Quiz 7: Capacity and Facilities Design

The factors used to evaluate location of a manufacturing plant are usually different from the factors used in locating a service facility.

Railroad access is frequently a factor in locating a manufacturing plant.

A service facility is usually the largest and most expensive type of facility.

Service operations tend to make location decisions more frequently than manufacturing facilities.

For a service operation to be in the right place, it usually means being in a location that is convenient and easily accessible.

Facility location is often overlooked because it is not an important aspect of a firm's strategic plan.

One of the reasons that foreign firms locate the facilities in North America is to reduce their supply chain costs.

The cost and availability of labour is an important factor in a location decision.

A location's collection of physical support systems is known as its infrastructure.

Inadequate infrastructure, at a given location, increases the supply chain costs and decreases the customer service.

Transportation costs are generally a function of distance, weight, and time.

The centre of gravity technique outlines a method for identifying and weighing important location factors.

The load-distance technique evaluates the different locations based on the load and transport distance.

Which of the following is not a primary factor in location decisions for manufacturing plants? A) proximity to raw materials B) proximity to customers C) proximity to different modes of transportation D) proximity to significant labour pools

Which type of facility is large and expensive? A) light-industry facilities B) retail and service facilities C) heavy-manufacturing facilities D) medium-site facilities

Which of the following is a type of facility addressed by the facility location decision? A) heavy manufacturing B) light industry C) retail and service facilities D) all the above

A brewery is an example of A) heavy manufacturing B) light C) retail facilities D) none the above

Which of the following is a not a major criterion for a manufacturing facility? A) nature of the labour force and labour costs B) access to end consumers C) distribution and transportation costs D) government regulations and taxes

Common location incentives include all of the following except A) tax credits B) job training C) fixed exchange rates D) improvements to infrastructure

Which of the following is not a facility location factor important in selecting a country? A) government stability B) export and import tariffs C) customer service D) culture

. When selecting the part of the country and community for a facility, which of the following factors are considered? A) local business regulations B) environmental regulations C) climate D) all of the above

. A company is deciding where to locate a new warehouse that will receive shipments from three suppliers: 1, 2, and 3. The supplier locations (x_i, y_i) and the annual number of shipments from supplier i (W_i) are provided below: 1 2 3 X₁ = 250 x₂= 100 x₃= 500 Y₁ = 250 y₂= 400 y₃= 300 W₁ = 240 W₂=205 W₃= 300 The coordinates for the new warehouse suggested by the centre of gravity method are A) x = 311.4 and y = 309.4 B) x = 309.4 and y = 311.4 C) x = 291.2 and y =198.9 D) x = 193.2 and y = 219.4

A package delivery service wants to build a new distribution centre in Calgary, Alberta. The location of the centre needs to be in the vicinity of Deerfoot Trail, Highway 22 and the Calgary Airport. The following table provides the coordinates of these three sites and the number of weekly packages. Deerfoot Trail Highway 22 Airport X = 20 x = 26 x = 36 Y = 35 y = 13 y = 19 W = 16,000 W = 11,000 W = 8,000 The suggested coordinates for the new warehouse using the centre of gravity method are A) x = 36.0 and y = 35.0 B) x = 27.3 and y = 22.3 C) x = 25.54 and y =24.4 D) x = 27.5 and y = 35.5

A technique based on transport weight and distance used for locating a facility at the centre of movement in a geographic area is known as the A) load-distance technique B) centre of gravity technique C) location factor rating D) location factor technique

A method of identifying and weighting the important location factors is known as the A) load-distance technique B) centre of gravity technique C) location factor rating technique D) location factor technique

Explain the major categories of facilities and the important factors in facility location identification.

Discuss the location incentives as factors to be considered when selecting a site.

Discuss long-term capacity planning strategies.

Indicate the benefits of effective facility layout.

Explain the general characteristics of process, product, and fixed-position facility layouts.

Use block diagramming and relationship diagramming to design process layouts.

Describe the general considerations for service layouts.

Design a simple product layout for efficiency (balance a basic assembly line).

Describe three types of hybrid layouts, including cellular layouts, flexible manufacturing systems, and mixed-model assembly lines.

Capacity can be increased in one large step or incrementally.

The best operating level is the percent of capital cushion that minimizes unit cost.

For a given facility the best operating level equals the percent of capacity use that minimizes average unit cost.

The capacity cushion for a facility equals one minus utilization.

Increasing capacity utilization beyond the best operating level results in diseconomies of scale.

Facility layout refers to the arrangement of machines, processes, departments, and other areas within a facility.

The basic objective of the facility layout decision is to ensure a smooth flow of inventory through the system.

A process layout arranges activities sequentially.

A process layout groups similar activities together according to the functions they perform.

General as opposed to specific purpose equipment is typically found in a process layout.

An important advantage of a process layout over a product layout is efficiency.

Material storage and movement are directly affected by facility layout decisions.

Product layouts have a higher degree of flexibility than process layouts.

Fixed-position layouts are used for projects when the product cannot be moved.

Shipbuilding is an example of production system requiring a process layout.

Equipment utilization is typically very high in processes with a fixed-position layout.

Minimizing material handling cost is an important objective for a process layout.

Product layouts are sometimes referred to as functional layouts.

The major layout concern for a process layout is where to locate departments or functional areas relative to each other.

The major advantage of a process layout over a product layout is efficiency.

Line balancing strives to minimize bottlenecks in a process layout.

A relationship diagram provides a standard format for displaying manager preferences for department locations.

A schematic diagram using weighted lines to denote location preference is called a relationship diagram.

Block diagramming is a design tool for process layouts that takes into account the number of adjacent and non-adjacent moves.

Most service facilities utilize fixed-position layouts.

The majority of service facilities utilize process layouts.

With a product layout the purpose of line balancing is to equalize the amount of work at each workstation.

Precedence requirements reflect physical restrictions on the order in which operations are performed in a product layout.

The maximum amount of time a product spends at any workstation is known as the bottleneck time.

The cycle time refers to the maximum amount of time a product is allowed to spend at each workstation.

The balance delay is calculated by subtracting efficiency in percent from one hundred.

The line-balancing procedure uses heuristics to specify which work elements are allocated to each workstation.

Line balancing is constrained by precedence requirements and cycle time restrictions.

Line balancing is a procedure that requires cycle time to be the same as flow time.

Cellular layouts combine the flexibility of process layouts with the efficiency of product layouts.

Cellular layouts reduce transit time and increase set-up.

A flexible manufacturing system (FMS) combines flexibility with higher efficiency.

The efficiency of a flexible manufacturing system (FMS) comes from reductions in setup and waiting times.

A mixed-model assembly line processes each model in large batch sizes.

The time to complete a task in a mixed-model assembly line can vary from model to model.

Single model and mixed model assembly lines are similar in layout and operation.

Which of the following is not a capacity expansion strategy? A) capacity lead strategy B) capacity lag strategy C) capacity stability strategy D) average capacity

How much to increase capacity depends on all of the following except A) the volume and certainty of anticipated demand B) strategic objectives in terms of growth, customer service, and competition C) the costs of expansion and operation D) the current size of the workforce

Effective layouts have the objective of all of the following except A) Facilitate communication and interaction between workers, between workers and their supervisors, and between workers and customers B) Increase manufacturing cycle time and customer service time C) Facilitate the entry, exit, and placement of material, products, and people D) Promote product and service quality;the volume and certainty of anticipated demand

Which of the following is not an objective of effective layouts? A) reduce material handling costs B) increase the number of bottlenecks C) eliminate waste and redundant activities D) improve communication and interaction among workstations

Similar activities are grouped together in departments or work centres according to the function with a ___ layout. A) process B) fixed-position C) hybrid D) none of the above

Which of the following describes a process layout? A) Equipment is general purpose and the workers are unskilled. B) Equipment is specialized and the workers are highly skilled. C) Equipment is general purpose and the workers are highly skilled. D) Equipment is specialized and the workers are unskilled.

The material storage space required for in-process inventory is typically larger in A) a cellular manufacturing layout. B) a product layout. C) a fixed-position layout. D) a process layout.

With a ___ layout activities are arranged in a line according to the sequence of operations. A) product B) process C) fixed-position D) cellular

Which of the following statements is most true? A) Product layouts are flexible; process layouts are efficient. B) Product layouts are efficient; process layouts are flexible. C) Product and process layouts are equally flexible; neither are efficient. D) Product and process layout are equally efficient; neither are flexible.

Which one of the following is not an example of a basic facility layout? A) fixed-position B) mixed-model C) product D) process

Which one of the following is not an attribute of product layout? A) high volume B) large storage space C) stable demand D) narrow aisles

A ___ provides historical data on the movement of parts and materials between departments. A) manufacturing chart B) block diagram C) relationship diagram D) load summary chart

Two techniques used to design process layouts are A) block diagramming and assembly line balancing. B) relationship diagramming and assembling line balancing. C) relationship diagramming and assembly line balancing. D) block diagramming and relationship diagramming.

A format for displaying manager preferences for departmental locations is known as a A) relationship diagram. B) process diagram. C) block diagram. D) hybrid diagram.

One of the best known computerized packages available for designing process layouts is CRAFT. CRAFT stands for A) computerized relationship activity and flow technique. B) computerized relative allocation of facilities technique. C) computerized relative assembly and flow technology. D) computerized relationship assembly flow time.

Material handling equipment that can follow multiple paths, move in any direction, and carry large loads of in-process inventory is most likely to be associated with a ___ layout. A) process B) product C) fixed-position D) hybrid

A schematic diagram that uses weighted lines to denote location preference is known as a A) block grid. B) block diagram. C) relationship grid. D) relationship diagram.

Muther's grid encodes mangers' preferences using A) numbers in increasing order B) numbers in decreasing order C) the 26 letters of the alphabet with the highest preference being A D) none of the above

Most service organizations use A) product layouts. B) fixed-position layouts. C) process layouts. D) cellular layouts.

A type of service layout designed to encourage browsing and increase impulse purchasing is known as a A) free-flow layout. B) grid layout. C) loop layout. D) spine layout.

A ___ layout encourages customer familiarity, has low costs, and is easy to clean. A) free-flow layout B) grid layout C) spine layout D) loop layout

All of the following prompt the flow of customers in service organizations except A) free-flow layouts. B) grid layouts. C) zig-zag layouts. D) loop layouts.

The process of equalizing the amount of work at each workstation in a product layout is known as A) block diagramming. B) precedence requirements. C) line balancing. D) cycle time analysis.

With line balancing, the maximum amount of time the product is allowed to spend at each workstation is known as the A) cycle time. B) flow time. C) efficiency of the line. D) balance delay.

To maximize an assembly line's efficiency, A) the line's balance delay must be minimized. B) the line's balance delay must be maximized. C) the cycle time must be less than the flow time. D) the flow time must be less than the cycle time.

A company has a target output rate of 40 units every five (5) hours when its line is fully operational. To achieve this target the firm must have a cycle time of A) more than 12.50 minutes. B) more than 10.00 minutes. C) 7.5 minutes or less. D) 8 minutes or less.

A company wants to produce 150 units during a 7-hour day. The desired cycle time needed to achieve this level of output is A) 3.5 minutes. B) 3.25 minutes. C) 3.00 minutes. D) 2.8 minutes.

A company hopes to achieve a daily output of 200 units during 6 hours of production time. Assuming there is no lost time during the 6 hours of production, the desired cycle time to achieve the targeted level of output is A) 3.0 minutes. B) 1.8 minutes. C) 1.5 minutes. D) 0.03 minutes.

In a product layout, the process of assigning tasks to work stations is referred to as ___ balancing. A) station B) product C) line D) work

Cycle time refers to A) the time required for a product to go through a process layout. B) the time between finished units coming off an assembly line. C) the time needed to complete the tasks at a work station. D) the difference between task time and work station time.

An assembly line consists of three workstations (WS) with each station's activity time as shown. The flow time for items on this line would be A) 5 minutes. B) 3 minutes. C) 4 minutes. D) 12 minutes.

An assembly line consists of three workstations (WS) with each station's activity time as shown. The cycle time for this line is A) 5 minutes. B) 3 minutes. C) 4 minutes. D) 12 minutes.

An assembly line consists of three workstations (WS) with each station's activity time as shown. When fully operational this line could assemble ___ completed items every 60 minutes. A) 20 B) 15 C) 12 D) 5

An assembly line consists of three workstations (WS) with each station's activity time as shown. When fully operational the maximum output for this line in 8 hours of production time would be A) 40 units. B) 96 units. C) 120 units. D) 160 units.

If the line currently assembles 10 units every hour when fully functional, then the line's balance delay at this rate of output is A) 66.67 %. B) 33.33%. C) 80.00%. D) 20.00%.

Cycle time it the A) total time a unit spends in the system. B) time between completed units leaving the assembly line. C) minimum processing time needed at any given workstation. D) the time to cycle a unit backwards in the process for rework.

___ is a group technology technique that reorders part routing matrices to identify families of parts with similar processing requirements. A) Process flow analysis B) Production flow analysis C) Cycle analysis D) Group analysis

Which of the following is not an advantage of cellular layouts? A) easier to automate B) easier to control C) increased work-in-process inventory D) reduced setup time

Which one of the following is not an example of a hybrid facility layout? A) fixed-position B) mixed-model C) cellular D) flexible manufacturing

Which of the following is not an "area" of advantage of cellular layouts? A) material handling B) setup time C) capital investment D) control

Which of the following is not an "area" of disadvantage of cellular layouts? A) cell balance B) work-in-process inventory C) capital investment D) training and scheduling

Which one of the following factors is not important to the design and operation of a mixed-model assembly line? A) model sequencing B) line balancing C) u-shaped lines D) all are factors

What is a key advantage of flexible manufacturing systems compared to an assembly line layout? A) shorter setup times. B) less inventory in process. C) shorter queue times. D) combination of flexibility with efficiency.

Briefly discuss the best operating level.

Briefly describe facility layout and the different objectives involved with facility layout decision.

Briefly compare the storage and movement of material in a process layout and in a product layout.

Describe the basics of block diagramming.

What type of layout is commonly used in services? What are some of the objectives associated with service layouts?

Briefly describe the two constraints under which assembly line balancing must operate.

Briefly describe a cellular layout and its objectives.

What are the advantages of a cellular layout?

Briefly list the disadvantages of a cellular layout.

Describe a flexible manufacturing system (FMS).