ch 7 supplement

Question 1

what does capacity have to do with?

Answer 1

activities and resources

Question 2

capacity

Answer 2

the rate at which work (output) is withdrawn (produced) from the system (it is variable)

Question 3

capacity (textbook definition)

Answer 3

the “throughput, or the number of units a facility can hold, receive, store or produce in a period of time

Question 4

load

Answer 4

the volume of work (work in process) in the system (it is variable)

Question 5

basic questions in capacity handling?

Answer 5

1. what kind of capacity is needed?
2. how much is needed?
3. when is it needed?

Question 6

capacity management

Answer 6

“function of establishing, measuring, monitoring and adjusting limits or levels of capacity in order to execute all manufacturing schedule…”

Question 7

capacity management for medium to long term: purpose and techniques?

Answer 7

Purpose: to meet long term growth (or decline) in demand

techniques:

1. additional equipment/machines (or selling equipment or machines 2. additional facilities (or closing facilities)
2. improving/modifying capability

Question 8

capacity management for short term; purpose and techniques?

Answer 8

purpose: to cope with short term fluctuations in demand (seasonal, randomness, etc.)

techniques:
1. overtime
2. extra shift
3. additional labor
4. temporary shutdown/layoff
5. subcontract
6. backorder
7 accumulate inventory

Question 9

capacity measurement and evaluation: what to measure?

Answer 9

1. design capacity
2. effective capacity
3. actual output

Question 10

capacity measurement and evaluation: how to evaluate?

Answer 10

1. utilization

2. efficiency

Question 11

design capacity?

Answer 11

• theoretical, maximum output

- achievable only under ideal (perfect) condition

Question 12

effective capacity?

Answer 12

maximum output achievable under practical, realistic conditions

Question 13

will design capacity usually be more or less than effective capacity?

Answer 13

likely to be more!

Question 14

what is the key factor in effective capacity?

Answer 14

unavoidable disruptions (problems) or normal/usual disruptions

Question 15

possible causes of effective capacity (practical realistic conditions)

Answer 15

1. schedule maintenance
2. production planning
3. product changeover
4. tool change
5. lack of demand
6. age of machine, equipment
7. types of inputs

Question 16

actual output?

Answer 16

amount of output actually produced

likely to be less than effective capacity

Question 17

Key factors that affect actually output?

Answer 17

avoidable disruptions (problems) or abnormal/unusual disruptions

Question 18

possible causes in actual output?

Answer 18

1. machine breakdown
2. absenteeism
3. poor planning
4. input shortage
5. quality problems

Question 19

efficiency?

Answer 19

measures how closely a predetermined standard is acheived

=actual output/effective output

Question 20

utilization?

Answer 20

measure how intensively a resource is being used

=actual output/design output

Question 21

what does theory of constraints have to do with?

Answer 21

bottleneck operations

Question 22

bottleneck?

Answer 22

• any resource whose capacity is less than the demand placed upon it
• it is the constraint that limits the throughput of the system
• can be a machine, person, tool, work center, department

Question 23

non bottleneck?

Answer 23

• any resource whose capacity is greater than the demand placed upon it.
• contains idle capacity

Question 24

capacity constrained resource?

Answer 24

-resource whose capacity is close to its capacity and could become a bottleneck if not scheduled properly

Question 25

what is goldratt’s goal of a firm?

Answer 25

to make money

Question 26

performance measurement: operational

throughput

Answer 26

the rate at which money is generated but the systme through sales

Question 27

performance measurement: operational

inventory

Answer 27

all the money that the system has invested in purchasing things it intends to sell

Question 28

performance measurement: operational

operating expenses

Answer 28

all the money that the system spends to turn inventory into throughput

Question 29

productivity?

Answer 29

• all actions that bring a company closer to its goals

- traditional concept of productivity does not guarantee profitability

Question 30

what issues must be addresses to improve productivity?

Answer 30

1. has throughput increased?
2. has inventor decreased?
3. have operational expenses decreased?

Question 31

Goldratt’s theory of constraints?

Answer 31

1. Identify the system constraint
2. Exploit the system constraint
3. Subordinate everything else to the system constraint
4. Elevate the system constraint
5. Do not balance capacity, balance the flow
6. Utilization of a non-bottleneck resource is not determined by its potential‬ but by another constraint in the system.
7. The capacity of a system depends on the capacity of the bottleneck.
8. Increasing the capacity of a non-bottleneck facility does not improve the system throughput.

Question 32

processing time at a station?

Answer 32

time needed to perform all the tasks at a station

Question 33

bottleneck time?

Answer 33

time needed at the slowest station. that is, the longest station process time.

• also it is the time between two successive units coming off the line, therefore, it determines the system capacity.

Question 34

throughput time

Answer 34

the minimum time needed to perform all the tasks at all the stations (with zero wait time)

Question 35

Bottleneck in relation to the market demand?

Answer 35

a resource with the least capacity is called a bottleneck if its capacity is less than the market demand

Question 36

Capacity constrained resource in relation to market demand?

Answer 36

a resource with the least capacity is called a ccr if its capacity is greater than the market demand