Chapter 06 Manufacturing and Service Processes

True or false: Manufacturing processes are used to make tangible goods.

TRUE

The cost of goods sold divided by the total average value of inventory

Inventory turn

A production environment where the product is built directly from raw materials and components in response to a specific customer order.

Make-to-order

Which of the following equations is correct for calculating the required workstation cycle time?

(Production time per day)/(Required output per day)

When parts are moved on a conveyor that passes a series of workstations in a uniform time interval, this is called the __________________

workstation cycle time

Which of the following is NOT true about a workcenter layout?

A workcenter layout is commonly used for systems with high production volumes.

A production environment where pre-assembled components, subassemblies, and modules are out together in response to a specific customer order.

Assemble-to-order

Here the firm works with the customer to design the product, which is then made from purchased materials, parts, and components.

Engineer-to-order

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

TRUE Mixed-model line balancing is used by JIT manufacturers such as Toyota.

The long-term average rate that items flow through a process

Throughput

The time required to respond to a customer order is known as

lead time.

Lead time can vary based on ______.

location, customization

Workcenters are often focused on

one type of operation.

The efficiency of an assembly-line balance must always be less than or equal to

100%

The time between successive units coming off the end of an assembly line is referred to as

workstation cycle time

Which common layout format refers to the progressive build of a product?

Assembly line

Which of the following is not a step in the process to balance an assembly line?

Randomly assign tasks to workstations.

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

**E. Emergency exits Emergency exits are determined by safety concerns, not by production process organization decisions.

Which layout moves product from workstation to workstation at a controlled rate?

Assembly line

The problem of assigning all the tasks to a series of workstations so that each workstation has no more than can be done in the workstation cycle time and so that idle time across all workstations is minimized.

Assembly-line balancing

Average Inventory/Cost of goods sold x 365

Days-of-Supply

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

TRUE

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

TRUE

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.

TRUE

In a project layout, a high degree of __________ is common.

task ordering

Which process layout is best used for manufacturing liquids?

Continuous process

_____________ is used to avoid expensive shut downs by operating 24 hours a day.

Continuous process

Which of the following describes the step where parts are procured from one or more suppliers?

Sourcing

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

TRUE

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

TRUE

relationship identifies the restrictions imposed by product design and process technologies.

precedence

When parts are moved on a conveyor that passes a series of workstations in a uniform time interval, this is called the ___________________.

workstation cycle time

Which of the following is not a way to reduce the required time for a task?

Use a less skilled worker

Firms that combine a number of preassembled modules to meet customers' specifications are called

assemble-to-order.

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

TRUE

The point in the supply chain where inventory is positioned to allow the preceding processes to operate independently is the

customer order decoupling point.

A map showing the flow of materials through a manufacturing system is known as a

make-to-stock process

When a company groups dissimilar machines to work on products that have similar processing requirements, it's using a(n) ___________ layout.

manufacturing cell

layout uses dedicated areas for production of similar products.

manufacturing cell

A framework depicting when the different production process types are typically used depending on volume and standardization is known as the

product-process matrix.

matrix shows when different production process types are used in relation to product volume and standardization.

product-process matrix.

The calculated theoretical number of workstations should be ____________________.

rounded up to the next highest integer.

Standardization on the product-process matrix refers to

variations in the product.

Which statement is true regarding differences between service and manufacturing organizations?

Manufacturing organizations must plan and hold inventory.

Which of the following is not a basic type of process structure?

**A. Product-process matrix

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

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

**B. Throughput rate times Flow time

Which of the following basic types of process structures is one which similar equipment or functions are grouped together?

**B. Work center

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

-**D. Fabrication

Which are characteristics of a continuous process line?

24 hours, expensive shutdown, highly automated

The place where inventory is positioned to allow processes or entities in the supply chain to operate independently.

Customer order decoupling point

A process structure designed to make discrete parts. Parts are moved through a set of specially designed workstations at a controlled rate.

Assembly line

Which the following describes the layout for items produced through a fixed sequence of workstations?

Assembly line

Which of the following products would use a project layout?

Bridge

With which of the following goods would a continuous process be used?

Chemicals

Which of the following statements about inventory measures is TRUE?

Days-of-supply measures how long (on average) a firm's inventory can support sales. Inventory turn compares cost of goods sold to average inventory.

The number of days of inventory of an item. If an item were not replenished, this would be the numbers of days until the firm would run out of the item -on average- Also, the inverse of inventory turn expressed in days

Days-of-supplyply

Which of the following is not a step required to make a good?

Decoupling

Which of the following is NOT a step in the process of developing a manufacturing cell?

Determine which machines perform the same process.

True or false: The total work at a workstation is equal to the sum of all tasks to complete a product.

FALSE

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

FALSE (Break-Even Analysis) is most suitable when processes and equipment entail a large initial investment and fixed cost, and when variable costs are reasonably proportional to the number of units produced.

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

FALSE A continuous process is similar to an assembly line in that production follows a predetermined sequence of steps, but the flow is continuous such as with liquids, rather than discrete

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

FALSE A work center layout, sometimes referred to as a job shop, is where similar equipment or functions are grouped together.

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

FALSE We can think of Little's law as a relationship between units and time.

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.

FALSE Workstation cycle time: the time between successive units coming off the end of an assembly line.

The time it takes a unit to flow through a process from beginning to end.

Flow time

Little's law relates inventory, throughput rate, and flow time as

Inventory = Throughput rate x Flow time

Cost of goods sold/Average inventory

Inventory turn

The time needed to respond to a customer order

Lead time

The attempt to achieve high customer service with minimum levels of inventory investment

Lean manufacturing

The long-term relationship between inventory, throughput, and flow time is mathematically related using

Little's Law

A mathematical expression that relates inventory, throughput, and flow time.

Little's law

A production environment where the customer is served "on-demand" from finished goods inventory.

Make-to-stock

The issue of balancing the level of finished inventory against the level of service to the customer occurs in which type of firm?

Make-to-stock

Which type of firm invests in lean manufacturing programs in order to improve customer service levels for a given inventory investment?

Make-to-stock

An area where simple items that are similar in processing requirements are produced

Manufacturing cell

Which layout format groups machines to work on products that have similar processing requirements?

Manufacturing cell

The order in which tasks must be performed in the assembly process.

Precedence relationship

Shows the relationship between different production units and how they are used depending on product volume and the degree of product standardization

Product-process matrix

In which production system does the product remain in one place while resources (such as workers or equipment) travel to the product when needed?

Project layout

The product, because of its sheer bulk or weight, remains fixed in a location. Equipment is moved to the product rather than vice versa.

Project layout

_____________ techniques are typically used to manage production processes that follow a project layout structure.

Project management

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

TRUE

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

TRUE

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

TRUE

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.

TRUE

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

TRUE

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.

TRUE

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

TRUE

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.

TRUE

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

TRUE

Sum of raw material, work-in-process, and finished goods inventorySum of raw material, work-in-process, and finished goods inventory

Total average value of inventory

The total average investment in raw material, work-in process, and finished goods inventory. This is valued at the cost of the firm.

Total average value of inventory

Which of the following is one of the dimensions depicted on a product-process matrix?

Volume

Often referred to as a job shop, a process structure suited for low-volume production of a great variety of non-standard products. Workcenters sometimes are referred to as departments and are focused on a particular type of operations.

Workcenter

The time between successive units coming off the end of an assembly line.

Workstation cycle time

Firms invest in lean manufacturing programs in order to

achieve high customer service with minimum levels of inventory investment.

A flexible line layout may improve assembly-line balance by

allowing work sharing among employees.

A ______________ arranges processes according to the sequence of steps by which the product is manufactured.

assembly line

Customer order decoupling points

determine lead times, impact inventory

A manufacturing cell is generally made up of ___________ machines.

dissimilar

Inventory turn is calculated by

dividing cost of goods sold by average inventory value.

The required workstation cycle time is determined by

dividing the production time per day by the required output per day.

The practice of achieving high levels of customer service with a minimal inventory investment is known as manufacturing.

lean

Firms whose product is built directly from raw materials and components in response to a customer are known as

make-to-order.

When attempting to balance an assembly-line, the amount of idle time across workstations should be _________________.

minimized

If inventory turn is known, days-of-supply is calculated by

multiplying the inverse of inventory turn by 365 days.

In an assemble-to-order system, the total number of unique combinations possible is calculated by

multiplying the number of options for each choice together.

On an assembly-line, the order in which tasks must be performed is called the __________.

precedence relationship

A production process map is built by

tracking the flow of material through the system.

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?

**D. Assembly line

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

**D. Disposing of left-over machinery and outsourcing ungrouped processes

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

**D. Inventory/Flow time

Which of the following is a basic type of process structure?

**D. Work center

An often automated process that converts raw materials into a finished product in one contiguous process

,Continuous process

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

FALSE Firms that make the customer's product from raw materials, parts, and components are make-to-order firms.

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.

FALSE Process selection refers to the strategic decision of selecting which kind of production processes to use to produce a product or provide a service.

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

FALSE See equation 6.5.

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

FALSE See exhibit 6.2, Make-to-Stock Process Map

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

FALSE Selection of decoupling points is a strategic decision that determines customer lead times and can greatly impact inventory investment. The closer this point is to the customer, the quicker the customer can be served.

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

FALSE The assembly-line balancing problem is one of assigning all tasks to a series of workstations so that each workstation has no more than can be done in the workstation cycle time, and so that the unassigned (that is, idle) time across all workstations is minimized. The problem is complicated by the relationships among tasks imposed by product design and process technologies. This is called the precedence relationship, which specifies the order in which tasks must be performed in the assembly process.

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.

FALSE 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.

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

FALSE The time needed to respond to a customer order is called the lead time.

Process selection refers to the strategic decision of selecting which kind of production processes to use to produce a product or provide a service.

TRUE

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.

TRUE

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

TRUE

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

TRUE

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

TRUE

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

TRUE

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

TRUE

True or false: The longest required task time often defines the shortest possible workstation cycle time for production.

TRUE

True or false: Typically, there is a trade-off where quicker response to customer demand comes at the expense of greater inventory investment.

TRUE

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

TRUE

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

TRUE See exhibit 6.7, page 190.

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

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