Question 1

A six sigma control limit equals 3.4 defects per _____ parts.

Accepted Answer

Six Sigma control limits are defined as 3.4 defects per million opportunities (parts), aiming for near-perfect quality.

Question 2

What do real-time visibility and statistical process control techniques provide.

Accepted Answer

The answer of What do real-time visibility and statistical process...

Question 3

As a service capacity comparison,a bank might compare the _____ number of people the bank teller can process per hour with the _____ number of people the ATM can process per hour.

Accepted Answer

The bank would compare the maximum number of people the bank teller can process per hour with the maximum number of people the ATM can process per hour to assess service capacity.

Question 4

_____ is determined by calculating the amount of time that is available when fully utilizing the resources that are already in place to make and deliver product throughputs.Doubling the number of machines doubles the amount of available time.

Accepted Answer

This statement describes the concept of time capacity, which is denoted by the letter T. Time capacity is determined by calculating the amount of time available when resources are fully utilized to produce and deliver product throughputs. Doubling the number of machines would also double the time capacity available to produce products.

Question 5

_____ set for itself a robust and demanding quality goal of 3.4 defects per million parts.

Accepted Answer

Motorola set the Six Sigma quality improvement process, which aims for 3.4 defects per million opportunities as its goal, to improve manufacturing and business processes.

Question 6

_____ charts were developed in the 1930s by Walter Rautenstrauch,professor of Industrial Engineering at Columbia University and have become an influential model of P/OM,providing important information for capacity decisions.

Accepted Answer

The answer of _____ charts were developed in the 1930s...

Question 7

To understand the breakeven approach to capacity planning,it is easier to start with _____.

Accepted Answer

The breakeven approach to capacity planning is visualized better through the graphical approach as it involves plotting total revenue and total cost curves to find the point of intersection, which represents the breakeven point. While mathematical terms may provide a deeper understanding of the concepts involved, it may not be necessary to start with them to comprehend the breakeven approach.

Question 8

In a graphical presentation of break even analysis,profit occurs to the _____ of the BEP

Accepted Answer

In break even analysis, profit occurs to the right of the BEP because that is where the total revenue line is higher than total cost line, indicating a positive net income. To the left of the BEP, the total cost line is higher than the total revenue line, indicating a negative net income or loss. Therefore, the graph shows that profit occurs on the right side of the BEP.

Question 9

The principle of _____ is to design,develop and produce the minimum number of parts or operations that can be combined in the maximum number of ways to offer the greatest number of products or services.

Accepted Answer

The principle described in the question is that of modularity, which involves developing a system or product with standardized, interchangeable parts that can be combined in various ways to create a wide range of products or services. JIT (Just-in-Time) is a philosophy of manufacturing that emphasizes producing goods only as they are needed, while P/OM (Production/Operations Management) and OM (Operations Management) are broader categories that include various principles and practices related to managing production processes and operations.

Question 10

Machines and people that work _____ have lower efficiency than those that have a _____ productive output.

Accepted Answer

The sentence compares slower vs faster and lower vs higher productive output. It suggests that machines and people that work slower have lower efficiency. Therefore, the only option that makes sense is A), slower with higher productive output.

Question 11

Whether breakeven is a linear or non-linear system,maximum loss usually begins at the _____ of the diagram.

Accepted Answer

The breakeven point is the point where the cost and revenue curves intersect, indicating that the company is not making a profit or loss. Beyond this point, the company starts making a profit, and before this point, the company incurs a loss. Therefore, the maximum loss usually begins at the breakeven point, which is the zero volume point.

Question 12

The fixed costs and capacities of flow shops are much higher than the fixed costs and capacities of _____.

Accepted Answer

Job shops typically have lower fixed costs and flexible capacities, as they are designed to handle a wider variety of custom jobs with different requirements. Line flows, assembly lines, and continuous flow shops all have higher fixed costs and capacities geared towards high-volume production of a smaller range of standardized products.

Question 13

Linear programming finds the optimal solution by a strong search method that is much _____ than trail and error.

Accepted Answer

Linear programming uses algorithms such as simplex method or interior point method to find the optimal solution. These methods involve a strong search and elimination process that is much faster than trial and error.

Question 14

In a graphical presentation of break-even analysis,loss occurs to the _____ of the BEP.

Accepted Answer

In a break-even analysis graph, the left side represents units or sales revenue that are below the break-even point. This indicates a loss because the company is not able to cover its fixed and variable costs with its sales revenue. The break-even point is located where the cost and revenue lines intersect, and beyond that point (to the right), the company is making a profit.

Question 15

A potential backup supplier who can make up an emergency shortfall in materials is needed. Having this supplier in place before the shortage occurs is known as _____ planning.

Accepted Answer

Contingency planning involves creating a plan of action to address unexpected events or circumstances that may disrupt a business operation. Identifying and establishing backup suppliers in case of emergency material shortfall is an example of contingency planning.

Question 16

Skillful _____ can increase the level of capacity that is achieved in an organization.

Accepted Answer

Operations management involves managing and optimizing the processes and activities within an organization to improve efficiency, productivity, and overall capacity. Skilled operations management can lead to improvements in production and service delivery, reduction in costs and waste, and ultimately increase the level of capacity achieved by an organization. Marketing management, accounting methods, and finance management may also contribute to the success of an organization, but they do not have as direct an impact on increasing capacity as operations management.

Question 17

How can LP or linear program be used in a strategic way to support capacity management?

Accepted Answer

The answer of How can LP or linear program be...

Question 18

If a job is being done at 90 percent of the standard time because a supplier has delivered a defective product,_____ action must be taken with supplies on hand and the problem must be corrected with future deliveries.

Accepted Answer

Remedial action must be taken to address the issue of the defective product and ensure that future deliveries are of acceptable quality. This may include returning or replacing the defective supplies on hand and working with the supplier to improve their quality control processes.

Question 19

The overloaded system does not have to turn away orders if the customer agrees to wait until other customers' jobs are finished.When no current inventory is available,these _____ must wait until supply catches up with demand.

Accepted Answer

Back orders are orders that cannot be fulfilled immediately due to lack of inventory or overloaded production schedules. Customers can agree to wait until the supply catches up with demand, and then the orders can be fulfilled. Work-in-process, finished goods, and raw materials are not relevant in this scenario.

Question 20

If the _____ capacity of a process is less than the peak demand,knowing how to assign priorities will influence real capacity levels achieved.

Accepted Answer

Maximum capacity refers to the highest level of output that a process can achieve under ideal conditions. If the maximum capacity of a process is less than the peak demand, then knowing how to assign priorities becomes crucial in order to achieve the highest possible real capacity levels. This is because priorities can help ensure that the most important tasks are given precedence, which can help to maximize overall output within the constraints of the process's capacity.

Quiz 10: Supply Chain Capacity Planning