Deck 9: Layout Strategies

Question 1

The work cell layout, a special arrangement of machinery and equipment to focus on the production of a single product or group of related products, is for manufacturing applications and has no relevance to services.

Answer 1

False

Question 2

One guideline for determining the arrangement and space allocation of a retail store is to place high-impulse and high-margin items such as housewares and beauty aids in prominent locations.

Answer 2

True

Question 3

The work cell improves process layouts by reducing floor space and by reducing direct labor cost.

Answer 3

True

Question 4

Category management is the use of computer software to evaluate the profitability of merchandising plans.

Question 5

Cross-docking processes items as they are received, rather than placing them in storage; this helps explain why "warehouses" are now called "distribution centers."

Question 6

A fabrication line and an assembly line are both types of repetitive and product-focused layout, but only the fabrication line utilizes workstations.

Question 7

The most common tactic to arrange departments in a process-oriented layout is to minimize material handling costs.

Question 8

Job lots are groups or batches of parts processed together.

Question 9

The objective of layout strategy is to develop an effective and efficient layout that will meet the firm's competitive requirements.

Question 10

The dominant problem associated with the fixed-position layout is that workers are fixed in position, and cannot be reassigned.

Question 11

A process-oriented layout is the traditional way to support a product differentiation strategy.

Question 12

A focused work center is well suited to the production of a large family of products requiring similar processing, even if their demands are not very stable.

Question 13

The layout approach that addresses trade-offs between space and material handling is called the fixed position layout.

Question 14

Servicescape refers to the physical surrounding in which the service is delivered.

Question 15

McDonald's "Made for You" kitchen system represents a strategic layout decision even though an obvious benefit of the system is a dramatic reduction in the inventory of food prepared in advance.

Question 16

CRAFT is software for balancing assembly lines.

Question 17

One guideline for a retail layout is to locate high-draw items around the periphery of the store.

Question 18

The balancing of work cells uses the same procedures as the balancing of an assembly line.

Question 19

Utilization of the total "cube" is the dominant consideration in office layout.

Question 20

Process-oriented layouts typically have low levels of work-in-process inventory.

Question 21

The objective of layout strategy is to

A) minimize cost
B) develop an efficient and effective system that meets competitive requirements
C) maximize flexibility
D) minimize space used
E) minimize material handling costs

Question 22

Slotting fees

A) are charged by retailers to stock a product
B) can amount to as much as $25,000
C) are not a part of Wal-Mart's business practices
D) can reduce the ability of small businesses to introduce new products
E) all of the above

Question 23

A good layout requires determining

A) material handling requirements
B) capacity and space requirements
C) environment and aesthetics
D) cost of moving between various work areas
E) all of the above

Question 24

The main goal of retail layout is

A) minimizing material handling cost
B) maximizing high-margin sales
C) minimizing storage costs
D) minimizing space required
E) maximizing profitability per square foot of floor space

Question 25

The minimum number of workstations depends upon the set of task times and the precedence chart, but not the number of units scheduled.

Question 26

Heuristics are problem-solving procedures that mathematically optimize the solution.

Question 27

Which layout's main objective is to equalize the task time for each station?

A) work cell
B) fixed position
C) process oriented
D) job shop
E) product oriented

Question 28

"A special arrangement of machinery and equipment to focus on production of a single product or group of related products" describes what layout type?

A) fixed-position layout
B) intermittent production
C) job shop
D) work cell
E) warehouse layout

Question 29

If the schedule calls for the production of 120 units per day and 480 minutes of production time are available per day, the maximum cycle time would be 4 minutes.

Question 30

The layout strategy that deals with low-volume, high-variety production is

A) fixed-position layout
B) retail layout
C) warehouse layout
D) office layout
E) none of the above

Question 31

One drawback of a product-oriented layout is that work stoppage at any one point ties up the whole operation.

Question 32

Retail layouts thrive on the notion that

A) handling costs should be minimized
B) storage costs should be minimized
C) average customer visit duration should be maximized
D) space used should be minimized
E) maximizing customer exposure rate maximizes sales and profit

Question 33

Product-oriented layouts tend to have high levels of work-in-process inventories.

Question 34

A product requires 24 separate tasks, and the sum of those task times is 14 minutes; if the cycle time is 2 minutes, then at least 12 workstations will be needed.

Question 35

Cycle time is the maximum time that the product is allowed at each workstation.

Question 36

Deloitte & Touche solved the empty desk problem by

A) assigning permanent desks
B) implementing a "hoteling" program
C) creating open offices
D) no longer allowing employees to work from home
E) none of the above

Question 37

Which of the following is not one of McDonald's "seven major innovations"?

A) the Happy Meal
B) drive-through windows
C) breakfast menus
D) play areas
E) "Made by You" kitchen system

Question 38

Which of the following is not a retail layout practice?

A) high-draw items along periphery
B) distribute power items throughout store
C) end-aisle locations are used to maximize product exposure
D) high-margin and impulse items in prominent locations
E) All of the above are retail layout practices.

Question 39

A hospital's layout most closely resembles which of the following?

A) product oriented
B) work cell
C) job shop
D) project
E) none of the above

Question 40

The biggest advantage of a product layout is its flexibility to handle a varied product mix.

Question 41

One of the major advantages of process-oriented layouts is

A) high equipment utilization
B) large work-in-process inventories
C) flexibility in equipment and labor assignment
D) smooth and continuous flow of work
E) none of the above

Question 42

The type of layout which features departments or other functional groupings in which similar activities are performed is

A) process-oriented
B) product-oriented
C) fixed-position
D) mass production
E) unit production

Question 43

Which of the following is true of a focused factory?

A) It may be focused in ways other than by product or layout.
B) It may be focused only by processing requirements.
C) It is much like a product facility within an otherwise process facility.
D) All of the above are true.
E) None of the above is true.

Question 44

A big advantage of a process-oriented layout is

A) its flexibility in equipment and labor assignments
B) its low cost
C) the simplified scheduling problem presented by this layout strategy
D) the ability to employ low-skilled labor
E) its high equipment utilization

Question 45

For which of the following operations would a fixed-position layout be most appropriate?

A) assembling automobiles
B) producing TV sets
C) constructing a highway tunnel or bridge
D) refining of crude oil
E) running an insurance agency

Question 46

The typical goal used when developing a process-oriented layout strategy is to

A) minimize the distance between adjacent departments
B) minimize the material handling costs
C) maximize the number of different tasks which can be performed by an individual machine
D) minimize the level of operator skill necessary
E) maximize job specialization

Question 47

One disadvantage of process-oriented layouts arises from

A) the use of special purpose equipment
B) machine maintenance, which tends to seriously degrade the capacity of the entire system
C) the use of specialized material handling equipment
D) the need for stable demand
E) the use of the general purpose machines and equipment

Question 48

Which of the following is not an information requirement for solving a load-distance problem?

A) a list of departments or work centers
B) a projection of work flows between the work centers
C) the distance between locations
D) a list of product cycle times
E) the cost per unit of distance to move loads

Question 49

Which of the following is not one of the factors complicating the techniques for addressing the fixed position layout?

A) The volume of materials is dynamic.
B) At different stages of a project, different materials are needed; therefore, different items become critical as the project develops.
C) Takt times at workstations are dynamic.
D) There is limited space at virtually all sites.
E) All of the above are complicating factors.

Question 50

Because problems with fixed-position layouts are so difficult to solve well onsite, operations managers

A) virtually never employ this layout strategy
B) utilize this approach only for construction projects such as bridges and office towers
C) increase the size of the site
D) often complete as much of the project as possible off-site
E) utilize this layout only for defense contractors

Question 51

Which of the following is true for process layouts, but false for product-oriented layouts?

A) low in-process inventories
B) flexibility in equipment and labor assignments
C) low variety of products
D) high volume of output
E) often solved by assembly line balancing

Question 52

In the Office Relationship Chart, which rating reflects the highest importance for two departments' closeness to each other?

A) A
B) E
C) I
D) O
E) X

Question 53

Which of the statements below best describes office layout?

A) groups workers, their equipment, and spaces/offices to provide for movement of information
B) addresses the layout requirements of large, bulky projects such as ships and buildings
C) seeks the best personnel and machine utilization in repetitive or continuous production
D) allocates shelf space and responds to customer behavior
E) deals with low-volume, high-variety production

Question 54

What is the primary reason why retailers tend to locate high-draw items around the periphery of the store?

A) More shelf space for those popular items is available around the periphery.
B) There will be less congestion of customers than there would be in the middle.
C) This arrangement will help to maximize customer exposure to other items in the store.
D) It is easier to put large advertisement signs on the outside walls right next to the items.
E) This arrangement allows customers to travel through the store as quickly as possible.

Question 55

Which type of layout is specifically designed to encourage employees to interact?

A) warehouse
B) job shop
C) open office
D) retail
E) repetitive/continuous

Question 56

Which of the following constitutes a major trend influencing office layouts?

A) downsizing
B) globalization
C) environmental issues
D) off-site employees
E) health issues

Question 57

The major problem addressed by the process-oriented layout strategy is

A) the movement of material to the limited storage areas around the site
B) requiring frequent contact close to one another
C) the provision of low-cost storage with low-cost material handling
D) minimizing difficulties caused by material flow varying with each product
E) balancing product flow from one work station to the next

Question 58

The main issue in designing process layouts concerns the relative positioning of

A) safety devices
B) departments
C) raw materials
D) entrances, loading docks, etc.
E) supervisors to their employees

Question 59

The fixed-position layout would be most appropriate in which of the following settings?

A) a fast-food restaurant
B) a doctor's office
C) a casual dining restaurant
D) a cruise ship assembly facility
E) none of the above

Question 60

The most common tactic followed in process-layout planning is to arrange departments or work centers so they

A) minimize the cost of skilled labor
B) maximize the machine utilization
C) allocate the available space equally to all the departments
D) minimize the costs of material handling
E) none of the above

Question 61

Balancing low-cost storage with low-cost material handling is important in a(n)

A) fixed-position layout
B) process-oriented layout
C) office layout
D) repetitive and product-oriented layout
E) warehouse layout

Question 62

Which of the following is not one of the requirements of cellular production?

A) test (poka-yoke) at each station in the cell
B) adequate volume for high equipment utilization
C) a high level of training, flexibility, and empowerment of employees
D) being self-contained, with its own equipment and resources
E) identification of families of products, often through the use of group technology codes

Question 63

Solving a load-distance problem for a process-oriented layout requires that

A) the difficulty of movement be the same for all possible paths
B) pickup and setdown costs vary from department to department
C) the cost to move a load be the same for all possible paths
D) takt time be less than 1
E) CRAFT software examine all possible department configurations

Question 64

Which one of the following is not common to repetitive and product-oriented layouts?

A) a high rate of output
B) specialization of labor
C) ability to adjust to changes in demand
D) low unit costs
E) All are common to product-oriented layouts.

Question 65

Cross-docking is

A) seldomly placing an item in storage, it is sent straight from incoming to outbound
B) using docks for either incoming or outbound shipments
C) using a single dock to unload and then load the same truck
D) all of the above
E) none of the above

Question 66

Balancing a work cell is done

A) before the work cell equipment is sequenced
B) as part of the process of building an efficient work cell
C) before takt time is calculated
D) so that each assembly line workstation has exactly the same amount of work
E) to minimize the total movement in a process layout

Question 67

The concept of customizing in a warehouse layout

A) is possible, but causes serious loss of oversight of the quality function
B) cannot be considered seriously in today's high efficiency factories
C) is theoretically sound, but several years away in practice
D) is a new trend in value-added activities in warehouses
E) none of the above

Question 68

The major problem addressed by the warehouse layout strategy is

A) minimizing difficulties caused by material flow varying with each product
B) requiring frequent contact close to one another
C) addressing trade-offs between space and material handling
D) balancing product flow from one work station to the next
E) none of the above

Question 69

Ambient conditions, spatial layout and functionality, and signs, symbols, and artifacts are all

A) indicators of imbalance on an assembly line
B) indicators that cross-docking has been successful
C) elements of customization in a warehouse layout
D) elements of servicescapes
E) elements of successful office layouts

Question 70

Which of the following is not an advantage of work cells?

A) reduced direct labor cost
B) decreased use of equipment and machinery
C) heightened sense of employee participation
D) reduced raw material and finished goods inventory
E) reduced investment in machinery and equipment

Question 71

The assumption of stability of demand is important for justifying which of the following layout types?

A) fixed-position layout
B) product-oriented layout
C) process-oriented layout
D) all of the above
E) none of the above

Question 72

Which of the following is true of random stocking?

A) Because items are stocked randomly, accurate inventory records are not necessary.
B) Its results always minimize handling costs.
C) Products have their own permanent storage spot.
D) Each pick can be of only one product.
E) None of the above is true.

Question 73

Which layout type assumes an adequate volume for high equipment utilization?

A) product-oriented layout
B) process-oriented layout
C) fixed-position layout
D) retail layout
E) warehouse layout

Question 74

A product-oriented layout would be most appropriate for which one of the following businesses?

A) fast food
B) steel-making
C) insurance sales
D) clothing alterations
E) a grocery store

Question 75

Which of the following requires an information system that provides inbound product identification, its destination, and routing of the product to the designated outbound vehicle?

A) phantom-docking
B) random stocking
C) ASRS
D) customizing
E) cross-docking

Question 76

A process layout problem consists of 4 departments, each of which can be assigned to one of four rooms. The number of different solutions to this problem is __________, although all of them may not have different material handling costs.

A) 1
B) 4
C) 16
D) 24
E) unknown

Question 77

Takt time is

A) the total work time available divided by units required by the consumer
B) the units required divided by workers required
C) a fictional time increment similar to a therblig
D) the same thing as cycle time in a process layout
E) an important consideration in balancing an assembly line

Question 78

Which of the following does not support the retail layout objective of maximizing customer exposure to products?

A) locate high-draw items around the periphery of the store
B) use prominent locations for high-impulse and high-margin items
C) maximize exposure to expensive items
D) use end-aisle locations
E) convey the store's mission with the careful positioning of the lead-off department

Question 79

Which of the following layouts generally has the best machine utilization?

A) fixed-position layout
B) repetitive and product-oriented layout
C) process-oriented layout
D) office layout
E) warehouse layout

Question 80

ASRS stands for

A) automated storage and retrieval system
B) automated storage and recovery system
C) automated scan and recognize system
D) automated scan and retail system
E) none of the above