Exam 20: Constraint Management

OPT stands for optimal purchasing technique.

Which of the following is not an important concept in TOC?

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

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

What is a word indicating a resource whose capacity is less than the demand placed on it?

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

Name the five kinds of time that make up production cycle time according to Dr.Eli Goldratt's theory of constraints.

Describe how cost accounting is sometimes antithetical to TOC?

You have run a capacity resource profile on your shop.Products have been routed sequentially through resources A,B,C &C.A rope (communication)should be directed back to the start of the process,resource A to prevent inventory from building up.Depending upon the situation,a second rope can extend from the finished goods inventory location (another buffer)to resource C as described in the text.C.A small buffer inventory should be held between resource B and resource D.The capacity resource profile tells you that recourse A is scheduled at 95 percent of capacity,recourse B at 80% of capacity,recourse C at 130% of capacity and recourse D at 100% of capacity.Assuming that the data we used to calculate the capacity resource profile was reasonably accurate,how would you employ the "drum,buffer,rope" thinking? This concept is discussed in the text on pages 690-693.The drum or control of the process is at the bottleneck,resource

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

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

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

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

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

According to the theory of constraints a bottleneck is any resource whose capacity is greater than the demand placed on it.

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

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

Rather than try to adjust the master production schedule to change resource loads,it is more practical to control the flow at each bottleneck or CCR to bring capacities in line.

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

The synchronous manufacturing approach uses backward scheduling.