Ch. 4
Cost of direct labor goes up whenever labor content goes up.
False
Line balancing can only be applied to activities with a fixed sequence.
False
Line balancing is the act of allocating activities of a process across the process resources as ___ as possible so that all resources have a comparable ___.
evenly, utilization level
Specialization reduces processing times by making it easier to balance the line.
False
Labor content is increased by 10% while takt time remains the same. What is the percentage change in target manpower?
Increases by 10%
Automating some activities at a non-bottleneck resource simply increases the amount of idle time for that resource without making the process more efficient.
True
Revenue cannot be increased with an efficiency improvement on a demand constrained process.
True
Takt time matches cycle time if supply matches demand
True
A possible drawback of having one employee in charge of all activities involved in serving customers at a coffee shop is
Increased setups
Salade Normande, what is the cost of direct labor for each salad?
$0.67 euro/unit
A process can be balanced by moving work away from the __ to unused capacity elsewhere in the process.
bottleneck
Which of the follwing statement about takt time and cycle time is TRUE?
If takt time is longer than cycle time, fewer employees are needed.
Salade Normande, what is labor content
160 seconds/unit
Four employees at a fast food restaurant each perform one of four activities in serving a customer: greet customer, take order, process order, and deliver order. The processing time each activity is given as follows: Greet customer 2 seconds; Take order 30 seconds; Process order 60 seconds; Deliver order 5 seconds. Assume demand is unlimited. If each employee is paid $7.50 per hour, what is the cost of direct labor associated with serving one customer?
$0.50
Same info as #7 Assume demand is unlimited. If each employee is paid $7.50 per hour, what is the cost of direct labor associated with serving one customer?
$0.81
Same info as #56 Demand rate is 120 toys per hour. How much profit does C&A make per hour? Assume the worker's pay is a variable cost.
$1270 profit per hour
C&A uses two steps to make a toy. Step 1 takes 20 seconds, Step 2 takes 15 seconds. Each step is staffed by one worker, for a total of two workers. Each worker is paid $15 per hour. Each toy is sold for $20 . Material costs are $5 per toy and fixed costs are $500 per hour. Assume demand is unlimited. How much profit foes C&A make per hour?
$2170
C&A sells T-shirts for $15 each. Material costs are $2 per shirt and fixed costs are $300 per hour. C&A currently employs two workers, each of whom takes two minutes to make on shirt. Assume demand is unlimited. how much profit does C&A make per hour? the wage rate is $15 per hour.
$480 per hour
Patients us a self-serve kiosk to confirm their arrival at an outpatient clinic. Then then proceed to the receptionist to update any personal information. After that, a nurse will record the patient's vital signs. A physician will then consult with the patient and prescribe appropriate treatments. the patient will then visit the checkout station to settle payment and schedule the next appointment, if needed. Processing times and other information on the process are: ... what is the cost of direct labor per patient if demand is unlimited?
$65/patient
Same info as #27 Assume demand is unlimited. Each employee is paid $7.50 per hour. If one additional employee is added to the bottleneck activity, what will be the cost of direct labor in $ per customer?
0.3125
Same info as #27 Assume demand is unlimited. If one additional employee is added to the bottleneck activity, what will be the cost of direct labor in $ per customer
0.40
Same info as #7 Assume demand is unlimited. What is the average labor utilization?
0.40
Same info as #27 Assume demand is unlimited. If two additional employees are added to the current bottleneck activity, what will be the average labor utilization?
0.475
Same info as #27 Assume demand is unlimited. If two additional employees are added to the current bottleneck activity, what will be the cost of direct labor in $ per customer?
0.525
Same info as #27 Assume demand is unlimited. If one additional employee is added to the bottleneck activity, what will be the percentage change in process capacity?
100%
Same info as #7 Assume demand is unlimited. What is the total idle time?
143 seconds
C&A operates three eight-hour shifts to produce 600 gallons of a chemical per day. It requires 12 minutes of labor to produce a gallon of the chemical. What is C$A's takt time in minutes per gallon and target manpower?
2.4, 5
Same info as #56 Assume demand is unlimited. What will be the impact on C&A's profit per hour is the processing time of step 1 is reduced by 5 seconds? Assume demand is unlimited. What will be the impact on C&A's profit per hour if the processing time of step 1 is reduced by 5 seconds? Assume the worker's pay is a variable cost.
41% increase in profit per hour
Same info as #14 what is the labor content ?
55 minutes
Salade Normande, What is the average labor utilization in this process?
67%
Same info as #54 Whit will be the impact on C&A's profit per hour for shirts if one additional worker is moved from elsewhere in the company to make shirts? Assume the new worker also takes two minutes to make one shirt. The wage rate is $15 per hour.
81.3% increase
Same info as #7 Assume demand is unlimited. What is the labor content associated with serving one customer?
97 seconds
Same info as #27 Assume demand is unlimited. Which of the following conclusions can be drawn?
Adding two employees at the bottleneck activity will not increase the process capacity that was created by adding one employee.
Whci of the follwing is a fixed cost in operating a dental clinic?
Advertising in the local newspaper
Which of the following statements about process efficiency is FALSE?
Cost of direct labor goes up if flow rate goes up.
What happens to takt time if demand rate is doubled?
Decreases by 50%
Which of the following is a drawback of specialization?
Demotivated workers
Which of the following is a way to address some of the shortcomings of specialization?
Each employee is assigned to a team to perform a job.
Which of the following ways to assign employees to activities will more likely lead to a higher labor utilization? Assume demand is unlimited.
Each employee takes care of all activities involved in the process.
Which of the following is NOT a process variable that has an impact on profits?
High rate vs. low rate of interest on loans
Consider a capacity constrained process producing a high profit margin product. What will the impacts on revenue and profits be if processing time for the bottleneck resource is reduced by 10% while everything else remains the same?
Higher revenue and profits
Same info as #14 What would the best process improvement idea from the following proposals, assuming an unlimited demand?
Hire more physicians
In what situations is labor cost considered a variable cost?
Making longer-term staffing decisions to match demand
Which of the following is a variable cost in operating a dental clinic?
Material cost for metal fillings
There are five activities in making one toy: cutting (10min), sewing (10min), stuffing (5min), assembling (5min) and packaging (25min). Deband rate is 4 toys per hour. currenlty we hav eworker A in charge of cutting, worker B in charge of sewing and stuffing, and worker C in charge of assembling and packaging. Which of the following strategies will increase the process capacity by balancing the line?
Moving assembling to worker B
Same info at #34 Which of the following strategies will increase the process capacity by balancing the line?
Moving sewing to worker A
Both takt tiem and labor content are increased by 10%. what happens to target manpower?
No change
Same info as #56 Demand rate is 120 toys per hour. What will be the impact on C&A's profit per hour is the processing time of step 1 is reduced by 5 seconds? Assume the worker's pay is a variable cost.
No impact on profit
Consider a demand constrained process producing a high profit margin product. What will the impacts on revenue be if processing time for the bottleneck resource is reduced by 10% while everything else remains the same?
No impact on revenue
Same info as #56 assume demand is unlimited. What will be the impact on C&A's profit per hour if the processing time of step 2 is reduced to 10 seconds?
No impact on the profit
In what situations is labor cost considered a fixed cost?
Paying employees by the hour, even when they are idle.
Which of the following statements about line balancing is TRUE?
Process capacity can be increased by balancing a process
C&A Fast Food has four activities in serving a customer; greet customer (2 sec), take order (30 sec), process order (60 sec) and deliver order (5 sec). Each activity is staffed by one employee (for a total of four employees) Assuem demand is unlimited. To which activity should C&A assign an additional employee in order to increase process capacity?
Process order
Which of the following is NOT a benefit of specialization?
Reduced idle time
Which of the following strategies is NOT able to off-load the bottleneck?
Slow down work at resources with more capacity to match that of the bottleneck.
Which of the follwing is NOT a way to improve process efficiency?
Staffing to supply
Which of the following statements about takt time is FALSE?
Takt time tells us how much time actually elapses between completing two consecutive units
Which of the following statements about target manpower is TRUE
The target manpower calculation assumes that all resources are utilized at 100%
Process improvements can help increase revenues if the process is ____constrained.
capacity
If_________ is constrained, we should _____ the staffing level to raise capacity
capacity, raise
if _____ is constrained, we should _____ the staffing level to lower capacity
demand, lower
What will be the percentage change in cost of direct labor if flow rate goes up by 25% while other factors remain unchanged?
goes down by 20%
A possible drawback of having each employee specialize in one or several activities in serving customers at a coffee shop is
increased idle time
