Chapter 9 - Study Module

The fixed-position layout would be most appropriate in which of the following settings? A) A cruise ship assembly facility B) A doctor's office C) A casual dining restaurant

A) A cruise ship assembly facility The fixed-position layout would be most appropriate in a cruise ship assembly facility. In a fixed-position layout, the project remains in one place and workers and equipment come to that one work area. This would make sense during a cruise-ship assembly process because the size of the ship would make it difficult to move. A doctor's office and a casual dining restaurant require employees (either doctors or waiters) to move between stations (rooms or tables) to provide their service. Thus, the project moves location constantly.

Which of the following is not an advantage of work cells? A) Decreased use of equipment and machinery B) Reduced raw material and finished goods inventory C) Reduced direct labor costs

A) Decreased use of equipment and machinery Decreased use of equipment and machinery is not an advantage of work cells. A work cell reorganizes people and machines into a group so that they can make a single product. While this arrangement has several benefits, the decreased use of equipment and machinery is not one of them. In fact, increased equipment and machinery utilization is considered a benefit of work cell utilization. Increased equipment utilization is possible because of better scheduling and faster material flow between employees. Other advantages to using work cells include reduced raw material and finished goods inventory (less work-in-process allows more rapid movement of a product within a work cell) and reduced direct labor costs (because of improved communication within the work cell).

ASRS stands for __________. A) automated storage and retrieval system B) automated storage and recovery system C) automated scan and retail system

A) automated storage and retrieval system ASRS stands for automated storage and retrieval system. ASRS systems are a useful tool as warehouse managers try to reduce the costs associated with finding and moving material within a warehouse as well as the resulting damage and product deterioration associated with moving supplies.

The main advantage of a product-oriented layout is typically __________. A) low variable cost per unit B) high flexibility C) low capital cost

A) low variable cost per unit The main advantage of a product-oriented layout is typically low variable cost per unit. Product-oriented layouts are able to achieve a low variable cost per unit because of the focus on high-volume, standardized products. The high-volume production process increases the capital/investment costs because this type of production requires specialized machinery. Product-oriented layouts are not designed for flexibility due to the standardization of the product.

In assembly line-balancing, cycle time (the ratio of available production time to scheduled production) is the __________ A) maximum time that a product is allowed at each workstation B) sum of all the task times divided by the maximum number of workstations C) minimum time that a product is allowed at each workstation

A) maximum time that a product is allowed at each workstation In assembly line-balancing, cycle time (the ratio of available production time to scheduled production) is the maximum time that a product is allowed at each workstation. Line balancing is designed to minimize the imbalance (or delay) that is created when employees are waiting on output from a different part of the production line. Cycle time is an important component of line balancing because it allows operations managers to forecast the maximum amount of time a product should be allowed at each workstation. Cycle time does not identify the minimum time a product is allowed at each workstation nor is it represented as the sum of all the task times divided by the maximum number of workstations. Cycle time is calculated by dividing daily operating time by the scheduled output for a production day.

A production line is to be designed to make 500 El-More dolls per day. Each doll requires 11 activities totaling 16 minutes of work. The factor operates 750 minutes per day. The required cycle time for this assembly line is __________. A) 5 minute B) 1.5 minutes C) 2 minutes

B) 1.5 minutes The required cycle time for this assembly line is 1.5 minutes. Cycle time is defined as the maximum time that a product is allowed at each work station. Cycle time is calculated by dividing daily operating time (in this case 750 minutes a day) by the scheduled output (in this case 500 units per day). Thus, 750/500 = 1.5 minutes.

Four hundred and eighty minutes of production time are available per day. The schedule calls for the production of 80 units per day. Each unit of the product requires 30 minutes of work. What is the theoretical minimum number of workstations? A) 3 B) 5 C) 4

B) 5 The theoretical minimum number of workstations is 5. The minimum number of workstations is determined by calculating the sum of all the task times divided by the cycle time. Thus, in this case, our first step is to calculate the cycle time. Cycle time is calculated by dividing daily operating time (in this case 480 minutes a day) by the scheduled output (in this case 80 units per day). Thus, 480/80 = 6 minutes. Our second step is to calculate the number of workstations. The minimum number of workstations is determined by calculating the sum of all task times (in this case 30) divided by the cycle time (in this case 6). Thus, 30/6 = 5.

For which of the following operations would a fixed-position layout be most appropriate? A) Producing TV sets B) Constructing a highway tunnel or bridge C) Assembling automobiles

B) Constructing a highway tunnel or bridge A fixed-position layout would be most appropriate when constructing a highway tunnel or bridge. In a fixed-position layout, the project remains in one place and workers and equipment come to that one work area. This would make sense during the construction of a highway tunnel or bridge because both are immovable structures. Producing TV sets and moving automobiles through an assembly line requires employees to stay at their workstation and a product moves to them. Thus, the employee stays relatively stationary and the product moves to them.

Ambient conditions, spatial layout and functionality, and signs, symbols, and artifacts are all __________. A) elements of successful office layouts B) elements of successful servicescapes C) indicators of balance on an assembly line

B) elements of successful servicescapes Ambient conditions, spatial layout and functionality, and signs, symbols, and artifacts are all elements of successful servicescapes. The servicescape describes the physical surroundings where service is delivered. In retail layout design, conditions such as spatial layout, symbols, and artifacts have all been shown to positively impact customer perceptions of service quality. These conditions are not considered elements of successful office layouts nor are they indicators of assembly line balance or performance.

Which of the following is true for the process layouts, but false for the product-oriented layouts? A) High volume of output created B) Flexibility in equipment and labor assignments C) Low variety of products produced

B) Flexibility in equipment and labor assignments The statement that is true for the process layouts, but false for the product-oriented layouts is flexibility in equipment and labor assignments. Process layouts are best suited for low-volume, high-variety projects and tend to utilize general purpose (rather than specialty) machines. As a result, this strategy requires flexibility in equipment and labor assignments. That is, process layouts require the ability to move people and adjust equipment to meet the needs of a specific project. Product-oriented layouts are best suited for high-volume, low-variety production line that produce a lot of the same thing and then package it differently (e.g., potato chips, crayons, etc.).

What is the primary reason why retailers tend to locate high-draw items around the periphery of the store? A) There will be less congestion of customers than there would be in the middle. B) This arrangement will help to maximize customer exposure to other items in the store. C) This arrangement allows customers to travel through the store as quickly as possible.

B) This arrangement will help to maximize customer exposure to other items in the store. The primary reason retailers tend to locate high-draw items around the periphery of the store is because this arrangement will help to maximize customer exposure to other items in the store. Most retail operations try to expose customers to as many products as possible because increased product exposure leads to increased buying. One way retail managers maximize exposure is by distributing high-draw (or power goods) around the periphery of the store and/or aisle space. Retail managers do not focus on helping customers travel through the store at a faster rate because they want to maximize the number of items a customer sees. Overall, proper retail layout should avoid congestion because congestion reduces the effectiveness of product placement on shelves.

The objective of layout strategy is to __________. A) develop a system that minimizes material handling costs B) develop an effective and efficient system that meets competitive requirements C) develop a system that maximizes flexibility

B) develop an effective and efficient system that meets competitive requirements The objective of layout strategy is to develop an effective and efficient system that meets competitive requirements. Layout strategy requires operations managers to link the overall corporate strategy (e.g., product differentiation, low-cost competition, etc.) to the layout of the physical space for the business. For instance, Walmart tends to create layouts that maximize the utilization of space and increase the amount of products customers will see during their shopping trip. This efficient space utilization helps Walmart reduce operating costs and the effective placement of products helps drive customers through the store. Maximizing flexibility or minimizing material-handling costs are not the primary objective of every layout strategy. For instance, continuous process manufacturing facilities will not need to be able to have flexible equipment that can be moved around. However, an event center would want to maximize flexible space so that it can host multiple types of events. Additionally, not all businesses involve material handling so that is not an objective of all layout strategies.

The major problem addressed by the process-oriented layout strategy is __________. A) the movement of material to the limited storage areas around the site B) minimizing difficulties caused by material flow variability for each product C) balancing product flow from one workstation to another

B) minimizing difficulties caused by material flow variability for each product The major problem addressed by the process-oriented layout strategy is minimizing difficulties caused by material flow variability for each product. Process-oriented layouts are focused on low-volume, high-variety production processes, where jobs are consistently run in small batches. While this flexibility helps a business meet the unique demands of a particular customer or client, it also presents a disadvantage because each piece of equipment is a general purpose machine. As a result of this production system, it is important to purposefully structure the layout of the business in an effort to minimize difficulties caused by material flow varying within each product. This is frequently accomplished by relying on highly-trained employees. Warehousing and storage-layout will focus more directly on the movement of material to storage areas around the site. Work-cell layout decisions focus more directly on balancing product flow from one workstation (or department) to another.

One disadvantage of process-oriented layouts arises from __________. A) the need for stable consumer demand B) the use of general purpose machines and equipment C) the use of special purpose machines and equipment

B) the use of general purpose machines and equipment One disadvantage of process-oriented layouts arises from the use of general purpose machines and equipment. The use of general purpose machinery allows process-oriented layouts to meet the needs of diverse clients and product lines. This flexibility is considered a disadvantage because general purpose equipment requires high labor skills, takes more time to move a product through the production process, and increases the in-process materials needed to create a final product. Process-oriented strategies do not require the use of special purpose machines or equipment. Additionally, process-oriented strategies do not require the need for stable customer demand.

Four hundred and eighty minutes of production time are available per day. Scheduled production is 120 units per day. What is the required cycle time? A) 6 B) 8 C) 4

C) 4 The required cycle time is 4 minutes. Cycle time is defined as the maximum time that a product is allowed at each work station. Cycle time is calculated by dividing daily operating time (in this case 480 minutes a day) by the scheduled output (in this case 120 units per day). Thus, 480/120 = 4 minutes.

Which of the following requires an information system that provides inbound product identification, its destination, and routing of the product to the designed outbound vehicle? A) Random stocking B) Customizing C) Cross-docking

C) Cross-docking Cross-docking requires an information system that provides inbound product identification, its destination, and routing of the product to the designed outbound vehicle. Cross-docking is designed to avoid placing materials or supplies in storage by processing them as they are received. For instance, in a distribution center a shipment would arrive at the shipment dock labeled and presorted for immediate re-routing and delivery. Customizing is focused on adding value to the production process by modifying a product. It does not directly focus on product identification or product routing through a business. Random stocking is a technique used to locate stock wherever there is open space. Cross-docking is implemented in an effort to avoid stocking by immediately routing the inbound product to a location where it will be processed and used.

Which of the statements below best describes office layout? A) Seeks the best personnel and equipment utilization in repetitive or continuous production B) Addresses the layout requirements of large, bulky projects such as ships and buildings C) Groups workers, their equipment, and spaces/offices to provide for movement of information

C) Groups workers, their equipment, and spaces/offices to provide for movement of information Office layout groups workers, their equipment, and spaces/offices to provide for movement of information. Office layout is one of the key drivers of long-run efficiency for operations and layout decisions have to focus on how employees are grouped together and how people will utilize their office space and equipment to facilitate the movement of information. Office layout does not, on the other hand, focus on making decisions about how to implement manufacturing process improvements or manufacturing layout requirements. These issues would be dealt with by focusing on a product-oriented layout or a process-oriented layout, respectively.

Which layout type assumes an adequate volume for high equipment utilization? A) Fixed-position layout B) Process-oriented layout C) Product-oriented layout

C) Product-oriented layout Product-oriented layout assumes an adequate volume for high equipment utilization. Product-oriented layout assumes that volume is adequate for high equipment utilization, that product demand will be stable enough to justify the capital expense associated with specialized equipment, that the product is standardized, and that raw material supplies will be adequate. The process-oriented layout and the fixed-position layout do not make these assumptions.

All of the following are true of slotting fees except: A) Slotting fees can reduce the ability of a small business to introduce new products. B) Slotting fees are charged by retailers to stock a product. C) Slotting fees are charged by retailers to promote a product.

C) Slotting fees are charged by retailers to promote a product. Slotting fees are charged by retailers to stock a product and can reduce the ability of a small business to introduce new products are true of slotting fees except slotting fees are charged by retailers to promote a product. The false statement is that slotting fees are charged by retailers to promote a product. Slotting fees are fees manufacturers pay to have their goods placed on shelves in a retail store or supermarket. The fees are not used to promote a product. Instead, slotting fees are charged to stock products on shelves. Given the early expense (some retailers charge up to $25,000), many small firms or new entrants are not able to pay for a slot. Thus, slotting fees can reduce the ability of a small business to introduce new products.

Which of the following is not one of the factors complicating the techniques for addressing the fixed-position layout? A) The volume of materials is dynamic B) There is limited space at virtually all sites C) Takt times at workstations are dynamic

C) Takt times at workstations are dynamic The fact that takt times at workstations are dynamic is not one of the factors complicating the techniques for addressing the fixed-position layout. Takt times represent the production pace necessary to meet customer demands. Takt times are a factor considered in establishing work cells; takt times do not impact fixed-position layout decisions. Fixed-position layouts are complicated by three factors. First, there is limited space at virtually all sites. Second, different materials are required at different stages of the product. Third, the volume of materials needed is dynamic.

Balancing low-cost storage with low-cost material handling is important to __________. A) a product-oriented layout B) an office layout C) a warehouse layout

C) a warehouse layout Balancing low-cost storage with low-cost material handling is important to a warehouse layout. The primary purpose of warehouse layout is to appropriately handle the trade-off between handling costs (e.g., transport, storage costs, etc.) and costs associated with warehouse space (e.g., equipment, people, insurance, depreciation, etc.). Office layout decisions do not focus on material-handling decisions. Instead, office layout decisions are focused on how to group people and equipment to effectively control the flow of information through a business. Product-oriented layout decisions are focused on decisions that impact the production of a good; product-oriented layout decisions do not directly focus on material storage and handling.

The concept of customizing in a warehouse layout __________. A) is possible, but causes serious loss of oversight of the quality of function B) cannot work in today's high efficiency factories C) is a new trend in value-added activities in warehouses

C) is a new trend in value-added activities in warehouses The concept of customizing in a warehouse layout is a new trend in value-added activities in warehouses. Warehouse customization is a useful way to generate competitive advantage in markets where there is a lot of competition. Customization does not mean that a company loses sight of continuous improvement or quality control. Additionally, many modern warehouse based factories are being built with the specific purpose of customization. For instance, a customization warehouse can be a location where various computer components are assembled and packaged for different clients (Apple, Sony, and HP, for instance).

Retail layouts thrive on the notion that __________. A) average customer visit time should be maximized B) storage costs should be minimized C) maximizing customer exposure rate maximizes sales and profit

C) maximizing customer exposure rate maximizes sales and profit Retail layouts thrive on the notion that maximizing customer exposure rate maximizes sales and profit. Retail layout is focused on making decisions about how to allocate shelf space and respond to customer behavior in an effort to increase customer exposure to products. The hope is that as customers see more product, purchases (and profit) will increase. Retail layout does not focus on trying to increase average customer visit time, nor does it focus on storage costs.

The main goal of retail layout is __________. A) minimizing space required B) maximizing high-margin sales C) maximizing profitability per square foot of floor space

C) maximizing profitability per square foot of floor space The main goal of retail layout is maximizing profitability per square foot of floor space. Retail layout strategies focus on making decisions about how to allocate shelf space to maximize the amount of product (i.e., potential profit) a store can display on shelf space. While retail layout strategy may consider high-margin sales and the minimizing space required, these are not the primary goals of this layout strategy. Instead, the primary goal of retail layout is maximizing profitability per square foot of floor space.

The type of layout which features departments or other functional groupings in which similar activities are performed is __________. A) fixed-position B) product-oriented C) process-oriented

C) process-oriented The type of layout which features departments or other functional groupings in which similar activities are performed is a process-oriented layout. Process-oriented layouts deal with low-volume, high-variety production processes, where similar machines and equipment are grouped together. In a fixed-position layout, the project remains in one place and workers and equipment come to that one work area. For example, the construction of a high-rise building would require a fixed-position layout. Product-oriented layouts are organized around products or families of similar high-volume, low-variety products (such as potato chips).