Question

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Economies of scale mean that as production rises, so does the incremental cost for each item produced. A. True B. False The time it takes for a job to move through the production system, excluding any wait time, is called takt time True False Little's law defines the inventory level as being equal to the throughput rate times the flow time. A. True B. False The fact that a customer participates in services is a very important difference between manufacturing and services. A. True B. False

Answer 1

1. False

(Economies of scale is where the increase in production decreases the per unit cost.)

2. False

(Takt time is the time taken to complete the production process based on the customer's demand. The time taken for a job in the production process is the cycle time.)

3. True

(Little's law formula is L=A*W where L is the number of items in the queuing system, A is the arrival and departure rate of items known as throughput and W is the average time spent by an item or flow time.)

4. True

(Example, in service patients waiting at a health clinic, can be considered inventory, hence the participation of customer is involved in service and not in manufacturing.