Chapter 11 Quiz

A firm has redesigned its production process so that it now takes 9 hours for a unit to be made. Using the old process, it took 13 hours to make a unit. If the process makes two unit each hour on average and each unit is worth $1,500. What is the reduction in work-in-process (inventory) value?

$12,000

Consider a three sequentially stepped process named as Process A, Process B and Process C. Input comes into Process A. Output form A goes into Process B. Output from B goes into Process C. Output of C is the final output. Suppose that it takes 2 minutes per unit in Process A, 3 minutes per unit in Process B and 1 minute per unit in Process C. What will be maximum steady state output from this system?

20 per hour

Wally's Widget Warehouse takes orders from 7 A.M. to 7 P.M. The manager wants to analyze the process and has provided the process flow diagram shown below. There are three steps required to ship a customer order. The first step is to take the order from a customer. The second step is to pick the order for the customer, and then they have to pack the order ready for shipping. What is the current maximum daily output of the process assuming that no one works overtime? (i.e., meaning all three operations work a 12-hour shift)

900 units

To reduce process flow time, you might try which of the following actions?

All of these (Perform activities in parallel, Change the sequence of activities, Reduce interruptions, Acquire additional equipment.)

Throughput rate of a production process is the amount of time a unit spends actually being worked on.

False *Throughput rate is the output rate that the process is expected to produce over a period of time.

When a make-to-order production process is used, production is based on forecasts.

False Make-to-order process is activated only in response to an actual order.

A process is part of an organization that takes _________________, turns them into _______________, and adds ___________________ while doing so.

Inputs, outputs, value

An advantage of a make-to-stock process is which of the following?

It features rapid delivery of a standard product.

A manufacturing company has a small production line dedicated to the production of a particular product. The line has four stations in serial. Inputs arrive at station 1 and the output from station 1 becomes the input to station 2. The output from station 2 is the input to station 3 and so on. The output from station 4 is the finished product. Station 1 can process 2,700 units per month, station 2 can process 2,500/month, station 3 can process 2,300/month, and station 4 2,100/month.

Station 4, 2,100/month

Buffering in a production process refers to a storage area between stages of production activity where output of a stage is placed prior to being used in a "downstream" stage.

True

If you want to reduce process flow time, it has been suggested that you can reduce interruptions in the production process.

True Many processes are performed with relatively large time intervals between the activities. For example, purchase orders may be issued only every other day. Individuals preparing reports that result in purchase orders should be aware of deadlines to avoid missing them, because improved timing in these processes can save many days of flow time.

According to Little's Law, which of the following ratios should be used to find Throughput Time?

Work-in-process.throughput rate

A process flowchart uses which of the following symbols to represent a decision point in a flow diagram?

diamond

Which of the following production process terms best describes the situation when activities in a stage of production must stop because there is no work?

starving