Operations Management 7

21) To generate the maximum output, the cycle time should be set as the longest elemental task time. True/False

True

22) Paced lines require that inventory storage areas be placed between stations. True/False

False

5) The Theory of Constraints method is also referred to as the drum-buffer-rope method. True/False

True

7) A business school with plenty of classroom space that hires adjunct faculty for a semester to meet unusually high student demand for courses is an example of elevating a bottleneck. True/False

True

127) Any factor that limits the performance of a system and restricts its output is a(n) ________.

constraint

132) The wages paid to workers on the line are categorized as ________ in the Theory of Constraints.

operational expense

24) The focus for a process improvement exercise should be on balancing: A) flow. B) capacity. C) workload. D) time.

A

27) 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? A) in front of process A B) in front of process B C) in front of process C D) Inventory should not exist anywhere.

A

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

A

128) ________ is the maximum rate of output of a process or a system.

Capacity

129) A(n) ________ is an operation that has the lowest effective capacity of any operation in the process, and thus limits the system's output.

bottleneck

142) A(n) ________ line is a product line that produces several items belonging to the same family.

mixed-model

138) Every time a manufacturer uses one resource, they make a lot size of 300. Once a group of 30 units are completed, they are taken to the next step in the process. The lot of 300 is the ________ and the group of 30 is the ________.

production batch, transfer batch

136) Instead of producing products with the highest profit margins, operations managers should focus on the ________ generated at the ________ .

profit (margin), bottleneck

133) ________ is the total time taken from the start to the finish of a process.

Throughput time

1) A bottleneck is an operation that has the lowest effective capacity of any operation in the process. True/False

True

10) The first step in applying the Theory of Constraints is to identify the constraint. True/False

True

11) The final step in applying the Theory of Constraints is to repeat the first four steps. True/False

True

13) A bottleneck process has the lowest capacity and the longest total time from the start to the finish. True/False

True

15) Short term capacity planning should be driven by identification and management of bottlenecks. True/False

True

16) Line balancing is the assignment of work to stations in a line to achieve the desired output rate with the smallest number of workstations. True/False

True

18) Line balancing applies only to line processes that do assembly work, or to work that can be bundled in many ways to create the jobs for each workstation in the line. True/False

True

2) The process with the least capacity is called a bottleneck if its output is less than market demand. True/False

True

20) The balance delay is the amount by which efficiency falls short of 100 percent. True/False

True

23) A mixed-model line produces several items belonging to the same family. True/False

True

4) Operating processes close to their capacity can result in low customer satisfaction and even losing money despite high sales levels. True/False

True

135) With TOC, ________ are scheduled to maximize their throughput of products while adhering to promised completion dates.

bottlenecks

134) Variability of a firm's workload may create ________.

floating bottlenecks

130) According to the Theory of Constraints, all the money invested in a system in purchasing things that it intends to sell is ________.

inventory

131) According to the Theory of Constraints, brand new cars on the lot waiting to be sold are ________, not ________.

inventory, throughput

141) Regardless of the number of tasks or their lengths, a line balance efficiency of 100% is possible if the number of stations is ________.

one

143) The movement of product from one station to the next as soon as the cycle time has elapsed is called ________.

pacing

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

C

95) Balance delay could be described as the: A) amount by which efficiency falls short of 100 percent. B) efficiency that could be obtained by a solution that achieves the theoretical minimum number of stations. C) maximum time allowed for work on a unit at each station. D) desired output rate.

A

99) A line that produces several items belonging to the same family is called a: A) mixed-model line. B) part family line. C) group technology line. D) cellular line.

A

117) A line-balancing solution has been developed for the assembly line for fertilizer spreaders at Green Grass, Inc. The desired output rate of 30 spreaders per hour will be achieved. The sum of times for all tasks performed on the line is 1200 seconds for each spreader assembled. This is the total productive time. Which of the following statements must be true? A) The cycle time is 30 seconds per spreader. B) The theoretical minimum number of stations is 10. C) If the solution calls for 11 stations, the efficiency is 80%. D) If the solution calls for 12 stations, the efficiency is 80%.

B

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

B

35) The fifth step in Theory of Constraints application, "do not let inertia set in," means that the analyst should: A) create a schedule that maximizes the throughput of the bottlenecks. B) repeat the analysis to identify and manage new set of constraints. C) consider increasing capacity of the bottleneck. D) schedule non-bottleneck resources to support the bottleneck.

B

93) Which one of the following statements is best concerning line balancing? A) The theoretical minimum number of stations must always be fewer than the actual number achieved in a final solution. Increasing the output rate may increase the theoretical minimum number of stations. B) The "largest number of followers" rule assigns as quickly as possible those work elements most difficult to fit into a station. C) Selecting the cycle time can never have an effect on line efficiency.

B

94) What is the definition of "theoretical maximum efficiency"? A) It is the amount by which efficiency falls short of 100 percent. B) It is the efficiency that could be obtained by a solution that achieves the theoretical minimum number of stations. C) It is the maximum time allowed for work on a unit at each station. D) It is alternatively called the desired output rate.

B

96) A line balance that is 100% efficient must: A) be using the minimum cycle time. B) be using the theoretical minimum number of work stations. C) also achieve 100% balance delay. D) be producing the theoretical maximum output.

B

140) ________ is the amount by which efficiency falls short of 100 percent.

Balance delay

26) Practical application of the Theory of Constraints involves the implementation of all of the following steps EXCEPT: A) Identify the system bottleneck(s). B) Exploit the bottleneck(s). C) Reduce the capacity at the bottleneck(s). D) Elevate the bottleneck(s).

C

37) 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) There are floating bottlenecks in the system. C) If the first two steps are run at full capacity, then the third step has a waiting line. D) The first and second steps are bottlenecks for the system.

C

91) In a drum-buffer-rope system, the lot size that moves from one work center to another for additional processing is a(n): A) process batch. B) operations batch. C) transfer batch. D) rope batch.

C

97) Instead of dividing by nc to determine the efficiency of a line balance, you could divide by: A) the number of workers times the number of stations. B) the number of tasks plus the number of stations. C) the sum of the task times plus the sum of the idle times. D) (1-balance delay).

C

139) ________ is the maximum time allowed for work on a unit at each station.

Cycle time

100) Which one of the following statements about line balancing is best? A) If a precedence relationship exists between A and B, they cannot be assigned to the same station. B) If the desired output rate increases, the cycle time also tends to increase. C) The theoretical minimum number of stations can never be achieved, hence the name "theoretical." D) If a line's balance delay is minimized, its efficiency is maximized.

D

25) According to the Theory of Constraints, the four operational measures of capacity include all of the following EXCEPT: A) inventory. B) throughput. C) utilization. D) delivery lead times.

D

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

D

36) Which of the following statements regarding setups is TRUE? A) Unusually high setup times result in higher utilization. B) Processes are generating output throughout the entire setup process. C) A machine used in a line process would probably have fewer setups than a batch process. D) A TOC analyst would not be concerned with setup times on non-bottleneck machines.

D

92) The process batch at the constraint in a drum-buffer-rope system should be: A) the same size as that at any non-constraint. B) the same size as the transfer batch. C) of such a size as to maximize the number of setups for the constraint D) of such a size as to improve utilization of the constraint.

D

98) The most controversial aspect of line-flow layout is: A) the heuristic decision rules in assigning the next work element. B) the number of models produced. C) the cycle time. D) behavioral response.

D

137) ________ is a planning and control system that regulates the flow of work-in-process materials at the bottleneck or the capacity constrained resource in a productive system.

Drum-buffer-rope (DBR)

12) Lanny discovers that the bottleneck is the riveting machine so he schedules all production around when that machine is available. This is an example of elevating the constraint in the five-step constraint management process. True/False

False

14) A competent operations manager should first eliminate all of the bottlenecks from the process. True/False

False

17) Line balancing strives to create workstations so that the capacity utilization for the bottleneck is much higher than for the other workstations in the line. True/False

False

19) Immediate predecessors are the smallest units of work that can be performed independently. True/False

False

3) The process with the least capacity is called a bottleneck if its output is still greater than the market demand. True/False

False

6) According to the Theory of Constraints, the four operational measures include inventory, throughput, delivery lead times and utilization. True/False

False

8) Any system composed of resources that are operating at maximum output will, by definition, have maximum output for the entire system. True/False

False

9) In a shop managed according to TOC principles, inventory is needed only in front of bottlenecks in order to prevent them from sitting idle. True/False

False