Question 1

A shipyard that builds large ocean liners and yachts likely employs which type of facility layout?

Accepted Answer

A fixed position layout is most appropriate for a shipyard that builds large ocean liners and yachts because the ships are too large to be moved easily and require workers and materials to be brought to them in a particular location. The ship remains in one fixed position while workers, machinery, and materials are brought to it.

Question 2

Phil is the owner of a small firm that manufactures customized oil-drilling equipment. The company's manufacturing facility is organized into a fabrication section, a heat treatment section, a welding section, and a quality control section. This type of plant layout is referred to as which type of layout?

Accepted Answer

The organization of the manufacturing facility into separate sections for different processes (fabrication, heat treatment, welding, and quality control) indicates that the company is using a process layout. In a process layout, similar processes are grouped together to improve efficiency and reduce the need for transportation of materials and products between different areas.

Question 3

Exxon is building a new oil refinery. It is evaluating three different locations, all of which are located next to ocean ports, where the majority of imported oil arrives from other countries. This relates to which consideration when selecting a new facility location?

Accepted Answer

Access to key resources, specifically easy access to imported oil through nearby ocean ports, is the relevant consideration in this scenario. The other options (design planning, proximity to major customers, and cost of construction and operation) do not align with the information provided.

Question 4

A clothing manufacturer built a new plant in Bangladesh because textile workers there are paid a fraction of what workers in Canada would be paid. This most relates to which consideration when selecting a new facility location?

Accepted Answer

The decision to build the new plant in Bangladesh based on the low labour cost indicates that availability and cost of labour was a key consideration in the selection of the new facility location.

Question 5

In 2016, Carrier Corp. announced it was eliminating 1400 jobs in the United States and moving production to a facility in Mexico. Employees in Mexico will earn approximately $23/hour less than top-paid employees in the United States. This is an example of which consideration when selecting a new facility location?

Accepted Answer

The decision to move production to Mexico was based on the availability and cost of labor, as the company was able to hire employees at a significantly lower wage than in the United States.

Question 6

A winery owns hundreds of acres of grape vineyards. The grape vines are tended and manually picked by a large staff of workers. Which of the following best describes the cost of this type of production setup?

Accepted Answer

The initial cost is low because the setup does not involve heavy machinery or automation, but the operating cost is high due to the need for a large staff to manually tend and pick the grapes.

Question 7

An aerospace company moved a plant to Nova Scotia partly because wages are lower there. This reflects which consideration when selecting a new facility location?

Accepted Answer

The decision to move to Nova Scotia due to lower wages reflects the consideration of the availability and cost of labour in selecting a new facility location.

Question 8

An electronics manufacturing plant has many enormous pieces of machinery. The main function of the factory employees is to set up new production runs, transport the finished products, and repair any breakages that occur. Which of the following best describes the cost of this type of production setup?

Accepted Answer

The statement mentions that the factory has many enormous pieces of machinery, which indicates a high initial cost. However, the main function of the employees is to set up new production runs, transport finished products, and repair any breakages, which suggests a low operating cost. Therefore, option C - high initial cost and low operating cost - best describes the cost of this production setup.

Question 9

A food company is seeing 30% annual growth in the European market. As a result, it decides to build its next facility there. This reflects which consideration when selecting a new facility location?

Accepted Answer

The fact that the company is experiencing 30% annual growth in the European market indicates that there is a significant customer base in the region. Therefore, proximity to major customers is likely a key consideration in selecting a new facility location. Availability and cost of labour, cost of construction and operation, and access to key resources may also be important factors, but are not directly indicated in the scenario.

Question 10

A large furniture manufacturer is building a new facility and has decided to purchase land next to its largest lumber supplier. This relates to which consideration when selecting a new facility location?

Accepted Answer

By purchasing land next to its largest lumber supplier, the furniture manufacturer ensures easy access to a key resource needed for its operations.

Question 11

GE Aviation is based in Mississauga, Ontario. Mississauga is ranked number1 as having low costs for facility leasing, access to transportation (rail and highway/interstates), and low property taxes. GE likely considered Mississauga for which two considerations when selecting a new facility location?

Accepted Answer

GE likely considered Mississauga for cost of construction and operation and access to key resources when selecting a new facility location because Mississauga is ranked number 1 as having low costs for facility leasing, access to transportation (rail and highway/interstates), and low property taxes.

Question 12

When different sequences of operations are required for creating small batches of different products, which type of facility layout is used?

Accepted Answer

The answer of When different sequences of operations are required...

Question 13

A product layout is often referred to as which of the following?

Accepted Answer

A product layout is also commonly referred to as an assembly line layout, as it involves the sequential arrangement of workstations along a flow path to create a product.

Question 14

In a shoe manufacturing plant, all shoes undergo the same operations in the same sequence. The shoes flow from one workstation to the next. Which type of layout is this?

Accepted Answer

This describes a product layout, where operations are arranged in a line according to the sequence of operations that need to be performed on the product. This is typical for assembly lines or manufacturing processes where products move through a fixed sequence of operations.

Question 15

Winston's Warehouses operates nine warehouses in and around Saskatoon. When Winston's Warehouses looks to purchase another facility, it requires the warehouse to have access to interprovincial or major highway interchanges and to have on-site access to rail. This is an example of which consideration when selecting a new facility location?

Accepted Answer

The requirement for access to interprovincial or major highway interchanges and on-site access to rail are examples of key resources that Winston's Warehouses needs in a new facility. This relates to the consideration of access to key resources when selecting a new facility location. The other options (proximity to major customers, capacity planning, availability and cost of labour) are not directly related to the specific requirements mentioned in the scenario.

Question 16

Which layout is used when all products undergo the same operations in the same sequence?

Accepted Answer

In a product layout, all products undergo the same operations in the same sequence. This type of layout is most efficient when producing large quantities of a standardized product.

Question 17

Caterpillar produces huge pieces of production equipment that are expensive to ship long distances. This mostly relates to which consideration when selecting a new facility location?

Accepted Answer

Proximity to major customers is the most relevant consideration for Caterpillar when selecting a new facility location as their production equipment is large and expensive to ship long distances, making it more practical to locate closer to their customers.

Question 18

An automobile manufacturer was offered significant tax incentives to open a factory in New Brunswick, where real estate prices are lower than many other parts of the country. This relates to which consideration when selecting a new facility location?

Accepted Answer

The tax incentives and lower real estate prices in New Brunswick suggest that the consideration being addressed is the cost of construction and operation, which indicates that the best choice for this question is D.

Question 19

A company that produces solar panels built its factory in Nova Scotia, where taxes are low and land is readily available at reasonable prices. This most relates to which consideration when selecting a new facility location?

Accepted Answer

The company's decision to build their factory in Nova Scotia is most related to the consideration of cost of construction and operation. This is because they chose the location based on low taxes and reasonable land prices, which would ultimately affect the cost of building and operating the facility. While availability of labour and access to key resources may also be important considerations, they are not directly related to the company's decision to build in Nova Scotia. Proximity to major customers is also not a factor in this scenario, as it is not mentioned as a reason for the location choice.

Question 20

Which of the following represents the arrangement of machinery, equipment, and personnel within a production facility?

Accepted Answer

Facility layout is the arrangement of machinery, equipment, and personnel within a production facility. Choice A, facility operation, refers to the overall management of the facility. Choice B, capacity arrangement, refers to the determination of the maximum output that a production facility can achieve. Choice D, design planning, is a broader term that can encompass various aspects of designing a production facility, such as facility layout, process flow, and equipment selection.

Quiz 8: Producing Quality Goods and Services