Qdc1 - System Design And Operations (Capacity, Process Selection And Layout)

Front 1

The maximum designed service capacity or output rate under ideal conditions

Back 1

design capacity

Front 2

design capacity minus allowances such as personal time and maintenance

Back 2

effective capacity

Front 3

the ratio of actual output to design capacity

Back 3

capacity utilization

Front 4

the ratio of actual output to effective capacity

Back 4

efficiancy

Front 5

what are some determinants of effective capacity?

Back 5

facilities
products and service factors
process factors
human factors
policy factors
operational factors
supply chain factors
external factors

Front 6

extra capacity used to offset demand uncertainty

Back 6

capacity cushion

Front 7

T or F - Capacity planning decisions involve only long-term considerations

Back 7

False - Capacity planning decisions involve both long-term and short term considerations

Front 8

T or F -
It is usually a good idea to keep capacity planning separate from product and service design so that the issues in each area don't become intertwined.

Back 8

False

Product and service design decisions often have an important impact on capacity, and capacity limits can have an important impact on design options.

Front 9

T or F - Effective capacity can be defined as design capacity minus personal and other allowances.

Back 9

True

Front 10

T or F -Design capacity is the maximum output rate or service rate an operation is designed for

Back 10

True

Front 11

T or F - increasing the capacity of a bottleneck operation by 10% will always increase the capacity of the system by 10%.

Back 11

False
Feedback: Other bottlenecks may then appear, limiting the improvement to less than 10%.

Front 12

T or F - Increasing quality will cause an increase in productivity, and hence, an increase in capacity.

Back 12

True

Front 13

T or F - ncreasing the capacity of operations that follow a bottleneck operation will improve productivity because it will help the operation to overcome the bottleneck effect.

Back 13

False
Feedback: Process productivity will be governed by the bottleneck operation.

Front 14

T or F - If capacity increases require a long time, a following strategy may be the best option.

Back 14

False
Feedback: A leading strategy would probably be better.

Front 15

T or F - Efficiency can be defined as the ratio of actual output to effective capacity.

Back 15

True

Front 16

T or F - Utilization can be defined as the ratio of design capacity to actual output.

Back 16

False
Feedback: Utilization is the ratio of actual output to design capacity.

Front 17

T or F - A capacity cushion is sometimes used to soften the blow of having to make capacity changes.

Back 17

False
Feedback: It is extra capacity used to offset demand uncertainty.

Front 18

T or F - The term economies of scale is used to describe the phenomenon whereby increases in the output rate result in a decrease in unit costs.

Back 18

True

Front 19

T or F - Concepts such as cash flow and present value are important financial measures for analyzing capacity alternatives.

Back 19

True

Front 20

T or F - The breakeven point occurs at an output where total cost and total profit are equal.

Back 20

False
Feedback: It occurs where total cost and total revenue are equal.

Front 21

T or F - Capacity decisions affect operations.

Back 21

True
Feedback: They affect operating costs, space availability, ability to meet changes in demand, etc.

Front 22

T or F - Capacity planners must keep a narrow focus in order to stay on track.

Back 22

False
Feedback: Ignoring the "big picture" can have serious consequences.

Front 23

Which one of these is not a determinant of effective capacity, or are they all determinants?
A) Facilities
B) Quality capabilities
C) Job Design
D) Supply chain
E) All are factors

Back 23

All are factors

Front 24

Which one of these does not enhance developing capacity alternatives?
A) Designing flexibility into the system.
B) Taking a "big picture" approach.
C) Staying focused on quantitative factors.
D) Smoothing capacity requirements.

Back 24

C) Staying focused on quantitative factors.

Feedback: Qualitative factors are typically important as well.

Front 25

Which one of these is the primary input in capacity planning?
A) Overall cost estimates.
B) Supply chain capabilities.
C) Competitors' strengths.
D) Past successes or failures.
E) Demand forecasts.

Back 25

E) Demand forecasts.
Feedback: Plans for future capacity relate directly to forecasts of future demand.

Front 26

Which one of these is not always an important factor in planning service capacity?
A) The inability to store services.
B) The need to be near customers.
C) Demand forecasts.
D) Demand volatility.

Back 26

B) The need to be near customers.
Feedback: Some services can be handled from a distance (e.g., tax preparation, prescription refills).

Front 27

Which one of these is not a reason for diseconomies of scale?
A) Fixed costs are spread over more units.
B) Distribution costs increase.
C) Complexity increases costs.
D) Inflexibility may be an issue.

Back 27

A) Fixed costs are spread over more units.
Feedback: That is a reason for economies of scale.

Front 28

T or F -
Standard yellow pencils are produced using a product layout.

Back 28

True
Feedback: These are high volume, low variety items.

Front 29

T or F -
Two benefits of cellular manufacturing are low cost and flexibility.

Back 29

True
Feedback: Cellular provides fast processing, reduced setup time, and less work in process which result in low cost. It also allows for production is small batches, which provides a degree of flexibility.

Front 30

T or F -
Process layouts are common in non-manufacturing environments.

Back 30

True
Feedback: Departments are commonly found in service and retail environments.

Front 31

T or F -
Departments are typical in product layouts.

Back 31

False
Feedback: Departments are typical in process (intermittent) layouts.

Front 32

T or F -
Intermittent processing systems generally tend to have special purpose equipment.

Back 32

False
Feedback: Continuous systems tend to have special-purpose equipment.

Front 33

T or F -
For repetitive processing, machines of the same type are grouped into departments.

Back 33

False
Feedback: For repetitive processing, machines are typically arranged in work stations along a production or assembly line.

Front 34

T or F -
A service process matrix is a tool that can be useful for organizations contemplating strategic changes in service operations.

Back 34

True

Front 35

T or F -
Service systems do not lend themselves to automation. That is why you do encounter automated services.

Back 35

False
Feedback: Examples include ATM machines, electronic ticket sales, electronic fund transfer, electronic travel reservations, etc.

Front 36

T or F -
The degree of customer contact and the degree of customization are two key factors in service layout design

Back 36

True

Front 37

T or F -
Product layouts usually require less-skilled workers than process layouts.

Back 37

True
Feedback: Product layouts benefit from division of labor, so workers have very narrow tasks.

Front 38

T or F - Process layouts tend to have lower equipment utilization than product layouts.

Back 38

True
Feedback: Greater variety results lower utilization rates for some equipment.

Front 39

T or F -
The term balance delay refers to the percentage of idle time for a line.

Back 39

True

Front 40

T or F -
The minimum cycle time of a line is equal to the time of the shortest task.

Back 40

False
Feedback: It is equal to the time of the longest task.

Front 41

T or F - Cycle time is the time allowed at each work station to complete a set of tasks.

Back 41

True

Front 42

A DVD player would most likely be repaired in this type of layout:
A) fixed position
B) hybrid
C) product
D) process

Back 42

D) process
Feedback: A job shop.

Front 43

Which system has the least flexibility?
A) job shop
B) batch
C) assembly
D) continuous

Back 43

D) continuous
Feedback: There is little need for flexibility in a continuous system.

Front 44

Which type of operation would be most closely associated with division of labor?
A) job shop
B) batch
C) assembly
D) continuous

Back 44

C) assembly
Feedback: Division of labor is the basis for an assembly line operation.

Front 45

The type of layout that would be used to build a submarine is:
A) fixed-position
B) product
C) process
D) aquatic

Back 45

A) fixed-position
Feedback: Workers, materials, and equipment come to the location of the product.

Front 46

Which processing system would be the least likely choice for producing a pair of shoes?
A) assembly
B) batch
C) continuous
D) job shop

Back 46

C) continuous
Feedback: Continuous involves a flow (e.g., refining, water treatment). Shoes would typically be produced on an assembly line or in batches. However, a specialty shoe would be crafted in a job shop.

Front 47

Which two types of processing systems would most likely be used to produce iPods?
A) continuous or assembly
B) assembly or batch
C) batch or job shop

Back 47

B) assembly or batch
Feedback: Continuous (flow) and job shop (small volume, high variety) rule out choices A and C.

Front 48

Product or service profiling links key product or service requirements to
A) market conditions
B) pricing strategies
C) process capabilities
D) schedule changes
E) order sizes

Back 48

C) process capabilities

Front 49

Which one does not relate to designing process layouts?
A) Minimizing transportation costs.
B) Minimizing distance traveled.
C) Focusing on closeness ratings.
D) Equalizing times of work stations.

Back 49

D) Equalizing times of work stations.
Feedback: Equalizing times relates to product layouts and line balancing.

Front 50

In a Muther closeness grid, which symbol is used for a location if closeness isn't important?
A) A
B) E
C) I
D) O
E) U

Back 50

E) U
Feedback: Unimportant

Front 51

In a Muther closeness grid, which symbol reflects the greatest important for closeness?
A) A
B) E
C) I
D) O
E) U

Back 51

A) A
Feedback: Absolutely necessary.

Front 52

Which one of the following involves a group of machines that involve supervisory computer control and automatic material handling?
A) N/C machines
B) Computer-aided manufacturing
C) Cellular manufacturing
D) Group technology
E) Flexible manufacturing system

Back 52

E) Flexible manufacturing system

Front 53

Group technology is often related to which one of the following?
A) cellular manufacturing
B) product layout
C) combination layouts
D) none of these

Back 53

A) cellular manufacturing
Feedback: Cellular manufacturing often involves processing of part families (grouping).

Front 54

describe the muther grid

Back 54

A - Absolutely Necessary
E - Very Important
I - Important
O - Ordinary Importance
U - Unimportant
X - Undesirable

Front 55

The 3 primary capacity strategies are:

Back 55

leading, following and tracking

Front 56

A ________ capacity strategy builds capacity in anticipation of future demand increases.

Back 56

Leading

Front 57

A ________ capacity strategy builds capacity when demand exceeds current capacity

Back 57

Following

Front 58

A ________ capacity strategy adds capacity in relatively small increments to keep pace with increasing demands

Back 58

Tracking

Front 59

What are the 3 reasons system layouts are important

Back 59

1. require substantial investment of money and effort
2. involve long term commitments
3. they have significant impact on cost and efficiency of operations

Front 60

Layout that uses standardized processing operations to achieve rapid, high-volume flow

Back 60

product layout

Front 61

Standardized layout arranged according to a fixed sequence of production tasks

Back 61

production layout

Front 62

standardized layout arranged according to a fixed sequence of assembly tasks

Back 62

Assembly line

Front 63

what are the benefits of u shaped layouts?

Back 63

compact, promote teamwork, work assignments can be increased, and materials come out where they came in

Front 64

layouts that can handle varied process requirements

Back 64

process layouts

Front 65

non repetitive processing

Back 65

intermittent processing

Front 66

layout in which a product or project remains stationary and workers, materials and stationary are moved as necessary

Back 66

fixed position layout

Front 67

layout in which workstations are grouped into what is referred to as a cell, that can process items that have similar processing requirements

Back 67

cellular layout

Front 68

what are the benefits of cellular layout

Back 68

provide little waste
smooth flow without delay
minimal work in process(WIP)
reduced space and lead time,
increased flexibility
improved quality and productivity

Front 69

which layout would be used in large construction projects where focus is on timing of material and equipment deliveries

Back 69

fixed position layout

Front 70

the grouping into part families of items with similar design or manufacturing capabilities

Back 70

group technology

Front 71

the use of computers in process control.

Back 71

computer-aided manufacturing (CAM)

Front 72

a group of machines designed to handle intermittent processing requirements and produce a variety of similar products.

Back 72

flexible manufacturing system (FMS)

Front 73

the process of assigning tasks to workstations in such a way that the workstations have approximately equal time requirements.

Back 73

line balancing

Front 74

the maximum time allowed at each workstation to complete its set of tasks on a unit.

Back 74

cycle time

Front 75

a diagram that shows the sequence of tasks to be performed on a unit of product in an assembly line.

Back 75

precedence diagram

Front 76

the percentage of idle time of a line.

Back 76

balance delay

Front 77

cutting machines that are directed by a tape produced by a digital computer.

Back 77

numerically controlled (NC) machines

Front 78

is useful in establishing an approximate (geographic) location for a distribution center. The method minimizes total shipping cost between the distribution center and multiple shipping points (destinations).

Back 78

The center of gravity method

Front 79

Explain the center of gravity method

Back 79

The method minimizes total shipping cost between the distribution center and multiple shipping points (destinations). if shipping quantities for all destinations are equal, the distribution center will be located at the arithmetic averages of the x and y coordinates of the destinations; if shipping quantities are unequal, the location of the distribution center is found by using a weighted average approach, where the weights are the quantities to be shipped.

Front 80

evaluates alternative locations by computing weighted averages of the factor rating scores of the various alternatives. The recommended location is the one with the highest weighted average.

Back 80

The factor rating scale method

Front 81

__________ allows for both subjective and quantitative inputs into the decision making.

Back 81

The factor rating scale method

Front 82

Localities frequently offer special incentives for industrial development by

Back 82

buying land for industrial districts, constructing special buildings, and offering favorable leases, tax incentives or loans.

Front 83

multinational companies have been putting production facilities in foreign countries for what reasons

Back 83

to take advantage of lower labor costs or to access raw materials.

Front 84

International operations introduce new problems for managers such as

Back 84

foreign taxes, additional transportation costs, different sets of laws and customs, the possible instability of foreign governments.

Front 85

Choosing a site involves considering a large number of factors, some of which are

Back 85

the costs of labor, utilities and taxes;
the availability of workers in the area;
access to transportation and the costs of transporting supplies to the plant and transporting finished goods from the plant;
the availability of land and zoning restrictions;
and the possible availability of ready-made buildings or facilities.

Front 86

The location of many businesses is often a function of where the originator was located at the time the business was started.
A) True
B) False

Back 86

A) True

Front 87

Zoning and land costs can be key regional considerations in location analysis.
A) True
B) False

Back 87

B) False

Feedback: They are site factors.

Front 88

Regional factors can include location of markets or location of raw materials.
A) True
B) False

Back 88

A) True

Front 89

Factors used in location analysis for services and manufacturing are often quite similar.
A) True
B) False

Back 89

B) False

Feedback: The factors are usually quite different.

Front 90

The benefits of having global locations generally outweigh the disadvantages:
A) True
B) False

Back 90

B) False
Feedback: Each case is different and must be analyzed.

Front 91

Companies may seek global locations to overcome miscommunication and cultural differences.
A) True
B) False

Back 91

B) False
Feedback: These are two risks that can be associated with global locations.

Front 92

Factor rating includes both qualitative and quantitative inputs.
A) True
B) False

Back 92

A) True

Front 93

In the factor rating system, the most important factor is given a rating of 10, and less important factors are given lower ratings.
A) True
B) False

Back 93

B) False
Feedback: The sum of all weights is 1.00.

Front 94

The center of gravity method is used to minimize travel distances.
A) True
B) False

Back 94

A) True

Front 95

A breakeven point in location analysis is where location alternatives have the same total cost.
A) True
B) False

Back 95

B) False
Feedback: It is the output at which total costs are met.

Front 96

The transportation model is used to decide which form of transportation will minimize costs.
A) True
B) False

Back 96

B) False
Feedback: It is used to determine optimal shipping/receiving routes.

Front 97

The center of gravity method treats shipping cost as a linear function of the shipping distance.
A) True
B) False

Back 97

A) True

Front 98

A microfactory is a small factory that has a narrow product focus and is located near major markets.
A) True
B) False

Back 98

A) True

Front 99

Climate and taxes are often key site considerations in location planning.
A) True
B) False

Back 99

B) False
Feedback: They are typically regional factors.

Front 100

Communities may offer incentives to attract businesses to locate there.
A) True
B) False

Back 100

A) True

Front 101

In location analysis, service organizations tend to be revenue focused, whereas manufacturers tend to be cost focused.
A) True
B) False

Back 101

A) True

Front 102

The first step in location planning and analysis is:
A) Develop a reasonable set of alternatives.
B) Determine the criteria upon which the decision will be made.
C) Identify factors that are important.

Back 102

B) Determine the criteria upon which the decision will be made.
Feedback: Every step in the process must relate to the decision criteria.

Front 103

Which statement about location decisions is not true?
A) Mistakes can be difficult to overcome.
B) The goal is to find the optimal location.
C) Both fixed and variable costs can be affected.
D) Decisions are often long term

Back 103

B) The goal is to find the optimal location.

Front 104

Multiple plant manufacturing strategies include all of these except:
A) product plant.
B) process plant.
C) market area plant.
D) core plant.

Back 104

D) core plant.

Front 105

Which reason would not generally be cited for locating in a third world country?
A) nearness to raw materials.
B) lower labor costs.
C) increased output quality.
D) nearness to markets.

Back 105

C) increased output quality
Feedback: Third world countries tend to be less sophisticated in the area of quality..

Front 106

Which one is not usually listed as a regional factor in location decisions?
A) taxes.
B) nearness to raw materials.
C) labor costs.
D) nearness to markets.

Back 106

A) taxes.

Front 107

The tool that is provides demographic information for location analysis is:
A) factor rating method
B) geographic information system
C) center of gravity method
D) transportation model

Back 107

B) geographic information system

Front 108

Location planning for secondary schools would most likely focus on factors of a
A) region
B) community
C) site

Back 108

C) site
Feedback: Region and community are predetermined.

Front 109

A number of techniques are useful for evaluating capacity alternatives from an economic standpoint. Some of the more common are:

Back 109

cost–volume analysis, financial analysis, decision theory, and waiting-line analysis.

Front 110

The three basic issues in intermediate volume systems are

Back 110

the run size of jobs, the timing of jobs, and the sequence in which jobs should be processed

Front 111

The goal in high volume systems is

Back 111

to obtain a smooth rate of flow of goods or customers through the system in order to get a high utilization of labor and equipment.