Exam 5: Capacity

Table $5.3$ 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: Both products A and B are produced at the same operation called MASAC.27A. -Use the information in Table 5.3 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?

Explain the distinction between effective capacity and peak capacity.

Explain the distinction between blocked and starved operations in a process that consists of sequential dependant operations.

If a system is well balanced, which one of the following changes usually calls for a smaller- capacity cushion?

Increasing the overall process capacity can only occur when the capacity of the bottleneck of the process can be increased.

The ______ strategy refers to a condition which involves smaller, more frequent jumps in capacity.

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

The wait- and- see strategy refers to a condition which involves smaller, more frequent jumps.

Table $5.1$ The Union Manufacturing Company is producing two types of products: $A$ and B. The demand forecasts, batch size, and time standards follow: Both products are produced at the same operation called Mark I. -Use the information in Table 5.1. The company works 250 days per year and operates two shifts, each covering 8 hours. If a 15 percent capacity cushion is maintained, how many hours of capacity can the company expect from each of its Mark I machines?

Which of the following statements about bottlenecks is best?

Managers of line flow process facilities with high- volume production capability tend to express capacity in terms of

A diseconomy of scale is a concept that refers to a condition when the average cost per unit increases as the facility's size increases.

______ is a concept that states that the average unit cost of a good or service can be reduced by increasing its output.

The single milling machine at Stout Manufacturing was severely overloaded last year. The plant operates eight hours per day, five days per week, and 50 weeks per year. Management prefers a capacity cushion of 15 percent. Two major types of products are routed through the milling machine. The annual demand for product A is 3000 units and 2000 units for product B. The batch size for A is 20 units and 40 units for B. The standard processing time for A is 0.5 hours/unit and 0.8 for B. The standard setup time for product A is 2 hours and 8 hours for product B. How many new milling machines are required if Stout does not resort to any short- term capacity options?

Capacity can be expressed by output or input measures.

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

The Northern Manufacturing Company is producing products A and B, using the same machine called MASAC27A. Demand forecasts for next year and other production- related information are provided in the following table. Product A Product B Demand forecast (units/yr) 4,000 12,000 Batch size (units/batch) 80 150 Standard processing time (hr/unit) 25 2 Standard setup time (hr/batch 16 24 The company works 250 days per year and operates 2 shifts each day, each shift covering 8 hours. If 25 percent of capacity cushion is maintained throughout the year, how many machines (MASAC27A) does the company need next year to meet the demand? Round your answer up to the next whole machine.

How is capacity utilization calculated?

Generally, work- in- process inventory will be greater in project and job processes than in continuous processes.

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