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Free IIA IIA-CIA-Part3 Exam Questions (page: 28)

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In a theory of constraints (TOC) analysis, the bottleneck operation (the constraint) corresponds to which part of the drum-buffer-rope model?

  1. Drum.
  2. Buffer.
  3. Rope.
  4. No part of TOC analysis corresponds to the drum-buffer-rope model.

Answer(s): B

Explanation:

Production flow through a constraint is managed using the drum-buffer-rope (DBR) system. The drum (i.e., the beat to which a production process marches) is the bottleneck operation. The constraint sets the pace for the entire process. The buffer is a minimal amount of work-in-process input to the drum that is maintained to ensure that it is always in operation. The rope is the sequence of activities preceding and including the bottleneck operation that must be coordinated to avoid inventory buildup.



The process model used in a theory of constraints (TOC) analysis is called:

  1. Just-in-time.
  2. Drum-buffer-rope.
  3. Materials requirements planning.
  4. Lean production.

Answer(s): B

Explanation:

Production flow through a constraint is managed using the drum-buffer-rope (DBR) system. The drum (i.e.. the beat to which a production process marches) is the bottleneck operation. The constraint sets the pace for the entire process. The buffer is a minimal amount of work-in-process input to the drum that is maintained to ensure that it is always in operation. The rope is the sequence of activities preceding and including the bottleneck operation that must be coordinated to avoid inventory buildup.



The following steps make up the stages of a theory of constraints (TOC) analysis.

I). Determine the most profitable product mix given the constraint.
II). Increase capacity at the constraint.
Ill). Identify the constraint.
IV). Redesign the manufacturing process.
V). Maximize the flow through the constraint.

If executed in the correct order, the sequence is

  1. III). I, II). V, IV
  2. III). II, I). V, IV
  3. III). II, I). IV, V
  4. III). I, V, II, IV

Answer(s): D

Explanation:

The steps in a TOC analysis are (1) identify the constraint. (2) determine the most profitable product mix given the constraint, (3) maximize the flow through the constraint, (4) increase capacity at the constraint, and (5) redesign the manufacturing process for greater flexibility and speed.



A manufacturer can sell its single product for US $660. Below are the cost data for the product:
Direct materials US$170
Direct labor 225
Manufacturing overhead 90
The relevant margin amount when beginning a theory of constraints (TOC) analysis is:

  1. US$490
  2. US$345
  3. US$265
  4. US$175

Answer(s): A

Explanation:

A theory of constraints (TOC) analysis proceeds from the assumption that only direct materials costs are truly variable in the short run. This is called throughput, or super variable, costing. The relevant margin amount is throughput margin, which equals price minus direct materials. Thus, the relevant margin amount for this manufacturer is US $490 (US $660-US $170).



Below are data concerning the hours spent by a manufacturer's two products in its two processes.


The constraint is:

  1. Product
  2. Product B in Assembly.
  3. The assembly activity.
  4. Cannot be determined from the information given.

Answer(s): C

Explanation:

In theory of constraints (TOC) analysis, the constraint (bottleneck) operation is the slowest part of the process. It can usually be identified as the one where work-in-process backs up the most of this manufacturer's two operations, the one that requires the most total time is assembly.



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