Quiz 23: Theory of Constraints
Statistics
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Q 2Q 2
Synchronous manufacturing refers to the entire production process working together in harmony to achieve the goals of the firm.
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Q 4Q 4
The operational measure of throughput is "the rate at which money is generated by the system through production of goods and services that might be sold."
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Q 5Q 5
From an operations standpoint, one of the goals of the firm under the theory of constraints is to increase throughput while simultaneously reducing inventory and reducing operating expense.
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Q 7Q 7
According to the theory of constraints, the term "productivity" is defined as all those actions that bring a company closer to its goals.
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Q 8Q 8
According to the theory of constraints, it is wrong for manufacturers to try to match capacity with demand by attempting to balance capacity across a sequence of processes.Unbalanced capacity is better.
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True False
Q 9Q 9
According to the theory of constraints, a bottleneck is any resource whose capacity is greater than the demand placed on it.
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True False
Q 10Q 10
According to the theory of constraints, a non-bottleneck is any resource where capacity is less than the demand placed on it.
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Q 12Q 12
According to the theory of constraints, a capacity-constrained resource (CCR) is one whose utilization is close to capacity and could be a bottleneck if it is not scheduled carefully.
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Q 13Q 13
According to the theory of constraints, throughput is the rate at which product is passed through the manufacturing system.
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Q 14Q 14
According to the theory of constraints, throughput is the rate at which money is generated by the system through sales.
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Q 16Q 16
A way to find a bottleneck is to use one's knowledge of a particular plant, look at the system in operation, and talk with supervisors and workers.
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Q 18Q 18
An MRP system can allow for product rejects by building a larger batch than is demanded, but a JIT system cannot tolerate poor quality.
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Q 19Q 19
A synchronous manufacturing system does not have excess capacity throughout the system, except for the bottleneck.
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Q 24Q 24
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.
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Q 25Q 25
Larger transfer batches give shorter lead times and lower inventories, and there is more material handling than smaller transfer batches.
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Q 27Q 27
The "dollar days" inventory measurement may be used to focus management's attention on where inventory is located.
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Q 28Q 28
The "dollar days" inventory measurement results from a complex algorithm used to compute individual units of inventory and their respective ordering and holding costs.
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Q 29Q 29
The "dollar days" inventory measurement can be used in purchasing to discourage large work-in-process and producing earlier than is needed.
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Q 31Q 31
JIT requires work-in-process when used with kanban so there is inventory to pull.When compared to synchronous manufacturing, this is viewed as a negative aspect of JIT.
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True False
Q 32Q 32
JIT requires a stable production level.When compared to synchronous manufacturing, this is viewed as a negative aspect of JIT.
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True False
Q 33Q 33
Departments within a firm often are at odds with each other because reward systems are often not synchronized with the basic goal of the firm: to make money.
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True False
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Q 35Q 35
Looking at the loads that are placed on each resource by the products that are scheduled through them is called process flow profiling.
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Q 36Q 36
In a process sequence where a product flows from process A to process B, process B is called the contingent process.
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Q 37Q 37
In a process sequence where a product flows from process A to process B, process B is called the dependent process.
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Q 38Q 38
In a process sequence where a product flows from process A to process B, process A is called the mother process.
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Q 39Q 39
Because of statistical fluctuation (processing times vary around an average processing time), dependent sequences can operate without any inventory between workstations.
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Q 40Q 40
The effects of statistical variations in processing times in a dependent sequence will eventually cancel themselves out due to the law of averages.
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Q 42Q 42
Which of the following is one of Dr.Eli Goldratt's rules of production scheduling for optimized production technology?
A)Utilization and activation of a resource are not the same.
B)Do not allow bottlenecks to govern the flow of the line.
C)An hour lost at a bottleneck saves an hour for the entire system.
D)Balance the capacities, not the flows.
E)The level of utilization of a bottleneck resource is not determined by its own potential but by some other constraint in the system.
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Multiple Choice
Q 43Q 43
Which of the following is one of Dr.Eli Goldratt's rules of production scheduling for optimized production technology?
A)If you lose an hour at a bottleneck, it is better than making scrap.
B)Do not balance capacity, balance the flow.
C)Do not allow bottlenecks to govern the flow of the line.
D)An hour saved at a bottleneck operation is a mirage.
E)The amount in a process batch should be fixed when the batch is begun and not changed over time or along its route.
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Multiple Choice
Q 44Q 44
Which of the following is a "focusing step" of Dr.Eli Goldratt's theory of constraints?
A)Reduce system constraints.
B)Reinforce system constraints.
C)Support system constraints.
D)If you have no system constraints, make some.
E)Identify system constraints.
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Multiple Choice
Q 45Q 45
According to the theory of constraints, which of the following is a financial measurement that can be used to measure the firm's ability to make money?
A)Net profit
B)Throughput
C)Inventory
D)Sales
E)Retained earnings
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Multiple Choice
Q 46Q 46
According to the theory of constraints, which of the following is a financial measurement that can be used to measure the firm's ability to make money?
A)Operating expenses
B)Cash flow
C)Inventory
D)Sales
E)Dividends
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Multiple Choice
Q 47Q 47
According to the theory of constraints, which of the following is an operational measurement that can be used to measure the firm's ability to make money?
A)Net profit
B)Throughput
C)Return on investment
D)Sales
E)Direct labor hours
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Multiple Choice
Q 48Q 48
According to the theory of constraints, which of the following is an operational measurement that can be used to measure the firm's ability to make money?
A)Inventory
B)Sales
C)Operating revenue
D)Unit cost
E)Overhead per unit
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Multiple Choice
Q 49Q 49
According to the theory of constraints, which of the following can be a CCR?
A)Factory layout
B)Product design
C)An employee
D)A customer
E)Sales literature
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Multiple Choice
Q 50Q 50
According to the theory of constraints, which of the following is a kind of time that makes up the cycle time in production?
A)Quality time
B)Break time
C)Research time
D)Just-in-time
E)Idle time
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Multiple Choice
Q 51Q 51
According to the theory of constraints, which of the following is a kind of time that makes up the cycle time in production?
A)Process time
B)Starting time
C)Quitting time
D)Information time
E)Finish time
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Multiple Choice
Q 52Q 52
Which of the following is an approach to dealing with a bottleneck?
A)Keep a buffer inventory in front of it to ensure that it always has something to work on.
B)Use Johnson's sequencing rules on bottleneck operations.
C)Don't worry about the bottleneck; it will take care of itself.
D)Move things to a faster bottleneck.
E)Pay an incentive bonus to workers on the bottleneck operation.
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Multiple Choice
Q 53Q 53
Which of the following is not an important concept in TOC?
A)CCR
B)Rope
C)Drum
D)Buffer
E)File
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Multiple Choice
Q 54Q 54
A useful measure of inventory performance is called "dollar days." In which of the following areas are dollar days measurements not useful?
A)Marketing
B)Research and development
C)Manufacturing
D)Project management
E)Purchasing
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Multiple Choice
Q 55Q 55
Which of the following is a negative aspect of JIT compared to synchronous manufacturing?
A)JIT cannot deal with outside vendors.
B)JIT needs broadly fluctuating production levels.
C)JIT does not allow very much flexibility in the products produced.
D)JIT requires a great deal of workforce computational skills.
E)JIT does not deal well with bottlenecks.
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Multiple Choice