20 Questions
Which of the following is NOT a benefit of a JIT system in reducing overhead costs?
Increased quality inspection costs to ensure defects are caught early
How does a JIT system impact the allocation of overhead costs compared to a traditional system?
Most overhead costs are converted to direct costs that can be charged directly to a product
Which of the following is an example of a cost that can now be charged directly to a product in a JIT environment?
Depreciation of production equipment
How does a JIT system impact the costs associated with the warehouse facility?
Warehouse costs decrease due to the reduction in all types of inventory
What is the primary focus of a JIT system in terms of reducing costs?
Focusing on reducing various kinds of wasted time to improve the production process
Which of the following is a key advantage of charging depreciation costs directly to products based on machine usage rather than a fixed monthly amount?
It allows for more accurate allocation of costs to products that heavily utilize the machine.
In a JIT production system, which of the following is a key reason that materials handling costs are reduced compared to a traditional manufacturing system?
Machine operators are responsible for moving parts within their own cells, eliminating the need for a dedicated materials handling team.
Which of the following is a key advantage of separately metering and tracking the electricity usage of individual machine cells?
It enables the company to accurately allocate electricity costs to the specific products that consume the most power.
Which of the following is a key advantage of separately tracking and charging operating supplies expenses to individual machine cells?
It encourages machine operators to be more mindful of their supplies consumption and reduce waste.
Which of the following is a key advantage of grouping all repair and maintenance costs into the individual machine cells?
It allows the company to more accurately allocate these costs to the specific products that consume the most machine time.
What is one of the factors that the MRP II system allows, but is directly addressed and reduced by JIT manufacturing methodology?
Allowing work-in-process to build up
Which of the following is the most important database in an MRP II system?
Bill of materials database
Why is the accuracy of the bill of materials database considered of the highest importance in an MRP II system?
To drive the material requirements planning portion
Which database in an MRP II system provides accurate information about product components and is helpful for inventory accountants?
Bill of materials database
In an MRP II system, which factor allowed by the system contributes to increased waste costs?
Excessively long setup times for machines
Which of the following is NOT a type of waste that a JIT system aims to eliminate?
Waste of labor costs from overstaffing
What is a key focus of a JIT system?
Relentlessly eliminating all waste from the system
Which of the following is NOT considered a form of waste that a JIT system aims to reduce?
Overhead costs associated with marketing and advertising
What is the scope of a complete JIT system?
It begins with production at supplier facilities, includes deliveries to the company, and continues through the manufacturing plant
Which of the following statements is true about the implementation of a JIT system?
A JIT system may represent a mix of some JIT components and a more traditional system
Learn about how a Just-in-Time (JIT) system can significantly decrease various aspects of a product's costs, particularly in reducing wasted time and improving efficiency. Explore how JIT systems help in identifying defects early in the production process, reducing rework, and ultimately impacting overhead costs.
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