Exam Questions Flashcards
How do you calculate the Return on Assets?
Net profit / total assets
How do you calculate the Net Profit?
Gross Profit - Total Expenses
How do you calculate the Gross Profit?
Sales - COGS
Whats the cycle time?
The cycle time is determined by the bottleneck that is the longest workstation time.
How do you calculate the takt time?
total production time in minutes / units to produce
How do you calculate the number of workstations?
sum of all task times / takt time
How do you calculate the idle time?
Takt time - Workstation time
How do you calculate the efficiency of the balanced line?
Sum of task times / takt time * number of workstations * 100
How do you calculate the minimum effective capacity?
number of equipment x design capacity x planned utilization
How do you calculate the acceptable standard deviation?
(difference between upper bound and mean) / 6
Whats the maximum capacity of the bottleneck in a process?
The sum of the capacities of the parallel activities
How do you calculate the total cost of internal failures?
Salvage Costs + Excess Inventory
How do you calculate the Net Profit Margin?
Net profit / Net sales
How do you calculate the flow time?
Little’s Law: F = I/TH x H
I = Number of items
T = Items per hour
H = Hours per shift
How do you calculate the actual utilization?
Actual used capacity / Maximum capacity
