Question 1

The Theory of Constraints is focused on eliminating all bottlenecks in a process.

Accepted Answer

A) True 
 B)False  False

Question 2

C&M Machining is developing plans for a dedicated production line and needs to determine how many drill presses will be needed. Engineering estimates are that one drill press will be able to process 120 parts per hour. Daily demand is 2,400 parts. C&M operates one 8-hour shift per day. How many drill presses are needed to meet the capacity requirements?

Accepted Answer

A)  2 drills 
B)  3 drills 
C)  4 drills 
D)  5 drills 
A)  2 drills 
B)  3 drills 
C)  4 drills 
D)  5 drills B

Question 3

A pharmacy lab is used for only two high volume prescriptions, A and B. The time per setup (in minutes), processing time (in seconds), and order size (in units) is given below.
Using the information, determine the total capacity required for this lab in minutes.
$\begin{array}{|l|l|l|l|}
\hline\text { Prescription } & \begin{array}{c}
\text { SETUP TIME } \
\text { (MINUTES) }
\end{array} & \begin{array}{c}
\text { PROCESSING } \
\text { TIME } \
\text { (SECONDS) }
\end{array} & \begin{array}{c}
\text { ORDER } \
\text { SIZE } \
\text { (UNITS) }
\end{array} \
\hline \mathrm{A} & 80 & 84 & 700 \
\hline \mathrm{B} & 50 & 54 & 500 \
\hline
\end{array}$

Accepted Answer

A)  Less than 2000 minutes 
B)  Equal to or greater than 2000 but less than 2200 minutes 
C)  Equal to or greater than 2200 but less than 2400 minutes 
D)  Greater than 2400 minutes 
A)  Less than 2000 minutes 
B)  Equal to or greater than 2000 but less than 2200 minutes 
C)  Equal to or greater than 2200 but less than 2400 minutes 
D)  Greater than 2400 minutes A

Question 4

Define a revenue management system (RMS) and explain how it works. Give several examples of assets that can be managed using RMS.

Accepted Answer

A revenue management system (RMS) consis

Question 5

Capacity lag strategy results in constant capacity shortages.

Accepted Answer

A) True 
 B)False

Question 6

A medical equipment testing and calibration service is depicted in Figure 1. The customer usually brings the equipment to the service center. The service process requires service technicians to perform three process steps #1 to #3. Each technician is cross-trained so they can perform any of the three steps. The inspector does Step # 4 alone. After step #4, two parallel work activities are performed. That is, a shipping clerk packs the work (step 7) while a billing clerk prepares the invoice (step 5) simultaneously, and the customer is contacted by phone for pick-up (step 6). The average throughput is 3 equipment units per hour.   Figure 1 Flow chart of the medical equipment testing and calibration service process
The table below shows the work content of the process steps, activity times in minutes per unit, shared and non-shared work activities, and the type of resource required. There are 3 service technicians on duty: 1 inspector, 1 billing clerk, and 1 shipping clerk.
 $$\begin{array} { | c | c | c | } 
\hline \text { Activity } & \begin{array} { c } 
\text { Activity } \
\text { Time } \
\text { (minutes) }
\end{array} & \text { Activity Performed By } \
\hline \text { Start } & - - & \
\hline 1 & 8 & \text { Service technician } \
\hline 2 & 17 & \text { Service technician } \
\hline 3 & 25 & \text { Service technician } \
\hline 4 & 12 & \text { Inspector } \
\hline 5 & 3 & \text { Billing clerk } \
\hline 6 & 7 & \text { Billing clerk } \
\hline 7 & 25 & \text { Shipping clerk } \
\hline \text { End } & - - & \
\hline
\end{array}$$
-An order fulfillment process normally operates two shifts a day, six days per week. Under normal conditions, 380 orders can be processed per shift. The weekly capacity is _____.

Accepted Answer

A)  less than 1,000 orders per week 
B)  more than 1,000 orders but less than or equal to 2,000 order per week 
C)  more than 2,000 orders but less than or equal to 3,000 orders per week 
D)  more than 3,000 orders per week. 
A)  less than 1,000 orders per week 
B)  more than 1,000 orders but less than or equal to 2,000 order per week 
C)  more than 2,000 orders but less than or equal to 3,000 orders per week 
D)  more than 3,000 orders per week.

Question 7

According to the Theory of Constraints, _____ is the amount of money generated per time period through actual sales.

Accepted Answer

A)  throughput 
B)  nonbottleneck (NBN) work activity 
C)  nonphysical constraint 
D)  utilization 
A)  throughput 
B)  nonbottleneck (NBN) work activity 
C)  nonphysical constraint 
D)  utilization

Question 8

Perform a capacity analysis of the process given below and answer questions #16, #17, and #18 to help fix the process. The numbers in parenthesis (#) are the time in minutes to complete one unit of work. Demand on the process averages 27 units per hour and each unit must be worked on by all five stages. Administrative clerks do Stages A and B. The assistant manager does Stages D and E. The coding specialist does Stage C.
SHAPE \* MERGEFORMAT
    
-The total process (throughput) capacity in units per hour for the five stage process, A to D, assuming 3 administrative clerks, 2 coding specialist, and 4 assistant managers on duty is:

Accepted Answer

A)  less than 10 units per hour. 
B)  more than 10 units but less than or equal to 20 units. 
C)  more than 20 units but less than or equal to 30 units. 
D)  more than 30 units but less than or equal to 40 units. 
A)  less than 10 units per hour. 
B)  more than 10 units but less than or equal to 20 units. 
C)  more than 20 units but less than or equal to 30 units. 
D)  more than 30 units but less than or equal to 40 units.

Question 9

Average safety capacity (%) is computed as:

Accepted Answer

A)  Average resource utilization (%) − 100%. 
B)  100% − Average resource utilization (%). 
C)  [maximum safety capacity (%) + minimum safety capacity (%)]/2. 
D)  100% − maximum resource utilization (%). 
A)  Average resource utilization (%) − 100%. 
B)  100% − Average resource utilization (%). 
C)  [maximum safety capacity (%) + minimum safety capacity (%)]/2. 
D)  100% − maximum resource utilization (%).

Question 10

Perform a capacity analysis of the process given below and answer questions #16, #17, and #18 to help fix the process. The numbers in parenthesis (#) are the time in minutes to complete one unit of work. Demand on the process averages 27 units per hour and each unit must be worked on by all five stages. Administrative clerks do Stages A and B. The assistant manager does Stages D and E. The coding specialist does Stage C.
SHAPE \* MERGEFORMAT
    
-What is the current labor utilization of the coders, if two coding specialists are currently on duty?

Accepted Answer

A)  Less than 90 percent 
B)  More than 90% but less than or equal to 95% 
C)  More than 95% but less than or equal to 100% 
D)  More than 100% 
A)  Less than 90 percent 
B)  More than 90% but less than or equal to 95% 
C)  More than 95% but less than or equal to 100% 
D)  More than 100%

Question 11

Changing labor skill mix is a means to adjust short-term capacity.

Accepted Answer

A) True 
 B)False

Question 12

A work order includes all of the following EXCEPT:

Accepted Answer

A)  the quantity to be produced. 
B)  the processing requirements. 
C)  resources needed. 
D)  worker's health status. 
A)  the quantity to be produced. 
B)  the processing requirements. 
C)  resources needed. 
D)  worker's health status.

Question 13

Define the Theory of Constraints (TOC). How does TOC view throughput differently from the traditional OM perspective?

Accepted Answer

The Theory of Constraints (TOC) is a set

Question 14

The strategy of matching capacity additions with demand as closely as possible is often called a capacity straddle strategy.

Accepted Answer

A) True 
 B)False

Question 15

Revenue management system (RMS) consists of all of the following EXCEPT:

Accepted Answer

A)  forecasting demand. 
B)  allocating perishable assets. 
C)  deciding when to overbook and by how much. 
D)  adding peripheral goods. 
A)  forecasting demand. 
B)  allocating perishable assets. 
C)  deciding when to overbook and by how much. 
D)  adding peripheral goods.

Question 16

Safety capacity is most closely related to _____.

Accepted Answer

A)  bottlenecks 
B)  economies of scale 
C)  unanticipated events 
D)  focused factory 
A)  bottlenecks 
B)  economies of scale 
C)  unanticipated events 
D)  focused factory

Question 17

Define capacity including the two ways it can be viewed. Provide an example of each way.

Accepted Answer

Capacity is the capability of a manufact

Question 18

_____ is a strategy that waits until demand has increased to a point where additional capacity is necessary.

Accepted Answer

A)  Capacity lag 
B)  Capacity lead 
C)  Capacity reduction 
D)  Capacity match 
A)  Capacity lag 
B)  Capacity lead 
C)  Capacity reduction 
D)  Capacity match

Question 19

An organization that would typically use a revenue management system (RMS) is a:

Accepted Answer

A)  computer manufacturer. 
B)  fast-food restaurant. 
C)  car rental company. 
D)  package delivery service. 
A)  computer manufacturer. 
B)  fast-food restaurant. 
C)  car rental company. 
D)  package delivery service.

Question 20

Perform a capacity analysis of the process given below. The numbers in parenthesis (#) are the time in minutes to complete one unit of work. Demand on the process averages 20 units per hour and each unit must be worked on by all four stages. Administrative clerk(s) do Stage A work. The assistant manager(s) do Stages C and D work and are cross-trained to do both jobs. The coding specialist(s) do Stage B work.
SHAPE \* MERGEFORMAT
    
-The process (throughput) capacity in units per hour for the four stage process, A to D, assuming 2 administrative clerks, 3 coding specialists, and 3 assistant managers on duty is _____.

Accepted Answer

A)  less than 10 units per hour 
B)  more than 10 units but less than or equal to 20 units 
C)  more than 20 units but less than or equal to 30 units 
D)  more than 30 units but less than or equal to 40 units 
A)  less than 10 units per hour 
B)  more than 10 units but less than or equal to 20 units 
C)  more than 20 units but less than or equal to 30 units 
D)  more than 30 units but less than or equal to 40 units

The Theory of Constraints is focused on eliminating all bottlenecks in a process.

Define a revenue management system (RMS) and explain how it works. Give several examples of assets that can be managed using RMS.

Capacity lag strategy results in constant capacity shortages.

According to the Theory of Constraints, _____ is the amount of money generated per time period through actual sales.

Average safety capacity (%) is computed as:

Changing labor skill mix is a means to adjust short-term capacity.

A work order includes all of the following EXCEPT:

Define the Theory of Constraints (TOC). How does TOC view throughput differently from the traditional OM perspective?

The strategy of matching capacity additions with demand as closely as possible is often called a capacity straddle strategy.

Revenue management system (RMS) consists of all of the following EXCEPT:

Safety capacity is most closely related to _____.

Define capacity including the two ways it can be viewed. Provide an example of each way.

_____ is a strategy that waits until demand has increased to a point where additional capacity is necessary.

An organization that would typically use a revenue management system (RMS) is a:

Goods, Services, and Operations Management

Value Chains

Measuring Performance in Operations

Operations Strategy

Technology and Operations Management

Goods and Service Design

Process Selection, Design, and Analysis

Facility and Work Designs

Supply Chain Design

Forecasting and Demand Planning

Managing Inventories

Resource Management

Operations Scheduling and Sequencing

Quality Management

Appendix: Quality Management

Quality Control and Spc

Appendix: Queuing Analysis

Appendix: Modeling Using Linear Programming

Lean Operating Systems

Appendix: Simulation

Project Management

Appendix: Decision Analysis

Filters

Exam 10: Capacity Management

The Theory of Constraints is focused on eliminating all bottlenecks in a process.

Define a revenue management system (RMS) and explain how it works. Give several examples of assets that can be managed using RMS.

Capacity lag strategy results in constant capacity shortages.

According to the Theory of Constraints, _____ is the amount of money generated per time period through actual sales.

Average safety capacity (%) is computed as:

Changing labor skill mix is a means to adjust short-term capacity.

A work order includes all of the following EXCEPT:

Define the Theory of Constraints (TOC). How does TOC view throughput differently from the traditional OM perspective?

The strategy of matching capacity additions with demand as closely as possible is often called a capacity straddle strategy.

Revenue management system (RMS) consists of all of the following EXCEPT:

Safety capacity is most closely related to _____.

Define capacity including the two ways it can be viewed. Provide an example of each way.

_____ is a strategy that waits until demand has increased to a point where additional capacity is necessary.

An organization that would typically use a revenue management system (RMS) is a:

Goods, Services, and Operations Management

Value Chains

Measuring Performance in Operations

Operations Strategy

Technology and Operations Management

Goods and Service Design

Process Selection, Design, and Analysis

Facility and Work Designs

Supply Chain Design

Forecasting and Demand Planning

Managing Inventories

Resource Management

Operations Scheduling and Sequencing

Quality Management

Appendix: Quality Management

Quality Control and Spc

Appendix: Queuing Analysis

Appendix: Modeling Using Linear Programming

Lean Operating Systems

Appendix: Simulation

Project Management

Appendix: Decision Analysis

Filters