OPER-3100 exam 2

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

work center layout

the volume requirements for the product are one determinant of the choice of which process structure to select

true

in studying positioning of inventory in supply chains, which, if any, of the following is most appropriate?

- as order decoupling point moves towards source inventory investment goes down - as order decoupling point moves towards the source customer lead time gets longer

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?

.833 (25/(6x5))=.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

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?

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?

9.6 480/50 make sure to multiply by 60 if you need it in seconds

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

McDonald's Corporation

in studying product-process matrix describing layout strategies, which of the following is most appropriate?

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

basic types of production layout format?

assembly line, manufacturing cell layout, work center, project layout

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 A: 700x100-700x80-10000=4000 B: 700x100-700x40-30000=12000

well-designed service system (7 characteristics)

consistent, user friendly, robust, easily maintained, effective links to front and back offices, manages evidence, cost effective

parts of "the service triangle"

customers, employees, service strategy, support systems

a make-to-order firm will work with the customer to design the product and then make it from purchases materials, parts, and components

false

break even analysis can only be used in production equipment decision making when dealing solely with fixed costs, not variable costs

false

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

false

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

false

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

false

benefits of a manufacturing cell layout?

faster production setup, improved operator expertise, better human relations, less in-process inventory and material handling

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

possible service encounters included in the service-system design matrix?

mail contact, internet and on-site technology, phone contact, face-to-face tight specs, face-to-face loose specs, face-to-face total customization

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

which 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, what ways can you reduce the longest task time below the required workstation cycle time?

split the task, share the task, use a more skilled worker, work overtime, redesign, use parallel workstations

three t's used to classify poka-yokes

task, treatment, tangible

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; $15x15,000 units= $225,000

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

the customer controls the process

a manufacturing cell layout is similar to the work center and assembly-line layouts

true

the first step in balancing an assembly line is to specify the precedence relationships among tasks to be performed on the line

true

which of the following is a basic type of process structure

work center

the following are determined by production process organization decisions

work groups, departments, machines, and work stations