1.

Production runs can be scheduled in

A. only one shift
B. always two shifts
C. one or two shifts
D. up to three shifts
Up to twice the production line's First Shift Capacity can be scheduled for each individual product.
Production runs that exceed the First Shift Capacity result in either Overtime and/or a Second Shift,
depending on the Worker Complement.

2. Hiring the Needed Complement will always eliminate

A. Overtime
B. worker layoffs
C. a Second Shift
D. strikes
Hiring the Needed Complement eliminates all Overtime. The Second Shift workers are paid the same
as workers on Overtime, however, Second Shift workers are more efficient and do not seek work
elsewhere, therefore reducing turnover.

3. Management should strive to

A. increase Turnover
B. decrease Turnover
Lowering Turnover reduces Recruitment costs.

4. Increasing Capacity tends to

A. reduce the Needed Complement
B. reduce the number of workers on Second Shift
C. reduce Overtime
Increasing Capacity tends to reduce the number of workers on the Second Shift. As an example, a
production order of 1,200 units on a line with a Capacity of 800 units (numbers in thousands) will
require 400 units to be produced by the Second Shift. Increasing Capacity to a total of 1,000 units will
result in 1,000 units manufactured by First Shift labor, and only 200 units produced by more expensive
Second Shift labor.

5. Increasing Training Hours tends to

A. increase the Needed Complement
B. decrease the Needed Complement
C. neither increase nor decrease the Needed Complement
D. both increase and decrease the Needed Complement
In the short term, increasing Training Hours will increase the Needed Complement-- Workers are taken
off the production line and put in the classroom. However, as time goes on, investing in Training Hours
increases worker productivity, and therefore tends to decreases the Needed Complement.

6. Recruiting Costs are incurred when

A. Automation levels increase
B. Production runs increase and teams match hiring to Needed Complement
C. workers are assigned to a Second Shift
Increasing production and then matching the Needed Complement will result in new hires, and
therefore increase Recruiting Costs.

7. Assuming the Productivity Index is greater than 100%, adding Overtime will
A. increase the Productivity Index
B. decrease the Productivity Index
While the Productivity Index can never fall below 100%, it is possible for teams to increase the Index
by investing in a higher quality of worker (Recruiting Spend) and in education (Training Hours).
However, scheduling Overtime will decrease the Index because workers will become tired and
disgruntled.

8. Worker training is entered by the

A. Hour
B. Dollar
Hours are entered on the HR Screen. Training costs $20.00 per hour per worker.

9. Teams can eliminate all Recruiting Costs if they wish

A. True
B. False
Teams can choose to enter 0 in the Recruiting Spend cell on the Human Resources screen, however that
number is in addition to a base Recruiting Cost of $1,000 per worker. A Recruiting Spend entry
facilitates recruiting a better quality of worker.

10. Generally, Separation Costs will be incurred when

A. Production levels increase
 B. Automation Levels increase
C. Production Levels decrease
D. Production levels decrease and / or Automation levels increase
The Needed Complement is determined by a combination of: a) the number of units ordered into
production; and b) the Automation level of the assembly lines. Decreasing the number of units produced
from one year to the next will decrease the Needed Complement. Similarly, increases in Automation
will decrease the Needed Complement. If teams adjust the This Year cell to match the Needed
Complement, Separation Costs will be incurred.