Question 1

In a process sequence where a product flows from process A to process B, process A is called the "mother" process.

Accepted Answer

A) True 
 B)False

Question 2

According to the theory of constraints which of the following is a financial measurement that can be used to measure the firm's ability to make money?

Accepted Answer

A)  Operating expenses
B)  Cash flow
C)  Inventory
D)  Sales
E)  DividendsF) B) and D)
G) A) and B)

Question 3

Mr.Goldratt's "Theory of Constraints" is useful only in manufacturing settings.

Accepted Answer

A) True 
 B)False

Question 4

A useful measure of inventory performance is called "dollar days." In which of the following areas are dollar days measurements not useful?

Accepted Answer

A)  Marketing
B)  R & D
C)  Manufacturing
D)  Project management
E)  PurchasingF) A) and E)
G) A) and D)

Question 5

On an assembly line a transfer batch can be one unit.

Accepted Answer

A) True 
 B)False

Question 6

From an operations standpoint, one of the goals of the firm under the theory of constraints is to increase throughput while simultaneously reducing inventory and reducing operating expense.

Accepted Answer

A) True 
 B)False

Question 7

According to the theory of constraints, throughput is the rate at which product is passed through the manufacturing system.

Accepted Answer

A) True 
 B)False  False

Question 8

OPT stands for optimal purchasing technique.

Accepted Answer

A) True 
 B)False

Question 9

Looking at the loads that are placed on each resource by the products that are scheduled through them is called process flow profiling.

Accepted Answer

A) True 
 B)False

Question 10

A synchronous manufacturing system does not have excess capacity throughout the system, except for the bottleneck.

Accepted Answer

A) True 
 B)False

Question 11

JIT requires work-in-process when used with kanban so there is inventory to pull.When compared to synchronous manufacturing this is viewed as a negative aspect of JIT.

Accepted Answer

A) True 
 B)False

Question 12

A way to find a bottleneck is to use one's knowledge of a particular plant, look at the system in operation, and talk with supervisors and workers.

Accepted Answer

A) True 
 B)False  True

Question 13

One way to find a bottleneck is to run a capacity resource profile.

Accepted Answer

A) True 
 B)False

Question 14

The operational measure of throughput is "the rate at which money is generated by the system through production of goods and services that might be sold."

Accepted Answer

A) True 
 B)False

Question 15

Which of the following is one of Dr.Eli Goldratt's rules of production scheduling for optimized production technology?

Accepted Answer

A)  If you lose an hour at a bottleneck it is better than making scrap
B)  Do not balance capacity, balance the flow
C)  Do not allow bottlenecks to govern the flow of the line
D)  An hour saved at a bottleneck operation is a mirage
E)  The amount in a process batch should be fixed when the batch is begun and not changed over time or along its routeF) A) and E)
G) A) and D)

Question 16

The "dollar days" inventory measurement results from a complex algorithm used to compute individual units of inventory and their respective ordering and holding costs.

Accepted Answer

A) True 
 B)False

Question 17

Departments within a firm often are at odds with each other because reward systems are often not synchronized with the basic goal of the firm: to make money.

Accepted Answer

A) True 
 B)False

Question 18

Which of the following is a negative aspect of JIT compared to synchronous manufacturing?

Accepted Answer

A)  JIT cannot deal with outside vendors
B)  JIT needs broadly fluctuating production levels
C)  JIT does not allow very much flexibility in the products produced
D)  JIT requires a great deal of workforce computational skills
E)  JIT does not deal well with bottlenecksF) B) and D)
G) A) and B)

Question 19

The effects of statistical variations in processing times in a dependent sequence will eventually cancel themselves out due to the law of averages.

Accepted Answer

A) True 
 B)False  False

Question 20

A process batch should be no larger than the transfer batch.

Accepted Answer

A) True 
 B)False

Exam 20: Constraint Management

In a process sequence where a product flows from process A to process B, process A is called the "mother" process.

Correct AnswerverifiedShow Answer

According to the theory of constraints which of the following is a financial measurement that can be used to measure the firm's ability to make money?

Correct AnswerverifiedShow Answer

Mr.Goldratt's "Theory of Constraints" is useful only in manufacturing settings.

Correct AnswerverifiedShow Answer

A useful measure of inventory performance is called "dollar days." In which of the following areas are dollar days measurements not useful?

Correct AnswerverifiedShow Answer

On an assembly line a transfer batch can be one unit.

Correct AnswerverifiedShow Answer

From an operations standpoint, one of the goals of the firm under the theory of constraints is to increase throughput while simultaneously reducing inventory and reducing operating expense.

Correct AnswerverifiedShow Answer

According to the theory of constraints, throughput is the rate at which product is passed through the manufacturing system.

Correct AnswerverifiedFalse

OPT stands for optimal purchasing technique.

Correct AnswerverifiedShow Answer

Looking at the loads that are placed on each resource by the products that are scheduled through them is called process flow profiling.

Correct AnswerverifiedShow Answer

A synchronous manufacturing system does not have excess capacity throughout the system, except for the bottleneck.

Correct AnswerverifiedShow Answer

JIT requires work-in-process when used with kanban so there is inventory to pull.When compared to synchronous manufacturing this is viewed as a negative aspect of JIT.

Correct AnswerverifiedShow Answer

A way to find a bottleneck is to use one's knowledge of a particular plant, look at the system in operation, and talk with supervisors and workers.

Correct AnswerverifiedTrue

One way to find a bottleneck is to run a capacity resource profile.

Correct AnswerverifiedShow Answer

The operational measure of throughput is "the rate at which money is generated by the system through production of goods and services that might be sold."

Correct AnswerverifiedShow Answer

Which of the following is one of Dr.Eli Goldratt's rules of production scheduling for optimized production technology?

Correct AnswerverifiedShow Answer

The "dollar days" inventory measurement results from a complex algorithm used to compute individual units of inventory and their respective ordering and holding costs.

Correct AnswerverifiedShow Answer

Departments within a firm often are at odds with each other because reward systems are often not synchronized with the basic goal of the firm: to make money.

Correct AnswerverifiedShow Answer

Which of the following is a negative aspect of JIT compared to synchronous manufacturing?

Correct AnswerverifiedShow Answer

The effects of statistical variations in processing times in a dependent sequence will eventually cancel themselves out due to the law of averages.

Correct AnswerverifiedFalse

A process batch should be no larger than the transfer batch.

Correct AnswerverifiedShow Answer

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