OPMA 3306-Chapter 6- Practice Questions

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

D. Workcenter

Assume a fixed cost for a process of $15,000. The variable cost to produce each unit of product is $10 and the selling price for the finished product is $25. Which of the following is the number of units that has to be produced and sold to break-even?

E. 1,000 units $25 - $10 = $15. $15,000/$15 = 1,000 units.

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

E. Emergency exits

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

FALSE

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

FALSE

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

Using the assembly-line balancing procedure, which of the following is the required cycle time if the production time in minutes per day is 1440 and the required output per day in units is 2000?

A. 0.72 Using equation 6.3, 1,440 minutes/2000 units = 0.72 minutes per unit.

Using the assembly-line balancing procedure, which of the following 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?

A. 3 Using equation 6.4, (4 + 6 + 7 + 2 + 6 + 5)/10 = 3.

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

You have just determined the actual number of workstations that will be used on an assembly line to be 6 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 25 minutes. Which of the following is the correct value for the resulting line's efficiency?

B. 0.833 Using equation 6.5, [25/(6 x 5)] = 0.833.

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 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

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

D. Fabrication

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

D. Inventory/Flow time

When balancing an assembly line, which of the following is not a way to reduce the longest task time below the required workstation cycle time?

D. Speed up the assembly line transfer mechanism

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

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

TRUE

In a workcenter, 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 workcenter 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?

B. Batches of more than 20 units should be run on machine B

You are hired as a consultant to decide if your client should purchase a new, highly specialized, piece of equipment. The product to be produced by this equipment is forecast to have a total worldwide demand of 15,000 units over the entire product life. The initial investment to acquire and install the equipment is $256,000. The variable cost to produce each unit will be $15 and the selling price for the finished product will be $30. Which of the following best describes the situation the firm is facing?

B. The company's total margin will be less than its investment

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

B. Workcenter

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 line's efficiency?

C. 0.750 Using equation 6.5, [60/(8 x 10)] = 0.750.

Using the assembly-line balancing procedure, which of the following is the theoretical minimum number of workstations if the task times for the eight tasks that make up the job are 7, 4, 7, 8, 9, 4, 3 and 6 minutes, and the cycle time is 8 minutes?

C. 6 Using equation 6.4, (7 + 4 + 7 + 8 + 9 + 4 + 3 + 6)/8 = 6.

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?

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

Using the assembly-line balancing procedure, which of the following is the required cycle time in minutes per unit if the daily production time is 480 minutes and the required daily output is 50 units?

C. 9.6 Using equation 6.3, 480 minutes/50 units = 9.6 minutes per unit.

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

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

TRUE