Key features in a just-in-time production system includes all of the following except: A. Continous striving for quality improvement B. Elimination of storage and handling costs C. Prorating manufacturing lead time D. Streamling operations

Key features in a just-in-time production system includes all of the following except: A. Continous striving for quality improvement B. Elimination of storage and handling costs C. Prorating manufacturing lead time D. Streamling operations

Cornerstones of Cost Management (Cornerstones Series)

4th Edition

ISBN:9781305970663

Author:Don R. Hansen, Maryanne M. Mowen

Publisher:Don R. Hansen, Maryanne M. Mowen

Chapter15: Lean Accounting And Productivity Measurement

Section: Chapter Questions

Problem 17E: Lean manufacturing is characterized by all but one of the following: a. Employee empowerment b....

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A quality control program that depends on multiple team members for removing waste and diminishing defects within products is _________________. kaizen total quality management Lean Six Sigma a balanced scorecard
A process that is often linked to Six Sigma and is designed toward continuous improvement by eliminating waste is ___________________________. A. kamikaze B. value chain C. total quality management D. kaizen
The actions listed next are associated with either an activity-based operational control system or a traditional operational control system: a. Budgeted costs for the maintenance department are compared with the actual costs of the maintenance department. b. The maintenance department manager receives a bonus for beating budget. c. The costs of resources are traced to activities and then to products. d. The purchasing department is set up as a responsibility center. e. Activities are identified and listed. f. Activities are categorized as adding or not adding value to the organization. g. A standard for a products material usage cost is set and compared against the products actual materials usage cost. h. The cost of performing an activity is tracked over time. i. The distance between moves is identified as the cause of materials handling cost. j. A purchasing agent is rewarded for buying parts below the standard price set by the company. k. The cost of the materials handling activity is reduced dramatically by redesigning the plant layout. l. An investigation is undertaken to find out why the actual labor cost for the production of 1,000 units is greater than the labor standard allowed. m. The percentage of defective units is calculated and tracked over time. n. Engineering has been given the charge to find a way to reduce setup time by 75 percent. o. The manager of the receiving department lays off two receiving clerks so that the fourth-quarter budget can be met. Required: Classify the preceding actions as belonging to either an activity-based operational control system or a traditional control system. Explain why you classified each action as you did.
Calculate prevention, appraisal, internal failure, and external failure costs as a percentage of total quality costs and as a percentage of sales before and after the change in the production process. Comment briefly on your results.
Concepts and terminology From the choices presented in parentheses, choose the appropriate term for completing each of the following sentences: The phase of the management process that uses process information to eliminate the source of problems in a process so that the process delivers the correct product in the correct quantities is called (directing, improving). Direct labor costs combined with factory overhead costs are called (prime, conversion) costs.
Which of the following are features of lean manufacturing? Yes or NO a. Maintaining excess inventory to ensure that products will always be available b. Cross-training of employees c. Giving employees additional authority and responsibility d. Product-oriented layout e. Increased setup time
From the choices presented in parentheses, choose the appropriate term for completing each of the following sentences:a. The phase of the management process that uses process information to eliminate the source of problems in a process so that the process delivers the correct product in the correct quantities is called (directing, improving).b. Direct labor costs combined with factory overhead costs are called (prime, conversion) costs.c. The salaries of salespeople are normally considered a (period, product) cost.d. The plant manager’s salary would be considered (direct, indirect) to the product.e. Long-term plans are called (strategic, operational) plans.f. Materials for use in production are called (supplies, materials inventory).g. An example of factory overhead is (electricity used to run assembly line, CEO salary).
Which of the following is a benefit of activity-based cost management system? a.It makes it easy to identify the overall activities that bear an influence on cost. b.It is inexpensive. c.It enhances strategic planning. d.It ensures allocation of all costs on the basis of machine hours.
Which of the following are features of a lean manufacturing system?A. Centralized maintenance areasB. Smaller batch sizesC. Employee involvementD. Less wasted movement of material and people
Identify the following production processes as lean (L) or traditional (T). The process uses push production. Large batch sizes are used, and inspection occurs only when goods are completed.
Levels of cost drivers. Each of the following is a potential activity driver. Identify the most likely level of each driver with U for a unit-level driver, B for a batch-level diver and P for a product-level driver. Loads of materials moved Materials cost Pounds of finished product produced Shipments to customers (where no finished goods inventory is maintained Number of part numbers used Machine hours Purchase orders issued (where large materials inventories are maintained Direct costs Pieces inspected (where output is 100% inspected) Pieces inspected (where only the first piece is inspected after each setup)
Identifying just-in-time characteristics Consider the following characteristics of either a JIT production system or a traditional production system. Indicate whether each is characteristic of a JIT production system or a traditional production system. a. Products are produced in large batches. b. Large stocks of finished goods protect against lost sales if customer demand is higher than expected. c. Suppliers make frequent deliveries of small quantities of raw materials. d. Employees do a variety of jobs, including maintenance and setups as well as operating machines. e. Machines are grouped into self-contained production cells or production lines. f. Machines are grouped according to function. For example, all cutting machines are located in one area. g. The final operation in the production sequence “pulls” parts from the preceding operation. h. Each employee is responsible for inspecting his or her own work. i. Management works with suppliers to ensure defect-free raw materials.