Exam 6: Production Processes

The essential issue in satisfying customers in the make-to-stock environment is to balance the cost of the finished item against the willingness of the consumer to pay for it.

Which of the following is not a basic type of process structure?

Assembling-to-order means moving the customer order decoupling point from finished goods to components.

Which of the following basic types of process structures is one which equipment or work processes are arranged according to the progressive steps by which the product is made?

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

Break-Even Analysis can be used to help decide whether to perform a task with a special purpose machine or with a general purpose machine.

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

The closer the customer is to the customer order decoupling point the more quickly the customer receives the product.

Assume that you are offered a new piece of equipment for $10,000.The equipment will produce 10,000 units per year with a margin of $6.00 per unit.Demand for the product being produced has been 2,000 units per year.Your current equipment is fully depreciated and can produce the 2,000 units per year at but at a margin of only $4.00 per unit.Should you purchase the new equipment? Under what conditions?

Assume a fixed cost for a process of $120,000.The variable cost to produce each unit of product is $35, and the selling price for the finished product is $50.Which of the following is the number of units that has to be produced and sold to break-even?

Which of the following is a basic type of process structure?

A manufacturer has identified the options for acquiring a machined part.It can make the part on a numerically controlled lathe for $150 per unit (including materials.) It can make the part on a standard lathe for $250 per unit (also including materials.) It can make the part on a machining center for $50 per unit (also including materials.) The manufacturer can acquire a standard lathe for $10,000.It could acquire

Describe the implications of the product-process matrix for process design in a competitive situation.

Assume a fixed cost for a process of $100,000.The variable cost to produce each unit of product is $10, and the selling price for the finished product is $50.Ignoring inventory, how many units must the firm sell to break-even?

The choice of which process structure to select is generally a function of the volume requirements for the product.

The placement of which of the following is not determined by process structure decisions?

A continuous process indicates production of discrete parts moving from workstation to workstation at a controlled rate.

A project layout is characterized by a high degree of task ordering.

The essential issue in satisfying customers in the make-to-stock environment is to balance the level of finished inventory against the level of service to the customer.

Assume a fixed cost for a process of $100,000.The variable cost to produce each unit of product is $10, and the selling price for the finished product is $50.Ignoring inventory, how many units must the firm sell to break-even?