SCM CHAPTER 6

Workcenter layouts allocate dissimilar machines into cells to work on products that have dissimilar processing requirements

(F) -A workcenter layout, sometimes referred to as a job shop, is where similar equipment or functions are grouped together.

Process selection refers to the strategic decision of selecting which kind of production processes to use to produce a product or provide a service.

(T) -Process selection refers to the strategic decision of selecting which kind of production processes to use to produce a product or provide a service.

In a workcenter, machine A has a ten minute set-up time per batch and a two minute per unit run time. Machine B performs the identical function but has a set-up time of thirty minutes and a one minute run time per unit. The workcenter makes products in batches ranging from one unit to one hundred units. Assuming capacity is not a limitation on either machine, on which batches should machine B be used?

All batches should be run on machine B X Batches of more than 20 units should be run on machine B Batches of fewer than 80 units should be run on machine B Batches with up to 50 units should be run on machine B No batches should be run on machine B

Which of the following basic types of process structures is the one in which equipment or work processes are arranged according to the progressive steps by which the product is made?

Assembly line

The time needed to respond to a customer's order is called the customer response time

FALSE

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?

Q = 15000/(25-10) = 1,000 $25 - $10 = $15. $15,000/$15 = 1,000 units.

A project layout is characterized by a relatively low number of production units in comparison with process and product layout formats.

TRUE

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

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

TRUE

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

TRUE

Which of the following is not considered a major process flow structure?

fabrication

Which of the following basic types of process structures is the one in which similar equipment or functions are grouped together?

workcenter

Which of the following is a basic type of process structure

workcenter