Ppc Importance

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|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: False
Reference: The Theory of Constraints
Difficulty: Easy
Keywords: TOC, theory, constraints, drum, buffer, rope

8. Any work center or machine that has less capacity than other work centers in the same plant is referred to as a bottleneck. Answer: True
Reference: The Theory of Constraints
Difficulty: Moderate
Keywords: bottleneck, capacity

9. 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. Answer: True

Reference: The Theory of Constraints
Difficulty: Moderate
Keywords: elevate, bottleneck, TOC

10. A bottleneck process has the lowest capacity and the longest total time from the start to the finish. Answer: True
Reference: Identification and Management of Bottlenecks Difficulty: Moderate
Keywords: bottleneck, process, capacity

11. Takt time is the time required to change or readjust a process or operation from making one service or product to making another. Answer: False
Reference: Identification and Management of Bottlenecks Difficulty: Moderate
Keywords: setup, process, takt

12. A competent operations manager should first eliminate all of the bottlenecks from the process. Answer: False
Reference: Identification and Management of Bottlenecks Difficulty: Moderate
Keywords: bottleneck, process

13. Short term capacity planning should be driven by identification and management of bottlenecks Answer: True
Reference: Capacity Planning Over Longer Time Horizons Difficulty: Moderate
Keywords: capacity, bottleneck

14. One reason economies of scale drive down cost is the spreading of fixed costs. Answer: True
Reference: Capacity Planning Over Longer Time Horizons Difficulty: Moderate
Keywords: economies, scale, fixed, cost...
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