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An example of a short-term capacity increase decision is:


A) Adding specialized labor.
B) Installing new equipment.
C) Adding new facilities.
D) Adding low-skilled labor.

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The following sequence shows four operations for a computer chip assembly process and the effective capacity of each. Step 1: 500 chips/hour Step 2: 250 chips/hour Step 3: 200 chips/hour Step 4: 550 chips/hour Suppose the utilization is 70 percent of effective capacity.What is the actual output of the process?


A) 140 chips/hour
B) 350 chips/hour
C) 175 chips/hour
D) 200 chips/hour

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Most processes involve two basic types of flows:


A) Information flows and material flows.
B) Product flows and decision flows.
C) Information flows and operator flows.
D) Physical flows and security flows.

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Little's Law suggests that the key to increased throughput is:


A) Shorter flow times.
B) Fewer defects.
C) Eliminating waste.
D) Increased inspection.

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One implication of increased utilization in a process is that:


A) Process cost typically will go up.
B) Waiting time typically will go up.
C) Variance typically will be reduced.
D) All of these.

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Space on the shop floor,bins,carts,or racks are capacity-limiting resources most frequently associated with which of the following process activities?


A) Delays
B) Transportation
C) Inspections
D) Operations.

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A process having the same activity being performed by two or more resources simultaneously is said to have what kind of structure?


A) Serial
B) Parallel
C) Helping
D) Flexible

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In process improvement projects,why should we focus our efforts on those processes that consume the most resources (e.g.,labor,space,capital,etc.) ?


A) Because those are the processes most visible to the customer
B) Because those are the processes that use our firm's core capabilities
C) Because that is where we get "the most bang for our buck."
D) All of these

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If a company can eliminate all sources of variance in a process:


A) It will be able to operate at maximum capacity at all times.
B) There will be no constraints in the process.
C) Continuous improvement will not be necessary.
D) None of these are true.

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