Chapter 09 - exam PDF

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Chapter 9. Capacity management MULTIPLE CHOICE 1. Capacity planning is the creation of a series of interrelated hierarchical plans. The levels of these plans correlate with the levels of the manufacturing framework. Which of the following capacity plan and manufacturing process matches are at the same level? (1). Sales and Operations Planning Rough-Cut Capacity Planning (2). Shop-Floor Control (SFC) Rough-Cut Capacity Planning (3). Material Requirements Planning (MRP) Capacity Requirements Planning (4). Master Production Scheduling (MPS)Input/Output Analysis a. (1)

c. (3)

b. (2) and (4)

d. (1), (2), and (4)

ANS: C

PTS: 1

2. Capacity Requirements Planning (CRP) is a Capacity planning activity. At which resource levels does CRP operate? (1). All Work Centers (2). Individual Machine (3). Company

(4). Plants a. (1)

c. (1) and (3)

b. (2) and (4)

d. None of the above

ANS: A

PTS: 1

3. Material Requirements Planning (MRP) operates on a component product level which is the level _____________ also operates at. (1). Component/Supplier Capacity Planning (SCP) (2). Sub-assembly/Input/Output Analysis (3). Raw material/Supply Chain Planning (4). Component/Resource Capacity Planning a. (1)

c. (3)

b. (2) or (4)

d. None of the above

ANS: A

PTS: 1

4. _______________________________________________ is a major function of the capacity

planning process named ____________. a. Changing capital equipment within the plant facility/Long-Range Capacity Planning b. Short-term subcontracting through temporary agencies/Short-Term Capacity Planning c. Scheduling overtime/Medium-Range Capacity Planning d. Planing alternate product routings/Medium-Range Capacity Planning ANS: D

PTS: 1

5. Of the following capacity planning horizons, which horizon is more concerned with capacity

control over the next 4 weeks? a. Immediate-Range Capacity Planning

c. Short-Range Capacity Planning

b. Medium-Range Capacity Planning

d. Long-Range Capacity Planning

ANS: C

PTS: 1

6. Capacity is the measure of productive capability of a facility for a unit of time. Which of the following capacity types measures the company's total effective capacity under perfect conditions? a. Design capacity

c. Rated capacity

b. Estimated capacity

d. Effective capacity

ANS: A

PTS: 1

7. Capacity is the measure of productive capability of a facility for a unit of time. Name the

capacity measure that divides effective capacity with design capacity. a. Effective Capacity Utilization

c. Design Capacity Normalization

b. Capacity efficiency

d. Rated capacity Utilization

ANS: A

PTS: 1

8. Choose, among the following examples of capacity, the ones that are not precise. (1). ADA Inc. can produce only 150 computers per hour (2). The auditorium can seat 1,400 people at a time (3). The bus can run its route 11 times a day

(4). The movie theater can play 15 trailers for every double feature

a. (1)

c. (2)

b. (2) and (4)

d. (1) and (3)

ANS: B

PTS: 1

9. The movie theater has scheduled 6 showings a day. The movie theater can play a maximum of 8 trailers for every movie showing. However, because of the time needed to clean the theater after each showing, only 32 trailers are played every day. What is the Effective capacity utilization? a. 52.95%

c. 72.50%

b. 66.70%

d. 60.20%

ANS: B

PTS: 1

10. AE Manufacturing has 60 machine hours every day. AE Manufacturing two products, A and B. When changing over from producing product B to A, there is no change over time. When changing over from producing product A to B, it takes 8 machine hours. If the previous day ended with producing product B, what is the effective capacity when AE Manufacturing has the following schedule: product A,

product B, product A. a. 60 machine hours per day

c. 44 machine hours per day

b. 56 machine hours per day

d. 52 machine hours per day

ANS: D

PTS: 1

11. Among the alternative RCCP approaches, name the approach that applies planning factors derived from historical data for the end item to MPS data and are used to estimate overall labor in order to estimate overall labor or machine hour capacity requirements. a. Rough-Cut Capacity and Production Volume (RCV) b. Rough-Cut Capacity Check Using Overall Factors (RCOF) c. Rough-Cut Capacity Using Routings (RCCR) d. Resource Profile Method (RPM) ANS: B

PTS: 1

12. Dave is conducting Rough-Cut Capacity Planning (RCCP) for a product GTB. The product GTB' BOM has 2 levels. The assembly is at level 1. At level 2, there are component A and B. The Production Routings for product GTB is presented below. Using RCCR approach, find the Capacity

Requirements for 4 units of product GTB.

Work Centers Assembl y Processes A

Production Hours WC1 WC2 WC3 0.2

0.3 0.6

0.9

B

0.1

0.5

a. WC1: 1.2 hours WC2: 3.6 hours WC3: 5.6 hours b. WC1: 2.2 hours WC2: 3.1 hours WC3: 3.6 hours c. WC1: 1.2 hours WC2: 3.1 hours WC3: 1.2 hours d. WC1: 5.2 hours WC2: 1.2 hours WC3: 5.6 hours ANS: A

PTS: 1

13. Using RCOF and the information in the table below, find what the labor hour requirement for

product C is. The total load is 52 hours. Product Labor hours Units

A 3 10

B 1 5

a. 3 units

c. 1 units

b. 5 units

d. 9 units

ANS: A

C ? 6

PTS: 1

14. Using RCOF and the information in the table below, find the labor hour requirement for Work center 1. The following is the distribution of the load across the WCs:

WC1 (25%), Product Labor hours Units

WC2 (55%),

A 3 10

B 1 5

a. 42.35 hours

c. 15.4 hours

b. 38.85 hours

d. 19.25 hours

ANS: D

WC3 (20%). C 7 6

PTS: 1

15. Choose the statements that differentiate the Resource Profile Method (RPM) from other alternative RCCP approaches. (1). It is easier to perform (2). It has longer time buckets (3). It includes a timing dimension (4). It only requires partial information a. (1)

c. (3)

b. (2) and (3) ANS: C

d. (2) and (4) PTS: 1

16. Which of the following is a correct description of Capacity requirements planning (CRP)? a. Process of converting the master production schedule into requirements for key resources b. Process of reconciling the difference between available capacity and load c. Create long term capacity plans synced with business plans d. Monitors work-center capacity imbalances ANS: B

PTS: 1

17. Choose, among the following options, the inputs for Capacity requirements planning (CRP). (1). Loading capacity (2). Rescheduling data from MPS (3). Routing data

(4). Planned and released order from MRP systems a. (1)

c. (1), (3) and (4)

b. (2) and (3)

d. (4)

ANS: C

PTS: 1

18. Of the following solutions for overloaded work centers, which is the least effective solution? a. Backordering

c. Increasing the efficiency of the operation

b. Subcontracting

d. Rerouting work to another work center

ANS: A

PTS: 1

19. Product gamma requires a sequence of 5 Work centers. What is the capacity efficiency when the total out output is 2000 units per period? The following is the period production volume for each WC.

WC1: 2500 units, WC2: 2250 units, WC3:3100 units, WC4:2500 units, WC5:2150 units a. 87.54%

c. 93.02%

b. 64.51%

d. 107.50%

ANS: C

PTS: 1

20. There are 3 work stations (WC) with the following capacity: WC1 (2,000 units), WC2 (2,500 units), and WC3 (1,500 units). While the load could be shifted from WC1 to WC2 and also in the opposite direction, WC3's load cannot be shifted to other WCs as a result of specialized equipment. In the following load situation, what is not a good solution?

WC1: 1500 units, WC2: 2250 units, WC3: 3100 units a. Subcontracting

c. Pushing work back

b. Increasing the efficiency of the operation

d. Rerouting work to another work center

ANS: D

PTS: 1

SHORT ANSWER 1. Define, in your words, capacity planning and control. ANS: Read about capacity planning and control PTS: 1 2. Describe the activities and scope of Long-Range Capacity Planning. ANS: Read about capacity planning horizons PTS: 1 3. AMT Transportations operates 2 shifts per day with 25 drivers working during each shift. When each shift is 8 hours, what is the design capacity for a day? ANS: 400 driver hours per day PTS: 1 4. Write the equation for Rated capacity. ANS: design capacity*effective capacity utilization*capacity efficiency PTS: 1 5. Name the process of converting the master production schedule into requirements for key resources, including labor, machinery, warehouse capacity, suppliers’ capabilities, and many other transformations.

ANS: Rough-Cut Capacity Planning (RCCP) PTS: 1 6. Dave is conducting Rough-Cut Capacity Planning (RCCP) for a product ATOR. The product ATOR' BOM has 2 levels. The assembly is at level 1. At level 2, there are component A, B and C. The

Production Routings for product GTB is presented below. Using RCCR approach, find whether Work center 2 has enough capacity to produce 104 units of product ATOR. Work center 2's assigned capacity is 1,100 hours. Work Centers Assembly A B C

Processes

Product Labor hours

Production Hours WC2 3 6 0 3.6

WC1 0.26 0 0.13 0 A 3

B 1

WC3 0.9 0.5 2

C 7

ANS: No, the required hours is 1310.4 which exceeds capacity PTS: 1 7. Using RCOF and the information in the tables below, find the labor hour requirement for Work center 2 during period 2. The following is the distribution of the load across the WCs: WC1(25%), WC2(55%),WC3(20%).

Products Units

A

B

C

1

10

5

6

2

4

4

3

Periods

ANS: 20.35 hours PTS: 1

8. Product gamma requires a sequence of 3 Work centers. The total output is 4000 units per period. What is the bottleneck? Explain whether the situation is plausible given the information. The following is the period production volume for each WC. WC1: 3500 units, WC2: 5250 units, WC3: 4100 units ANS: WC1 and implausible given the bottleneck has lower volume than the total output PTS: 1 9. What is the planning horizon of the Capacity requirements planning (CRP)? ANS: Medium-range capacity planning PTS: 1 10. The effective capacity of the Jack Furniture Company is 15 Sofas per hour. However, it actually produces only 13 computers per hour. Calculate the efficiency of the Jack Furniture Company. ANS: 86.67% PTS: 1...