Exam 5: Constraint Management

Every time a manufacturer uses one resource, they make a lot size of 300. Once a group of 30 units are completed, they are taken to the next step in the process. The lot of 300 is the ________ and the group of 30 is the ________.

________ is a planning and control system that regulates the flow of work-in-process materials at the bottleneck or the capacity constrained resource in a productive system.

The wages paid to workers on the line are categorized as ________ in the Theory of Constraints.

Figure 5.4 -Use the information in Figure 5.4. What are the required predecessors of activity H?

A(n) ________ is an operation that has the lowest effective capacity of any operation in the process, and thus limits the system's output.

Balance the assembly line for the tasks contained in the table. The desired output is three units per hour. Available production time per day is eight hours. What is the theoretical minimum number of stations? What is the efficiency for the balanced assembly line?

The Theory of Constraints method is also referred to as the drum-buffer-rope method.

Line balancing strives to create workstations so that the capacity utilization for the bottleneck is much higher than for the other workstations in the line.

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 traditional method, what is the profit if King Supply manufactures the optimal product mix?

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. If 60% of the students are routed to C and 40% are routed to D, what is the average capacity per hour for the process?

Consider the following production process. It is trying to meet a market demand of 500 units per week. Step 1: Material release schedule Step 2: Drilling (capacity is 500 units/week) Step 3: Tapping (capacity is 450 units/week) Step 4: Grinding (capacity is 600 units/week) Step 5: Coating (capacity is 400 units/week) Step 6: Inspection (capacity is 1,000 units/week) a. Where should buffers be placed? b. Which resource is the drum? c. Where should the rope be placed? d. Which resource is the bottleneck? e. Which resource is the CCR?

A line balance that is 100% efficient must:

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, in what sequence should products be scheduled for production?

Figure 5.4 -Use the information in Figure 5.4. If each task has a work time of one minute, what is the theoretical minimum cycle time?

The traditional method of determining contribution margin does not consider ________ costs.

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. Which work center is of greatest concern to the operations manager?

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 highest efficiency for a balanced line is:

Work should be released into the system when:

Balance delay could be described as the:

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, what is the optimal product mix (consider variable costs only-overhead is not included in this profit calculation)?