Exam 4: Strategic Capacity Management

The ultimate in plant flexibility is a one-hour-changeover time plant.

A production facility works best when it focuses on a fairly limited set of production objectives.

Best operating level is usually a multiple of the level of capacity for which a process was designed.

Outsourcing is a common source of external capacity.

The capacity focus concept can be put into practice through a mechanism called which of the following?

In practice,achieving a perfectly balanced plant is usually desirable but impossible.

The frequency of adding to productive capacity should balance the costs of upgrading too frequently and the costs of upgrading too infrequently.

When deciding to add capacity to a factory which of the following need not be considered?

Why does volatility of demand have a higher effect on a service delivery system than on a manufacturing system?

If the best operating level of a piece of equipment is at a rate of 400 units per hour and the actual output during an hour is 300 units,which of the following is the capacity utilization rate?

In a decision tree,the only time probabilities are applied to a decision node is when the decision is being made by someone else such as you customer or your competitor.

Capacity planning involving acquisition or disposal of fixed assets such as buildings,equipment or facilities is considered as which one of the following planning horizons?

Capacity planning involving consideration of production scheduling and inventory position is characterized by which one of the following time durations?

At some point,the size of a growing plant can become too large and diseconomies of scale become a capacity planning problem.

The capacity utilization rate is found by dividing best operating level by capacity used.

Capacity planning that involves hiring,layoffs,some new tooling,minor equipment purchases,and subcontracting is considered as which one of the following planning horizons?

The objective of strategic capacity planning is to provide an approach for determining the overall capacity level of labor-intensive resources.

What is a capacity cushion and why would a firm have one?

If demand for product "A" were forecast at 1,000,000 units for the coming year and your factory has trained labor and equipment sufficient to produce 150,000 units per month,is the capacity cushion positive or negative? ____________________

Capacity can be defined as the amount of available resource inputs relative to requirements for output over a particular period of time.