Deck 14: Products and Processes

Question 1

Standardization can reduce costs by:

A)reducing inventories
B) increasing lot sizes
C) allowing the use of general purpose equipment
D) all the above
E)a and b only

Answer 1

E

Question 2

Which of the following are reasons a firm would buy a product rather than make it in its factory?

A)secrecy of design
B)utilizing idle workforce
C) providing known and competitive prices
D) all the above
E)a and b only

Answer 2

C

Question 3

Which of the following is a characteristic of special-purpose machinery?

A)it can perform a variety of operations on a variety of work pieces
B) capital costs are low compared to general purpose machinery
C) it generally produces better quality than general purpose machinery
D) all the above
E)none of the above

Answer 3

C

Question 4

General-purpose equipment:

A)is designed for maximum flexibility
B)is used extensively in intermittent manufacturing
C) is designed and used to produce one or a few specific parts
D) a and b only are true
E)none of the above are true

Question 5

During which phase of the product life cycle does the unit cost of the product decrease?

A) Introduction
B) Growth
C) Maturity
D) Decline

Question 6

Which product design principle permits the practice of postponement?

A) Simplification
B) Standardization
C) Modularization
D) Specialization

Question 7

Which of the following statements is best about flow manufacturing?
I) Work stations are located in the sequence needed to make the product.
II) Work flows at a relatively constant rate.
III) They can produce a wide variety of different products.
IV) There is little buildup of inventory.

A) all the above
B) I, II and III are true
C) I, II and IV are true
D) II, III and IV are true
E) I, III and IV are true

Question 8

The process of making something less complex or less difficult is called:

A)standardization
B) simplification
C) specialization
D)any of the above
E)none of the above

Question 9

Which of the following statements is true?
I) Serving similar customers with similar demand characteristics is an example of market focus.
II) A company specializing in assembling cars is an example of process focus.
III) A focused factory specializes in a wide product mix.

A)I only is true
B)I and II only are true
C) I and III only are true
D) II and III only are true
E)all the above are true.

Question 10

Which of the following statements regarding standardization is true?
I) All products made to a given specification will be interchangeable.
II) A range of standard specifications can be established so that the range covers the majority of uses for the item.
III) Standardization results in a larger variety of parts.

A)I and II are true
B)II and III are true
C) I and III are true
D)I, II and III are true
E)none of the above is true

Question 11

Specialization increases output and decreases costs by:

A)enabling labor to develop speed and dexterity
B) reducing setup time for each part
C) allowing a company to make a wide variety of different products
D) a and b above only
E)none of the above

Question 12

A plant specializing on a limited, concise, manageable set of products, technologies, volumes, and markets is known as a:

A) Focused factory
B) 3PL
C) Job shop
D) Work cell

Question 13

Which of the following are advantages of simultaneous engineering?
I) Time to market is reduced.
II) Avoids the need for marketing and design to work together.
III) Less communication is necessary.

A)I only is true
B)I and II only are true
C) I and III only are true
D) II and III only are true
E)all the above are true

Question 14

In a particular process, the fixed costs are calculated at $40,000 and the variable costs at $1.50 per unit.
If 10,000 units are to be produced, what is the average cost per unit?

A) $1.50
B) $2.00
C) $4.00
D) $5.50
E)none of the above

Question 15

Which of the following statements is/are true?

A)product design is a major factor in determining the cost of a product
B) product design is a major factor in the quality of a product
C) product design is a trial and error process
D) a and b above only
E)all the above are true

Question 16

During which phase of the product life cycle do profits start to decline?

A) Introduction
B) Growth
C) Maturity
D) Decline

Question 17

The establishment of a common size for electric light sockets is an example of:

A)simplification
B) diversification
C) standardization
D) product focus
E)none of the above

Question 18

In designing a process, which of the following needs to be considered?

A)the volume to be produced
B)the degree of customer involvement
C) the desired quality level
D)all the above
E)none of the above

Question 19

Which of the following is an objective of product design?

A)to design a product that will function as expected in the marketplace
B) to design a product for minimum processing cost
C) to design a product that will have minimum design costs
D) all the above
E)a and b above

Question 20

The concentration of effort in a given field of endeavor is called:

A)simplification
B) concentration
C) standardization
D) specialization

Question 21

Which of the following steps in a continuous improvement study ensures all elements of a job are studied?

A) install
B) select
C) record
D) examine
E) none of the above

Question 22

An analysis for ranking problems from most significant to least significant is called a:

A) Pareto
B) Cause-and-effect
C) Flow chart
D) Mass customization

Question 23

Intermittent manufacturing:

A)is particularly suited to the production of low-volume items
B) processes items in lots or batch
C) generally uses general purpose machinery
D)all the above
E)none of the above

Question 24

The cost equalization point:

A)is used to show the potential profit of a process
B) shows the lot size where costs are minimized
C) is used to select the lowest cost of two or more alternative processes
D) is the point where unit cost of a process are at a minimum
E)uses all the above

Question 25

Some purposes of continuous process improvement are:

A)the reduction of worker fatigue and effort without reduction of levels of output
B) the improvement of production processes and procedure
C) the improvement of factory, department, and work-station layout to improve
Work flows
D)improvement of levels of worker safety
E)all the above

Question 26

In selecting a process for continuous improvement study, which of the following factors should be considered?

A) human
B)economic
C) marketing
D)all the above
E) a and b only

Question 27

What is the Cost Equalization Point for the two processes shown?
$$\begin{array} { l c c c } & \text { Process A } & \text { Process B } \\\text { Fixed cost } & \$ 30.00 & \$ 120.00 \\\text { Variable cost } & \$ 3.00 & \$ 2.00\end{array}$$

A)$90.00
B) 90 units
C) 100 units
D) 120 units
E)none of the above

Question 28

A diagram used to illustrate the main causes and sub-causes leading to a problem or symptom is a:

A) Pareto
B) Cause-and-effect
C) Root cause
D) Flow chart

Question 29

A management style that enables workers to make improvements in their workplace is:

A) Cross-training
B) Employee empowerment
C) Management by objective
D) Human resource enrichment

Question 30

A graphical representation of the steps and operations in a process is a:

A) Pareto
B) Cause-and-effect
C) Root cause
D) Flow chart