MGT 295
To show the amount of time associated with an activity, as well as the sequence of activities, a project manager could use a ____________ chart
Gantt
Which of the following is not one of the differences between planning capacity for services versus manufacturing?
Cost
The point in the supply chain where inventory is positioned to allow the preceding processes to operate independently is the
customer order decoupling point.
project manager
planning, directing, controlling
Place the steps associated with the production process into order (from first to last). making sourcing delivering
sourcing making delivering
intermediate range
the next 6 to 18 months
Slack
time and activity can be delayed with out delaying entire project
Percentage of projects that are behind schedule or over budget
70%
SVC
Customer served
over capacity is a ________ thing
bad
decision tree
visual or graphic
time
when does the customer need it? Now
Strategy of Work (SOW)
-document objectives -what's to be done -key milestones -metrics -schedule start/stop
project
-set of unique activities -end goal -time frame -1X
capacity strategy
1. Proactive (lead) 2. Wait and see (follow) 3. Tracking
capacity requirements
1. forecast 2. capacity utilization - calculate 3. prospect over planning horizon
Last year a firm had an average inventory of $1,500,000 and the cost of goods sold was $3,750,000. What was the days-of-supply last year?
146
Last year a firm had an average inventory of $1,500,000 and the cost of goods sold was $3,750,000. What was the inventory turn last year?
2.5
A machine has a best operating level of 1,000 units per day. Yesterday, the machine produced 950 units. What was the capacity utilization rate yesterday?
95%
Which of the following are attributes that are used to define a project? A series of related jobs Requires a significant time period to perform Directed toward some major output Has no specific beginning or end
A series of related jobs Requires a significant time period to perform Directed toward some major output
Pure project
A structure for organizing a project where a self-contained team works full time on the project.
Matrix project
A structure that blends the functional and pure project structures. Each project uses people from different functional areas. A dedicated project manager decides what tasks need to be performed and when, but the functional managers control which people to use.
Functional project
A structure where team members are assigned from the functional units of the organization. The team members remain a part of their functional units and typically are not dedicated to the project.
Lead Strategy
Capacity in excess of expected demand (capacity cushion) -demand volatility -service organization
Which of the following are reasons for the volatility of demand on a service delivery system? Customer interaction Customer behavior Customer choice Intangibility
Customer interaction Customer behavior Intangibility
Which of the following is not a step required to make a good?
Decoupling
Cost Variance (CV)
EV - AC
Schedule variance (SV)
EV - PV
CPI
EV/AC
SPI
EV/PV
A schedule that lists all activities by their early start times is a(n)?
Early start schedule
Which technique combines measures of scope, schedule and cost for evaluating project progress?
Earned value management
True or false: Service capacity is subject to less volatile demand fluctuations.
False
True or false: When plant production becomes too small, diseconomies of scale may occur.
False
Work Breakdown Structure (WBS)
Hierarchy of all things that need to happen -coordinating medium -graphic -foster agreement
Which of the following contribute to the development of diseconomies of scale? Higher capacity equipment that requires more maintenance support. Overproduction to keep equipment busy. Equipment that efficiently produces high volumes of product. New equipment that requires less employees to operate.
Higher capacity equipment that requires more maintenance support. Overproduction to keep equipment busy.
Which of the following type of service organization should aim for low utilization because of the high level of uncertainty? Amusement Parks Restaurants Hospitals
Hospitals
Little's law relates inventory, throughput rate, and flow time as
Inventory = Throughput rate x Flow time
A project has how many critical paths?
It is possible to have multiple critical paths.
Every company decides between these two strategies
Proactive and Wait & see
A computer manufacturer has a large order and decides to purchase extra hard drives that will be required from another company at a lower cost rather than increase their capacity; this is an example of?
Outsourcing
What are the two strategies an organization can use when adding in-house capacity is not cost effective?
Outsourcing and shared capacity
AC
cumulative actual cost of the project
Which of the following are advantages of the matrix project structure? Resource duplication is minimized. Team members are less concerned about their future employment after the project is completed. Team members report to two bosses, and the functional manager will be listened to first. There is enhanced communication between functional areas.
Resource duplication is minimized. Team members are less concerned about their future employment after the project is completed. There is enhanced communication between functional areas.
What are some temporary measures to correct supply chain system imbalance? Scheduling employees for overtime. Leasing equipment to increase throughput. Subcontracting for increased capacity. Change customer orders to what is available.
Scheduling employees for overtime. Leasing equipment to increase throughput. Subcontracting for increased capacity.
Gantt Chart
Shows in a graphic manner the amount of time involved and the sequence in which activities can be performed. Often referred to as a bar chart.
When breaking down a project into smaller elements, what terms are used to describe the subdivisions?
Tasks and Subtasks
Which of the following is NOT an advantage of the functional project structure?
Team members report to a dedicated project manager.
Earn Value Management (EVM)
Technique that combines measures of scope, schedule, and cost for evaluating project progress
Critical Path Method (CPM)
The longest path through the network diagram, indicating the shortest amount of time in which a project can be completed
Capacity
The output that a system is capable of achieving over a period of time.
Critical Path (CP)
The sequence(s) of activities in a project that form(s) the longest chain in terms of their time to complete
True or false: Another name for the learning curve is the experience curve.
True
True or false: Capacity planning in the services industry has added pressure on location requirements versus that with manufacturing.
True
True or false: The presence of the customer in a service delivery system increases the volatility of demand.
True
True or false: Typically, there is a trade-off where quicker response to customer demand comes at the expense of greater inventory investment.
True
True or false: When the size of a plant becomes too large, diseconomies of scale become a problem.
True
Mfg
Units produced
Planned Value (PV)
Valuation of each activity work. In the case of the project that generate revenue
Which of the following is a term used to refer to pieces of work that consume time?
activity
Utilization
actual output/design capacity
Efficiency
actual output/effective capacity
the early finish time of a task is calculated by ________
adding the early start and expected duration.
The term that refers to the average number of customers that come to a facility during a specific period of time is known as the
arrival rate
Firms that combine a number of preassembled modules to meet customers' specifications are called
assemble-to-order.
Crash
basic assumption in minimum cost scheduling
The output level where average unit cost is minimized is known as the
best operating level.
Effective capacity
break/set up/lunch
____________ is the output that a system is capable of achieving over a period of time.
capacity
Capacity in excess of expected demand is known as
capacity cushion
The ability to rapidly increase or decrease production levels, or shift from one product or service to another is known as
capacity flexibility
Strategic capacity planning involves: capital-intensive acquisitions. the weekly employee schedule. impacting the firm's cost structure. long-term production.
capital-intensive acquisitions impacting the firm's cost structure long-term production
Location
convenient and easy to use
Lead time can vary based on ______________ the total inventory costs. customization of the product being produced. the amount of customer satisfaction. location of the manufacturing facility.
customization of the product being produced. location of the manufacturing facility.
When building a decision tree, one should use squares to represent which of the following?
decision points
Lag Strategy
demand cushion -volatility is low -high inventory or backlog
Customer order decoupling points determine lead times. are not a necessary supply chain production process. allow manufacturers to see every customer purchase. can impact inventory investment.
determine lead times. can impact inventory investment.
Inventory turn is calculated by
dividing cost of goods sold by average inventory value.
The idea that as a plant volume increases, the average cost per unit drops is known as
economies of scale
The idea that multiple products can be combined and produced at one facility at a lower cost than they can be produced separately is known as
economies of scope
Capital Intensive Resources
facilities, equipment, labor
Capacity speaks to
facility, equipment, and labor
A facility designed around a limited set of production objectives is called a
focused factory
In a ____________ project structure, team members do not report to a dedicated manager, but remain part of their functional units.
functional
Long range
greater than one year
short range
less than one month
capacity focus
limited set of objectives/projects
The long-term relationship between inventory, throughput, and flow time is mathematically related using _____________'s law
little
Firms whose product is built directly from raw materials and components in response to a customer are known as
make-to-order.
Design capacity
max, ideal conditions
CAP
maximum output of process/system
If inventory turn is known, days-of-supply is calculated by
multiplying the inverse of inventory turn by 365 days.
A specific event that should be reached at a certain point in time is often referred to as?
project milestone
The average number of customers that can be processed over a period of time, when the facility is operating at maximum capacity, is known as the ___.
service rate
When there is some leeway regarding when an activity can start, this is referred to as ______________
slack time
What term describes the group of activities assigned to a single organizational unit?
work package