Assignment:
Read each question carefully and state whether it is true or false.
1. The purchasing cycle is a series of steps that begin with a request for purchase and end with notification of shipment received in satisfactory condition.
2. The four elements of product design that are important for a lean production system are standard parts, modular design, highly capable production systems with quality built in, and concurrent engineering.
3. The most progressive approach to quality assurance is with process control, which is inspection and corrective action during production.
4. A PERT chart is used as a visual aid for loading scheduling purposes.
5. A time fences are points in time that separate phases of a master schedule planning horizon.
6. Bill of Materials (BOM) is one of the three primary inputs of MRP.
7. Safety stock is when the quantity on hand of an item drops to this amount, forcing a reorder.
8. Logistics is the movement of materials, services, cash, and information in a supply chain.
9. Many of the terms in conjunction with lean operations such as Muda and Kanban were developed by Japanese car manufacturer Nissan.
10. The different types of inventory include raw materials and purchased parts, partially completed goods or works in progress, finished goods, maintenance and repair inventory, and goods in transit.
11. The term crash refers to a breakdown in a production line.
12. MRP is a methodology that translates master schedule requirements for end items into time-phased requirements for subassemblies, components, and raw materials.
13. RFID is an acronym that stands for Radio Frequency Information.
14. Three commonly used terms refer to the variability of process output: specifications, process variability, and process capability.
15. ERP is an acronym for enterprise resource processing.
16. Housekeeping is maintaining equipment in good operating condition and replacing parts that have a tendency to fail before they actually do.
17. A project champion is a person who promotes and supports a project.
18. Cross-docking is a technique whereby goods arriving at a warehouse from a supplier are unloaded from the supplier's truck and loaded onto outbound trucks, thus avoiding warehouse storage.
19. A periodic inventory system keeps track of removals from inventory continuously, thus monitoring current levels of each item.
20. The control process for effective quality control requires the following steps: define, measure, compare, evaluate correct, and monitor results.
21. Level capacity strategy is matching capacity to demand; the planned output for a period is set at the expected demand for that period.
22. The bullwhip effect is the speed at which goods move through a supply chain.
23. Inventory costs include purchase cost, holding or carrying costs, ordering costs, setup costs, and shortage costs.
24. The six key managerial decisions of project management are deciding which projects to implement, selecting the project manager, selecting the project team, planning and designing the project, managing and controlling project resources, and deciding if and when a project should be ended.
25. Inventory turnover is the ratio of annual cost of goods sold to average inventory investment.