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Rather than try to adjust the master production schedule to change resource loads, it is more practical to control the flow at each bottleneck or CCR to bring capacities in line.

A) True
B) False

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Because of statistical fluctuation (processing times vary around an average processing time) dependent sequences can operate without any inventory between workstations.

A) True
B) False

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JIT requires a stable production level.When compared to synchronous manufacturing this is viewed as a negative aspect of JIT.

A) True
B) False

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According to the theory of constraints, capacity is the time available for production.

A) True
B) False

Correct Answer

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According to the theory of constraints which of the following is a kind of time that makes up the cycle time in production?


A) Process time
B) Starting time
C) Quitting time
D) Information time
E) Finish time

F) B) and E)
G) All of the above

Correct Answer

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Synchronous manufacturing refers to the entire production process working together in harmony to achieve the goals of the firm.

A) True
B) False

Correct Answer

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Statistical fluctuation refers to the normal variation about a mean or average.

A) True
B) False

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According to the theory of constraints which of the following is an operational measurement that can be used to measure the firm's ability to make money?


A) Net profit
B) Throughput
C) Return on investment
D) Sales
E) Direct labor hours

F) B) and C)
G) A) and B)

Correct Answer

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According to the theory of constraints which of the following is a financial measurement that can be used to measure the firm's ability to make money?


A) Net profit
B) Throughput
C) Inventory
D) Sales
E) Retained earnings

F) B) and D)
G) A) and E)

Correct Answer

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In a process sequence where a product flows from process A to process B, process B is called the contingent process.

A) True
B) False

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On an assembly line a process batch can be infinite.

A) True
B) False

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The "dollar days" inventory measurement may be used to focus management's attention on where inventory is located.

A) True
B) False

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Larger transfer batches give shorter lead times and lower inventories, and there is more material handling than smaller transfer batches.

A) True
B) False

Correct Answer

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According to the theory of constraints the term productivity is defined as all those actions that bring a company closer to its goals.

A) True
B) False

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In a process sequence where a product flows from process A to process B, process B is called the dependent process.

A) True
B) False

Correct Answer

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Which of the following is a "focusing step" of Dr.Eli Goldratt's theory of constraints?


A) Reduce system constraints
B) Reinforce system constraints
C) Support system constraints
D) If you have no system constraints, make some
E) Identify system constraints

F) All of the above
G) A) and D)

Correct Answer

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Transfer batch is another term for process batch.

A) True
B) False

Correct Answer

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Which of the following is one of Dr.Eli Goldratt's rules of production scheduling for optimized production technology?


A) Utilization and activation of a resource are not the same
B) Do not allow bottlenecks to govern the flow of the line
C) An hour lost at a bottleneck saves an hour for the entire system
D) Balance the capacities, not the flows
E) The level of utilization of a bottleneck resource is not determined by its own potential but by some other constraint in the system

F) None of the above
G) A) and E)

Correct Answer

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According to the theory of constraints, a capacity-constrained resource (CCR) is one whose utilization is close to capacity and could be a bottleneck if it is not scheduled carefully.

A) True
B) False

Correct Answer

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Smaller transfer batches give lower work-in-process inventory and faster product flow.

A) True
B) False

Correct Answer

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