Q&A Hero

Q: Which one of the following is NOT a layout tactic in a JIT environment? A) work cells for families of products B) fixed equipment C) minimizing distance D) little space for inventory E) poka-yoke devices

Q: A positive solution should be pursued in negotiations whenever it is feasible to do so. a. True b. False

Q: The maximum number of employees who can be supervised effectively by a capable manager is four. a. True b. False

Q: Just-in-time systems make demands on layouts, including the need for: A) distance reduction. B) increased flexibility. C) reduced space and inventory. D) cross-trained, flexible employees. E) all of the above

Q: Today, companies tend to focus on developed countries as they search out international markets. a. True b. False

Q: Which of the following is NOT a concern of suppliers as they prepare to enter into JIT partnerships? A) Suppliers feel that they would be less at risk if they contracted with more than one customer. B) Suppliers are concerned that customers will present frequent engineering changes with inadequate lead time to deal with them. C) Suppliers feel that their processes are suited for larger lot sizes than the customer wants. D) Suppliers are concerned that frequent delivery of small quantities is economically prohibitive. E) All of the above represent JIT supplier concerns.

Q: The motivation to take domestic products to foreign markets is more relevant today than in the past. a. True b. False

Q: In JIT partnerships, suppliers have several concerns. Which of the following is NOT such a concern? A) desire for diversification B) poor customer scheduling C) small lot sizes D) producing high enough quality levels E) customers' infrequent engineering changes

Q: Increasingly, small firms find that they must locate their operations abroad if they are to keep their contracts as suppliers to large companies. a. True b. False

Q: How can a reduction of in-transit inventory be encouraged? A) supplier location near plants B) high setup costs C) low carrying costs D) use of trains, not trucks E) low-cost, global suppliers

Q: The Council on Foreign Relations can assist a company in trade laws and payment issues related to global markets. a. True b. False

Q: Which one of the following is a concern expressed by suppliers in JIT partnerships? A) having too many customers B) delivery to the point of use C) having limited ability to respond to changes in product and quality D) large lot sizes E) customers' infrequent engineering changes

Q: While a small firm can have global operations, size will limit growth. a. True b. False

Q: Which of the following is NOT a goal of JIT partnerships? A) removal of unnecessary activities B) removal of in-plant inventory C) removal of in-transit inventory D) obtain improved quality and reliability E) All of the above are goals of JIT partnerships.

Q: A cross-border acquisition is less demanding than a greenfield venture. a. True b. False

Q: Which of the following is not a goal of JIT partnerships? A) removal of unnecessary activities B) removal of in-plant inventory C) removal of in-transit inventory D) inspect all incoming shipments to ensure zero defects E) All of the above are goals of JIT partnerships.

Q: China, India and Russia are classified as moderately challenging according to the World Banks Ease of Doing Business Index. a. True b. False

Q: Characteristics of just-in-time partnerships do NOT include: A) removal of in-transit inventory. B) large lot sizes to save on setup costs and to gain quantity discounts. C) long-term contracts. D) produce with zero defects. E) focus on core competencies.

Q: While opening an overseas sales office can be effective, small businesses should wait until sales in the local market are great enough to justify the move. a. True b. False

Q: Which one of the following is a characteristic of a JIT partnership? A) third-party logistics never used B) maximal product specifications imposed on supplier C) active pursuit of vertical integration D) removal of incoming inspection E) frequent deliveries in large lot quantities

Q: If the goals of JIT partnerships are met, which of the following is a result? A) For incoming goods, receiving activity and inspection are outsourced. B) In-transit inventory falls as suppliers are located closer to facilities. C) Suppliers maintain a variety of customers to reduce risk. D) In-plant inventory replaces in-transit inventory. E) All of the above are consequences of meeting the JIT partnership goals.

Q: International outsourcing and offshoring are increasingly being used by companies going global to cut costs. a. True b. False

Q: Which one of the following is not a benefit of JIT implementation? A) cost reduction B) variability increase C) rapid throughput D) quality improvement E) rework reduction

Q: The term BRICs refers to Bangladesh, Romania, Ireland, and Czechoslovakia, all emerging markets. a. True b. False

Q: Concerning relationships with suppliers, which of the following combinations is critical to the success of JIT? A) close relationships with trust B) close relationships with skepticism C) distant relationships with trust D) distant relationships with skepticism E) none of the above

Q: Exporting involves the sale of goods made in the home country to customers in another country. a. True b. False

Q: The quality management tool called poka-yoke is not relevant to JIT systems.

Q: A production capacity question that needs to be answered before a company goes global with operations is Will international sales hurt domestic sales? a. True b. False

Q: The primary motivation for expansion into European markets is to be closer to sources of raw materials. a. True b. False

Q: A kanban system requires that the process has little variability in lead time because shortages impact the entire production system.

Q: The number of kanbans decreases as safety stock is increased.

Q: Once a small business owner decides to expand internationally, s/he should study the competitive forces in the foreign market. a. True b. False

Q: With level schedules, a few large batches, rather than frequent small batches, are processed.

Q: Together, China and India account for more than 50 percent of the world's 6 billion inhabitants. a. True b. False

Q: Level scheduling means producing at a constant rate, regardless of customer demands.

Q: International business will never be as easy as doing business on the domestic front. a. True b. False

Q: The first step in reducing setup times is the separation of setup into preparation activities and actual setup, so that as much work as possible can be done while the machine or process is operating.

Q: A revocable letter of credit is an agreement to honor a draft or other demand for payment when specified conditions are met and can only be changed by the seller. a. True b. False

Q: A scheduler may find that freezing the portion of the schedule closest to the due dates allows the production system to function and the schedule to be met.

Q: Globalization explains the increasing similarity of markets around the world. a. True b. False

Q: Entrepreneurs decide to go global to expand their opportunities, but sometimes they are forced to enter foreign markets to compete with firms that have already done so. a. True b. False

Q: Hidden problems are generally uncovered during the process of reducing inventory.

Q: JIT systems carry inventory just in case something goes wrong.

Q: Learning effects occur when an employee gains insight from experience, which leads to improved work performance. a. True b. False

Q: International dissimilarities in language and culture, business practices, and government regulations are increasing over time. a. True b. False

Q: Cross-training is a common JIT layout tactic to improve flexibility.

Q: An economic risk for a global company is the threat of new labeling regulations. a. True b. False

Q: A common JIT layout tactic is to minimize distance.

Q: JIT suppliers have concerns that the JIT firm's demands for small lot sizes are simply a way of transferring holding cost from the JIT firm to the suppliers.

Q: Twenty-five percent of the worlds population lives in the United States. a. True b. False

Q: Many suppliers feel that having a variety of customers is better than being tied to long-term contracts with one customer.

Q: Perhaps the easiest way to break into international markets is to use a trade intermediary. a. True b. False

Q: One goal of JIT partnerships is the removal of in-plant inventory by delivery in small lots directly to the using department as needed.

Q: Gains from learning effects continue to grow after startup; economies of scale efficiencies decline as the business grows. a. True b. False

Q: JIT brings about competitive advantage by faster response to the customer regardless of cost.

Q: Products that sell at home usually require little or no adaptation to be well received in foreign markets. a. True b. False

Q: How are lean operations and the Toyota Production System (TPS) alike? How are they different?

Q: Increasing sales in international markets is one of many ways to recoup a firms investments in research and development. a. True b. False

Q: Identify Ohno's Seven Wastes.

Q: The unique features of a local environment can yield benefits to small firms locating there even when the costs are greater. a. True b. False

Q: What are the 5Ss? Why does the list of the 5Ss sometimes have seven elements?

Q: Increasingly, small firms are going global in search of raw materials. a. True b. False

Q: Identify three major sources of variability.

Q: Political moves by an international country have implications on the domestic companys economic risk. a. True b. False

Q: Define manufacturing cycle time.

Q: Experience curve efficiencies refers to the savings that arise from repeated production of the same product. a. True b. False

Q: Differentiate between a push and a pull system.

Q: Trade leads are accessed most often through contacts. a. True b. False

Q: Small businesses that are either already or interested in exporting or importing can receive information from the SBA through conferences, seminars, publications and counseling. a. True b. False

Q: Counterfeit activity is likely to decrease with the use of foreign licensing, international franchising, and international strategic alliances. a. True b. False

Q: What does TPS stand for?

Q: Trade missions typically are sponsored by foreign governments to promote strategic alliances in international markets. a. True b. False

Q: Handling material more than once is an example of the waste called ________.

Q: By informing consumers about the lifestyles of others, globalization is leading toward more diverse consumer preferences. a. True b. False

Q: The 5S category ________ includes analysis to improve workflow and reduce wasted motion.

Q: TPS stands for ________.

Q: A small firm can generate the greatest financial returns using international licensing strategies when these efforts involve the company's products. a. True b. False

Q: The ________ is the time between the arrival of raw materials and the shipping of finished products.

Q: Coca-Cola leased land and built a bottling operation in Turkey This new facility is best described as a. a greenfield venture. b. a cross-border acquisition. c. an international transplant. d. a duplication strategy.

Q: A(n) ________ is a concept that results in material being produced only when requested and moved to where it is needed just as it is needed.