Exam 5: Constraint Management

Table 5.2 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 5.2.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)?

The process with the least capacity is called a bottleneck if its output is less than market demand.

Instead of dividing the total standard time required to assemble each unit by nc to determine the efficiency of a line balance,you could divide by:

Table 5.4 The Superior Management Company assembles muffalettas in The Big Easy.The steps to making a world class sandwich and the time required (in seconds)for each step are shown in the table. -Customers demand muffalettas at the rate of 20 sandwiches per hour.Use the information in Table 5.4 to determine the cycle time that will meet this level of demand.

Balance the assembly line for the tasks contained in the table.The desired output is three units per hour.Available production time per day is eight hours.What is the theoretical minimum number of stations? What is the efficiency for the balanced assembly line?

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

Table 5.3 King Supply makes four different types of plumbing fixtures: W,X,Y and Z.The contribution margins for these products are: $70 for Product W,$60 for Product X,$90 for Product Y and $100 for Product Z.Fixed overhead is estimated at $5,500 per week.The manufacture of each fixture requires four machines,Machines #1,2,3 and 4.Each of the machines is available for 40 hours a week and there is no setup time required when shifting from the production of one product to any other.The processing requirements to make one unit of each product are shown in the table.Weekly product demand for the next planning period has been forecasted as follows: 70 Ws,60 Xs,50 Ys and 30 Zs. 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 5.3.Using the traditional method,what is the optimal product mix?

Use the process flow diagram to determine which of these events has the greatest net benefit.

________ is the maximum time allowed for work on a unit at each station.

The third step in Theory of Constraints application,"subordinate all other decisions to Step 2," means that the analyst should:

A mixed-model line produces several items belonging to the same family.

Table 5.2 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 5.2.Using the traditional 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)?

Which one of the following statements about line balancing is BEST?

Table 5.2 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 5.2.Which work center is the bottleneck operation?

Consider consecutive processes A-B-C,where process A has a capacity of 20 units per hour,process B has a capacity of 25 units per hour,and process C has a capacity of 30 units per hour.Where would an operations manager want any inventory?

The traditional method of determining contribution margin does not consider ________ costs.

A bottleneck is an operation that has the lowest effective capacity of any operation in the process.

Table 5.2 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 5.2.Using the bottleneck method,in what sequence should products be scheduled for production?

Figure 5.4 -Use the information in Figure 5.4.If each task has a work time of one minute,what is the theoretical minimum cycle time?

Figure 5.3 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 Figure 5.3.What is the throughput time for the A-B-E-F-G routing?