OPM Midterm

Flow units waiting in the process without being worked on are often referred to as buffer

inventory

Process Analysis __can or cannot__ be used with both manufacturing and service business

can

When organizations make a trade-off they focus on meeting one dimension of

customer or consumer

If process capacity is 100 units per hour and customers desire 80 units per hour then the process is _______ constrained

demand

A process flow diagram is a graphical way to ____ the process

describe

If the cycle time is 2 minutes/customer then how many customers are served per hour

30

A process flow diagram indicates

Both where a flow unit is processed and where it is held in inventory

To increase the capacity of a process one must increase the capacity of the resource that is the ____

Bottleneck

For a process that is ____ constrained the bottleneck resource will have 100% utilization

Capacity

What is an appropriate unit for demand rate

Cars per Day

Which could be an appropriate unit for a demand rate

Cars/day

Firm's capabilities are defined as the dimensions of the

Customer or consumer

An appropriate unit for capacity of a resource is

Customers/ minute

An appropriate unit for throughput is

Customers/min Burgers/ sec

From Little's Law we see that if cycle time increases while flow time stayed the same then inventory must ____

Decrease

Inventory is a mismatch between supply and

Demand

The ___ rate is the number of flow units that customers want per unit of time

Demand

When the flow rate is less than the capacity the process is referred to as ____ constrained

Demand

T/F: If the capacity at a resource with multiple employees went up then the processing time definitely decreased

False (Capacity could have gone up because the number of employees increased)

T/F: Utilization can be greater than 100%

False (Flow rate cannot be greater than capacity)

T/F: The flow rate for a process should be greater than the demand rate

False (Flow rate should be no greater than the demand rate)

T/F: The utilization of a non-bottlebeck resource can be greater than that of the bottleneck

False (No resource works more than the bottleneck)

T/F: Process Analysis is only applicable to manufacturing settings

False.

In a process flow diagram, triangles are used to represent ____ waiting in a system

Flow Units

From Little's Law we see that if inventory stays the same but flow time increases then cycle time must

Increase

If the cycle time increases, but no new resources are added to the process, then the time needed to serve 100 customers will

Increase

To increase the capacity of a process, one should

Increase the capacity of the bottleneck resource regardless of where it is located in the process

____ is a mismatch between supply and demand

Inventory

Imagine a capacity constrained, single resource process with multiple employees working at the single resource. If the number of employees increases then what will happen to the cycle time for the process?

It will decrease

Flow rate can be _____ process capacity

Less than or Equal to

The bottleneck in a process is the resource with the ____ capacity

Lowest

Process Capacity determines the ____ supply of the process

Maximum

Process capacity determines the _____ supply of the process

Maximum

A rigorous framework for understanding the detailed operations of a business is known as

Process Analysis

____ _____ identifies and analyzes all the activities involved in serving one unit of demand or put differently, in providing one unit of suppy

Process Analysis

___ ____ ____ is a graphical way to describe

Process Flow Diagram

___ ____ ____ is a graphical way to describe a process

Process Flow Diagram

Flow rate and ______ are idential

Throughput

What shape is used to represent flow units waiting in a system (Buffer inventory)

Triangle

T/F: A process flow diagram outlines a directional flow in the procedure

True

T/F: The utilization of a process is defined as the ratio between the flow rate and the process capacity

True

T/F: If the capacity of a resource with a single employee increased then the processing time must have decreased

True (Formula for capacity)

Flow units waiting in the process without being worked on are often referred to as ___ inventory

buffer

Organizations can improve their business by reducing _____ so that they do not have to sacrifice one performance dimension

inefficiency/inefficiencies

Organizations can improve their business by making trade-offs among the dimensions of

performance

An appropriate unit for throughput is

Burgers/second, customers/minute

Process _____ determines the maximum flow rate a process can provide per unit of time

capacity