Deck 6: Production Processes

Question 1

One difference between an assembly line process flow and a continuous process flow is that on the assembly line the flow is discrete rather than continuous.

Answer 1

True

Question 2

A continuous process indicates production of discrete parts moving from workstation to workstation at a controlled rate.

Answer 2

False

Question 3

The time needed to respond to a customer's order is called the customer response time.

Answer 3

False

Question 4

Break-even analysis can only be used in production equipment decision making when dealing solely with fixed costs, no variable costs.

Question 5

A general purpose machine is less capable than a special purpose machine in certain tasks but can perform a broader variety of tasks.

Question 6

The choice of which process structure to select is generally a function of the volume requirements for the product.

Question 7

The term "assembly line" refers to progressive assembly linked by some material handling device.

Question 8

Engineer-to-order firms will work with the customer to design the product, and then make it from purchased materials, parts, and components.

Question 9

Break-Even Analysis can be used to help decide whether to perform a task with a special purpose machine or with a general purpose machine.

Question 10

The closer the customer is to the customer order decoupling point the longer it takes the customer to receive the product.

Question 11

A project layout is characterized by a high degree of task ordering.

Question 12

Process selection refers to the strategic decision of choosing the volume of output to produce in a manufacturing facility depending upon the way that facility produces.

Question 13

Process selection refers to the strategic decision of selecting which kind of production processes to use to produce a product or provide a service.

Question 14

The product-process matrix shows the relationship between process structures and product volume and variety characteristics.

Question 15

One trade-off illustrated by the product-process matrix is between flexibility and cost.

Question 16

A project layout is characterized by a relatively low number of production units in comparison with process and product layout formats.

Question 17

One methodology used to evaluate equipment investment decisions where the investment entails a large initial investment, fixed costs, and variable costs is break-even analysis.

Question 18

Workcenter layouts allocate dissimilar machines into cells to work on products that have dissimilar processing requirements.

Question 19

A make-to-order firm will work with the customer to design the product, and then make it from purchased materials, parts, and components.

Question 20

The closer the customer is to the customer order decoupling point the more quickly the customer receives the product.

Question 21

Which of the following is a basic type of process structure?

A)Process flow diagram
B)Product matrix
C)Process matrix
D)Workcenter
E)Manual assembly

Question 22

Which of the following basic types of process structures is one which equipment or work processes are arranged according to the progressive steps by which the product is made?

A)Project
B)Workcenter
C)Manufacturing cell
D)Assembly line
E)Continuous process

Question 23

The placement of which of the following is not determined by process structure decisions?

A)Departments
B)Workgroups
C)Workstations
D)Machines
E)Emergency exits

Question 24

An example of an assemble-to-order firm is Dell Computer.

Question 25

You are hired as a consultant to decide if your client should purchase a new, highly specialized, piece of equipment.The product to be produced by this equipment is forecast to have a total worldwide demand of 15,000 units over the entire product life.The initial investment to acquire and install the equipment is $256,000.The variable cost to produce each unit will be $15 and the selling price for the finished product will be $30.Which of the following best describes the situation the firm is facing?

A)The company will recover its initial investment
B)The company's total margin will be less than its investment
C)It's a good investment
D)The break-even is lower than the 15,000 units that are expected to sell
E)All of the above

Question 26

Which of the following is not considered a major process flow structure?

A)Work Center
B)Project
C)Assembly line
D)Fabrication
E)Continuous Flow

Question 27

The essential issue in satisfying customers in the make-to-stock environment is to balance the cost of the finished item against the willingness of the consumer to pay for it.

Question 28

The focus in the make-to-stock environment is on providing finished goods where and when the customers want them.

Question 29

Assume a fixed cost for a process of $120,000.The variable cost to produce each unit of product is $35, and the selling price for the finished product is $50.Which of the following is the number of units that has to be produced and sold to break-even?

A)5,000 units
B)6,000 units
C)8,000 units
D)11,000 units
E)12,000 units

Question 30

Differentiate between a workcenter and a manufacturing cell.

Question 31

Assembling-to-order means moving the customer order decoupling point from finished goods to components.

Question 32

A difference between project and continuous flow categories of process flow structures is which two of the following?

A)The size of the product
B)Discrete parts moving from workstation to workstation
C)Degree of equipment specialization
D)Being a "Virtual Factory"
E)Profit per unit

Question 33

Which of the following basic types of process structures is one which similar equipment or functions are grouped together?

A)Project
B)Workcenter
C)Manufacturing cell
D)Assembly line
E)Continuous process

Question 34

Assume a fixed cost for a process of $15,000.The variable cost to produce each unit of product is $10 and the selling price for the finished product is $25.Which of the following is the number of units that has to be produced and sold to break-even?

A)500 units
B)667 units
C)790 units
D)900 units
E)1,000 units

Question 35

Give an example of a project layout.

Question 36

In a workcenter, machine A has a ten minute set-up time per batch and a two minute per unit run time. Machine B performs the identical function but has a set-up time of thirty minutes and a one minute run time per unit.The workcenter makes products in batches ranging from one unit to one hundred units.Assuming capacity is not a limitation on either machine, on which batches should machine B be used?

A)All batches should be run on machine B
B)Batches of more than 20 units should be run on machine B
C)Batches of fewer than 80 units should be run on machine B
D)Batches with up to 50 units should be run on machine B
E)No batches should be run on machine B

Question 37

Describe the implications of the product-process matrix for process design in a competitive situation.

Question 38

The essential issue in satisfying customers in the make-to-stock environment is to balance the level of finished inventory against the level of service to the customer.

Question 39

Assume a fixed cost for a process of $100,000.The variable cost to produce each unit of product is $10, and the selling price for the finished product is $50.Ignoring inventory, how many units must the firm sell to break-even?

Question 40

Which of the following is not a basic type of process structure?

A)Product-process matrix
B)Workcenter
C)Manufacturing cell
D)Assembly line
E)Continuous process

Question 41

Assume that you are offered a new piece of equipment for $10,000.The equipment will produce 10,000 units per year with a margin of $6.00 per unit.Demand for the product being produced has been 2,000 units per year.Your current equipment is fully depreciated and can produce the 2,000 units per year at but at a margin of only $4.00 per unit.Should you purchase the new equipment? Under what conditions?

Question 42

Assume a fixed cost for a process of $100,000.The variable cost to produce each unit of product is $10, and the selling price for the finished product is $50.Ignoring inventory, how many units must the firm sell to break-even?

Question 43

Describe the implications of the product-process matrix for process design in a competitive situation.

Question 44

A manufacturer has identified the options for acquiring a machined part.It can make the part on a numerically controlled lathe for $150 per unit (including materials.) It can make the part on a standard lathe for $250 per unit (also including materials.) It can make the part on a machining center for $50 per unit (also including materials.) The manufacturer can acquire a standard lathe for $10,000.It could acquire

Question 45

Assume that you are offered a new piece of equipment for $10,000.The equipment will produce 10,000 units per year with a margin of $6.00 per unit.Demand for the product being produced has been 2,000 units per year.Your current equipment is fully depreciated and can produce the 2,000 units per year at but at a margin of only $4.00 per unit.Should you purchase the new equipment? Under what conditions?

Question 46

A manufacturer has identified the options for acquiring a machined part.It can make the part on a numerically controlled lathe for $150 per unit (including materials.) It can make the part on a standard lathe for $250 per unit (also including materials.) It can make the part on a machining center for $50 per unit (also including materials.) The manufacturer can acquire a standard lathe for $10,000.It could acquire a numerically controlled lathe for $100,000.A machining center would cost $350,000.It has also found that it can purchase the part for $350 per unit.