Podcast
Questions and Answers
What should be considered when deciding between incremental expansion and single step expansion?
What should be considered when deciding between incremental expansion and single step expansion?
- Competitive pressure and market opportunities
- Only the cost of expansion
- Disruption of operations and training requirements
- All of the above, including costs and availability of funds (correct)
What is the primary goal of constraint management?
What is the primary goal of constraint management?
- To resolve all constraint issues at once
- To identify all possible constraints
- To achieve the maximum benefit despite the constraint (correct)
- To eliminate all constraints
According to the theory of constraints, what is the first step in resolving constraint issues?
According to the theory of constraints, what is the first step in resolving constraint issues?
- Change the operation to achieve the maximum benefit
- Eliminate all constraints at once
- Overcome the constraint by increasing resources
- Identify the most pressing constraint (correct)
What type of constraint occurs when there is insufficient demand for a product or service?
What type of constraint occurs when there is insufficient demand for a product or service?
Which of the following is NOT a category of constraint?
Which of the following is NOT a category of constraint?
What is the benefit of leading in expansion, despite the higher risk?
What is the benefit of leading in expansion, despite the higher risk?
Why might an organization prefer to outsource work to specialists?
Why might an organization prefer to outsource work to specialists?
What should be considered when evaluating the cost of buying or making an item?
What should be considered when evaluating the cost of buying or making an item?
What is a potential risk of buying goods or services from other companies?
What is a potential risk of buying goods or services from other companies?
Why might a firm choose to perform part of the work itself and outsource the rest?
Why might a firm choose to perform part of the work itself and outsource the rest?
What is a key factor to consider when deciding whether to buy or make an item?
What is a key factor to consider when deciding whether to buy or make an item?
What is a consequence of outsourcing if the products or services of other companies cause harm to customers or the environment?
What is a consequence of outsourcing if the products or services of other companies cause harm to customers or the environment?
What is the purpose of evaluating alternatives for future capacity?
What is the purpose of evaluating alternatives for future capacity?
What is a common approach to ranking investment proposals?
What is a common approach to ranking investment proposals?
What is cash flow in financial analysis?
What is cash flow in financial analysis?
What is the primary goal of identifying and addressing constraints?
What is the primary goal of identifying and addressing constraints?
What is present value in financial analysis?
What is present value in financial analysis?
What is a constraint in a process or system?
What is a constraint in a process or system?
What is the primary goal of bottleneck management?
What is the primary goal of bottleneck management?
What is the main advantage of the WAIT-AND-SEE strategy?
What is the main advantage of the WAIT-AND-SEE strategy?
What is a potential risk of the EXPAND-EARLY STRATEGY?
What is a potential risk of the EXPAND-EARLY STRATEGY?
Why is asset disposal important in capacity contraction?
Why is asset disposal important in capacity contraction?
What is a potential reason for capacity contraction?
What is a potential reason for capacity contraction?
What is the primary goal of capacity expansion strategies?
What is the primary goal of capacity expansion strategies?
What are the three most commonly used methods of financial analysis?
What are the three most commonly used methods of financial analysis?
What does flexibility in capacity decisions reduce dependence on?
What does flexibility in capacity decisions reduce dependence on?
What is a potential advantage of maintaining a capacity cushion?
What is a potential advantage of maintaining a capacity cushion?
What can provide capacity increases?
What can provide capacity increases?
Why do some organizations maintain a capacity cushion?
Why do some organizations maintain a capacity cushion?
What is a potential drawback of maintaining a capacity cushion?
What is a potential drawback of maintaining a capacity cushion?
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