Deck 7: Capacity and Facilities Design

Question 1

Facility location is often overlooked because it is not an important aspect of a firm's strategic plan.

Answer 1

False

Question 2

Which type of facility is large and expensive?

A) light-industry facilities
B) retail and service facilities
C) heavy-manufacturing facilities
D) medium-site facilities

Answer 2

heavy-manufacturing facilities

Question 3

One of the reasons that foreign firms locate the facilities in North America is to reduce their supply chain costs.

Answer 3

True

Question 4

Which of the following is a not a major criterion for a manufacturing facility?

A) nature of the labour force and labour costs
B) access to end consumers
C) distribution and transportation costs
D) government regulations and taxes

Question 5

Common location incentives include all of the following except

A) tax credits
B) job training
C) fixed exchange rates
D) improvements to infrastructure

Question 6

A location's collection of physical support systems is known as its infrastructure.

Question 7

The centre of gravity technique outlines a method for identifying and weighing important location factors.

Question 8

Which of the following is not a facility location factor important in selecting a country?

A) government stability
B) export and import tariffs
C) customer service
D) culture

Question 9

The load-distance technique evaluates the different locations based on the load and transport distance.

Question 10

A brewery is an example of

A) heavy manufacturing
B) light
C) retail facilities
D) none the above

Question 11

Service operations tend to make location decisions more frequently than manufacturing facilities.

Question 12

The factors used to evaluate location of a manufacturing plant are usually different from the factors used in locating a service facility.

Question 13

Transportation costs are generally a function of distance, weight, and time.

Question 14

Railroad access is frequently a factor in locating a manufacturing plant.

Question 15

For a service operation to be in the right place, it usually means being in a location that is convenient and easily accessible.

Question 16

Inadequate infrastructure, at a given location, increases the supply chain costs and decreases the customer service.

Question 17

A service facility is usually the largest and most expensive type of facility.

Question 18

Which of the following is a type of facility addressed by the facility location decision?

A) heavy manufacturing
B) light industry
C) retail and service facilities
D) all the above

Question 19

The cost and availability of labour is an important factor in a location decision.

Question 20

Which of the following is not a primary factor in location decisions for manufacturing plants?

A) proximity to raw materials
B) proximity to customers
C) proximity to different modes of transportation
D) proximity to significant labour pools

Question 21

Capacity can be increased in one large step or incrementally.

Question 22

Explain the general characteristics of process, product, and fixed-position facility layouts.

Question 23

A package delivery service wants to build a new distribution centre in Calgary, Alberta. The location of the centre needs to be in the vicinity of Deerfoot Trail, Highway 22 and the Calgary Airport. The following table provides the coordinates of these three sites and the number of weekly packages. Deerfoot Trail Highway 22 Airport
X = 20 x = 26 x = 36
Y = 35 y = 13 y = 19
W = 16,000 W = 11,000 W = 8,000
The suggested coordinates for the new warehouse using the centre of gravity method are

A) x = 36.0 and y = 35.0
B) x = 27.3 and y = 22.3
C) x = 25.54 and y =24.4
D) x = 27.5 and y = 35.5

Question 24

. When selecting the part of the country and community for a facility, which of the following factors are considered?

A) local business regulations
B) environmental regulations
C) climate
D) all of the above

Question 25

Discuss the location incentives as factors to be considered when selecting a site.

Question 26

Describe the general considerations for service layouts.

Question 27

A technique based on transport weight and distance used for locating a facility at the centre of movement in a geographic area is known as the

A) load-distance technique
B) centre of gravity technique
C) location factor rating
D) location factor technique

Question 28

. A company is deciding where to locate a new warehouse that will receive shipments from three suppliers: 1, 2, and 3. The supplier locations (x_i, y_i) and the annual number of shipments from supplier i (W_i) are provided below: 1 2 3
X₁ = 250 x₂= 100 x₃= 500
Y₁ = 250 y₂= 400 y₃= 300
W₁ = 240 W₂=205 W₃= 300
The coordinates for the new warehouse suggested by the centre of gravity method are

A) x = 311.4 and y = 309.4
B) x = 309.4 and y = 311.4
C) x = 291.2 and y =198.9
D) x = 193.2 and y = 219.4

Question 29

A method of identifying and weighting the important location factors is known as the

A) load-distance technique
B) centre of gravity technique
C) location factor rating technique
D) location factor technique

Question 30

Indicate the benefits of effective facility layout.

Question 31

Facility layout refers to the arrangement of machines, processes, departments, and other areas within a facility.

Question 32

Discuss long-term capacity planning strategies.

Question 33

Increasing capacity utilization beyond the best operating level results in diseconomies of scale.

Question 34

Explain the major categories of facilities and the important factors in facility location identification.

Question 35

The best operating level is the percent of capital cushion that minimizes unit cost.

Question 36

The capacity cushion for a facility equals one minus utilization.

Question 37

Use block diagramming and relationship diagramming to design process layouts.

Question 38

Describe three types of hybrid layouts, including cellular layouts, flexible manufacturing systems, and mixed-model assembly lines.

Question 39

For a given facility the best operating level equals the percent of capacity use that minimizes average unit cost.

Question 40

Design a simple product layout for efficiency (balance a basic assembly line).

Question 41

Block diagramming is a design tool for process layouts that takes into account the number of adjacent and non-adjacent moves.

Question 42

A process layout arranges activities sequentially.

Question 43

Material storage and movement are directly affected by facility layout decisions.

Question 44

Minimizing material handling cost is an important objective for a process layout.

Question 45

The major layout concern for a process layout is where to locate departments or functional areas relative to each other.

Question 46

An important advantage of a process layout over a product layout is efficiency.

Question 47

The major advantage of a process layout over a product layout is efficiency.

Question 48

Product layouts are sometimes referred to as functional layouts.

Question 49

Equipment utilization is typically very high in processes with a fixed-position layout.

Question 50

The basic objective of the facility layout decision is to ensure a smooth flow of inventory through the system.

Question 51

General as opposed to specific purpose equipment is typically found in a process layout.

Question 52

A schematic diagram using weighted lines to denote location preference is called a relationship diagram.

Question 53

Fixed-position layouts are used for projects when the product cannot be moved.

Question 54

The majority of service facilities utilize process layouts.

Question 55

Shipbuilding is an example of production system requiring a process layout.

Question 56

A relationship diagram provides a standard format for displaying manager preferences for department locations.

Question 57

Line balancing strives to minimize bottlenecks in a process layout.

Question 58

A process layout groups similar activities together according to the functions they perform.

Question 59

Most service facilities utilize fixed-position layouts.

Question 60

Product layouts have a higher degree of flexibility than process layouts.

Question 61

The line-balancing procedure uses heuristics to specify which work elements are allocated to each workstation.

Question 62

The balance delay is calculated by subtracting efficiency in percent from one hundred.

Question 63

Cellular layouts combine the flexibility of process layouts with the efficiency of product layouts.

Question 64

Similar activities are grouped together in departments or work centres according to the function with a ___ layout.

A) process
B) fixed-position
C) hybrid
D) none of the above

Question 65

Effective layouts have the objective of all of the following except

A) Facilitate communication and interaction between workers, between workers and their supervisors, and between workers and customers
B) Increase manufacturing cycle time and customer service time
C) Facilitate the entry, exit, and placement of material, products, and people
D) Promote product and service quality;the volume and certainty of anticipated demand

Question 66

How much to increase capacity depends on all of the following except

A) the volume and certainty of anticipated demand
B) strategic objectives in terms of growth, customer service, and competition
C) the costs of expansion and operation
D) the current size of the workforce

Question 67

Which of the following is not an objective of effective layouts?

A) reduce material handling costs
B) increase the number of bottlenecks
C) eliminate waste and redundant activities
D) improve communication and interaction among workstations

Question 68

Which of the following is not a capacity expansion strategy?

A) capacity lead strategy
B) capacity lag strategy
C) capacity stability strategy
D) average capacity

Question 69

A mixed-model assembly line processes each model in large batch sizes.

Question 70

With a product layout the purpose of line balancing is to equalize the amount of work at each workstation.

Question 71

A flexible manufacturing system (FMS) combines flexibility with higher efficiency.

Question 72

The time to complete a task in a mixed-model assembly line can vary from model to model.

Question 73

Precedence requirements reflect physical restrictions on the order in which operations are performed in a product layout.

Question 74

Single model and mixed model assembly lines are similar in layout and operation.

Question 75

The cycle time refers to the maximum amount of time a product is allowed to spend at each workstation.

Question 76

Cellular layouts reduce transit time and increase set-up.

Question 77

The maximum amount of time a product spends at any workstation is known as the bottleneck time.

Question 78

Line balancing is constrained by precedence requirements and cycle time restrictions.

Question 79

The efficiency of a flexible manufacturing system (FMS) comes from reductions in setup and waiting times.

Question 80

Line balancing is a procedure that requires cycle time to be the same as flow time.