BUSOBA 3230 Exam 2 UPDATED Exam
Questions and CORRECT Answers
goal of the firm: - CORRECT ANSWER - make money (Eli Goldratt's theory of
constraints)
if the firm makes money-and only then-it will prosper.
when a firm has money, it can place more emphasis on other objectives
types of performance measurements - CORRECT ANSWER - 1) financial measurements
2) operational measurements
financial measurements - CORRECT ANSWER - 1) Net profit
2) return on investment
3) cash flow
net profit - CORRECT ANSWER - an absolute measurement in dollars
return on investment - CORRECT ANSWER - a relative measure based on investment
cash flow - CORRECT ANSWER - a survival measurement
operational measurements - CORRECT ANSWER - 1) throughput
2) inventory
3) operating expenses
throughput - CORRECT ANSWER - the rate at which the money is generated by the
system through sales
-defined as goods sold
, inventory - CORRECT ANSWER - all the money that the system has invested in
purchasing things it intends to sell
operating expenses - CORRECT ANSWER - all the money that the system spends to turn
inventory into throughput
the operational goal of a firm is to - CORRECT ANSWER - increase throughput while
reducing inventory and operating expense
synchronous manufacturing - CORRECT ANSWER - a production process coordinated to
work in harmony to achieve the goals of the firm
productivity - CORRECT ANSWER - measure of how well resources are used
doesn't ensure firm will make money
-Goldratt's definition: all the actions that bring a company closer to its goals
bottleneck - CORRECT ANSWER - a resource that limits the capacity or maximum
output of the process
-if capacity is less than demand, a constraint is considered a "bottleneck"
-bottlenecks are often indicated by a build-up of WIP or process by steps with higher utilization
rates
nonbottleneck - CORRECT ANSWER - any resource whose capacity is greater than the
demand placed on it (Goldratt's definition)
capacity-constrained resource (CCR) - CORRECT ANSWER - a resource whose
utilization is close to capacity and could be a bottleneck if not scheduled carefully (Goldratt's
definition)
Questions and CORRECT Answers
goal of the firm: - CORRECT ANSWER - make money (Eli Goldratt's theory of
constraints)
if the firm makes money-and only then-it will prosper.
when a firm has money, it can place more emphasis on other objectives
types of performance measurements - CORRECT ANSWER - 1) financial measurements
2) operational measurements
financial measurements - CORRECT ANSWER - 1) Net profit
2) return on investment
3) cash flow
net profit - CORRECT ANSWER - an absolute measurement in dollars
return on investment - CORRECT ANSWER - a relative measure based on investment
cash flow - CORRECT ANSWER - a survival measurement
operational measurements - CORRECT ANSWER - 1) throughput
2) inventory
3) operating expenses
throughput - CORRECT ANSWER - the rate at which the money is generated by the
system through sales
-defined as goods sold
, inventory - CORRECT ANSWER - all the money that the system has invested in
purchasing things it intends to sell
operating expenses - CORRECT ANSWER - all the money that the system spends to turn
inventory into throughput
the operational goal of a firm is to - CORRECT ANSWER - increase throughput while
reducing inventory and operating expense
synchronous manufacturing - CORRECT ANSWER - a production process coordinated to
work in harmony to achieve the goals of the firm
productivity - CORRECT ANSWER - measure of how well resources are used
doesn't ensure firm will make money
-Goldratt's definition: all the actions that bring a company closer to its goals
bottleneck - CORRECT ANSWER - a resource that limits the capacity or maximum
output of the process
-if capacity is less than demand, a constraint is considered a "bottleneck"
-bottlenecks are often indicated by a build-up of WIP or process by steps with higher utilization
rates
nonbottleneck - CORRECT ANSWER - any resource whose capacity is greater than the
demand placed on it (Goldratt's definition)
capacity-constrained resource (CCR) - CORRECT ANSWER - a resource whose
utilization is close to capacity and could be a bottleneck if not scheduled carefully (Goldratt's
definition)
