Deck 10: Capacity and Scheduling Management

Question 1

Capacity is the potential output of a system that may be produced in a specific time, determined by the size, scale and configuration of the system's transformation inputs.

Answer 1

True

Question 2

Schmenner and Swink's "law of bottlenecks" states that productivity is improved if the rate of flow is consistent throughout the whole process.

Answer 2

True

Question 3

Utilization is the ratio of output to effective capacity

Answer 3

False
Explanation:Answer is the exact opposite - utilization is the ratio of actual output to designed capacity.

Question 4

Strategic capacity involves decisions that deal with the relatively long term positioning of the organization.

Question 5

Organizational Congruence is the extent to which all managerial levels within the firm share a common vision and work together towards a common purpose

Question 6

Geographic density is the number of units in an area relative to the size of the area

Question 7

Unit Conformity is the extent to which units within an area are not identical

Question 8

Job scope is the range of tasks and responsibilities at area management level

Question 9

Services are 'perishable' in the sense that those not consumer today cannot be stored until tomorrow

Question 10

Chase demand is providing the same level of supply, no matter what the demand level.

Question 11

Demand smoothing provides the same level of supply, no matter what the demand level.

Question 12

Adjusting demand to better match supply is a strategy called 'demand management'

Question 13

Capacity is the potential output of a system that may be produced in a specific time, determined by the size, scale and configuration of the system's transformation inputs:

Question 14

A manager is able to make the following strategic decisions when they understand capacity:

A) Whether to divest
B) Whether to increase manufacturing and service capacity levels
C) Whether to take on new commitments & business opportunities
D) B & C only
E) All of the above

Question 15

Transformation inputs for the management of capacity include:
I. Hard systems
II) Soft systems
III) Malleable systems
IV) Corruptible systems

A) I and II
B) II and III
C) I, II, and III
D) All of the choices

Question 16

Which of the following is a goal of operations management in delivering an offer to the consumer?

A) Deliver an offer at the time the customer needs it
B) Deliver an offer to the appropriate quality standard
C) Deliver an offer at the price the customer is prepared to pay
D) All of the above

Question 17

Which of the following is not a reason for why rapid growth for a service business is desired?

A) New service concepts are easily copied by competitors
B) New sites are hard to come by and desirable to find before competitors
C) Access to new consumer markets
D) Patent protection
E) None of the above

Question 18

Adding capacity allows firms which of the following?

A) Position plants and service outlets in key areas around the world
B) Be influenced by industry trends
C) Develop the labor pool
D) All of the above

Question 19

The maximum output of a process that can be realistically expected under normal conditions:

A) The designed capacity
B) The effective capacity
C) The whole capacity
D) The Lean capacity
E) None of the above

Question 20

The potential output of a system that may be produced in a specified time, determined by the size, scale and configuration of the system's transformation inputs refers to:

A) Bottle neck
B) Big data
C) Scheduling
D) Brainstorming
E) Capacity

Question 21

Productivity is improved if the rate of flow is consistent throughout the whole process refers to the law of:

A) Capacity
B) Scheduling
C) Bottlenecks
D) Production
E) Demand

Question 22

"The greater the random variability, either demanded of the process or inherent in the process itself or the items processed, the less productive the process" is referring to:

A) The law of variety
B) The law of volume
C) The law of variation
D) The law of variability
E) The law of predictability

Question 23

Rapid growth is desirable amongst consumer service firms for the following reasons:

A) New services concepts are easily copied
B) There is low risk among competitors
C) Sites are difficult to find
D) A & C only
E) B & C only

Question 24

This type of capacity is typically used within service organizations to smooth out the relationship between demand and supply:

A) Lag
B) Average
C) Lead
D) Volume
E) None of the above

Question 25

What is NOT a "v" in the 4V's of Capacity?

A) Volume
B) Variety
C) Variation
D) Values
E) Variability

Question 26

Which are/is the dimensions to ensure a unit operates effectively and efficiently?

A) Job Scope
B) Organizational Congruence
C) Geographic Density
D) Unit Conformity
E) All of the above

Question 27

Sasser suggests that services are:

A) Intangible
B) Heterogenous
C) Perishable
D) Simultaneous
E) All of the above

Question 28

Localized, small-scale operations of multiple units present which major challenges:

A) growing quickly
B) finding the right site
C) ensuring outlets satisfy their local markets whilst conforming to brand standards
D) all of the above

Question 29

Franchising has which of the following advantages:

A) the franchisee typically 'owns' and develops the unit
B) the franchisee is typically local to the community or region that it is expanding into
C) local knowledge helps ensure that operations are managed effectively
D) all of the above

Question 30

Mature businesses may have a mindset which includes which of the following:

A) Perceive the industry as the stable
B) Believe profitability derives from giving shareholders less value
C) Regard themselves victims of external economic forces
D) Seek economies of scale
E) All of the above.

Question 31

Dynamic business may have a mindset which includes which of the following:

A) See new ways of operating
B) Strive to give better service to customers
C) Believe profit derives from their own ability to control events
D) Use innovation to compete
E) All of the above

Question 32

This type of manager is responsible for more than one brand and applies creative solutions to each of their units within the context of overarching policy guidelines and marketing strategies:

A) The entrepreneur
B) The multi-brand manager
C) The business manager
D) None of these
E) All of these

Question 33

Which of the following is a way in which a franchisor can exercise power in a franchisee relationship?

A) Reward
B) Expertise
C) Legitimacy
D) Identification
E) None of the above

Question 34

Adding capacity in advance of demand growth', is which type of capacity?

A) Lead
B) Lag
C) Average
D) None of the above

Question 35

What are aspects of operation that management capacity focuses on?

A) Transformation inputs and their organization into processes
B) Ensuring the transformation inputs are utilized efficiently depends on the flow of inputs through the system.
C) None of the above
D) Both A and B

Question 36

What are the principle variables that need to be managed in regards to capacity?

A) Total demand for the product/service offering
B) Range of different product/service offerings being made available.
C) Time frame of production for a product
D) Both A and B
E) All of the above

Question 37

What are the 4 V's of capacity?

A) Volume, Variety, Variation, Variability
B) Volume, Variability, Variety, Velocity
C) Velocity, Variety, Variation, Volume
D) Velocity, Variation, Variability, Variety

Question 38

Besides the 4 V's what are the other factors that has an impact on capacity management so that is may increase its complexity?

A) Predictability of Demand
B) Perishability of the output
C) None of the Above
D) Both A and B

Question 39

What is capacity and why is it a strategic issue?

Question 40

What are the possible ways of improving capacity and their respective advantages and disadvantages?

Question 41

Explain how capacity affects a company's ability to respond to customers.

Question 42

Explain methods for measuring capacity.

Question 43

Explain why capacity needs to be managed.

Question 44

Identify the operational aspects that capacity management focuses on.

Question 45

What are the principles for optimizing production?

Question 46

Explain the difference in managing capacity between production and services.

Question 47

Identify and explain the dimensions associate with the effective and efficient operation of multi-unit chains.

Question 48

Explain the strategic choices firm must trade off in the organization of multi-unit chains.

Question 49

Compare and contrast the strategies for managing capacity.