BUS-P 370 Module III: System Capacity Management I and II

A ______________ is a point of congestion in a production system that stops or severely slows the system.

bottleneck

T/F: The inefficiencies brought about by the bottleneck can often create delays and higher production costs.

True

_____________ bottlenecks are often due to temporary issues like employee absences, while long-term bottlenecks stem from inefficient processes.

Short-term

Eliminating bottlenecks ______________ efficiency, either by upgrading machinery, reorganizing processes, or hiring more staff.

improves

A _________________ is temporary and typically caused by temporary conditions such as employees on vacation or on sick leave.

short-term bottleneck

A ________________ is baked into the production process and includes things such as inefficient machinery.

long-term bottleneck

Companies are _____________ at risk for bottlenecks when they start the production process for a new product.

more

______________ is concerned with controlling the production process, identifying potential bottlenecks before they occur, and finding efficient solutions.

Operations management

______________- assumes downtime for machine repairs and employee time off, providing a range for which different processes can operate efficiently without breaking down.

Practical capacity

Companies often use _________________ tools and methods to determine and meet production goals.

capacity requirement planning (CRP)

A ___________________ is the difference between budgeted and actual results. Managers study variances to make changes and remove bottlenecks.

variance in the production process

Bottlenecks may be resolved by increasing __________________ , finding new suppliers, automating the labor process, and creating a better forecast for consumer demand.

capacity utilization

A bottleneck occurs when there is not enough capacity to meet the demand or _______________ for a product or service.

throughput

The best way to eliminate bottlenecks is to increase system ________________ by restructuring business operations or investing in people and machinery.

capacity

For bottlenecks in manufacturing, the most effective strategy is to __________________- address them.

preemptively

A __________________ serves as an insightful tool, providing a comprehensive overview of your production line and pinpointing areas prone to inefficiency.

value stream map

T/F: Increasing the capacity of your overall process hinges on enhancing the capacity of a bottleneck.

True

Being ______________ in managing bottlenecks is the key to detecting unwanted bottlenecks.

proactive