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Exam 2: Process Strategy and Analysis

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Question 51

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An entrepreneur considers three possibilities for the production of her new product. One alternative, a job process, would have fixed costs of $22,000 and a per unit cost of $11.63. The large batch option would have a fixed cost of $54,000 and a per unit cost of $8.82. The line process would have a fixed cost of $85,000 and a per unit cost of $7.33. Graph the total cost lines and determine over what range of output each production alternative is superior.

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The Line alternative total cost line has...

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Question 52

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The principle of postponement is employed by a producer using a(n) :

A) make-to-stock strategy.
B) make-to-order strategy.
C) assemble-to-order strategy.
D) engineer-to-order strategy.

E) B) and D)
F) All of the above

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Question 53

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Petroleum refineries typically use continuous flow processes.

________ is the ease with which employees and equipment can handle a wide variety of products, output levels, duties, and functions.

In a line process, there is little variability in the products manufactured, and production and material handling equipment are often specialized.

Compare and contrast the method of time study to the method of work sampling. What are the strengths and limitations of each, and for which applications are they best suited?

Front offices generally emphasize top quality and customization.

Which of the following is sometimes called mass production?

Scenario 2.6 You currently purchase a part used in your production process from an outside supplier, and have decided to begin making this part in-house. You have two equipment options for moving production in-house: special-purpose equipment and general-purpose equipment. Cost information for these two options is as follows: -Use Scenario 2.6 to solve this riddle. For what range of output is the General-Purpose Equipment the low-cost option?

Scenario 2.2 Garman observes a worker assembling peanut valves and records the data displayed in the table. -Use the information in Scenario 2.2. What is the standard time for this job element if the allowance for the process is 20%?

An accounting professor realizes she is woefully inadequate at performing research. She discusses the art of research with a colleague and gains important insights that permit her to establish a research agenda. This is an example of:

Table 2.15 An analyst notes the time that customer appointments end with a tax preparer that is assigned customers requiring only the 1040EZ form. The times indicated in the table represent the departure times of the first eight clients for one tax preparation specialist. The 1040EZ tax forms among the different customers are very similar. The tax preparer started the first return at 12:00pm. -Which statement about Table 2.15 is best?

A manager is interested in setting a time standard for a machining operation. Which one of the following is least likely to be of use?

________ is a continuous, systematic procedure that measures a firm's products, services, and processes against those of industry leaders.

A make-to-stock strategy involves holding items in stock for immediate delivery and is feasible for standardized products with high volumes and reasonably accurate forecasts.

A process chart activity that checks or verifies something but does not change it is a(n) :

Scenario 2.5 A job consists of three distinct work elements that were timed with a highly accurate Swiss watch by a trained industrial engineer. The engineer recorded ten observations listed in the following table. All recorded times are in seconds. -Use the data in Scenario 2.5 to answer this question. If the rating factor is 15% for all the elements, what is the normal process time for the entire job?

A predetermined data approach to time standards can be completed before actual production begins.

A process chart activity that changes, creates, or adds something is a(n) :

Which of the following statements about additive manufacturing capabilities is not True?