Operations And Supply Chain Management 15Th edition By Jacobs – Test Bank

Operations And Supply Chain Management 15Th edition By Jacobs – Test Bank

Chapter 07 Test Bank Static

1. Process selection refers to the strategic decision of choosing the volume of output to produce in a manufacturing facility depending upon the way that facility produces.

FALSE

Process selection refers to the strategic decision of selecting which kind of production processes to use to produce a product or provide a service.

AACSB: Analytic
Blooms: Remember
Difficulty: 1 Easy
Learning Objective: 07-02 Explain how manufacturing processes are organized.
Topic: How Production Processes Are Organized

2. Process selection refers to the strategic decision of selecting which kind of production processes to use to produce a product or provide a service.

TRUE

Process selection refers to the strategic decision of selecting which kind of production processes to use to produce a product or provide a service.

AACSB: Analytic
Blooms: Remember
Difficulty: 1 Easy
Learning Objective: 07-02 Explain how manufacturing processes are organized.
Topic: How Production Processes Are Organized

3. A continuous process indicates production of discrete parts moving from workstation to workstation at a controlled rate.

FALSE

A continuous process is similar to an assembly line in that production follows a predetermined sequence of steps, but the flow is continuous such as with liquids, rather than discrete.

AACSB: Analytic
Blooms: Remember
Difficulty: 2 Medium
Learning Objective: 07-02 Explain how manufacturing processes are organized.
Topic: How Production Processes Are Organized

4. One difference between an assembly line process flow and a continuous process flow is that on the assembly line the flow is discrete rather than continuous.

TRUE

A continuous process is similar to an assembly line in that production follows a predetermined sequence of steps, but the flow is continuous such as with liquids, rather than discrete.

AACSB: Analytic
Blooms: Remember
Difficulty: 1 Easy
Learning Objective: 07-02 Explain how manufacturing processes are organized.
Topic: How Production Processes Are Organized

5. One trade-off illustrated by the product-process matrix is between flexibility and cost.

TRUE

To produce nonstandard products at relatively low volumes, work centers (flexible) should be used. A highly standardized product (low-cost commodity) produced at high volumes should be produced using an assembly line or a continuous process.

AACSB: Analytic
Blooms: Remember
Difficulty: 1 Easy
Learning Objective: 07-02 Explain how manufacturing processes are organized.
Topic: How Production Processes Are Organized

6. The volume requirements for the product are one determinant of the choice of which process structure to select.

TRUE

Two dimensions (of the product/process matrix, Exhibit 7.2) are shown. The first dimension relates to the volume of a particular product or group of standardized products. Standardization is shown on the vertical axis and refers to variations in the product that is produced. These variations are measured in terms of geometric differences, material differences, and so on. Standardized products are highly similar from a manufacturing processing point of view, whereas low standardized products require different processes.

AACSB: Analytic
Blooms: Remember
Difficulty: 1 Easy
Learning Objective: 07-02 Explain how manufacturing processes are organized.
Topic: How Production Processes Are Organized

7. One methodology used to evaluate equipment investment decisions where the investment entails an initial investment, fixed costs, and variable costs is break-even analysis.

TRUE

A standard approach to choosing among alternative processes or equipment is break-even analysis.

AACSB: Analytic
Blooms: Remember
Difficulty: 1 Easy
Learning Objective: 07-03 Analyze simple manufacturing processes.
Topic: Break-Even Analysis

8. Break-even analysis can only be used in production equipment decision making when dealing solely with fixed costs, not variable costs.

FALSE

Break-even analysis is most suitable when processes and equipment entail a large initial investment and fixed cost, and when variable costs are reasonably proportional to the number of units produced.

AACSB: Analytic
Blooms: Remember
Difficulty: 2 Medium
Learning Objective: 07-03 Analyze simple manufacturing processes.
Topic: Break-Even Analysis