Operations Management Final

1. A company hopes to achieve a daily production output of 200 units during 6 hours of production time. Assuming there is no lost time during the 6 hours of production, the desired cycle time to achieve the targeted level of output is

1.8 minutes

A company is evaluating which of two alternatives should be used to produce a product that will sell for $35 per unit. The following cost information describes the two alternatives: Process A Process B Fixed Cost 500000 750000 Variable Cost per Unit 25 23 What must be the demand if you are indifferent between process A and B?

125,000

A company is evaluating which of two alternatives should be used to produce a product that will sell for $35 per unit. The following cost information describes the two alternatives. Process A Process B Fixed Cost 500000 750000 Variable Cost per Unit 25 23 The breakeven volume for Process A is

50,000 units.

A company is evaluating which of two alternatives should be used to produce a product that will sell for $35 per unit. The following cost information describes the two alternatives. Process A Process B Fixed Cost 500000 750000 Variable Cost per Unit 25 23 The break-even volume for Process B is

62,500 units.

3. Which of the following describes a process layout

Equipment is general purpose and the workers are highly skilled.

_________ setups can be performed in advance while the machine is running.

External

10. Product layouts have a higher degree of flexibility than process layouts.

False

11. Most service facilities utilize fixed-position layouts.

False

12. Line balancing is a procedure that requires cycle time to be the same as flow time.

False

19. Single model and mixed model assembly lines are similar in layout and operation.

False

9. Product layouts are sometimes referred to as functional layouts because they group similar activities together.

False

Companies that control the production of virtually all of the parts that go into a product are said to be horizontally integrated.

False

Mass production is characterized by high volumes of a customized product for a mass market.

False

Producing a high volume of a single product is a characteristic of batch production.

False

Shipbuilding is an example of production system requiring a process layout

False

Small-lot production reduces lead time but increases quality problems.

False

Supplier speed is rarely an important consideration in outsourcing decisions.

False

The individual generally credited with the development of lean production is an American.

False

Which of the following is not associated with the sourcing continuum?

In-house production

14. The desired cycle time refers to the maximum amount of time a product is allowed to spend at each workstation.

True

15. Fixed-position layouts are used for projects when the product cannot be easily moved.

True

16. A flexible manufacturing system (FMS) combines flexibility with higher efficiency.

True

17. Cellular layouts combine the flexibility of process layouts with the efficiency of product layouts.

True

18. Precedence requirements reflect physical restrictions on the order in which operations are performed in a product layout.

True

2. A process layout groups similar activities together according to the functions they perform.

True

7. Line balancing is constrained by precedence requirements and cycle time restrictions.

True

8. The majority of service facilities utilize process layouts.

True

Breakeven analysis examines the cost tradeoffs associated with demand volume when selecting a process.

True

Continuous production is characterized by very high volumes of commodity products.

True

Flexible resources is one of the basic elements of lean production.

True

Kaizen is a Japanese term that means fool proofing to prevent defects.

True

Mass production is often associated with assembly lines.

True

Minimizing material handling cost is an important objective for a process layout

True

Outsourcing occurs when a company cannot or will not make all the parts that go into a product.

True

Taiichi Ohno observed that customers in American supermarkets pull items through the system based on what is needed to satisfy demand.

True

The lower inventory levels resulting from small-lot production hide problems in the production process.

True

A print shop is an example of which of the following process choices?

batch production

Complex scheduling problems are most likely to occur with which process type?

batch production

Variable demand and small-to-moderate quantities produced to-order are characteristics usually associated with

batch production

Steel, paper, paints, and chemicals are examples of products that use

continuous production.

Which of the following is not a principle for reducing setup times?

converting external setup to internal setup

Lean production is difficult to implement when

demand is highly variable. product variety is high. there are many unique products All of these answer choices are correct.

As process selection moves up the diagonal from project to continuous production

demand volume increases

13. The basic objective to the layout decision is to

ensure a smooth flow of work, material, people, and information through the system

Batch production is also known as a job shop because it creates more jobs than any of the other process choices.

false

Firms that adopt lean production experience reductions in employee training costs.

false

Internal setup activities can be performed when a process is running.

false

Poka-yolk is a Japanese term used to describe the removal of waste in a lean production system.

false

The pull system was developed by Ohno to coordinate production between processes.

false

Disadvantages of batch production include all of the following except

flexibility

In a pull production system, a card that corresponds to a standard quantity of production is known as a(n)

kanban

4. The process of equalizing the amount of work at each workstation in a product layout is known as

line balancing.

In lean production, waste is defined as

overproduction. high levels of inventory. unnecessary movement. Correct! All of the answer choices are correct.

A ___________ is a foolproof device that prevents defects from occurring.

poka-yoke

6. Material handling equipment that can follow multiple paths, move in any direction, and carry large loads of in-process inventory is most likely to be associated with a ___________ layout.

process

The benefits of lean production include all of the following except reduced costs.

product variety.

All of the following are benefits expected from implementing lean production except better quality.

reduced capacity

A company is evaluating which of two alternatives should be used to produce a product that will sell for $35 per unit. The following cost information describes the two alternatives Process A Process B Fixed Cost 500000 750000 Variable Cost per Unit 25 23 If total demand (volume) is 120,000 units, then the company should

select Process A with a profit of $700,000 to maximize profit

The pace at which production should take place to match the rate of customer demand is known as

takt time.

5. Cycle time refers to the

time between finished units coming off an assembly line.

A poka-yoke is any foolproof device that prevents defects or injury from occurring.

true

General purpose machines are an example of flexible resources in lean production.

true

In lean production, a strong relationship exists between setup times and lot size.

true

Mixed-modeling sequencing is used at Toyota to create uniform production levels.

true

Producing items before they are needed is considered waste under the principles of lean production.

true

Push systems rely on predetermined production schedules often generated by computerized systems.

true

The concept of pull production is easy to implement because it is similar to traditional scheduling procedures.

true

To keep machines running firms can use either breakdown maintenance or preventative maintenance.

true

Vertical integration is the degree to which a firm produces the parts that go into its products.

true

All of the following are elements of lean production, except __________.

varied production levels