Lean Operations Unit 3

Which of the following are valid scheduling rules according to Goldratt's TOC? Please check all that apply. Hint. There are three correct choices. A. Bottlenecks govern both throughput and inventory B. Do not balance flow, balance capacity C. An hour lost at the bottleneck is an hour lost for the entire system D. Utilization of a non-bottleneck resource is determined by the system constraints E. An hour saved at the constraint is a mirage

A, C, D

Which of the following is the fourth step in the theory of​ constraints? A. Reduce the effects of the constraints by offloading work or by expanding capability. B. Focus resources on accomplishing the plan. C. When one set of constraints is​ overcome, go back and identify new constraints. D. Develop a plan for overcoming the identified constraints.

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

Which of the following is one of the four principles of bottleneck​ management? A. Release work orders to the system at the​ bottleneck's capacity pace. B. Bottlenecks should be moved to the end of the system process. C. Increased​ non-bottleneck capacity is increased system capacity. D. Lost time at a​ non-bottleneck is lost system capacity. E. Increasing capacity at bottleneck stations is a mirage.

A. Release work orders to the system at the​ bottleneck's capacity pace.

Efficiency will always be higher than utilization because... A. Effective capacity is lower than design capacity B. False, utilization and efficiency are equal in value C. False, utilization is usually greater than efficiency D. Effective capacity is greater than design capacity E. Effective capacity equals design capacity

A. Effective capacity is lower than design capacity

According to the Drum-Buffer-Rope (DBR) system, new work is released into a system with an internal constraint when A. The constraint needs work B. A Kanban container gets empty C. The customer places a new order D. The first step in the process needs work E. All of the above

A. The constraint needs work

A work system has six stations that have process times of 11​, ​8, 5,​ 12, 10, and 19 minutes. What is the bottleneck time​ (measured in​ minutes)? ​(Round answer to the nearest whole​ unit.) A.19 B.5 C.17 D.65 E.11

A.19

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

Effective capacity×Efficiency ​equals: A. actual capacity. B. expected output. C. efficient capacity. D. utilization. E. design capacity.

B. expected output.

Consider consecutive processes Aminus−Bminus−​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? A. in front of process C. B. in front of process A. C. in front of process B. D. Inventory should not exist anywhere.

B. in front of process A.

The third step in Theory of Constraints​ application, "subordinate all other decisions to Step​ 2," means​ that: A. the analyst should seek to increase capacity of both the bottleneck and nonminus−bottleneck resources. B. the analyst should schedule nonminus−bottleneck processes to support the bottleneck schedule. C. the analyst should wait for authorization before proceeding with any systemminus−wide changes. D. the analyst should seek to increase capacity of only the bottleneck resources.

B. the analyst should schedule nonminus−bottleneck processes to support the bottleneck schedule.

Assume a two-step process: (i) step 1 with a capacity of 5 parts/hr and (ii) step 2 with a process time of 10 mins. The bottleneck time for this two-step process is... A. 5 minutes B. 12 minutes C. 22 minutes D. 10 minutes E. 15 minutes

B. 12 minutes (60mins/hr / 5 parts/hr)

The role of the rope in the Drum-Buffer-Rope (DBR) system of managing flow is to A.Set the pace of work for the other steps in the process B. Link the release of raw materials into the system to the needs of the constraint C. Set aside a small amount of inventory that protects the constraint from D. upstream supply disruptions E. All of the above F. None of the above

B. Link the release of raw materials into the system to the needs of the constraint

When is a bottleneck also the constraint? A. Never B. When there is only one bottleneck in the system C. When there are at least two bottlenecks in the system D. Always

B. When there is only one bottleneck in the system

The second step in Theory of Constraints​ application, "exploit the​ bottleneck(s)," means that the analyst​ should: A. schedule nonminus−bottleneck resources to support the bottleneck. B. consider increasing capacity of the bottleneck. C. create a schedule that maximizes the throughput of the bottlenecks. D. repeat the analysis process to look for other bottlenecks.

C. create a schedule that maximizes the throughput of the bottlenecks.

Assume a two-step process: (i) step 1 with a capacity of 5 parts/hr and (ii) step 2 with a process time of 10 mins. The throughput time for this two-step process is... A. 5 minutes B. 12 minutes C. 22 minutes D. 10 minutes E. 15 minutes

C. 22 minutes 10 mins + 12 mins

The residual value of the NCX-10 machine (the constraint in The Goal) would be captured under what ThA performance metric? A. Throughput (T) B. Operating Expense (OE) C. Inventory & Investment (I&I) D. All of the above E. None of the above

C. Inventory & Investment (I&I)

A work system has six stations that have process times of 9​, ​8, 5,​ 12, 10, and 17 minutes. What is the throughput time of the system in​ minutes?​ (Round answer to the nearest whole​ unit.) A.122 B.5 C.61

C.61

The Theory of Constraints​ (TOC) strives to reduce the effect of constraints​ by: A. offloading work from constrained workstations. B. increasing constrained workstation capability. C. changing workstation order to reduce throughput time. D. A and B E. ​A, B, and C

D. A and B

Which of the following is NOT a valid principle of bottleneck​ management? A. Increasing the capacity of a​ non-bottleneck station is a mirage. B. Release work orders to the system at the pace set by the​ bottleneck's capacity. C. Lost time at the bottleneck represents lost capacity for the whole system. D. Increasing the capacity of a​ non-bottleneck station increases the capacity for the whole system.

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

What is the theoretical maximum output of a system in a given period under ideal​ conditions? A. efficiency B. utilization C. effective capacity D. design capacity

D. design capacity

Design capacity is​ the: A. capacity a firm expects to achieve given the current operating constraints. B. average output that can be achieved under ideal conditions. C. sum of all of the​ organization's inputs. D. theoretical maximum output of a system in a given period under ideal conditions. E. minimum usable capacity of a particular facility.

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

Work should be released into the​ system: A. when a customer order is completed. B. when the first step in the process is idle. C. when a customer order is received. D. when the bottlenecks need work.

D. when the bottlenecks need work.

Which of the following corresponds to "Elevating" the constraint? A. Moving quality control in front of the constraint B. Finding the step with the least capacity C. Tying the release of raw materials to the constraint D. Adding capacity at the constraint E. All of the above

D. Adding capacity at the constraint

Which of the following techniques is NOT a technique for dealing with a​ bottleneck? A. Develop alternate routings. B. Schedule throughput to match the capacity of the bottleneck. C. Increase the capacity of the constraint. D. Have​ cross-trained employees available to keep the constraint at full operation. E. All are techniques for dealing with bottlenecks.

E. All are techniques for dealing with bottlenecks.

Utilization will typically be lower than efficiency​ because: A. expected output is less than rated capacity. B. expected output is less than actual output. C. effective capacity equals design capacity. D. effective capacity is greater than design capacity. E. effective capacity is less than design capacity.

E. effective capacity is less than design capacity.

Which of the following is not one of Goldratt's scheduling rules? A. Priorities can be set only by examining the system's constraints B. Bottlenecks govern both throughput and inventory C. Utilization and activation of a resource are not the same D. An hour saved at a non-bottleneck is a mirage E. Do not balance flow, balance capacity

E. Do not balance flow, balance capacity

Over the last quarter, an organization has experienced an increase in their Operating Expense (OE), while their Throughput (T) and Inventory and Investment (I&I) have remained the same. Which of the following is true about this organization? Over the last quarter, an organization has experienced an increase in their Operating Expense (OE), while their Throughput (T) and Inventory and Investment (I&I) have remained the same. Which of the following is true about this organization? (A): Their Net Profit has increased (B): Their Return on Investment (ROI) has decreased (C): Their Net Profit has decreased (D): Their net Cash Flows have increased E. (A) and (D) above F. (B) and (C) above

F. (B) and (C) above

Depreciation for the NCX-10 machine (the constraint in The Goal) would be captured under what ThA performance metric? Depreciation for the NCX-10 machine (the constraint in The Goal) would be captured under what ThA performance metric? Throughput (T) Operating Expense (OE) Inventory & Investment (I&I) None of the above All of the above

Operating Expense (OE)

Assume a manufacturing company with an internal constraint. If efficiency or utilization are increased for the constraint, which of the following is most likely? The firm will make more money The firm will make the same amount of money The firm will make less money Cannot determine

The firm will make more money

Consider the boy-scout hike described in The Goal. Making an analogy between the boy scouts walking in single file and a sequential manufacturing process, the trail walked by the LAST boy scout would represent Consider the boy-scout hike described in The Goal. Making an analogy between the boy scouts walking in single file and a sequential manufacturing process, the trail walked by the LAST boy scout would represent Efficiency Inventory & Investment (I&I) Operating Expense (OE) Throughput (T) Utilization

Throughput (T)

Design capacity is the theoretical maximum output of a system in a given period under ideal conditions. True False

True