Exam 3: Product Design and Process Selection

Pre-fabricated furniture with choices of fabric colors is an example of which product and service strategy?

A technology which uses sensor tags to monitor perishable products is:

Costs that are proportional to the amount of units produced, such as materials and labor, are

Which of the following is not a step in product design?

Which product and service strategy is typically seen in repetitive operations?

Remanufacturing is the concept of using components of old products in the production of new ones.

Frank's manufacturing firm has determined that the industry standard process velocity time is 15 seconds. Frank's OM engineer has determined that their process velocity time is 17 seconds with a throughput time of 136 seconds. If the throughput time cannot be changed, what, how much, and by which direction does the value added time need to change so Frank's manufacturing can match the industry standard process velocity?

One issue that design for manufacture focuses on is material durability.

Tom's hazardous material movement company limits the number of hours an individual works to 8.5 a day. Each hazardous material handler product movement time has been stopwatch analyzed to take 240 seconds. What is the hazardous material handler utilization if they make 110 moves a day?

Product design and process selection decisions are typically made separately.

If a firm has fixed costs of $250,000, a market-based selling price of $50 per unit, and it expects to sell 20,000 units, how low must its variable costs be to break even?

In break-even analysis, what is the break-even point?

Design standardization refers to the use of common and interchangeable parts.

Company A has a great idea for a product. What is the first step for Company A?

Compared to intermittent operations, repetitive operations

What is a process flowchart?

Intermittent operations group their resources based on

Languages, Inc. manufactures hand held computers that translate between two languages. Based on their market research, they have developed computers for French/English, German/English, and Spanish/English. The process for making the computers will have fixed costs of $2,000,000 per year and variable costs of $50 per computer. The company believes that it can sell at least 40,000 computers per year. a) What should the price per computer be if the company wants to break even at a volume of 40,000 computers per year? b) If they sell 60,000 computers at a price of $90 per computer, what will the contribution to profit be?

Blaster Radio Company is trying to decide whether or not to introduce a new model. If they introduce it, there will be additional fixed costs of $400,000 per year. The variable costs have been estimated to be $20 per radio. a) If Blaster sells the new radio model for $30 per radio, how many must they sell to break even? b) If Blaster sells 70,000 of the new radio model at the $30 price, what will the contribution to profit be?

What refers to the use of common and interchangeable parts?