Operations Management
17th Edition
ISBN: 9781259142208
Author: CACHON, Gérard, Terwiesch, Christian
Publisher: Mcgraw-hill Education,
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Chapter 5, Problem 3CQ
Summary Introduction
To determine: If the given statement is true or false.
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The slowest point in a process is a ________.
Group of answer choices
Bottleneck
Lost production
Surplus
Throughput
Break-even point is:
adding processes to meet the point of changing product demands
improving processes to increase throughput
the point in dollars or units at which cost equals revenue
adding or removing capacity to meet demand
the total cost of a process alternative
A department works one 8-hour shift, 250 days a year, and has these figures for usage of amachine that is currently being considered:ProductAnnualDemandStandard ProcessingTime per Unit (hr)Processing TimeNeeded (hr)1 400 5.0 2,0002 300 8.0 2,4003 700 2.0 1,4005,800Units of capacity needed = Processing time needed ___________________________ Processing time capacity per unit (5–3)Working one 8-hour shift 250 days a year provides an annual capacity of 8 × 250 =2,000 hours per year. Consequently, three of these machines would be needed to handle therequired volume:5,800 hours __________________ 2,000
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Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, operations-management and related others by exploring similar questions and additional content below.Similar questions
- Three employees at a fast-food restaurant each perform one of the three activities in serving a customer: take the order, process the order, and deliver the order. The processing time for each activity is given as follows: Activity Processing Time Take the order 30 seconds Process the order 2 minutes Deliver the order 1 minute Assume that the demand is 20 customers/hour. What is the average labor utilization? a 38.9% b 85.7% c 66.7% d 100%arrow_forwardC&A Candy produces two kinds of gumdrops: regular and sugar-free. The data on these gumdrops are given below: Regular Sugar-Free 30 10 60 30 80 80 Demand (lbs per hour) Changeover time (min) Production rate (lbs per hour) C&A first makes 60 pounds of regular gumdrops, then 20 pounds of sugar-free gumdrops, and then repeats this sequence. What is the utilization of the production process? Multiple Choice O O O 25% 20% 50% 40%arrow_forwardBalancing a process with a fixed sequence of activities will achieve a higher averagelabor utilization than balancing a process with no fixed sequence of activities. True orfalse?a. Trueb. Falsearrow_forward
- Which of the following statements best represents a concise definition of an operations process? It is a conversion activity that Select one: a. involves technical analysis b. involves workers and equipment c. transforms inputs to outputs d. produces competitive advantage for the firm Which of the following situations will tend to increase customer dissatisfaction with waiting in line the most? Select one: a. Large numbers of customers b. The physical location of an operation c. Bright lights in the banking hall d. Idle workers in the view of customersarrow_forwardStudents have to change buildings between classes, which often involves walks of5 minutes or more. Walking from one building to another is:a. waste.b. non-value-added time.c. value-added time.d. Cannot determine from the given infomationarrow_forwardWhat is the highest possible yield a process can obtain?a. 95 percentb. 100 percentc. 200 percentd. It depends on the processarrow_forward
- It is possible to increase process capacity by balancing a process. True or false?a. Trueb. Falsearrow_forwardThe resource with the largest total demand rate is the bottleneck. True or false?a. Trueb. Falsearrow_forwardThe information turnaround time is driven primarily by:a. the number of workers.b. the IT system.c. the inventory in the process.d. the amount of waste in the process.arrow_forward
- We measure, monitor and improve process cycle time because: a. It is an easy measurement to make *b. Increasing cycle time helps us improve the capacity of the process and reduce costs c. Everyone understands cycle time d. Customers are interested in how long it takes to make a product e. All of the above f. None of the abovearrow_forwardChairs are made in a process with a single resource. There are two types of chairs. The resource's processing time for the first type is 30 minutes and demand for this type is 2.3 chairs per hour. The resource's processing time for the second type is 23 minutes and demand for this type is 2.8 chairs per hour. There is 1 worker at this resource. Instruction: Round your answer to one decimal place. What is the implied utilization (%) of this resource?arrow_forwardWhich of the following statements is TRUE? Group of answer choices The bottleneck resource is the one that determines the capacity of a process, and thus its utilization is always 100%. Because there is excess capacity compared to the bottleneck resource, non-bottleneck resource is always under-utilized, and its utilization is less than 100%. The bottleneck resource constrains the flow of the process, and thus the flow rate is always the same as the bottleneck capacity. When process is capacity constrained, utilization tells us by how much demand exceeds capacity. It is always necessary to add more capacity to the bottleneck stage to increase the Flow rate of the process.arrow_forward
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