1. Drive-in-Style Motors follows a traditional manufacturing system. It produces a fixed number of cars every month. It is now planning to switch to a system of manufacturing where workers go to the source of required parts and withdraw them based on requirements. In this scenario, which of the following is most likely to occur if Drive- in-Style Motors implements this plan?
a. Its inventory levels will increase significantly when the demand is low.
b. Its component parts and subassemblies will be replenished only when needed.
c. Its finished goods inventory will decrease, but raw materials and work-in-process inventories will increase.
d. Its workers, at any given process, will produce units before they are needed.
2. Which of the following is a similarity between lean production and Six Sigma?
a. Both solely address visible problems in processes.
b. Both focus on efficiency by reducing waste and improving process flow.
c. Both are driven by supply chain limitations.
d. Both focus on problems related to variation in performance.
e. Both are driven by customer requirements
3. Ford Motor Company has decided to switch to a pull system of manufacturing and distribution for its vehicles. Under a Lean philosophy, which one of the following is most likely to occur?
a. Inventory levels will increase.
b. Component parts and subassemblies will be replenished only when needed.
c. Dealer parking lot space will need to be increased.
d. Finished goods inventory will decrease, but raw materials and work-in-process inventories will increase; economies of scale might not be affected.