MGSC chapter 6 exam 2

According to the TOC view, all machines and work-in process materials __________.

• • represent inventory because they could be sold to make money

• • should not be calculated as fixed expenses of the firm

• • should operate for a full 8-hour day

• • represent an investment that the company likely should not have made

Which of the following is FALSE about the TOC view?

• • Machines and work-in process materials should not be calculated in a company’s inventory.

• • Producing a product that does not lead to a sale will increase its inventory.

• • Producing a product that does not lead to a sale will not increase a company’s throughput.

• • Every capital investment in a system represents inventory because it could all be sold to make money.

__________ is a planning and control system used in manufacturing to plan and schedule production.

• DBR

• AON

• CCR

• TOC

What is the goal of line balancing?

• • To match the output rate to the staffing or production plan

• • To create the smallest number of stations possible

• • To divide tasks into the smallest units of work for each workstation

• • To have just one worker assigned to a workstation

In DBR, the bottleneck schedule is the __________.

• drum

• contribution margin

• rope

• buffer

The __________ does not consider fixed costs when making the product mix decision.

• traditional method

• theory of constraints

• trial and error

• bottleneck method

Which of the following is the final step in the practical applications of the TOC?

• • Not letting inertia set in

• • Exploiting the bottlenecks

• • Identifying the system bottlenecks

• • Evaluating the bottlenecks

Which of the following practical applications of the TOC is the step that follows elevating the bottlenecks?

• • Not letting inertia set in

• • Exploiting the bottlenecks

• • Identifying the system bottlenecks

• • Getting rid of the bottlenecks

Which of the following is NOT a key principle of the theory of constraints?

• • Building inventories at all points in a system is essential.

• • An hour lost at a bottleneck is an hour lost for the whole system.

• • The focus should be on balancing flow, not on balancing capacity.

• • Maximizing the output and efficiency of every resource may not maximize the throughput of the full system.

In DBR, the rope __________.

• • represents the tying of material release to the drumbeat

• • constantly monitors the execution of incoming bottleneck work

• • is a contribution margin

• • is the bottleneck schedule