Exam 5: Constraint Management

Figure 5.2 The figure above shows the process for customers arriving at Pierre's Spa and Salon. After signing in, customers are routed to different locations in the Spa for the two different services provided. The numbers in parentheses are the time in minutes for each step of the process. -Use the information in Figure 5.2. What is the process bottleneck?

Short term capacity planning should be driven by identification and management of bottlenecks.

Table 5.4 The Superior Management Company assembles muffalettas in The Big Easy. The steps to making a world class sandwich and the time required (in seconds) for each step are shown in the table. -Customers demand muffalettas at the rate of 20 sandwiches per hour. Use the information in Table 5.4 to determine the maximum efficiency you can achieve balancing this line with an output rate that meets demand.

________ is the total time taken from the start to the finish of a process.

Figure 5.1 The figure above shows the process for paying tuition at a major university. Students receive their bill, for the next term, for review. They are directed to different tables for clarifications, before being asked to pay their tuition at E. The numbers in parentheses are the time in minutes for each step of the process. -Use the information in Figure 5.1. Where would you expect student wait times to occur?

What is contribution margin for a product? How might it be used to manage the productive resources on a shop floor?

Instead of producing products with the highest profit margins, operations managers should focus on the ________ generated at the ________.

Instead of dividing the total standard time required to assemble each unit by nc to determine the efficiency of a line balance, you could divide by:

Use the process flow diagram to determine which of these events has the greatest net benefit.

________ is the maximum time allowed for work on a unit at each station.

The fourth step in Theory of Constraints application, "elevate the bottleneck(s)," means that the analyst should:

A mixed-model line produces several items belonging to the same family.

Table 5.2 A company makes four products that have the following characteristics: Product A sells for $75 but needs $20 of materials and $20 of labor to produce; Product B sells for $90 but needs $45 of materials and $20 of labor to produce; Product C sells for $110 but needs $50 of materials and $30 of labor to produce; Product D sells for $135 but needs $75 of materials and $40 of labor to produce. The processing requirements for each product on each of the four machines are shown in the table. Work centers W, X, Y, and Z are available for 40 hours per week and have no setup time when switching between products. Market demand is 50 As, 60 Bs, 70 Cs, and 80 Ds per week. In the questions that follow, the traditional method refers to maximizing the contribution margin per unit for each product, and the bottleneck method refers to maximizing the contribution margin per minute at the bottleneck for each product. -Use the information in Table 5.2. Which work center is the bottleneck operation?

Table 5.5 Balance the following line for an output rate of 3 units per minute. -Use the information in Table 5.5. How many stations are required?

Fun Vehicles, Inc. makes beach buggies on an assembly line. The total productive time to make one buggy is 300 seconds. The current line has a 90-second cycle time and consists of four workstations. The balance delay of this line must be:

Variability of a firm's workload may create ________.

Table 5.3 King Supply makes four different types of plumbing fixtures: W, X, Y and Z. The contribution margins for these products are: $70 for Product W, $60 for Product X, $90 for Product Y and $100 for Product Z. Fixed overhead is estimated at $5,500 per week. The manufacture of each fixture requires four machines, Machines #1, 2, 3 and 4. Each of the machines is available for 40 hours a week and there is no setup time required when shifting from the production of one product to any other. The processing requirements to make one unit of each product are shown in the table. Weekly product demand for the next planning period has been forecasted as follows: 70 Ws, 60 Xs, 50 Ys and 30 Zs. In the questions that follow, the traditional method refers to maximizing the contribution margin per unit for each product, and the bottleneck method refers to maximizing the contribution margin per minute at the bottleneck for each product. -Use the information in Table 5.3. Using the bottleneck method, what is the optimal product mix?

Table 5.1 A company makes four products that have the following characteristics: Product A sells for $50 but needs $10 of materials and $15 of labor to produce; Product B sells for $75 but needs $30 of materials and $15 of labor to produce; Product C sells for $100 but needs $50 of materials and $30 of labor to produce; Product D sells for $150 but needs $75 of materials and $40 of labor to produce. The processing requirements for each product on each of the four machines are shown in the table. Work centers W, X, Y, and Z are available for 40 hours per week and have no setup time when switching between products. Market demand for each product is 80 units per week. In the questions that follow, the traditional method refers to maximizing the contribution margin per unit for each product, and the bottleneck method refers to maximizing the contribution margin per minute at the bottleneck for each product. -Use the information in Table 5.1. Using the traditional method, in what sequence should products be scheduled for production?

In a drum-buffer-rope system, the lot size that moves from one work center to another for additional processing is a(n):

Table 5.6 Balance the following line for an output rate of five pieces per hour. The times are in minutes (not seconds). -Use the information from Table 5.6. The theoretical minimum number of stations is: