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Chapter 04 - Production Processes

Chapter 04 Production Processes
Learning Objectives for Chapter 4 1. 2. 3. 4. 5. 6. Understand the idea of production process mapping. Define Little’s law. Demonstrate how production processes are organized. Explain the trade-offs that need to be considered when designing a production processes. Describe the product-process matrix. Recognize how break-oven analysis is just as important in operations and supply chain management as it is in other functional areas. 7. Understand how to design and analyze an assembly line.
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

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Chapter 04 - Production Processes

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

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Chapter 04 - Production Processes

7. 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. True False

8. Break-even analysis can only be used in production equipment decision making when dealing solely with fixed costs, no 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 assembly-line balancing procedure determines the precedence relationships of manufacturing tasks. True False

13. Assembly lines are a special case of a project layout. True False

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Production Processes 14.Chapter 04 . True False 19. The efficiency of an assembly-line is found by the ratio of the sum of all task times divided by the cycle time. In balancing an assembly line workstation cycle time has to be less than the time between successive units coming off the end of the line. If the sum of the task times required to produce a product is 45 minutes and the cycle time for the same product is 10 minutes. cycle time is found by dividing production time per day by the required units of output per day. The term "assembly line" refers to progressive assembly linked by some material handling device. True False 16. In assembly-line balancing the theoretical minimum number of workstations is found by the ratio of the sum of all task times divided by the cycle time. the theoretical minimum number of workstations is 5 using the assembly-line balancing procedure. For the purposes of assembly-line balancing. The first step in balancing an assembly line is to specify the precedence relationships among tasks to be performed on the line. True False 15. True False 18. True False 4-4 . Thus. True False 20. True False 17.

True False 4-5 .Chapter 04 . If the sum of the task times required to produce a product is 80 minutes and the cycle time for the same product is 15 minutes. In designing a production layout a flexible line layout might have the shape of a "U". A project layout is characterized by a relatively low number of production units in comparison with process and product layout formats. Workcenter layouts allocate dissimilar machines into cells to work on products that have dissimilar processing requirements. the theoretical minimum number of workstations is 8 using the assembly-line balancing procedure. True False 24. A project layout is characterized by a high degree of task ordering. True False 25.Production Processes 21. True False 27. The objective of a mixed-model line layout is to meet the demand for a variety of products and avoid building high inventories. True False 26. True False 23. In designing an assembly line a mixed-model line layout is often used by JIT manufacturers. True False 22.

True False 31. Inventory turn is the cost of goods sold divided by the average inventory value. Which of the following is not considered a major process flow structure? A. True False 30.Production Processes 28. Work Center B. True False Multiple Choice Questions 32.Chapter 04 . Assembly line D. throughput. Project C. Inventory turn is a better measure than the total value of inventory for comparative purposes because it is a relative measure. Fabrication E. Assembly line balancing means assigning all necessary tasks to a series of workstations so that each workstation has no more than can be done in the workstation cycle time and so that idle time across all workstations is minimized. Little's law says there is a long-term relationship between the inventory. True False 29. and flow time of a production system in steady state. Continuous Flow 4-6 .

12.000. The size of the product B. 11. Assume a fixed cost for a process of $15. 900 units E. Discrete parts moving from workstation to workstation C. 5.000 units B. Assume a fixed cost for a process of $120.000 units D.000. A difference between project and continuous flow categories of process flow structures is which two of the following? A.000 units 35. 500 units B. The variable cost to produce each unit of product is $10 and the selling price for the finished product is $25. 8. Degree of equipment specialization D. Both A & C 34.000 units E. 790 units D.Chapter 04 . Being a "Virtual Factory" E. 667 units C. 1. Which of the following is the number of units that has to be produced and sold to break-even? A. The variable cost to produce each unit of product is $35. Which of the following is the number of units that has to be produced and sold to break-even? A.000 units 4-7 . 6. and the selling price for the finished product is $50.Production Processes 33.000 units C.

Which of the following is not a basic type of process structure? A. Process matrix D. In a workcenter machine A has a ten minute set-up time per batch and a two minute per unit run time. Manual assembly 39. on which batches should machine B be used? A. Workcenter E. Assuming capacity is not a limitation on either machine. The initial investment to acquire and install the equipment is $256. The break-even is lower than the 15.Production Processes 36. Batches of fewer than 80 units should be run on machine B D. Machine B performs the identical function but has a set-up time of thirty minutes and a one minute run time per unit. highly specialized. No batches should be run on machine B 38.Chapter 04 . Continuous process 4-8 . Process flow diagram B. Batches of more than 20 units should be run on machine B C. piece of equipment. The product to be produced by this equipment is forecast to have a total world wide demand of 15.000. It's a good investment D. All of the above 37. The workcenter makes products in batches ranging from one unit to one hundred units. Assembly line E. Batches with up to 50 units should be run on machine B E. You are hired as a consultant to decide if your client should purchase a new.000 units over the entire product life. Product-process matrix B. Which of the following best describes the situation the firm is facing? A. Manufacturing cell D. The company's total margin will be less than its investment C. The variable cost to produce each unit will be $15 and the selling price for the finished product will be $30. All batches should be run on machine B B. Product matrix C. The company will recover its initial investment B. Workcenter C. Which of the following is a basic type of process structure? A.000 units that are expected to sell E.

Production Processes 40. Which of the following basic types of process structures is one which similar equipment or functions are grouped together? A. 0. 50 C. The placement of which of the following is not determined by process structure decisions? A. 9.6 D. Emergency exits 43. Assembly line E. Continuous process 42. Using the assembly-line balancing procedure. Machines E. Workstations D. Project B. which of the following is the required cycle time if the production time in minutes per day is 480 and the required output per day in units is 50? A. Manufacturing cell D. Project B. Cannot be determined from the information above 4-9 . Workcenter C. 480 E. Assembly line E. Continuous process 41.Chapter 04 . 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. Workcenter C. Manufacturing cell D. Workgroups C.104 B. Departments B.

5 C. 500 E.Production Processes 44. 0. 6.388 C. Cannot be determined from the information above 45. 8 E. 8. 2. 0. 9. which of the following is the required cycle time if the production time in minutes per day is 1440 and the required output per day in units is 2000? A. 0. 4. 3 and 6 minutes. 5 C. 6. 6 D. Using the assembly-line balancing procedure.973 D. 6 D. 4.Chapter 04 . 7. 0. which of the following is the theoretical minimum number of workstations if the task times for the eight tasks that make up the job are 7.990 E. 3 B. 0. 250 D. Using the assembly-line balancing procedure. None of the above 46. 7. Using the assembly-line balancing procedure. and the cycle time is 8 minutes? A.72 B. Which of the following is the correct value for the resulting line's efficiency? A. and the cycle time is 10 minutes? A. 3 B. None of the above 4-10 . and 5 minutes. None of the above 47. which of the following is the theoretical minimum number of workstations if the task times for the six tasks that make up the job are 4.500 B.833 C. 1. The cycle time of the line is 5 minutes and the sum of all that tasks required on the line is 25 minutes. You have just determined the actual number of workstations that will be used on an assembly line to be 6 using the assembly-line balancing procedure. 8 E.

Assign a roaming helper to support the line C. None of the above Fill in the Blank Questions 51. Assume a fixed cost for a process of $100. The long-term relationship between the inventory. The cycle time of the line is 10 minutes and the sum of all that tasks required on the line is 60 minutes.500 B.000.750 D. Robert's Rule E. Murphy's Law C. Which of the following is the correct value for the resulting line's efficiency? A. Split the task between two workstations D. You have just determined the actual number of workstations that will be used on an assembly line to be 8 using the assembly-line balancing procedure. Ignoring inventory. 0. When balancing an assembly line. Speed up the assembly line transfer mechanism E. Little's Law D. how many units must the firm sell to break-even? ______________________ ________________________________________ 4-11 . 0.Production Processes 48.650 C. The variable cost to produce each unit of product is $10.850 E. which of the following is not a way to reduce the longest task time below the required workstation cycle time? A. Use a more skilled worker 50. 0. 0.Chapter 04 . None of the above 49. Upgrade the equipment B. and the selling price for the finished product is $50. Peterson's Rule B. throughput. and flow time of a production system in steady state is called which of the following? A.

Using the assembly-line balancing procedure.Chapter 04 . What is the line's efficiency? ______________________ ________________________________________ 55. 5. ______________________ ________________________________________ 56. 4. 3 and 6 minutes. and the cycle time is 8 minutes? ______________________ ________________________________________ 54.200? ______________________ ________________________________________ 53. what is the required cycle time if the production time in minutes per day is 2. The cycle time of the line is 30 seconds and the sum of all that tasks required on the line is 10 minutes. Using the assembly-line balancing procedure. 7. Give an example of a project layout. which of the following is the theoretical minimum number of workstations if the task times for the six tasks that make up the job are 7. You have just determined the actual number of workstations that will be used on an assembly line to be 15 using the assembly-line balancing procedure. The formula: (Inventory = Throughput rate x Flow time) is known as ______________________ ________________________________________ 4-12 .Production Processes 52.400 and the required output per day in units is 1.

Describe the implications of the product-process matrix for process design in a competitive situation.000 units per year. Differentiate between a workcenter and a manufacturing cell. 58.Chapter 04 .00 per unit.Production Processes Essay Questions 57.000 units per year with a margin of $6. 59.000. The equipment will produce 10.00 per unit. Your current equipment is fully depreciated and can produce the 2. Demand for the product being produced has been 2. Assume that you are offered a new piece of equipment for $10. Should you purchase the new equipment? Under what conditions? 4-13 .000 units per year at but at a margin of only $4.

000. It can make the part on a numerically controlled lathe for $150 per unit (including materials. It could acquire a numerically controlled lathe for $100.000. It can make the part on a machining center for $50 per unit (also including materials.Error! Hyperlink reference not valid. It has also found that it can purchase the part for $350 per unit.) The manufacturer can acquire a standard lathe for $10. A manufacturer has identified the options for acquiring a machined part.000.Chapter 04 .Production Processes 60. 4-14 . A machining center would cost $350.) It can make the part on a standard lathe for $250 per unit Error! Hyperlink reference not valid.

TRUE AACSB: Analytic Difficulty: Easy Learning Objective: 4 Taxonomy: Knowledge Topic: Designing a Production System 4-15 .Chapter 04 . 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. FALSE AACSB: Analytic Difficulty: Easy Learning Objective: 4 Taxonomy: Knowledge Topic: Designing a Production System 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.Production Processes Chapter 04 Production Processes Answer Key True / False Questions 1.

Production Processes 3. The choice of which process structure to select is generally a function of the volume requirements for the product. 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 AACSB: Analytic Difficulty: Easy Learning Objective: 5 Taxonomy: Knowledge Topic: How Production Processes Are Organized 6. A continuous process indicates production of discrete parts moving from workstation to workstation at a controlled rate.Chapter 04 . One trade-off illustrated by the product-process matrix is between flexibility and cost. FALSE AACSB: Analytic Difficulty: Medium Learning Objective: 3 Taxonomy: Knowledge Topic: How Production Processes Are Organized 4. TRUE AACSB: Analytic Difficulty: Easy Learning Objective: 3 Taxonomy: Knowledge Topic: How Production Processes Are Organized 4-16 . TRUE AACSB: Analytic Difficulty: Easy Learning Objective: 3 Taxonomy: Knowledge Topic: How Production Processes Are Organized 5.

TRUE AACSB: Analytic Difficulty: Easy Learning Objective: 4 Taxonomy: Knowledge Topic: Designing a Production System 10. Break-even analysis can only be used in production equipment decision making when dealing solely with fixed costs.Chapter 04 . TRUE AACSB: Analytic Difficulty: Easy Learning Objective: 6 Taxonomy: Knowledge Topic: Break-Even Analysis 4-17 . and variable costs is break-even analysis. FALSE AACSB: Analytic Difficulty: Medium Learning Objective: 6 Taxonomy: Knowledge Topic: Break-Even Analysis 9. One methodology used to evaluate equipment investment decisions where the investment entails a large initial investment. fixed costs. no variable costs. TRUE AACSB: Analytic Difficulty: Easy Learning Objective: 6 Taxonomy: Knowledge Topic: Break-Even Analysis 8.Production Processes 7. 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 general purpose machine is less capable than a special purpose machine in certain tasks but can perform a broader variety of tasks.

The assembly-line balancing procedure determines the precedence relationships of manufacturing tasks.Production Processes 11. TRUE AACSB: Analytic Difficulty: Easy Learning Objective: 5 Taxonomy: Knowledge Topic: How Production Processes Are Organized 12. FALSE AACSB: Analytic Difficulty: Easy Learning Objective: 7 Taxonomy: Knowledge Topic: Assembly-Line Design 14. Assembly lines are a special case of a project layout.Chapter 04 . The product-process matrix shows the relationship between process structures and product volume and variety characteristics. In assembly-line balancing the theoretical minimum number of workstations is found by the ratio of the sum of all task times divided by the cycle time. TRUE AACSB: Analytic Difficulty: Medium Learning Objective: 7 Taxonomy: Knowledge Topic: Assembly-Line Design 4-18 . FALSE AACSB: Analytic Difficulty: Easy Learning Objective: 7 Taxonomy: Knowledge Topic: Assembly-Line Design 13.

For the purposes of assembly-line balancing. the theoretical minimum number of workstations is 5 using the assembly-line balancing procedure. FALSE AACSB: Analytic Difficulty: Easy Learning Objective: 7 Taxonomy: Knowledge Topic: Assembly-Line Design 16.Production Processes 15.Chapter 04 . TRUE AACSB: Analytic Difficulty: Easy Learning Objective: 7 Taxonomy: Knowledge Topic: Assembly-Line Design 17. FALSE AACSB: Analytic Difficulty: Easy Learning Objective: 7 Taxonomy: Knowledge Topic: Assembly-Line Design 18. In balancing an assembly line workstation cycle time has to be less than the time between successive units coming off the end of the line. The efficiency of an assembly-line is found by the ratio of the sum of all task times divided by the cycle time. If the sum of the task times required to produce a product is 45 minutes and the cycle time for the same product is 10 minutes. Thus. TRUE AACSB: Analytic Difficulty: Easy Learning Objective: 7 Taxonomy: Analysis Topic: Assembly-Line Design 4-19 . cycle time is found by dividing production time per day by the required units of output per day.

Chapter 04 . The first step in balancing an assembly line is to specify the precedence relationships among tasks to be performed on the line. If the sum of the task times required to produce a product is 80 minutes and the cycle time for the same product is 15 minutes. TRUE AACSB: Analytic Difficulty: Easy Learning Objective: 7 Taxonomy: Knowledge Topic: Assembly-Line Design 4-20 . The term "assembly line" refers to progressive assembly linked by some material handling device. the theoretical minimum number of workstations is 8 using the assembly-line balancing procedure. In designing a production layout a flexible line layout might have the shape of a "U". TRUE AACSB: Analytic Difficulty: Easy Learning Objective: 7 Taxonomy: Knowledge Topic: Assembly-Line Design 20. TRUE AACSB: Analytic Difficulty: Easy Learning Objective: 7 Taxonomy: Knowledge Topic: Assembly-Line Design 21.Production Processes 19. FALSE AACSB: Analytic Difficulty: Easy Learning Objective: 7 Taxonomy: Analysis Topic: Assembly-Line Design 22.

A project layout is characterized by a relatively low number of production units in comparison with process and product layout formats. In designing an assembly line a mixed-model line layout is often used by JIT manufacturers.Production Processes 23. TRUE AACSB: Analytic Difficulty: Easy Learning Objective: 3 Taxonomy: Knowledge Topic: How Production Processes Are Organized 4-21 . Workcenter layouts allocate dissimilar machines into cells to work on products that have dissimilar processing requirements.Chapter 04 . TRUE AACSB: Analytic Difficulty: Easy Learning Objective: 7 Taxonomy: Knowledge Topic: Assembly-Line Design 25. FALSE AACSB: Analytic Difficulty: Easy Learning Objective: 3 Taxonomy: Knowledge Topic: How Production Processes Are Organized 26. The objective of a mixed-model line layout is to meet the demand for a variety of products and avoid building high inventories. TRUE AACSB: Analytic Difficulty: Easy Learning Objective: 7 Taxonomy: Knowledge Topic: Assembly-Line Design 24.

Chapter 04 . Inventory turn is a better measure than the total value of inventory for comparative purposes because it is a relative measure. TRUE AACSB: Analytic Difficulty: Easy Learning Objective: 7 Taxonomy: Knowledge Topic: Assembly-Line Design 29. TRUE AACSB: Analytic Difficulty: Easy Learning Objective: 1 Taxonomy: Knowledge Topic: Production Processes 30. Assembly line balancing means assigning all necessary tasks to a series of workstations so that each workstation has no more than can be done in the workstation cycle time and so that idle time across all workstations is minimized.Production Processes 27. Inventory turn is the cost of goods sold divided by the average inventory value. A project layout is characterized by a high degree of task ordering. TRUE AACSB: Analytic Difficulty: Easy Learning Objective: 7 Taxonomy: Knowledge Topic: Assembly-Line Design 28. TRUE AACSB: Analytic Difficulty: Easy Learning Objective: 1 Taxonomy: Knowledge Topic: Production Processes 4-22 .

Both A & C AACSB: Analytic Difficulty: Easy Learning Objective: 3 Taxonomy: Knowledge Topic: How Production Processes Are Organized 4-23 . Which of the following is not considered a major process flow structure? A. A difference between project and continuous flow categories of process flow structures is which two of the following? A. Being a "Virtual Factory" E. The size of the product B.Production Processes 31. Work Center B. Degree of equipment specialization D. Fabrication E.Chapter 04 . Little's law says there is a long-term relationship between the inventory. TRUE AACSB: Analytic Difficulty: Easy Learning Objective: 2 Taxonomy: Knowledge Topic: Production Processes Multiple Choice Questions 32. Discrete parts moving from workstation to workstation C. Continuous Flow AACSB: Analytic Difficulty: Easy Learning Objective: 3 Taxonomy: Knowledge Topic: How Production Processes Are Organized 33. throughput. and flow time of a production system in steady state. Project C. Assembly line D.

Which of the following is the number of units that has to be produced and sold to break-even? A. Assume a fixed cost for a process of $120.Chapter 04 . The variable cost to produce each unit of product is $10 and the selling price for the finished product is $25. 5.000 units C. Assume a fixed cost for a process of $15. 11. 1. 8.000 units E.000 units AACSB: Analytic Difficulty: Medium Learning Objective: 6 Taxonomy: Analysis Topic: Break-Even Analysis 4-24 .000 units B. and the selling price for the finished product is $50. 790 units D.000. 667 units C. 6.000 units AACSB: Analytic Difficulty: Medium Learning Objective: 6 Taxonomy: Analysis Topic: Break-Even Analysis 35. Which of the following is the number of units that has to be produced and sold to break-even? A. 500 units B.Production Processes 34.000. The variable cost to produce each unit of product is $35.000 units D. 12. 900 units E.

The company will recover its initial investment B. Assuming capacity is not a limitation on either machine. Batches of more than 20 units should be run on machine B C. Machine B performs the identical function but has a set-up time of thirty minutes and a one minute run time per unit. The workcenter makes products in batches ranging from one unit to one hundred units. All batches should be run on machine B B. Batches with up to 50 units should be run on machine B E. The company's total margin will be less than its investment C.000 units over the entire product life. The initial investment to acquire and install the equipment is $256. The product to be produced by this equipment is forecast to have a total world wide demand of 15. piece of equipment. Batches of fewer than 80 units should be run on machine B D. No batches should be run on machine B AACSB: Analytic Difficulty: Medium Learning Objective: 6 Taxonomy: Analysis Topic: Break-Even Analysis 4-25 .000. Which of the following best describes the situation the firm is facing? A. You are hired as a consultant to decide if your client should purchase a new. highly specialized. The break-even is lower than the 15. All of the above AACSB: Analytic Difficulty: Medium Learning Objective: 6 Taxonomy: Analysis Topic: Break-Even Analysis 37.000 units that are expected to sell E. on which batches should machine B be used? A.Chapter 04 . The variable cost to produce each unit will be $15 and the selling price for the finished product will be $30. In a workcenter machine A has a ten minute set-up time per batch and a two minute per unit run time. It's a good investment D.Production Processes 36.

Manual assembly AACSB: Analytic Difficulty: Medium Learning Objective: 3 Taxonomy: Knowledge Topic: How Production Processes Are Organized 39. Workcenter E. Product matrix C. Process flow diagram B. Workcenter C. Process matrix D.Chapter 04 . Assembly line E. Project B. Manufacturing cell D. Manufacturing cell D. Workcenter C. 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. Product-process matrix B. Assembly line E. Which of the following is a basic type of process structure? A. Continuous process AACSB: Analytic Difficulty: Easy Learning Objective: 3 Taxonomy: Knowledge Topic: How Production Processes Are Organized 40.Production Processes 38. Which of the following is not a basic type of process structure? A. Continuous process AACSB: Analytic Difficulty: Easy Learning Objective: 3 Taxonomy: Knowledge Topic: How Production Processes Are Organized 4-26 .

Using the assembly-line balancing procedure. Project B. 480 E. Manufacturing cell D.104 B. 9. Emergency exits AACSB: Analytic Difficulty: Easy Learning Objective: 7 Taxonomy: Synthesis Topic: Assembly-Line Design 43.6 D. Departments B. Workcenter C. Continuous process AACSB: Analytic Difficulty: Easy Learning Objective: 3 Taxonomy: Knowledge Topic: How Production Processes Are Organized 42. 0.Chapter 04 . Assembly line E.Production Processes 41. Cannot be determined from the information above AACSB: Analytic Difficulty: Medium Learning Objective: 7 Taxonomy: Analysis Topic: Assembly-Line Design 4-27 . Which of the following basic types of process structures is one which similar equipment or functions are grouped together? A. 50 C. Workstations D. The placement of which of the following is not determined by process structure decisions? A. which of the following is the required cycle time if the production time in minutes per day is 480 and the required output per day in units is 50? A. Workgroups C. Machines E.

None of the above AACSB: Analytic Difficulty: Medium Learning Objective: 7 Taxonomy: Analysis Topic: Assembly-Line Design 4-28 . 1.Chapter 04 . which of the following is the theoretical minimum number of workstations if the task times for the six tasks that make up the job are 4. Using the assembly-line balancing procedure. 5 C. and the cycle time is 10 minutes? A. 6 D.388 C. 250 D. 7. which of the following is the required cycle time if the production time in minutes per day is 1440 and the required output per day in units is 2000? A. Cannot be determined from the information above AACSB: Analytic Difficulty: Medium Learning Objective: 7 Taxonomy: Analysis Topic: Assembly-Line Design 45. 6.Production Processes 44. and 5 minutes. 3 B. 6. 0. 8 E. 500 E.72 B. 2. Using the assembly-line balancing procedure.

Using the assembly-line balancing procedure. 0. and the cycle time is 8 minutes? A. 9. 3 B. Which of the following is the correct value for the resulting line's efficiency? A. 3 and 6 minutes. 8 E.833 C. None of the above AACSB: Analytic Difficulty: Medium Learning Objective: 7 Taxonomy: Analysis Topic: Assembly-Line Design 4-29 . 7. 6 D.Production Processes 46. which of the following is the theoretical minimum number of workstations if the task times for the eight tasks that make up the job are 7. 4. 0.500 B. 0.Chapter 04 .990 E. You have just determined the actual number of workstations that will be used on an assembly line to be 6 using the assembly-line balancing procedure. 0. 5 C. 4.973 D. None of the above AACSB: Analytic Difficulty: Medium Learning Objective: 7 Taxonomy: Analysis Topic: Assembly-Line Design 47. The cycle time of the line is 5 minutes and the sum of all that tasks required on the line is 25 minutes. 8.

650 C.500 B. 0. You have just determined the actual number of workstations that will be used on an assembly line to be 8 using the assembly-line balancing procedure. 0. Use a more skilled worker AACSB: Analytic Difficulty: Medium Learning Objective: 7 Taxonomy: Analysis Topic: Assembly-Line Design 4-30 . Split the task between two workstations D. Which of the following is the correct value for the resulting line's efficiency? A. 0.850 E.Chapter 04 .Production Processes 48. Speed up the assembly line transfer mechanism E. None of the above AACSB: Analytic Difficulty: Medium Learning Objective: 7 Taxonomy: Analysis Topic: Assembly-Line Design 49.750 D. 0. Upgrade the equipment B. The cycle time of the line is 10 minutes and the sum of all that tasks required on the line is 60 minutes. which of the following is not a way to reduce the longest task time below the required workstation cycle time? A. Assign a roaming helper to support the line C. When balancing an assembly line.

500 units AACSB: Analytic Difficulty: Medium Learning Objective: 7 Taxonomy: Analysis Topic: Assembly-Line Design 52. Peterson's Rule B. what is the required cycle time if the production time in minutes per day is 2. Little's Law D. The long-term relationship between the inventory. The variable cost to produce each unit of product is $10.Production Processes 50.400 and the required output per day in units is 1. throughput.200? ______________________ 2 minutes AACSB: Analytic Difficulty: Medium Learning Objective: 7 Taxonomy: Analysis Topic: Assembly-Line Design 4-31 . Robert's Rule E.000. Ignoring inventory. Assume a fixed cost for a process of $100. and flow time of a production system in steady state is called which of the following? A. Using the assembly-line balancing procedure. None of the above AACSB: Analytic Difficulty: Medium Learning Objective: 2 Taxonomy: Analysis Topic: Production Processes Fill in the Blank Questions 51. how many units must the firm sell to break-even? ______________________ 2. Murphy's Law C.Chapter 04 . and the selling price for the finished product is $50.

which of the following is the theoretical minimum number of workstations if the task times for the six tasks that make up the job are 7. You have just determined the actual number of workstations that will be used on an assembly line to be 15 using the assembly-line balancing procedure.Production Processes 53.75 AACSB: Analytic Difficulty: Medium Learning Objective: 7 Taxonomy: Analysis Topic: Assembly-Line Design 55. What is the line's efficiency? ______________________ 0. ______________________ A construction project like a building.Chapter 04 . a bridge or a highway AACSB: Analytic Difficulty: Easy Learning Objective: 3 Taxonomy: Knowledge Topic: How Production Processes Are Organized 4-32 . a ship. Using the assembly-line balancing procedure. 5. and the cycle time is 8 minutes? ______________________ 4 AACSB: Analytic Difficulty: Medium Learning Objective: 7 Taxonomy: Analysis Topic: Assembly-Line Design 54. The cycle time of the line is 30 seconds and the sum of all that tasks required on the line is 10 minutes. 4. 3 and 6 minutes. Give an example of a project layout. 7.

abandoning flexibility to achieve low cost. For products which are maturing. The product-process matrix on page 73 and is discussed on page 72 of the text. A successful answer will focus on matching the process selected to characteristics of the product and will discuss the trade-off between flexibility and low cost. For example in a commodity-type marketing segment there is a strong imperative to push toward the lower right-hand corner of the matrix.Chapter 04 . Describe the implications of the product-process matrix for process design in a competitive situation. AACSB: Analytic Difficulty: Hard Learning Objective: 5 Taxonomy: Synthesis Topic: How Production Processes Are Organized 4-33 . The formula: (Inventory = Throughput rate x Flow time) is known as ______________________ Little's Law AACSB: Analytic Difficulty: Easy Learning Objective: 2 Taxonomy: Knowledge Topic: Production Processes Essay Questions 57.Production Processes 56. this is a very strong imperative and the firm that reaches the low cost position first has substantial competitive advantage through its ability to achieve low cost and high volume.

00 per unit. Should you purchase the new equipment? Under what conditions? Yes.000 units per year with a margin of $6. If demand is expected to increase and the product life is expected to be greater than two and one-half years.000 units per year.00 per unit. A successful response should include the notion that workcenters contain similar equipment while manufacturing cells are organized around similarities in processing requirements of products and may contain a collection of quite diverse equipment. At 2. AACSB: Analytic Difficulty: Hard Learning Objective: 6 Taxonomy: Analysis Topic: Break-Even Analysis 4-34 . These layout types are discussed on page 82 of the text. a workcenter is organized around technical aspects of the equipment while a manufacturing cell is organized around the processing needs of the product. Differentiate between a workcenter and a manufacturing cell.Chapter 04 . AACSB: Analytic Difficulty: Medium Learning Objective: 3 Taxonomy: Analysis Topic: How Production Processes Are Organized 59.000 units per year at but at a margin of only $4. Your current equipment is fully depreciated and can produce the 2. it is a good buy. Assume that you are offered a new piece of equipment for $10.Production Processes 58. In other words. The equipment will produce 10.000.000 units per year the equipment will pay for itself through increased margin in two and one-half years. Otherwise stick with the old equipment. Demand for the product being produced has been 2.

000.000.000. Std: $350*D = $10. use the standard lathe. D = 100) (Std vs. It could acquire a numerically controlled lathe for $100. the machining center is best. NC: $250*D + $10.000.) The manufacturer can acquire a standard lathe for $10. A machining center would cost $350.000. D = 2. D = 900) (NC vs. A manufacturer has identified the options for acquiring a machined part.500. If the quantity needed is between 100 and 900.000. If the quantity needed is more than 900 but less than 2.Error! Hyperlink reference not valid.) It can make the part on a standard lathe for $250 per unit Error! Hyperlink reference not valid.000. If the quantity needed was greater than 2.Production Processes 60. $100*D = $10. It can make the part on a numerically controlled lathe for $150 per unit (including materials.000 = $50*D + $350. It can make the part on a machining center for $50 per unit (also including materials. If the quantity required is less than 100. (Buy vs. use the numerically controlled lathe.000 = $150*D + $100.Chapter 04 . purchase the part for $350 per unit. $100*D = $250. It has also found that it can purchase the part for $350 per unit.500.000 + 250*D.500) AACSB: Analytic Difficulty: Hard Learning Objective: 6 Taxonomy: Analysis Topic: Break-Even Analysis 4-35 .000. $100*D = $90. Machining Ctr: $150*D + $100.