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Production Process Inventory and Cycle Time Quiz

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Production Process Inventory and Cycle Time Quiz

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Questions and Answers

What is the formula for calculating throughput rate?

Throughput = Time × Inventory

Throughput = Time - Inventory

Throughput = Inventory / Time (correct)

Throughput = Time / Inventory

Which stage of the production process does Move Time refer to?

Inspection

Sub-assembly movement (correct)

Raw material sourcing

Assembly

Why is it important for company managers to identify backlogs, bottlenecks, or slowdowns?

To decrease move time

To increase queue time

To reduce inspection time

To improve efficiency and increase ROI (correct)

Which category of throughput time covers the steps from raw material to assembly and finished product?

Processing Time Signup and view all the answers

In the context of throughput accounting, what does 'I' stand for in the formula mentioned?

Inventory Signup and view all the answers

What factor can help increase return on investment (ROI) and profitability in a production process?

Quicker throughput times Signup and view all the answers

What does Inspection Time mainly involve?

Visual quality testing Signup and view all the answers

'Queue Time' increases depending on what aspect of the production process?

Complexity of the production process Signup and view all the answers

'Move Time' in a production process is primarily influenced by what factor?

<h1>of workstations for moving sub-assemblies</h1> Signup and view all the answers

How does identifying backlogs, bottlenecks, or slowdowns affect company efficiency?

Increases efficiency and improves ROI Signup and view all the answers