ARE112 EXAM 1 QUESTIONS AND ANSWERS
The Goal:
40 - what is the goal - Answers -The "goal" is to make
money and anything that brings us closer to it is productive and anything that doesn't
isn't.
The Goal:
45 - how does Lou look at the
problem - Answers -The goal is to make money through...total sales, and market share,
and profitability, and dividends paid to stockholders.
The Goal:
48 - what is their answer to the
problem - Answers -3 measurements that are central to knowing if the company is
making money: net profit, ROI, and cash flow
The Goal:
59 - what is Jonah trying to get at
here? - Answers -There is more than one way to express the goal.
The Goal:
67 - how are they now expressing the goal? - Answers -Increase throughput while
simultaneously reducing both inventory and operating expense
The Goal:
86 - what is a balanced plant? - Answers --A plant where the capacity of each and
every resource is balanced exactly with demand from the market.
-the closer you come to a balanced plant, the closer you are to bankruptcy.
The Goal:
101 - what do they mean by the
accumulation of statistical fluctuations - Answers -Through the analogy between a
single file hike
through the wilderness and a manufacturing plant, Alex sees that there are normally
limits to
making up the downside of the fluctuations with the following "dependent events". Even
if
there were no limits, the last event must make up for all the others for all of them to
average
out.
The Goal:
118 - What is Herbie? - Answers -the slow kid Herbie on the hike
, The Goal:
139 - what is the balanced plant now? - Answers -"A non-bottleneck is any resource
whose capacity
is greater than the demand placed on it." Jonah explains that Alex should not try to
balance
capacity with demand, but instead balance the flow of product through the plant.
The Goal:
158 - what is Jonah trying to get at here? - Answers -The capacity of the plant is equal
to the capacity of the bottlenecks.
Jonah tells them that they have hidden
capacity because some of their thinking is incorrect. Some ways to increase capacity at
the
bottlenecks are not to have any down time within the bottlenecks, make sure they are
only
working on quality products so not to waste time, and relieve the workload by farming
some
work out to vendors. Jonah wants to know how much it cost when the bottlenecks (X
and
heat treat) machines are down. Lou says $32 per hour for the X machine and $21 per
hour
for heat treat. How much when the whole plant is down? Around $1.6 million. How many
hours are available per month? About 585. After a calculation, Jonah explains that when
the
bottlenecks are down for an hour, the true cost is around $2,735, the cost of the entire
system. Every minute of downtime at a bottleneck translates into thousands of dollars of
loss
throughput, because without the parts from the bottleneck, you can't sell the product.
Therefore, you cannot generate throughput.
The Goal:
164 - what is the sane approach to the problem? - Answers -Alex organizes the
bottlenecks to work on only overdue orders from the most overdue to the
least.
The Goal:
182 - what is the function of the
colored tape? - Answers -tagging all the batches according to priority.
red, yellow, green
The Goal:
186 - what is a significant aspect of Ralph and the head treatment process - Answers --
He wanted to keep accurate record of the actual times for each heat of parts in the
furnace
The Goal:
40 - what is the goal - Answers -The "goal" is to make
money and anything that brings us closer to it is productive and anything that doesn't
isn't.
The Goal:
45 - how does Lou look at the
problem - Answers -The goal is to make money through...total sales, and market share,
and profitability, and dividends paid to stockholders.
The Goal:
48 - what is their answer to the
problem - Answers -3 measurements that are central to knowing if the company is
making money: net profit, ROI, and cash flow
The Goal:
59 - what is Jonah trying to get at
here? - Answers -There is more than one way to express the goal.
The Goal:
67 - how are they now expressing the goal? - Answers -Increase throughput while
simultaneously reducing both inventory and operating expense
The Goal:
86 - what is a balanced plant? - Answers --A plant where the capacity of each and
every resource is balanced exactly with demand from the market.
-the closer you come to a balanced plant, the closer you are to bankruptcy.
The Goal:
101 - what do they mean by the
accumulation of statistical fluctuations - Answers -Through the analogy between a
single file hike
through the wilderness and a manufacturing plant, Alex sees that there are normally
limits to
making up the downside of the fluctuations with the following "dependent events". Even
if
there were no limits, the last event must make up for all the others for all of them to
average
out.
The Goal:
118 - What is Herbie? - Answers -the slow kid Herbie on the hike
, The Goal:
139 - what is the balanced plant now? - Answers -"A non-bottleneck is any resource
whose capacity
is greater than the demand placed on it." Jonah explains that Alex should not try to
balance
capacity with demand, but instead balance the flow of product through the plant.
The Goal:
158 - what is Jonah trying to get at here? - Answers -The capacity of the plant is equal
to the capacity of the bottlenecks.
Jonah tells them that they have hidden
capacity because some of their thinking is incorrect. Some ways to increase capacity at
the
bottlenecks are not to have any down time within the bottlenecks, make sure they are
only
working on quality products so not to waste time, and relieve the workload by farming
some
work out to vendors. Jonah wants to know how much it cost when the bottlenecks (X
and
heat treat) machines are down. Lou says $32 per hour for the X machine and $21 per
hour
for heat treat. How much when the whole plant is down? Around $1.6 million. How many
hours are available per month? About 585. After a calculation, Jonah explains that when
the
bottlenecks are down for an hour, the true cost is around $2,735, the cost of the entire
system. Every minute of downtime at a bottleneck translates into thousands of dollars of
loss
throughput, because without the parts from the bottleneck, you can't sell the product.
Therefore, you cannot generate throughput.
The Goal:
164 - what is the sane approach to the problem? - Answers -Alex organizes the
bottlenecks to work on only overdue orders from the most overdue to the
least.
The Goal:
182 - what is the function of the
colored tape? - Answers -tagging all the batches according to priority.
red, yellow, green
The Goal:
186 - what is a significant aspect of Ralph and the head treatment process - Answers --
He wanted to keep accurate record of the actual times for each heat of parts in the
furnace
