Deck 6: Manufacturing and Service Processes

Question 1

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

Answer 1

True
Explanation: In a project layout,a high degree of task ordering is common.

Question 2

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

Answer 2

True
Explanation: An assembly line is a layout design for the special purpose of building a product by going through a progressive set of steps.The assembly steps are done in areas referred to as "stations," and typically the stations are linked by some form of material handling device.

Question 3

The volume requirements for the product are one determinant of the choice of which process structure to select.

Answer 3

True
Explanation: Two dimensions (of the product/process matrix,exhibit 6.3)are shown.The first dimension relates to the volume of a particular product or group of standardized products.Standardization is shown on the vertical axis and refers to variations in the product that is produced.These variations are measured in terms of geometric differences,material differences,and so on.Standardized products are highly similar from a manufacturing processing point of view,whereas low standardized products require different processes.

Question 4

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

Question 5

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

Question 6

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 7

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

Question 8

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

Question 9

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

Question 10

One methodology used to evaluate equipment investment decisions where the investment entails an initial investment,fixed costs,and variable costs is Break-Even Analysis.

Question 11

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

Question 12

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

Question 13

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 14

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 15

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

Question 16

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

Question 17

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

Question 18

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

Question 19

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.

Question 20

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 21

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

Question 22

Little's law states that supply chain processes can be regarded as unrelated and thus treated and analyzed separately.

Question 23

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

Question 24

The assembly-line balancing procedure determines the precedence relationships of manufacturing tasks.

Question 25

In balancing an assembly line,workstation cycle time has to be less than the time between successive units coming off the end of the line.

Question 26

If the sum of the task times required to produce a product is 45 minutes and the cycle time for the same product is 10 minutes.Thus,the theoretical minimum number of workstations is 5 using the assembly-line balancing procedure.

Question 27

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

Question 28

The first step in balancing an assembly line is to specify the precedence relationships among tasks to be performed on the line.

Question 29

For the purposes of assembly-line balancing,the required workstation cycle time is found by dividing production time per day by the required units of output per day.

Question 30

If the sum of the task times required to produce a product is 80 minutes and the cycle time for the same product is 15 minutes,the theoretical minimum number of workstations is 8 using the assembly-line balancing procedure.

Question 31

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 32

In designing a production layout a flexible line layout might have the shape of a "U".

Question 33

A process map shows the physical location of the various processes within a supply chain.

Question 34

Little's law can be thought of as a relationship between units and time.

Question 35

The efficiency of an assembly-line is found by a ratio of the sum of all task times divided by the cycle time.

Question 36

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

Question 37

In assembly-line balancing the theoretical minimum number of workstations is found by a ratio of the sum of all task times divided by the cycle time.

Question 38

A high-level map or diagram of a supply chain process can be useful to understand how material flows and where inventory is held.

Question 39

Workstation cycle time is the time between successive units coming off the end of the assembly line.

Question 40

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 41

Using the assembly-line balancing procedure,which of the following is the required cycle time if the production time in minutes per day is 1440 and the required output per day in units is 2000?

A) 0.72
B) 1.388
C) 250
D) 500
E) Cannot be determined from the information above

Question 42

Using the assembly-line balancing procedure,which of the following is the theoretical minimum number of workstations if the task times for the six tasks that make up the job are 4,6,7,2,6,and 5 minutes,and the cycle time is 10 minutes?

A) 3
B) 5
C) 6
D) 8
E) None of the above

Question 43

In designing a production line mixed-model line balancing might be used by JIT manufacturers.

Question 44

Which of the following is not a step in developing a manufacturing cell layout?

A) Grouping parts into families that follow a common sequence of steps
B) Identifying dominant flow patterns of parts families as a basis for location of processes
C) Physically grouping machines and processes into cells
D) Disposing of left-over machinery and outsourcing ungrouped processes
E) None of the above

Question 45

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 46

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 47

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 is 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 48

When balancing an assembly line,which of the following is not a way to reduce the longest task time below the required workstation cycle time?

A) Upgrade the equipment
B) Assign a roaming helper to support the line
C) Split the task between two workstations
D) Speed up the assembly line transfer mechanism
E) Use a more skilled worker

Question 49

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

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

Question 50

You have just determined the actual number of workstations that will be used on an assembly line to be 6 using the assembly-line balancing procedure.The cycle time of the line is 5 minutes and the sum of all that tasks required on the line is 25 minutes.Which of the following is the correct value for the resulting line's efficiency?

A) 0.500
B) 0.833
C) 0.973
D) 0.990
E) None of the above

Question 51

You have just determined the actual number of workstations that will be used on an assembly line to be 8 using the assembly-line balancing procedure.The cycle time of the line is 10 minutes and the sum of all that tasks required on the line is 60 minutes.Which of the following is the correct value for the resulting line's efficiency?

A) 0.500
B) 0.650
C) 0.750
D) 0.850
E) None of the above

Question 52

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 53

Using the assembly-line balancing procedure,which of the following is the theoretical minimum number of workstations if the task times for the eight tasks that make up the job are 7,4,7,8,9,4,3 and 6 minutes,and the cycle time is 8 minutes?

A) 3
B) 5
C) 6
D) 8
E) None of the above

Question 54

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 55

The objective of mixed-model line balancing is to meet the demand for a variety of products and avoid building high inventories.

Question 56

Using the assembly-line balancing procedure,which of the following is the required cycle time in minutes per unit if the daily production time is 480 minutes and the required daily output is 50 units?

A) 0.104
B) 50
C) 9.6
D) 480
E) Cannot be determined from the information above

Question 57

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 58

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 59

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 60

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

A) The size and bulk 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 61

The formula (Inventory = Throughput rate × Flow time. )is known as what? ___________________

Question 62

According to Little's Law,which of the following ratios is used to find throughput rate?

A) Cycle time/Process time
B) Throughput time/Process velocity
C) Process velocity/Throughput time
D) Inventory/Flow time
E) Value added time/Process velocity

Question 63

Distinguish between a workcenter and a manufacturing cell.

Question 64

You have just determined the actual number of workstations that will be used on an assembly line to be 25 using the assembly-line balancing procedure.The cycle time of the line is 30 seconds and the sum of all that tasks required on the line is 10 minutes.What is the line's efficiency? ________________________________

Question 65

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

Question 66

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

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

Question 67

Give an example of a project layout.______________________

Question 68

Using the assembly-line balancing procedure,which of the following is the theoretical minimum number of workstations if the task times for the six tasks that make up the job are 7,4,7,5,3 and 6 minutes,and the cycle time is 8 minutes? ______________________________________

Question 69

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 70

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 71

According to Little's law,which of the following can be used to estimate work-in-process inventory?

A) Process time/Cycle time
B) Throughput rate times Flow time
C) Process velocity/Flow time
D) Set up time/Throughput rate
E) Value added time/Process velocity

Question 72

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 73

Using the assembly-line balancing procedure,what is the required cycle time if the production time in minutes per day is 2,400 and the required output per day in units is 1,200? _________________________________