SCM 352 - CH. 7

A difference between project and continuous flow categories of process flow structures is which of the following? A. The size and bulk of the product B. Discrete parts moving from workstation to workstation C. Degree of equipment specialization D. Being a "virtual factory" E. Profit per unit

A

Which of the following is not a basic type of process structure? A. Product-process matrix B. Work center C. Manufacturing cell D. Assembly line E. Continuous process

A

In a work center, machine A has a 10-minute set-up time per batch and a 2-minute per unit run time. Machine B performs the identical function but has a set-up time of 30 minutes and a 1-minute run time per unit. The work center makes products in batches ranging from 1 unit to 100 units. Assuming capacity is not a limitation on either machine, in order to minimize the total processing time, on which batches should machine B be used? A. All batches should be run on machine B. B. Batches of more than 20 units should be run on machine B. C. Batches of fewer than 80 units should be run on machine B. D. Batches with up to 50 units should be run on machine B. E. No batches should be run on machine B.

B

Which of the following basic types of process structures is one in which similar equipment or functions are grouped together? A. Project B. Work center C. Manufacturing cell D. Assembly line E. Continuous process

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? A. The company will recover its initial investment. B. The company's total margin will be less than its investment. C. It is a good investment. D. The break-even is lower than the 15,000 units that are expected to sell. E. All of these

B

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? A. 5,000 units B. 6,000 units C. 8,000 units D. 11,000 units E. 12,000 units

C

Which of the following basic types of process structures is one in which equipment or work processes are arranged according to the progressive steps by which the product is made? A. Project B. Work center C. Manufacturing cell D. Assembly line E. Continuous process

D

Which of the following is a basic type of process structure? A. Process flow diagram B. Product matrix C. Process matrix D. Work center E. Manual assembly

D

Which of the following is not a step in developing a manufacturing cell layout? A. Grouping parts into families that follow a common sequence of steps B. Identifying dominant flow patterns of parts families as a basis for location of processes C. Physically grouping machines and processes into cells D. Disposing of leftover machinery and outsourcing ungrouped processes E. None of these

D

Which of the following is not considered a major work flow structure? A. Work center B. Project C. Assembly line D. Fabrication E. Continuous flow

D

38. The placement of which of the following is not determined by production process organization decisions? A. Departments B. Work groups C. Workstations D. Machines E. Emergency exits

E

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? A. 500 units B. 667 units C. 790 units D. 900 units E. 1,000 units

E