Exam 23: Theory of Constraints

According to the theory of constraints, capacity is the time available for production.

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

The "dollar days" inventory measurement may be used to focus management's attention on where inventory is located.

What are the three financial measures of the firm's ability to make money? (1) ______________________________.(2) ______________________________.(3) ______________________________.

Because of statistical fluctuation (processing times vary around an average processing time), dependent sequences can operate without any inventory between workstations.

Where in a dependent-events sequence should an in-process quality inspection be placed? Why there?

Dr.Eli Goldratt feels that the goal of a firm is to make useful products efficiently.

According to Mr.Goldratt, what is the goal of the firm? ___________________________________.

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

In discussing batch size on an assembly line, the text makes the point that "one" and "infinity" are equally correct answers.How can this be?

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

You have run a capacity resource profile on your shop.Products have been routed sequentially through resources A, B, C, and C.A rope (communication) should be directed back to the start of the process, resource A, to prevent inventory from building up.Depending on the situation, a second rope can extend from the finished goods inventory location (another buffer) to resource C as described in the text.An excellent response to this question will include a diagram similar to Exhibit 23.9 and/or Exhibit 23.11. C.A small buffer inventory should be held between resource B and resource D.The capacity resource profile tells you that resource A is scheduled at 95 percent of capacity, resource B at 80 percent of capacity, resource C at 130 percent of capacity, and resource D at 100 percent of capacity.Assuming that the data we used to calculate the capacity resource profile are accurate, how would you employ the "drum, buffer, rope" thinking? This concept is discussed in the text.The drum or control of the process is at the bottleneck, resource

What is the rate at which money is generated by the system through sales called? _________________________________________.

According to the theory of constraints, which of the following is a kind of time that makes up the cycle time in production?

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

OPT stands for optimal purchasing technique.

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

How many rules make up Goldratt's "rules of production scheduling?" ___________________________________.

In Goldratt's approach to project management, what is the longest set of sequential tasks called? _____________________________________.

Synchronous manufacturing refers to the entire production process working together in harmony to achieve the goals of the firm.