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Just In Time Production/Theory of Constraints

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6. In order to make a just-in-time production system work properly, it is necessary to
maintain large raw materials inventories.
have raw materials of high quality delivered in large quantities.
have raw materials of high quality delivered in small quantities.
maintain a large work-in-process inventory.

7. Which of the following is NOT a disadvantage of the just-in-time manufacturing philosophy?
Producing in small batches increases the number of machine setups.
Having lower inventory levels decreases carrying costs.
Maintaining low levels of inventory can cause the company to miss a sales opportunity.
Receiving raw materials in small batches increases shipping costs.

8. Which of the following techniques could a manager use to improve the performance of a bottleneck?
Reducing machine set-up times.
Purchasing additional machinery.
Hire more workers.
All of the above could be used to improve a bottleneck's performance.

9. Which of the following is not a strategic decision?
The types of products a company should manufacture
How products should be distributed
Whether to enter new markets
Improving machine setup times

10. The first step in implementing the Theory of Constraints is
improve constraint performance.
eliminate all constraints.
identify constraints.
eliminate bottlenecks.

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Solution Summary

This solution responds to several multiple-choice questions concerning core concepts surrounding just-in-time production and the Theory of Constraints (including resolving bottlenecks).

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6. The idea of a just-in-time production system is to manufacture goods as they are needed. By definition, raw materials are ordered in small quantities. However, if they are of an inferior quality, the company may not be able to procure resources as rapidly as it needs them to meet customer demand. Therefore, it needs to have raw materials of high quality delivered in small quantities.

7. The problem with just-in-time ...

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