Exam 7: Constraint Management

Table 7.7 A company makes four products that have the following characteristics: Product A sells for $75 but needs $20 of materials and $20 of labor to produce;Product B sells for $90 but needs $45 of materials and $20 of labor to produce;Product C sells for $110 but needs $50 of materials and $30 of labor to produce;Product D sells for $135 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 is 50 As,60 Bs,70 Cs,and 80 Ds 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 7.7.Using the bottleneck method,what is the optimal product mix?

Table 7.7 A company makes four products that have the following characteristics: Product A sells for $75 but needs $20 of materials and $20 of labor to produce;Product B sells for $90 but needs $45 of materials and $20 of labor to produce;Product C sells for $110 but needs $50 of materials and $30 of labor to produce;Product D sells for $135 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 is 50 As,60 Bs,70 Cs,and 80 Ds 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 7.7.Using the traditional method,in what sequence should products be scheduled for production?

Figure 7.1 -Use the information in Figure 7.1.If each task has a work time of one minute,what is the theoretical minimum cycle time?

Table 7.15 The Terminal Company is attempting to balance its assembly line of high-voltage electrical connectors.The desired output for the line is 50 connectors per hour,and the information on the work elements for this assembly line is as follows. -Use the information from Table 7.15 to balance this line.What is the most efficient solution?

Table 7.12 A company desires to set up a line to produce 60 units per hour.The work elements and their precedence relationships are as follows. -Use the information in Table 7.12.What is the highest efficiency line balance possible?

The movement of product from one station to the next as soon as the cycle time has elapsed is called ________.

Table 7.12 A company desires to set up a line to produce 60 units per hour.The work elements and their precedence relationships are as follows. -Use the information in Table 7.12.What is the theoretical minimum number of stations?

Table 7.14 The production of a particular product consists of seven work elements.The desired output rate is 60 units per hour.The work element and their precedence relationships are given. -Use the information in Table 7.14.What is the most efficient line balance you can achieve?

A line balance that is 100% efficient must:

The process batch at the constraint in a drum-buffer-rope system should be:

How can Theory of Constraints principles be reconciled with line balancing?

Table 7.7 A company makes four products that have the following characteristics: Product A sells for $75 but needs $20 of materials and $20 of labor to produce;Product B sells for $90 but needs $45 of materials and $20 of labor to produce;Product C sells for $110 but needs $50 of materials and $30 of labor to produce;Product D sells for $135 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 is 50 As,60 Bs,70 Cs,and 80 Ds 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 7.7.Using the bottleneck method,what is the profit if the company manufactures the optimal product mix (consider variable costs only-overhead is not included in this profit calculation)?

Table 7.4 The figure above shows the process for customers arriving at Hobbies Unlimited for several advertised crafts demonstrations.After signing in,customers are routed to different locations in the store for the two different programs provided.The numbers in parentheses are the time in minutes for each step of the process. -Use the information in Table 7.4.How many customers can be processed through the A-B-E-F-G routing during a 4-hour evening session?

A business school with plenty of classroom space that hires adjunct faculty for a semester to meet unusually high student demand for courses is an example of elevating a bottleneck.

Variability of a firm's workload may create ________.

Table 7.7 A company makes four products that have the following characteristics: Product A sells for $75 but needs $20 of materials and $20 of labor to produce;Product B sells for $90 but needs $45 of materials and $20 of labor to produce;Product C sells for $110 but needs $50 of materials and $30 of labor to produce;Product D sells for $135 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 is 50 As,60 Bs,70 Cs,and 80 Ds 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 7.7.Which work center is the bottleneck operation?

There are three consecutive steps in a customer service process.The first two steps are each capable of serving 25 customers per hour while the third step can process only 20 customers per hour.Which of the following statements regarding this system is true?

What are two ways a process manager can identify a bottleneck in a service or manufacturing process? If you were in a manufacturing firm,what physical cues would signal a bottleneck?

Table 7.5 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 7.5.Which work center is of greatest concern to the operations manager?

What is the definition of "theoretical maximum efficiency"?