Operations Management Final

Good reasons to reduce your setup times in a factory are:

A down machine has no output. Long setup times create additional inventory.

Which of these is a true statement?

A system can have more than one bottleneck. A factory's bottleneck can change depending on what products are being made.

Which of these provides input to the Material Requirements Plan? (Choose all that apply)

Bill of Materials Lead Times Inventory Records Master Production Schedule

Which of these is not part of the aggregate planning process?

Business process improvement

Which of the following statements are true? (Choose all that apply)

Capacity requirements planning determines how much capacity you need to meet the production plan. Correct

Rough-cut capacity planning:

Examines total capacity by measuring average factory output.

"Economies of scale" means that large factories operating a planned capacity are able to make many different products at the same time and promise short delivery times.

False

A bottleneck is the work center which has capacity greater than the demand placed on it.

False

Delivery has three performance measures: on-time delivery, fill rate, and unit cost.

False

Demand chain management tries to match supply and demand.

False

First come, first served is widely used in both service and manufacturing firms.

False

Flexibility and quality are measures of the entire supply chain from end-to-end.

False

If the critical ratio of a job is greater than one, then the job is late.

False

It is bad to have a negative cash-to-cash cycle in which the firm receives payment before it pays its suppliers.

False

Major product redesign is often needed to make system improvements in the supply chain.

False

Order placement involves two processes: getting the order from the customer and providing information regarding the order fulfillment process to customers.

False

Scheduling major change-overs sequentially helps to shorten overall setup times for the factory.

False

The Bill of Materials is usually a very simple, straight-forward recipe for making the final product.

False

The greater the workload on a process the less time jobs spend waiting in queues.

False

The preemptive rule in a manufacturing setting is based on remaining time until the due date and the remaining processing time.

False

The shortest process time (SPT) rule is better at meeting due dates when compared to the critical ratio rule.

False

Foundries owe much of their success to:

Flexibility

Which of these in not an approach to capacity planning?

Forecasting

The first step in the Theory of Constraints is to:

Identify the bottleneck

Aggregate production strategies are part of your _______________ planning.

Intermediate range

The key to an effective ERP system is:

It uses one shared database for all departments and functions

Benefits received from "economies of scale" include:

Lower cost per unit produced The more you do something, the better you get at it

Capacity is directly related to: (Choose all that apply)

Output

The best approach to successfully implementing an ERP system is:

Pilot the program on a small scale and then transfer throughout the organization

The aggregate production plan (choose all that are correct)

Plans by product group Is an example of intermediate-range planning Forecasts customer demand

Time Fences

Provide stability and predictability to factory operations. Determine when changes to the MPS can be made.

The level strategy and the chase strategy are examples of a(an) __________ aggregate production strategy.

Pure

Beginning production based on a forecast of customer demand is called a ____________ strategy.

Push

The S&OP requires input from

SalesSales Operations Transportation

Which of these is a concept for reducing setup times?

Single minute exchange of die

To get capacity from time between completions you do which mathematical operation?

Take the inverse

Available-to-Promise

Tells the sales force how many products are available to sell Coordinates production and sales efforts Takes into account current inventory, confirmed orders, and scheduled production. Helps to determine when production is scheduled.

Sales and Operations Planning combines:

The aggregate plan and the sales plan

Which of these statements is true? (Choose all that apply)

The key to mass customization is postponement. Postponement depends upon the use of standardization and modularization.

Which of the following are required for a capacity calculation

Time between process starts Time between process completions Length of the time horizon in question

"Time between completions" is the fundamental basis of a capacity calculation

True

A bottleneck should never be blocked or starved. Non-bottlenecks must function to keep the bottleneck at full utilization.

True

A common approach today is to use outsourcing to satisfy short-term increases in demand.

True

A manufacturing company could increase the output rate of the bottleneck by running larger batches at the bottleneck (assuming another bottleneck in the plant does not interfere).

True

Because of the need to interact with key supply chain partners, sales & operations planning is viewed as a cross-functional process.

True

Equipment utilization is normally expressed as a percentage of design capacity.

True

Final consumers can be found farthest downstream in the supply chain.

True

Finite capacity scheduling can be used to identify the bottleneck in a given process.

True

In supply chain improvement, it is often necessary to reduce the setup time of equipment dramatically so that smaller lots of the product can be economically produced.

True

Inventory records help determine how many items of material, components, and subassemblies need to be ordered to make the final product.

True

It is actually possible to postpone the point of differentiation outside of the factory and further down the supply chain.

True

Supply chain sustainability includes concern for human rights of workers in the supply chain.

True

The Master Production Schedule breaks down the aggregate production plan, specifying what individual products the factory will make each week.

True

The aggregate plan is derived from the company's overall business plan.

True

The first step in planning capacity is to do a rough-cut plan to validate the MPS.

True

The objective of structural and system changes is the same: to remove sources of uncertainty, to reduce replenishment time, and to reduce total cost of supplying the market.

True

The output of a factory can be no higher than the output of the slowest machine, the constraint of the system.

True

The purpose of enterprise resource planning is to support planning and execution systems and the decisions they drive throughout your company.

True

Under the theory of constraints, throughput is defined as the difference between the sales and the operating expenses of a plant.

True