Effective capacity is the:
A. maximum output of a system in a given period.
B. minimum usable capacity of a particular facility.
C. sum of all of the organization's inputs.
D. average output that can be achieved under ideal conditions.
E. capacity a firm expects to achieve given the current operating constraints. - ANSWERSE.
capacity a firm expects to achieve given the current operating constraints.
Utilization will always be lower than efficiency because:
A. effective capacity is less than design capacity.
B. effective capacity equals design capacity.
C. effective capacity is greater than design capacity.
D. expected output is less than rated capacity.
E. expected output is less than actual output. - ANSWERSA. effective capacity is less than design
capacity.
Which of the following is the fourth step in the theory of constraints?
A. Focus resources on accomplishing the plan.
B. Reduce the effects of the constraints by offloading work or by expanding capability.
C. When one set of constraints is overcome, go back and identify new constraints.
D. Develop a plan for overcoming the identified constraints. - ANSWERSB. Reduce the effects of
the constraints by offloading work or by expanding capability.
Which of the following is NOT a valid principle of bottleneck management?
, A. Release work orders to the system at the pace set by the bottleneck's capacity.
B. Lost time at the bottleneck represents lost capacity for the whole system.
C. Increasing the capacity of a non-bottleneck station increases the capacity for the whole
system.
D. Increasing the capacity of a non-bottleneck station is a mirage. - ANSWERSC. Increasing the
capacity of a non-bottleneck station increases the capacity for the whole system.
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. There are floating bottlenecks in the system.
B. The first and second steps are bottlenecks for the system.
C. If the first two steps are run at full capacity, then the third step has a waiting line.
D. The entire system is capable of processing 25 customers per hour. - ANSWERSC. If the first
two steps are run at full capacity, then the third step has a waiting line.
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 C.
C. in front of process B.
D. Inventory should not exist anywhere. - ANSWERSA. 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.