Exam 23: Theory of Constraints

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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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According to the theory of constraints, a non-bottleneck is any resource where capacity is less than the demand placed on it.

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According to the theory of constraints, throughput is the rate at which money is generated by the system through sales.

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Buffer inventory in front of a bottleneck is called a time buffer.

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According to the theory of constraints, which of the following can be a CCR?

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Transfer batch is another term for process batch.

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

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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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According to the theory of constraints, the term "productivity" is defined as all those actions that bring a company closer to its goals.

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

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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 a "focusing step" of Dr.Eli Goldratt's theory of constraints?

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Statistical fluctuation refers to the normal variation about a mean or average.

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The "dollar days" inventory measurement can be used in purchasing to discourage large work-in-process and producing earlier than is needed.

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

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What are the three measurements in TOC that give guidance to the firm's operations? (1) ______________________________.(2) ______________________________.(3) ______________________________.

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Describe how cost accounting is sometimes antithetical to TOC?

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What is the term that refers to the normal variation about a mean or average?

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

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An MRP system can allow for product rejects by building a larger batch than is demanded, but a JIT system cannot tolerate poor quality.

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