Question 1

A manufacturer has a choice of purchasing and installing a heat- treating oven or having the heat treating done by an outside supplier. For the in- house treatment the fixed costs are $28,000 with a variable cost of $10. To purchase outside, the variable costs are $17 per unit.
What is the cost equalization point. Should the company have the heat treating done outside if the annual volume is 3,000 units? 5,000 units?

Accepted Answer

CEP is at 4,000 units. For 3,000 units the company should purchase outside at a cost of $17 per unit. For a quantity of 5,000 units, the in- house production is cheaper at
$15 per unit.

Question 2

Discuss the use of special- purpose machinery.

Accepted Answer

Special- purpose machinery is designed to perform specific operations on one work piece or a small number of similar work pieces. It is more costly and less- flexible but parts can be produced with it much quicker than with general purpose machinery.

Question 3

________are the resources used in changing inputs to outputs.
A) Process boundaries
B) Customers
C) Suppliers
D) Components

Accepted Answer

Components are the resources used in changing inputs to outputs as they are the parts or elements that are assembled or processed to create the final product.

Question 4

To find a better method when analyzing a process:
A) work to eliminate changes in the sequence of operations
B) eliminate all unnecessary work
C) separate operations wherever possible for efficiency
D) all of the above

Accepted Answer

The answer of To find a better method when analyzing...

Question 5

What are some of the reasons to purchase externally as opposed to making in- house)?

Accepted Answer

The answer of What are some of the reasons to...

Question 6

What is product standardization and why is it important?

Accepted Answer

The answer of What is product standardization and why is...

Question 7

An example of the vital few is:
A) a few problems account for most process downtime
B) a few suppliers account for most rejected parts
C) a few processes account for the bulk of scrap
D) all of the above

Accepted Answer

The term "vital few" refers to the Pareto principle, where a small number of causes are responsible for a large portion of the effect. All the options (A, B, and C) are examples of this principle, where a few elements are responsible for the majority of the issues.

Question 8

Discuss CPI.

Accepted Answer

The answer of Discuss CPI....

Question 9

Given the following fixed and variable costs and the volumes, calculate the total and unit costs. $$\begin{array}{l}
\begin{array} { l l l } 
\text { Fixed costs }&\text { Variable costs}&\text {  Volume in units }&\text { Total cost}&\text {  Unit cost }\ 
\$ 200 & \$ 10 & 100 \
\$ 200 & \$ 7 & 1000 \
\$ 50 & \$ 15 & 20 \
\$ 1,000 & \$ 1 & 2000 \
\$ 500 & \$ 20 & 500
\end{array}
\end{array}$$

Accepted Answer

The answer of Given the following fixed and variable costs...

Question 10

In continuous process improvement, the first step is:
A) record the existing method to collect the necessary data in a useful form
B) analyze the recorded data to generate alternative improved methods
C) decide what to study
D) none of the above

Accepted Answer

The first step in continuous process improvement is to decide what to study, as it sets the focus and scope for the improvement efforts.

Question 11

Identify the six steps in the the CPI process.

Accepted Answer

The answer of Identify the six steps in the the...

Question 12

Indicators that show areas most needing improvement include:
A) no bottlenecks
B) low scrap
C) excessive overtime
D) none of the above

Accepted Answer

Excessive overtime indicates inefficiencies or capacity issues, suggesting areas needing improvement.

Question 13

A process costs $200 to set up. The run time is 5 minutes per piece and the run cost is $30 per hour. Determine the fixed cost, the variable cost and the total cost and unit cost for a lot of 500.

Accepted Answer

The answer of A process costs $200 to set up....

Question 14

________record in sequence only the main operation and inspections.
A) Movement or delay reports
B) Process flow diagrams
C) Operations process charts
D) Both A and B

Accepted Answer

Operations process charts are used to record in sequence only the main operations and inspections.

Question 15

Job________ trains workers to do several jobs so they can be moved from one job to another.
A) design
B) enrichment
C) rotation
D) enlargement

Accepted Answer

Job rotation involves training workers to perform multiple jobs, allowing them to be moved from one job to another as needed.

Question 16

Starting and ending points form the________of the process.
A) flow
B) boundaries
C) components
D) inputs and outputs

Accepted Answer

The boundaries of a process define the starting and ending points.

Question 17

A principle of motion economy is:
A) arrange work so motions are balanced
B) preposition tools and materials
C) locate materials within the working area
D) all of the above

Accepted Answer

All the options listed are principles of motion economy, which aim to improve efficiency by minimizing unnecessary movements and arranging workspaces effectively.

Question 18

Given the following fixed and variable costs and the volumes, calculate the total and unit costs.
Fixed costs Variable costs Volume in units Total cost Unit cost $$\begin{array} { l l l } 
\$ 1000 & \$ 12 & 1000 \
\$ 2500 & \$ 17 & 100 \
\$ 500 & \$ 150 & 2 \
\$ 1,500 & \$ 19 & 21 \
\$ 50 & \$ 200 & 50
\end{array}$$

Accepted Answer

The answer of Given the following fixed and variable costs...

Question 19

Job ________ expands a worker's job by clustering similar or related tasks into one job.
A) enrichment
B) rotation
C) enlargement
D) design

Accepted Answer

Job enlargement involves expanding a worker's job by adding similar or related tasks to increase the variety of work.

Question 20

A manufacturer has a choice of purchasing and installing a drilling machine having the drill work done by an outside supplier. For the in- house drilling the fixed costs are
$100,000 with a variable cost of $12. To purchase outside, the variable costs are $20 per unit.
What is the cost equalization point. Should the company have the heat treating done outside if the annual volume is 1,000 units? 10,000 units?

Accepted Answer

The answer of A manufacturer has a choice of purchasing...

Quiz 14: Products and Processes

Discuss the use of special- purpose machinery.

________are the resources used in changing inputs to outputs.

To find a better method when analyzing a process:

What are some of the reasons to purchase externally as opposed to making in- house)?

What is product standardization and why is it important?

An example of the vital few is:

Discuss CPI.

In continuous process improvement, the first step is:

Identify the six steps in the the CPI process.

Indicators that show areas most needing improvement include:

A process costs $200 to set up. The run time is 5 minutes per piece and the run cost is $30 per hour. Determine the fixed cost, the variable cost and the total cost and unit cost for a lot of 500.

________record in sequence only the main operation and inspections.

Job________ trains workers to do several jobs so they can be moved from one job to another.

Starting and ending points form the________of the process.

A principle of motion economy is:

Job ________ expands a worker's job by clustering similar or related tasks into one job.