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QUESTION 16 To increase the capacity of a process, Little’s Law tells us that we

ID: 385336 • Letter: Q

Question

QUESTION 16

To increase the capacity of a process, Little’s Law tells us that we need to increase the average work-in-process inventory.

True

False

QUESTION 17

Adding more workers to any step in the process can definitely increase the capacity of the process.

True

False

QUESTION 18

Consider a 4-step process with all the steps in a series. Steps 1 and 3 take 6 min/unit and steps 2 and 4 take 7 min per unit. When this process is producing at capacity, the maximum amount of time each step will work on a unit will be the cycle time, which is 6 min.

True

False

QUESTION 19

The order winning criterion in a standard shop is cost and in a custom shop, it is flexibility.

True

False

Explanation / Answer

Answer to question 16 :

Little’s law states that :

Flow rate of a process x Throughput time of a process = Work in process inventory of the process

It des not state that by increasing work in process inventory , capacity of a process can be increased

ANSWER : FALSE

Answer to question 17 :

If number of workers to be added , it always have to be added at the “Bottleneck” step which can reduce cycle time of the bottleneck process and hence can increase capacity of the bottleneck process. Since process capacity is always same as capacity of bottleneck step, increasing workers at bottleneck step and increases the process capacity.

However, increasing number of workers in a non bottleneck process will not alter the bottleneck step and its capacity. Thus capacity of the whole process will remain unchanged.

ADDING MORE WORKERS TO ANY STEP IN THE PROCESS CAN DEFINITELY INCREASE THR CAPACITY OF THE PROCESS : FALSE

Answer to question 18 :

The bottleneck step is the one which takes maximum possible time to produce one unit. Bottleneck steps are steps 2 and 4 with each having cycle time of 7 minutes. Since cycle time of a bottleneck step is same as cycle time of the process. Thus process cycle time is “ 7 minutes” . Thus maximum possible time each step will work on a unit will be its cycle time of 7 minutes ( and not 6 minutes as stated in the problem)

ANSWER : FALSE

Answer to Q.19:

The efficiency of a custom built shop will be known by the variety of times the hop can produce since flexibility is the key to a typical Custom shop.

Similarly a standard shop is designed to produce repeatedly items of same design(s). Since it produces same items again and again , requirement for changeover is not there and key is indeed how we can minimize production time and thus correspondingly its costs.

THE ORDER WINNING CRITERION IN A STANDRAD SHOP IS COST AND IN A CUSTOMS SHOP IS FLEXIBILITY : TRUE

ANSWER : FALSE

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