Exam 14: Products and Processes

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Project manufacturing is mostly used for large, complex projects such as ships or buildings.

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Sometimes called a fishbone or an Ishikawa diagram, the cause- and- effect diagram is useful for identifying root causes.

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Job________ trains workers to do several jobs so they can be moved from one job to another.

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Given the following fixed and variable costs and the volumes, calculate the total and unit costs. Fixed costs Variable costs Volume in units Total cost Unit cost \ 200 \ 10 100 \ 200 \ 7 1000 \ 50 \ 15 20 \ 1,000 \ 1 2000 \ 500 \ 20 500

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A manufacturer has a choice of purchasing and installing a drilling machine having the drill work done by an outside supplier. For the in- house drilling the fixed costs are $100,000 with a variable cost of $12. To purchase outside, the variable costs are $20 per unit. What is the cost equalization point. Should the company have the heat treating done outside if the annual volume is 1,000 units? 10,000 units?

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Standardization of parts is a major characteristic of modern mass production.

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In intermittent manufacturing, goods are not made continuously as in a flow system but are made at intervals in lots or batches.

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What are some of the reasons to purchase externally as opposed to making in- house)?

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What is product standardization and why is it important?

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Costs that vary with the quantity produced are fixed costs.

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Indicators that show areas most needing improvement include:

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To find a better method when analyzing a process:

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________are the resources used in changing inputs to outputs.

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Identify the six steps in the the CPI process.

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In continuous process improvement, the first step is:

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An example of the vital few is:

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The cost equalization point is the volume for which total cost and unit cost) of using one method is the same as another.

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Discuss the use of special- purpose machinery.

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Given the following fixed and variable costs and the volumes, calculate the total and unit costs. Fixed costs Variable costs Volume in units Total cost Unit cost \ 1000 \ 12 1000 \ 2500 \ 17 100 \ 500 \ 150 2 \ 1,500 \ 19 21 \ 50 \ 200 50

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One of the features of CPI is team involvement.

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