Exam 7: Manufacturing Processes

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

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.

Workcenter layouts allocate the same or similar machines into cells to work on products that have dissimilar shapes and dissimilar processing requirements.

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

Items produced in a project layout are typically managed using project management techniques.

The formats by which a facility is arranged are defined by the general pattern of work flow.

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.

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

Assembly lines are a special case of a project layout.

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.Under what conditions should you purchase the new equipment?

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

In analysis using a process flowchart of a manufacturing operation,the emphasis is usually on identification of activities that can be minimized or eliminated.

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.

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?

The major difference between the project and the assembly line categories of process flow structures is which of the following?

A graphic used in process flow design depicting an exploded view of a product and its component parts is which of the following?

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

A project layout is characterized by a relatively low number of production units.

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

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?