Exam 7: Manufacturing Processes

A manufacturer has identified the options for acquiring a machined part.It can make the part on a numerically controlled lathe for $150 per unit (including materials. )It can make the part on a standard lathe for $250 per unit (also including materials. )It can make the part on a machining center for $50 per unit (also including materials. )The manufacturer can acquire a standard lathe for $10,000.It could acquire a numerically controlled lathe for $100,000.A machining center would cost $350,000.It has also found that it can purchase the part for $350 per unit?

Once a choice of position on the product-process matrix is selected change is impossible.

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

The choice of which process structure to select is generally a function of the volume requirements for the product.

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 world wide 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?

The choice of which process structure to select is generally a function of the volume requirements for the product.

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.

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

A process flowchart uses the information presented in the assembly drawing and defines how parts go together and their order of assembly.

Describe the implications of the product-process matrix for process design in a competitive situation?

Differentiate between a workcenter and a manufacturing cell?

What is sometimes humorously referred to as a "gozinto chart"?

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

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

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

In a factory,machine A has a ten minute set-up time per batch and a two minute per unit run time.Machine B performs the identical function but has a set-up time of thirty minutes and a one minute run time per unit.The factory makes products in batches ranging from one unit to one hundred units.Assuming capacity is not a limitation on either machine,on which batches should machine B be used?

The most common production management tools used in planning and designing the process flow are assembly drawings,assembly charts,route sheets and flow process charts.

Give an example of a project layout?

Assume a fixed cost for a process of $100,000.The variable cost to produce each unit of product is $10 and the selling price for the finished product is $50.Ignoring inventory,how many units must the firm sell to break-even?

Which of the following is not considered a major process flow structure?