MGSC Exam 2 Questions And Answers 100% Verified 2024/2025

MGSC Exam 2 Questions And Answers 100% Verified 2024/2025 The theory of constraints methods increases the firm's profits more effectively by focusing on what? A. eliminating defects B. cutting system costs C. eliminating processing variation D. making materials flow rapidly through the entire system - answermaking materials flow rapidly through the entire system The theory of constraints defines inventory as A. all the money invested in a system in purchasing things that it intends to sell. B. all the money invested in raw material. C. the value of all material that has been started in a process but not yet finished. D. the current value of material the company owns. - answerA. all the money invested in a system in purchasing things that it intends to sell. Of the seven key principles of the theory of constraints, which is the first principal? A. maximizing the output and efficiency of every resource is required to maximize the throughput of the entire system B. the focus should be on balancing flow, not on balancing capacity C. every capital investment must be viewed from the perspective of its global impact product margin D. the focus should be on balancing capacity, not on balancing flow - answerB. the focus should be on balancing flow, not on balancing capacity An item that has been built to stock has yet to be sold. Which TOC operational measure is used to describe it in its current state? A. Utilization B. Throughput C. Operational expense D. Inventory - answerd. inventory If during week 1 the mix of work makes operation 1 a bottleneck, and the next week it may makes operation 3 the bottleneck, the variability in workload has created a A. marginal bottleneck. B. floating bottleneck. C. no bottleneck. D. activated bottleneck. - answerB. floating bottleneck. A workstation in a process is a bottleneck if A. it processes the smallest total workload. B. it has the smallest average capacity. C. it has the lowest average utilization. D. it has the highest total time per unit processed. - answerd. it has the highest total time per unit processed. The theory of constraints (TOC) - answersystematic management approach that focuses on actively managing those constraints that impede a firm's progress toward its goal of maximizing profits and effectively using its resources. in TOC All the money invested in a system in purchasing things that it intends to sell - answerinventory in toc Rate at which a system generates money through sales - answerThroughput (T) All the money a system spends to turn inventory into throughput - answerOperating Expense (OE) The degree to which equipment, space, or workforce is currently being used; it is measured as the ratio of average output rate to maximum capacity, expressed as a percentage - answerUtilization (U) It is always best to manage the system so that utilization at the bottleneck resource is ------- to maximize throughput. - answermaximized The focus should be on balancing ----, not on balancing capacity - answerflow An hour lost at a ------- or a constrained resource is an hour lost for the whole system. In contrast, an hour saved at a non-bottleneck resource is a mirage, because it does not make the whole system more productive. - answerbottlenec