OPERATIONS MANAGEMENT FUNDAMENTALS - Basic Tools and Concepts in Operations Management - Optimizing Labor Resources

8 important questions on OPERATIONS MANAGEMENT FUNDAMENTALS - Basic Tools and Concepts in Operations Management - Optimizing Labor Resources

What is the formula of utilization?

Utilization = Flow Rate / Capacity

How do we increase flow rate?

By eliminating bottlenecks in the system

True or False. Process Capacity is the maximum output rate of a process.

True
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True or False. Total process capacity is defined by the weakest link, i.e. The step with the lowest capacity or the "bottleneck."

True

True or False. Capacity isn't capacity if it is locked up and can't be utilized.

True

True or False. We can increase labor costs without decreasing the flow rate by consolidating tasks.

False. We can decrease cost by consolidating.

How do we achieve a balanced line?

By equalizing the service times for the different process steps.

True or False. Once we achieve a balanced line, we can scale up by replicating the line.

True

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