If capacity is expensive and inventory is cheap, a good reason to hold inventory is to level load capacity by using inventory as a buffer between demand variability and capacity utilization: True False In the hierarchical pull planning framework reviewed in class, reorder point and reorder quantity inventory policies should be applied as a long-term strategy planning tool instead of at a tactical policy and control level: True False Which of the following ties directly to the balance sheet: Inventory # of kaizen events # of six sigma projects If a key strategic goal is customer service, which is the better focus for goals: 99% utilization and earned hours High on-time delivery and low average days late The magic of pull comes from: The WIP Cap Kaizen events 5S In a CONWIP shop floor control system, what happens to cycle time if throughput drops below its planned target/quota: Cycle time goes up Cycle time goes down Cycle time stays the same In an assembly operation with 3 components whose individual service level to the assembly line is 90%, the overall service assuming no issues in assembly itself will be: 90% 81% 72% The goal of a planner should be: Developing perfect schedule based on heuristics Delivering parts on-time to market need with minimal inventory and capacity cost inflexibility The end finished good product item in a bill of materials experiences: Independent demand Dependent demand A child item in a bill of material experiences: Independent demand Dependent demand In the hierarchical pull planning framework reviewed in class, where should you determine your portfolio of buffers: Strategy Tactics/Policies Control Process batches must equal move batches: True False In the Rosemount Case, Throughput was 133 units per day. What WIP level would deliver a 5 day cycle time: 399 665 133 In the Rosemount Case, the team made arrivals to the flow lab less variable and reduced cycle time by: Moving meters to the flow lab more than once a day Grouping the meters into batches by size Reducing mean time to repair Which of the following is true — circle the true answers: Scheduling is hard because of variability and complexity Scheduling can be simplified with due date quoting Scheduling can be simplified with sequencing in a virtual queue As a student with knowledge of the Factory Physics Framework, I would do the following to reduce cycle time: A Six Sigma Project Reduce WIP Implement advanced scheduling in an ERP planning program In the Factory Physics Framework, the three buffers are: Lean, Six Sigma, and ERP Lean Six Sigma, Theory of Constraints, and Kaizens Inventory, Time, and Capacity What is being “buffered” in the Factory Physics Framework : Six Sigma Business Process Reengineering Variability

If capacity is expensive and inventory is cheap, a good reason to hold inventory is to level load capacity by using inventory as a buffer between demand variability and capacity utilization:

True

False

In the hierarchical pull planning framework reviewed in class, reorder point and reorder quantity inventory policies should be applied as a long-term strategy planning tool instead of at a tactical policy and control level: