BUAD341 Exam3

The Theory of Constraints​ (TOC) strives to reduce the effect of constraints​ by:

-offloading work from constrained workstations -increasing constrained workstation capability

​Christopher's Cranks uses a machine that can produce 30 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.)

1,269

A work system has six stations that have process times of 11​, ​8, 5,​ 12, 10, and 21 minutes. What is the bottleneck time​ (measured in​ minutes)? ​(Round answer to the nearest whole​ unit.)

21

A work cell at Chris Ellis Commercial Laundry has a workstation with two​ machines, and each unit produced at the station needs to be processed by both of the machines.​ (The same unit cannot be worked on by both machines​ simultaneously.) Each machine has a production capacity of 4 units per hour. The throughput time of the work cell= ___ minutes per unit ​(enter your response as a whole​ number).

30

If a plant has an effective capacity of 6500 and an efficiency of 88​%, then its actual​ (planned) output​ = ____ units​ (enter your response as a whole​ number).

5720

Under ideal​ conditions, a service bay at a Fast Lube can serve 6 cars per hour. The effective capacity of a Fast Lube service bay is 5.5 cars per​ hour, with efficiency known to be 0.88. The minimum number of service bays Fast Lube needs to achieve an anticipated production of 200 cars per 8​-hour day​ = ___ service bays ​(enter your response rounded up to the next whole​ number).

6

Southeastern Oklahoma State​ University's business program has the facilities and faculty to handle an enrollment of 2,200 new students per semester.​ However, in an effort to limit class sizes to a​ "reasonable" level​ (under 200,​ generally), Southeastern's​ dean, Holly​ Lutze, placed a ceiling on enrollment of 1,500 new students. Although there was ample demand for business courses last​ semester, conflicting schedules allowed only 1,450 new students to take business courses. The utilization rate for Southeastern​ = _____ ​(enter your response as a percentage rounded to one decimal​ place). The efficiency rate for Southeastern​ = ____ ​(enter your response as a percentage rounded to one decimal​ place).

65.9% 96.7%

A work system has six stations that have process times of 10​, ​8, 5,​ 12, 10, and 23 minutes. What is the throughput time of the system in​ minutes?​ (Round answer to the nearest whole​ unit.)

68

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 2,900 students per semester and that effective capacity equals​ 88% of design capacity. If the number of students who actually got their orientation session is 2,000​, what is the utilization of the​ system? ​(Round answer to the nearest whole unit or whole​ percentage.)

69%

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​ ________.

89.5​ percent; 70.8 percent

What are the four principles of bottleneck management?

?

What are the steps in the theory of constraints?

?

Which of the following is NOT a valid principle of bottleneck​ management? A. Increasing the capacity of a​ non-bottleneck station increases the 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. Lost time at the bottleneck represents lost capacity for the whole system.

A. Increasing the capacity of a​ non-bottleneck station increases the capacity for the whole system.

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

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

Which of the following techniques is NOT a technique for dealing with a​ bottleneck? A. Develop alternate routings. B. Have​ cross-trained employees available to keep the constraint at full operation. 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.

Effective capacity×Efficiency ​equals:

Expected output

What is the fourth step in the theory of constraints?

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

What is one of the four principles of bottleneck management?

Release work orders tot eh system at the bottleneck's capacity pace.

A production line at V. J.​ Sugumaran's machine shop has three stations. The first station can process a unit in 6 minutes. The second station has three identical​ machines, each of which can process a unit in 27 minutes​ (each unit only needs to be processed on one of the three ​machines). The third station can process a unit in 8 minutes. Station ___ is the bottleneck​ station, with a bottleneck time of ____ minutes per unit ​(enter your response as a whole​ number).

Station 2 9

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

True

What is the time of the slowest workstation in a production​ system?

bottleneck time

The second step in Theory of Constraints​ application, "exploit the​ bottleneck(s)," means that the analyst​ should:

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?

design capacity

Utilization will typically be lower than efficiency because:

effective capacity is less than design capacity.

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?

in front of process A.

The third step in Theory of Constraints​ application, "subordinate all other decisions to Step​ 2," means​ that:

the analyst should schedule non−bottleneck processes to support the bottleneck schedule.

Design capacity is the:

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

Work should be released into the system:

when the bottlenecks need work.