final exam

Question 1

capacity

Answer 1

the maximum rate of output of a process or a system

Question 2

utilization

Answer 2

The degree to which equipment, space, or the workforce is currently being used

Question 3

utilization calculation

Answer 3

(average output rate/maximum capacity) * 100%

Question 4

capacity cushions

Answer 4

the amount of “reserve capacity” a process maintains

Question 5

economies of scale

Answer 5

reduce cost by increasing output rate

Question 6

diseconomies of scale

Answer 6

cost increases as the facility’s size increases

Question 7

capacity cushion calculation

Answer 7

100% - average utilization rate

Question 8

setup times

Answer 8

The time required to change a process or an operation from making one service or product to making another.

Question 9

bottleneck

Answer 9

limits the organization’s ability to meet the product volume, product mix, or demand fluctuation

Question 10

theory of constraints

Answer 10

focuses on managing constraints that delay a firm’s progress toward its goal

Question 11

throughput time

Answer 11

Total elapsed time from the start to the finish of a job

Question 12

TOC steps

Answer 12

1. identify system bottlenecks
2. exploit/improve the bottlenecks
3. subordinate all other bottlenecks to step 2
4. elevate the bottlenecks
5. do not be complacent

Question 13

identifying bottlenecks

Answer 13

large setup times and cost leads to larger runs being made

Question 14

immediate predecessors

Answer 14

Work elements that must be done before the next element can begin

Question 15

mixed model lines

Answer 15

A production line that produces several items belonging to the same family

Question 16

lean system

Answer 16

maximize the value by removing waste and delays from activities

Question 17

type of waste in lean

Answer 17

1. overproduction
2. inappropriate processing
3. waiting
4. transportation
5. motion
6. inventory
7. defects
8. underutilization of employees

Question 18

jidoka

Answer 18

immediately stopping the process when something is wrong and then fixing the problems

Question 19

muda

Answer 19

waste

Question 20

poka-yoke

Answer 20

methods aimed at designing fail-safe systems that minimize human error

Question 21

heijunka

Answer 21

The leveling of production load by both volume and product mix.

Question 22

kaizen

Answer 22

The philosophy of continually seeking ways to improve processes

Question 23

takt time

Answer 23

Cycle time needed to match the rate of production to the rate of sales or consumption

Question 24

pull method

Answer 24

customer demand activates the production

Question 25

push method

Answer 25

production begins in advance of customer needs

Question 26

the 5 S's

Answer 26

1. sort 2. straighten 3. shine 4. standardize 5. sustain

Question 27

takt time calculations

Answer 27

working time available/ customer demand

Question 28

Kanban

Answer 28

keeping records of what you have, what you are using, and what needs to be reordered to control flow

Question 29

just in time

Answer 29

The belief that waste can be eliminated by cutting unnecessary capacity or inventory and removing activities that don't add value

Question 30

JIT system

Answer 30

rearranging the organization to make a firm realize the benefits of JIT principles.

Question 31

project objectives

Answer 31

statement of scope, time frame, and resources

Question 32

critical path

Answer 32

The sequence of activities that takes the longest time to complete; determines earliest possible completion date

Question 33

gantt chart

Answer 33

helps team allocate resources and plan for project

Question 34

earliest finish time

Answer 34

earliest start + estimated duration

Question 35

latest start

Answer 35

latest finish - duration

Question 36

activity slack

Answer 36

latest start - earliest start or latest finish - earliest finish

Question 37

risk management plan

Answer 37

identifies risks finds ways to overcome them

Question 38

risk categories

Answer 38

1. strategic fit 2. service/product attributes 3. product team capability 4. operations

Question 39

PERT

Answer 39

(optimistic time + 4*most likely time + longest amount of time) / 6

Question 40

project life cycle

Answer 40

monitor status, monitor resources

Question 41

inventory management

Answer 41

The planning and controlling of inventories to meet the competitive priorities

Question 42

average cycle inventory

Answer 42

lot size/2

Question 43

3 types of inventory

Answer 43

raw material, work in process, finished goods

Question 44

SKU

Answer 44

stock keeping unit

Question 45

ABC analysis

Answer 45

dividing SKUs into three classes, according to their dollar usage, so that managers can focus on items that have the highest dollar value

Question 46

economic order quanitity

Answer 46

square root of (2 * annual demand * ordering or setup costs)/holding cost per unit

Question 47

inventory position calculations

Answer 47

on hand + in transit – demand = x

Question 48

periodic

Answer 48

ordering inventory to replenish

Question 49

component

Answer 49

goes through processes to become part of one or more parents

Question 50

parent

Answer 50

manufactured from components

Question 51

dependent demand

Answer 51

demand occurs because the quantity varies due to production plans for other items

Question 52

ATP procedures

Answer 52

available to promise; The quantity of end items that marketing can promise to deliver on specified dates.

Question 53

bill of materials

Answer 53

A record of all the components of an item, the parent-component relationships, and the usage quantities

Question 54

MRP inputs

Answer 54

bill of materials and info in inventory records

Question 55

scheduled receipts

Answer 55

orders that have been placed but not yet completed

Question 56

planned receipts

Answer 56

Orders that are not yet released to the shop or the supplier

Question 57

lead time

Answer 57

when you place the order until receipt

Question 58

MRP explosion

Answer 58

inventory record for a material; shows items lot size policy, vendor, price, lead time

Question 59

MRP explosion calculation

Answer 59

on hand = beginning balance + receipts - sales

Question 60

enterprise process

Answer 60

companywide process that cuts across functional areas, business units, geographical regions, product lines, suppliers, and customers

Question 61

bill of resources

Answer 61

same as BOM but for service firms