Operations Management chapter 6

Process selection is unlikely to occur other than when new products or services are being planned.

False

Product or service profiling is used to ______.

Product or service profiling is used to ______.

Which is the correct formula for the total cost in the quantity discount model?

(Q/2)H + (D/Q)S + PD

A process which relies on additive manufacturing processes to create physical objects by applying successive layers of materials is ______.

3D printing

In the context of operations, which of the following statements best describe a layout?

A schematic diagram with configuration of work centers and equipment showing movement of work through the system.

The ______ approach classifies inventory items according to a measure of importance, such as annual dollar value.

A-B-C

Which of the following statements about the effectiveness of process layouts are correct?

An effective process layout is one that puts departments with high interdepartmental work flow near one another. An advantage of process layouts is their ability to satisfy a variety of processing requirements.

Which of the following are assumptions of the EOQ model?

Annual demand is known. Lead time is known.

Which of the following statements about the A-B-C approach is/are true?

Approximately 10% to 20% of items account for about 60% to 70% of annual dollar value. Its purpose is to identify inventory items that are the most important to the business. It is intended to help firms allocate control efforts based on the relative importance of items in inventory.

Which of the following statements is correct about the disadvantages or risks of Automation in production?

Automation requires high volumes of output.

Which of the following statements is correct about the advantages of automation technology in production?

Automation tends to have low variability in output.

What are the various building factors which may influence process layout design?What are the various building factors which may influence process layout design?

Availability of windows for either desired light or darkness Type of flooring (e.g., "reinforced") Location of the entrance, exit, and loading docks

Which of the following attributes apply to lean process design?

Can result in quicker response times and shorter lead times. Primarily focused on waste reduction Results in reduced inventory and floor space

Lean design is often translated into practice using what type of layouts?

Cellular

Which of the following should an operations manager do if they are using discrete stocking levels?

Choose the stocking level so that the desired service level is equaled or exceeded.

Which of the following are the characteristics of Sustainable Production?

Conserving of energy and natural resources Non-polluting

What are the benefits of using parallel workstations for a bottleneck?

Correct Answer Flexibility Increased work flow

Which of the following is the correct formula for the service level in the single period model with discrete stocking levels?

CsCs+Ce

In layout design, the ideal situation is to do what first?

Develop the layout

The two most useful types of From-To Charts for designing process layouts are which of the following?

Distance between locations & interdepartmental work flow

Which of the following is not a way inventory affects performance measures?

Dividends

Which of the following are examples of Information Technology used in Operations? (Select all that apply)

E-commerce, e-mail and the Internet Bar codes and radio frequency tags on goods for identification and tracking.

What do businesses consider when implementing Sustainable Production? (Select all that apply)

Energy use, efficiency, and waste reduction Worker health and safety Carbon footprint and toxic emissions

Which of the following statements about Process (Functional) layouts is/are correct?

Equipment is arranged by type rather than by processing sequence. Process layouts often use higher skilled labor than Product layouts do. Process layouts are common in Service environments.

What are the outputs of process selection and capacity planning?

Facilities/equipment, Layout, Work Design

True or false: Many of the items that a firm stocks in inventory are generic regardless of the kind of business it engages in.

False

Which of the following statements is true about flexible production systems?

Flexible systems are often more costly and less efficient than non-flexible systems.

Which of the following is an input to process selection and capacity planning?

Forecasting

Which of the following statements about cellular layouts is/are correct?

Has minimal work in process Provides a smooth flow of work through the process with minimal transport or delay Enables companies to produce a variety of products with as little waste as possible

Which of the following statements about inventory costs is/are true?

Holding costs can include the cost of insurance. Ordering and setup costs are treated the same.

Which of the following is/are the basic issue/s of inventory management?

How much to order When to order

In addition to technical constraints, what other factors should be considered when assigning tasks to workstations?

Human factors, equipment, and space limitations

Choose the word(s) below which best describe(s) the work in a Job Shop.

Intermittent Customized

Which of the following statements about the fixed-order-interval model is/are true?

It can produce savings in shipping costs. The order point is fixed.

Which of the following statements about the single-period model is/are true?

It is used for ordering items that have a limited lifespan. It minimizes costs of shortage and excess.

Which statement is true for the economic production quantity (EPQ) model?

It is used when production occurs in batches.

Which of the following statements are true of the Muther Grid used for designing process layouts?

It ranks the importance of the closeness of one department to another. It reads like a mileage chart between cities. It includes a rating for undesirable pairings.

Which of the following statement(s) about Fixed-position layouts is/are correct? (Select all that apply)

Lack of storage space can present problems. Used for Project process type, such as construction projects. Administrative costs of coordinating activities can be significant.

Which of these is true of Layout decisions in operations system design?

Layout decisions require substantial monetary investments

Which of the following statements about inventory management is/are true?

One of the goals is to achieve good customer service. Inventory managers must decide how much to order. One of the goals is to keep inventory costs within reasonable bounds.

Which of the following are assumptions in the economic production quantity (EPQ) model?

Only one product is involved. Usage occurs continually, but production occurs periodically.

Which of the following is correct regarding inventory monitoring under the fixed-order-interval-model?

Only periodic checks of inventory required

Which of the following statements about the EOQ model is/are true?

Orders are placed when there is just enough inventory left to cover the lead time demand. The EOQ minimizes the sum of annual ordering and holding costs.

To achieve a smooth flow of production, this approach identifies a bottleneck task and adds additional workstations there.

Parallel workstations

________ inventory systems take physical inventory counts at fixed intervals and decide how much to reorder of each item.

Periodic

______ inventory systems continuously keep track of changes to the inventory system and a fixed quantity is ordered when the amount on hand reaches a predetermined level. Multiple choice question. Periodic

Perpetual

Supermarkets generally use which of the following layout types?

Process (Functional) layout

Which of the following statements about process technology is NOT true?

Process technology includes the discovery and development of new or improved products.

_____ layouts and _____ layouts represent two ends of a continuum from small jobs to continuous production.

Process, product

A cafeteria line uses which type of service layout?

Product layout

Which of the following factors are requirements for process layout design? (Select all that apply)

Projection of the work flow through the system Location of key utilities in the facility List of departments/work centers and their sizes Key considerations such as adjacency needs between the departments

All of the following terms are associated with Process layouts except which one?

Repetitive processing

All of the following terms are associated with Process layouts except which one?All of the following terms are associated with Process layouts except which one?

Repetitive processing

Which of the following statements about reorder point ordering is/are true?

Safety stock is required if demand is variable. Safety stock is required if lead time is variable.

In the single-period model, what is the key to determining the optimal stocking level?

Service level

Which of the descriptions do NOT apply to cellular layouts?

Stationary product with movable equipment

Which is the definition of holding cost in the EOQ model?

The cost to carry a single unit in inventory for a length of time.

Which of the following is not a reason for using the fixed-order-interval model?

The firm desires to minimize inventory requirements.

What is the definition of a Fixed-position layout?

The item being worked on remains stationary and workers, materials and equipment move as needed.

Which of the following statements about the fixed-order-interval model is/are true?Which of the following statements about the fixed-order-interval model is/are true?

The order point is fixed. It can produce savings in shipping costs.

Which of the following is the main concern in designing process layouts?

The relative locations of the departments

What triggers orders in a fixed-order-interval model?

The time since the last order

Sometimes a small percentage of idle time is better than a perfectly balanced assembly line, i.e., zero idle time. Why might this be the case?

There is variability in worker task completion times. Allows some margin for new workers not yet "up to speed" Absenteeism and worker fatigue and boredom

Identify true statements about the Muther grids.

They allow managers to indicate the relative importance of each combination of department pairs. They allow for subjective input from analysis.

If both the demand rate and lead time are constant, how do the fixed-interval model and the fixed-quantity model compare?

They function identically

Which statement best describes the main objective in designing product layouts?

To arrange workers and machines in the sequence that the operations will be performed.

Which of the following is NOT a normal function of inventory?

To provide an investment vehicle.

In process layout designs, why are departments with high interdepartmental work flow located near one another?

To reduce transportation time between departments

Which of the following statements about quantity discount models is/are true?

Total cost must include product cost to evaluate options. The optimal quantity may not be the same as the EOQ.

The main driver of process selection is customer demand.

True

True or false: Differences between the fixed-order interval and fixed-quantity model only become apparent when variability exists in demand or lead time.

True

True or false: Different layout types can be combined in production in a single facility such as fixed-position and Process.

True

True or false: Product and Service Profiling is defined as linking key product or service requirements to process capabilities.

True

Which statement about From-To Charts is NOT correct?

Which statement about From-To Charts is NOT correct?

The overall objective of inventory management is to achieve satisfactory levels of ______ while keeping inventory ______ reasonable.

customer service; costs

stock is the amount of inventory required to meet expected demand.

cycle

Because firms tend to have about 30 percent of current assets invested in inventory, a reduction in inventories can result in a significant ______.

increase in ROI

A stock or store of goods is _______.

inventory

How much to order, and when to order, are the two basic issues in an _______.

inventory ordering policy

A Job Shop process type is chosen when a volume of high-variety goods are produced with a relatively high degree of flexibility in operation.

lower

Deciding on the way production of goods or services will be organized is ______.

process selection

A smooth and rapid flow of large volumes of goods or services through a system is best achieved with ______.

product layouts

One of the reasons a firm carries inventory is to ______, that is, to achieve constant output and use inventory to meet overly high requirements during seasonal periods.

smooth production requirements

Inventory is a or of goods.

stock store

Which elemental tasks are eligible to be assigned to a resource is based on:

technological constraints.

The two primary questions that guide process selection concern:

variety and volume.