BUS435 Exam 2

Using the assembly-line balancing procedure, which of the following is the required cycle time if the production time in minutes per day is 1,440 and the required output per day in units is 2000? Cannot be determined from the information given 250 0.72 500 1.388

0.72 Using equation 8.1, 1,440 minutes/2000 units = 0.72 minutes per unit.

You have just determined the actual number of workstations that will be used on an assembly line to be 6 using the assembly-line balancing procedure. The cycle time of the line is 5 minutes, and the sum of all that tasks required on the line is 25 minutes. Which of the following is the correct value for the resulting line's efficiency? 0.973 0.500 None of these 0.990 0.833

0.833 Using equation 8.3, [25/(6 × 5)] = 0.833.

Assume you are sequencing jobs using Johnson's rule. There are three jobs called A, B and C. The first step in assembling and the second step is painting. Job A requires 3 hours to assemble and 6 hours to paint. Job B requires 7 hours to assemble and 2 hours to paint. Job C requires 4 hours to assemble and 1 hour to paint. The objective is to minimize the total processing time of all jobs, using Johnson's rule. What is the completion time of the last job in the sequence in the second step (painting)? 12 15 14 9 10

15 Johnson's rule states:1. List the operation time for each job on both machines. 2. Select the shortest operation time. 3. If the shortest time is for the first machine, do the job first; if it is for the second machine, do the job last. In the case of a tie, do the job on the first machine. 4. Repeat Steps 2 and 3 for each remaining job until the schedule is complete. Using that the sequence will be A - B - C. The schedule using this sequence will start job A in Step 1 at 0, complete it in step 2 at 9. Job B starts in Step 1 at 3, and completes in Step 2 at 12. (Note idle time in Step 2 from 9 to 10, since job B gets out of Step 1 only at 10 and hence, it can start in Step 2 only at 10. Finally, job C starts in step 1 at 10 and gets completed in Step 2 at 15.

Using the assembly-line balancing procedure, which of the following is the theoretical minimum number of workstations if the task times for the six tasks that make up the job are 4, 6, 7, 2, 6, and 5 minutes, and the cycle time is 10 minutes? 8 None of these 5 3 6

3 Using equation 8.2, (4 + 6 + 7 + 2 + 6 + 5)/10 = 3.

Using the assembly-line balancing procedure, which of the following is the theoretical minimum number of workstations if the task times for the eight tasks that make up the job are 7, 4, 7, 8, 9, 4, 3, and 6 minutes, and the cycle time is 8 minutes? 3 5 None of these 8 6

6 Using equation 8.2, (7 + 4 + 7 + 8 + 9 + 4 + 3 + 6)/8 = 6.

Assume a fixed cost for a process of $120,000. The variable cost to produce each unit of product is $35, and the selling price for the finished product is $50. Which of the following is the number of units that has to be produced and sold to break even? 11,000 units 12,000 units 5,000 units 8,000 units 6,000 units

8,000 units $50 $35 = $15; $120,000/$15 = 8,000 units.

Using the assembly-line balancing procedure, which of the following is the required cycle time in minutes per unit if the daily production time is 480 minutes and the required daily output is 50 units? 480 0.104 9.6 50

9.6 Using equation 8.1, 480 minutes/50 units = 9.6 minutes per unit. Cannot be determined from the information given

Assume you are sequencing jobs using Johnson's rule. There are three jobs called A, B and C. The first step in assembling and the second step is painting. Job A requires 3 hours to assemble and 6 hours to paint. Job B requires 7 hours to assemble and 2 hours to paint. Job C requires 4 hours to assemble and 1 hour to paint. The objective is to minimize the total processing time of all jobs, using Johnson's rule. What is the correct sequence to process the jobs? B - C - A C - B - A A - C - B A - B - C B - A - C

A - B - C Johnson's rule states:1. List the operation time for each job on both machines. 2. Select the shortest operation time. 3. If the shortest time is for the first machine, do the job first; if it is for the second machine, do the job last. In the case of a tie, do the job on the first machine. 4. Repeat Steps 2 and 3 for each remaining job until the schedule is complete. Using that the sequence will be A - B - C

Work station cycle time in an assembly line balancing problem, (choose the most appropriate answer from the choices below)? A and D will increase as the required production per day increases, other things remaining the same. will decrease as the required production per day increases, other things remaining the same. will increase as the production time per day increases, other things remaining the same. will decrease as the production time per day increases, other things remaining the same.

A and D Cycle time decrease as the required production preproduction is needed, implies faster production and hence smaller cycle time. If you had more time per day, then we can take more time per unit, that is cycle time will increase. Hence, E.

We would expect to see in a manufacturing cell layout which of the following? Large teams who collectively do a small part of a finished product None of these More in-process inventory A small team of workers who turn out complete units of work Long production setup times

A small team of workers who turn out complete units of work The overall objective (of a manufacturing cell layout) is to gain the benefits of product layout in job-shop kinds of production. These benefits include:Better human relations.Improved operator expertise.Less in-process inventory and material handling.Faster production setup.

Which of the following is the stage in the operations consulting process that immediately follows "sales and proposal development"? Assure client satisfaction Analyze problem Design, develop, and test alternative solutions Present final report Develop systematic performance measures

Analyze problem See Exhibit 25.2.

Assume you are sequencing jobs using Johnson's rule. A particular job requires 3 hours to assemble and then is followed by 2 hours in the painting department. Which of the following is where you would schedule this job? As early as possible in the unfilled job sequence. Does not matter. As late as possible in the unfilled job sequence. Johnson's rule does not apply. The schedule would depend on the due date.

As late as possible in the unfilled job sequence. Johnson's rule states:1. List the operation time for each job on both machines.2. Select the shortest operation time.3. If the shortest time is for the first machine, do the job first; if it is for the second machine, do the job last. In the case of a tie, do the job on the first machine.4. Repeat Steps 2 and 3 for each remaining job until the schedule is complete. Because the shortest operation time is on the second process, do the job as late in the schedule as possible.

In studying product-process matrix describing layout strategies, which of the following is most appropriate? As you move from project to manufacturing cell to continuous process, product volume increases while standardization increases. As you move from project to manufacturing cell to continuous process, product volume increases while standardization decreases. As you move from project to manufacturing cell to continuous process, product volume decreases while standardization decreases. A and B are true As you move from project to manufacturing cell to continuous process, product volume decreases while standardization increases.

As you move from project to manufacturing cell to continuous process, product volume increases while standardization increases. Follows from exhibit 7.2

Which of the following is the stage in the operations consulting process that immediately follows "assure client satisfaction"? Assemble learnings from the study Present final report Present invoice Design, develop, and test alternative solutions Assure client satisfaction

Assemble learnings from the study See Exhibit 25.2.

Assume there are five jobs (i.e., A, B, C, D, and E) that need to be sequenced in a production schedule. The remaining operating time necessary for completion of job A is 3 days (i.e., job A will take 3 more days to complete), B will take 9 days, C will take 6 days, D will take 5 days and E will take 8 days. Which job should be scheduled last if using the SOT priority rule for job sequencing? D A B C E

B See Exhibit 22.3. SOT (shortest operating time) says to run the job with the shortest completion time first. Job B at nine days has the longest operating time remaining and would be run last.

Some of the suggestions for a good layout for manufacturing and back-office operations include which of the following? Workstations separated so operators don't spend time socializing Adequate waiting facilities Plenty of interstage materials storage to avoid starving downstream workstations Backtracking kept to a minimum None of these

Backtracking kept to a minimum Marks of a good layout for manufacturing and back-office operations include: Straight-line flow pattern (or adaptation).Backtracking kept to a minimum.Production time predictable.Little interstage storage of materials.Open plant floors so everyone can see what is happening.Bottleneck operations under control.Workstations close together.Orderly handling and storage of materials.No unnecessary rehandling of materials.Easily adjustable to changing conditions.

Which of the following is a data analysis and solution development tool from the operations consulting tool kit? Responsibility charts Balanced scorecard Gap analysis Bottleneck analysis Employee surveys

Bottleneck analysis Data analysis and solution development tools from the operations consulting tool kit are problem analysis (SPC tools), bottleneck analysis, computer simulation, and statistical tools. See Exhibit 25.3.

Which of the following is not among the suggestions for a good layout for manufacturing and back-office operations? Open plant floors so everyone can see what is happing Straight-line flow pattern Brightly colored walls and good lighting Production time predictable Workstations close together

Brightly colored walls and good lighting Marks of a good layout for manufacturing and back-office operations include: Straight-line flow pattern (or adaptation).Backtracking kept to a minimum.Production time predictable.Little interstage storage of materials.Open plant floors so everyone can see what is happening.Bottleneck operations under control.Workstations close together.Orderly handling and storage of materials.No unnecessary rehandling of materials.Easily adjustable to changing conditions.

Which of the following is not a principle of reengineering? Treat geographically dispersed resources as though they were centralized. Merge information processing work into the work that produces the information. Link parallel activities instead of integrating their results. Capture information many times, at the source and where it is interpreted. Organize around outcomes not tasks.

Capture information many times, at the source and where it is interpreted. Rule 7. Capture information once-at the source.

Which of the following is not a problem definition tool from the operations consulting tool kit? Five forces model Issue trees Customer surveys Gap analysis Computer simulation

Computer simulation Problem definition tools listed on Exhibit 25.3 are issue trees, customer surveys, gap analysis, employee surveys, and the five forces model.

Which of the following is a cost impact and payoff analysis tool from the operations consulting tool kit? Gap analysis Customer surveys Decision trees Work sampling Statistical tools

Decision trees Cost impact and payoff analysis tools from the operations consulting tool kit are decision trees, balanced scorecard, and stakeholder analysis. See Exhibit 25.3.

Which of the following is the stage in the operations consulting process that immediately follows "analyze problem"? Design, develop, and test alternative solutions Present final report Assure client satisfaction Implement changes Develop systematic performance measures

Design, develop, and test alternative solutions See Exhibit 25.2.

Which of the following is one of Dr. Eli Goldratt's rules of production scheduling for optimized production technology? If you lose an hour at a bottleneck, it is better than making scrap. Do not balance capacity, balance the flow. Do not allow bottlenecks to govern the flow of the line. An hour saved at a bottleneck operation is a mirage. The amount in a process batch should be fixed when the batch is begun and not changed over time or along its route.

Do not balance capacity, balance the flow. Goldratt's rules of production scheduling (Exhibit 23.1):1. Do not balance capacity—balance the flow.2. The level of utilization of a non-bottleneck resource is determined not by its own potential but by some other constraint in the system.3. Utilization and activation of a resource are not the same.4. An hour lost at a bottleneck is an hour lost for the entire system.5. An hour saved at a non-bottleneck is a mirage.6. Bottlenecks govern both throughput and inventory in the system.7. The transfer batch may not and many times should not be equal to the process batch.8. A process batch should be variable both along its route and in time.9. Priorities can be set only by examining the system's constraints. Lead time is a derivative of the schedule.

The placement of which of the following is not determined by production process organization decisions? Machines Work groups Workstations Emergency exits Departments

Emergency exits Emergency exits are determined by safety concerns, not by production process organization decisions.

The efficiency of an assembly line is found by a ratio of the sum of all task times divided by the cycle time. True False

F

Assembly lines are a special case of a project layout. True False

F An assembly line (also called a flow-shop layout) is one in which equipment or work processes are arranged according to the progressive steps by which the product is made. The path for each part is, in effect, a straight line. Assembly lines for shoes, chemical plants, and car washes are all product layouts.

Systematic layout planning is used to design products. True False

F In certain types of layout problems, numerical flow of items between workcenters either is impractical to obtain or does not reveal the qualitative factors that may be crucial to the placement decision. In these situations, the venerable technique known as systematic layout planning can be used.

Which of the following is not considered a major work flow structure? Fabrication Assembly line Project Work center Continuous flow

Fabrication The formats by which a facility is arranged are defined by the general pattern of work flow; there are five basic structures (project, work center, manufacturing cell, assembly line, and continuous process).

A continuous process indicates production of discrete parts moving from workstation to workstation at a controlled rate. True False

False A continuous process is similar to an assembly line in that production follows a predetermined sequence of steps, but the flow is continuous such as with liquids, rather than discrete.

Work-center layouts allocate dissimilar machines into cells to work on products that have dissimilar processing requirements. True False

False A work-center layout, sometimes referred to as a job shop, is where similar equipment or functions are grouped together.

A system that "backward schedules" is designed to determine and report the earliest date an order can be completed. True False

False Backward scheduling starts from some date in the future (possibly a due date) and schedules the required operations in reverse sequence. The backward schedule tells when an order must be started in order to be done by a specific date.

The goal of consulting firms is to satisfy a client's needs. True False

False Because consulting firms are typically partnerships, the goal is to maximize profits for the partners.

Break-even analysis can only be used in production equipment decision making when dealing solely with fixed costs, not variable costs. True False

False Break-even analysis is most suitable when processes and equipment entail a large initial investment and fixed cost, and when variable costs are reasonably proportional to the number of units produced.

JIT requires vendors to be located nearby. When compared to synchronous manufacturing, this is viewed as an advantage of JIT. True False

False Comparing JIT to synchronous manufacturing, JIT does an excellent job in reducing lead times and work-in-process, but it has several drawbacks:1. JIT is limited to repetitive manufacturing.2. JIT requires a stable production level (usually about a month long).3. JIT does not allow very much flexibility in the products produced.4. JIT still requires work-in-process when used with kanban so that there is "something to pull."5. Vendors need to be located nearby because the system depends on smaller, more frequent deliveries.

The "dollar days" inventory measurement can be used in purchasing to discourage large work-in-process and producing earlier than is needed. True False

False Dollar day measurements also could be used in other areas:• Marketing-to discourage holding large amounts of finished-goods inventory.• Purchasing-to discourage placing large purchase orders that on the surface appear to take advantage of quantity discounts.• Manufacturing-to discourage large work-in-process and producing earlier than needed.• Project management-to quantify a project's limited resource investments as a function of time.

A key principle of reengineering is to downsize (layoff) workers and do the same amount of work as before. True False

False Downsizing and layoffs are not mentioned as a principle of reengineering.

A make-to-order firm will work with the customer to design the product and then make it from purchased materials, parts, and components. True False

False Firms that make the customer's product from raw materials, parts, and components are make-to-order firms.

General management consulting often recommends changes in attitudes and culture, which are relatively easy for the client to attain. True False

False General management consulting usually calls for changes in attitudes and culture, which take longer to yield measurable results.

Operations consulting in business process reengineering requires that the consulting team be led by a person with an engineering degree who is certified as a business process engineer. True False

False Neither "certification" nor "business process engineer" are terms used in this chapter.

One of the cost impact and payoff analysis tools from the operations consulting tool kit is bottleneck analysis. True False

False See Exhibit 25.3. Bottleneck analysis is a data analysis and solution development tool.

The closer the customer is to the customer order decoupling point, the longer it takes the customer to receive the product. True False

False Selection of decoupling points is a strategic decision that determines customer lead times and can greatly affect inventory investment. The closer this point is to the customer, the quicker the customer can be served.

Larger transfer batches give shorter lead times and lower inventories, and there is more material handling than smaller transfer batches. True False

False Smaller transfer batches give lower work-in-process inventory but faster product flow and consequently shorter lead time. More material handling is required, however. Larger transfer batches give longer lead times and higher inventories, but there is less material handling.

A synchronous manufacturing system does not have excess capacity throughout the system, except for the bottleneck. True False

False Synchronous manufacturing has excess capacity throughout the system, except for the bottleneck.

The essential issue in satisfying customers in the make-to-stock environment is to balance the cost of the finished item against the willingness of the consumer to pay for it. True False

False The essential issue in satisfying customers in the make-to-stock environment is to balance the level of finished inventory against the level of service to the customer.

Dr. Eli Goldratt feels that the goal of a firm is to make useful products efficiently. True False

False The goal of a firm is to make money.

The effects of statistical variations in processing times in a dependent sequence will eventually cancel themselves out due to the law of averages. True False

False When statistical fluctuations occur in a dependent sequence without any inventory between workstations, there is no opportunity to achieve the average output. When one process takes longer than the average, the next process cannot make up the time.

Which of the following is not an important concept in TOC? File CCR Rope Drum Buffer

File Drum, buffer and rope are discussed in the text. The concept of capacity-constrained resource (CCR) is also discussed. File is not discussed as a TOC concept.

For a continuous-process type of manufacturing, which of the following is the typical production scheduling approach? Shortest due date Infinite backward scheduling Finite forward scheduling Finite backward scheduling Infinite forward scheduling

Finite forward scheduling See Exhibit 22.1. Continuous process schedules are characterized as finite forward scheduling of the process; machine limited.

For a high-volume type of manufacturing, which of the following is the typical production scheduling approach? Finite forward scheduling Assignment method Infinite forward scheduling Infinite backward scheduling Finite backward scheduling

Finite forward scheduling See Exhibit 22.1. High-volume manufacturing schedules are characterized as finite forward scheduling.

One of the principles of reengineering is which of the following? Downsize your headcount while outsourcing nonessential activities. Do not select suppliers on the basis of price alone. Leverage high-cost employees with lower-cost employees. Have those who use the output of a process perform the process. Ensure quality at the source.

Have those who use the output of a process perform the process. Rule 2: Have those who use the output of the process perform the process.

Which of the following is a "focusing step" of Dr. Eli Goldratt's theory of constraints? Reinforce system constraints. Reduce system constraints. If you have no system constraints, make some. Support system constraints. Identify system constraints.

Identify system constraints. Exhibit 23.3 is identified in the text as containing Mr. Goldratt's five focusing steps of theory of constraints:1. Identify the system constraints.2. Decide how to exploit the system constraints.3. Subordinate everything else to that decision.4. Elevate the system constraints.5. If, in the previous steps, the constraints have been broken, go back to Step 1, but do not let inertia become the system constraint.

Which of the following is the stage in the operations consulting process that immediately follows "present final report"? Assure client satisfaction Design, develop, and test alternative solutions Present invoice Implement changes Develop systematic performance measures

Implement changes See Exhibit 25.2.

A material requirements planning system is an example of which of the following scheduling systems? None of these Finite loading, backward scheduling Infinite loading, backward scheduling Finite loading, forward scheduling Infinite loading, forward scheduling

Infinite loading, backward scheduling A material requirements planning (MRP) system is an example of an infinite, backward scheduling system for materials.

Flowcharts are used in both manufacturing and service consulting to track which of the following? Income trends Information Cash flow Ideas Historical milestones

Information Flowcharts can be used in both manufacturing and services to track materials, information, and people flows.

Which of the following is an approach to dealing with a bottleneck? Use Johnson's sequencing rules on bottleneck operations. Move things to a faster bottleneck. Keep a buffer inventory in front of it to ensure that it always has something to work on. Don't worry about the bottleneck; it will take care of itself. Pay an incentive bonus to workers on the bottleneck operation.

Keep a buffer inventory in front of it to ensure that it always has something to work on. There are two things that we must do with a bottleneck:1. Keep a buffer inventory in front of it to ensure that it always has something to work on.2. Communicate back upstream to so that only that amount is provided.

Which of the following is a priority rule used to schedule the sequence of jobs in a production operation? Last complaint first Last-come, first-served Longest slack time first Parts on hand first First on hand first

Last-come, first-served See Exhibit 22.3: FCFS (first-come, first-served); SOT (shortest operating time); EDD (earliest due date first); STR (slack time remaining); STR/OP (slack time remaining per operation); CR (critical ratio); LCFS (last-come, first-served); random order or whim.

In the design of retail service layouts, the term "ambient conditions" could refer to which of the following? Symbols Speed of service Lighting Signs Artifacts

Lighting The term "ambient conditions" refers to background characteristics such as the noise level, music, lighting, temperature, and scent that can affect employee performance and morale as well as customers' perceptions of the service, how long they stay, and how much money they spend.

Which of the following is not one of the major functions of shop-floor control? Assign a priority to each shop order. Measure efficiency, utilization, and productivity of manpower and machines. Track WIP quantity by location by shop order to accounting. Convey shop order status information to the office. Load machine hours into workstations.

Load machine hours into workstations. The major functions of shop-floor control are (1) assigning priority of each shop order; (2) maintaining work-in-process quantity information; (3) conveying shop-order status information to the office; (4) providing actual output data for capacity control purposes; (5) providing quantity by location by shop order for WIP inventory and accounting purposes; and (6) measuring efficiency, utilization, and productivity of manpower and machines.

Which of the following is not a basic type of production layout format? Workcenter Manufacturing cell layout Assembly line Process layout Project layout

Process layout The formats by which departments are arranged in a facility are defined by the general pattern of work flow; there are three basic types (workcenter, assembly line, and project layout) and one hybrid type (manufacturing cell).

Which of the following is not a basic type of process structure? Work center Product-process matrix Continuous process Manufacturing cell Assembly line

Product-process matrix The formats by which a facility is arranged are defined by the general pattern of work flow; there are five basic structures (project, work center, manufacturing cell, assembly line, and continuous process).

Which of the following is not one of the categories in a tour? Customer satisfaction Teamwork and motivation Level of inventory Productivity incentives Commitment to quality

Productivity incentives The categories in a rapid plant assessment tour are (1) customer satisfaction; (2) safety, environment, cleanliness, and order; (3) visual management system; (4) scheduling system; (5) use of space, movement of materials, and product line flow; (6) levels of inventory and work in process; (7) teamwork and motivation; (8) condition and maintenance of equipment and tools; (9) management of complexity and variability; (10) supply chain integration; and (11) commitment to quality.

Which of the following is not a benefit of a manufacturing cell layout? Less in-process inventory and material handling Better human relations Faster production setup Improved operator expertise Reduced cost

Reduced cost The overall objective (of a manufacturing cell layout) is to gain the benefits of product layout in job-shop kinds of production. These benefits include:Better human relations.Improved operator expertise.Less in-process inventory and material handling.Faster production setup.

Which of the following priority rule will minimize the average flow time of jobs and also perform well in other measures such as average lateness CR STR SOT EDD LCFS

SOT See under comparison of priority rules that SOT is optimal for minimizing the average flow time and performing well for average lateness.

Which of the following priority rules used in scheduling the sequence of production is calculated as the time remaining before the due date minus the remaining processing time, with the smallest value being run first? STR LCFS CR SOT EDD

STR See Exhibit 22.3. STR (slack time remaining) is calculated as the time remaining before the due date minus the processing time remaining. Orders with the shortest slack time remaining (STR) are run first.

Which of the following priority rules used in scheduling the sequence of production is calculated as the slack time remaining in the schedule divided by the number of remaining operations, with the smallest value being run first? Johnson's STR/OP LCFS FCFS STR

STR/OP See Exhibit 22.3. STR/OP (slack time remaining per operation) says orders with the shortest slack time per number of operations are run first.

In the design of retail service layouts, the term "ambient conditions" does not refer to which of the following? Staffing Noise level Lighting Scent Music

Staffing The term "ambient conditions" refers to background characteristics such as the noise level, music, lighting, temperature, and scent that can affect employee performance and morale as well as customers' perceptions of the service, how long they stay, and how much money they spend.

The objective of a mixed-model line layout is to meet the demand for a variety of products and avoid building high inventories. True False

T The mixed-model line objective is to meet the demand for a variety of products and to avoid building high inventories.

The first step in balancing an assembly line is to specify the precedence relationships among tasks to be performed on the line. True False

T The steps in balancing an assembly line are straightforward: 1. Specify the sequential relationships among tasks using a precedence diagram.

The term "assembly line" refers to progressive assembly linked by some material handling device. True False

T The term "assembly line" refers to progressive assembly linked by some material handling device.

In designing a production layout a flexible line layout might have the shape of a "U." True False

T Within this broad definition, there are important differences among line types. A few of these are material handling devices (belt or roller conveyor, overhead crane); line configuration (U-shape, straight, branching); pacing (mechanical, human); product mix (one product or multiple products); workstation characteristics (workers may sit, stand, walk with the line, or ride the line); and length of the line (few or many workers).

Which of the following is a tool of shop-floor control? The anticipated delay report The hours worked per employee report The permanent work-in-process report Product and process control report Time and motion studies

The anticipated delay report The basic tools of shop-floor control are:1. The daily dispatch list, which tells the supervisor which jobs are to be run, their priority, and how long each will take. (See Exhibit 22.8A.)2. Various status and exception reports, including (a) the anticipated delay report, (b) scrap reports, (c) rework reports, (d) performance summary reports, and (e) shortage list.3. An input/output control report, which is used by the supervisor to monitor the workload-capacity relationship for each workstation.

A difference between project and continuous flow categories of process flow structures is which of the following? Profit per unit Being a "virtual factory" Discrete parts moving from workstation to workstation Degree of equipment specialization The size and bulk of the product

The size and bulk of the product In a project layout, the product (by virtue of its bulk or weight) remains in a fixed location. Continuous processes are usually highly automated and, in effect, constitute one integrated machine.

An MRP system can allow for product rejects by building a larger batch than is demanded, but a JIT system cannot tolerate poor quality. True False

True An MRP system allows for rejects by building a larger batch than actually needed. A JIT system cannot tolerate poor quality because JIT success is based on a balanced capacity.

Engineer-to-order firms will work with the customer to design the product and then make it from purchased materials, parts, and components. True False

True An engineer-to-order firm will work with the customer to design the product and then make it from purchased materials, parts, and components.

One form of gap analysis used in operations consulting is benchmarking particular client company processes against firms that are exemplars in the process and measuring the differences. True False

True Another form of gap analysis is benchmarking particular client company processes against exemplars in the process and measuring the differences.

According to the theory of constraints, capacity is the time available for production. True False

True Capacity is defined as the available time for production.

Consulting firms are frequently characterized according to whether their primary skill is strategic planning or tactical analysis and implementation. True False

True Consulting firms are also frequently characterized according to whether their primary skill is in strategic planning or in tactical analysis and implementation.

From an operations standpoint, one of the goals of the firm under the theory of constraints is to increase throughput while simultaneously reducing inventory and reducing operating expense. True False

True From an operations standpoint, the goal of the firm is to increase throughput while simultaneously reducing inventory and reducing operating expense.

A project layout is characterized by a high degree of task ordering. True False

True In a project layout, a high degree of task ordering is common.

According to the theory of constraints, it is wrong for manufacturers to try to match capacity with demand by attempting to balance capacity across a sequence of processes. Unbalanced capacity is better. True False

True In synchronous manufacturing thinking, making all capacities the same is viewed as a bad decision.

Initiating performance of scheduled work is commonly termed "dispatching" of orders. True False

True Initiating performance of the scheduled work. This is commonly termed dispatching of orders.

Priority rules are the rules used to obtain a job sequence in production scheduling. True False

True Priority rules are the rules used in obtaining a job sequence.

One of the seven principles or rules for reengineering is to organize around outcomes, not tasks. True False

True Rule 1: Organize around outcomes, not tasks.

A shop-floor control system is a system that uses data from the shop floor as well as data processing files to maintain and communicate status information on shop orders and work centers. True False

True The APICS Dictionary defines a shop-floor control system as a system for utilizing data from the shop floor as well as data processing files to maintain and communicate status information on shop orders and work centers.

The assignment method of job sequencing is a special case of the transportation method of linear programming. True False

True The assignment method is a special case of the transportation method of linear programming.

Buffer inventory in front of a bottleneck is called a time buffer. True False

True The buffer inventory in front of a bottleneck operation is a time buffer.

The focus in the make-to-stock environment is on providing finished goods where and when the customers want them. True False

True The focus in the make-to-stock environment is on providing finished goods where and when the customers want them.

In production scheduling, the process of determining which job to start first on some machine or in some work center is known as sequencing or priority sequencing. True False

True The process of determining the job order on some machine or in some work center is known as sequencing or priority sequencing.

In causal loop analysis, reinforcing loops generate increase or decrease in a measure in which the increase or decrease, if left unmodified, would continue at an ever-increasing rate. True False

True The reinforcing loop indicates that the standard, if left unmodified, would yield an ever-increasing (or decreasing) level.

Theoretically, all schedules are feasible when finite loading is used. True False

True Theoretically, all schedules are feasible when finite loading is used.

A way to find a bottleneck is to use one's knowledge of a particular plant, look at the system in operation, and talk with supervisors and workers. True False

True There are two ways to find the bottleneck (or bottlenecks) in a system. One is to run a capacity resource profile; the other is to use our knowledge of the particular plant, look at the system in operation, and talk with supervisors and workers.

One way to find a bottleneck is to run a capacity resource profile. True False

True There are two ways to find the bottleneck (or bottlenecks) in a system. One is to run a capacity resource profile; the other is to use our knowledge of the particular plant, look at the system in operation, and talk with supervisors and workers.

The volume requirements for the product are one determinant of the choice of which process structure to select. True False

True Two dimensions (of the product/process matrix, Exhibit 7.2) are shown. The first dimension relates to the volume of a particular product or group of standardized products. Standardization is shown on the vertical axis and refers to variations in the product that is produced. These variations are measured in terms of geometric differences, material differences, and so on. Standardized products are highly similar from a manufacturing processing point of view, whereas low standardized products require different processes.

Process selection refers to the strategic decision of selecting which kind of production processes to use to produce a product or provide a service. True False

True Process selection refers to the strategic decision of selecting which kind of production processes to use to produce a product or provide a service.

The closer the customer is to the customer order decoupling point, the more quickly the customer receives the product. True False

True Selection of decoupling points is a strategic decision that determines customer lead times and can greatly affect inventory investment. The closer this point is to the customer, the quicker the customer can be served.

Which of the following basic types of process structures is one in which similar equipment or functions are grouped together? Assembly line Continuous process Work center Project Manufacturing cell

Work center A work-center layout is where similar equipment or functions are grouped together.

Suppose that you have two processes A and B for producing a widget.Process A has a fixed cost of $10,000 and per unit variable cost of $80.00. Process B has a fixed cost of $30,000 and the per unit variable cost is $40.00. The widget sells for $100 regardless of production process used. During the next three years (your planning horizon for the widgets) you expect the economy to be pretty good with sales of widgets to be at least 700 units per year. You will choose Process B, since it has low variable cost. choose Process B, since it will have higher net profit than process A in the next three years. choose either Process A or B, since both will result in same profit for the next three years. be indifferent between choosing Process A and B, because they both have the same break-even point. choose Process A since it has a low fixed cost.

choose Process B, since it will have higher net profit than process A in the next three years. BEP for process A: 10000/(100-80) = 500; Total profit per year for a 700 units production per year = 700*100 - 700*80-10000 = 4000.BEP for process B: 30000/(100-40) = 500; Total profit per year for a 700 units production per year = 700*100 - 700*40-30000 = 12000.In three years, total profit using Process B will be $36000.

According to the theory of constraints, which of the following is a kind of time that makes up the cycle time in production? Research time Break time Quality time Idle time Just-in-time

idle time The following kinds of time make up production cycle time:1. Setup time2. Processing time3. Queue time4. Wait time5. Idle time

According to the theory of constraints, which of the following is an operational measurement that can be used to measure the firm's ability to make money? Unit cost Overhead per unit Operating revenue Inventory Sales

inventory Financial measurements work well at the higher level, but they cannot be used at the operational level. We need another set of measurements that will give us guidance:1. Throughput—the rate at which money is generated by the system through sales.2. Inventory—all the money that the system has invested in purchasing things it intends to sell.3. Operating expenses—all the money that the system spends to turn inventory into throughput.

JIT requires a stable production level. When compared to synchronous manufacturing, this is viewed as a negative aspect of JIT. True False

true Comparing JIT to synchronous manufacturing, JIT does an excellent job in reducing lead times and work-in-process, but it has several drawbacks:1. JIT is limited to repetitive manufacturing.2. JIT requires a stable production level (usually about a month long).3. JIT does not allow very much flexibility in the products produced.4. JIT still requires work-in-process when used with kanban so that there is ''something to pull.''5. Vendors need to be located nearby because the system depends on smaller, more frequent deliveries.