UNIT 1 PRACTICE Practice – Chapter 1 1. Which of the following is a five step management approach that organizes resources around the flow of business processes and that pulls units through these processes in response to customer orders? a. Theory of constraints b. Value chain c. Supply chain management d. Six sigma e. Lean thinking model Which of the following is a method that relies on customer feedback and objective data gathering and analysis techniques to drive process improvement? a. Theory of constraints b. Value chain c. Supply chain management d. Six sigma e. Lean thinking model Which of the following is a production and inventory control system in which materials are purchased and units are produced only as needed to meet actual customer demand? a. Just-in-time b. Value chain c. Supply chain management d. Work in process e. Lean thinking model Which of the following is a management approach that coordinates business processes across companies to better serve end consumers? a. Just-in-time b. Value chain c. Supply chain management d. Six sigma e. Lean thinking model The business functions that add value to a company’s products and services such as research & development, product design, manufacturing, marketing, distribution, and customer services are known as the: a. Value chain b. Non-value-added activities c. Constraint d. Business process e. Strategy

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UNIT 1 PRACTICE 6. Anything that prevents an organization or individual from getting more of what it wants is a: a. Business process b. Strategy c. Staff position d. Corporate governance e. Constraint A series of steps that are followed to carry out some task in a business is a: a. Strategy b. Six Sigma c. Value chain d. Sarbanes-Oxley Act e. Business process Which of the following is not a true statement? a. Just in time is a production system in which units are produced and materials are purchased only as needed to meet actual customer demand. b. In a just in time system, the flow of goods is controlled by a push approach in which partially completed units are “pushed” forward to the next workstation as soon as work is completed at the prior workstation. c. Just in time production is a facet of the lean thinking model. d. All of the above are true statements Which of the following management approaches emphasizes the importance of management constraints? a. Just in time b. Lean thinking c. Six sigma d. Theory of constraints e. Value chain Staff positions: a. Are not shown on the organization chart. b. Are superior in authority to line positions. c. Are subordinate in authority to line positions. d. None of these The controller: a. Occupies a staff position b. Occupies a line position c. Has little influence in the decision-making process d. None of these

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UNIT 1 PRACTICE 12. In a decentralized organization, decisions are made: a. Only by top management b. Only by managers occupying staff positions c. At the lowest managerial level possible in the organization d. None of these After careful planning, Jammu Manufacturing Corporation has decided to switch to a just-in-time inventory system. At the beginning of this switch, Jammu has 30 units of product in inventory. Jammu has 2,000 labor hours available in the first month of this switch. These hours could produce 500 units of product. Customer demand for this first month is 400 units. If just-in-time principles are correctly followed, how many units should Jammu plan to produce in the first month of the switch? a. 370 b. 400 c. 430 d. 470 The delegation of decision making to lower levels in an organization is known as: a. the planning and control cycle. b. controlling. c. decentralization. d. none of these. Match the goals set forth below with the appropriate stage in the Six Sigma DMAIC Framework. Define Develop, evaluate, and implement solutions to the problem. Diagram the flow of the current process. Ensure that problems remain fixed.