Exam 20: Constraint Management

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A way to find a bottleneck is to use one's knowledge of a particular plant, look at the system in operation, and talk with supervisors and workers.

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According to the theory of constraints, throughput is the rate at which product is passed through the manufacturing system.

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The effects of statistical variations in processing times in a dependent sequence will eventually cancel themselves out due to the law of averages.

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A useful measure of inventory performance is called "dollar days." In which of the following areas are dollar days measurements not useful?

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In a process sequence where a product flows from process A to process B, process A is called the "mother" process.

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A synchronous manufacturing system does not have excess capacity throughout the system, except for the bottleneck.

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According to the theory of constraints which of the following is a financial measurement that can be used to measure the firm's ability to make money?

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A process batch should be no larger than the transfer batch.

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The operational measure of throughput is "the rate at which money is generated by the system through production of goods and services that might be sold."

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The "dollar days" inventory measurement results from a complex algorithm used to compute individual units of inventory and their respective ordering and holding costs.

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One way to find a bottleneck is to run a capacity resource profile.

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OPT stands for optimal purchasing technique.

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Which of the following is a negative aspect of JIT compared to synchronous manufacturing?

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Mr.Goldratt's "Theory of Constraints" is useful only in manufacturing settings.

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JIT requires work-in-process when used with kanban so there is inventory to pull.When compared to synchronous manufacturing this is viewed as a negative aspect of JIT.

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On an assembly line a transfer batch can be one unit.

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Looking at the loads that are placed on each resource by the products that are scheduled through them is called process flow profiling.

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Departments within a firm often are at odds with each other because reward systems are often not synchronized with the basic goal of the firm: to make money.

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Which of the following is one of Dr.Eli Goldratt's rules of production scheduling for optimized production technology?

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From an operations standpoint, one of the goals of the firm under the theory of constraints is to increase throughput while simultaneously reducing inventory and reducing operating expense.

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