Project

Intermittent

Batch

Flow

37. An electronic board that provides visibility on the production floor is:

andon.

anova.

ANS

alpha factor.

38. The heijunka philosophy can best be described as:

level production.

make-to-stock production.

a chase production strategy.

produce to stock production.

39. Which of the following situations is characteristic of a make-to-stock environment?

Work in process (WIP) represents the largest cost of inventory.

The impact of technology on the production process will be large.

The master schedule is stated at the finished product level.

Customer involvement is typically very high.

40. Which of the following factors is most likely to affect the demand for a company's services or products?

The sales and operations plan

Demand forecasting

Resource availability

Economic conditions

Page 5 of 6

41. Which of the following describes a competitive characteristic that a firm must exhibit to be considered as a supplier in a market?

Marketing research

Manufacturing automation

Order qualifier

Order winner

42. The question below is based on the following information:

What is the forecast for period 34 if a simple three-period moving average is used?

312

313

318

325

43. Which of the following statements is true regarding the concept of independent demand?

These items are usually raw materials.

The requirements for these items are usually forecasted.

The demand for these items must be calculated.

The demand for these items is related to demand for other items.

44. Which of the following factors most likely will impact the demand for a firm's products or services?

Forecast accuracy

Order processing system

Competition

Planning horizon

45. The contribution made by an operation to the final usefulness of a product is known as:

the customer service level.

value-added.

the cost of quality.

an order winner.

46. Characteristics that cause customers to consider a company's products or services are called:

order qualifiers.

order winners.

product configurations.

product specifications.

47. When demand is uncertain, what is the most appropriate action to take?

Recalculate safety stock

Increase order quantity

Change method of transportation

Increase number of warehouses for distribution

48. An order winner is a competitive characteristic that:

is universal between customers and markets.

differentiates among potential customers.

a company must exhibit to be considered a potential supplier.

a company must exhibit to gain new sales.

49. Service parts needs are most often determined by:

bills of material explosion.

forecasts based on prior demand.

material requirements planning (MRP) logic calculations.

analysis of lead-time requirements.

50. Which of the following functional areas decides the product to be supplied and the customers to be served?

Engineering

Finance

Manufacturing

Marketing

Page 6 of 6

51. Which of the following items is a source of independent demand?

Customer orders for finished products

Subassembly requirements from material requirements planning

Raw material requirements from material requirements planning

Protective packaging for shipping customer orders

52. Which of the following calculations is a major component that is used with extrinsic forecasting?

Moving average

Exponential smoothing

A seasonal index

An economic indicator

53. The question below is based on the following information:

What is the mean absolute deviation of demand for the data?

101

54. Which of the following forecasting techniques reviews a company's sales history?

Qualitative

Delphi

Extrinsic

Intrinsic

55. Which of the following forecasting techniques eliminates the need to keep months of historical data?

Exponential smoothing

Seasonal index

Delphi

Trend

56. A 5-year decline in demand for diapers most closely represents which of the following types of forecast patterns?

Irregular

Cyclic

Trend

Seasonal

57. Which of the following smoothing constants places the most weight on the old forecast?

0.4

0.3

0.2

0.1

58. Which demand management activity includes processing a customer request and making material available for production or shipping?

Forecasting

Order processing

Providing available-to-promise dates

Communicating with the marketplace

59. Which of the following forecast inputs is considered to be intrinsic data?

Demographic

Econometric

Historical sales

Market survey

60. A primary purpose of Quality Function Deployment is to:

calculate performance limits.

determine marketing strategies.

direct product design.

set pass/fail criteria.

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