Question 1

The maximum possible output of an operation is known as the ______________?&#10;A) Effective capacity&#10;B) Design capacity&#10;C) Theoretical capacity&#10;D) Expected capacity

Accepted Answer

B

Question 2

The actual output from an operation is known as the __________________?&#10;A) Effective capacity&#10;B) Design capacity&#10;C) Achieved capacity&#10;D) Expected capacity

Accepted Answer

The actual output from an operation is known as the "Achieved capacity." This term refers to the amount of product or service that has been produced or provided in reality, as opposed to theoretical or planned capacities.

Question 3

How is the efficiency of an operation measured?&#10;A) Achieved capacity/Design capacity&#10;B) Effective capacity/ Design capacity&#10;C) Achieved capacity/Effective capacity&#10;D) Effective capacity/Achieved capacity

Accepted Answer

Efficiency of an operation is measured by the ratio of Achieved capacity to Effective capacity, indicating how well the operation is performing against its designed performance level.

Question 4

If an operation has a design capacity of 168 hours, a planned downtime of 42 hours and an unplanned downtime of 6 hours, what is its efficiency?&#10;A) 71.4%&#10;B) 95.2%&#10;C) 85.1%&#10;D) 75.3%

Accepted Answer

Efficiency is calculated as (Actual Operating Time / Effective Capacity) * 100. Effective Capacity is Design Capacity minus Planned Downtime. Here, Effective Capacity = 168 - 42 = 126 hours. Actual Operating Time = Effective Capacity - Unplanned Downtime = 126 - 6 = 120 hours. Efficiency = (120 / 126) * 100 = 95.2%.

Question 5

A measure which takes into account availability of equipment, performance output and the quality of output is called _________________?&#10;A) Overall Machine Efficiency&#10;B) Overall Machine Utilization&#10;C) Overall Equipment Effectiveness&#10;D) Overall Design Effectiveness

Accepted Answer

Overall Equipment Effectiveness (OEE) is a measure that combines availability, performance, and quality to provide a single comprehensive metric for evaluating the effectiveness of manufacturing equipment.

Question 6

A qualitative method of forecasting demand is ________________?&#10;A) Moving average&#10;B) Exponential smoothing&#10;C) Delphi method&#10;D) Regression analysis

Accepted Answer

The Delphi method is a qualitative forecasting technique that involves seeking the opinions of experts to predict future events, making it distinct from quantitative methods like moving averages, exponential smoothing, and regression analysis, which rely on numerical data.

Question 7

A method of looking back at previous data to predict the future demand is _______________________?&#10;A) Moving average&#10;B) Scenario planning&#10;C) Delphi method&#10;D) Regression analysis

Accepted Answer

Moving average is a method that uses historical data to calculate an average, which is then used to predict future demand.

Question 8

Which of the following is an advantage of a level capacity strategy?&#10;A) Output levels can be varied in line with demand&#10;B) Output levels are predictable&#10;C) Customer order levels are predictable&#10;D) There is always enough capacity to meet demand

Accepted Answer

A level capacity strategy involves maintaining a consistent level of output regardless of fluctuations in demand. This predictability in output levels allows for more stable production planning and operations.

Question 9

Arranging flexible working shifts for employees in a retail operation is an example of ____________________?&#10;A) A chase demand strategy&#10;B) A demand management strategy&#10;C) A level capacity strategy&#10;D) A capacity lagging strategy

Accepted Answer

The answer of Arranging flexible working shifts for employees in...

Question 10

Advertising certain products at reduced prices is an example of which type of capacity strategy?&#10;A) Level capacity&#10;B) Chase demand&#10;C) Demand management&#10;D) Capacity leading

Accepted Answer

Demand management strategies involve adjusting the company's output, pricing, or promotional strategies to influence the level of demand to match the available capacity. Advertising products at reduced prices is a way to stimulate demand, aligning it more closely with the company's capacity.

Deck 7: Managing Capacity and Demand