BA 341 Exam 3

If a plant has an effective capacity of 6,500 and an efficiency of 88​%, then its actual​ (planned) output​ =

5720

The Academic Computing Center has five trainers available in its computer labs to provide training sessions to students. Assume that the design capacity of the system is 2,700 students per semester and that effective capacity equals​ 88% of design capacity. If the number of students who actually got their orientation session is 1,750​, what is the utilization of the​ system? ​(Round answer to the nearest whole unit or whole​ percentage.) A. 1,540 students B. 71​% C. 65​% D. 2,376 students E. 74​%

65%

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 both the bottleneck and non−bottleneck resources. C. the analyst should seek to increase capacity of only the 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.

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

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

What is the value of​ SunClear's I&I at the end of​ 2014? A. $160,000 B. $855,000 C. $695,000 D. $675,000 E. $930,000

B. $855,000

The staff training center at a large regional hospital provides training sessions in CPR to all employees. Assume that the capacity of this training system was designed to be 1200 employees per year. Since the training center was first put into​ use, the program has become more​ complex, so that 950 now represents the most employees that can be trained per year. In the past​ year, 850 employees were trained. The efficiency of this system is approximately​ ________ and its utilization is approximately​ ________. A. 79.2​ percent; 90.5 percent B. 89.5​ percent; 70.8 percent C. 950​ employees; 850 employees D. 90.5​ percent; 79.2 percent E. 87.5​ percent; 950 employees

B. 89.5​ percent; 70.8 percent

A work system has six stations that have process times of 9​, ​8, 5,​ 12, 10, and 22 minutes. What is the throughput time of the system in​ minutes?​ A.11 B.66 C.22 D.5 E.132

B.66

What was​ SunClear's Operating Expense​ (OE) in​ 2014? A. $5.00 million B. $1.00 million C. $5.825 million D. $4.800 million E. ​$5.750 million

C. $5.825 million

SunClear manufactures and sells natural detergent. The company purchases liquid soap for​ $3/bottle, adds washing soda and borax for a combined​ $1/bottle and sells this product as detergent for​ $10/bottle. SunClear has 20 salespeople. The salespeople mix the additive into detergent just before the product is sold to customers. The salespeople are each paid an average annual salary of​ $50,000. Managers' salaries total​ $750,000, marketing expenses about​ $1 million, and all other fixed costs about​ $3 million per year. At the beginning of​ 2014, SunClear had​ $750,000 in fixed assets. In​ 2014, the firm sold a piece of equipment for​ $35,000 and purchased a new machine for​ $55,000. SunClear uses an annual depreciation rate of​ 10%. The firm sold 1 million bottles of detergent in 2014 and regularly holds raw material inventories equal to two​ weeks' worth of demand. Assume 50 weeks per year. How much did SunClear have in Iventory​ & Investment​ (I&I) at the beginning of​ 2014? A. $40,000 B. $20,000 C. $910,000 D. $80,000 E. $750,000

C. $910,000

​Christopher's Cranks uses a machine that can produce 40 cranks per hour. The firm operates 12 hours per​ day, five days per week. Due to regularly scheduled preventive​ maintenance, the firm expects the machine to be running during approximately 94​% of the available time. Based on experience with other​ products, the firm expects to achieve an efficiency level for the cranks of​ 75%. What is the expected weekly output of cranks for this​ company? ​(Round answer to the nearest whole​ unit.) A. 1,128 B. 2,256 C. 1,692 D. 2,369 E.1,800

C. 1,692

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 entire system is capable of processing 25 customers per hour. C. If the first two steps are run at full​ capacity, then the third step has a waiting line. D. The first and second steps are bottlenecks for the system.

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

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

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

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

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

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

C. bottleneck time

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

C. effective capacity is less than design capacity.

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

C. when the bottlenecks need work.

What was​ SunClear's Net Profit​ (NP) in​ 2014? A. $600,000 B. $3,000,000 C. $2,000,000 D. $175,000 E. $250,000

D. $175,000

What was​ SunClear's Throughput​ (T) in​ 2014? A. $10 million B. $5 million C. $4 million D. $6 million E. $7 million

D. $6 million

Which of the following is NOT a valid principle of bottleneck​ management? A. Lost time at the bottleneck represents lost capacity for the whole system. B. Increasing the capacity of a​ non-bottleneck station is a mirage. C. Release work orders to the system at the pace set by the​ bottleneck's capacity. 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. schedule non−bottleneck resources to support the bottleneck. B. consider increasing capacity of 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. utilization B. effective capacity C. efficiency D. design capacity

D. design capacity

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

D. expected output.

A work system has six stations that have process times of 14​, ​8, 5,​ 12, 10, and 16 minutes. What is the bottleneck time​ (measured in​ minutes)? ​(Round answer to the nearest whole​ unit.) A.14 B.5 C.11 D.16 E.65

D.16

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

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

E. All are techniques for dealing with bottlenecks.

Design capacity is the theoretical maximum output of a system in a given period under ideal conditions. (T/F)

True