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1. To increase the capacity of a process, Little’s Law tells us that we need to increase the average work-in-process inventory.

True

False

2. Adding more workers to any step in the process can definitely increase the capacity of the process.

True

False

3. Consider a 4-step process with all the steps in a series. Steps 1 and 3 take 6 min/unit and steps 2 and 4 take 7 min per unit. When this process is producing at capacity, the maximum amount of time each step will work on a unit will be the cycle time, which is 6 min.

True

False

4. The order winning criterion in a standard shop is cost and in a custom shop, it is flexibility.

True

False

Operation Management, Management Studies

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