Exam 7: Measuring and Managing Process Performance

Narly Skateboards manufactures three different product lines, Base, Long, and Trick. Considerable market demand exists for all models. The following per unit data apply: -Which model has the greatest contribution margin per unit?

Vander Belt Manufacturing, Inc., is considering reorganizing its plant into manufacturing cells. The following estimates have been prepared to evaluate the benefits from the reorganization: Inventory carrying costs are estimated to be 11% per year. -After the change,work-in-process inventory carrying costs are projected to decrease because of:

Global competition led to the development of international quality standards such as ISO 9000 Standards.

Work-in-process inventory generally decreases after the implementation of a just-in-time inventory system.

The theory of constraints focuses on long-term initiatives to increase operating income.

________ starts with the estimated product costs and next determines the estimated selling price.

The buildup of inventories decreases the cycle time of production.

Vander Belt Manufacturing, Inc., is considering reorganizing its plant into manufacturing cells. The following estimates have been prepared to evaluate the benefits from the reorganization: -As a result of the layout reorganization,reduced levels of work-in-process inventory are projected to decrease inventory carrying costs annually by:

The quality movement was pioneered by:

Standard costing includes:

In ________,the plant is organized into areas where all machines used to manufacture a group of similar products are close to each other.

Vander Belt Manufacturing, Inc., is considering reorganizing its plant into manufacturing cells. The following estimates have been prepared to evaluate the benefits from the reorganization: -After the change,sales are projected to increase because:

Constraints from the theory of constraints may include:

When using a just-in-time manufacturing,a problem anywhere in the system can stop all production.

Narly Skateboards manufactures three different product lines, Base, Long, and Trick. Considerable market demand exists for all models. The following per unit data apply: -Which model has the greatest contribution margin per machine-hour?

Quality engineering costs are an example of:

Distinguish between internal failure costs and external failure costs. Give examples of each.

________ include the cost of raw-materials inspections and assembly-line inspections.

After the change,direct labor costs as a percentage of sales are projected to decrease because:

________ is where participants meet openly to discuss their methods,visit each other's sites,and generally have a long-run association.