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Exam 5: Constraint Management

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Question 61

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Table 5.2 A company makes four products that have the following characteristics: Product A sells for $75 but needs $20 of materials and $20 of labor to produce; Product B sells for $90 but needs $45 of materials and $20 of labor to produce; Product C sells for $110 but needs $50 of materials and $30 of labor to produce; Product D sells for $135 but needs $75 of materials and $40 of labor to produce. The processing requirements for each product on each of the four machines are shown in the table. Work centers W, X, Y, and Z are available for 40 hours per week and have no setup time when switching between products. Market demand is 50 As, 60 Bs, 70 Cs, and 80 Ds per week. In the questions that follow, the traditional method refers to maximizing the contribution margin per unit for each product, and the bottleneck method refers to maximizing the contribution margin per minute at the bottleneck for each product. -Use the information in Table 5.2. Using the bottleneck method, what is the profit if the company manufactures the optimal product mix (consider variable costs only-overhead is not included in this profit calculation) ?

A) less than or equal to $6,500
B) greater than $6,500 but less than or equal to $6,700
C) greater than $6,700 but less than or equal to $6,900
D) greater than $6,900

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Question 62

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Table 5.7 The Terminal Company is attempting to balance its assembly line of high-voltage electrical connectors. The desired output for the line is 50 connectors per hour, and the information on the work elements for this assembly line is as follows. -Use the information from Table 5.7 and the most efficient line balance possible. What work elements are included in the first station?

A) A only
B) A and B only
C) A and E only
D) A and D only

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Question 63

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Which statement about transfer batch sizes is best?

Table 5.1 A company makes four products that have the following characteristics: Product A sells for $50 but needs $10 of materials and $15 of labor to produce; Product B sells for $75 but needs $30 of materials and $15 of labor to produce; Product C sells for $100 but needs $50 of materials and $30 of labor to produce; Product D sells for $150 but needs $75 of materials and $40 of labor to produce. The processing requirements for each product on each of the four machines are shown in the table. Work centers W, X, Y, and Z are available for 40 hours per week and have no setup time when switching between products. Market demand for each product is 80 units per week. In the questions that follow, the traditional method refers to maximizing the contribution margin per unit for each product, and the bottleneck method refers to maximizing the contribution margin per minute at the bottleneck for each product. -Use the information in Table 5.1. Using the bottleneck method, what is the optimal product mix (consider variable costs only-overhead is not included in this profit calculation) ?

________ is the amount by which efficiency falls short of 100 percent.

Balance the line in order to achieve maximum output for this eight-activity product. Then balance the line to maximize the efficiency of the operation. How do the levels of output (assume an eight-hour day) and line efficiencies compare?

According to the Theory of Constraints, all the money invested in a system in purchasing things that it intends to sell is ________.

Table 5.3 King Supply makes four different types of plumbing fixtures: W, X, Y and Z. The contribution margins for these products are: $70 for Product W, $60 for Product X, $90 for Product Y and $100 for Product Z. Fixed overhead is estimated at $5,500 per week. The manufacture of each fixture requires four machines, Machines #1, 2, 3 and 4. Each of the machines is available for 40 hours a week and there is no setup time required when shifting from the production of one product to any other. The processing requirements to make one unit of each product are shown in the table. Weekly product demand for the next planning period has been forecasted as follows: 70 Ws, 60 Xs, 50 Ys and 30 Zs. In the questions that follow, the traditional method refers to maximizing the contribution margin per unit for each product, and the bottleneck method refers to maximizing the contribution margin per minute at the bottleneck for each product. -Use the information in Table 5.3. Which machine is the bottleneck operation?

Figure 5.4 -Use the information in Figure 5.4. If each task has a work time of one minute and there are 480 work minutes in a day, what is the task assignment at the fourth workstation if maximum output is desired?

Balance the assembly line for the tasks contained in the table. The desired output is 240 units per day. Available production time per day is 480 minutes. What is the efficiency for the balanced assembly line?

The first step in applying the Theory of Constraints is to identify the constraint.

Figure 5.4 -Use the information in Figure 5.4. If each task has a work time of one minute and there are 8 hours in a day, what is the task assignment at the first station if 160 units should be produced each day?

Table 5.3 King Supply makes four different types of plumbing fixtures: W, X, Y and Z. The contribution margins for these products are: $70 for Product W, $60 for Product X, $90 for Product Y and $100 for Product Z. Fixed overhead is estimated at $5,500 per week. The manufacture of each fixture requires four machines, Machines #1, 2, 3 and 4. Each of the machines is available for 40 hours a week and there is no setup time required when shifting from the production of one product to any other. The processing requirements to make one unit of each product are shown in the table. Weekly product demand for the next planning period has been forecasted as follows: 70 Ws, 60 Xs, 50 Ys and 30 Zs. In the questions that follow, the traditional method refers to maximizing the contribution margin per unit for each product, and the bottleneck method refers to maximizing the contribution margin per minute at the bottleneck for each product. -Use the information in Table 5.3. Using the bottleneck method, what is the profit if Burdell manufactures the optimal product mix?

Table 5.2 A company makes four products that have the following characteristics: Product A sells for $75 but needs $20 of materials and $20 of labor to produce; Product B sells for $90 but needs $45 of materials and $20 of labor to produce; Product C sells for $110 but needs $50 of materials and $30 of labor to produce; Product D sells for $135 but needs $75 of materials and $40 of labor to produce. The processing requirements for each product on each of the four machines are shown in the table. Work centers W, X, Y, and Z are available for 40 hours per week and have no setup time when switching between products. Market demand is 50 As, 60 Bs, 70 Cs, and 80 Ds per week. In the questions that follow, the traditional method refers to maximizing the contribution margin per unit for each product, and the bottleneck method refers to maximizing the contribution margin per minute at the bottleneck for each product. -Use the information in Table 5.2. Using the traditional method, which product should be scheduled first?

Figure 5.4 -Use the information in Figure 5.4. If each task has a work time of one minute and there are 8 hours in a day, what is the minimum number of stations if 240 units should be produced each day?

What are two ways a process manager can identify a bottleneck in a service or manufacturing process? If you were in a manufacturing firm, what physical cues would signal a bottleneck?

There are three consecutive steps in a customer service process. The first two steps are each capable of serving 25 customers per hour while the third step can process only 20 customers per hour. Which of the following statements regarding this system is True?

The balance delay is the amount by which efficiency falls short of 100 percent.

Figure 5.3 The figure above shows the process for customers arriving at Hobbies Unlimited for several advertised crafts demonstrations. After signing in, customers are routed to different locations in the store for the two different programs provided. The numbers in parentheses are the time in minutes for each step of the process. -Use the information in Figure 5.3. How many customers can be processed through the A-B-C-D-G routing during a 4-hour evening session?

Figure 5.3 The figure above shows the process for customers arriving at Hobbies Unlimited for several advertised crafts demonstrations. After signing in, customers are routed to different locations in the store for the two different programs provided. The numbers in parentheses are the time in minutes for each step of the process. -Use the information in Figure 5.3 What is the throughput time for the A-B-C-D-G routing?