BUAD 341 Exam 3

A work system has six stations that have process times of 5,8,5,12,10, and 23 minutes. What is the throughput time of the system in minutes? A. 63 B. 126 C. 5 D. 23 E. 11

A. 63

Represents the system bottleneck A. Drum B. Buffer C. Rope

A. Drum

What is #1 in the throughput world because it has the greatest potential impact on the bottom line A. Increasing T B. Decreasing I & I C. Decreasing OE

A. Increasing T

based on demand forecast A. Make to stock (push) B. Make to order (pull)

A. Make to stock (push)

Consider consecutive processes A−B−​C, where process A has a capacity of 20 units per​ hour, process B has a capacity of 25 units per​ hour, and process C has a capacity of 30 units per hour. Where would an operations manager want any​ inventory? A. in front of process A. B. in front of process B. C. in front of process C. D. Inventory should not exist anywhere.

A. in front of process A.

The third step in Theory of Constraints​ application, "subordinate all other decisions to Step​ 2," means​ that: A. the analyst should schedule non−bottleneck processes to support the bottleneck schedule. B. the analyst should seek to increase capacity of only the bottleneck resources. C. the analyst should seek to increase capacity of both the bottleneck and non−bottleneck resources. D. the analyst should wait for authorization before proceeding with any system−wide changes.

A. the analyst should schedule non−bottleneck processes to support the bottleneck schedule.

Bottleneck

Any resource whose capacity is less than the demand placed on it

A protection for the drum, measured in time- all resources that feed the bottleneck must be given enough time to overcome any delays A. Drum B. Buffer C. Rope

B. Buffer

What is #2 in the throughput world because excess WIP and finished goods jeopardize future throughput A. Increasing T B. Decreasing I & I C. Decreasing OE

B. Decreasing I & I

based on demand A. Make to stock (push) B. Make to order (pull)

B. Make to order (pull)

Which of the following is the fourth step in the theory of​ constraints? A. Develop a plan for overcoming the identified constraints. B. Reduce the effects of the constraints by offloading work or by expanding capability. C. When one set of constraints is​ overcome, go back and identify new constraints. D. Focus resources on accomplishing the plan.

B. Reduce the effects of the constraints by offloading work or by expanding capability.

What is the time of the slowest workstation in a production​ system? A. effective capacity B. bottleneck time C. utilization D. throughput time

B. bottleneck time

Design capacity is​ the: A. capacity a firm expects to achieve given the current operating constraints. B. theoretical maximum output of a system in a given period under ideal conditions. C. average output that can be achieved under ideal conditions. D. minimum usable capacity of a particular facility. E. sum of all of the​ organization's inputs.

B. theoretical maximum output of a system in a given period under ideal conditions.

A work system has six situations that have process times of 14,8,5,12,10, and 19 minutes. What is the bottleneck time (measured in minutes)? A. 68 B. 5 C. 19 D. 11 E. 17

C. 19

What is #3 in the throughput world because significant reductions (workforce reductions) usually jeopardize future throughput A. Increasing T B. Decreasing I & I C. Decreasing OE

C. Decreasing OE

Release materials only when needed by constraint. Prevents early release of materials. Prevents accumulation of WIP A. Drum B. Buffer C. Rope

C. Rope

Effective capacity×Efficiency ​equals: A. utilization. B. actual capacity. C. actual output. D. design capacity. E. efficient capacity.

C. actual output

Utilization will typically be lower than efficiency​ because: A. effective capacity equals design capacity. B. expected output is less than actual output. C. effective capacity is less than design capacity. D. effective capacity is greater than design capacity. E. expected output is less than rated capacity.

C. effective capacity is less than design capacity

The Theory of Constraints​ (TOC) strives to reduce the effect of constraints​ by: A. offloading work from constrained workstations. B. increasing constrained workstation capability. C. changing workstation order to reduce throughput time. D. A and B E. A, B, and C

D. A and B

There are three consecutive steps in a customer service process. The first two steps are each capable of serving 25 customers per hour while the third step can process only 20 customers per hour. Which of the following statements regarding this system is​ true? A. There are floating bottlenecks in the system. B. The first and second steps are bottlenecks for the system. C. The entire system is capable of processing 25 customers per hour. D. If the first two steps are run at full​ capacity, t

D. If the first two steps are run at full​ capacity, then the third step has a waiting line.

Which of the following is NOT a valid principle of bottleneck​ management? A. Increasing the capacity of a​ non-bottleneck station is a mirage. B. Release work orders to the system at the pace set by the​ bottleneck's capacity. C. Lost time at the bottleneck represents lost capacity for the whole system. D. Increasing the capacity of a​ non-bottleneck station increases the capacity for the whole system.

D. Increasing the capacity of a​ non-bottleneck station increases the capacity for the whole system.

The second step in Theory of Constraints​ application, "exploit the​ bottleneck(s)," means that the analyst​ should: A. consider increasing capacity of the bottleneck. B. schedule non−bottleneck resources to support the bottleneck. C. repeat the analysis process to look for other bottlenecks. D. create a schedule that maximizes the throughput of the bottlenecks.

D. create a schedule that maximizes the throughput of the bottlenecks

What is the theoretical maximum output of a system in a given period under ideal​ conditions? A. efficiency B. effective capacity C. utilization D. design capacity

D. design capacity

Work should be released into the​ system: A. when the first step in the process is idle. B. when a customer order is received. C. when a customer order is completed. D. when the bottlenecks need work.

D. when the bottlenecks need work

How can you add more capacity to a constraint? A. labor B. capital investment C. outsourcing D. redesign E. All of the above

E. All of the above

Which of the following techniques is NOT a technique for dealing with a​ bottleneck? A. Develop alternate routings. B. Schedule throughput to match the capacity of the bottleneck. C. Increase the capacity of the constraint. D. Have​ cross-trained employees available to keep the constraint at full operation. E. All are techniques for dealing with bottlenecks.

E. All the techniques for dealing with bottlenecks

Which of the following is one of the four principles of bottleneck​ management? A. Lost time at a​ non-bottleneck is lost system capacity. B. Bottlenecks should be moved to the end of the system process. C. Increased​ non-bottleneck capacity is increased system capacity. D. Increasing capacity at bottleneck stations is a mirage. E. Release work orders to the system at the​ bottleneck's capacity pace.

E. Release work orders to the system at the bottleneck's capacity pace

Assume market demand is 10 units per day Machine 1 is at 20 units per day Machine 2 is at 15 units per day Machine 3 is at 9 units per day Machine 4 is at 7 units per day Machine 5 is at 11 units per day Which of the machines are bottlenecks? (select all that apply)

Machines 3 and 4

Design capacity is the theoretical maximum output of a system in a given period under ideal conditions. True False

True

T/F Utilization and efficiency are factors to emphasize at the non-constraint resources

false

Bottleneck time

the time of the longest (slowest) process in a system. the process time of the constraint. 1/7 units/day = 0.14 days

contraint

variable where a significant improvement in local performance causes a significant improvement in global performance