Review Questions I: MGMT 3165

I. True or False Questions: 1. Production and operations management concepts and techniques are limited to manufacturing organizations. 2. All production activities should start with the market place--what the customer values. 3. POM interacts with most other management systems within the organization. 4. The concept of Batch Production is not relevant to a service organization. 5. One of the causes of poor international competitiveness is that American business decisions are too short-term financial oriented. 6. Process selection is choosing the methods by which raw material inputs are transferred into product outputs. 7. The first decision in creating a production system is defining the process technology. 8. The choice of type of production process is typically made according to production volume. 9. The variable cost per unit is lower for continuous than batch processing. 10. The volume of production is higher for assembly than job shop processing. 11. The level of fixed cost is higher for continuous than job shop processing. 12. The routings of material are more complex for continuous processing than batch processing. 13. The use of specialized equipment is less for continuous processing than batch processing. 14. The level of automation is greater for job shop than project shop. 15. The productivity of labor is less for continuous than batch processing. 16. As production processes evolve from batch to continuous flow, the product line narrows. 17. As production processes evolve from batch to continuous flow, cost per unit decreases. 18. CAD is a component of CIM. 19. AGV is a component of FMS. 20. The primary advantage of CIM is in the integration of its component technologies. 21. Product design and process selection is generally less formalized in services than in manufacturing. 22. An essential feature of McDonald's success is customization in the production process. 23. The major difference between a manufacturing and a service system is that manufacturing requires the production of a physical product while a service does not. 24. The capacity of the production system defines the firm's competitive boundaries. 25. Design capacity refers to the amount that a company can produce under normal operating conditions. 26. Economy of scale is minimized when a firm achieves the best operating level. 27. One reason that it is difficult to balance capacity with demand in different time periods is that each period may have a different best operating level. 28. The best operating level occurs at the peak of the average cost curve. 29. The general objective of a facility layout is to ensure a smooth work flow (in a factory) or a particular traffic pattern in a service organization. 30. Of the 4 types of layouts discussed in class, it would be unusual and unprofitable for one company to utilize a combination of one or more of these layouts in one operation. 31. The CRAFT layout program will always yield an optimal solution. 32. The basic difference between product layout and a process layout is the pattern of work flow. 33. According to Japanese Management, the top priority of production lines is the line balance.

34. Facility location refers to the site selection of the plant (or service branch). II. Multiple Choice Questions: 1. Which of the following is a definition of productivity? a. Ratio of output to input b. The effectiveness of capital and equipment c. The degree of goal attainment d. The effectiveness of labor 2. Which of the following divisions of a firm is the most productive? Average Average Profit Input (Labor Hours) Output (Labor Hours) (%) a. Division A 43 38 12.0 b. Division B 28 27 8.6 c. Division C 57 52 9.7 d. Division D 120 110 10.8 e. Division E 260 240 11.0 3. Which of the following divisions is the most successful competitor? Average Average Profit Input (Labor Hours) Output (Labor Hours) (%) a. Division A 43 38 12.0 b. Division B 28 27 8.6 c. Division C 57 52 9.7 d. Division D 120 110 10.8 e. Division E 250 240 11.0 4. Which of the following types of processes will be used to produce gasoline and petroleum products? a. Project shop b. Batch Processing c. Assembly lines d. Continuous Processing 5. Which of the following types of processes will be used to produce large turbines? a. Project shop b. Job shop c. Assembly lines d. Continuous Processing 6. Which of the following types of processes will be used to produce electronic components? a. Job shop b. Mass (batch) processing c. Assembly lines d. Continuous Processing 7. Which of the following types of processes will be used to produce chemicals? a. Job shop b. Batch Processing c. Assembly lines d. Continuous Processing 8. Which of the following types of processes will be used to produce refrigerators? a. Project Shop b. Batch Processing c. Assembly lines d. Continuous Processing

9. Which of the following types of processes will be used to produce custom clothing? a. Assembly line b. Batch Processing c. Project shop d. Continuous Processing 10. Which of the following types of processes will be used to produce low volume plastic parts? a. Project shop b. Batch Processing c. Assembly lines d. Continuous Processing 11. A continuous process usually involves: a. low volume of output b. work stations grouped by the process requirements of the product. c. high labor relative to capital investment d. varied routes and sequences of operations 12. The M in FMS stands for which of the following? a. Machining b. Manufacturing c. Manipulation 13. The D in CAD stands for which of the following? a. Drafting b. Drawing c. Design d. Manual d. Development

14. Decisions concerning the nature of the processing system, the equipment to be used, and the routing of the product refer to the concept of: a. product design. b. product selection. c. process selection. d. production planning. 15. CIM is: I. a method used to increase flexibility. II. a method which automates & integrates design, planning, control, and manufacturing itself. III. an automated version of the generic manufacturing process. IV. synonymous with JIT. a. I only. b. I, II, and III only. c. I, III, and IV only. d. I, II, III, and IV. 16. CAD increases flexibility through (choose the best answer): a. reduced cost of design. b. simplification of the design process and reduction of design leadtime. c. complication of the design process. d. improved materials handling. 17. FMS attempts to (choose the best answer): a. create the flexibility of a job shop environment. b. achieve the low cost of a mass production environment. c. achieve low cost while improving flexibility. d. utilize the job shop planning cycle while utilizing the mass production time horizon. 18. Long-range capacity planning should be the responsibility of:
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a. analysts c. top management

b. middle management d. marketing management d. triangle

19. In a decision tree, a decision point is represented as a: a. square b. circle c. rectangle

20. Which of the following is/are a method which is used in location analysis. a. transportation model. b. solution heuristics c. factor rating d. all of above 21. The inputs to the layout decision are: I. specification of objectives of the system in terms of inputs. II. estimation of product or service demand on the system. III. processing requirements. IV. space availability within the facility itself. a. I and IV only. b. III and IV only. c. I, III, and IV only. d. II, III, and IV only. 22. Which of the following is not a mark of a good plant layout: a. straight line flow pattern b. bottleneck operations. c. work stations close together. d. open plant floors (high visibility). 23. Which of the following is also referred to as a process layout? a. functional layout b. Product layout c. cellular layout d. Fixed-position layout 24. A layout which groups dissimilar machines into work centers is referred to as: a. Process layout b. Product layout c. cellular layout d. Fixed-position layout 25. A professor's office is an example of a: a. Process layout c. cellular layout b. Product layout d. Fixed-position layout

26. A flow line layout is often referred to as a: a. Process layout b. Product layout c. cellular layout d. Fixed-position layout 27. Assembly lines relate most closely to a: a. functional layout. b. product layout. c. process layout. d. departmental layout. 28. Compute the required cycle time for a process that operates 8 hours daily with a required output of 300 units per day. a. .625 min. b. 1.6 min. c. 37.5 min. d. .027 min. 29. When balancing an assembly line, it is sometimes very hard in: a. determining the required cycle time.
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b. computing the minimum number of work stations. c. drawing a network diagram. d. establishing rules by which tasks are to be assigned to work stations. 30. Compute the required cycle time for a company which operates two identical production lines for 7.5 hours a day with a demand of 16,225 items per week (5 workday/week.) a. .1387 minutes b. .0277 minutes c. .0046 minutes d. .2800 minutes III. Short Answer Questions: 1. Why operations strategy is the most important to a firm to be successful in the marketplace? In addition to "price leader", what are other "order winning criteria" that a firm can use to compete in the marketplace? 2. What factors are important in process selection decisions? Specifically, for a service company, what are the most important factors for a process design problem? 3. What type of factors are important in facility location decisions? Specifically, for a service company, what are the most important factors for a facility location problem? 4. What are major objectives of facility layout? Compare and contrast four types of plant layout discussed in class. Why cellular layout is widely used in today's manufacturing plants? 5. Why heuristic methods are widely used in process layout design problem in practice instead of using optimization techniques? What are other important factors in production line management? What are major differences in production line management between Western and Japanese? IV. Problems: 1. Decision Tree problem (Supplement, p.6-14 to 6-15, Problems: 1, 2, 3). 2. Break-even Analysis (Supplement: p.4-19 to 4-20. Problems: 4, 5). 3. Line Balancing problem (Supplement: p.8-20, Problems: 1, 2). (All problems that have been solved in class and in your assignment.)