Bachelor of Science in Engineering Management: Operations and Supply Chain Flashcards
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A manufacturer's throughput is constrained by a single workstation processing 80 units/hour while all others process 120+ units/hour. According to the Theory of Constraints, the first corrective action should be to:
Answer: Exploit the constraint by maximizing its utilization
The Theory of Constraints (TOC) prescribes first exploiting (fully utilizing) the existing constraint before spending money to elevate it.
Master Production Scheduling (MPS) translates which of the following into specific production quantities and timing?
Answer: Aggregate production plans into end-item schedules
The MPS disaggregates the aggregate plan into specific end-item production quantities by period, driving MRP calculations.
Which inventory classification system segments items into categories A, B, and C based on their annual dollar usage to focus management attention?
Answer: ABC analysis
ABC analysis (Pareto classification) typically shows that ~20% of SKUs (A items) account for ~80% of annual dollar usage.
In Material Requirements Planning (MRP), 'gross requirements' for a component are determined by:
Answer: The planned order releases of its parent items
MRP explodes the parent's planned order releases through the bill of materials to compute gross requirements for each child component.
A supply chain's 'perfect order' metric typically measures the percentage of orders that are:
Answer: Delivered with no damage, on time, in full, and with correct documentation
The perfect order rate combines on-time delivery, complete order fill, damage-free shipment, and accurate invoicing into a single composite KPI.
Which lean tool uses a visual card system to authorize and limit the amount of work-in-process in a production system?
Answer: Kanban
Kanban cards serve as authorization signals that limit WIP and synchronize production to actual downstream consumption.
A company shifts from a single-sourcing strategy to dual-sourcing for a critical component. The primary trade-off is:
Answer: Lower unit cost versus reduced supply disruption risk
Dual sourcing typically increases unit cost (less volume discount per supplier) but significantly reduces supply disruption risk by eliminating single-source dependency.