Deck 7: Manufacturing Processes

Question 1

The focus in the make-to-stock environment is on providing finished goods where and when the customers want them.

Answer 1

True

Question 2

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.

Answer 2

True

Question 3

One difference between an assembly line process flow and a continuous process flow is that on the assembly line the flow is discrete rather than continuous.

Answer 3

True

Question 4

A project layout is characterized by a relatively low number of production units in comparison with process and product layout formats.

Question 5

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

Question 6

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

Question 7

The term "assembly line" refers to progressive assembly linked by some material handling device.

Question 8

One methodology used to evaluate equipment investment decisions where the investment entails an initial investment, fixed costs, and variable costs is break-even analysis.

Question 9

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

Question 10

Process selection refers to the strategic decision of selecting which kind of production processes to use to produce a product or provide a service.

Question 11

The volume requirements for the product are one determinant of the choice of which process structure to select.

Question 12

Break-even analysis can only be used in production equipment decision making when dealing solely with fixed costs, not variable costs.

Question 13

A general-purpose machine is less capable than a special-purpose machine in certain tasks but can perform a broader variety of tasks.

Question 14

The time needed to respond to a customer's order is called the customer response time.

Question 15

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

Question 16

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

Question 17

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

Question 18

The product-process matrix shows the relationship between process structures and product volume and variety characteristics.

Question 19

Work-center layouts allocate dissimilar machines into cells to work on products that have dissimilar processing requirements.

Question 20

One trade-off illustrated by the product-process matrix is between flexibility and cost.

Question 21

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.

Question 22

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.

Question 23

Lean manufacturing means minimizing the number of workers and machines used in a process.

Question 24

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

A) Departments
B) Work groups
C) Workstations
D) Machines
E) Emergency exits

Question 25

A manufacturing cell layout is a dedicated area where products that are for the same or very similar customers are produced.

Question 26

Which of the following is not considered a major workflow structure?

A) Work center
B) Project
C) Assembly line
D) Fabrication
E) Continuous flow

Question 27

An example of an assemble-to-order firm is Dell Computer.

Question 28

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

A) Process flow diagram
B) Product matrix
C) Process matrix
D) Work center
E) Manual assembly

Question 29

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

Question 30

A difference between project and continuous flow categories of process flow structures is which of the following?

A) The size and bulk of the product
B) Discrete parts moving from workstation to workstation
C) Degree of equipment specialization
D) Being a "virtual factory"
E) Profit per unit

Question 31

A process flowchart denotes what happens to the product as it progresses through the productive facility.

Question 32

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

A) Project
B) Work center
C) Manufacturing cell
D) Assembly line
E) Continuous process

Question 33

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

A) Product-process matrix
B) Work center
C) Manufacturing cell
D) Assembly line
E) Continuous process

Question 34

Assume a fixed cost for a process of $15,000. The variable cost to produce each unit of product is $10, and the selling price for the finished product is $25. Which of the following is the number of units that has to be produced and sold to break even?

A) 500 units
B) 667 units
C) 790 units
D) 900 units
E) 1,000 units

Question 35

A customer order decoupling point is where the order moves from the marketing department to the production department.

Question 36

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?

A) 5,000 units
B) 6,000 units
C) 8,000 units
D) 11,000 units
E) 12,000 units

Question 37

A project layout is only used for products in a fixed location.

Question 38

Which of the following basic types of process structures is one in which similar equipment or functions are grouped together?

A) Project
B) Work center
C) Manufacturing cell
D) Assembly line
E) Continuous process

Question 39

In a work center, Machine A has a 10-minute set-up time per batch and a 2-minute per unit run time. Machine B performs the identical function but has a set-up time of 30 minutes and a 1-minute run time per unit. The work center makes products in batches ranging from 1 unit to 100 units. Assuming capacity is not a limitation on either Machine, in order to minimize the total processing time, on which batches should Machine B be used?

A) All batches should be run on Machine B.
B) Batches of more than 20 units should be run on Machine B.
C) Batches of fewer than 80 units should be run on Machine B.
D) Batches with up to 50 units should be run on Machine B.
E) No batches should be run on Machine B.

Question 40

You are hired as a consultant to decide if your client should purchase a new, highly specialized piece of equipment. The product to be produced by this equipment is forecast to have a total worldwide demand of 15,000 units over the entire product life. The initial investment to acquire and install the equipment is $256,000. The variable cost to produce each unit will be $15, and the selling price for the finished product will be $30. Which of the following best describes the situation the firm is facing?

A) The company will recover its initial investment.
B) The company's total margin will be less than its investment.
C) It is a good investment.
D) The break-even is lower than the 15,000 units that are expected to sell.
E) All of these choices are correct.

Question 41

This tool defines how parts go together, their order of assembly, and often the overall material flow pattern.

A) Blueprint
B) Assembly drawing
C) Flow diagram
D) Assembly chart
E) Operation and route sheet

Question 42

Here the firm works with the customer to design the product, which is then made from purchased material, parts, and components?

A) Engineer-to-order
B) Make-to-order
C) Assemble-to-order
D) Make-to-stock
E) Custom order

Question 43

Suppose that you have two processes A and B for producing a widget. Process A has a fixed cost of $10,000 and per unit variable cost of $80.00. Process B has a fixed cost of $30,000 and the per unit variable cost is $40.00. The widget sells for $100 regardless of production Process used. During the next three years (your planning horizon for the widgets) you expect the economy to be pretty good with sales of widgets to be at least 700 units per year. You will

A) be indifferent between choosing Process A and B, because they both have the same break-even point.
B) choose Process A since it has a low fixed cost.
C) choose Process B, since it has low variable cost.
D) choose either Process A or B, since both will result in same profit for the next three years.
E) choose Process B, since it will have higher net profit than Process A in the next three years.

Question 44

A production environment where the customer is served "on-demand" from finished goods inventory is?

A) Engineer-to-order
B) Make-to-order
C) Assemble-to-order
D) Make-to-stock
E) Custom order

Question 45

This tool specifies operations and process routing for a particular part.

A) Blueprint
B) Assembly drawing
C) Flow diagram
D) Assembly chart
E) Operation and route sheet

Question 46

In studying positioning of inventory in supply chains, which, if any, of the following is most appropriate?
I. As order decoupling point moves towards source, inventory investment goes down.
II. As order decoupling point moves towards the source, customer lead time gets longer.
III. As order decoupling point moves towards the source, inventory investment increases.
IV. As order decoupling point moves towards the source, customer lead time is unchanged.

A) I
B) II
C) III
D) IV
E) I and II

Question 47

In studying the product-process matrix describing layout strategies, which of the following is most appropriate?
I. As you move from project to manufacturing cell to continuous process, product volume increases while standardization increases.
II. As you move from project to manufacturing cell to continuous process, product volume decreases while standardization decreases.
III. As you move from project to manufacturing cell to continuous process, product volume increases while standardization decreases.
IV. As you move from project to manufacturing cell to continuous process, product volume decreases while standardization increases.

A) I
B) II
C) III
D) IV
E) I and II

Question 48

An exploded view of the product showing its component parts is?

A) Blueprint
B) Assembly drawing
C) Flow diagram
D) Assembly chart
E) Operation and route sheet

Question 49

Which of the following tend to have higher levels of inventory investment?

A) Assemble-to-order
B) Engineer-to-order
C) Make-to-stock
D) Make-to-order

Question 50

A production environment where pre-assembled components, subassemblies, and modules are put together in response to a specific customer order is?

A) Engineer-to-order
B) Make-to-order
C) Assemble-to-order
D) Make-to-stock
E) Custom order

Question 51

A production environment where the product is built directly from raw materials and components in response to a specific customer order is?

A) Engineer-to-order
B) Make-to-order
C) Assemble-to-order
D) Make-to-stock
E) Custom order

Question 52

Having stamping and drill press departments would imply which of the following types of layouts?

A) Project
B) Work-center
C) Manufacturing cell
D) Assembly line
E) Continuous process