Chapter 6: Learning Curves

True or false: The customer order decoupling point is where inventory is positioned in the supply chain

True

Firms that service customers from finished goods inventory are known as

make-to-stock firms

There are dimensions depicted on a product-process matrix.

2

If a car has four engine choices, three transmission choices, and five entertainment choices, there are total number of combinations.

60

Product-process matrix

A framework depicting when the different production process types are typically used, depending on product volume and how standardized the product is.

Continuous process

A process that converts raw materials into finished product in one continuous process.

Assemble-to-order

A production environment where preassembled components, subassemblies, and modules are put together in response to a specific customer order.

Make-to-stock

A production environment where the customer is served "on-demand" from finished goods inventory.

Make-to-order

A production environment where the product is built directly from raw materials and components in response to a specific customer order.

Assembly line.

A setup in which an item is produced through a fixed sequence of workstations, designed to achieve a specific production rate

Project layout

A setup in which the product remains at one location, and equipment is moved to the product.

An is where work processes are arranged according to the progressive steps by which the product is made.

Assembly Line

Which of the following would be recommended by the product-process matrix for the highest product standardization?

Continuous

Which of the following would be recommended by the product-process matrix for high volumes?

Continuous/Assembly line

Manufacturing cell

Groups dissimilar machines to work on products that have similar shapes and processing requirements.

Engineer-to-order

Here the firm works with the customer to design the product, which is then made from purchased material, parts and components.

Engineer-to-order

Here the firm works with the customer to design the product, which is then made from purchased material, parts, and components.

The higher the fixed cost, the the break-even volume.

Higher

The number of finished products is usually substantially than the number of components combined to produce the finished product.

Higher

time is the time needed to respond to a customer order.

Lead

The time needed to respond to a customer order is called the

Lead time

Many make-to-stock firms invest in manufacturing programs in order to achieve higher service levels for a given inventory investment.

Lean

The higher the per unit revenue, the the break-even volume.

Lower

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

Make-to-stock

Workcenter

Often referred to as a job shop, a process structure suited for low-volume production of a great variety of nonstandard products. Workcenters sometimes are referred to as departments and are focused on a particular type of operation.

Which of the following is not used in a break-even calculation?

Overhead costs

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

Product standardization

In a layout, the product remains in a fixed location.

Project

Lean manufacturing

To achieve high customer service with minimum levels of inventory investment.

Customer order decoupling point

Where inventory is positioned in the supply chain.

The customer order point determines where inventory is positioned to allow processes or entities in the supply chain to operate independently.

decoupling

Place the following production methods in order starting with the one having inventory closest to the customer and then moving back to the one with inventory closest to the source.

make to stock assemble make to order engineer to order

Place the following production methods in order starting with the shortest lead time and moving to the longest lead time.

make to stock assemble make to order engineer to order

In the make-to-order and engineer-to-order environments, the customer order decoupling point could be in either raw materials at the manufacturing site or possibly even with the inventory.

supplier