Exam 7: Manufacturing Processes

Assume that you are offered a new piece of equipment for $10,000.The equipment will produce 10,000 units per year with a margin of $6.00 per unit.Demand for the product being produced has been 2,000 units per year.Your current equipment is fully depreciated and can produce the 2,000 units per year at but at a margin of only $4.00 per unit.Should you purchase the new equipment? Under what conditions?

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

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

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

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

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

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

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

Which of the following is not a step in developing a manufacturing cell layout?

Give an example of a project layout.______________________

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

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

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

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

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.

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

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

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?

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?

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