Essentials of Supply Chain Management: Chapter 11 (Test 2)

What is utilization?

The fraction of time a workstation or individual is busy over the long run

how can you compute resource utilization?

a. Both B and C

What is throughput?

The number of units or tasks that are completed per unit time from a process

What is a bottleneck?

The work activity that effectively limits the throughput of the entire process

What is Little’s Law?

At any moment, people, orders, jobs, documents, money, and other entities that flow through processes are in various stages of completion and may be waiting in queues

What is the formula for Little’s Law?

Work-in-progress = throughput x flow time

What is flow time?

The average time it takes to complete one cycle of a process

What does a queueing system consist of?

Customers that arrive for service, one or more severs that provide the service, and a queue of entities that wait for service if the server is busy

What are the three common queueing configurations?

One queue feeding multiple servers, multiple queues with their own servers, and several queues in series

Why is it important to understand queues?

To analyze processes, predict performance, and better allocate resources

What do queueing models help managers understand?

Waiting times, queue lengths, and how long machines or servers are idle

What is the theory of constraints?

A set of principles that focuses on increasing total process throughput by maximizing the utilization of all bottleneck work activities and workstations

What is a constraint when it comes to the theory of constraints?

Anything in an organization that limits it from moving towards or achieving its goal

What is nonbottleneck work activity?

One in which idle capacity exists

What is a nonphysical constraint?

An environmental or organizational, such as low product demand or an inefficient management policy or procedure

True or false: Inflexible work rules, inadequate labor skills, and poor management are all forms of constraints

true