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