Chapter 6

Assume a fixed cost for a process of $15,000. The variable cost to produce each unit of product is $14 and the selling price for the finished product is $29. What is the number of units that has to be produced and sold to break-even? Round up your answer to integers.

$29 - $14 = $15 $15,000 / $15 = 1,000 units

Assume a fixed cost for a process of $120,000. The variable cost to produce each unit of product is $35, and the selling price for the finished product is $50. Which of the following is the number of units that has to be produced and sold to break-even?

$50 - $35 = $15 $120,000 / $15 = 8,000 units

Using the assembly-line balancing procedure, what is the theoretical minimum number of workstations if the task times for the six tasks that make up the job are 4, 6, 7, 2, 6, and 5 minutes, and the cycle time is 10 minutes?

(4+6+7+2+6+5)/10 = 3

Using the assembly-line balancing procedure, which of the following is the required cycle time if the production time in minutes per day is 1,440 and the required output per day in units is 2,000

1,440 / 2,000 = .72 minutes per unit

You have just determined the actual number of workstations that will be used on as assembly line to be 5 using the assembly-line balancing procedure. The cycle time of the line is 4 minutes and the sum of all that tasks required on the line is 20 minutes. What is the value for the resulting line's efficiency? Give your answer in decimal values.

1.00 [20 / (5 * 4)] = 1

You have just determined the actual number of workstations that will be used on an assembly line to be 4 using the assembly-line balancing procedure. The cycle time of the line is 5 minutes and the sum of all that tasks required on the line is 15 minutes. What is the value for the resulting line's efficiency?

15 / (4 * 5) = .75

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

Disposing of left-over machinery and outsourcing ungrouped processes. Shifting to a cellular layout entails three steps: 1. Grouping parts into families that follow a common sequence of steps. 2. Identifying dominant flow patterns of parts families as a basis for location of processes. 3. Physically grouping machines and processes into cells.

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

False. Efficiency = Sum of the task times / (Actual number of workstations * Workstation cycle time)

True or False: If the sum of the task times required to produce a product is 80 minutes and the cycle time for the same product is 15 minutes, the theoretical minimum number of workstations is 8 using the assembly-line balancing procedure.

False; 80 minutes/15 minutes = 5.3, round up to 6.

True or False: 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-to-order do not work with the customer to design the product. An Engineer-to-order firm does.

True or False: 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.

In a work-center, machine A has a ten minute set-up time per batch and a two minute per unit run time. Machine B performs the identical function but has a set-up time of thirty minutes and a one minute run time per unit. The work-center makes products in batches ranging from one unit to one hundred units. assuming capacity is not a limitation on either machine, on which batches should machine B be used?

Machine A: 10 + 2Q Machine B: 30 + 1Q Point of indifference is where 10 + 2Q = 30 + 1Q = 1Q = 20 = Q = 20 Batches of more than 20 units should be run on machine B

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

Product-process matrix The formats by which a facility is arranged are defined by the general pattern of work flow; there are five basic structures (project, work-center, manufacturing cell, assembly line, and continuous process).

A difference between project and continuous flow categories of process flow structures is which two of the following

The size and bulk of the product. In a project layout, the product (by virtue of its bulk or weight) remains in a fixed location. Continuous processes are usually highly automated and, in effect, constitute one integrated machine.

True or False: 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. C = Production time per day / Required output per day (in units)

True or False: An example of an assemble-to-order firm is Dell Computer.

True; In the assemble-to-order environment, a primary task is to define a customer's order in terms of alternative components and options since it is these components that are carried in inventory.

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

True; To produce nonstandard products at relatively low volumes, work-centers (flexible) should be used. A highly standardized product (low-cost commodity) produced at high volumes should be produced using an assembly line or a continuous process.

True or False: Workstation cycle time is the time between successive units coming off the end of the assembly line.

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

True or False: 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.

Ture; A standard approach to choosing among alternative processes or equipment is break-even analysis

You have just determined the actual number of workstations that will be used on an assembly line to be 8 using the assembly-line balancing procedure. The cycle time of the line is 10 minutes and the sum of all that tasks required on the line is 60 minutes. Which of the following is the correct value for the resulting lines efficiency?

[60 / (8 * 10)] = .750