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Lean Materials Management
Section A: Objective Type & Short Questions (30 marks)
 This section consists of Multiples Choice & Short Note Type questions.
 Answer all the questions.
 Part one carries 1 mark each & Part Two carries 5 marks each.
Part One:
Multiple choices:
1. The top management planning process during which the Demand and Supply sides of the
business meet one a month for risk assessment and analysis is called___________.
a. Sales and operation planning (S&OP)
b. Sales, Inventory and operation planning (SIOP)
c. Production, sales and Inventory (PSI) process
d. All of the above
2. Which of the following comes under 5-S?
a. Seri
b. Seiketsu
c. Straighten
d. All of the above
3. ___________is the process of aligning components with process to meet customer need.
a. Lean management
b. Material management
c. Inventory Management
d. None of the above
4. ________refers to the way that the material requirement system generates the signal for
material to move.
a. Planning
b. Demand
c. Execution
d. None of the above
5. BOMs stands for_______
6. SMED stand for_____________
a. Simple manufacturing exchange of Die
b. Single minute execution of die
c. Single manufacturing engineers and design
d. Society for manufacturing engineers and design
Examination Paper of Lean Materials Management
IIBM Institute of Business Management
7. Which of the following comes under Reliability?
a. Quality
b. Integrity of promises
c. Responsiveness to schedule changes
d. All of the above
8. DMAIC stand for_______
a. Denote, Measurable, Auctions, Improvement, Create
b. Define, Measurement, Analyze, Improve, Control
c. Define, Measure, Analyze, Improve, Control
d. None of the above
9. _________ are about accountability in organizations and, thus are everywhere in highperformance
a. Planning
b. Communication
c. Management
d. None of the above
10. ___________ is a mapping exercise to track information or decision making through an
organization chart.
a. TVM
b. ERP
d. JIT
Part Two:
1. Write a short note on Vendor Managed Inventory?
2. Differentiate between functional manufacturing and process flow?
3. How would you explain the rules for master production schedule level loading?
4. What do you understand by the term of Inventory Management?
Section B: Caselets (40 marks)
 This section consists of Caselets.
 Answer all the questions.
 Each caselet carries 20 marks.
 Detailed information should form the part of your answer (Word limit 200 to 250 words).
Caselet 1
Examination Paper of Lean Materials Management
IIBM Institute of Business Management
Times are slow for your company right now and with the rising costs of materials and wages, your profits
are at an all-time low. Because of this unfortunate situation, you will need to let some employees go. The
senior management team has already compiled the list of people whose employment will be terminated
two weeks from today. However, the people on the list will not know until the day of the termination.
You have called a meeting of your department managers and supervisors (judges). The managers and
supervisors do not know that a list has been created, so you will need to let them know this at some point
in the conversation. Also, they will not be able to see the list until the day of the terminations. Obviously,
this is a very confidential topic and should not be shared with anybody outside of this meeting.
The purpose of your meeting today is to confide in this group and assure them that none of them are on
the list. You also want to get their feedback on how the general employee base will react to the news and
event in two weeks. Next, you’d like to understand and anticipate any questions that they believe will
arise so that appropriate answers can be prepared. Finally, you would like to devise an action
plan/transition plan for the day after the event.
What you can tell the managers is the number of people they will each be losing, if you find that
information important to share. Here is the breakdown:
 Order Processing will lose four of its 12 people
 Human Resources will lose two of its five people
 Production will lose eight of its 40 people
After introductions, you should begin discussing this upcoming event with your managers (judges). Spend
as much time on each of the following questions as your group feels is necessary.
1. How will this impact the areas?
2. How will the department managers plan for this without breaking confidentiality?
Caselet 2
Alton Towers
Alton Towers was voted the UK’s number one theme park again this year. It is located in the
heart of England in Staffordshire, where there is easy access from both the M1 and M6,
although access through the village of Alton towards the site is difficult. The roads are narrow
and there are twisting bends, which coaches find difficult to manoeuvre round.
The site evolved from being a traditional English garden attraction in the 1950s to an exciting
leisure park after a company decision was made in the 1980s to convert the gardens to an
American-style theme park. The aim was to attract more visitors. The idea was a success and
over the years the park has been constantly updated with increasingly bigger and more exciting
rides and spectacular attractions. Alton Towers set out to be the market leader from the
beginning. It boasts the best attractions in the UK. It was the first to have the largest flume in
the world in 1982.
The company was taken over by the Tussauds Group in 1990. Changes were made to existing
attractions and layout of the park. Other changes included a short walk towards Thunder
Valley, leading to the Haunted House.
Examination Paper of Lean Materials Management
IIBM Institute of Business Management
In 1994 the most spectacular ride ever seen in the UK was introduced. This was Nemesis – an
inverted roller coaster. The thrilling suspended ride – Oblivion – was opened in 1998. This is
a vertical drop roller coaster. The latest addition to the park in 2000 is the Hex – the legend of
the Towers. This is a disorientating ‘haunted’ swing. These ‘white -knuckle’ rides are now
located in the X-Sector. In 1996 a £10m themed hotel on the outskirts of the park was opened.
Participants in the Haunted House and X-Sector rides are photographed as they take part.
These photographs are ready for viewing and purchasing at the end of the rides.
There is an admission charge to the park, but once inside the park all the rides and attractions
are free. Ticket prices are differentiated and include Peak and Off -Peak, Day Tickets, Family
Tickets and Season Tickets.
Visitors to the park can choose to eat at a variety of restaurants dotted all over the park.
Each ride has its own souvenir shop attached and there are also gift shops where Alton Towers
merchandise can be purchased at prices to suit all pockets.
Alton Towers is open every day to visitors from around 24 March until 31 October each year.
Every year 2.7 million visitors visit the park. The volume of visitors in the summer means that
long queues can form, although a ticket reservation process is in operation for the most popular
rides. Alton Towers is not seeking to increase the number of visitors passing through the
gates, but to encourage people to spend more on food and merchandise and to come back again.
1. Explain how Alton Towers kept ahead of the competition in the years from 1982 until
2. Explain the benefits to Alton Towers of having restaurants and souvenir shops dotted
around the site?
Section C: Applied Theory (30 marks)
 This section consists of Long Questions.
 Answer all the questions.
 Each question carries 15 marks.
 Detailed information should form the part of your answer (Word limit 150 to 200 words).
1. Describe the control Group method? Explain the effective steps and results of it?
2. Define the customer focused Quality (Six Sigma)? How many steps are involve in DMAIC
3. Explain the following terms?
a) Kanban
b) kaizen
c) Lean Inventory Strategy