OSCM - test 1
Rank--from first to last--the following steps for finding the bottleneck and capacity in a process with rework.
1. at each resource with rework, evaluate the weighted average processing time 2. evaluate the capacity of each resource 3. evaluate for each resources the implied utiliziation
List in order the steps required to find the bottleneck and flow rates in a process with multiple flows, beginning with the first step.
1. compute the demand matrix 2. determine the total demand rate for each resource 3. determine the capacity for each resource 4. calculate the implied utilization for each resource 5. compute the flow rate for each flow unit
Place the steps for finding bottlenecks and capacity in the proper order, with the first step at the top.
1. computer workload matrix 2. add workloads for each resource 3. compute available time at each resource 4. compute implied utilization at each resource 5. divide a unit of time by highest implied utilization
Which of the following statements are true about a process that involves rework?
A process that includes rework has multiple flows. A process that involves rework has different processing times. A process involving rework can lengthen flow times.
what should you do to increase the capacity of a process
increase the capacity of the bottleneck resource regardless of where it is located in the process
True or false: The price of an item impacts the consumption utility you associate with it.
False
Process scope is defined as the set of ____ included in the process
activities
The calculation of labor content requires _____ all of the processing times for serving one flow unit.
adding
What term is used to describe flow units that do not complete a process?
attrition losses
Off-loading the bottleneck by reassigning activities to another resource is called line _____
balancing
If cycle time is greater than the takt time then the process is ______ constrained.
capacity
to increase the capacity of a process, one must increase the capacity of the resource that is the
bottleneck
Inflexibility is the inability of an operation to quickly and ______ change in response to new information.
cheaply, economically, or inexpensively
Companies seeking external help with managing and improving their operations often hire ____ _____
consulting and firms
In the context of a business where products and services are offered to customers, demand is created by the _____
consumers
Demand is driven by the ____ utility of the product or service, its price, and the associated inconvenience for customers.
consumption
Your _____ utility measures how much you like a product or service, ignoring the effects of price and the inconvenience associated with acquiring the product.
consumption
the amount of work the goes into serving one customer is called labor ___
content
When choosing a shipping option when ordering online, customers trade off speed and
cost or price
You manage the finances for a restaurant. Which flow unit would you be most interested in?
currency
A firm's capabilities are defined as the dimensions of the ______ utility function it is able to satisfy
customer
Costs of direct labor measure the labor cost associated with serving one ____
customer
removing _____ flow units from the process is known as scrapping
defective
When an automotive supplier ships a batch of seat belts that do not latch properly, there is variability due to ____
defects
Takt time is solely driven by the rate of _____.
demand
When the flow rate is less than the process capacity, the process is referred to as ______ capacity
demand
the ______ rate is the number of flow units that customers want per unit of time
demand
a process flow diagram is a graphical way to ____ the process
describe
Inefficiency can be visualized as the gap between a firm's current position and the ____ _____
efficient frontier
Which of the following are the goals that we want to accomplish when determining how much work each resource is capable of doing?
evaluate the actual flow rate through the process, find the bottleneck, determine the maximum flow rate
True or false: How far you have to drive to the store to buy an item impacts the consumption utility you associate with it.
false
what expenses are included in the price? - future demand, financing, timing, shipping
financing and shipping
If the activities have to be carried out in a given order they are said to have a ___ sequence.
fixed
If a restaurateur wants to know how many dollars the restaurant makes per day, which process metric is needed?
flow rate
Little's Law states that Inventory = ____ ____ x flow time
flow rate
Assuming a given product mix, what is the result when demand rates are divided by the highest implied utilization?
flow rates
the demand matrix tells us how many ____ _____ move through each resource
flow unit
in a process flow diagram, triangles are used to represent _____ waiting in a system
flow units
What are variables that firms may need to consider in addition to the two variables traditionally associated with graphs showing the efficient frontier? - human rights, unit costs, sustainability, customer utility
human rights, sustainability
Resources help the flow units to move from being a unit of __________ to a unit of ___________.
input, output
Because it may change frequently throughout the day, calculating average ____ may be more involved than other process metrics.
inventory
Flow units waiting in the process without being worked on are often referred to as buffer ______
inventory
________ is a mismatch between supply and demand
inventory
What are the most important questions the manager of a process should ask?
is the process well performing? how can we make the process better?
When you increase the flow rate of a process while keeping the number of resources used the same, what happens to the efficiency of the process?
it increases
the nearer the location the (more or less) the inconvenience component
less
for a given level of revenue, the higher the cost, the ____ the profit
lower
the flow unit is the basic unit that ___ a process
moves through
If takt time is less than cycle time then we are _____ demand
not satisfying all demand
What general term describes a number of improvement strategies in which work is moved away from the bottleneck step?
off loading the bottleneck
what is an appropriate unit for a flow rate?
orders per day
what factors are part of a process flow diagram?
outputs, resources, inputs
a firm is ____ dominated when its competitors perform equally or better on all attributes of the customer's utility function.
pareto
Which of the following are flow units in a hospital emergency room?`
patients who can wait for treatments, patients who need X-rays, patients who need to be treated immediately
Organizations can improve their business by making trade-offs among the dimensions of _____
performance
_____ includes the total cost of owning the product or receiving the service.
price
_____ _____ identifies and analyzes all the activities involved in serving one unit of demand or, put differently, in providing one unit of supply
process analysis
a ____ ____ is something we can measure that informs us about the performance and capability of a process.
process metric
What factor is subtracted from cycle time in order to figure out how much idle time exists in production?
processing time
To calculate the workload of a resource that serves different flow unit types, one must know which of the following?
processing time for each flow unit type, demand rate for each flow unit type
the extra or repeated activities performed on a defective flow unit are collectively called ____
rework
The combination of different flow unit types moving through a process is referred as _____ mix
product
Inflexibility is the inability of an operation to ___ and cheaply change in response to new information.
quickly or rapidly
In a demand matrix, the columns correspond to various flow units. What information is entered in the rows?
resources
_____ are the things a business uses to help transform inputs into outputs
resources
_______ are shown as rectangular boxes in the process flow diagram
resources or activities
Businesses (or non-profit organizations) offer products or ______ to customers
services
A trade-off between responsiveness and costs is referred to as a
strategic trade off
The goal of operations management is to match ______ with _______
supply, demand
In order to set a staffing level, leveled demand is turned into a ____ time
takt
when quantity demanded goes up ____
takt time decreased, target manpower increases
Which factors might prevent a company from expanding capacity in all resources with an implied utilization of over 100%?
the margin of profit, costs of expansion
Consider two processes that produce the same output with the same amount of resources. Which one is more efficient?
the one with the higher flow rate
What is true about flow units in a process where different products require different amounts of a resource's time?
there are multiple flow units
flow rate and ____ are identical
throughput
Flow rate is measured in "flow units per unit of ____."
time
what is the goal of determining takt time?
to help design a process flow that meets exactly the demand rate
____ _____ time is the amount of idle time per flow unit added up across all resources
total idle
economists often refer to the inconvenience component as _______ costs
transaction
True or false: An online retailer offering same-day shipping impacts the inconvenience component of utility.
true
True or false: Freshness is a performance attribute for fruit.
true
True or false: Fuel economy is a performance attribute for a car.
true
True or false: If price and convenience of two products are equal, the product customers associate with the highest consumption utility is likely to have the highest demand.
true
True or false: The size of a cell phone is a fit attribute.
true
A process is a set of activities that takes a set of inputs and ___
turns them into a set of outputs
an _____ resource is a supplier of the downstream portion of a process
upstream
According to economic theory, a consumer buys an SUV--instead of a passenger car--because she or he expects to achieve the highest ______ from buying an SUV
utility
because _____ does not add value to the customer, the customer is not willing to pay for it.
waste
the three sources of inefficiency are ____, ____, and ____.
waste, variability, inflexibiliy
Attrition losses refer to flow units that exit the process ___ completion.
before
Customers with different preferences for the same type of goods are in different
market segments
Understanding how customers derive utility from products and services is the primary function of _____
marketing
Customers buy products that ___ their utility.
maximize or increase