Quiz Answers Operations

Which of the following is not a basic type of production layout format?

Process layout

Which of the following is not a benefit of a manufacturing cell layout?(Page 181 or slide #54)

Reduced cost

Which of the following is not part of "the service triangle"?(see Exhibit 9.1)

Service encounter

You have just determined the actual number of workstations that will be used on an assembly line to be 6 using the assembly-line balancing procedure.The cycle time of the line is 5 minutes, and the sum of all that tasks required on the line is 25 minutes. Which of the following is the correct value for the resulting line's efficiency?

0.833 [25 / (6 x 5)] = 0.833

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?

1,000 units $25-$10 = $15 $15,000 / $15 = 1,000 units

Using the assembly-line balancing procedure, which of the following is the theoretical minimum number of workstations if the task times for the six tasks that make up the job are 4, 6, 7, 2, 6, and 5 minutes, and the cycle time is 10 minutes? (Use equation 8.2; note: this hint will not be given in the exam)

3 (4+6+7+2+6+5) / 10 = 3

Using the assembly-line balancing procedure, which of the following is the required cycle time in minutes per unit if the daily production time is 480 minutes and the required daily output is 50 units?(Use equation 8.1; note: this hint will not be given in the exam)

9.6 480 minutes / 50 units = 9.6 minutes per unit

In studying product-process matrix describing layout strategies, which of the following is most appropriate? (follows from exhibit 7.2)

As you move from project to manufacturing cell to continuous process, product volume increases while standardization increases.

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?

Assembly line

In studying positioning of inventory in supply chains, which, if any, of the following is most appropriate? (follows from exhibit 7.1)

E, A and B are true

The placement of which of the following is not determined by production process organization decisions?

Emergency exits - Emergency exits are determined by safety concerns, not by production process organization decisions

In the service-system design matrix, a face-to-face total customization service encounter is expected to have which of the following?

Low production efficiency

Which of the following are alternative possible service encounters included inthe service-system design matrix?

Mail contract

Which company is mentioned in the text as a pioneering of the production line approach to delivering on-site service?

McDonald's Corporation

Which one of the following is not a major factor distinguishing service design and development from manufacturing design and development?

Service operations can be protected by patents; manufacturing operations cannot.

When balancing an assembly line, which of the following is not a way to reduce the longest task time below the required workstation cycle time?(Page 179 or slide 42)

Speed up the assembly line transfer mechanism

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?

The company's total margin will be less than its investment. Margin per unit = $30 - $15 $15 x 15,000 units = $225,000 Because $225,00 < $256,000 The total projected margin for this products will be less than the investment required

Which of the following is not an element of a good service guarantee?

The customer controls the process

Which of the following is a basic type of process structure?

Work center

Which of the following basic types of production layout formats is one that has similar equipment or functions are grouped together?

Workcenter layout - A workcenter is a format in which similar equipment or functions are grouped together

Suppose that you have two processes A and B for producing a widget. Process A has a fixed cost of $10,000 and per unit variable cost of $80.00. Process B has a fixed cost of $30,000 and the per unit variable cost is $40.00. The widget sells for $100 regardless of production process used. During the next three years (your planning horizon for the widgets) you expect the economy to be pretty good with sales of widgets to be at least 700 units per year. You will

choose process B, since it will have higher net profit than process A in the next three years

Which of the following is not a characteristic of a well-designed service system?

consistency between organization and department

In designing service systems, as you go from mail contact to phone contact to face to face total customization, which of the following is most appropriate?

sales opportunity increases while degree of customer/server contact increases