Question 1

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

Accepted Answer

A) Grouping parts into families that follow a common sequence of steps 
B) Identifying dominant flow patterns of parts families as a basis for location of processes 
C) Physically grouping machines and processes into cells 
D) Disposing of leftover machinery and outsourcing ungrouped processes 
E) None of these 
A) Grouping parts into families that follow a common sequence of steps 
B) Identifying dominant flow patterns of parts families as a basis for location of processes 
C) Physically grouping machines and processes into cells 
D) Disposing of leftover machinery and outsourcing ungrouped processes 
E) None of these

Question 2

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

Accepted Answer

A) True 
 B)False

Question 3

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.

Accepted Answer

A) True 
 B)False

Question 4

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?

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 5

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

Accepted Answer

A) True 
 B)False

Question 6

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

Accepted Answer

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

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 
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

Question 8

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

Accepted Answer

A) True 
 B)False

Question 9

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 10

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

Accepted Answer

A) True 
 B)False

Question 11

In studying product-process matrix describing layout strategies, which of the following is most appropriate?

Accepted Answer

A) As you move from project to manufacturing cell to continuous process, product volume increases while standardization increases. 
B) As you move from project to manufacturing cell to continuous process, product volume decreases while standardization decreases. 
C) As you move from project to manufacturing cell to continuous process, product volume increases while standardization decreases. 
D) As you move from project to manufacturing cell to continuous process, product volume decreases while standardization increases. 
E) A and B are true 
A) As you move from project to manufacturing cell to continuous process, product volume increases while standardization increases. 
B) As you move from project to manufacturing cell to continuous process, product volume decreases while standardization decreases. 
C) As you move from project to manufacturing cell to continuous process, product volume increases while standardization decreases. 
D) As you move from project to manufacturing cell to continuous process, product volume decreases while standardization increases. 
E) A and B are true

Question 12

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

Accepted Answer

A) True 
 B)False

Question 13

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

Accepted Answer

A) True 
 B)False

Question 14

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

Accepted Answer

A) True 
 B)False

Question 15

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

Accepted Answer

A) True 
 B)False

Question 16

In studying positioning of inventory in supply chains, which, if any, of the following is most appropriate?

Accepted Answer

A) As order decoupling point moves towards source inventory investment goes down. 
B) As order decoupling point moves towards the source customer lead time gets longer. 
C) As order decoupling point moves towards the source inventory investment increases. 
D) As order decoupling point moves towards the source customer lead time is unchanged. 
E) A and B are true 
A) As order decoupling point moves towards source inventory investment goes down. 
B) As order decoupling point moves towards the source customer lead time gets longer. 
C) As order decoupling point moves towards the source inventory investment increases. 
D) As order decoupling point moves towards the source customer lead time is unchanged. 
E) A and B are true

Question 17

Process selection refers to the strategic decision of choosing the volume of output to produce in a manufacturing facility depending upon the way that facility produces.

Accepted Answer

A) True 
 B)False

Question 18

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

Accepted Answer

A) True 
 B)False

Question 19

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 20

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.

Accepted Answer

A) True 
 B)False

Exam 7: Manufacturing Processes

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

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

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.

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?

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

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

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

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

In studying product-process matrix describing layout strategies, which of the following is most appropriate?

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

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

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

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

In studying positioning of inventory in supply chains, which, if any, of the following is most appropriate?

Process selection refers to the strategic decision of choosing the volume of output to produce in a manufacturing facility depending upon the way that facility produces.

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

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.

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Strategic Capacity Management

Learning Curves

Facility Layout

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Waiting Line Analysis and Simulation

Process Design and Analysis

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Lean Supply Chains

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Theory of Constraints

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