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Test Bank of Operations and Supply Chain Management 14 Edition Jacobs

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Test Bank of Operations and Supply Chain Management 14 Edition Jacobs

Chapter 07
Manufacturing Processes

True / False Questions

1. 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.

True False

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

True False

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

True False

4. 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.

True False

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

True False

6. The volume requirements for the product are one determinant of the choice of which process structure to select.

True False

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

True False

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

True False

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

True False

10. 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.

True False

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

True False

12. The term “assembly line” refers to progressive assembly linked by some material handling device.

True False

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

True False

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

True False

15. A project layout is characterized by a high degree of task ordering.

True False

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

True False

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

True False

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

True False

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

True False

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

True False

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

True False

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

True False

23. 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.

True False

24. The essential issue in satisfying customers in the make-to-stock environment is to balance the cost of the finished item against the willingness of the consumer to pay for it.

True False

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

True False

26. A high-level map or diagram of a supply chain process can be useful to understand how material flows and where inventory is held.

True False

Multiple Choice Questions

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

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

28. Which of the following is not considered a major work flow structure?

A. Work center

B. Project

C. Assembly line

D. Fabrication

E. Continuous flow

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

A. The size and bulk of the product

B. Discrete parts moving from workstation to workstation

C. Degree of equipment specialization

D. Being a “virtual factory”

E. Profit per unit

30. 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?

A. 500 units

B. 667 units

C. 790 units

D. 900 units

E. 1,000 units

31. 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?

A. 5,000 units

B. 6,000 units

C. 8,000 units

D. 11,000 units

E. 12,000 units

32. 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?

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

33. 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?

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.

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

A. Process flow diagram

B. Product matrix

C. Process matrix

D. Work center

E. Manual assembly

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

A. Product-process matrix

B. Work center

C. Manufacturing cell

D. Assembly line

E. Continuous process

36. 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?

A. Project

B. Work center

C. Manufacturing cell

D. Assembly line

E. Continuous process

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

A. Project

B. Work center

C. Manufacturing cell

D. Assembly line

E. Continuous process

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

A. Departments

B. Work groups

C. Workstations

D. Machines

E. Emergency exits

Fill in the Blank Questions

39. 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? ______________________

________________________________________

40. Give an example of a project layout. ______________________

________________________________________

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