Question 1

A bottleneck is an operation that has the lowest effective capacity of any operation in the process.

Accepted Answer

A) True 
 B)False

Question 2

In a dental office,measuring capacity based on the number of patients that receive service over a typical day is an example of an output measure of capacity.

Accepted Answer

A) True 
 B)False

Question 3

Utilization is calculated as the ratio of Capacity / Actual output.

Accepted Answer

A) True 
 B)False

Question 4

The maximum output that can reasonably be sustained under normal conditions is the capacity cushion for a process.

Accepted Answer

A) True 
 B)False

Question 5

Economies of scale is a concept that states that the average unit cost of a good or service will increase with increasing output rate.

Accepted Answer

A) True 
 B)False

Question 6

Table 4.2
High Tech, Inc. is producing two types of products: A and B. Both are produced at the same sawing operation. Because of demand uncertainties, the operations manager obtained three demand forecasts (pessimistic, expected, and optimistic). The demand forecasts, batch sizes (units/batch), processing times (hr/unit), and setup times (hr/batch) follow.
 
$\begin{array}{c}
\quad\quad\quad\quad\quad\text { Time Standard } \quad\quad \quad\quad\quad\quad\quad \text { Demand Forecasts (  000 units/yr) }\
\begin{array}{|l|l|l|l|l|l|l|}
\hline \text { Product } & \text { Processing } & \text { Setup } & \text { Batch Size } & \text { Pessimistic } & \text { Expected } & \text { Optimistic } \
\hline \text { A } & .20 & 2.0 & 40 & 200 & 240 & 300 \
\text { B } & .15 & 3.0 & 50 & 160 & 180 & 200 \
\hline
\end{array}\end{array}$ 
The sawing machines operate on two 8-hour shifts, 5 days per week, and 50 weeks per year. The manager wants to maintain a 10 percent capacity cushion.
-Using the information from Table 4.2,how many hours of capacity can the company expect from each of its sawing machines?

Accepted Answer

A)  less than 3500 hours 
B)  more than 3500 hours but less than 3700 hours 
C)  more than 3700 hours but less than 3900 hours 
D)  more than 3900 hours 
A)  less than 3500 hours 
B)  more than 3500 hours but less than 3700 hours 
C)  more than 3700 hours but less than 3900 hours 
D)  more than 3900 hours

Question 7

Table 4.3
The North Bend Manufacturing Company is producing two types of products, A and B. Demand forecasts for next year and other production-related information are provided in the following table:
 $$\begin{array} { l | c | c } 
& \text { Product A } & \text { Product B } \
\hline \text { Demand forecast (units/yr) } & 4,000 & 12,000 \
\text { Batch size (units/batch) } & 80 & 150 \
\text { Standard processing time (hr/unit) } & 2.5 & 2 \
\text { Standard setup time (hr/batch } & 18 & 24
\end{array}$$ 
Both products A and B are produced at the same operation called MASAC27A.
-Use the information in Table 4.3 to help answer this question.Currently,the company has 12 MASAC27A machines,and financial constraints prevent any expansion for the next year.Which one of the following alternatives will allow next year's demand to be fully covered?

Accepted Answer

A)  Do nothing. 
B)  Increase the capacity cushion to 30 percent. 
C)  Increase the batch size of product B to 300 units. 
D)  Decrease the capacity cushion by 1 percent. 
A)  Do nothing. 
B)  Increase the capacity cushion to 30 percent. 
C)  Increase the batch size of product B to 300 units. 
D)  Decrease the capacity cushion by 1 percent.

Question 8

Explain the cost and time implications that inventory has for the purposes of process choice.

Accepted Answer

Inventory has two critical implications:

Question 9

A capacity cushion is the amount of inventory that a firm maintains to handle sudden increases in demand or temporary loss of production capacity.

Accepted Answer

A) True 
 B)False

Question 10

Which one of the following statements about capacity expansion is best?

Accepted Answer

A)  The timing and sizing of expansion are related. 
B)  Lost sales are more likely if the expansionist strategy is used. 
C)  The expansionist strategy minimizes risk. 
D)  The expansionist strategy lags behind demand and relies on short-term capacity expansion options. 
A)  The timing and sizing of expansion are related. 
B)  Lost sales are more likely if the expansionist strategy is used. 
C)  The expansionist strategy minimizes risk. 
D)  The expansionist strategy lags behind demand and relies on short-term capacity expansion options.

Question 11

Waiting line models are often used for capacity planning.

Accepted Answer

A) True 
 B)False

Question 12

Give four principal reasons why economies of scale can occur when output increases.

Accepted Answer

The four reasons are spreading

Question 13

Which one of the following statements explaining some aspect of economies of scale is best?

Accepted Answer

A)  A larger facility usually has a smaller total fixed cost. 
B)  A 100-bed hospital costs more to build than twice the cost of a 50-bed hospital. 
C)  With higher volumes, the process shifts toward flexible flows, with resources dedicated to individual products. 
D)  Dedicating resources to individual products reduces changeovers and setups. 
A)  A larger facility usually has a smaller total fixed cost. 
B)  A 100-bed hospital costs more to build than twice the cost of a 50-bed hospital. 
C)  With higher volumes, the process shifts toward flexible flows, with resources dedicated to individual products. 
D)  Dedicating resources to individual products reduces changeovers and setups.

Question 14

Many alternative strategies are available for the timing and sizing decision in capacity expansion.Which one of the following statements regarding these strategies is best?

Accepted Answer

A)  The expansionist strategy makes large, frequent jumps. 
B)  Lost sales are more likely when the expansionist strategy is adopted. 
C)  The wait-and-see strategy makes large, infrequent jumps. 
D)  The expansionist strategy involves large, infrequent jumps in capacity. 
A)  The expansionist strategy makes large, frequent jumps. 
B)  Lost sales are more likely when the expansionist strategy is adopted. 
C)  The wait-and-see strategy makes large, infrequent jumps. 
D)  The expansionist strategy involves large, infrequent jumps in capacity.

Question 15

Explain the meaning and significance of the different between random and predictable variation in a process.

Accepted Answer

Random variation refers to uncertainty t

Question 16

The higher that process variability is,the more expensive and difficult the process is to manage.

Accepted Answer

A) True 
 B)False

Question 17

More complex waiting-line problems must be analyzed with simulation.

Accepted Answer

A) True 
 B)False

Question 18

The expansionist strategy refers to a condition which involves large,frequent jumps in capacity.

Accepted Answer

A) True 
 B)False

Question 19

The ________ strategy refers to a condition which involves large,infrequent jumps in capacity.

Accepted Answer

The answer of The ________ strategy refers to a condition...

Question 20

Which of the following statements about bottlenecks is best?

Accepted Answer

A)  Floating bottlenecks are created by stability in the workload. 
B)  When capacities are perfectly balanced, it can be said that every operation is a bottleneck. 
C)  Increasing bottleneck capacity does not increase plant capacity. 
D)  Floating bottlenecks are most likely to occur with line flow processes. 
A)  Floating bottlenecks are created by stability in the workload. 
B)  When capacities are perfectly balanced, it can be said that every operation is a bottleneck. 
C)  Increasing bottleneck capacity does not increase plant capacity. 
D)  Floating bottlenecks are most likely to occur with line flow processes.

A bottleneck is an operation that has the lowest effective capacity of any operation in the process.

In a dental office,measuring capacity based on the number of patients that receive service over a typical day is an example of an output measure of capacity.

Utilization is calculated as the ratio of Capacity / Actual output.

The maximum output that can reasonably be sustained under normal conditions is the capacity cushion for a process.

Economies of scale is a concept that states that the average unit cost of a good or service will increase with increasing output rate.

Explain the cost and time implications that inventory has for the purposes of process choice.

A capacity cushion is the amount of inventory that a firm maintains to handle sudden increases in demand or temporary loss of production capacity.

Which one of the following statements about capacity expansion is best?

Waiting line models are often used for capacity planning.

Give four principal reasons why economies of scale can occur when output increases.

Which one of the following statements explaining some aspect of economies of scale is best?

Many alternative strategies are available for the timing and sizing decision in capacity expansion.Which one of the following statements regarding these strategies is best?

Explain the meaning and significance of the different between random and predictable variation in a process.

The higher that process variability is,the more expensive and difficult the process is to manage.

More complex waiting-line problems must be analyzed with simulation.

The expansionist strategy refers to a condition which involves large,frequent jumps in capacity.

The ________ strategy refers to a condition which involves large,infrequent jumps in capacity.

Which of the following statements about bottlenecks is best?

Creating Customer Value through Operations

Supply Chain Management

Process Configuration

Inventory Management

Quality and Process Improvement

Lean Systems

Managing Projects

Location and Layout

Managing Demand and Forecasting

Operations Planning and Scheduling

Resource Planning

Decision Making

Financial Analysis

Work Measurement

Learning Curve Analysis

Computer-Integrated Manufacturing

Acceptance Sampling Plans

Simulation

Special Inventory Models

Linear Programming

Waiting Lines

Filters

Exam 4: Capacity

A bottleneck is an operation that has the lowest effective capacity of any operation in the process.

In a dental office,measuring capacity based on the number of patients that receive service over a typical day is an example of an output measure of capacity.

Utilization is calculated as the ratio of Capacity / Actual output.

The maximum output that can reasonably be sustained under normal conditions is the capacity cushion for a process.

Economies of scale is a concept that states that the average unit cost of a good or service will increase with increasing output rate.

Explain the cost and time implications that inventory has for the purposes of process choice.

A capacity cushion is the amount of inventory that a firm maintains to handle sudden increases in demand or temporary loss of production capacity.

Which one of the following statements about capacity expansion is best?

Waiting line models are often used for capacity planning.

Give four principal reasons why economies of scale can occur when output increases.

Which one of the following statements explaining some aspect of economies of scale is best?

Many alternative strategies are available for the timing and sizing decision in capacity expansion.Which one of the following statements regarding these strategies is best?

Explain the meaning and significance of the different between random and predictable variation in a process.

The higher that process variability is,the more expensive and difficult the process is to manage.

More complex waiting-line problems must be analyzed with simulation.

The expansionist strategy refers to a condition which involves large,frequent jumps in capacity.

The ________ strategy refers to a condition which involves large,infrequent jumps in capacity.

Which of the following statements about bottlenecks is best?

Creating Customer Value through Operations

Supply Chain Management

Process Configuration

Inventory Management

Quality and Process Improvement

Lean Systems

Managing Projects

Location and Layout

Managing Demand and Forecasting

Operations Planning and Scheduling

Resource Planning

Decision Making

Financial Analysis

Work Measurement

Learning Curve Analysis

Computer-Integrated Manufacturing

Acceptance Sampling Plans

Simulation

Special Inventory Models

Linear Programming

Waiting Lines

Filters