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Exam 12: Lean Manufacturing and Activity Analysis

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Question 31

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In a lean environment, operations only respond to customer orders.

A) True
B) False

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Question 32

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Large batch sizes increase lead time.

A) True
B) False

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Question 33

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A setup is the time required to prepare an operation for a new production run.

From the above schedule, compute the percentage of non-value-added activities.

From the above schedule of activity costs, determine the internal failure costs.

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

A nonfinancial measure is operating information that has not been translated into dollars.

All lead times are considered to be value-added lead time.

Which of the following is considered non-value-added lead time?

By spending more in costs of controlling quality, the costs of failing to control quality will decrease.

Connally Company's payroll department required that every time card be checked twice to ensure pay accuracy. The company has 1,000 employees and has determined that the checks cost the company $8,000 per year. They have decided to change this policy and only check those names which appear on the exceptions report and a random check on the entire payroll. Currently only 15% of the payroll is evaluated each payroll. Determine the inspection activity cost per employee on the 1,000 employees both before and after the improvement.

What do lean manufacturers demand from their vendors?

Under a lean environment, employees have the responsibility and authority to

____ manufacturing deals with several suppliers in hopes of finding the best price.

Costs of failing to control quality include prevention costs and external failure costs.

Employee involvement does not include performing any indirect manufacturing functions.

Conan Electronics Corporation manufactures and assembles electronic motor drives for video cameras. The company assembles the motor drives for several accounts. The process consists of a lean cell for each customer. The following information relates only to one customer's lean cell. For the year, planned labor and overhead was $80,000,000; materials costs, $25 per unit. Planned production included 9,600 hours to produce 76,800 motor drives. Actual production for the month of August was 5,200 units, and motor drives shipped amounted to 5,040 units. From the foregoing information, determine the budgeted cell conversion cost per hour.

Nonfinancial accounting information is used more often for long-term operating decisions than is financial information.

____ manufacturing philosophy emphasizes quality and zero defects.

The lean philosophy attempts to reduce setup times, which will: