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Saudi Electronic University MGT 530 Efficiency 1)Efficiency is defined as the ratio of: A

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Saudi Electronic University

MGT 530

Efficiency

1)Efficiency is defined as the ratio of:

A.actual output to effective capacity.

B.            actual output to design capacity.

C.            design capacity to effective capacity.

D.            effective capacity to actual output.

E.            design capacity to actual output.

 

2. The ratio of actual output to effective capacity is:

A.            design capacity.

B.            effective capacity.

C.            actual capacity.

D.            efficiency.

E.            utilization.

 

3. Given the following information, what would efficiency be? Effective capacity = 80 units per day

Design capacity = 100 units per day Utilization = 48 percent

A.            20 percent

B.            35 percent

C.            48 percent

D.            60 percent

E.            80 percent

 

4. Given the following information, what would efficiency be? Effective capacity = 50 units per day

Design capacity = 100 units per day Actual output = 30 units per day

A.            40 percent

B.            50 percent

C.            60 percent

D.            80 percent

E.            90 percent

 

5. If a line is balanced with 80 percent efficiency, the "balance delay" will be:

A.            20 percent.

B.            80 percent.

C.            100 percent.

D.            unknown, since balance delay is not related to efficiency.

E.            depends on the next operation.

 

6. What is it about repetitive processes that make them appropriate for products in the maturity phase of their life cycle?

A.            efficiency

B.            general-purpose technology

C.            possible variety

D.            low risk

E.            flexibility

 

7. Methods analysis and motion study techniques develop which aspects of jobs?

A.            behavioral aspects

B.            efficiency aspects

C.            pay levels

D.            quality levels

E.            teamwork aspects

 

8. Which of the following is not true about the systems approach?

A.            A systems viewpoint is almost always beneficial in decision making.

B.            A systems approach emphasizes interrelationships among subsystems.

C.            A systems approach concentrates on efficiency within subsystems.

D.            A systems approach is essential whenever something is being redesigned or improved.

E.            All of the choices are true.

 

Capacity

9. Which of the following is essential to consider with respect to managing a process to meet demand?

A.            advertising

B.            trends in fashion

C.            global economic trends

D.            financial reporting standards

E.            capacity

 

10. Which of the following is/are a primary input into capacity, sales, and production planning?

A.            product design

B.            market share

C.            ethics

D.            globalization

E.            demand forecasts

 

11. Which of the following is not a basic question in capacity planning?

A.            what kind is needed

B.            how much is needed

C.            when is it needed

D.            who will pay for it

E.            what it will be used for

 

12. Which of these factors would not be subtracted from design capacity when calculating effective capacity?

A.            personal time

B.            equipment maintenance

C.            scheduling problems

D.            changing the mix of products

E.            all of the choices

 

 

13. Which of the following is not a reason why capacity decisions are so important?

A.            Capacity limits the rate of output possible.

B.            Capacity affects operating costs.

C.            Capacity is a major determinant of initial costs.

D.            Capacity is a long-term commitment of resources.

E.            Capacity affects organizations' images.

 

14. Which of the following is the case where capacity is measured in terms of inputs?

A.            steel mill

B.            electrical power plant

C.            restaurant

D.            petroleum refinery

E.            airline

 

15. Maximum capacity refers to the upper limit of:

A.            inventories.

B.            demand.

C.            supplies.

D.            rate of output.

E.            finances.

 

16. The impact that a significant change in capacity will have on a key vendor is a:

A.            supply chain factor.

B.            process limiting factor.

C.            internal factor.

D.            human resource factor.

E.            operational process factor.

 

17. The maximum possible output given a product mix, scheduling difficulties, quality factors, and so on is:

A.            utilization.

B.            design capacity.

C.            efficiency.

D.            effective capacity.

E.            available capacity.

 

18. Utilization is defined as the ratio of:

A.            actual output to effective capacity.

B.            actual output to design capacity.

C.            design capacity to effective capacity.

D.            effective capacity to actual output.

E.            design capacity to actual output.

 

19. Which of the following would tend to reduce effective capacity?

A.            suppliers that provide more reliable delivery performance

B.            reduced changeover times

C.            more employee cross-training

D.            improved production quality

E.            greater variety in the product line

 

20. The ratio of actual output to design capacity is:

A.            design capacity.

B.            effective capacity.

C.            actual capacity.

D.            efficiency.

E.            utilization.

 

21. Given the following information, what would efficiency be? Effective capacity = 80 units per day

Design capacity = 100 units per day Utilization = 48 percent

A.            20 percent

B.            35 percent

C.            48 percent

D.            60 percent

E.            80 percent

 

22. Given the following information, what would efficiency be? Effective capacity = 50 units per day

Design capacity = 100 units per day Actual output = 30 units per day

A.            40 percent

B.            50 percent

C.            60 percent

D.            80 percent

E.            90 percent

 

23. Given the following information, what would utilization be? Effective capacity = 20 units per day

Design capacity = 60 units per day Actual output = 15 units per day A.      1/4

B.            1/3

C.            1/2

D.            3/4

E.            none of these

 

24. Which of the following is not a strategy to manage service capacity?

A.            hiring extra workers

B.            backordering

C.            pricing and promotion

D.            part-time workers

E.            subcontracting

 

25. Which of the following is not a determinant of effective capacity?

A.            facilities

B.            product mix

C.            actual output

D.            human factors

E.            external factors

 

26. Capacity in excess of expected demand that is intended to offset uncertainty is a:

A.            margin protect.

B.            line balance.

C.            capacity cushion.

D.            timing bubble.

E.            positioning hedge.

 

27. Short-term considerations in determining capacity requirements include:

A.            demand trend.

B.            cyclical demand variations.

C.            seasonal demand variations.

D.            mission statements.

E.            new product development plans.

 

28. Which of the following is not a criterion for developing capacity alternatives?

A.            design structured, rigid systems

B.            take a big-picture approach to capacity changes

C.            prepare to deal with capacity in "chunks"

D.            attempt to smooth out capacity requirements

E.            identify the optimal operating level

 

29. Seasonal variations are often easier to deal with in capacity planning than random variations because seasonal variations tend to be:

A.            smaller.

B.            larger.

C.            predictable.

D.            controllable.

E.            less frequent.

 

30. When determining the timing and degree of capacity change, one can use the approach of:

A.            lead time flexibility strategy.

B.            expand early strategy.

C.            wait-and-see strategy.

D.            backordering.

E.            delayed differentiation.

 

31. The owner of Firewood To Go is considering buying a hydraulic wood splitter which sells for $50,000. He figures it will cost an additional $100 per cord to purchase and split wood with this machine, while he can sell each cord of split wood for $125. If, for this machine, design capacity is 50 cords per day, effective capacity is 40 cords per day, and actual output is anticipated to be 35 cords per day, what would be its utilization?

A.            100 percent

B.            80 percent

C.            75 percent

D.            70 percent

E.            0 percent

 

32. The owner of Firewood To Go is considering buying a hydraulic wood splitter which sells for $50,000. He figures it will cost an additional $100 per cord to purchase and split wood with this machine, while he can sell each cord of split wood for $125. If, for this machine, design capacity is 50 cords per day, effective capacity is 40 cords per day, and actual output is expected to be 32 cords per day, what would be its efficiency?

A.            100 percent

B.            80 percent

C.            75 percent

D.            70 percent

E.            0 percent

 

33. Operation X feeds into operation Y. Operation X has an effective capacity of 55 units per hour. Operation Y has an effective capacity of 50 units per hour. Increasing X's effective capacity to ensure that Y's utilization is maximized would be an example of               a(n) constraint.

A.            overcoming

B.            outsourcing

C.            insourcing

D.            cushioning

E.            supporting

 

34. Operation X feeds into operation Y. Operation X has an effective capacity of 55 units per hour. Operation Y has an effective capacity of 50 units per hour. Finding a way to increase Y's effective capacity would be an example of  a constraint.

A.            overcoming

B.            cushioning

C.            insourcing

D.            cycling

E.            repositioning

 

35. Which of the following makes using present value approaches in capacity decisions difficult?

A.            The discount rate must be adjusted to account for inflation.

 

B.            Some cash flows are positive and other cash flows are negative.

C.            The payback period might not be long enough to justify a capacity decision.

D.            Capacity decisions are made amidst much uncertainty, so cash flows cannot be estimated with great accuracy.

E.            There is a cash outflow at the outset followed by, possibly, net cash inflows.

 

36. Suppose operation X feeds directly into operation Y. All of X's output goes to Y, and Y has no other operations feeding into it. X has a design capacity of 80 units per hour and an effective capacity of 72 units per hour. Y has a design capacity of 100 units per hour. What is Y's maximum possible utilization?

A.            80 percent

B.            72 percent

C.            90 percent

D.            70 percent

E.            60 percent