Accounting
Anthropology
Archaeology
Art History
Banking
Biology & Life Science
Business
Business Communication
Business Development
Business Ethics
Business Law
Chemistry
Communication
Computer Science
Counseling
Criminal Law
Curriculum & Instruction
Design
Earth Science
Economic
Education
Engineering
Finance
History & Theory
Humanities
Human Resource
International Business
Investments & Securities
Journalism
Law
Management
Marketing
Medicine
Medicine & Health Science
Nursing
Philosophy
Physic
Psychology
Real Estate
Science
Social Science
Sociology
Special Education
Speech
Visual Arts
Business Development
Q:
Leadership in small firms is more ____ in comparison to the leadership in large corporations.
a. haphazard
b. impersonal
c. personalized
d. skillful
Q:
A bakery uses 5 kanban containers that each hold 5 cakes. If daily demand is 20 cakes and lead time is 1 day determine the safety stock.
Q:
A budget is prepared as part of a
a. strategic plan.
b. short-range plan.
c. organizational plan.
d. long-range plan.
Q:
Labor cost for set-up is $500/hour. If the plant plans on level material use and operates 50 days per year, determine the time it takes to setup. Annual demand
5000 Daily production
1000 Lot size
700 Annual holding cost per unit
$25
Q:
A repetitive manufacturing firm is planning on level material use. The following information has been collected. Currently, the firm operates 250 days per year. Annual demand
22,000 Daily demand
88 Daily production
250 Desired lot size (2 hours of production)
63 Holding cost per unit per year
$50 a. What is the setup cost, based on the desired lot size?
b. What is the setup time, based on $40 per hour setup labor?
Q:
The use of written policies, budgets, and job descriptions is most closely associated with which stage of growth?
a. Formal organization
b. Intermediate supervision
c. One-person operation
d. Player-coach
Q:
A certain product has been effectively managed in the past, according to its managers. The previous technique used the economic production quantity model, and resulted in an optimum lot size of 100. For this product, setup time is directly proportional to setup cost, and setup time is currently 40 minutes per batch. How much must setup time decline in order for the lot size to fall to 50 units? 25 units? 10 units?
Q:
Marcia, owner of Drapes by Design, has groups of employees in production and installation. If she decides to use work teams as part of her leadership approach, she may be able to:
a. earn more in quarterly profits.
b. decrease the number of supervisors.
c. improve product quality.
d. reduce total compensation.
Q:
Daily usage of a part is 20 in a facility that operates 250 days of the year. Setup cost is $20 and annualized carrying cost is $210. Production of this part occurs at the rate of 50 per day when production of the part is underway. Lead time is 1 day; safety stock is 1/2 day's production. What is the optimum kanban size, and number of kanbans?
Q:
Frequent and flagrant disregard of the chain of command undermines the position of the
a. founder.
b. operative employee.
c. staff specialist.
d. bypassed manager.
Q:
Daily usage of an assembly is 100 in a facility that operates 300 days of the year. Setup cost is $5 and annualized carrying cost is $160. Production of this assembly occurs at the rate of 400 per day when production of the assembly is underway. Lead time is 3 days; safety stock is 1/2 day's production. What is the optimum kanban size, and number of kanbans?
Q:
Daily usage of a product is 10 in a facility that operates every day of the year. Setup cost is $68 and annualized carrying cost is $100. Daily production of this product is 20. Lead time is 14 days; safety stock is one day's production. What is the optimum kanban size, and number of kanbans?
Q:
A corporate marketing executive is moving to a managerial position in a small firm, where she may logically expect to find
a. adequate financial resources and adequate staff.
b. inadequate financial resources and inadequate staff.
c. adequate financial resources and inadequate staff.
d. inadequate financial resources and adequate staff.
Q:
Weekly usage of a product is 8 units. Since the plant operates 50 weeks per year, this leads to annual usage of 400 units. Setup cost is $40 and annualized carrying cost is $80. Weekly production of this product is 12 units. Lead time is four weeks, and safety stock is one week's production. What is optimal kanban size? What is the optimal number of kanbans?
Q:
SCORE refers to
a. the grade assigned to a small firm by the SBA.
b. the management knowledge possessed by an entrepreneur.
c. a group of retired executives who act as consultants to small firms.
d. an alliance of small firms for the purpose of bidding on government contracts.
Q:
Identify some of the signals that kanban systems use.
Q:
To improve employee morale, an industrial distribution business might consider __________.
a. employee empowerment.
b. formulating policies after gaining employee thoughts.
c. soliciting employee input on the adoption of budgets.
d. the establishment of control standards.
Q:
Identify JIT scheduling tactics.
Q:
Small business service organizations that are patterned after the Agricultural Extension Service are known as
a. student consulting team programs.
b. Small Business Development Centers.
c. business incubators.
d. SCORE.
Q:
Describe level schedules. What purpose do they serve?
Q:
Which time management suggestion would be the most critical for a small business owner?
a. Set aside time to work undisturbed.
b. Have a daily written plan and highlight priorities.
c. E-mail, cell phones and the Internet should be used to save time, not be a distraction.
d. Complete trivial tasks first to have something completed.
Q:
What is a kanban?
Q:
Kathleen believes she could be more efficient inthe use of her time. To determine where improvemenst can be made, Kathleen should first:
a. list long term objectives.
b. record time spent on various activities during the day.
c. list projects that need attention.
d. assign priorities to unfinished tasks.
Q:
Preparing a daily written plan of activities is useful in deciding which tasks deserve highest priority.
a. True
b. False
Indicate the answer choice that best completes the statement or answers the question.
Q:
Identify the inventory tactics appropriate for a JIT environment.
Q:
Identify the layout tactics appropriate for a JIT environment.
Q:
It is critical for entrepreneurs to set aside time to work undisturbed.
a. True
b. False
Q:
What are the five reasons given by suppliers for their reluctance to enter into JIT systems?
Q:
SBDCs are affiliated with colleges and universities and provide counseling solely through a group of retired executives.
a. True
b. False
Q:
What are the goals of JIT partnerships?
Q:
Compared to empowerment, work teams require a lower level of employee participation.
a. True
b. False
Q:
________ involve scheduling products so that each day's production meets the demand for that day.
Q:
A small business that has expanded beyond the comfort zone of its entrepreneur will end in bankruptcy.
a. True
b. False
Q:
________ allows manufacturing work cells and offices to be easily rearranged.
Q:
Professional managers often have more sophisticated methods of management than entrepreneurs.
a. True
b. False
Q:
When suppliers are encouraged to locate near manufacturing plants, the goal of the JIT partnership is to reduce ________ inventory.
Q:
Small firms that hesitate to acquire professional management often limit growth.
a. True
b. False
Q:
Most very small firms use a single chain of command.
a. True
b. False
Q:
________ is the Japanese word for card that has come to mean "signal."
Q:
Stage 4 of small business growth involves the use of budgets, personnel policies, organizational charts, and computerization.
a. True
b. False
Q:
________ is the minimum inventory necessary to keep a perfect system running.
Q:
Some colleges and universities offer training directly to aspiring small business owners.
a. True
b. False
Q:
A manufacturer took the following actions to reduce inventory. Which of these is generally not accepted as a JIT action?
A) It used a pull system to move inventory.
B) It produced in ever smaller lots.
C) It required deliveries directly to the point of use.
D) It picked the supplier that offered the lowest price based on quantity discounts.
E) It worked to reduce the company's in-transit inventory.
Q:
Great Lakes Barge and Baggage Company makes, among other things, battery-operated bilge pumps. Which of the following activities is NOT part of JIT? They:
A) communicate their schedules to suppliers.
B) produce in long production runs to reduce the impact of setup costs.
C) use a pull system to move inventory.
D) continuously work on reducing setup time.
E) produce in small lots.
Q:
Budgets are usually prepared for five years in advance using quarterly figures.
a. True
b. False
Q:
JIT makes quality cheaper because:
A) the cost of low quality can be hidden as inventory cost.
B) JIT adds more buffers to the system.
C) JIT prevents long runs of defects.
D) B and C
E) A, B and C
Q:
A small companys culture unfolds over the lifetime of the business..
a. True
b. False
Q:
Which of the following is FALSE regarding the links between JIT and quality?
A) Inventory hides bad quality; JIT immediately exposes it.
B) JIT reduces the number of potential sources of error by shrinking queues and lead times.
C) As quality improves, fewer inventory buffers are needed; in turn, JIT performs better.
D) If consistent quality exists, JIT allows firms to reduce all costs associated with inventory.
E) JIT increases the cost of obtaining good quality.
Q:
Entrepreneurs who follow a win-win negotiating strategy seek a solution that will satisfy at least the basic interests of both parties.
a. True
b. False
Q:
A grocery store is attempting to implement a kanban system. Which of the following would not be an application of kanbans?
A) An empty doughnut tray signaling the bakery to produce 2 dozen glazed doughnuts.
B) A line of 5 people in the Chinese department signaling the department to heat 5 Crab Rangoon.
C) A red light on top of the cashier's lane signals that the cashier needs additional change replenished.
D) The meat department stocking up on turkeys before Thanksgiving.
E) All of the above are kanban applications.
Q:
As a firm moves from Stage 1 to Stage 4, the entrepreneur becomes less of a manager and more of a doer.
a. True
b. False
Q:
Lead time for computers is 5 days with daily demand of 25 and safety stock of 5 computers. If management wants to use 10 kanbans how many computers should each one hold?
A) 25
B) 1
C) 5
D) 10
E) 13
Q:
Owner-managers of small businesses typically overdo the amount of planning.
a. True
b. False
Q:
Lead time for computers is 7 days with daily demand of 5 computers and a safety stock of 1 day. Each kanban holds 8 computers. What is the correct number of kanbans?
A) 4.5
B) 1
C) 5
D) 7
E) 8
Q:
Individuals who are launching promising startups need to have a tolerance for ambiguity.
a. True
b. False
Q:
The cook in a fast-food restaurant knows that 2 hamburger patties and an order of fries should be started for each car that is waiting in line. This is best an example of:
A) keiretsu.
B) kanban.
C) push production.
D) kaizen.
E) EOQ.
Q:
A small business always has greater constraints in cash flow and employee expertise than found in larger corporations.
a. True
b. False
Q:
A manager who grants subordinates the right to act or make decisions is delegating authority.
a. True
b. False
Q:
Lead time for cakes is 2 days with daily demand of 10 cakes and a safety stock of a day. Each container (kanban) holds 1 cake. What is the correct number of kanbans?
A) 4
B) 1
C) 5
D) 10
E) 25
Q:
The number of kanbans should be equal to which of the following?
A) one
B) the ratio of (demand during lead time + safety stock) to container size
C) one-half of the EOQ
D) one full day's production divided by the EOQ
E) the ratio of demand during lead time to (container size + safety stock)
Q:
A consultant beginning to ask employees for their marketing ideas illustrates empowerment.
a. True
b. False
Q:
Which one of the following scenarios represents the use of a kanban to reduce inventories?
A) A supervisor tells the operators to stay busy and start producing parts for next month.
B) A "supplier" work center signals the downstream workstation that a batch has been completed.
C) A supervisor signals to several work centers that the production rate should be changed.
D) A "customer" work center signals to the "supplier" workstation that more parts are needed.
E) An operator asks the next station's operator to help him fix his machine.
Q:
The greatest time saver is the effective use of time.
a. True
b. False
Q:
When a firm reaches Stage 2, the entrepreneur engages extensively in both the coordination of the efforts of others as well as performing basic work activities.
a. True
b. False
Q:
What does the Japanese word "kanban" mean?
A) low inventory
B) employee empowerment
C) card
D) continuous improvement
E) lot size of one
Q:
The SCORE program offers entrepreneurs management advice for a small fee.
a. True
b. False
Q:
Kanban is associated with all EXCEPT which of the following?
A) small lot sizes
B) signals, such as cards, lights, or flags
C) moving inventory only as needed
D) increased material handling
E) reductions in inventory
Q:
Periodic performance review sessions for a company following two-way communication would discuss employee ideas, questions, complaints, and job expectations.
a. True
b. False
Q:
Which one of the following statements is TRUE about the kanban system?
A) The quantities in the containers are usually large to reduce setup costs.
B) It is associated with a push system.
C) It is useful to smooth operations when numerous quality problems occur.
D) The supplier workstation signals the customer workstation as soon as a batch is completed.
E) The customer workstation signals to the supplier workstation when production is needed.
Q:
If a factory wants to cut its current lot size in half, by what proportion must setup cost change?
A) Setup cost must be cut to one fourth its current value.
B) Setup cost must also be cut in half from its current value.
C) Setup cost must double from its current value.
D) Cannot be determined.
E) Setup cost must quadruple from its current value.
Q:
The formal organization stage of business growth is a turning point because the entrepreneur must learn to rise above direct management and work through an intermediate level of managers.
a. True
b. False
Q:
Which of the following is TRUE regarding the steps to reducing setup times?
A) The first step involves performing as much setup preparation as possible while the process/machine is operating.
B) The cycle of steps is repeated until setup time is reduced to under a minute.
C) The standardization of both tooling and work procedures is advantageous to setup time reduction.
D) Move material closer and improve material handling are done before operator training.
E) All of the above are true.
Q:
Someone with a charismatic personality will make a more effective leader.
a. True
b. False
Q:
A product has annual demand of 100,000 units. The plant manager wants production to follow a four-hour cycle. Based on the following data, what setup cost will enable the desired production cycle?
d = 400 per day (250 days per year), p = 4000 units per day, H = $40 per unit per year, and Q = 200 (demand for four hours, half a day).
A) $2.00
B) $7.20
C) $18.00
D) $64.00
E) $1,036.80
Q:
Many owner-managers seldom work more than 40 hours a week.
a. True
b. False
Q:
A firm wants to develop a level material use schedule based on the following data. What should be the setup cost? Desired lot size:
60 Annual demand:
40,000 Holding cost:
$20 per unit per year Daily production rate:
320 Work days per year:
250 A) $0.45
B) $4.50
C) $45
D) $450
E) $500
Q:
Company planning helps clarify issues and how these issues can be faced, provides focus, and increases credibility with outsiders.
a. True
b. False
Q:
Which one of the following statements is TRUE regarding JIT inventory?
A) It exists just in case something goes wrong.
B) It is the minimum inventory necessary to keep a perfect system running.
C) It hides variability.
D) It is minimized with large lot production.
E) It increases if setup costs decrease.
Q:
Who is credited with coining the phrase, "Inventory is evil"?
A) Poka Yoke
B) Pat "Keiretsu" Morita
C) Kanban Polka
D) Shigeo Shingo
E) Taiichi Ohno
Q:
Top-level executives in a large corporation have a distinct advantage over the leader of a small business in exerting their influence.
a. True
b. False