Verified Test Bank Chapter 7 Capacity and Facilities

Chapter 7:

Capacity and Facilities

True/False

1. Capacity can be increased in one large step or incrementally.

Difficulty: Easy

Learning Objective: LO 1

1. For a given facility, the __________ equals the percent of capacity utilization that minimizes unit cost.
   1. capacity cushion
   2. best operating level
   3. diseconomies of scale
   4. economies of scale
2. The capacity cushion for a facility equals one minus utilization.

Difficulty: Moderate

Learning Objective: LO 1

1. Product layouts are sometimes referred to as functional layouts because they group similar activities together.

Difficulty: Easy

Learning Objective: LO 2

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

Difficulty: Moderate

Learning Objective: LO 2

1. The major advantage of a process layout over a product layout is
   1. efficiency
   2. storage space
   3. inventory reduction
   4. flexibility
2. Line balancing strives to minimize bottlenecks in a process layout.

Difficulty: Moderate

Feedback: Basic Layouts

Learning Objective: LO 3

1. __________ refers to the arrangement of machines, processes, departments, and other areas within a facility.
   1. Facility layout
   2. Process layout
   3. Product layout
   4. Cellular layout
2. The basic objective of the facility layout decision is to ensure a smooth flow of inventory through the system.

Difficulty: Easy

Learning Objective: LO 2

1. A process layout arranges activities sequentially.

Difficulty: Moderate

Learning Objective: LO 2

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

Difficulty: Moderate

Learning Objective: LO 2

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

Difficulty: Easy

Learning Objective: LO 2

1. The major advantage of a product layout over a process layout is
   1. grouping activities together
   2. general purpose equipment
   3. efficiency
   4. flexibility
2. Material storage and movement are directly affected by facility layout decisions.

Difficulty: Easy

Learning Objective: LO 2

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

Difficulty: Easy

Learning Objective: LO 2

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

Difficulty: Easy

Learning Objective: LO 2

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

Difficulty: Easy

Learning Objective: LO 2

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

Difficulty: Easy

Learning Objective: LO 2

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

Difficulty: Moderate

Learning Objective: LO 2

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

Difficulty: Moderate

Learning Objective: LO 3

1. A schematic diagram using weighted lines to denote location preference is called a
   1. precedence diagram.
   2. relationship diagram.
   3. line balancing.
   4. cellular layout.
2. Block diagramming is a design tool for process layouts that takes into account the number of adjacent and non-adjacent moves.

Difficulty: Moderate

Learning Objective: LO 3

1. Most service facilities utilize fixed-position layouts.

Difficulty: Easy

Learning Objective: LO 2

1. Most service facilities utilize
   1. process layouts.
   2. product layouts.
   3. cellular layouts.
   4. hybrid layouts.
2. With a product layout the purpose of line balancing is to ______ the amount of work at each workstation.
   1. increase
   2. decrease
   3. equalize
   4. calibrate
3. Line balancing is constrained by precedence requirements and cycle time restrictions.

Difficulty: Hard

Learning Objective: LO 3

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

Difficulty: Easy

Learning Objective: LO 3

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

Difficulty: Moderate

Learning Objective: LO 3

1. The maximum amount of time a product spends at any workstation is known as the
   1. flow time.
   2. bottleneck time.
   3. cycle time.
   4. balance delay.
2. The __________ refers to the maximum amount of time a product is allowed to spend at each workstation.
   1. actual cycle time
   2. desired cycle time
   3. flow time
   4. balance delay
3. The balance delay is calculated by subtracting efficiency in percent from one hundred.

Difficulty: Moderate

Learning Objective: LO 3

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

Difficulty: Moderate

Learning Objective: LO 3

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

Difficulty: Moderate

Learning Objective: LO 4

1. Which of the following is NOT an advantage of cellular layouts?
2. reduced material handing
3. reduced set-up times
4. reduced work in process inventory
5. reduced training for workers
6. A flexible manufacturing system (FMS) combines flexibility with higher efficiency.

Difficulty: Easy

Learning Objective: LO 4

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

Difficulty: Hard

Learning Objective: LO 4

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

Difficulty: Moderate

Learning Objective: LO 4

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

Difficulty: Easy

Learning Objective: LO 4

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

Difficulty: Easy

Learning Objective: LO 4

Multiple Choice

1. Which of the following is not a capacity expansion strategy?
2. Capacity lead strategy
3. Capacity lag strategy
4. Capacity stability strategy
5. Average capacity

Difficulty: Easy

Learning Objective: LO 1

1. Capacity is defined as the
   a. minimum capability to produce.

b. maximum capability to produce.
c. average capability to produce.
d. None of these answer choices is correct.
Difficulty: Easy

Learning Objective: LO 1

1. The two critical decisions concerning capacity include
   a. When to increase and how much to increase.
   b. When to increase and where to locate.
   c. How much to increase and where to locate.
   d. None of these answer choices is correct.
   Difficulty: Easy
   
   Learning Objective: LO 1
2. The ______________________ for a facility is the percent of capacity utilization that minimizes cost.
   a. best operating level
   b. capacity cushion
   c. diseconomies of scale
   d. economies of scale
   Difficulty: Easy

Learning Objective: LO 1

1. When higher levels of output cost less per unit to produce, the facility realizes
   a. best operating level.
   b. capacity cushion.
   c. diseconomies of scale.
   d. economies of scale.
   Difficulty: Easy

Learning Objective: LO 1

1. When higher levels of output cost more per unit to produce, the facility realizes
   a. best operating level.
   b. capacity cushion.
   c. diseconomies of scale.
   d. economies of scale.
   Difficulty: Easy

Learning Objective: LO 1

1. The ______________________ is the percent of demand held in reserve for unexpected occurrences.
   a. best operating level
   b. capacity cushion
   c. diseconomies of scale
   d. economies of scale
   Difficulty: Easy

Learning Objective: LO 1

1. Facility design has an impact on
   a. quality.
   b. productivity.
   c. both quality and productivity.
   d. None of these answer choices is correct.
   Difficulty: Easy
   
   Learning Objective: LO 2
2. Which of the following is not an objective of facility layout?
   a. Minimize material handling costs
   b. Utilize space efficiently
   c. Utilize labor efficiently
   d. Maximize bottlenecks
   Difficulty: Easy
   
   Learning Objective: LO 2
3. Which one of the following is not an example of a basic facility layout?
4. Fixed-position
5. Mixed-model
6. Product
7. Process

Difficulty: Moderate

Feedback: Basic Layout

Learning Objective: LO 2

1. Which of the following is not an objective of effective layouts?
2. reduce material handling costs
3. increase the number of bottlenecks
4. eliminate waste and redundant activities
5. improve communication and interaction among workstations

Difficulty: Easy

Learning Objective: LO 2

1. Which of the following statements is true?
2. product layouts are flexible; process layouts are efficient
3. product layouts are efficient; process layouts are flexible
4. product and process layouts are equally flexible; neither are efficient
5. product and process layout are equally efficient; neither are flexible

Difficulty: Easy

Learning Objective: LO 2

1. Similar activities are grouped together in departments or work centers according to the function with a __________ layout.
2. process
3. fixed-position
4. hybrid
5. traditional

Difficulty: Easy

Learning Objective: LO 2

1. Which of the following describes a process layout?
2. Equipment is general purpose and the workers are unskilled.
3. Equipment is specialized and the workers are highly skilled.
4. Equipment is general purpose and the workers are highly skilled.
5. Equipment is specialized and the workers are unskilled.

Difficulty: Moderate

Learning Objective: LO 2

1. The material storage space required for in-process inventory is typically larger in a
2. cellular manufacturing layout.
3. product layout.
4. fixed-position layout.
5. process layout.

Difficulty: Easy

Learning Objective: LO 2

1. 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
2. process
3. product
4. fixed-position
5. None of these answer choices is correct.

Difficulty: Easy

Learning Objective: LO 2

1. With a ___________ layout, activities are arranged in a line according to the sequence of operations.
2. product
3. process
4. fixed-position
5. cellular

Difficulty: Easy

Learning Objective: LO 2

1. A ____________ provides historical data on the movement of parts and materials between departments.
2. manufacturing chart
3. block diagram
4. relationship diagram
5. load summary chart

Difficulty: Easy

Learning Objective: LO 3

1. Two techniques used to design process layouts are
2. block diagramming and assembly line balancing.
3. relationship diagramming and assembling line balancing.
4. relationship diagramming and assembly line balancing.
5. block diagramming and relationship diagramming.

Difficulty: Moderate

Learning Objective: LO 3

1. A format for displaying manager preferences for departmental locations is known as
2. relationship diagram.
3. process diagram.
4. block diagram.
5. hybrid diagram.

Difficulty: Moderate

Learning Objective: LO 3

1. One of the best known computerized packages available for designing process layouts is CRAFT. CRAFT stands for
2. computerized relationship activity and flow technique.
3. computerized relative allocation of facilities technique.
4. computerized relative assembly and flow technology.
5. computerized relationship assembly flow time.

Difficulty: Moderate

Learning Objective: LO 3

1. A company produces shovels in five departments. The average number of loads transported between the five departments per month is given in the load summary chart.
   
   (Insert 2 x 3 grid – see page 268)
   
   Load Summary Chart
   from/to Department
   Department 1 2 3 4 5
   1 - - 30 - -
   2 - - 30 25 -
   3 30 - - - 20
   4 - 40 - - 20
   5 - 30 - - -
   
   Determine the number nonadjacent loads.
   a. 25
   b. 30
   c. 50
   d. 60
   Difficulty: Hard

Learning Objective: LO 3

Solution: 1-3 and 3-1 are nonadjacent; 30+30=60 loads

1. A company produces shovels in five departments. The average number of loads transported between the five departments per month is given in the load summary chart.
   
   (Insert 2 x 3 grid – see page 268)
   
   Load Summary Chart
   from/to Department
   Department 1 2 3 4 5
   1 - 10 - - -
   2 - - 30 25 -
   3 30 - - - -
   4 - 40 - - 20
   5 - 15 - - -
   
   Determine the number nonadjacent loads.
   a. 25
   b. 30
   c. 50
   d. 60
   Difficulty: Hard

Learning Objective: LO 3

Solution: 1-3 and 3-1 are nonadjacent; 30+30=60 loads

63. A schematic diagram that uses weighted lines to denote location preference is known as a

1. block grid.
2. block diagram.
3. a relationship grid.
4. a relationship diagram.

Difficulty: Moderate

Learning Objective: LO 3

1. Most service organizations use
2. product layouts.
3. fixed-position layouts.
4. process layouts.
5. cellular layouts.

Difficulty: Easy

Learning Objective: LO 3

1. A type of service layout designed to encourage browsing and increase impulse purchasing is known as a
2. freeflow layout.
3. grid layout.
4. loop layout.
5. spine layout.

Difficulty: Moderate

Learning Objective: LO 3

66. 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

1. 3.0 minutes
2. 1.8 minutes
3. 1.5 minutes
4. 0.03 minutes

Difficulty: Moderate

Learning Objective: LO 3

Solution: Cd = 6 × 60/200 = 1.8 minutes

1. A ________layout encourages customer familiarity, has low costs, and is easy to clean.
2. freeflow layout
3. grid layout
4. spine layout
5. loop layout

Difficulty: Easy

Learning Objective: LO 3

• 1. 68. 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.

Difficulty: Easy

Learning Objective: LO 3

69. With line balancing the maximum amount of time the product is allowed to spend at each workstation is known as the

1. cycle time.
2. flow time.
3. efficiency of the line.
4. balance delay.

Difficulty: Easy

Learning Objective: LO 3

70. To maximize an assembly line’s efficiency the

1. line’s balance delay must be minimized.
2. line’s balance delay must be maximized.
3. cycle time must be less than the flow time.
4. flow time must be less than the cycle time.

Difficulty: Moderate

Learning Objective: LO 3

71. A company has a target output rate of 40 units every five hours when its line is fully operational. To achieve this target the firm must have a desired cycle time of

1. more than 12.50 minutes.
2. more than 10.00 minutes.
3. 7.5 minutes or less.
4. 8 minutes or less.

Difficulty: Moderate

Learning Objective: LO 3

Solution: Cd = 5 × 60/40 = 7.5 minutes

72. A company wants to produce 150 units during a 7-hour day. The desired cycle time needed to achieve this level of output is

1. 3.5 minutes.
2. 3.25 minutes.
3. 3.00 minutes.
4. 2.8 minutes.

Difficulty: Moderate

Learning Objective: LO 3

Solution: Cd = 7 × 60/150 = 2.8 minutes

73. In a product layout, the process of assigning tasks to work stations is referred to as _________ balancing.

1. station
2. product
3. line
4. work

Difficulty: Easy

Learning Objective: LO 3

74. Cycle time refers to the

1. time required for a product to go through a process layout.
2. time between finished units coming off an assembly line.
3. time needed to complete the tasks at a workstation.
4. difference between task time and workstation time.

Difficulty: Moderate

Learning Objective: LO 3

75. An assembly line consists of three workstations (WS) with each station’s activity time as shown.

WS 1

5 minutes

WS 3

4 minutes

WS 2

3 minutes

The flow time for items on this line would be

• 1. 5 minutes.
  2. 3 minutes.
  3. 4 minutes.
  4. 12 minutes.

Difficulty: Moderate

Learning Objective: LO 3

Solution: FT = 5 + 3 + 4 = 12 minutes

76. An assembly line consists of three workstations (WS) with each station’s activity time as shown.

WS 1

5 minutes

WS 3

4 minutes

WS 2

3 minutes

The cycle time for this line is

1. 5 minutes.
2. 3 minutes.
3. 4 minutes.
4. 12 minutes.

Difficulty: Moderate

Learning Objective: LO 3

Solution: Cycle time = Max{5,3,4} = 5 minutes

1. An assembly line consists of three workstations (WS) with each station’s activity time as shown.

WS 1

5 minutes

WS 3

4 minutes

WS 2

3 minutes

When fully operational this line could assemble _______ completed items every 60 minutes.

1. 20
2. 15
3. 12
4. 5

Difficulty: Moderate

Learning Objective: LO 3

Solution: Cycle time = Max{5,3,4} = 5 minutes; 60/5 = 12 items every 60 minutes

78. An assembly line consists of three workstations (WS) with each station’s activity time as shown.

WS 1

5 minutes

WS 3

4 minutes

WS 2

3 minutes

When fully operational the maximum output for this line in 8 hours of production time would be

• 1. 40 units
  2. 96 units
  3. 120 units
  4. 160 units

Difficulty: Hard

Learning Objective: LO 3

Solution: Cycle time = Max{5,3,4} = 5 minutes; Output = 480 minutes/5 = 96 items

79. If the line currently assembles 10 units every hour when fully functional, then the line’s balance delay at this rate of output is

WS 1

5 minutes

WS 3

4 minutes

WS 2

3 minutes

1. 66.67 %
2. 33.33%
3. 80.00%
4. 20.00%

Difficulty: Hard

Learning Objective: LO 3

Solution: Balance delay=1 − (12/15) = 0.20 or 20%

80. Which of the following is not an area of advantage of cellular layouts?

1. material handling
2. setup time
3. capital investment
4. control

Difficulty: Moderate

Learning Objective: LO 4

81. Which of the following is not an area of disadvantage of cellular layouts?

1. cell balance
2. work-in-process inventory
3. capital investment
4. training and scheduling

Difficulty: Moderate

Learning Objective: LO 4

82. Which one of the following factors is not important to the design and operation of a mixed-model assembly line?

1. model sequencing
2. line balancing
3. u-shaped lines
4. All of these answer choices is correct.

Difficulty: Moderate

Learning Objective: LO 4

83. is a group technology technique that reorders part routing matrices to identify families of parts with similar processing requirements.

1. Process flow analysis
2. Production flow analysis
3. Cycle analysis
4. Group analysis

Difficulty: Moderate

Learning Objective: LO 4

84. Which of the following is not an advantage of cellular layouts?

1. easier to automate
2. easier to control
3. increased work-in-process inventory
4. reduced setup time

Difficulty: Moderate

Learning Objective: LO 4

1. Which one of the following is not an example of a hybrid facility layout?
2. Fixed-position
3. Mixed-model
4. Cellular
5. Flexible manufacturing

Difficulty: Moderate

Learning Objective: LO 4

Short Answer Questions

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

Difficulty: Hard

Learning Objective: LO 2

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

Difficulty: Hard

Learning Objective: LO 2

88. Briefly describe a cellular layout and its objectives.

Difficulty: Moderate

Learning Objective: LO 4

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

Difficulty: Moderate

Learning Objective: LO 2

90. What are the advantages of a cellular layout?

Difficulty: Moderate

Learning Objective: LO 4

91. Briefly list the disadvantages of a cellular layout.

Among the disadvantages of cellular layouts are: (1) inadequate part families; (2) poorly balanced cells; (3) expanded training and scheduling of workers; and (4) increased capital investment.

Difficulty: Moderate

Learning Objective: LO 4

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

Difficulty: Hard

Learning Objective: LO 3

93. Describe a flexible manufacturing system (FMS).

A flexible manufacturing system (FMS) consists of numerous programmable machine tools connected by an automated material handling system and controlled by a common computer network. It is different from traditional automation which is fixed for a specific task. An FMS combines flexibility with efficiency. The flexibility comes from the ability to change tools automatically while the efficiency is derived from reductions in setup and queue times.

Difficulty: Medium

Learning Objective: 4

94. Capacity decisions affect __________.

a) development of new products

b) vertical integration

c) economies of scale

d) horizontal integration

95. The best operating level for a facility is the percent of capacity utilization that __________.

a) is as close to 100% of capacity as possible

b) maximizes profits

c) minimizes fixed cost

d) minimizes average unit cost

96. The average cost per chip placement for printed circuit-board assembly is 32 cents in factories with a volume of 25 million placements, 15 cents in factories with 200 million placements, and 10 cents in factories with 800 million placements. This is an example of __________.

a) vertical integration

b) a capacity cushion

c) economies of scale

d) Moore’s law

97. Which of the following does not explain economies of scale?

a) operating efficiency increases as workers gain experience

b) the company controls or owns its main suppliers

c) operating costs increase less than proportional to the outputs level

d) quantity discounts for material purchases

98. Capacity cushions __________.

a) are higher in capital intensive industries with less flexibility and higher costs

b) are usually 20% or 10% and sometimes zero but never negative

c) are the percent of capacity not utilized

d) are the maximum expansion that could be carried out before diseconomies of scale begin

99. A block diagram is a __________.

a) type of schematic layout diagram that includes space requirements

b) format for displaying manager preferences for department locations

c) schematic diagram that uses weighted lines to denote location preferences

d) a graphical representation of a load summary chart

100. The basic objective of the layout decision is to __________.

a) arrange activities in a line according to the sequence of operations needed

b) minimize the number of nonadjacent loads

c) ensure a smooth flow of work, material, people, and information through the system

d) conform to manager preferences

101. A production facility consists of five units, arranged as shown in the diagram below.

Assume that the forklift used is very flexible and allows diagonal movements (e.g., units 1 and 4 are adjacent).

The table below shows the load summary:

The total number of nonadjacent loads is __________.

a) 50

b) 75

c) 175

d) 225

102. A production facility consists of five units, arranged as shown in the diagram below.

Assume that the forklift used is very flexible and allows diagonal movements (e.g., units 1 and 4 are adjacent).

The table below shows the load summary:

If units 5 and 4 switch places, the total number of nonadjacent would be __________.

a) 50

b) 75

c) 175

d) 225

103. A production facility consists of five units, arranged as shown in the diagram below.

Assume that the forklift used is very flexible and allows diagonal movements (e.g., units 1 and 4 are adjacent).

The table below shows the load summary:

If units 5 and 4 switch places, the total number of nonadjacent would be __________.

a) 25, and that is the minimum possible total nonadjacent loads

b) 175, and that is the total possible total nonadjacent loads

c) 25, but the total nonadjacent loads can be lower

d) 175, but the total nonadjacent loads can be lower

104. A production facility consists of five units, arranged as shown in the diagram below.

Assume that the forklift used is very flexible and allows diagonal movements (e.g., units 1 and 4 are adjacent).

The table below shows the load summary:

By relocating the production units, the minimum possible number of nonadjacent loads is __________.

a) 0

b) 25

c) 65

d) 85