Sample questions for Chapter 7:
1. Work should be released into the system:
a. when a customer order is received.
b. when the first step in the process is idle.
c. when a customer order is completed.
d. when the bottlenecks need work.
Answer: d
2. The time required to change a machine from making one product or service to the
next is called:
a. takt time.
b. setup time.
c. queue time.
d. hold time.
Answer: b
3. Which of the following statements regarding setups is TRUE?
a. Unusually high setup times result in higher utilization.
b. Processes are generating output throughout the entire setup process.
c. A machine used in a line process would probably have fewer setups than a batch
process.
d. A TOC analyst would not be concerned with setup times on non-bottleneck
machines.
Answer: d
4. Which of the following is one of Dr. Eli Goldratt's rules of production scheduling for
optimized production technology?
a. Utilization and activation of a resource are not the same
b. Do not allow bottlenecks to govern the flow of the line
c. An hour lost at a bottleneck saves an hour for the entire system
d. Balance the capacities, not the flows
Answer:a
5. Which of the following is one of Dr. Eli Goldratt's rules of production scheduling for
optimized production technology?
a. Do not balance capacity, balance the flow
b. If you lose an hour at a bottleneck it is better than making scrap
c. Do not allow bottlenecks to govern the flow of the line
d. An hour saved at a bottleneck operation is a mirage
Answer:a
6. Which of the following is a “focusing step” of Dr. Eli Goldratt's theory of
constraints?
a. Reduce system constraints
b. Reinforce system constraints
c. Support system constraints
d. Identify system constraints
Answer: d
7. According to the theory of constraints which of the following is a financial
measurement that can be used to measure the firm's ability to make money?
a. Net profit
b. Throughput
c. Inventory
d. Sales
Answer: a
8. According to the theory of constraints which of the following can be a CCR?
a. Factory layout
b. Product design
c. An employee
d. Sales literature
Answer: a
9. Which of the following is an approach to dealing with a bottleneck?
a. Keep a buffer inventory in front of it to insure that it always has something to
work on
b. Don't worry about the bottleneck; it will take care of itself
c. Move things to a faster bottleneck
d. Pay an incentive bonus to workers on the bottleneck operation
Answer: a
10. What is a word indicating a resource whose capacity is less than the demand placed
on it? Answer: Bottleneck or Capacity Constrained Resource (CCR)
11. What is the rate at which money is generated by the system through sales called?
Answer: Throughput
12. According to Dr. Goldratt, what is the goal of the firm? Answer: To make money
13. Explain why balanced capacity does not work all the time.
14. Define the concepts of bottleneck, non-bottleneck, and capacity constrained resource.
15. How can we optimize the bottleneck time?
16. What are the differences between TOC and JIT?
17. What are the major principles of TOC?
18. Define the concepts throughput, inventory, and operating expense.