Man3504 Test 2 Set 3

Front 1

is the capability of a manufacturing or service resource such as a facility, process, workstation, or piece of equipment to accomplish its purpose over a specified time period.

Back 1

capacity

Front 2

The resources available to the organization—facilities, equipment, and labor—how they are organized, and their efficiency as determined by

Back 2

specific work methods and procedures determine capacity.

Front 3

capacity can be viewed in what two ways?

Back 3

As the maximum rate of output per unit of time, or
As units of resource availability.

Front 4

Typical capacity issues to address include:

Back 4

long term and short term

Front 5

How large should facility, process, or equipment capacity be?

When should capacity changes take place?

Back 5

long term

Front 6

Can the facility, process, or equipment accommodate new goods and services and adapt to changing demand for existing goods and services?

Back 6

short term

Front 7

is an amount of capacity reserved for unanticipated events, such as demand surges, materials shortages, and equipment breakdowns.

Back 7

Safety capacity (often called the capacity cushion)

Front 8

are achieved when the average unit cost of a good or service decreases as the capacity and/or volume of throughput increases.

Back 8

economies of scale

Front 9

occur when the average unit cost of the good or service begins to increase as the capacity and/or volume of throughput increases.

Back 9

diseconomies of scale

Front 10

can be produced or delivered using the same resources available to the firm, but whose seasonal demand patterns are out of phase with each other.

Back 10

Complementary goods and services

Front 11

Works best for services that are:
Perishable.
In a market that can be segmented
Sold in advance
Has high fixed costs relative to variable costs.

Back 11

Revenue Management Systems(Also called Yield Management)

Front 12

Capacity is segmented (to correspond to market segments)
Different segments may be sold at different prices
Sell some portion at highest prices to those who can and will pay
Sell remainder at reduced prices to avoid having unused capacity

Back 12

revenue management

Front 13

accepting more reservations than capacity available, assuming that a certain percentage of customers will not show up or cancel prior to using the service.

Back 13

Overbooking

Front 14

is a set of principles that focuses on increasing total process throughput by maximizing the utilization of all bottleneck work activities and workstations.

Back 14

The Theory of Constraints (TOC)

Front 15

amount of money generated per time period through actual sales.

Back 15

throughput

Front 16

anything that limits an organization from moving toward or achieving its goal.

Back 16

constraint

Front 17

is associated with the capacity of a resource (e.g., machine, employee).

Back 17

a physical constraint

Front 18

is one that effectively limits capacity of the entire process.

Back 18

bottleneck work activity

Front 19

is one in which idle capacity exists.

Back 19

non bottle neck work activity

Front 20

is environmental or organizational (e.g., low product demand or an inefficient management policy or procedure).

Back 20

A nonphysical constraint