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Lean systems often rely on a method of overhead allocation known as


A) direct-labor allocation.
B) capital-charge allocation.
C) mixed-model accounting.
D) activity-based costing.
E) indirect-labor allocation.

F) C) and D)
G) All of the above

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The lean philosophy suggests that workers are


A) assets.
B) liabilities.
C) interchangeable.
D) replaceable.
E) to be phased out.

F) C) and D)
G) A) and B)

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In the area of maintenance, the Pareto phenomenon is reflected in the fact that


A) all equipment justifies about the same expense.
B) a majority of equipment will justify considerable expense.
C) a few pieces of equipment will justify little expense.
D) a few pieces of equipment will justify considerable expense.
E) no piece of equipment will justify major expense; it's better to replace.

F) B) and C)
G) B) and E)

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A successful conversion to a lean system requires that the conversion


A) be done as quickly as possible.
B) begin at the start of the process and work forward.
C) convert vendors to lean as one of the last steps.
D) reduce setup times as one of the last steps.
E) all of the choices.

F) B) and D)
G) A) and D)

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Which of the following does not contribute to reduced setup time and cost?


A) standardized setup tools
B) standardized setup equipment
C) custom setup procedures for each product
D) use of multipurpose equipment or attachments
E) use of group technology

F) All of the above
G) C) and D)

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A production kanban card is used to signal that


A) there is a need to produce parts at the work center.
B) parts are ready to be moved to the next station.
C) there is a need to deliver parts to the next work center.
D) a machine has broken down and needs immediate attention.
E) a machine is ready for preventive maintenance.

F) A) and B)
G) A) and C)

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The kaizen philosophy applies to


A) employee development.
B) safety stock.
C) waste.
D) supply chain management.
E) MRP III.

F) A) and E)
G) D) and E)

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Which of the following is not characteristic of preventive maintenance in lean systems?


A) maintaining equipment in good operating condition
B) replacing partsthat have a tendency to fail before they fail
C) workers maintaining their own equipment
D) eliminating supplies of spare parts to reduce capital investment
E) perceiving breakdowns as an opportunity for improvement

F) None of the above
G) A) and B)

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___________ is most closely associated with breakdown maintenance.


A) Equipment adjustment
B) Equipment cleaning
C) Equipment inspection
D) Repair of broken parts
E) Replacement of worn parts

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

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In lean operations, a responsibility of the worker is to check the quality of their work.

A) True
B) False

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Potential costs of equipment breakdown do not include


A) loss of output.
B) cost of idle workers.
C) damage to other equipment.
D) replacement of worn parts.
E) injuries.

F) A) and E)
G) A) and B)

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Which of the following is not a benefit of small lot sizes in lean systems?


A) In-process inventory is considerably less.
B) Each product is produced less frequently.
C) Carrying costs are reduced.
D) There is less clutter in the workplace.
E) Inspection and rework costs are less.

F) B) and C)
G) C) and E)

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Suppose that for a particular piece of machinery, the frequency distribution of monthly breakdowns is as follows: Suppose that for a particular piece of machinery, the frequency distribution of monthly breakdowns is as follows:   The cost of a breakdown is $2,000, and the cost of a preventive maintenance program is $2,000 per month. If the preventive maintenance program is adopted, the probability of a machine breakdown is negligible. How much better off per month would the firm be if it adopted preventive maintenance? A) $100 worse off B) $200 worse off C) $100 better off D) $200 better off E) $2,000 better off The cost of a breakdown is $2,000, and the cost of a preventive maintenance program is $2,000 per month. If the preventive maintenance program is adopted, the probability of a machine breakdown is negligible. How much better off per month would the firm be if it adopted preventive maintenance?


A) $100 worse off
B) $200 worse off
C) $100 better off
D) $200 better off
E) $2,000 better off

F) B) and C)
G) B) and E)

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With regard to suppliers, lean systems typically involve


A) delivery of large lots on short notice
B) the highest quality at the lowest price
C) long-term relationships
D) multiple suppliers to assure continuous availability
E) dedicated staging areas for material

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

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Value stream mapping is a technique focused on finding new ways of adding value for critical stakeholders such as customers.

A) True
B) False

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In the broadest sense, preventive maintenance extends back to the installation stage of equipment and facilities.

A) True
B) False

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The type of maintenance which is periodic in nature is


A) breakdown maintenance.
B) predictive maintenance.
C) preventive maintenance.
D) corrective maintenance.
E) all of the choices.

F) C) and D)
G) A) and D)

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Suppose that for a particular piece of machinery, the frequency distribution of monthly breakdowns is as follows: Suppose that for a particular piece of machinery, the frequency distribution of monthly breakdowns is as follows:   The cost of a breakdown is $2,000, and the cost of a preventive maintenance program is $2,000 per month. If the preventive maintenance program is adopted, the probability of a machine breakdown is negligible. How much better off per month would the firm be if it adopted preventive maintenance? A) $100 worse off B) $200 worse off C) $100 better off D) $200 better off E) $2,000 better off The cost of a breakdown is $2,000, and the cost of a preventive maintenance program is $2,000 per month. If the preventive maintenance program is adopted, the probability of a machine breakdown is negligible. How much better off per month would the firm be if it adopted preventive maintenance?


A) $100 worse off
B) $200 worse off
C) $100 better off
D) $200 better off
E) $2,000 better off

F) B) and E)
G) B) and D)

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Which of the following is not a major approach used to deal with breakdowns?


A) backup equipment
B) cost of repairs
C) spare parts
D) operators
E) repair technicians

F) A) and D)
G) A) and C)

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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.

A) True
B) False

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