SCM Chapter 9

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The objective of layout strategy is to develop an effective and efficient layout that will meet the firm’s competitive requirements.

True

Which of the following is NOT one of McDonald’s "seven major innovations"?

A) the Happy Meal

B) drive-through windows

C) breakfast menus

D) play areas

E) self-service kiosks

A

The objective of layout strategy is to:

A) minimize cost.

B) develop an effective and efficient layout that will meet the firm’s competitive requirements.

C) maximize flexibility.

D) minimize space used.

E) maximize worker satisfaction.

B

The layout approach that addresses trade-offs between space and material handling is called the fixed-position layout.

False

The ________ layout’s main objective is to equalize the task time for each station.

A) work cell

B) fixed position

C) office

D) job shop

E) product oriented

E

A hospital’s layout most closely resembles which of the following?

A) product oriented

B) work cell

C) job shop

D) project

E) retail

C

What layout strategy deals with low-volume, high-variety production?

A) fixed-position layout

B) retail layout

C) warehouse layout

D) office layout

E) process-oriented layout

E

"A special arrangement of machinery and equipment to focus on production of a single product or group of related products" describes what layout type?

A) fixed-position layout

B) intermittent production

C) job shop

D) work cell

E) warehouse layout

D

A good layout requires determining:

A) material handling equipment.

B) capacity and space requirements.

C) environment and aesthetics.

D) cost of moving between various work areas.

E) all of the above

E

7) Which of the statements below best describes office layout?

A) positions workers, their equipment, and spaces/offices to provide for movement of information

B) addresses the layout requirements of large, bulky projects such as ships and buildings

C) seeks the best personnel and machine utilization in repetitive or continuous production

D) allocates shelf space and responds to customer behavior

E) deals with low-volume, high-variety production

A

Utilization of the total "cube" is the dominant consideration in office layout.

False

Deloitte & Touche solved the empty desk problem by:

A) assigning permanent desks.

B) implementing a "hoteling" program.

C) creating open offices.

D) no longer allowing employees to work from home.

E) reducing the number of allowable sick days per employee.

B

In the office relationship chart, which rating reflects the highest importance for two departments’ closeness to each other?

A) A

B) E

C) I

D) O

E) X

A

Which of the following constitutes a major trend influencing office layouts?

A) downsizing

B) globalization

C) environmental issues

D) off-site employees

E) health issues

D

Workspace can inspire informal and productive encounters if it balances what three physical and social aspects?

A) proximity, privacy, and persuasion

B) privacy, persuasion, and permission

C) proximity, privacy, and permission

D) proximity, persuasion, and permission

E) proximity, persuasion, and passion

C

One guideline for a retail layout is to locate high-draw items around the periphery of the store.

True

Category management is the use of computer software to evaluate the profitability of various merchandising plans for hundreds of categories.

True

Servicescape refers to the physical surrounding in which the service is delivered.

True

One guideline for determining the arrangement and space allocation of a retail store is to place high-impulse and high-margin items in prominent locations.

True

The main goal of retail layout is:

A) minimizing material handling cost.

B) minimizing customer confusion regarding location of items.

C) minimizing storage costs.

D) minimizing space required.

E) maximizing profitability per square foot of floor space.

E

Retail layouts are based on the notion that:

A) handling costs should be minimized.

B) storage costs should be minimized.

C) average customer visit duration should be maximized.

D) space used should be minimized.

E) maximizing customer exposure rate maximizes sales and profit.

E

Slotting fees:

A) are charged by retailers to stock a product.

B) can amount to as much as $25,000.

C) are not a part of Walmart’s business practices.

D) can reduce the ability of small businesses to introduce new products.

E) all of the above

E

Which of the following is NOT a retail layout practice?

A) Locate the high-draw items around the periphery of the store.

B) Distribute power items throughout the store.

C) Use end-aisle locations to maximize product exposure.

D) Use prominent locations for high-impulse and high-margin items.

E) All of the above are retail layout practices.

E

What is the primary reason why retailers tend to locate high-draw items around the periphery of the store?

A) More shelf space for those popular items is available around the periphery.

B) There will be less congestion of customers than there would be in the middle.

C) This arrangement will help to maximize customer exposure to other items in the store.

D) It is easier to put large advertisement signs on the outside walls right next to the items.

E) This arrangement allows customers to travel through the store as quickly as possible.

C

Which of the following does NOT support the retail layout objective of maximizing customer exposure to products?

A) Locate high-draw items around the periphery of the store.

B) Use prominent locations for high-impulse and high-margin items.

C) Maximize exposure to expensive items.

D) Use end-aisle locations.

E) Convey the store’s mission with the careful positioning of the lead-off department.

C

Ambient conditions; spatial layout and functionality; and signs, symbols, and artifacts are all:

A) indicators of imbalance on an assembly line.

B) indicators that cross-docking has been successful.

C) elements of customization in a warehouse layout.

D) elements of servicescapes.

E) elements of successful office layouts.

D

Cross-docking processes items as they are received, rather than placing them in storage.

True

Balancing low-cost storage with low-cost material handling is important in which of the following?

A) fixed-position layout

B) process-oriented layout

C) office layout

D) repetitive and product-oriented layout

E) warehouse layout

E

Which of the following reduces product handling, inventory, and facility costs, but requires both (1) tight scheduling and (2) accurate inbound product information?

A) phantom-docking

B) random stocking

C) ASRS

D) customizing

E) cross-docking

E

The major problem addressed by the warehouse layout strategy is:

A) minimizing difficulties caused by material flow varying with each product.

B) requiring frequent close contact between forklift drivers and item pickers.

C) addressing trade-offs between space and material handling.

D) balancing product flow from one work station to the next.

E) locating the docks near a convenient access point to the closest highway.

C

The concept of customizing in a warehouse layout:

A) is possible, but it causes serious loss of oversight of the quality function.

B) cannot be considered seriously in today’s high efficiency factories.

C) is theoretically sound, but several years away in practice.

D) incorporates value-added activities in warehouses.

E) locates stock wherever there is an open location.

D

ASRS stands for which of the following?

A) automated storage and retrieval system

B) automated storage and recovery system

C) automated scan and recognize system

D) automated scan and retail system

E) automated scan and retrieval system

A

Which of the following is TRUE of random stocking?

A) Because items are stocked randomly, accurate inventory records are not necessary.

B) Its results always minimize handling costs.

C) Products have their own permanent storage spot.

D) Each pick can be of only one product.

E) None of the above is true.

E

Cross-docking means which of the following?

A) Avoid placing materials or supplies in storage by processing them as they are received.

B) The same docks can be used either incoming or outbound shipments.

C) The same dock is used to unload and then reload the same truck.

D) Warehouse docks are designed in the shape of a cross.

E) Docks are placed in the warehouse according to the direction (north, south, east, or west) from which the truck is arriving.

A

The dominant problem associated with the fixed-position layout is that workers are fixed in position, and they cannot be reassigned.

False

The fixed-position layout would be MOST appropriate in which of the following settings?

A) a fast-food restaurant

B) a doctor’s office

C) a casual dining restaurant

D) a cruise ship assembly facility

E) a washing machine assembly line

D

For which of the following operations would a fixed-position layout be MOST appropriate?

A) assembling automobiles

B) producing TV sets

C) constructing a highway tunnel

D) refining of crude oil

E) running an insurance agency

C

Because problems with fixed-position layouts are so difficult to solve well onsite, operations managers:

A) virtually never employ this layout strategy.

B) utilize this approach only for construction projects such as bridges and office towers.

C) increase the size of the site.

D) often complete as much of the project as possible offsite.

E) utilize this layout only for defense contractors.

D

Which of the following is NOT one of the factors complicating the techniques for addressing the fixed-position layout?

A) The volume of materials needed is dynamic.

B) At different stages of a project, different materials are needed; therefore, different items become critical as the project develops.

C) Takt times at workstations are dynamic.

D) There is limited space at virtually all sites.

E) All of the above are complicating factors.

C

A process-oriented layout is the traditional way to support a product differentiation strategy.

True

Job lots are groups or batches of parts processed together.

True

Process-oriented layouts typically have low levels of work-in-process inventory.

false

The most common tactic to arrange departments in a process-oriented layout is to minimize material handling costs.

True

Which type of layout features departments or other functional groupings in which similar activities are performed?

A) process-oriented

B) product-oriented

C) fixed-position

D) mass production

E) unit production

A

One of the major advantages of process-oriented layouts is:

A) high equipment utilization.

B) large work-in-process inventories.

C) flexibility in equipment and labor assignment.

D) smooth and continuous flow of work.

E) small work-in-process inventories.

C

The main issue in designing process-oriented layouts concerns the relative positioning of:

A) safety devices.

B) departments or work centers.

C) raw materials.

D) entrances, loading docks, etc.

E) supervisors to their employees.

B

Which of the following is NOT an information requirement for solving a load-distance problem to design a process layout?

A) a list of departments or work centers

B) a projection of work flows between the work centers

C) the distance between locations

D) a list of product cycle times

E) the cost per unit of distance to move loads

D

The major problem addressed by the process-oriented layout strategy is:

A) the movement of material to the limited storage areas around the site.

B) how to design a continuous flow process.

C) the provision of low-cost storage with low-cost material handling.

D) minimizing difficulties caused by material flow varying with each product.

E) balancing product flow from one work station to the next.

D

The most common tactic followed in process-layout planning is to arrange departments or work centers so they:

A) minimize the cost of skilled labor.

B) maximize the machine utilization.

C) are equally allocated within the available space.

D) minimize the costs of material handling.

E) produce a perfectly balanced assembly line.

D

A big advantage of a process-oriented layout is:

A) its flexibility in equipment and labor assignments.

B) its low cost.

C) the simplified scheduling problem presented by this layout strategy.

D) the ability to employ low-skilled labor.

E) its high equipment utilization.

A

The disadvantages of process-oriented layout come from:

A) the use of special purpose equipment.

B) machine maintenance, which tends to seriously degrade the capacity of the entire system.

C) the use of specialized material handling equipment.

D) the need for stable demand.

E) the flexibility of general-purpose equipment.

E

The typical goal used when developing a process-oriented layout strategy is to:

A) minimize the distance between adjacent departments.

B) minimize the material handling costs.

C) maximize the number of different tasks that can be performed by an individual machine.

D) minimize the level of operator skill necessary.

E) maximize job specialization.

B

A process layout problem consists of 4 departments, each of which can be assigned to one of four rooms. The number of different solutions to this problem is ________, although all of them may not have different material handling costs.

A) 1

B) 4

C) 16

D) 24

E) unknown

D

Solving a load-distance problem for a process-oriented layout requires that:

A) the difficulty of movement be the same for all possible paths.

B) pickup and setdown costs vary from department to department.

C) the cost to move a load be the same for all possible paths.

D) takt time be less than 1.

E) Proplanner software examines all possible department configurations.

A

The work cell layout, a special arrangement of machinery and personnel to focus on the production of a single product or group of related products, is for manufacturing applications and has no relevance to services.

False

The work cell improves layouts by reducing both floor space and direct labor cost.

True

A focused work center is well suited to the production of a large family of products requiring similar processing, even if their demands are not very stable.

False

Which of the following is NOT an advantage of work cells?

A) reduced direct labor cost

B) decreased equipment and machinery utilization

C) heightened sense of employee participation

D) reduced raw material and finished goods inventory

E) reduced investment in machinery and equipment

B

Balancing a work cell is done:

A) before the work cell equipment is sequenced.

B) as part of the process of building an efficient work cell.

C) before takt time is calculated.

D) so that each assembly line workstation has exactly the same amount of work.

E) to minimize the total movement in a process layout.

B

Mathematically, takt time is:

A) total work time available divided by units required.

B) units required divided by workers required.

C) a fictional time increment similar to a therblig.

D) workers required divided by total operation time required.

E) units required divided by total work time available.

A

Which of the following is NOT one of the requirements of cellular production?

A) testing (poka-yoke) at each station in the cell

B) adequate volume for high equipment utilization

C) a high level of training, flexibility, and empowerment of employees

D) being self-contained, with its own equipment and resources

E) identification of families of products, often through the use of group technology codes or equivalents

B

A fabrication line and an assembly line are both types of repetitive and product-focused layout, but only the fabrication line utilizes workstations.

False

The biggest advantage of a product layout is its flexibility to handle a varied product mix.

False

The minimum number of workstations depends upon the set of task times and the precedence chart, but not the number of units scheduled.

False

A product requires 24 separate tasks, and the sum of those task times is 14 minutes. If the cycle time is 2 minutes, then at least 12 workstations will be needed.

False

If the schedule calls for the production of 120 units per day and 480 minutes of production time are available per day, the cycle time would be 4 minutes.

True

Product-oriented layouts tend to have high levels of work-in-process inventories.

False

One drawback of a product-oriented layout is that work stoppage at any one point ties up the whole operation.

True

Cycle time is the maximum time that the product is allowed at each workstation.

True

Heuristics are problem-solving procedures that mathematically optimize the solution.

False

Which one of the following is NOT common to repetitive and product-oriented layouts?

A) a high rate of output

B) specialized equipment

C) ability to adjust to changes in demand

D) low unit costs

E) standardized products

C

A product-oriented layout would be MOST appropriate for which one of the following businesses?

A) fast food

B) steel making

C) insurance sales

D) clothing alterations

E) a grocery store

B

The assumptions necessary for a successful product-oriented layout include all EXCEPT which of the following?

A) adequate volume for high equipment utilization

B) standardized product

C) volatile product demand

D) adequately standardized supplies of raw materials and components

E) All of the above are appropriate assumptions.

C

Which of the following is TRUE regarding fabrication lines?

A) They are the same thing as assembly lines.

B) They are the same thing as focused factories.

C) They are a special type of process-oriented layout.

D) They are usually machine-paced as opposed to worker-paced.

E) They require completely different line balancing techniques than do assembly lines.

D

The central problem in product-oriented layout planning is:

A) minimizing material handling within workstations.

B) minimizing labor movement between workstations.

C) equalizing the space allocated to the different workstations.

D) maximizing equipment utilization.

E) minimizing the imbalance in the workloads among workstations.

E

Which of the following is a disadvantage of product-oriented layout?

A) There is a lack of flexibility necessary for handling a variety of products.

B) High volume is required because of the large investment needed to establish the process.

C) Work stoppage at any one point can tie up the whole operation.

D) There is a lack of flexibility necessary for handling a variety of production rates.

E) All of the above are disadvantages of product-oriented layouts.

E

Which of the following is one of the main advantages of a product-oriented layout?

A) high customer exposure rates

B) employability of highly skilled labor

C) high flexibility

D) low capital cost

E) low variable cost per unit

E

In a product-oriented layout, what is the process of deciding how to assign tasks to workstations?

A) station balancing

B) process balancing

C) task allocation

D) assembly-line balancing

E) work allocation

D

In assembly-line balancing, the theoretical minimum number of workstations is:

A) the ratio of the sum of all task times to cycle time.

B) always (when a fraction) rounded upward to the next larger integer value.

C) not always possible to reach when tasks are actually assigned to stations.

D) all of the above.

E) none of the above.

D

In assembly-line balancing, cycle time (the ratio of available production time to scheduled production) is the:

A) minimum time that a product is allowed at each workstation.

B) maximum time that a product is allowed at each workstation.

C) inverse of the minimum number of workstations needed.

D) sum of all the task times divided by the maximum number of workstations.

E) equivalent of the maximum task time among all tasks.

B

A production line is to be designed to make 500 El-More dolls per day. Each doll requires 11 activities totaling 16 minutes of work. The factory operates 750 minutes per day. What is the required cycle time for this assembly line?

A) 0.5 minutes

B) 1.5 minutes

C) 2 minutes

D) 5,500 minutes

E) 4.26 minutes

B

A production line is to be designed for a job with four tasks. The task times are 2.4 minutes, 1.4 minutes, 0.9 minutes, and 1.7 minutes. After line balancing, the largest possible assigned cycle time is ________ minutes, and the smallest possible assigned cycle time is ________ minutes.

A) 1.8; 1.4

B) 1.6; 0.9

C) 6.4; 2.4

D) 2.4; 0.9

E) 6.4; 0.9

C

Cycle time is computed as:

A) desired output divided by the daily operating time.

B) daily operating time divided by the product of desired output and the sum of job times.

C) the product of desired output and the sum of job times divided by daily operating time.

D) daily operating time divided by the scheduled output.

E) 1.00 minus station time.

D

Four hundred and eighty minutes of production time are available per day. Scheduled production is 120 units per day. What is the required cycle time?

A) 4 minutes

B) 5 minutes

C) 6 minutes

D) 7 minutes

E) 8 minutes

A

A production line is to be designed for a product whose completion requires 21 minutes of work. The factory works 400 minutes per day. Can an assembly line with five workstations make 100 units per day?

A) yes, with exactly 100 minutes to spare

B) no, but four workstations would be sufficient

C) no, it will fall short even with a perfectly balanced line

D) yes, but the line’s efficiency is very low

E) cannot be determined from the information given

C

Four hundred and eighty minutes of production time are available per day. The schedule calls for the production of 80 units per day. Each unit of the product requires 30 minutes of work. What is the theoretical minimum number of workstations?

A) 2

B) 3

C) 4

D) 5

E) 6

D

Which of the following is NOT a heuristic rule for assigning tasks to workstations in a product layout?

A) longest tasks first

B) in order of most number of following tasks

C) median tasks first

D) shortest tasks first

E) in accordance with positional weight

C

If a layout problem is solved by use of heuristics, this means that:

A) there is no other way to solve the problem.

B) no computer software is available.

C) the problem has only a few alternatives to evaluate.

D) no optimum solution exists.

E) a satisfactory, but not necessarily optimal, solution is acceptable.

E

Which of the following is a common heuristic for assembly line balancing?

A) first come, first served

B) least preceding tasks

C) earliest due date first

D) ranked positional weight

E) most preceding tasks

D

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