Exam 10: Location and Layout

Identify and briefly explain four of the dominant factors that influence location decisions for new manufacturing facilities.

Relative to product layouts, an advantage of process layouts is that production planning and control is generally less difficult.

The operations manager has narrowed down the search for a new plant to three locations. Fixed and variable costs follow: Location Fixed Costs Variable Costs Per Year Per Unit A 70,000 25 B 120,000 22 C 250,000 17 Plot the total cost curves in the chart provided below, and identify the range over which each location would be best. Then use break- even analysis to calculate exactly the break- even quantity that defines each range. $73$ a. What is the break- even quantity between A and B? b. What is the break- even quantity between B and C?

Euclidean distance is the distance between two points with a series of 90 degree turns.

When outbound transportation costs are a dominant factor, manufacturing facilities should be located close to suppliers and resources.

The process layout organizes resources according to the function. Which one of the following is a characteristic of a process layout?

One dominant factor in locating manufacturing facilities is a favorable labor climate.

The production of a product consists of seven work elements. The desired output rate is 2 units per minute. The work elements and their precedence relationships follow. Work Element Time (sec) Immediate Predecessor(s) 1 15 - 2 16 1 3 12 2 4 14 3 5 18 2,4 6 12 5 7 20 4 Using the longest work- element time method, how many stations are required?

Table 10.14 The department of philosophy at a university in Oregon must allocate six faculty members to their new offices. The following trip matrix indicates the expected number of contacts per day made between professors. Also shown on the right is a sketch of the available office spaces (1 through 6) for the six faculty members. Assume equally sized offices. The distance between office 1 and office 2 (as well as the distance between office 1 and 3) is one unit of distance. Please measure by rectilinear distance. \@cdots 0 4 0 0 0 - 0 12 0 10 - 2 7 0 - 0 4 - 0 \@cdots Layout of Available Offices 1 2 3 4 5 6 -Use the information in Table 10.14. What is the local- distance score if the faculty members are assigned as follows? (Still assume rectilinear distance.)

Table 10.19 The Illinois Appliance Company is installing a line to produce a vacuum cleaner, and you, as the operations manager, are responsible for designing the line. The line has to produce 30 units per hour. The work elements to be performed are as follows, with the time needed and immediate predecessor(s) also shown. Work Element Time () Immediate Predecessor(s) A 55 -- B 45 A C 25 B D 20 B E 40 B F 50 D G 70 D H 45 F, G I 20 E J 80 H, I -Use the information in Table 10.19. What is the theoretical minimum number of stations?

Table 10.19 The Illinois Appliance Company is installing a line to produce a vacuum cleaner, and you, as the operations manager, are responsible for designing the line. The line has to produce 30 units per hour. The work elements to be performed are as follows, with the time needed and immediate predecessor(s) also shown. Work Element Time (sec) Immediate Predecessor(s) A 55 -- B 45 A C 25 B D 20 B E 40 B F 50 D G 70 D H 45 F, G I 20 E J 80 H, I -Use the information in Table 10.19. If you balance the line using the longest work- element time rule, which elements are assigned to station 2?

Secondary location factors are derived from competitive priorities.

What is the difference between relative location and absolute location? Which is more closely linked to materials handling?

Table 10.11 A company of four departments has the following trip matrix and current locations of all departments: -Use the information in Table 10.11. What is the load- distance score for the current layout? (Assume rectilinear distance and that the distance between departments A and B is one unit of distance.)

The operations manager has narrowed down the search for a new plant to three locations. Fixed and variable costs follow: Location Fixed Cost per Year Variable Cost per Unit \ 75,000 \ 31 250,000 12 300,000 15 Plot the total cost curves in the chart provided below, and identify the range over which each location would be best. Then use break- even analysis to calculate exactly the break- even quantity that defines each range. Anmul Cost (\ 000) Which of the following statements is correct?

Table 10.4 Table 7.4 A company has determined the "demand points" and their relative locations as follows: Coordinates Demand Point Demand 10 10 100 10 20 200 15 10 150 20 10 200 -Using the information in Table 10.4. If a company desires to locate a manufacturing facility at the center of gravity, what would be the x- and y- coordinates of the facility?

This clustering of non- competing firms can create a(n) _______ whereby facilities exchange or transfer wastes, recycle materials, and use each other's by products.

Which of the following group of location factors was NOT found to dominate location decisions for new U.S. manufacturing plants?

Break- even analysis can help a manager compare location alternatives on the basis of qualitative factors.

McKenna Restaurant wishes to open a new store. Based on the following subjective criteria, where should the new store be located? Factor Score by Location Factor Weight Markets 35 8 10 6 8 Quality of Life 25 6 4 8 6 Transportation 20 4 6 8 4 Suppliers 20 8 6 8 6