MGT 3121 Chapter 3 & 4
Inventory ______ accumulate between workers in a worker-paced line.
can
Suppose the flow rate is 100 customers per hour, the average price is $10, the variable cost is $8, and the fixed cost is $50 per hour. What is the profit?
$150 per hour
Given the following information, calculate the daily profit for the firm. Flow rate = 100 units/day, Average price = $5.00, Average cost = $2.50
$250
If the cycle time for a process goes down then the time to finish X units starting with empty inventory buffers will _________.
decrease
If the cycle time increases and everything else remains constant--average labor utilization ______.
decrease
If the flow time for a process goes down then the time to finish X units starting with empty inventory buffers will ________.
decrease
When flow rate goes up but wages per unit of time stay the same, costs of direct labor __________________.
decrease
f variable costs go up, then margin will ________
decrease
When the takt time increases, the demand rate must have ___.
decreased
If processing time increases, then the capacity at a resource with a single employee ______.
decreases
When takt time goes up, target manpower ________.
decreases
When the demand rate increases, the takt time ____.
decreases
You can off-load the bottleneck by ______ the processing time it spends per flow unit.
decreasing
If process capacity is 100 units per hour and customers desire 80 units per hour then the process is ______________ constrained.
demand
If the utilization of the bottleneck is less than 100% then the process is constrained.
demand
Takt time is solely driven by _______________ rate.
demand
The _________ rate is the number of flow units that customers want per unit of time.
demand
The ______________ rate is the number of flow units that customers want per unit of time.
demand
The bottleneck will have utilization that is less than 100% when the process is _______________ constrained.
demand
In a worker-paced line each worker always works at the same rate.
false
The bottleneck is the resource with the fewest number of employees.
false
The utilization of a non-bottleneck resource can be greater than that of the bottleneck.
false
Utilization can be greater than 100%.
false. flow rate cannot be greater than capacity
A rent payment for a store is an example of what kind of cost?
fixed
If the activities have to be carried out in a given order they are said to have a _____________ sequence.
fixed
Compared to doing a specialized task, the worker in a worker cell will usually experience ________ engagement and motivation.
more
When quantity demanded goes up, ________.
target manpower increases takt time decreases
flow rate and _____________ are identical.
throughput
In a machine-paced line, each step ______ at the same rate.
works at
Being able to line balance without having to observe a fixed sequence will __________ idle time.
decrease
flow rate can be ____________ process capacity.
- equal to - less than
If the cycle time is 2 minutes/customer then how many customers are served per hour?
30
If we know the flow rate and capacity of each labor resource that work in a process, we ______ compute the average labor utilization across employees.
can
For a process that is ________________ constrained the bottleneck resource will have 100% utilization.
capacity
If process capacity is 60 units per hour and customers desire 80 units per hour then the process is _______ constrained.
capacity
Process ____________ determines the maximum flow rate a process can provide per unit of time. Listen to the complete question
capacity
As idle time goes up, the costs of direct labor ________.
goes up
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.
A process that is demand constrained can have utilization of 100%.
False If process is demand constrained then flow rate will be less than capacity.
Which strategy leads to greater employee specialization?
Having an employee perform just a few tasks
Consider a process with two resources where the first has capacity of 2 customers/minute and the second has capacity of 1.5 customers/minute. If the processing time at the first resource goes down, lower than the second, then what will happen to the capacity of the process?
It will decrease
If inventory goes up but flow time stays constant what will happen to cycle time?
It will go down
If cycle time goes up what will happen to lead time?
It will go up
Which could be an appropriate unit for a processing time?
Seconds/customer Minutes/burger
Which of the following contribute to labor content?
The time a worker works on the flow unit The time a worker spends inspecting a flow unit
The calculation of labor content requires ______ all of the processing times for serving one flow unit.
adding
A resource will have idle time when it comes ______ the bottleneck in the process.
after
Off-loading the bottleneck by reassigning activities to another resource is called line __________.
balancing
To increase the capacity of a process one must increase the capacity of the resource that is the __________.
bottle neck
Understanding the location of the _____________ is critical for improving a process.
bottleneck
When the flow rate is less than the demand rate the process is referred to as ____________ constrained.
capacity
Which could be an appropriate unit for a demand rate?
cars per day
Which could be an appropriate unit for a demand rate? Multiple choice question.
cars per day
The amount of work that goes into serving one customer is called labor .
content
Costs of direct labor measure the labor cost associated with serving one
customer
An appropriate unit for capacity of a resource is _______.
customers/minute
An appropriate unit for throughput is ______.
customers/minute burgers/second
An organization that wants to fulfill customer orders more quickly should make the cycle time of their fulfillment process __________.
decrease
Being able to line balance without having to observe a fixed sequence will _______ costs of direct labor.
decrease
From Little's Law we see that if cycle time increases while flow time stayed the same then inventory must ______.
decrease
Takt time depends on ________.
demand
When the flow rate is less than the capacity the process is referred to as ___________ constrained.
demand
The labor cost associated with serving one customer is called the costs of ___________ labor.
direct
Average labor utilization equals labor content ______ (cycle time multiplied by number of employees).
divided by
Processes that are demand constrained _______ have bottlenecks.
do
To satisfy all demand we want cycle time to be _______ takt time.
equal to
Average labor utilization can be greater than 100%.
false
The flow rate for a process should be greater than the demand rate.
false Flow rate should be no greater than the demand rate
A process that is demand constrained can have utilization of 100%.
false if process is demand constrained then flow rate will be less than capacity
The longer the processing time at a resource, the ______ the target manpower for a desired capacity.
greater
A process that is efficient is one where labor utilization is as ______ as possible.
high
Consider two processes that produce the same output with the same amount of resources. The one with the _____ flow rate is more efficient.
higher
The higher the desired capacity at a resource, the ______ the target manpower.
higher
An appropriate unit for takt time is: (Select all that apply.)
hours/customers seconds/burger
The time a resource is paid but not working is referred to as ___________ time.
idle
From Little's Law we see that if flow time stays the same while cycle time decreases then inventory must _______.
increase
If flow rate goes up then profit will _________.
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
When takt time is less than cycle time target, manpower should ________.
increase
When wages per unit of time go up but flow rate stays the same, costs of direct labor _________.
increase
Work cells lead to a(n) _____ in the number of set-ups.
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
As cycle time increases, the time to make Q units __________.
increases
If the number of employees increases--and everything else remains the same--total idle time ______.
increases
When labor content goes up, target manpower ________.
increases
When the demand quantity goes down, the takt time ________.
increases
When you increase the flow rate of a process while keeping the number of resources used the same you are ________ the efficiency of the process.
increasing
Labor utilization ______ a measure of efficiency.
is
If takt time is 30 seconds and cycle time is 40 seconds then all demand ____ satisfied.
is not
Raising the staffing level will do what to the the cost of direct labor?
it depends
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 equal to
Setting an expected demand rate for a given period of time is referred to as ______ the demand.
leveling
The more stations in a process, the ______ the time the first flow unit needs to flow through the system when it is empty.
longer
The more a resource is idle the ____ its utilization.
lower
When there is a fixed sequence of activities, labor utilization is typically ______ than when there is no fixed sequence.
lower
Process capacity determines the ______ supply of the process.
maximum
Total idle time equals Cycle Time multiplied by Number of employees ______ Labor Content
minus
The time through an empty machined-paced process is determined by ______ the # of stations by the cycle time.
multiplying
If takt time is less than cycle time then we are ______ demand.
not satisfying all demand
We refer to the improvement strategy of moving work away from the bottleneck step as _____.
off-loading the bottleneck
The processing time of a resource is how long that particular resource takes to complete processing flow unit.
one
The ____________ time of a resource is how long that particular resource takes to complete one flow unit.
processing
Specialization ______ the need for equipment replication.
reduces
An accurate measure of labor content is ______.
seconds per customer
Specialization usually leads to ______________ processing times.
shorter
Strategies for assigning tasks to employees often differ in how much employees _______.
specialize
As process capacity increases, takt time ______.
stays the same
Leveled demand is turned into a _______ time.
takt
_____________ ______________ time is the amount of idle time per flow unit added up across all resources.
total idle
If the capacity of a resource with a single employee increased then the processing time must have decreased
true
To calculate total idle time, one must know the amount of idle time per flow unit.
true
In a machine-paced process, all steps are connected through a conveyor belt and all of the steps must work at the same rate.
true This is true. In a machine-paced process, all steps are connected through a conveyor belt and all of the steps must work at the same rate even if some of them have more capacity than others.
The flow rate for a process can be less than the demand rate.
true capacity can be less than demand rate
If the capacity of a resource with a single employee increased then the processing time must have decreased True false question.
true refer to the formula for capacity
