Business Quiz: Organization Management- II

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| By Blondz_rule2
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  • 1/10 Questions

    Which of the following statements is true regarding JIT?

    • It is a philosophy that relates to the way in which a manufacturing company organizes and operates its business
    • It involves getting the goods to the customer as fast as possible at all costs
    • It is a culturally based method of management
    • It is concerned with adding cost to the product
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About This Quiz

This Business Quiz: Organization Management- II assesses knowledge on efficient business practices, including JIT, waste reduction, and employee empowerment. It evaluates understanding of operational strategies and maintenance responsibilities, vital for professionals in management roles.

Business Quiz: Organization Management- II - Quiz

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  • 2. 

    Which of the following statements is true regarding JIT and MRP?

    • With JIT in place, MRP is no longer needed

    • By increasing the number of levels in the bill of material, MRP becomes just like JIT

    • MRP is used for planning, while JIT is used to put the plan into effect

    • JIT is the same as a bucketless MRP system

    Correct Answer
    A. MRP is used for planning, while JIT is used to put the plan into effect
    Explanation
    MRP (Material Requirements Planning) and JIT (Just-in-Time) are both inventory management systems used in manufacturing. MRP is used for planning, which involves determining the quantity and timing of materials needed for production. It helps in creating a schedule for purchasing or producing materials based on demand forecasts. On the other hand, JIT is used to put the plan into effect by ensuring that materials and components are delivered to the production line just in time for assembly. JIT focuses on minimizing inventory levels and reducing waste by delivering materials at the exact time they are needed. Therefore, MRP is used for planning, while JIT is used to implement the plan effectively.

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  • 3. 

    Which of the following statements is best regarding employee empowerment?

    • Management is relieve of the responsibility for decisions the company makes

    • Employees are empowered to set their wage rates and hours of work

    • Line employees are given more authority to make decisions

    • Decision-making power is concentrated in a small, upper-level management group

    Correct Answer
    A. Line employees are given more authority to make decisions
    Explanation
    Employee empowerment refers to the process of granting employees the authority and autonomy to make decisions and take actions related to their work. By giving line employees more authority to make decisions, organizations are enabling them to contribute their expertise and insights, leading to increased job satisfaction, motivation, and productivity. This approach also promotes a sense of ownership and accountability among employees, as they become more involved in shaping their work and the organization's success.

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  • 4. 

    Which of the following statements is true regarding the relationship with suppliers in a JIT environment?

    • All cost reductions will be awarded directly to the buyer

    • Short-term contracts for multiple small deliveries will be used

    • Planning becomes more erratic and difficult

    • The supplier is viewed as an upstream work center

    Correct Answer
    A. The supplier is viewed as an upstream work center
    Explanation
    In a JIT (Just-in-Time) environment, the supplier is viewed as an upstream work center. This means that the supplier is considered an integral part of the production process and is seen as a partner rather than just a provider of materials. The supplier's role is to deliver the required materials or components at the right time and in the right quantity to support the production process. This close relationship allows for better coordination and communication between the buyer and the supplier, leading to improved efficiency and reduced waste.

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  • 5. 

    TQM can reduce batch sizes by:

    • Reducing lead time

    • Using statistical analysis and destructive testing

    • Increasing per-order costs

    • Lowering fixed costs associated with batch-size calculations

    Correct Answer
    A. Reducing lead time
    Explanation
    TQM, or Total Quality Management, can reduce batch sizes by reducing lead time. When the lead time is reduced, it means that the time taken to complete a process or deliver a product is decreased. This allows for smaller batch sizes to be produced or delivered more frequently, resulting in increased efficiency and flexibility. By reducing lead time, TQM helps to streamline operations and minimize waste, ultimately improving overall quality and customer satisfaction.

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  • 6. 

    Which of the following statements is true regarding total productive maintenance?

    • Skilled mechanics are used to ensure proper setup of every die change

    • Cleaner-inspectors are used to ensure that every machine is ready for work at all times

    • Operators report regularly to management of maintenance productivity

    • Machine operators take responsibility for most of the routine machine maintenance

    Correct Answer
    A. Machine operators take responsibility for most of the routine machine maintenance
    Explanation
    Machine operators taking responsibility for most of the routine machine maintenance is true regarding total productive maintenance. Total productive maintenance is a strategy that aims to involve all employees in the maintenance process to improve overall equipment effectiveness. By having machine operators take responsibility for routine maintenance tasks, such as cleaning, lubricating, and minor repairs, it helps to prevent breakdowns, reduce downtime, and improve productivity. Skilled mechanics may still be involved in more complex repairs or setup changes, but the primary responsibility lies with the machine operators.

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  • 7. 

    Which of the following is an advantage of work cells?

    • Maximum machine utilization

    • Simplified production activity control

    • Larger batches and lower unit costs

    • Reduced worker skills required

    Correct Answer
    A. Simplified production activity control
    Explanation
    An advantage of work cells is simplified production activity control. This means that the production process becomes easier to manage and control, as work cells allow for a more streamlined and efficient workflow. By organizing tasks and resources within a work cell, it becomes easier to monitor and coordinate production activities, leading to improved productivity and reduced complexity in managing the overall production process.

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  • 8. 

    Which of the following will happen if a company standardizes the components that are used in different models?

    • Waste will be reduced

    • The number of product options available to the customer will be reduced

    • General-purpose equipment will be used more frequently in production

    • Production runs will be reduced

    Correct Answer
    A. Waste will be reduced
    Explanation
    If a company standardizes the components used in different models, it means that they will use the same components across all their products. This standardization allows for streamlined production processes and eliminates the need for multiple variations of components. As a result, there will be less waste generated as there will be no excess or unused components. Standardization also improves efficiency and reduces the chances of errors or defects in production, further reducing waste. Therefore, the correct answer is that waste will be reduced.

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  • 9. 

    The quantity of a JIT pull signal:

    • Is always the same as the upstream pull signal

    • Is always one

    • Can be any quantity

    • Often includes a small safety factor

    Correct Answer
    A. Can be any quantity
    Explanation
    The quantity of a JIT pull signal can vary depending on the specific needs and circumstances of the production process. It is not always the same as the upstream pull signal or limited to a fixed quantity of one. The flexibility to adjust the quantity allows for better responsiveness to demand fluctuations and ensures that the right amount of materials or products is delivered at the right time. Additionally, including a small safety factor in the JIT pull signal helps to account for unexpected disruptions or variations in demand, ensuring a smooth and efficient production flow.

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  • 10. 

    Which of the following statements is true?

    • Cost buildup and storage add value to a product

    • Value starts in the marketplace

    • Cost and value are interchangeable terms

    • Just-In-Time means having product always ready for the customer

    Correct Answer
    A. Value starts in the marketplace
    Explanation
    Value starts in the marketplace means that the perception of value for a product is created by the customers or consumers. It suggests that the value of a product is not solely determined by its cost or the cost of its production, but rather by how much customers are willing to pay for it based on their needs, preferences, and the perceived benefits they expect to receive from the product. This statement highlights the importance of understanding consumer demand and creating products that meet their needs and expectations in order to generate value in the marketplace.

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Quiz Review Timeline (Updated): Feb 14, 2023 +

Our quizzes are rigorously reviewed, monitored and continuously updated by our expert board to maintain accuracy, relevance, and timeliness.

  • Current Version
  • Feb 14, 2023
    Quiz Edited by
    ProProfs Editorial Team
  • Feb 13, 2012
    Quiz Created by
    Blondz_rule2
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