Ppc Importance

|Chapter | |
|7 | |
| | |
| |Constraint Management |

TRUE/FALSE

1. Capacity is the maximum rate of output of a process. Answer: True Reference: Introduction

Difficulty: Easy

Keywords: capacity, maximum, output

2. Capacity can be expressed by output or input measures. Answer: True Reference: The Theory of Constraints Difficulty: Moderate Keywords: capacity, input, output

3. Input measures of capacity are inherently more accurate than output measures of capacity. Answer: False Reference: The Theory of Constraints Difficulty: Moderate Keywords: input, output, measure, capacity

4. Utilization is the degree to which equipment, space, or labor is currently being used. Answer: True Reference: The Theory of Constraints Difficulty: Easy Keywords: utilization, degree, used

5. Operating processes close to their capacity can result in low customer satisfaction and even losing money despite high sales levels. Answer: True Reference: The Theory of Constraints Difficulty: Moderate Keywords: capacity, satisfaction

6. A bottleneck is an operation that has the lowest effective capacity of any operation in the process. Answer: True Reference: Introduction Difficulty: Moderate Keywords: bottleneck, effective, capacity

7. The Theory of Constraints method is also referred to as the drum-beater-rope method. Answer: