TOM 301 Ch. 10 Capacity Management
questions & answers graded A+
Process Capacity - correct answer ✔✔Is the capability of a manufacturing or service resource such as a
facility, process, workstation, or piece of equipment to accomplish its purpose over a specified time
period.
- The max. rate of output per unit of time
-Dependent on steps & their effects
-A more detailed look at the process
Economies of scale - correct answer ✔✔Are achieved when the average unit cost of a good or service
decreases as the capacity and or volume of throughout increase
* see PowerPoint OM5 6
Diseconomies of scale - correct answer ✔✔The factors that cause average costs to rise as the scale of
output increases in the long run, such as coordination and communication problems, leading to
alienation and low morale amongst the work force.
Focused factory - correct answer ✔✔
questions & answers graded A+
Process Capacity - correct answer ✔✔Is the capability of a manufacturing or service resource such as a
facility, process, workstation, or piece of equipment to accomplish its purpose over a specified time
period.
- The max. rate of output per unit of time
-Dependent on steps & their effects
-A more detailed look at the process
Economies of scale - correct answer ✔✔Are achieved when the average unit cost of a good or service
decreases as the capacity and or volume of throughout increase
* see PowerPoint OM5 6
Diseconomies of scale - correct answer ✔✔The factors that cause average costs to rise as the scale of
output increases in the long run, such as coordination and communication problems, leading to
alienation and low morale amongst the work force.
Focused factory - correct answer ✔✔
