BSAN562 Quiz Ch7s

 Question 1

1

Multiple Choice

What is capacity in operations management?

1. The amount of raw materials a facility can store.

2. The minimum number of units a facility must produce.

3. The maximum number of units a facility can produce in a given time.

4. The average number of units produced per day.

Question 2

2

Multiple Choice

What is the primary goal of the Theory of Constraints?

1. To focus solely on reducing costs in manufacturing.

2. To identify and manage the limit that prevents a system from achieving higher performance.

3. To increase production speed without analyzing capacity.

4. To find the most profitable product to sell.

Question 3

3

Multiple Choice

What does the term 'design capacity' refer to?

1. The average output a facility produces in a year.

2. The total sales generated by a product.

3. The actual output produced by a system in a week.

4. The maximum theoretical output of a system under ideal conditions.

Question 4

4

Multiple Choice

What does effective capacity represent?

1. The actual output achieved in a given period.

2. The maximum theoretical output of a system.

3. The capacity in an ideal situation without any constraints.

4. The capacity that a firm expects to achieve under current operating constraints.

Question 5

5

Multiple Choice

What is the purpose of the Drum, Buffer, Rope system?

1. To maximize profits by reducing waste.

2. To synchronize production and manage constraints efficiently in a system.

3. To reduce the number of workers on the floor.

4. To save energy during the production process.

Question 6

6

Multiple Choice

What is utilization in operations management?

1. The percentage of design capacity that is actually achieved.

2. The percentage of effective capacity that is actually reached.

3. The total number of employees in a facility.

4. The maximum output of a production system.

Question 7

7

Multiple Choice

In an operation, what impact does increasing the capacity of a non-bottleneck station have?

1. It can significantly increase the overall throughput.

2. It leads to immediate layoffs of other workers.

3. It does not increase the overall capacity of the system.

4. It is always the most cost-effective solution.

Question 8

8

Multiple Choice

What does break-even analysis help determine?

1. The point at which total revenue equals total costs.

2. The optimal price for a product.

3. The maximum profit possible in a given period.

4. The total fixed costs of production.

Question 9

9

Multiple Choice

In bottleneck analysis, what is a bottleneck?

1. The most efficient worker in a production line.

2. The limiting factor or constraint in a production system.

3. The part of a process that has excess capacity.

4. The highest output station in the production system.

Question 10

10

Multiple Choice

What does it mean when a facility has excess capacity?

1. It suggests that the facility is understaffed and needs more workers.

2. It indicates that the facility is meeting all market demands perfectly.

3. It means the facility can produce more than current demand requires.

4. It means the facility is operating at its design capacity