MGTS 3301 Exam 1 Questions With Complete Solutions
A/M/B Correct Answers A = Fastest time
M = Most likely time
B = Slowest time
Asset Turnover= Correct Answers Revenue (or sales)/Total
Assets
Benchmarking Correct Answers is a process in which one
company studies the processes of another company (or industry)
to identify best practices.
Best Operating Level- Correct Answers Output level where
average unit cost is minimized.
Breakthrough Project Correct Answers Exponential in its reach.
Capacity Correct Answers The ability to hold, receive, store, or
accommodate.
Viewed as the amount of output that a system is capable of
achieving over a specific period of time.
In services, the output is often customers served.
In manufacturing, the output may be units produced.
Capacity management needs to consider both inputs and outputs.
,Capacity cushion Correct Answers Capacity in excess of
expected demand.
Capacity Flexibility Correct Answers The ability to rapidly
increase or decrease product levels or the ability to shift rapidly
from one product or service to another.
Flexibility comes from the plant, processes, and workers.
Capacity Focus Correct Answers The idea that a production
facility works best when it is concentrated on a limited set of
production objectives.
i.e.) Focused factory of plant within a plant (PWP) concept
Capacity Planning Time Durations Correct Answers Long
Range: Greater than 1 year
Intermediate Range: Monthly or quarterly plans covering 6
months+
Short Range: Less than one month
Capacity Utilization Rate Correct Answers A measure of how
close the firm is to its best possible operating level.
Capacity Utilization Rate = capacity used / best operating level
Capacity Utilization Rate= Correct Answers Capacity
Used/Best Operating Level
Competitive Dimensions Correct Answers - Price
- Quality
, - Delivery Speed
- Delivery Reliability
- Coping with Changes in Demand
- Flexibility and new product introduction speed
A firm cannot simultaneously excel on all dimensions, so they
must make trade-offs to determine which elements are most
important.
Considerations in Changing Capacity Correct Answers
Maintaining System Balance:
- Similar capacity at each operation are desired
- Manage bottleneck operations
Frequency of Capacity Additions:
- Cost of upgrading too frequently
- Cost of upgrading too infrequently
External Sources of Capacity:
- Outsourcing
- Sharing capacity
Decreasing Capacity:
- Temporary reductions
- Permanent reductions
Core Goods Correct Answers Provide a significant service
component.
Ex) appliances, data storage systems, automobiles
A/M/B Correct Answers A = Fastest time
M = Most likely time
B = Slowest time
Asset Turnover= Correct Answers Revenue (or sales)/Total
Assets
Benchmarking Correct Answers is a process in which one
company studies the processes of another company (or industry)
to identify best practices.
Best Operating Level- Correct Answers Output level where
average unit cost is minimized.
Breakthrough Project Correct Answers Exponential in its reach.
Capacity Correct Answers The ability to hold, receive, store, or
accommodate.
Viewed as the amount of output that a system is capable of
achieving over a specific period of time.
In services, the output is often customers served.
In manufacturing, the output may be units produced.
Capacity management needs to consider both inputs and outputs.
,Capacity cushion Correct Answers Capacity in excess of
expected demand.
Capacity Flexibility Correct Answers The ability to rapidly
increase or decrease product levels or the ability to shift rapidly
from one product or service to another.
Flexibility comes from the plant, processes, and workers.
Capacity Focus Correct Answers The idea that a production
facility works best when it is concentrated on a limited set of
production objectives.
i.e.) Focused factory of plant within a plant (PWP) concept
Capacity Planning Time Durations Correct Answers Long
Range: Greater than 1 year
Intermediate Range: Monthly or quarterly plans covering 6
months+
Short Range: Less than one month
Capacity Utilization Rate Correct Answers A measure of how
close the firm is to its best possible operating level.
Capacity Utilization Rate = capacity used / best operating level
Capacity Utilization Rate= Correct Answers Capacity
Used/Best Operating Level
Competitive Dimensions Correct Answers - Price
- Quality
, - Delivery Speed
- Delivery Reliability
- Coping with Changes in Demand
- Flexibility and new product introduction speed
A firm cannot simultaneously excel on all dimensions, so they
must make trade-offs to determine which elements are most
important.
Considerations in Changing Capacity Correct Answers
Maintaining System Balance:
- Similar capacity at each operation are desired
- Manage bottleneck operations
Frequency of Capacity Additions:
- Cost of upgrading too frequently
- Cost of upgrading too infrequently
External Sources of Capacity:
- Outsourcing
- Sharing capacity
Decreasing Capacity:
- Temporary reductions
- Permanent reductions
Core Goods Correct Answers Provide a significant service
component.
Ex) appliances, data storage systems, automobiles
