DSME Lecture 3

Make-to-order production processes are well suited for high-volume production of a standardized product.

FALSE A highly efficient make-to-stock process that produces standard products that can be delivered quickly.

A diamond is conventionally used in a process flowchart to represent a storage area or queue.

FALSE Decision points are depicted as a diamond with the different flows running from the points on the diamond.

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

Make-to-stock production processes can easily handle requests for customized product features.

FALSE Make-to-stock production processes are highly efficient processes that produce standard products that can be delivered quickly.

The closer the customer is to the customer order decoupling point, the longer it takes the customer to receive the product.

FALSE Selection of decoupling points is a strategic decision that determines customer lead times and can greatly affect inventory investment. The closer this point is to the customer, the quicker the customer can be served.

A service operation by its very nature is a make-to-stock type of production process.

FALSE Services by their very nature often use make-to-order processes.

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

FALSE The throughput rate is the output rate that the process is expected to produce over a period of time.

Engineer-to-order firms will work with the customer to design the product and then make it from purchased materials, parts, and components

TRUE An engineer-to-order firm will work with the customer to design the product and then make it from purchased materials, parts, and components.

Assemble-to-order means moving the customer order decoupling point from finished goods to components.

TRUE Assemble-to-order derives significant advantages from moving the customer order decoupling point from finished goods to components.

A rectangle is conventionally used in a process flowchart to represent a task or operation.

TRUE Tasks are shown as rectangles.

The essential issue in satisfying customers in the make-to-stock environment is to balance the level of finished inventory against the level of service to the customer.

TRUE The essential issue in satisfying customers in the make-to-stock environment is to balance the level of finished inventory against the level of service to the customer

The focus in the make-to-stock environment is on providing finished goods where and when the customers want them.

TRUE The focus in the make-to-stock environment is on providing finished goods where and when the customers want them

Utilization of a production process is the ratio of time that a resource is actually being used relative to the time it is available for use.

TRUE Utilization is the ratio of the time that a resource is actually activated relative to the time that it is available for use.