OPERATION MANAGEMENT EXAM QUESTIONS AND ANSWERS #8
Which of the following statements is true regarding utilization and implied utilization? -
correct answer Implied Utilization can exceed 1.
A process is ______ constrained if the implied utilization of any resource is above
100%. - correct answer supply
A process is _____ constrained if the implied utilization of any resource is below 100%.
- correct answer demand
Which of the following curves is a correct portrayal of the relationship between variety
and efficiency? - correct answer right to left, downward slope
In a demand-constrained process, the ideal batch size is one that _______ inventory, in
the system and results in a process capacity that matches the _______. - correct
answer minimizes, demand rate
The goal of "lean" is to ______ from the system. - correct answer eliminate waste
An example of wasted flow time. - correct answer long waiting time at checkout
A term that is interchangeable with "lean". - correct answer Toyota Production System
Example of value added work. - correct answer taking orders from customers
What is a false statement about sources of production waste? - correct answer Working
overtime is a waste because it means more labor cost is spent on a flow unit than
necessary.
True statements about source of production waste. - correct answer - Rework is a waste
because it means resources are spent to correct mistakes instead of adding value.
- Waiting is a waste because it means resources are idle and are not fully utilized.
- Over-processing is a waste because it means more time is spent on a flow unit than
necessary.
Sources of wasting time of a flow unit. - correct answer storage time, transportation
times, setup times. NOT processing times
What is a true statement about wasting time of a flow unit? - correct answer By reducing
the waiting time of a flow unit, the time it takes to turn inputs into output is decreased.
What can be used to determine the extent to which an operation is lean? - correct
answer inventory turns, value-added percentage, overall equipment effectiveness. NOT
Labor Content
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