Operations Management Quiz #6

Operations Management Quiz #6

Question 1 (1 point)

Operating processes close to their capacity can result in low customer satisfaction and even losing money despite high sales levels.

Question 1 options:

	True
	False

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Question 2 (1 point)

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?

Question 2 options:

	The entire system is capable of processing 25 customers per hour.
	There are floating bottlenecks in the system.
	If the first two steps are run at full capacity, then the third step has a waiting line.
	The first and second steps are bottlenecks for the system.

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Question 3 (1 point)

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

Question 3 options:

	wait for authorization before proceeding with any system-wide changes.
	schedule non-bottleneck processes to support the bottleneck schedule.
	seek to increase capacity of only the bottleneck resources.
	should seek to increase capacity of both the bottleneck and non-bottleneck resources.

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Question 4 (1 point)

Practical application of the Theory of Constraints involves the implementation of all of the following steps EXCEPT:

Question 4 options:

	Identify the system bottleneck(s).
	Exploit the bottleneck(s).
	Reduce the capacity at the bottleneck(s).
	Elevate the bottleneck(s).

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Question 5 (1 point)

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

Question 5 options:

	True
	False

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Question 6 (1 point)

A competent operations manager should first eliminate all of the bottlenecks from the process.

Question 6 options:

	True
	False

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Question 7 (1 point)

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

Question 7 options:

	reducing the flow time at Station A from 10 to 8 minutes
	increasing the capacity at Station B to 12 units per hour
	increasing the capacity at Station C to 10 units per hour
	reducing the flow time at Station D from 12 to 10 minutes

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Question 8 (1 point)

The final step in applying the Theory of Constraints is to repeat the first four steps.

Question 8 options:

	True
	False

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Question 9 (1 point)

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

Question 9 options:

	reducing the flow time at Station A from 8 to 7 minutes
	increasing the capacity at Station B to 12 units per hour
	increasing the capacity at Station C to 9 units per hour
	reducing the flow time at Station D from 6 to 5 minutes

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Question 10 (1 point)

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.

Question 10 options:

	True
	False

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Question 11 (1 point)

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?

Question 11 options:

	in front of process A
	in front of process B
	in front of process C
	Inventory should not exist anywhere.

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Question 12 (1 point)

Short term capacity planning should be driven by identification and management of bottlenecks.

Question 12 options:

	True
	False

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Question 13 (1 point)

Work should be released into the system when:

Question 13 options:

	a customer order is received.
	the first step in the process is idle.
	a customer order is completed.
	the bottlenecks need work.

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Question 14 (1 point)

The fourth step in Theory of Constraints application, “elevate the bottleneck(s),” means that the analyst should:

Question 14 options:

	create a schedule that maximizes the throughput of the bottlenecks.
	repeat the analysis process to look for other bottlenecks.
	consider increasing capacity of the bottleneck.
	schedule non-bottleneck resources to support the bottleneck.

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Question 15 (1 point)

Lanny discovers that the bottleneck is the riveting machine so he schedules all production around when that machine is available. This is an example of elevating the constraint in the five-step constraint management process.

Question 15 options:

	True
	False

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Question 16 (1 point)

According to the Theory of Constraints, the four operational measures include inventory, throughput, delivery lead times and utilization.

Question 16 options:

	True
	False

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Question 17 (1 point)

In a shop managed according to TOC principles, inventory is needed only in front of bottlenecks in order to prevent them from sitting idle.

Question 17 options:

	True
	False

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Question 18 (1 point)

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

Question 18 options:

	True
	False

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Question 19 (1 point)

The second step in Theory of Constraints application, “exploit the bottleneck(s),” means that the analyst should:

Question 19 options:

	create a schedule that maximizes the throughput of the bottlenecks.
	repeat the analysis process to look for other bottlenecks.
	consider increasing capacity of the bottleneck.
	schedule non-bottleneck resources to support the bottleneck.

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Question 20 (1 point)

A bottleneck process has the lowest capacity and the longest total time from the start to the finish.

Question 20 options:

	True
	False

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Question 21 (2 points)

Table 7.3 The figure above shows the process for customers arriving at Pierre’s Spa and Salon. After signing in, customers are routed to different locations in the Spa for the two different services provided. The numbers in parentheses are the time in minutes for each step of the process. Use the information in Table 7.3. What is the process bottleneck?

Question 21 options:

	H
	B
	C
	D

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Question 22 (2 points)

Table 7.2 The figure above shows the process for paying tuition at a major university. Students are provided their bill for the next term for review, then routed to different tables for questions to be answered before finally paying their tuition at E. The numbers in parentheses are the time in minutes for each step of the process. Use the information in Table 7.2. Where would you expect student wait times to occur?

Question 22 options:

	D only
	B, C and D
	A only
	E only

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Question 23 (2 points)

Table 7.1 The figure above shows the call routing process for a customer service call center. Incoming calls are routed, depending on the complexity of the caller’s request. Simple request are routed to work center B, while the more complex calls are routed to work center C (which also takes simple calls when not busy). The numbers in parentheses are the time in minutes for each step of the process. Use the information in Table 7.1. What is the process bottleneck?

Question 23 options:

	A
	B and C together
	D
	E

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Question 24 (2 points)

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?

Question 24 options:

	37 A, 60 B, 70 C, 80 D
	50 A, 51 B, 70 C, 80 D
	50 A, 60 B, 62 C, 80 D
	50 A, 60 B, 70 C, 60 D

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Question 25 (2 points)

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. Using the bottleneck method, what is the optimal product mix (consider variable costs only-overhead is not included in this profit calculation)?

Question 25 options:

	71 A, 80B, 80C, 80 D
	80A, 72B, 80C, 80D
	80A, 80B, 60C, 80D
	80A, 80B, 80C, 70D

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