SCM - Ch. 6

Firms that service customers from finished goods inventory are known as which of the following

make-to-stock.

The ______ relationship identifies the restrictions imposed by product design and process technologies.

precedence

The calculated theoretical number of workstations should be ______.

rounded up to the next highest integer.

In a project layout, a high degree of ______ is common.

task ordering Reason: In a project layout, a high degree of task ordering is common.

The efficiency of an assembly-line balance must always be less than or equal to ______%.

100

A computer manufacturer offers 3 types of hard disk drives, 2 types of monitors, 4 types of batteries, and 5 choices of operating systems. How many total combinations are possible using these choices?

120 Reason: N = 3 x 2 x 4 x 5 = 120

Which of the following products would use a project layout?

Bridge Reason: A project layout is used for large projects in a specific location.

Which of the following is not one of the five basic work flow structures?

Flow line Reason: The five basic work flow structures are project, workcenter, manufacturing cell, assembly line, and continuous process.

A ______ ______ layout uses dedicated areas for production of similar products.

Manufacturing cell

Which layout format groups machines to work on products that have similar processing requirements?

Manufacturing cell

Which of the following is one of the dimensions depicted on a product-process matrix?

Volume Reason: The product-process matrix has two dimensions - product volume and product standardization.

In an organizational context, break-even analysis is also known as ______.

cost-volume-profit analysis

A manufacturing cell is generally made up of ______machines.

dissimilar

When parts are moved on a conveyor that passes a series of workstations in a uniform time interval, this is called the ___.

workstation cycle time

The time between successive units coming off the end of an assembly line is referred to as

workstation cycle time.

Standardization on the product-process matrix refers to

variations in the product.

Which are characteristics of a continuous process line?

-Shutdowns can be expensive. -May operate 24 hours a day. -Highly automated machinery is used. Reason: Continuous process lines use automated machinery that normally runs 24 hours a day, and shutdowns can be costly.

To determine the required workstation cycle time, an analyst needs to know the ______ ______ per day and the required ______ per day (in units).

-product line -output

Rank the production process layouts from lowest- to highest-volume (top to bottom).

1. Project 2. Workcenter 3. Manufacturing cell 4. Assembly line

Match each inventory measure with its definition.

1. Total average value of inventory: Sum of raw material, work-in-process, and finished goods inventory 2. Inventory turn: Cost of goods sold/Average inventory 3. Days-of-supply: Average inventory/Cost of goods sold x 365

Last year a firm had an average inventory of $1,500,000 and the cost of goods sold was $3,750,000. What was the days-of-supply last year?

146 Reason: Days-of-Supply = Average inventory/ cost of goods sold×365=$1,500,000/ $3,750,000×365=146

Last year a firm had an average inventory of $1,500,000 and the cost of goods sold was $3,750,000. What was the inventory turn last year?

2.5 Reason: Inventory turn = Costofgoodssold / Averageinventory = $3,750,000/ $1,500,000=2.5

An assembly line must produce 1,000 units in an 8 hour day. Assuming the line operates continuously, what is the required workstation cycle time?

28.8 seconds Reason: C = Production time per day/Required output per day(in units) = 8hours/day×60minutes/hour×60seconds/minute/1,000units = 28.8 seconds/unit

If the sum of all task times is 100 seconds and the required cycle time is 21 seconds, what is the theoretical minimum number of workstations?

5 Reason: Nt = Sum of task times/Required cycle time= 100/21 = 4.76 - round up to 5.

For an assembly-line system with 6 workstations, the cycle time is 27 seconds and the sum of task times is 120 seconds. What is the efficiency of this balance?

74.1% Reason: Efficiency = Sumoftasktimes / Actualnumberofworkstations×Cycletime=120/6×27=120/162=0.741=74.1%

Which of the following is NOT true about a workcenter layout?

A workcenter layout is commonly used for systems with high production volumes. Reason: Workcenter layouts are generally used for low volume systems that produce a variety of products.

An ______ ______ arranges processes according to the sequence of steps by which the product is manufactured.

Assembly line

Which common layout format refers to the progressive build of a product?

Assembly line

Which layout moves product from workstation to workstation at a controlled rate?

Assembly line

Which the following describes the layout for items produced through a fixed sequence of workstations?

Assembly line

______ is used to avoid expensive shut downs by operating 24 hours a day.

Continuous process

With which of the following goods would a continuous process be used?

Chemicals

Which process layout is best used for manufacturing liquids?

Continuous Reason: Continuous process is used for manufacturing items such as liquids, chemicals, and drugs.

Which of the following is not a step required to make a good?

Decoupling Reason: The steps required to make a good are sourcing, making, and delivering.

Which of the following is NOT a step in the process of developing a manufacturing cell?

Determine which machines perform the same process. Reason: A manufacturing cell is generally made up of dissimilar machines, set up by family, and grouped into cells.

True or false: The total work at a workstation is equal to the sum of all tasks to complete a product.

False Reason: Total work at a workstation is equal to the sum of all tasks assigned to that workstation.

Identify the true statements about assembly-line and continuous process layouts.

In a continuous process, a product moves continuously through the process. Often, the item being produced in a continuous process is a liquid or chemical that actually flows through the system. In an assembly line, a product goes through a progressive set of steps.

Little's law relates inventory, throughput rate, and flow time as

Inventory = Throughput rate x Flow time

Which of the following statements about inventory measures is TRUE?

Inventory turn compares cost of goods sold to average inventory. Days-of-supply measures how long (on average) a firm's inventory can support sales.

The long-term relationship between inventory, throughput, and flow time is mathematically related using ______'s law.

Little

A map showing the flow of materials through a manufacturing system is known as a ______-to-______ process map.

Make-to-stock

The issue of balancing the level of finished inventory against the level of service to the customer occurs in which type of firm?

Make-to-stock

Which type of firm invests in lean manufacturing programs in order to improve customer service levels for a given inventory investment?

Make-to-stock

The ______-______ matrix shows when different production process types are used in relation to product volume and standardization.

Product-process

In which production system does the product remain in one place while resources (such as workers or equipment) travel to the product when needed?

Project layout

______ techniques are typically used to manage production processes that follow a project layout structure.

Project management

Which of the following is not a step in the process to balance an assembly line?

Randomly assign tasks to workstations.

Which of the following describes the step where parts are procured from one or more suppliers?

Sourcing

True or false: Typically, there is a trade-off where quicker response to customer demand comes at the expense of greater inventory investment.

True

True or false: The longest required task time often defines the shortest possible workstation cycle time for production.

True Reason: The longest required task time often defines the shortest possible workstation cycle time.

A ______ line layout can increase operator access and improve workstation time.

U-shaped

Which of the following is not a way to reduce the required time for a task?

Use a less skilled worker

Firms invest in lean manufacturing programs in order to

achieve high customer service with minimum levels of inventory investment.

Workcenters with large amounts of interdepartmental traffic are often placed

adjacent to each other.

A flexible line layout may improve assembly-line balance by

allowing work sharing among employees.

In an organizational context, the main purpose of break-even analysis is to ______.

ascertain the quantity at which the initial investment starts to make a profit

Customer order decoupling points

can impact inventory investment. determine lead times.

The point in the supply chain where inventory is positioned to allow the preceding processes to operate independently is the

customer order decoupling point.

Lead time can vary based on Blank______.

customization of the product being produced. location of the manufacturing facility.

Inventory turn is calculated by

dividing cost of goods sold by average inventory value. Reason: Inventory turn = Cost of goods sold / Average inventory

The required workstation cycle time is determined by

dividing the production time per day by the required output per day. Reason: C = Production time per day /Required output per day(in units)

The time required to respond to a customer order is known as

lead time.

The practice of achieving high levels of customer service with a minimal inventory investment is known as ______ manufacturing.

lean

When attempting to balance an assembly-line, the amount of idle time across workstations should be Blank______.

minimized

If inventory turn is known, days-of-supply is calculated by

multiplying the inverse of inventory turn by 365 days.

In an assemble-to-order system, the total number of unique combinations possible is calculated by

multiplying the number of options for each choice together.

Workcenters are often structured to ______ the movement of material.

optimize

On an assembly-line, the order in which tasks must be performed is called the ______.

precedence relationship

A production process map is built by

tracking the flow of material through the system.

In a ______ layout, machines are grouped according to type or function and parts travel to the appropriate location for processing.

workcenter