Operations Management Final (Ch9-12)

The main advantage of a product-oriented layout is typically

E) low variable cost per unit.

Which of the following statements regarding control of service inventories is true?

Effective control of all goods leaving the facility is one applicable technique.

A fabrication line and an assembly line are both types of repetitive and product-focused layout, but only the fabrication line utilizes workstations.

False

ABC analysis classifies inventoried items into three groups, usually based on annual units or quantities used.

False

According to the global company profile, Amazon.com's advantage in inventory management comes from its almost fanatical use of economic order quantity and safety stock calculations.

False

At the economic order quantity, holding costs are equal to product costs.

False

CRAFT is software for balancing assembly lines.

False

Process-oriented layouts typically have low levels of work-in-process inventory.

False

Product-oriented layouts tend to have high levels of work-in-process inventories.

False

The balancing of work cells uses the same procedures as the balancing of an assembly line.

False

The dominant problem associated with the fixed-position layout is that workers are fixed in position, and cannot be reassigned.

False

The work cell layout, a special arrangement of machinery and equipment to focus on the production of a single product or group of related products, is for manufacturing applications and has no relevance to services.

False

Utilization of the total "cube" is the dominant consideration in office layout.

False

Which item to order and with which supplier the order should be placed are the two fundamental issues in inventory management.

False

Which of the following is true of random stocking?

It maintains accurate records of existing inventory and its locations.

Which of the following is not one of the factors complicating the techniques for addressing the fixed position layout?

Takt times at workstations are dynamic.

A major challenge in inventory management is to maintain a balance between inventory investment and customer service.

True

A process-oriented layout is the traditional way to support a product differentiation strategy.

True

If setup costs are reduced by substantial reductions in setup time, the production order quantity is also reduced.

True

In ABC analysis, "A" Items are the most tightly controlled.

True

One drawback of a product-oriented layout is that work stoppage at any one point ties up the whole operation.

True

One guideline for a retail layout is to locate high-draw items around the periphery of the store.

True

The most common tactic to arrange departments in a process-oriented layout is to minimize material handling costs.

True

The fixed-position layout would be most appropriate in which of the following settings?

a cruise ship assembly facility

Which one of the following is not common to repetitive and product-oriented layouts?

ability to adjust to changes in demand

The major problem addressed by the warehouse layout strategy is

addressing trade-offs between space and material handling.

Which of the following is not an element of inventory holding costs?

advertising costs

In assembly line balancing, the theoretical minimum number of workstations is

all of the above.

Among the advantages of cycle counting is that it

allows more rapid identification of errors and consequent remedial action than is possible with annual physical inventory.

ABC analysis divides on-hand inventory into three classes, generally based upon

annual dollar volume.

Which of the following is not a retail layout practice?

arbitrarily selecting the position of the lead-off department

A process layout problem consists of 4 departments, each of which can be assigned to one of four rooms. The number of different solutions to this problem is ________, although all of them may not have different material handling costs.

24

An assembly line consists of 158 tasks grouped into 32 workstations. The sum of all task times is 105 minutes. The largest assigned cycle time is 4 minutes. The efficiency of this line is approximately

82%

An assembly line consists of 21 tasks grouped into 5 workstations. The sum of the 21 task times is 85 minutes. The largest assigned cycle time is 20 minutes. The efficiency of this line is

85%

Which of the following statements about ABC analysis is false?

ABC analysis is based on the presumption that all items must be tightly controlled to produce important cost savings.

A disadvantage of product-oriented layout is that

All of the above are disadvantages of product-oriented layouts.

Which of the following is true regarding fabrication lines?

Balancing their assembly line is more technological than worker oriented.

For which of the following operations would a fixed-position layout be most appropriate?

constructing a highway tunnel or bridge

Which of the following is not an advantage of work cells?

decreased use of equipment and machinery

Ambient conditions, spatial layout and functionality, and signs, symbols, and artifacts are all

elements of servicescapes.

One of the major advantages of process-oriented layouts is

flexibility in equipment and labour assignment.

Which of the following is true for process layouts, but false for product-oriented layouts?

flexibility in equipment and labour assignments

Which of the statements below best describes office layout?

groups workers, their equipment, and spaces/offices to provide for movement of information

The concept of customizing in a warehouse layout

is a new trend in value-added activities in warehouses.

All of the following statements about ABC analysis are true except

it states that all items require the same degree of control.

A big advantage of a process-oriented layout is

its flexibility in equipment and labour assignments.

In a product-oriented layout, the process of deciding how to assign tasks to workstations is referred to as

line balancing.

Which of the following does not support the retail layout objective of maximizing customer exposure to products?

maximize exposure to expensive items

Retail layouts thrive on the notion that

maximizing customer exposure rate maximizes sales and profit.

The main goal of retail layout is

maximizing profitability per square foot of floor space.

In assembly line balancing, cycle time (the ratio of available production time to scheduled production) is the

maximum time that a product is allowed at each workstation.

The typical goal used when developing a process-oriented layout strategy is to

minimize the material handling costs.

The major problem addressed by the process-oriented layout strategy is

minimizing difficulties caused by material flow varying with each product.

The central problem in product-oriented layout planning is

minimizing the imbalance in the work loads among workstations.

A production line is to be designed for a product whose completion requires 21 minutes of work. The factory works 400 minutes per day. Can an assembly line with five workstations make 100 units per day?

no, it will fall short even with a perfectly balanced line

Which of the following constitutes a major trend influencing office layouts?

off-site employees

Because problems with fixed-position layouts are so difficult to solve well onsite, operations managers

often complete as much of the project as possible off-site.

A production line is to be designed to make 500 El-More dolls per day. Each doll requires 11 activities totaling 16 minutes of work. The factory operates 750 minutes per day. The required cycle time for this assembly line is

one and one-half minutes.

The layout strategy that deals with low-volume, high-variety production is

process-oriented layout.

The assumption of stability of demand is important for justifying which of the following layout types?

product-oriented layout

Which layout type assumes an adequate volume for high equipment utilization?

product-oriented layout

Which of these layouts is most suitable for processing sugar from sugar beets or sugar cane?

product-oriented layout

Cycle counting

provides a measure of inventory accuracy.

Which of the following is a common heuristic for assembly line balancing?

ranked positional weight

Which of the following layouts generally has the best machine utilization?

repetitive and product-oriented layout

A product-oriented layout would be most appropriate for which one of the following businesses?

steel-making

Which of the following is not one of McDonald's "seven major innovations"?

the Happy Meal

Solving a load-distance problem for a process-oriented layout requires that

the difficulty of movement be the same for all possible paths.

Takt time is

the total work time available divided by units required by the consumer.

One disadvantage of process-oriented layouts arises from

the use of the general purpose machines and equipment.

ABC analysis is based upon the principle that

there are usually a few critical items, and many items which are less critical.

Which of the following would not generally be a motive for a firm to hold inventories?

to minimize holding costs

Balancing low-cost storage with low-cost material handling is important in a(n)

warehouse layout.