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Operations Management

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Ch. 1 Introduction
Ch. 2 Strategy and Productivity
Ch. 3 Forecasting
Ch. 4 Product and Service Design
Ch. 5 Strategic Capacity Planning for Products and Services
Ch. 5s Decision Making
Ch. 6 Process Selection and Facility Layout
Ch. 7 Design of Work Systems
Ch. 8 Location Planning and Analysis
Ch. 8s Transportation Model
Ch. 9 Management of Quality
Ch.10 Quality Control
Ch.11 Supply Chain Management
Ch.12 Inventory Management
Ch.13 Aggregate Planning

Ch.14 MRP and ERP

Ch.15 Lean Operations
Ch.17 Project Management
Chap11 pages 517-521
Pages539-540
Summary for Chapter 10

Ch. 6 Process Selection and Facility Layout

Chapter 6 Process Selection and Facility Layout Summary:
Objective: Teach you about Process Selection and Facility Layout.

Process Selection is basically the way goods or services are made or delivered,
which influences numerous aspects of an organization, including capacity planning,
layout of facilities, equipment and design of work systems. Process selection is
primarily used during the planning of new products or services that is subject to
technological advances and competition. Process selection is dependent on the
company's process strategy, which has two main components: capital intensity and
process flexibility.
Capital Intensity is simply the combination of equipment and labor that an
organization uses to accomplish some objective.
Process Flexibility is as its name implies: how well a system can be adjusted to
meet changes in processing requirements that are interdependent on variables such
as product or service design, volume of production, and technology.
Facility Layout is simply the way a facility is arranged in order to maximize
processes that are not only efficient but effective towards the overall organizational
goal. It is also dependent on process selection.

Within those two categories, you will also learn about technology, operations tour,
process strategy, designing product layouts, and designing process layouts. The
main concept between process selection and facility layout is technology.
Technology is a method that is used to improve and develop various services,

operation processes, and products. While process selection is used in many

organizations, facility layouts signifies the work centers, implementations, and the
configuration of departments by special importance on activity of work throughout
the system. An example of a layout can be seen with businesses that use
automation. Automation is the process of technology-sensing when one task is
completed and then automatically beginning another task. This layout is very
effective in today's world for mass production. The purpose of layout design is to
increase the efficiency and fluidity of work, data through the system, and material.

Exam Questions:
1.) An ideal tool to use in line balancing is a/an . (page 264)
A. Balance delay
B. Assembly line
C. Automation
D. Precedence diagram E. Both a and b
E. Cellular production
2.) How do we calculate efficiency of a line? (page 265)
A. 10% -Percent idle time
B. 15% -Percent idle time
C. 50% -percent idle time
D. 75% -percent idle time
E. 100% -percent idle time
3.) What does the acronym CIM stand for? (page 258)
A. Computer integrated manufacturing
B. Consumer integrated manufacture
C. Computer international manufacture
D. Customer integrated manufacturing
E. Computer internal manufacture
4.) Which one is NOT a basic layout type discussed in Chapter 6? (249-260)

A. Product layouts
B. Process layouts
C. Design layouts
D. Fixed position layout
E. Combination layouts
5.) What is the equation of cycle time? (page 263)
A. Operating day per week/desired input rate
B. Operating time per week/desired input hours
C. Operating time per month/desired output rate
D. Operating time per day/desired output rate
E. Operating day per week/desired output rate

*Need to show which one is the correct answers.

Question:
6) Which of the following is not an example of automation: ( p.245)
a). ATMs
b). I-pass
c). automated heating and air conditioning
d). Online banking
e). A buffet restaurant.

7). Which of the following tasks can a robot not handle? ( p.247).
a) welding
b). testing
c). loading and unloading of machines,
d). Painting

e). writing a letter

8). Which of the following is a feature(s) of fixed automation? (p.246)

a). minimal variety of products

b). Low cost, high volume.
c). Specialized equipment for a fixed sequence of operation.
d). a) and b)
e). All of above

9). An organization that adopts automation should consider: ( p.246)

a). What level of automation is appropriate?

b). How changes should be managed?
c). What are the risks of automating?
d). How would automation affect the flexibility of an operation system?
e). All of the above.

10). Which is a disadvantage(s) of automation? ( p.246)

a). Technology is cheap.

b). Automation is more flexible than human labor
c). Very high initial costs
d). Workers fear losing their jobs to machines
e). Both c) and d).

11) The maximum time allowed at each workstation to complete its set of tasks on
a unit is referred to as:
a) cycle time
b) reciprocal time
c) line balancing
d) task time
e) efficiency
The answer is a. (found on page 262)

12) Which of the following is a type of processing?

a) job shop
b) batch
c) repetitive
d) continuous
e) all of the above
The answer is e. (found on page 239)

13) A(n) _ is a standardized layout arranged according to a fixed sequence of

assembly tasks.
a) product layout
b) production line
c) assembly line
d) assembly sequence
e) service layout
The answer is c. (found on page 250)

14) What are the major differences between process layout from product layout?

a) process layout is used for intermittent processing and product layout is used for
repetitive processing
b) process layout is functional and product layout is sequential
c) process layout is sequential and product layout is funtional
d) both a and b
e) none of the above
The answer is d. (found on page 253)

15) What areas of technology have a major influence on today's business

processes?
a) Product and service technology
b) Process technology
c) Information technology
d) Automatic technology
e) Answers a, b, & c
The answer is e. ( found on page 238)

16) What three types of technology is operations management primarily concerned

with?
a. Information, assistive, instructional
b. Product, instructional, service
c. Product and service, process, information
d. Information, product, alternative
e. Assistive, process, information
Answer: C (pg.238)

17) Which of the following will NOT yield competitive advantages for companies?

a. Lowering costs
b. Increasing productivity
c. Expanding processing capabilities
d. Lowering prices
e. Increasing quality
Answer: D (pg. 239)

18) Which of the following is NOT one of the five basic process type?

a. Batch
b. Strategic
c. Repetitive
d. Continuous
e. Project
Answer: B (pg. 239)

19) Which of these are a disadvantage(s) to the continuous process?

a. Rigidity
b. Lack of variety
c. Costly to change
d. Very high cost of downtime
e. All of the above
Answer: E (pg. 241)

20) Which type of process is sometimes referred to as assembly?

a. Repetitive
b. Job shop
c. Continuous
d. Project
e. Strategic
Answer: A (pg. 240 & 241)

21) An eyeglass repair shop would be best matched with which basic process type?

a. Continuous
b. Job Shop
c. Repetitive
d. Batch
e. Project
Answer: B. Job Shop (p. 239)

22) Products and services often go through life cycles that begin with:

a. high volume
b. standardized products/services
c. low volume
d. customized products/services
e. moderate volume
Answer: C. low volume (p. 241)

23) Which of the following statements is NOT true regarding process types?

a. They influence many activities of the organization

b. Job shop, batch, repetitive and continuous are typically ongoing operations
c. They always exist in their pure forms
d. Manager must know when to shift from one process type to the next
e. Hybrid processes have elements of other process types embedded in them
Answer: C. They always exist in their pure forms (p. 241-243)

24) Answering which question will guide the process selection?

a. What is the expected volume of output?

b. How much variety in products/services will the system need to handle?
c. What degree of equipment flexibility will be needed?
d. All of the above
e. None of the above matter in selecting a process
Answer: D. All of the above (p.239)

25) Which process type has the disadvantage of a moderate cost per unit?

a. Repetitive
b. Continuous
c. Job Shop
d. Project
e. Batch

Answer: E. Batch (p.241)

26) Which of the following types of processing is used for production of customized
goods or services?

a. Batch
b. Repetitive
c. Job Shop
d. Continuous
e. Project
Answer: C: Job Shop p. 241

27) Robot is a machine consisting of a mechanical arm, power supply, and a(n) _.

a. Controller
b. Computer
c. Assembly Line
d. Product Line
e. Product Layout
Answer: A: Controller p.247

28) Which facility layout utilizes stationary products, move workers, and materials
as needed?

a. Fixed Position
b. Product
c. Process

d. CAD
e. Robot
Answer: A: Fixed Position p.254

29) The management of Tiffanys designs an output rate of 200 units of silver
pendants per 8-hour day. What is the cycle time? (The tasks times and precedence
relationships are shown below)
.1 .4 .2 .1 .4

a. .42
b. 2.4
c. 100
d. 240
e. 8
Answer: B: 2.4 p.263

30) Which diagram shows the elemental tasks and requirements?

a.) Product Layout Diagram
b.) Precedence Diagram
c.) Line Balancing Diagram
d.) Muther Grid Diagram
e.) None of the above
Answer: B. p. 264

31) Machinery that has sensing and control devices that enable operate
automatically is known as:

a. Automation (pg.245)
b. Product Profiling
c. Projects
d. Variety
e. Technology

32) Standardized layout arranged according to a fixed sequence of assembly tasks

refers to a(n):

a. Product line
b. Product Layout
c. Assembly Line (pg.250)
d. Process Layout
e. None of the Above

33) Job Shop, Batch, Repetitive, Continuous, and project are all types of:

a. technologies
b. Process Types (pg. 239)
c. Forms of competitive advantages
d. Process design
e. None of the above

34) Which of the following enables an organization to quickly convert a machine or

process to produce a different (but similar) product type:

a. Fixed-position layout

b. Single-minute exchange of die (SMED) (pg. 255)

c. Combination layouts
d. Cellular production
e. None of the Above

35) A robot consists of which of the following?

a. mechanical arm
b. power supply
c. controller
d. Both a and c are correct.
e. All of the above (pg. 247)

36) What is the efficiency of a line with a balance delay of 20%? (p. 265)

a. 60%
b. 100%
c. 80%
d. 120%
e. 40%

37) What is the cycle time if 500 minutes per day were spent making 25 units? (p.
263)

a. 20 products per minute

b. One product every 20 minutes
c. 25 products per minute

d. One product every 25 minutes

e. None of the above

38) What is the output rate if the operating time per day is 500 minutes and the
cycle time is 2.5 minutes per unit? (p. 263)

a. 100 units every minute

b. One unit every 100 minutes
c. 200 units every minute
d. One unit every 200 minutes
e. None of the above

39) What is defined as the maximum time allowed at each workstation to complete
its set of tasks on a unit? (p. 262)

a. Line balancing
b. Maximum output rate
c. Cycle time
d. Maximum cycle time
e. Balance delay

40) Line balancing is best used in which type of layout? (p. 261)

a. Process layout
b. Cellular layout
c. Fixed-position layout
d. Product layout

e. Flexible manufacturing systems

41) What factors should be carefully considered before marketing a new

technological innovation?

a. What technology do and will not do.

b. Economic constraints.
c. Integration costs.
d. Human factors.
e. All of the above ( page 239, Technological Acquisition)

42) Which of the following is relevant in the redesign of layouts for facilities?

a. Inefficient operations.
b. Safety hazards.
c. Very low profits.
d. Customer satisfaction
e. a and b (page 249, Facilities layout)

43) In general, the three kinds of automation is?

a, fixed, programmable, agile.

b. fixed, flexible, programmable (page 246).
c, variable, agile, flexible.
d. adjustable, solid, non-open source.
e. reliable, efficient, favorable.

44) The main advantages for product layout do not include which of the following?

a. A high rate of output.

b. Preventative maintenance ( page 252).
c. Labor specialization.
d. Low unit cost due to high volumes.
e. A high utilization of labor and equipment.

45) Which of the following information is not required for the design of process
layouts?

a. Employee approval of the new process ( processes) Pages 271-272.

b. projection of future work flows between the various work centers.
c. Cost between locations and the unit cost to move the loads between locations.
d. The amount of money to be invested in the layout.
e. Location of key utilities, access and exit points, loading docks, etc.

46) Which of the following are NOT associated with product layouts?

A. rapid flow
B. sequential layout
C. repetitive processing
D. highly standardized goods
E. non-repetitive processing (pg 252)

47) Which of the following are true regarding process layouts?

A. routing and scheduling pose continual challenges (pg 253)

B. it is common in service environments
C. utilization rates are high
D. repetitive processing
E. all of the above

48) When is a fixed-position project used?

A. Small projects
B. Large projects (pg 254)
C. Micro projects
D. none of the above
E. A & C

49) Part families is related to:

A. Process layout
B. Product layout
C. Cellular layout (pg 255)
D. Combination layout
E. None of the above

50) Which layout is less efficient and has higher unit production costs than product
layouts?

A. Process (254)
B. Fixed-Position

C. They are all the same

D. Cellular
E. Process and Fixed-Position

51) Choose the best process you would need for the following project: custom-made
handbag that requires a lot of detailed work.

A. Repetitive
B. Assembly Line workers
C. Job Shop
D. Batch
E. Projects
(C) Job Shop Page. 239

52) A group of machines that include supervisory computer control, automatic

handling, and robots or other automated processing is_.

A. Job Shop
B. FMS ( flexible manufacturing system)
C. Group Technology
D. CIM ( Computer-Integrated Manufacturing)
E. Mixed Mode
(B) FMS ( flexible manufacturing system) Page 258

53) The equation for cycle time is

A. Output/Labor Hours

B. Output/ Total Cost

C. Cycle time per unit/Output
D. Operating Time/Desired Output Rate
E. Total Hours Worked/ Desired Output Rate
(D) Operating Time/Desired Output Rate Page 263

54) Compute the output rate. Fixed units per hour 500. Operating time per day 200
mins. Cycle Time is 1.0 per unit. CM per unit is 5. Total Units is 1000.

A. 5000
B. 700
C. 4500
D. 1000
E. 200
(E).200 Equation found on page 263

55) Operations management is concerned with which of the following technologies:

A. Product and Service

B. Innovation
C. IT
D. A&C
E. B&C
(D) A&C Page 238

56) The work required to produce a widget can be separated into five fundamental
tasks. With the task times and precedence relationships shown in the following
diagram, what are the minimum and maximum cycle times for a widget production?

-->0.3 min.-->0.9 min.-->0.1 min.-->0.5 min.-->0.2 min-->

a) 0.3 min.; 0.2 min.

b) 0.1 min.; 2.0 min.
c) 0.9 min.; 2.0 min.
d) 0.3 min.; 0.1 min.
e) 0.1 min.; 0.9 min.
Answer: C),0.9 min.; 2.0 min. pg. 263

57) In one of the assembly lines with 5 stations, the supervisor notices that the idle
time per cycle is 0.5 min in the 1.0 min cycle time. What is the efficiency of this
line?

a) 10%
b) 90%
c) 97.5%
d) 2.5%
e) 85%
Answer: B), 90% pg. 265

58) Which of the following are reasons why businesses utilize line balancing to
improve their business processes?

a) It allows us to use labor and equipment more efficiently.

b) To increase the idle time of each assembly line.

c) To avoid fairness issues that arise when one workstation must work harder than
another.
d) To create issues with morality that arise between workers at slower and faster
stations.
e) Both a) and c) are correct.
Answer: E); Both a) and c) are correct. pg. 262

59) What are the advantages of using a continuous process types?

a) Very efficient
b) Very high volume
c) Able to handle a wide variety of work
d) a) and b) are correct.
e) All of the above are correct.
Answer: D); a) and b) are correct. pg. 241

60) Which of the following are NOT benefits of using a flexible manufacturing
system?

a) Able to handle a relatively narrow range of part variety.

b) Offers reduced labor costs.
c) Offers consistent quality compared to traditional manufacturing methods.
d) Utilize lower capital investment.
e) Offer higher flexibility than "hard" automation.
Answer: A)Able to handle a relatively narrow range of part variety., pg. 258

61) What is a common goal in design process layout?

A) Minimize workers
B) Minimize transportation cost
C) Increase volume production
D) Increase effectiveness
E) None of the above are correct
Answer: B)Able to handle a relatively narrow range of part variety. page 271

62) Which of the following is not information required in the design process layout?

A) The amount of money to be invested in the layout

B) The location of key utilities, access and exit points, loading docks, and so on.
C) A projection of future work flows between various work centers.
D) The number of managers and workers involved.
E) The distance between locations and the cost per unit of distance to move loads
between locations.
Answer: D) The number of managers and workers involved.page 271, 272

63) HoIn closeness ratings how is the information summarized?

A) Diagram
B) Grid
C) Report
D) Flow chart
E) Bar chart
Answer: B) page 273

64) The problems that majority of layouts have involve which of the following:
A) Single locations
B) Multiple locations
C) Insufficient layout information
D) Size of equipment
E) Dimension of the building
Answer: A) page 270

65) What is a major obstacle when trying to find the most efficient layout of a
department?

A) Amount of space equipment and labor will use.

B) Layout of building
C) Type of equipment being used
D) Location of key utilities
E) Large number of possible assignments
Answer: E) page 27

(66) The process of assigning tasks to workstations in such a way that the
workstations have approximately equal time requirements is called:

A) equal balancing
B) cycle time
C) idle time analysis
D) line balancing
E) none of the above

Answer: D) page. 262

(67) Crayola LLC, maker of Crayola products, produces nearly 3 billion crayons each
year. What type of processing does Crayola has?

A) job shop
B) batch
C) repetitive/assembly
D) continuous
E) none of the above
Answer: C) page. 240

(68) Which of the following type of processing system is used for highly
standardized products?

A) batch
B) project
C) continuous
D) job shop
E) none of the above
Answer: C) p. 240
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