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If capacity is expensive and inventory is cheap, a good reason to hold inventory

ID: 379117 • Letter: I

Question

If capacity is expensive and inventory is cheap, a good reason to hold inventory is to level load capacity by using inventory as a buffer between demand variability and capacity utilization:

True

False

In the hierarchical pull planning framework reviewed in class, reorder point and reorder quantity inventory policies should be applied as a long-term strategy planning tool instead of at a tactical policy and control level:                                                                                                                   

True

False

Which of the following ties directly to the balance sheet:

Inventory

# of kaizen events

# of six sigma projects

If a key strategic goal is customer service, which is the better focus for goals:

99% utilization and earned hours

High on-time delivery and low average days late

The magic of pull comes from:                                                                                             

The WIP Cap

Kaizen events

5S

In a CONWIP shop floor control system, what happens to cycle time if throughput drops below its planned target/quota:                                                                                                             

Cycle time goes up

Cycle time goes down

Cycle time stays the same

In an assembly operation with 3 components whose individual service level to the assembly line is 90%, the overall service assuming no issues in assembly itself will be:

90%                                                                                                                            

81%

72%

The goal of a planner should be:                                                                                           

Developing perfect schedule based on heuristics

Delivering parts on-time to market need with minimal inventory and capacity cost

inflexibility

The end finished good product item in a bill of materials experiences:

Independent demand

Dependent demand

A child item in a bill of material experiences:

Independent demand

Dependent demand

In the hierarchical pull planning framework reviewed in class, where should you determine your portfolio of buffers:                                                                                                               

Strategy

Tactics/Policies

Control

Process batches must equal move batches:                                                                           

True

False

In the Rosemount Case, Throughput was 133 units per day. What WIP level would deliver a 5 day cycle time:                                                                                                                                       

399

665

133

In the Rosemount Case, the team made arrivals to the flow lab less variable and reduced cycle time by:                                                                                                                                               

Moving meters to the flow lab more than once a day

Grouping the meters into batches by size

Reducing mean time to repair

Which of the following is true --- circle the true answers:                                                    

Scheduling is hard because of variability and complexity

Scheduling can be simplified with due date quoting

Scheduling can be simplified with sequencing in a virtual queue

As a student with knowledge of the Factory Physics Framework, I would do the following to reduce cycle time:                                                                                                                             

A Six Sigma Project

Reduce WIP

Implement advanced scheduling in an ERP planning program

In the Factory Physics Framework, the three buffers are:                                                     

Lean, Six Sigma, and ERP

Lean Six Sigma, Theory of Constraints, and Kaizens

Inventory, Time, and Capacity

What is being “buffered” in the Factory Physics Framework :                                             

Six Sigma

Business Process Reengineering

Variability

  

Explanation / Answer

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