Chapter 15—Integrated Production Processes (IPP)TRUE/FALSE1. Production systems facilitate integration of all aspects of product design, marketing, and manufacturing.ANS: F2. Product life cycle management systems are add-ons or additional ERP modules that organize data by product, including design, manufacturing specifications, quality, and warranty performance.ANS: T3. Cycle time is the time it takes from when authorization is made for goods to be produced to when the goods are completed.ANS: F4. In the pull approach to manufacturing, the sales forecast drives the production plan and goods are produced in large batches.ANS: F5. Theoretically, in the push approach to manufacturing, each batch or job consists of one unit.ANS: F6. With the pull approach to manufacturing, factory machinery is arranged in clusters or cells.ANS: T7. Supply chain management software provides available to promise planning and capable to promise planning.ANS: T8. A process costing system attempts to assign costs to products based on the amount of service operations, such as purchase order preparation, material handling, storage time, wait time, and other nonvalue-added processes, that the products consume.ANS: F9. A cost driver is one of the main factors influencing total cost.ANS: T10. Lifecycle costs are the sum of costs to design, produce, market, deliver, and support a product from conception to ultimate discontinuance.ANS: T11. A supply chain is a sequence of activities performed by an organization that add value or utility to the product produced or service rendered.ANS: F12. The computer technology application that automates the product design process, including but not limited to the functions of geometric modeling, materials stress and strain analysis, drafting, storing product specifications, and mechanical simulation of a product's performance, is called CAD/CAE.ANS: T13. The inventory production schedule is a set of specific production goals developed from forecasts of demand, actual sales orders, and/or inventory information.ANS: F14. MRP is a process that uses bills of material, raw material and WIP inventory status data, open order data, and the master production schedule to calculate a time-phased order requirements schedule for materials and subassemblies.ANS: T15. Continuous inventory management is an inventory management approach where inventory needs and inventory production capabilities are matched across the entire global enterpriseANS: F16. Capacity requirements planning is the process that uses the information from the master production schedule and the time-phased order requirements schedule to develop detailed machine and labor utilization schedule based on available capacity.ANS: T17. Purchase orders convey authority for the manufacture of a specified product or subassembly in specified quantity and describe the material, labor, and machine requirements for the job.ANS: F18. MRP is an integrated decision support system for planning, executing, and controlling manufacturing operationsANS: T19. JIT is a manufacturing philosophy or business strategy for designing production systems that are more responsive to precisely timed customer delivery requirements.ANS: T20. An assembly line manufacturing system is a highly automated computer integrated manufacturing system that has its goal of achieving the ability to quickly produce wide varieties of products using the same equipment.ANS: F21. Computer aided manufacturing is the application of computer and communications technology to improve productivity by linking computer numerical control (CNC) machines, monitoring production, and providing automatic feedback to control operations.ANS: T22. Computer aided process planning is an automated decision support system that generates manufacturing operations instructions and routings based on information about machining requirements and machine capabilities.ANS: T23. An automated storage and retrieval system is one type of automated materials handling system that typically is a computer-based cart system capable of delivering parts and tools among multiple work centers.ANS: F24. The automated storage and retrieval system is a computer-based system for storing and retrieving partsand tools.ANS: T25. The financial accounting system is concerned with the flow of costs through the factory.ANS: F26. A bill of material contains the standard material quantities that are required to produce one unit of end product.ANS: T27. The process of exploding the BOM calculates the standard material quantities required to produce the number of output units shown by the master production schedule (MPS).ANS: T28. The process of exploding the bill of materials results in a master production schedule.ANS: F29. Shop floor control is used to monitor and record the status of manufacturing orders and work centers during the manufacturing process.ANS: T30. A step master shows the necessary steps and the time to complete each step in producing a product.ANS: F31. The material, labor, and machine requirements for each job are reflected in a manufacturing order.ANS: T32. Capable to promise planning is accumulation of the data on current inventories, sales commitments, and planned production to determine whether the production of finished goods will be sufficient to commit to additional sales orders.ANS: F33. Available to promise planning is the accumulation of data on current inventories, sales commitments, planned production and excess production capacity or other planned production capacity that could be quickly converted to production of the desired finished goods necessary to fulfill a sales order request.ANS: F34. Variance analysis is the process of comparing actual information about input costs and usage to standards.ANS: T35. The final move ticket marks the end of the conversion process and the movement of goods to the finished goods warehouse.ANS: TMULTIPLE CHOICE1. Which of the following is not one key characteristics of companies that are successful at managing the pressures resulting from global complexity according to the Deloitte Touche report?a. improved internal business processes in the areas of customers, products, and supply chainsb. better use of technology to increase integration within and between the areas of customers,products and supply chainc. pursuit of new lucrative marketing channelsd. better general capabilities in the areas of collaboration, flexibility, visibility, and technologyANS: C2.