Question 1

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

Accepted Answer

A) True 
 B)False  False

Question 2

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

Accepted Answer

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

Question 3

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.

Accepted Answer

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

Question 4

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.

Accepted Answer

A) True 
 B)False

Question 5

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

Accepted Answer

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

Question 6

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

Accepted Answer

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. 
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 7

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?

Accepted Answer

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. 
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 8

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

Accepted Answer

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

Question 9

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

Accepted Answer

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

Question 10

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

Accepted Answer

A) True 
 B)False

Question 11

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

Accepted Answer

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

Question 12

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

Accepted Answer

A) True 
 B)False

Question 13

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

Accepted Answer

A) True 
 B)False

Question 14

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?

Accepted Answer

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. 
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 15

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

Accepted Answer

A) True 
 B)False

Question 16

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

Accepted Answer

A) True 
 B)False

Question 17

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?

Accepted Answer

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

Question 18

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.

Accepted Answer

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

Question 19

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

Accepted Answer

A) True 
 B)False

Question 20

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

Accepted Answer

A) True 
 B)False

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

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

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.

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

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

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

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

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

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

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

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

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

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?

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

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

Introduction

Strategy

Design of Products and Services

Projects

Strategic Capacity Management

Learning Curves

Facility Layout

Service Processes

Waiting Line Analysis and Simulation

Process Design and Analysis

Six Sigma Quality

Statistical Quality Control

Lean Supply Chains

Logistics, Distribution, and Transportation

Global Sourcing and Procurement

The Internet of Things and Erp

Forecasting

Sales and Operations Planning

Inventory Management

Material Requirements Planning

Workcenter Scheduling

Filters

Exam 7: Manufacturing Processes

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

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

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.

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

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

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

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

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

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

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

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

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

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?

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

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

Introduction

Strategy

Design of Products and Services

Projects

Strategic Capacity Management

Learning Curves

Facility Layout

Service Processes

Waiting Line Analysis and Simulation

Process Design and Analysis

Six Sigma Quality

Statistical Quality Control

Lean Supply Chains

Logistics, Distribution, and Transportation

Global Sourcing and Procurement

The Internet of Things and Erp

Forecasting

Sales and Operations Planning

Inventory Management

Material Requirements Planning

Workcenter Scheduling

Filters