Chapter 7

Question 1

Any factor that limits the performance of a system and restricts its output

Answer 1

Constraint

Question 2

A capacity constraint resource whose available capacity limits the organizations ability to meet the product volume, product mix, or demand fluctuation required by the marketplace

Answer 2

Bottleneck

Question 3

A planning and control system that regulates the flow of work-in-process materials at the bottleneck or the capacity constrained resource in a productive system

Answer 3

Drum buffer rope

Question 4

Total elapsed time from the start to the finish of a job or a customer being processed at one or more workcenters

Answer 4

Throughput Time

Question 5

A systematic management approach that focuses on actively managing those constraints that impede a firm’s progress toward its goal

Answer 5

Theory of Constraints

Question 6

The maximum time allowed for work on a unit at each station

Answer 6

Cycle Time

Question 7

The assignment of work to stations in a line process so as to achieve the desired output rate with the smallest number of workstations

Answer 7

Line Balancing

Question 8

The portion of the total cost that varies directly with volume of output

Answer 8

Variable Cost

Question 9

The portion of the total cost that remains constant regardless of changes in levels of output

Answer 9

Fixed Cost

Question 10

The use of the break even quantity; it can be used to compare processes by finding the volume at which two different processes have equal total costs

Answer 10

Break even Analysis