Bus 140 Exam 2 questions and
answers
any part of an organization that takes inputs and transforms them into
outputs✔✔process
the average successive time between completions of successive units✔✔cycle time
the ratio of the time that a resource is actually activated relative to the time that it is
available for use✔✔utilization
the use of a diagram to present the major elements of a process (include: tasks or
operations, flows of materials or customers, decision points, and storage areas of
queues)✔✔process flowcharting
a storage area between stages where the output of a stage is placed prior to being
used in a downstream stage✔✔buffer
occurs when the activities in a stage must stop because there is no place to deposit
the item✔✔blocking
occurs when the activities in a stage must stop because there is no work✔✔starving
stage that limits the capacity of the process✔✔bottleneck
a single path for all stages of production✔✔serial flow process
some of production has alternative paths where two or more machines are used to
increase capacity✔✔parallel process
the movement of things such as materials, people, or finished goods✔✔logistics
proceses
-only activated in response to an actual order
-both work-in-process and finished goods inventory are kept to a minimum✔✔make-
to-order
-demand is stable
-process activated to meet expected or forecast demand
-customer orders are served from target stocking level✔✔make-to-stock
combines features of both make-to-order and make-to-stock✔✔hybrid
movement of items through a process is coordinated through a timing mechanism.
Assembly lines are usually paced✔✔pacing
, False
cycle time is the average time between completed and actual unit✔✔Cycle time is
the ratio of the time that a resource is actually activated relative to the time that it is
available for use. (T/F)
True✔✔Buffering in a production process refers to a storage area between stages of
production activity where output of a stage is placed prior to being used in a
"downstream" stage. (T/F)
False
bottleneck limits overall capacity of project✔✔A bottleneck occurs when a stage in a
production process is starving. (T/F)
number of flow units that move through the process in a given unit of time; also
called throughput (rate of revenue generation, reflected in the income
statement)✔✔throughput rate
time that it takes a unit to move through an entire process (includes time unit spent
actually being worked on together with the time spent waiting (lead time,
responsiveness)✔✔flow time
number or value of all the flow units in a process (use of working capital, reflected on
balance sheet)✔✔inventory
-establishes a mathematical long-term relationship between inventory, throughput
rate and flow time
-inventory = throughput rate x flow time✔✔Little's Law
False✔✔Throughput rate of a production process is the amount of time a unit
spends actually being worked on.
the (average) number of days until the firm would run out of an item if not
replenished (essential to flow time)✔✔days-of-supply
the cost of goods sold divided by the total average value of inventory (inverse of
days-of-supply)✔✔inventory turn
a ratio of the actual output of a process relative to some standard
actual output/standard output✔✔efficiency
the time required to produce a batch of parts✔✔run time
the time required to prepare a machine to make a particular item✔✔setup time
run time + set up time✔✔operation time
managing the entire organization so that it excels on all dimensions of products ad
services that are important to the customer✔✔Total Quality Management
answers
any part of an organization that takes inputs and transforms them into
outputs✔✔process
the average successive time between completions of successive units✔✔cycle time
the ratio of the time that a resource is actually activated relative to the time that it is
available for use✔✔utilization
the use of a diagram to present the major elements of a process (include: tasks or
operations, flows of materials or customers, decision points, and storage areas of
queues)✔✔process flowcharting
a storage area between stages where the output of a stage is placed prior to being
used in a downstream stage✔✔buffer
occurs when the activities in a stage must stop because there is no place to deposit
the item✔✔blocking
occurs when the activities in a stage must stop because there is no work✔✔starving
stage that limits the capacity of the process✔✔bottleneck
a single path for all stages of production✔✔serial flow process
some of production has alternative paths where two or more machines are used to
increase capacity✔✔parallel process
the movement of things such as materials, people, or finished goods✔✔logistics
proceses
-only activated in response to an actual order
-both work-in-process and finished goods inventory are kept to a minimum✔✔make-
to-order
-demand is stable
-process activated to meet expected or forecast demand
-customer orders are served from target stocking level✔✔make-to-stock
combines features of both make-to-order and make-to-stock✔✔hybrid
movement of items through a process is coordinated through a timing mechanism.
Assembly lines are usually paced✔✔pacing
, False
cycle time is the average time between completed and actual unit✔✔Cycle time is
the ratio of the time that a resource is actually activated relative to the time that it is
available for use. (T/F)
True✔✔Buffering in a production process refers to a storage area between stages of
production activity where output of a stage is placed prior to being used in a
"downstream" stage. (T/F)
False
bottleneck limits overall capacity of project✔✔A bottleneck occurs when a stage in a
production process is starving. (T/F)
number of flow units that move through the process in a given unit of time; also
called throughput (rate of revenue generation, reflected in the income
statement)✔✔throughput rate
time that it takes a unit to move through an entire process (includes time unit spent
actually being worked on together with the time spent waiting (lead time,
responsiveness)✔✔flow time
number or value of all the flow units in a process (use of working capital, reflected on
balance sheet)✔✔inventory
-establishes a mathematical long-term relationship between inventory, throughput
rate and flow time
-inventory = throughput rate x flow time✔✔Little's Law
False✔✔Throughput rate of a production process is the amount of time a unit
spends actually being worked on.
the (average) number of days until the firm would run out of an item if not
replenished (essential to flow time)✔✔days-of-supply
the cost of goods sold divided by the total average value of inventory (inverse of
days-of-supply)✔✔inventory turn
a ratio of the actual output of a process relative to some standard
actual output/standard output✔✔efficiency
the time required to produce a batch of parts✔✔run time
the time required to prepare a machine to make a particular item✔✔setup time
run time + set up time✔✔operation time
managing the entire organization so that it excels on all dimensions of products ad
services that are important to the customer✔✔Total Quality Management
