Deck 7: Manufacturing Processes

Question 1

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

Answer 1

True

Question 2

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

Answer 2

True

Question 3

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.

Answer 3

True

Question 4

Items produced in a project layout are typically managed using project management techniques.

Question 5

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

Question 6

Assembly lines are a special case of a project layout.

Question 7

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

Question 8

Once a choice of position on the product-process matrix is selected change is impossible.

Question 9

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 10

Workcenter layouts allocate the same or similar machines into cells to work on products that have dissimilar shapes and dissimilar processing requirements.

Question 11

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

Question 12

Break-even analysis can only be used in production equipment decision making and deals solely with fixed costs,not variable costs.

Question 13

The most common production management tools used in planning and designing the process flow are assembly drawings,assembly charts,route sheets and flow process charts.

Question 14

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

Question 15

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 16

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 17

A project layout is characterized by a relatively low number of production units.

Question 18

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

Question 19

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 20

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

Question 21

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 world wide 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 22

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 23

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 24

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 25

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 26

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 27

A graphic used in process flow design depicting an exploded view of a product and its component parts is which of the following?

A)Route sheet
B)Gantt chart
C)Assembly drawing
D)Simo chart
E)Packing list

Question 28

Give an example of a project layout?

Question 29

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

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

Question 30

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 31

A process flowchart uses the information presented in the assembly drawing and defines how parts go together and their order of assembly.

Question 32

The formats by which a facility is arranged are defined by the general pattern of work flow.

Question 33

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?

Question 34

The major difference between the project and the assembly line categories of process flow structures is which of the following?

A)The size of the product
B)Discrete parts moving from workstation to workstation
C)Highly specialized equipment
D)Being a Virtual Factory
E)The product's volume and standardization

Question 35

What is sometimes humorously referred to as a "gozinto chart"?

A)Assembly drawing
B)Assembly chart
C)Process flowchart
D)Operation and route sheet
E)Organization charts

Question 36

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.Under what conditions should you purchase the new equipment?

Question 37

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 38

The most common production management tools used in planning and designing the process flow are assembly drawings,assembly charts,route sheets and product prototypes.

Question 39

In analysis using a process flowchart of a manufacturing operation,the emphasis is usually on identification of activities that can be minimized or eliminated.

Question 40

In a factory,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 factory 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 41

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

Question 42

Differentiate between a workcenter and a manufacturing cell?