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#### Operations Management 1st Edition by Cachon – Test Bank

Chapter 06 Test Bank __KEY__

- All learning curves have an exponential growth trajectory.

__FALSE__

There are at least three forms of learning curves: exponential growth, exponential decay, and diminishing return growth. [QUESTION]

*AACSB: Analytical Thinking*

*Accessibility: Keyboard Navigation*

*Blooms: Remember*

*Difficulty: 1 Easy*

*Learning Objective: 06-01 Distinguish between various shapes of learning curves.*

*Topic: Various Forms of the Learning Curve*

*Â *

- The power law assumes a constant rate of improvement with each doubling of cumulative experience.

__TRUE__

The power law assumes performance improves by a fixed percentage with each doubling of cumulative experience.

*AACSB: Analytical Thinking*

*Accessibility: Keyboard Navigation*

*Blooms: Remember*

*Difficulty: 1 Easy*

*Learning Objective: 06-02 Determine the unit cost of a process given a learning rate and an experience level.*

*Topic: The Power Law*

*Â *

- A log-log plot of a learning curve that follows the power law shows a non-linear decrease.

__FALSE__

A log-log plot of a learning curve that follows the power law shows a non-linear decrease as a straight line.

*AACSB: Analytical Thinking*

*Accessibility: Keyboard Navigation*

*Blooms: Remember*

*Difficulty: 1 Easy*

*Learning Objective: 06-03 Estimate the learning rate using past cost dat*

*A.*

*Topic: Estimating the Learning Curve Using a Linear Log-Log Graph*

*Â *

- For volumes greater than 1, the cumulative learning curve coefficients are always bigger than the learning curve coefficients.

__TRUE__

Both coefficients are equal to one for the first unit independent of learning rates. After this, the cumulative coefficients are bigger. [QUESTION]

*AACSB: Analytical Thinking*

*Accessibility: Keyboard Navigation*

*Blooms: Understand*

*Difficulty: 2 Medium*

*Learning Objective: 06-05 Predict cumulative cost using the LCC method.*

*Topic: Using Learning Curve Coefficients to Predict Cumulative Costs*

*Â *

- The average time an employee spends with a company before leaving is the average tenure of the employee.

__FALSE__

The average time employees spends with a company before leaving is twice the average tenure of the employees.

*AACSB: Analytical Thinking*

*Accessibility: Keyboard Navigation*

*Blooms: Understand*

*Difficulty: 2 Medium*

*Learning Objective: 06-06 Determine employee turnover and average tenure.*

*Topic: Employee Turnover and Its Effect on Learning*

*Â *

- Standardization does not apply to service settings because of the high variability in processing times.

__FALSE__

There are three elements to standardization: processing time, work sequence, and inventory. Work sequence can be standardized in service settings.

*AACSB: Analytical Thinking*

*Accessibility: Keyboard Navigation*

*Blooms: Remember*

*Difficulty: 1 Easy*

*Learning Objective: 06-07 Understand the benefits of documentation and standardization.*

*Topic: Standardization as a Way to Avoid Relearning*

*Â *

- The most common form of learning curves uses the following measures of performance to plot against process experience EXCEPT:

- labor content.
- unit cost.
- processing time.

Interest rate is set by the financial market and is independent of the experience of a process.

*AACSB: Analytical Thinking*

*Accessibility: Keyboard Navigation*

*Blooms: Remember*

*Difficulty: 1 Easy*

*Learning Objective: 06-01 Distinguish between various shapes of learning curves.*

*Topic: Various Forms of the Learning Curve*

*Â *

- Which of the following learning curves captures the relationship between the percentage of defects (
*y*-axis) and the number of times an operation is performed (*x*-axis)?

__Â __

__A.__

__Â __

B

.

D.

The number of defects decreases and levels off to zero with cumulative experience.

*AACSB: Analytical Thinking*

*Blooms: Remember*

*Difficulty: 1 Easy*

*Learning Objective: 06-01 Distinguish between various shapes of learning curves.*

*Topic: Various Forms of the Learning Curve*

*Â *

- A(n) ________ learning curve is indicative of a positive relationship between the experience with a process and its performance measure such as production yield or customer satisfaction score.

- downward-sloping
- flat
- bell-shaped

As experience with a process increases, so does performance. A higher production yield or customer satisfaction score is indicative of better performance. Therefore, the relationship between the two is positive, resulting in an upward-sloping learning curve.

*AACSB: Analytical Thinking*

*Accessibility: Keyboard Navigation*

*Blooms: Remember*

*Difficulty: 1 Easy*

*Learning Objective: 06-01 Distinguish between various shapes of learning curves.*

*Topic: Various Forms of the Learning Curve*

*Â *

- A(n) ________ learning curve is indicative of a negative relationship between the experience with the process and its performance measure such as processing time or number of defects.

__Â __

- upward-sloping
- flat
- bell-shaped

As experience with a process increases, so does performance. A lower processing time or number of defects is indicative of better performance. Therefore, the relationship between the two is negative, resulting in a downward-sloping learning curve.

*AACSB: Analytical Thinking*

*Accessibility: Keyboard Navigation*

*Blooms: Remember*

*Difficulty: 1 Easy*

*Learning Objective: 06-01 Distinguish between various shapes of learning curves.*

*Topic: Various Forms of the Learning Curve*

*Â *

- Two different performance measures are used on the same process to demonstrate how the process improves with experience, as shown in the following learning curves. What conclusions can be drawn?

- The amount of learning is higher when using capacity as a performance measure as opposed to processing time.
- Processing time should not be used as a performance measure.
- Capacity should not be used as a performance measure.

Both capacity and processing time are valid performance measures. Because both are measuring the same process, their underlying amount of learning should be the same.

*AACSB: Analytical Thinking*

*Blooms: Understand*

*Difficulty: 2 Medium*

*Learning Objective: 06-01 Distinguish between various shapes of learning curves.*

*Topic: Various Forms of the Learning Curve*

*Â *

- Which of the following is the most likely shape of the learning curve for the given situation: “Number of errors found in essays written by students in a writing class throughout the semester.”

- Linear growth
- Exponential growth
- Diminishing-return growth

Fewer mistakes are made with cumulative learning that ultimately reaches an asymptote of zero with growing experience, resulting in an exponential decay process.

*AACSB: Analytical Thinking*

*Accessibility: Keyboard Navigation*

*Blooms: Understand*

*Difficulty: 2 Medium*

*Learning Objective: 06-01 Distinguish between various shapes of learning curves.*

*Topic: Various Forms of the Learning Curve*

*Â *

- When the power law is applied to unit costs, unit costs exhibit a(n) _________.

- exponential growth
- diminishing return growth
- linear growth

The power law plots unit costs against cumulative output, showing declining unit costs with cumulative output or an exponential decay process.

*AACSB: Analytical Thinking*

*Accessibility: Keyboard Navigation*

*Blooms: Remember*

*Difficulty: 1 Easy*

*Learning Objective: 06-02 Determine the unit cost of a process given a learning rate and an experience level.*

*Topic: The Power Law*

*Â *

- The power law portrays a common form of a learning curve that uses __________ as a dependent variable and ________________ as the independent variable.

- cumulative output, unit costs
- production yield, learning
- learning, production yield

The power law plots unit costs (*y*-axis) against cumulative output (*x*-axis).

*AACSB: Analytical Thinking*

*Accessibility: Keyboard Navigation*

*Blooms: Remember*

*Difficulty: 1 Easy*

*Learning Objective: 06-02 Determine the unit cost of a process given a learning rate and an experience level.*

*Topic: The Power Law*

*Â *

- Consider a process with a unit cost of $50 for the first unit and a learning rate of 0.9. What will be the unit cost for the 64th unit?

- 38.08
- 29.16
- 0.06

*c*(64) = *c*(1) Ã—0.9^{log}_{2(64) }= 26.57.

*AACSB: Analytical Thinking*

*Accessibility: Keyboard Navigation*

*Blooms: Remember*

*Difficulty: 2 Medium*

*Topic: The Power Law*

*Â *

- A learning rate of 0.9 means each _________ Â of the cumulative output reduces unit costs by __________.
- tripling, 90%
- tripling, 10%
- doubling, 90%

A learning rate of 0.9 means each doubling Â of the cumulative output reduces unit costs by 10%.

*AACSB: Analytical Thinking*

*Accessibility: Keyboard Navigation*

*Blooms: Remember*

*Difficulty: 1 Easy*

*Topic: The Power Law*

*Â *

- A learning curve shows the ______ gets smaller from unit to unit, but the _________ remains constant with each doubling of cumulative output.

__Â __

- percentage improvement in unit cost, absolute improvement
- absolute improvement in unit profit, percentage improvement
- percentage improvement in unit profit, absolute improvement

A learning curve shows the absolute improvement in unit cost gets smaller from unit to unit, but the percentage improvement remains constant with each doubling of cumulative output.

*AACSB: Analytical Thinking*

*Accessibility: Keyboard Navigation*

*Blooms: Remember*

*Difficulty: 1 Easy*

*Topic: The Power Law*

*Â *

- Consider a process with a unit cost of $100 for the first unit and a learning rate of 0.5. What will be the unit cost for the 32nd unit?

- $30.00
- $12.50
- $6.250

*c*(32) = *c*(1) Ã—0.5^{log}_{2(32) }= 3.125.

*AACSB: Analytical Thinking*

*Accessibility: Keyboard Navigation*

*Blooms: Remember*

*Difficulty: 2 Medium*

*Topic: The Power Law*

*Â *

- Consider a process with a learning rate of 0.5. What will be the unit cost for the first unit if the unit cost for the 15th unit is $16?

- $128
- $120
- $256

*c*(1) = *c*(15)/0.5^{log}_{2(15)} = 16/0.067 = 240.

*AACSB: Analytical Thinking*

*Accessibility: Keyboard Navigation*

*Blooms: Understand*

*Difficulty: 2 Medium*

*Topic: The Power Law*

*Â *

- Which of the following plots is the learning curve that portrays the power law on a log-log graph?

A.

B.

C.

When portraying the power law on a log-log graph, the learning curve becomes a linear, downward-sloping straight line.

*AACSB: Analytical Thinking*

*Blooms: Remember*

*Difficulty: 1 Easy*

*Learning Objective: 06-03 Estimate the learning rate using past cost data.*

*Topic: Estimating the Learning Curve Using a Linear Log-Log Graph*

*Â *

- When portraying the power law on a log-log graph, the
*y*-axis is the __________ and the*x*-axis is the _________________.

- cumulative output, absolute improvement in unit costs
- absolute improvement in unit costs, cumulative output
- logarithm of the cumulative output, logarithm of the unit costs

A log-log graph is a plot with the logarithm of the unit costs on the *y*-axis and the logarithm of the cumulative output on the *x*-axis.

*AACSB: Analytical Thinking*

*Accessibility: Keyboard Navigation*

*Blooms: Remember*

*Difficulty: 1 Easy*

*Learning Objective: 06-03 Estimate the learning rate using past cost data.*

*Topic: Estimating the Learning Curve Using a Linear Log-Log Graph*

*Â *

- The ____________ of the line in the log-log version of the learning curve is determined by the learning rate.

__Â __

- intercept
- logarithm
- convexity

The slope of the line in the log-log version of the learning curve is determined by the learning rate.

*AACSB: Analytical Thinking*

*Accessibility: Keyboard Navigation*

*Blooms: Remember*

*Difficulty: 1 Easy*

*Learning Objective: 06-03 Estimate the learning rate using past cost data.*

*Topic: Estimating the Learning Curve Using a Linear Log-Log Graph*

*Â *

- If learning happens faster, the learning rate is _________ and the downward slope of the line in the log-log version of the learning curve is _________.

- larger, flatter
- larger, steeper
- smaller, flatter

If learning happens faster, the learning rate is smaller and the downward slope of the line in the log-log version of the learning curve is steeper.

*AACSB: Analytical Thinking*

*Accessibility: Keyboard Navigation*

*Blooms: Understand*

*Difficulty: 2 Medium*

*Learning Objective: 06-03 Estimate the learning rate using past cost data.*

*Topic: Estimating the Learning Curve Using a Linear Log-Log Graph*

*Â *

- _________ is a statistical approach to determine the _______ of the log-log representation of the learning curve.

- Probability analysis, slope
- Probability analysis, intercept
- Regression analysis, intercept

Regression analysis is a statistical approach to determine the slope of the log-log representation of the learning curve.

*AACSB: Analytical Thinking*

*Accessibility: Keyboard Navigation*

*Blooms: Remember*

*Difficulty: 1 Easy*

*Learning Objective: 06-03 Estimate the learning rate using past cost data.*

*Topic: Estimating the Learning Curve Using a Linear Log-Log Graph*

*Â *

- C&A has a cumulative output of 1000 units and unit costs of $50 in 2005. A decade later, C&A has a cumulative output of 1500 units and unit costs of $40. The learning curve in a log-log graph is linear. By how much does C&A improve its unit costs with each doubling of cumulative output? (Use Table 6.2.)

- 99%
- 68%
- 1%

Slope = [ln(40) â€“â€“ ln(50)]/[ln(1500) â€“ ln(1000)] = â€“0.55; LR = 0.68; Cost improvement = 1 â€“ 0.68 = 0.32.

*AACSB: Analytical Thinking*

*Accessibility: Keyboard Navigation*

*Blooms: Analyze*

*Difficulty: 3 Hard*

*Learning Objective: 06-03 Estimate the learning rate using past cost data.*

*Topic: Estimating the Learning Curve Using a Linear Log-Log Graph*

*Â *

- C&A started production in two factories in 2005. Both factories had the same cumulative output and unit costs in the first year. A decade later, factory A has a greater cumulative output than factory B. The unit costs in 2015 are the same between the two factories. Both learning curves in a log-log graph are linear. Which factory has a higher learning rate?

- Factory A
- Both factories have the same learning rate.
- Cannot be determined

That factory A has a greater cumulative output than factory B in 2015 is the only difference between the two factories. Therefore, the slope of the log-log version of the learning curve for A is steeper than that of B. This means that the learning rate of A is lower than that of B.

*AACSB: Analytical Thinking*

*Accessibility: Keyboard Navigation*

*Blooms: Analyze*

*Difficulty: 3 Hard*

*Learning Objective: 06-03 Estimate the learning rate using past cost data.*

*Topic: Estimating the Learning Curve Using a Linear Log-Log Graph*

*Â *

- C&A started production in two factories in 2005. Both factories had the same cumulative output and unit costs in the first year. A decade later, factory A has a greater cumulative output than factory B. The unit costs in 2015 are the same between the two factories and both learning curves in a log-log graph are linear. Which factory has a higher performance improvement (which firm learns faster)?

- Factory B
- Both factories have the same learning rate.
- Cannot be determined

That factory A has a greater cumulative output than factory B in 2015 is the only difference between the two factories. Therefore, the slope of the log-log version of the learning curve for A is steeper than that of B. This means that the learning rate of A is lower than that of B. A lower learning rate means a higher reduction in unit costs or better performance improvement.

*AACSB: Analytical Thinking*

*Accessibility: Keyboard Navigation*

*Blooms: Analyze*

*Difficulty: 3 Hard*

*Learning Objective: 06-03 Estimate the learning rate using past cost data.*

*Topic: Estimating the Learning Curve Using a Linear Log-Log Graph*

*Â *

- A process has an initial cost of $100, a learning rate of 0.7, and a cumulative experience of 500. The learning curve in a log-log graph is linear. Using the learning curve coefficient method, what will be the expected unit costs in producing the 500th unit? (Use Table 6.3.)

- $45
- $9
- $6.30

LCC(500, 0.7) = 0.04. Expected unit costs = $100 Ã—0.04 = $4.

*AACSB: Analytical Thinking*

*Accessibility: Keyboard Navigation*

*Blooms: Remember*

*Difficulty: 2 Medium*

*Learning Objective: 06-04 Predict unit cost by using the LCC method and by using the learning curve directly.*

*Topic: Using Learning Curve Coefficients to Predict Costs*

*Â *

- A process has a learning rate of 0.75. The expected unit costs to produce the 1000th unit is $5. The learning curve in a log-log graph is linear. Using the learning curve coefficient method, what is its initial cost? (Use Table 6.3.)

- $97.50
- $9.75
- $8.79

LCC(1000, 0.75) = 0.057.Â c(1) Ã—0.057 = c(1000), and we are given c(1000) = $5.Â c(1) = $5/0.057 = $87.9

*AACSB: Analytical Thinking*

*Accessibility: Keyboard Navigation*

*Blooms: Remember*

*Difficulty: 3 Hard*

*Learning Objective: 06-04 Predict unit cost by using the LCC method and by using the learning curve directly.*

*Topic: Using Learning Curve Coefficients to Predict Costs*

*Â *

- C&A has an initial cost of $5000 and the slope of its learning curve in a log-log graph is â€“1.5. What will be its expected unit costs to produce the 200th unit?

- $55.90
- $17.70
- $5.59

*c*(200) = *c*(1) Ã—*N ^{b}* = 5000 Ã—200

^{â€“1.4 }= 3.00.

*AACSB: Analytical Thinking*

*Accessibility: Keyboard Navigation*

*Blooms: Remember*

*Difficulty: 2 Medium*

*Learning Objective: 06-04 Predict unit cost by using the LCC method and by using the learning curve directly.*

*Topic: Using Learning Curve Coefficients to Predict Costs*

*Â *

- Which of the following statements about learning curve coefficients is FALSE?

- A learning curve coefficient, LCC(
*x*,*y*), gives the cost to produce 1 unit in a process with an initial cost of 1, a cumulative output of*x*, and a learning rate of*y*. - A higher value of experience leads to a lower value of learning curve coefficient.
- A lower value of learning rate leads to a lower value of learning curve coefficient.

Besides using the LCC method, the cost of making one unit in a process can be predicted by using the learning curve function directly.

*AACSB: Analytical Thinking*

*Accessibility: Keyboard Navigation*

*Blooms: Understand*

*Difficulty: 2 Medium*

*Topic: Using Learning Curve Coefficients to Predict Costs*

*Â *

- C&A has an initial cost of $500 and $20 unit costs at a cumulative output of 500. The learning curve in a log-log graph is linear. Using the LCC method, what will be its learning rate? (Use Table 6.3.)

__Â __

- 0.8
- 0.9
- Cannot be determined

*c*(500) = $20 = $500 Ã—LCC(500, LR). Therefore, LCC(500, LR) = 20/500 = 0.04. From the LCC table, LR = 0.7.

*AACSB: Analytical Thinking*

*Accessibility: Keyboard Navigation*

*Blooms: Remember*

*Difficulty: 2 Medium*

*Topic: Using Learning Curve Coefficients to Predict Costs*

*Â *

- C&A has an initial cost of $500 and $20 unit costs at a cumulative output of 500. The learning curve in a log-log graph is linear. Using the learning curve function directly (i.e., without using the LCC method), what will be its learning rate?

- 0.8
- 0.9
- Cannot be determined

*c*(500) = *c*(1) Ã— LR^{log}2^{(N)}, or 20 = 500 Ã— LR^{log}_{2}^{(500)}, or LR^{8.97} = 0.04. log_{2}(LR) =log_{2}(0.04)/8.97= â€“0.52.LR = 2^{â€“0 .52}, or 0.7.

*AACSB: Analytical Thinking*

*Accessibility: Keyboard Navigation*

*Blooms: Understand*

*Difficulty: 3 Hard*

*Topic: Using Learning Curve Coefficients to Predict Costs*

*Â *

- C&A has an initial cost of $500 and $20 unit costs at a cumulative output of 500. The learning curve in a log-log graph is linear. The following measures can be computed from the given information EXCEPT:

- the learning rate.
- the slope of the learning curve.
- the unit costs at a cumulative output of 1000.

The slope of the learning curve can be found by dividing [ln(500) â€“ ln(1)] by [ln(20) â€“ ln(500)]. The learning rate can be found by looking it up from the LCC table using LCC(500, LR) = 20/500. The unit costs at a cumulative output of 1000 = 500 Ã—LR^{log}_{2}^{(1000)}. The only item that cannot be computed with the given information is the profit margin.

*AACSB: Analytical Thinking*

*Blooms: Understand*

*Difficulty: 2 Medium*

*Topic: Using Learning Curve Coefficients to Predict Costs*

*Â *

- When considering learning only, which of the following statements is TRUE when computing the cumulative costs of producing a certain quantity of output (greater than one)?

- The cumulative costs of producing a certain quantity of output are higher than the product of the initial costs and the output quantity.
- The cumulative costs of producing a certain quantity of output are equal to the product of the initial costs and the output quantity.
- The cumulative costs of producing a certain quantity of output are equal to the quotient of the initial costs and the output quantity

Learning lowers the unit costs of cumulative output. Therefore, the cumulative costs producing a certain quantity of output are lower than the product of the initial costs and the output quantity.

*AACSB: Analytical Thinking*

*Accessibility: Keyboard Navigation*

*Blooms: Remember*

*Difficulty: 1 Easy*

*Learning Objective: 06-05 Predict cumulative cost using the LCC method.*

*Topic: Using Learning Curve Coefficients to Predict Cumulative Costs*

*Â *

- Which of the following is TRUE about the cumulative learning curve coefficient?

- A cumulative learning curve coefficient, CLCC(
*x*,*y*), gives the cost to produce 1 unit in a process with an initial cost of 1, a cumulative output of*x*, and a learning rate of*y*. - A higher value of experience leads to a lower value of the cumulative learning curve coefficient.
- A lower value of learning rate leads to a higher value of the cumulative learning curve coefficient.

The CLCC of the first unit is 1 across all learning rates.

*AACSB: Analytical Thinking*

*Accessibility: Keyboard Navigation*

*Blooms: Understand*

*Difficulty: 2 Medium*

*Learning Objective: 06-05 Predict cumulative cost using the LCC method.*

*Topic: Using Learning Curve Coefficients to Predict Cumulative Costs*

*Â *

- What is the total cost of producing 100 units in a process that has a learning rate of 0.9 and an initial cost of $50? (Use Table 6.4.)

- $5000
- $49.66
- Cannot be determined

*c*(100) = *c*(1) Ã—CLCC(100, 0.9) = 50 Ã—58.14102 = $2907.05.

*AACSB: Analytical Thinking*

*Accessibility: Keyboard Navigation*

*Blooms: Remember*

*Difficulty: 2 Medium*

*Learning Objective: 06-05 Predict cumulative cost using the LCC method.*

*Topic: Using Learning Curve Coefficients to Predict Cumulative Costs*

*Â *

- The initial costs of a product increase by 15%. What will be the impact on the cost to produce 50 units if the process has a learning curve that follows the power law?

- Remains the same
- Decreases by 15%
- Cannot be determined

*c*(50) = *c*(1) Ã—CLCC(50, LR). *c*(1)_new = 1.15 while everything else stays the same; thus, *c*(50)_new = 1.15 Ã—CLCC(50, LR). % change = 1.15 – 1, or 15%.

*AACSB: Analytical Thinking*

*Accessibility: Keyboard Navigation*

*Blooms: Remember*

*Difficulty: 1 Easy*

*Learning Objective: 06-05 Predict cumulative cost using the LCC method.*

*Topic: Using Learning Curve Coefficients to Predict Cumulative Costs*

*Â *

- The cumulative cost of producing 100 units of a product is $7000. Assuming the process has a learning rate of 0.85 and follows the power law, what will be its initial cost? (Use Table 6.4.)

- $33.97
- $2378.76
- $4375.00

CLCC(100, 0.85) = 43.75387.

7000 = c(1) Ã— 43.75387.

c(1) = 7000/43.75387 = 159.88.

*AACSB: Analytical Thinking*

*Accessibility: Keyboard Navigation*

*Blooms: Remember*

*Difficulty: 1 Easy*

*Learning Objective: 06-05 Predict cumulative cost using the LCC method.*

*Topic: Using Learning Curve Coefficients to Predict Cumulative Costs*

*Â *

- The _______ the employee turnover, the ________ experience the average employee will have with their job.

- higher, more
- lower, less
- more, more

The higher the employee turnover, the more new employees with less experience will be hired.

*AACSB: Analytical Thinking*

*Accessibility: Keyboard Navigation*

*Blooms: Remember*

*Difficulty: 1 Easy*

*Learning Objective: 06-06 Determine employee turnover and average tenure.*

*Topic: Employee Turnover and Its Effect on Learning*

*Â *

- Company A has a more stable workforce than company B. Assuming that both companies have the same number of employees and initial costs, which of the following conclusions can be drawn?

- Company A has a higher employee turnover than company B.
- Company A needs to recruit more new employees each year than company B.
- Employees at company A have less experience than company B.

Employees spend more time with company A, resulting in lower turnover, fewer new employees recruited each year, and higher average tenure.

*AACSB: Analytical Thinking*

*Accessibility: Keyboard Navigation*

*Blooms: Apply*

*Difficulty: 3 Hard*

*Learning Objective: 06-06 Determine employee turnover and average tenure.*

*Topic: Employee Turnover and Its Effect on Learning*

*Â *

- Which of the following statements about employee turnover is TRUE?

- If the employee turnover decreases, the average tenure of an employee in the company decreases.
- If the employee turnover increases, the average time an employee spends with the company increases.
- If the employee turnover increases, the average number of employees increases.

If the employee turnover decreases, an employee on average stays with the company longer, leading to a higher average tenure and lower number of new recruits needed per year.

*AACSB: Analytical Thinking*

*Accessibility: Keyboard Navigation*

*Blooms: Understand*

*Difficulty: 2 Medium*

*Learning Objective: 06-06 Determine employee turnover and average tenure.*

*Topic: Employee Turnover and Its Effect on Learning*

*Â *

- A company has 1000 employees on average and they spend on average 8 years with the company. What is the number of new employees recruited each year and the average tenure of an employee?

- 62.5, 8
- 62.5, 4
- 125, 8

Number of new employees = Average number of employees/Average time with company = 1000/8 = 125. Average tenure = 1/2 Ã—Average time with company = 1/2 Ã—8 = 4 years.

*AACSB: Analytical Thinking*

*Accessibility: Keyboard Navigation*

*Blooms: Understand*

*Difficulty: 2 Medium*

*Learning Objective: 06-06 Determine employee turnover and average tenure.*

*Topic: Employee Turnover and Its Effect on Learning*

*Â *

- If employee turnover is doubled, what will be the effect on the average tenure of an employee?

- Doubled
- Remains unchanged
- Cannot be determined

Average tenure = 1/(2 Ã—Employee turnover).

*AACSB: Analytical Thinking*

*Accessibility: Keyboard Navigation*

*Blooms: Understand*

*Difficulty: 2 Medium*

*Learning Objective: 06-06 Determine employee turnover and average tenure.*

*Topic: Employee Turnover and Its Effect on Learning*

*Â *

- When applying ________ Law to compute employee turnover, the concept of a flow unit is equivalent to a(n) _____________.

- Littleâ€™s, product
- Mooreâ€™s, product
- Mooreâ€™s, employee

An employee is treated as a flow unit when applying Littleâ€™s Law to compute employee turnover.

*AACSB: Analytical Thinking*

*Accessibility: Keyboard Navigation*

*Blooms: Understand*

*Difficulty: 2 Medium*

*Learning Objective: 06-06 Determine employee turnover and average tenure.*

*Topic: Employee Turnover and Its Effect on Learning*

*Â *

- When you have information on the average tenure of an employee and the average number of employees, you will be able to compute the following EXCEPT:

- employee turnover.
- average time an employee spends with a company.
- number of new employees each year.

Employee turnover = 1/(2 Ã—Average tenure); Average time an employee spends with a company = 2 Ã—Average tenure.

*AACSB: Analytical Thinking*

*Accessibility: Keyboard Navigation*

*Blooms: Understand*

*Difficulty: 2 Medium*

*Learning Objective: 06-06 Determine employee turnover and average tenure.*

*Topic: Employee Turnover and Its Effect on Learning*

*Â *

- Which of the following is the way to compute employee turnover?

- 2 Ã—Average tenure
- 1/Average tenure
- 1/2 Ã—Average tenure

Employee turnover = 1/(2 Ã—Average tenure).

*AACSB: Analytical Thinking*

*Accessibility: Keyboard Navigation*

*Blooms: Remember*

*Difficulty: 1 Easy*

*Learning Objective: 06-06 Determine employee turnover and average tenure.*

*Topic: Employee Turnover and Its Effect on Learning*

*Â *

- The intent of process standardization includes the following EXCEPT:

- to avoid reinventing the wheel.
- to avoid recurrence of defects or mistakes that have happened in the past.
- to set a high standard of performing a particular activity in a process.

The intent of process standardization is to avoid relearning.

*AACSB: Analytical Thinking*

*Accessibility: Keyboard Navigation*

*Blooms: Remember*

*Difficulty: 1 Easy*

*Learning Objective: 06-07 Understand the benefits of documentation and standardization.*

*Topic: Standardization as a Way to Avoid Relearning*

*Â *

- A ___________ documents the best practice of how to conduct a particular activity in a process.

- to-do list
- labor law
- progress report

A standard work sheet documents the best practice of how to conduct a particular activity in a process.

*AACSB: Analytical Thinking*

*Accessibility: Keyboard Navigation*

*Blooms: Remember*

*Difficulty: 1 Easy*

*Learning Objective: 06-07 Understand the benefits of documentation and standardization.*

*Topic: Standardization as a Way to Avoid Relearning*

*Â *

- A ___________ documents the task sequence of how to perform an activity correctly.

- to-do list
- standard work sheet
- progress report

A checklist documents the task sequence of how to perform an activity correctly.

*AACSB: Analytical Thinking*

*Accessibility: Keyboard Navigation*

*Blooms: Remember*

*Difficulty: 1 Easy*

*Learning Objective: 06-07 Understand the benefits of documentation and standardization.*

*Topic: Standardization as a Way to Avoid Relearning*

*Â *

- The improvements gained through doing an activity over and over again without forethought is the result of ___________ learning.

__Â __

- automatic
- induced
- inspired

Autonomous learning refers to improvements from experience.

*AACSB: Analytical Thinking*

*Accessibility: Keyboard Navigation*

*Blooms: Remember*

*Difficulty: 1 Easy*

*Learning Objective: 06-08 Understand the key drivers of learning, including autonomous, induced learning, and the PDCA cycle.*

*Topic: Drivers of Learning*

*Â *

- Taking piano lessons to improve oneâ€™s piano-playing skill is an example of ____________ learning.

- autonomous
- automatic
- inspired

Induced learning refers to improvements from deliberate actions with investment in resources.

*AACSB: Analytical Thinking*

*Accessibility: Keyboard Navigation*

*Blooms: Remember*

*Difficulty: 1 Easy*

*Learning Objective: 06-08 Understand the key drivers of learning, including autonomous, induced learning, and the PDCA cycle.*

*Topic: Drivers of Learning*

*Â *

- Which of the following statements about induced learning is FALSE?

- Induced learning is a deliberate process.
- Induced learning is an iterative process.
- Induced learning follows the PDCA cycle.

Induced learning may not optimize short-term performance but will eventually lead to performance improvements.

*AACSB: Analytical Thinking*

*Accessibility: Keyboard Navigation*

*Blooms: Remember*

*Difficulty: 1 Easy*

*Learning Objective: 06-08 Understand the key drivers of learning, including autonomous, induced learning, and the PDCA cycle.*

*Topic: Drivers of Learning*

*Â *

- Which of the following is not a part of the PDCA cycle?

- Plan
- Check
- Act

The D in PDCA is Do, not Design

*AACSB: Analytical Thinking*

*Accessibility: Keyboard Navigation*

*Blooms: Remember*

*Difficulty: 1 Easy*

*Topic: Drivers of Learning*

*Â *

- Which of the following statements about autonomous learning is TRUE?

- It is a deliberate process.
- It is a one-step process.
- It follows the PDCA cycle.

Autonomous learning improves performance with experience.

*AACSB: Analytical Thinking*

*Accessibility: Keyboard Navigation*

*Blooms: Remember*

*Difficulty: 1 Easy*

*Topic: Drivers of Learning*

*Â *

- A(n) __________ signal-to-noise ratio is needed for learning to happen.

- weak
- distorted
- insignificant

A strong signal-to-noise ratio allows the driver of learning to be identified.

*AACSB: Analytical Thinking*

*Accessibility: Keyboard Navigation*

*Blooms: Remember*

*Difficulty: 1 Easy*

*Topic: Drivers of Learning*

Chapter 06 Test Bank Summary

Category |
# of Questions |

AACSB: Analytical Thinking | 56 |

Accessibility: Keyboard Navigation | 52 |

Blooms: Analyze | 3 |

Blooms: Apply | 1 |

Blooms: Remember | 37 |

Blooms: Understand | 15 |

Difficulty: 1 Easy | 30 |

Difficulty: 2 Medium | 20 |

Difficulty: 3 Hard | 6 |

Learning Objective: 06-01 Distinguish between various shapes of learning curves. | 7 |

8 | |

Learning Objective: 06-03 Estimate the learning rate using past cost data. | 9 |

7 | |

Learning Objective: 06-05 Predict cumulative cost using the LCC method. | 6 |

Learning Objective: 06-06 Determine employee turnover and average tenure. | 9 |

Learning Objective: 06-07 Understand the benefits of documentation and standardization. | 4 |

6 | |

Topic: Drivers of Learning | 6 |

Topic: Employee Turnover and Its Effect on Learning | 9 |

Topic: Estimating the Learning Curve Using a Linear Log-Log Graph | 9 |

Topic: Standardization as a Way to Avoid Relearning | 4 |

Topic: The Power Law | 8 |

Topic: Using Learning Curve Coefficients to Predict Costs | 7 |

Topic: Using Learning Curve Coefficients to Predict Cumulative Costs | 6 |

Topic: Various Forms of the Learning Curve | 7 |

Chapter 07 Test Bank KEY

- Setup involves different amounts of time depending on the actual amount to be made.

__FALSE__

Setup involves a fixed amount of time that is not directly related to the amount actually produced. [QUESTION]

*AACSB: Analytical Thinking*

*Accessibility: Keyboard Navigation*

*Blooms: Remember*

*Difficulty: 1 Easy*

*Learning Objective: 07-01 Identify the setup time in a process.*

*Topic: Setup Time*

*Â *

- The capacity of a resource with setups is dependent on the batch size.

__TRUE__

An increase in batch size will increase the capacity of a resource with setups with diminishing returns.

*AACSB: Analytical Thinking*

*Accessibility: Keyboard Navigation*

*Blooms: Remember*

*Difficulty: 1 Easy*

*Learning Objective: 07-02 Evaluate the capacity of a resource that has a setup time and is operated with a given batch size.*

*Topic: Capacity of a Process with Setups*

*Â *

- A resource with setups can be utilized 100%.

__FALSE__

A resource with setups cannot be utilized 100% as production must stop when it is doing a setup. [QUESTION]

*AACSB: Analytical Thinking*

*Accessibility: Keyboard Navigation*

*Blooms: Remember*

*Difficulty: 1 Easy*

*Learning Objective: 07-03 Evaluate the utilization of a resource that has a setup time.*

*Topic: Utilization in a Process with Setups*

*Â *

- A batch size should be chosen for a process with setups to make a trade-off between capacity and inventory.

__TRUE__

A batch size should be chosen for a process with setups so that it is not too large to incur high inventory holding costs and it is not too small so as to constrain the capacity of the process. [QUESTION]

*AACSB: Analytical Thinking*

*Accessibility: Keyboard Navigation*

*Blooms: Remember*

*Difficulty: 1 Easy*

*Learning Objective: 07-05 Find the batch size that minimizes inventory while not constraining the flow through a process.*

*Topic: Choose the Batch Size in a Process with Setups*

*Â *

- The average inventory of all items produced by a resource with setups will increase when there is an increase in the variety of products produced on that resource.

__TRUE__

Producing a variety of products requires more setups, which leads to larger batch sizes and therefore more inventory. [QUESTION]

*AACSB: Analytical Thinking*

*Accessibility: Keyboard Navigation*

*Blooms: Remember*

*Difficulty: 1 Easy*

*Learning Objective: 07-06 Find the production quantities of each item produced by a resource such that the resource minimizes inventory while satisfying all demand.*

*Topic: Setup Times and Product Variety*

*Â *

- It is impossible to increase both efficiency and variety at the same time.

__FALSE__

SMED and heijunka are ideas that enable Toyota to increase both efficiency and variety at the same time.

*AACSB: Analytical Thinking*

*Accessibility: Keyboard Navigation*

*Blooms: Remember*

*Difficulty: 1 Easy*

*Learning Objective: 07-07 Explain the different approaches for managing a process with setup times.*

*Topic: Managing Processes with Setup Times*

*Â *

- Which of the following statements about setups is FALSE?
- A setup is a set of activities.
- A setup is a required activity.
- Setup time is also called changeover time.

Setup time is not dependent on the number of units subsequently produced.

*AACSB: Analytical Thinking*

*Accessibility: Keyboard Navigation*

*Blooms: Understand*

*Difficulty: 2 Medium*

*Learning Objective: 07-01 Identify the setup time in a process.*

*Topic: Setup Time*

*Â *

- Which of the following is a setup activity?
- Applying finishing touches to a vehicle at an auto body shop.
- Putting frosting on donuts at a bakery.
- Ringing up sales at a cash register at a store.

Cleaning the waiting area is needed while no patients are actually served. Therefore, it is a setup activity.

*AACSB: Analytical Thinking*

*Accessibility: Keyboard Navigation*

*Blooms: Understand*

*Difficulty: 2 Medium*

*Learning Objective: 07-01 Identify the setup time in a process.*

*Topic: Setup Time*

*Â *

- Which of the following is NOT a setup activity?
- Preventive maintenance at a manufacturing facility.
- Quality control activities at an oil-processing plant.
- Baking bread in an oven at a bakery.

Sewing time is dependent on the number of units actually produced. Therefore, it is not a setup activity.

*AACSB: Analytical Thinking*

*Accessibility: Keyboard Navigation*

*Blooms: Understand*

*Difficulty: 2 Medium*

*Learning Objective: 07-01 Identify the setup time in a process.*

*Topic: Setup Time*

*Â *

- A cutting machine takes 10 minutes to cut a piece of component for a product. After cutting 200 pieces, the machine takes 5 minutes to be recalibrated. What is the setup time of the cutting process?
- 10 minutes
- 15 minutes
- 20 minutes

The time it takes to get ready for cutting is 5 minutes. This is the setup time.

*AACSB: Analytical Thinking*

*Accessibility: Keyboard Navigation*

*Blooms: Remember*

*Difficulty: 1 Easy*

*Learning Objective: 07-01 Identify the setup time in a process.*

*Topic: Setup Time*

*Â *

- C&A Cleaner uses a five-step process to dry clean garments: (1) tagging-attaching a number tag on each garment for tracking purposes; (2) stain pretreatment-identifying stains on garments and applying chemicals on the site of a stain; (3) dry cleaning-placing up to 80 pounds of garments in a large drum machine where water-free solvents are used to remove traces of dirt and oil; (4) spot cleaning-identifying and removing stains on each garment that did not come out earlier; (5) finishing-pressing each garment and retagging them before placing them in bags for pickup. Which of these five steps is a setup activity?

- Tagging
- Stain pretreatment
- Finishing

Dry cleaning is performed in a batch and is independent of the number of garments to be cleaned. Therefore, it is a setup activity.

*AACSB: Analytical Thinking*

*Accessibility: Keyboard Navigation*

*Blooms: Remember*

*Difficulty: 1 Easy*

*Learning Objective: 07-01 Identify the setup time in a process.*

*Topic: Setup Time*

*Â *

- C&A Furniture uses a four-step process to make its famous wood table:

Process | Processing Time (minutes) |

Millingâ€”table top | 10 |

Millingâ€”table stand | 5 |

Assembly | 15 |

Finishing | 20 |

The milling machine requires a setup time of 30 minutes to make table tops and a changeover time of 30 minutes to make table stands.What is the total setup time (in minutes) in the above process?

- 30
- 15
- 45

Milling setup = 30 minutes; Milling changeover = 30 minutes. Therefore, the total setup time = 60 minutes.

*AACSB: Analytical Thinking*

*Accessibility: Keyboard Navigation*

*Blooms: Remember*

*Difficulty: 1 Easy*

*Learning Objective: 07-01 Identify the setup time in a process.*

*Topic: Setup Time*

*Â *

- C&A Furniture uses a four-step process to make its famous wood table:

Process | Processing Time (minutes) |

Millingâ€”table top | 10 |

Millingâ€”table stand | 5 |

Assembly | 15 |

Finishing | 20 |

The milling machine requires a setup time of 30 minutes to make table tops and a changeover time of 30 minutes to make table stands.C&A works an 8-hour day.What is the capacity of the milling machine (in tables per day) if the batch size is 10?

- 0.05
- 6.40
- Cannot be determined

Total production and setup time for ten tables = 30 + (10 Ã— 10) + 30 + (5 Ã— 10) = 210 minutes. Capacity = 10/210 Ã— 8 Ã— 60 = 22.86 tables per day.

*AACSB: Analytical Thinking*

*Accessibility: Keyboard Navigation*

*Blooms: Remember*

*Difficulty: 1 Easy*

*Learning Objective: 07-02 Evaluate the capacity of a resource that has a setup time and is operated with a given batch size.*

*Topic: Capacity of a Process with Setups*

*Â *

- C&A Furniture uses a four-step process to make its famous wood table:

Process | Processing Time (minutes) |

Millingâ€”table top | 10 |

Millingâ€”table stand | 5 |

Assembly | 15 |

Finishing | 20 |

The milling machine requires a setup time of 30 minutes to make table tops and a changeover time of 30 minutes to make table stands.C&A works an 8-hour day.What is the capacity of the milling machine (in tables per day) if the batch size is 100?

- 6.4
- 133.3
- Cannot be determined

Total production and setup time for 100 tables = 30 + (10 Ã— 100) + 30 + (5 Ã— 100) = 1560 minutes. Capacity = 100/1560 Ã— 8 Ã— 60 = 30.8 tables per day.

*AACSB: Analytical Thinking*

*Accessibility: Keyboard Navigation*

*Blooms: Understand*

*Difficulty: 2 Medium*

*Learning Objective: 07-02 Evaluate the capacity of a resource that has a setup time and is operated with a given batch size.*

*Topic: Capacity of a Process with Setups*

*Â *

- C&A Furniture uses a four-step process to make its famous wood table:

Process | Processing Time (minutes) |

Millingâ€”table top | 10 |

Millingâ€”table stand | 5 |

Assembly | 15 |

Finishing | 20 |

The milling machine requires a setup time of 30 minutes to make table tops and a changeover time of 30 minutes to make table stands.C&A works an 8-hour day.What is the capacity of the milling machine (in tables per day) if the batch size is 40?

- 0.06
- 3.6
- 660

Total production and setup times for 40 tables = 30 + 10 Ã— 40 + 30 + 5 Ã— 40 = 660 minutes. Capacity = 40/660 Ã— 8 Ã— 60 = 29.09 tables per day.

*AACSB: Analytical Thinking*

*Accessibility: Keyboard Navigation*

*Blooms: Understand*

*Difficulty: 2 Medium*

*Topic: Capacity of a Process with Setups*

*Â *

- C&A Cleaner uses a five-step process to dry clean garments:

Process | Description | Time (minutes) | # of Workers |

Tagging | Attach a number tag on garments for tracking purposes. | 1 per garment | 1 |

Stain pretreatment | Identify stains on garments and apply chemicals on the site of a stain. | 5 per garment | 2 |

Dry cleaning | Place garments in a large drum machine where water-free solvents are used to remove traces of dirt and oil. | 50 per batch | n/a |

Spot cleaning | Identify and remove stains that did not come out earlier. | 10 per garment | 5 |

Finishing | Press garments and retag them before placing them in bags for pickup. | 4 per garment | 2 |

A garment piece weights 1 pound on average. What is the capacity of C&Aâ€™s entire dry cleaning process in pounds of garments per hour if the batch size is 10?

- 1
- 0.5
- 0.4

Capacity of tagging = 1; Capacity of stain pretreatment = 2/5 = 0.4; Capacity of dry cleaning = 10/50 = 0.2; Capacity of spot cleaning = 5/10 = 0.5; Capacity of finishing = 2/4 = 0.5; Capacity of the process = Min(1, 0.4, 0.2, 0.5, 0.5) = 0.2.

*AACSB: Analytical Thinking*

*Accessibility: Keyboard Navigation*

*Blooms: Analyze*

*Difficulty: 3 Hard*

*Topic: Capacity of a Process with Setups*

*Â *

- C&A Cleaner uses a five-step process to dry clean garments:

Process | Description | Time (minutes) | # of Workers |

Tagging | Attach a number tag on garments for tracking purposes. | 1 per garment | 1 |

Stain pretreatment | Identify stains on garments and apply chemicals on the site of a stain. | 5 per garment | 2 |

Dry cleaning | Place garments in a large drum machine where water-free solvents are used to remove traces of dirt and oil. | 50 per batch | n/a |

Spot cleaning | Identify and remove stains that did not come out earlier. | 10 per garment | 5 |

Finishing | Press garments and retag them before placing them in bags for pickup. | 4 per garment | 2 |

A garment piece weights 1 pound on average. What is the change in capacity (in garments per minute) of C&Aâ€™s entire dry cleaning process if the batch size increases from 15 to 30?

- Increases from 0.1 to 0.4
- Decreases from 0.4 to 0.1
- Decreases from 0.4 to 0.3

Capacity at 15 = Min(1, 0.4, 0.3, 0.5, 0.5) = 0.3. Capacity at 30 = Min(1, 0.4, 0.6, 0.5, 0.5) = 0.4. Change = (0.4 â€“ 0.3) = 0.1.

*AACSB: Analytical Thinking*

*Accessibility: Keyboard Navigation*

*Blooms: Analyze*

*Difficulty: 3 Hard*

*Topic: Capacity of a Process with Setups*

*Â *

- C&A Furniture uses a four-step process to make its famous wood table:

Process | Processing Time (minutes) |

Millingâ€”table top | 10 |

Millingâ€”table stand | 5 |

Assembly | 15 |

Finishing | 20 |

The milling machine requires a setup time of 30 minutes to make table tops and a changeover time of 30 minutes to make table stands.If the batch size is 10, what is the capacity of the process in tables per minute?

- 0.050
- 0.067
- 0.077

Capacity of milling = 10/[30 + (10 Ã—10) + 30 + (5 Ã—10)] = 0.048; Capacity of assembly = 1/15 = 0.067; Capacity of finishing = 1/20 = 0.05. Capacity of the process = Min(0.048, 0.067, 0.05) = 0.048.

*AACSB: Analytical Thinking*

*Accessibility: Keyboard Navigation*

*Blooms: Analyze*

*Difficulty: 3 Hard*

*Topic: Capacity of a Process with Setups*

*Â *

- C&A Furniture uses a four-step process to make its famous wood table:

Process | Processing Time (minutes) |

Millingâ€”table top | 10 |

Millingâ€”table stand | 5 |

Assembly | 15 |

Finishing | 20 |

The milling machine requires a setup time of 30 minutes to make table tops and a changeover time of 30 minutes to make table stands. Which of the following conclusions can be drawn?

- The capacity of finishing determines the capacity of the process.
- The capacity of milling determines the capacity of the process.
- If batch size is greater than 10, the bottleneck of the process will shift from milling to finishing.

Capacity of milling with a batch size of 12 = 0.05 = Capacity of finishing = Capacity of the process because Capacity of assembly = 0.067. Capacity of milling at batch size of 13 = 0.051, which is greater than that of finishing. Therefore, finishing becomes the bottleneck.

*AACSB: Analytical Thinking*

*Accessibility: Keyboard Navigation*

*Blooms: Analyze*

*Difficulty: 3 Hard*

*Topic: Capacity of a Process with Setups*

*Â *

- C&A Printing takes 10 seconds to print a page in color, but after 500 pages, the printer must be cooled down for 15 minutes. No pages can be printed while the printer is cooling down. What is C&Aâ€™s capacity in pages per hour?

- 2000
- 1978
- 395

Setup is 15/60 hour. Processing time is 10/3600 hour; Batch size = 500 pages per hour; Capacity = 500/[0.25 + (1/360 Ã—500)] = 305 pages per hour.

*AACSB: Analytical Thinking*

*Accessibility: Keyboard Navigation*

*Blooms: Remember*

*Difficulty: 1 Easy*

*Topic: Capacity of a Process with Setups*

*Â *

- Which of the following graphs correctly portrays the relationship between batch size (
*x*-axis) and capacity of a resource with setups (*y*-axis)?

C.

D.

As batch size increases, capacity of a resource with setups increases, but capacity increases slowly as the batch size gets large.

*AACSB: Analytical Thinking*

*Accessibility: Keyboard Navigation*

*Blooms: Understand*

*Difficulty: 2 Medium*

*Topic: Capacity of a Process with Setups*

*Â *

- C&A Printing takes 10 seconds to print a page in color, but after 500 pages, the printer must be cooled down for 15 minutes. No pages can be printed while the printer is cooling down. C&Aâ€™s demand rate is 10 pages per minute. What is the utilization of the printer?

- 50%
- 28%
- 10%

Capacity of the printer = 500/[15 + 10/(60 Ã— 500)] = 5.08 pages per minute. Flow rate = Min(10, 5.08) = 5.08. Utilization = Flow rate Ã— Processing time = 5.08 Ã— 10/60 = 85%.

*AACSB: Analytical Thinking*

*Accessibility: Keyboard Navigation*

*Blooms: Remember*

*Difficulty: 1 Easy*

*Learning Objective: 07-03 Evaluate the utilization of a resource that has a setup time.*

*Topic: Utilization in a Process with Setups*

*Â *

- C&A Printing takes 10 seconds to print a page in color, but after 500 pages, the printer must be cooled down for 15 minutes. No pages can be printed while the printer is cooling down. C&Aâ€™s demand rate is 3 pages per minute. What is the utilization of the printer?

- 85%
- 28%
- 10%

Capacity of the printer = 500/[15 + 10/(60 Ã— 500)] = 5.08 pages per minute. Flow rate = Min(3, 5.08) = 3. Utilization = Flow rate Ã— Processing time = 3 Ã— 10/60 = 50%.

*AACSB: Analytical Thinking*

*Accessibility: Keyboard Navigation*

*Blooms: Remember*

*Difficulty: 1 Easy*

*Learning Objective: 07-03 Evaluate the utilization of a resource that has a setup time.*

*Topic: Utilization in a Process with Setups*

*Â *

- C&A Printing takes 10 seconds to print a page in color, but after 500 pages, the printer must be cooled down for 15 minutes. No pages can be printed while the printer is cooling down. C&Aâ€™s demand rate is 3 pages per minute. What is the smallest batch size to ensure the process is demand-constrained?

- 500
- 64
- Cannot be determined

Capacity of the printer = 3 pages per minute. Batch size = 3 Ã— 15/[1 â€“ (1/6 Ã— 3)] = 90.

*AACSB: Analytical Thinking*

*Accessibility: Keyboard Navigation*

*Blooms: Understand*

*Difficulty: 2 Medium*

*Learning Objective: 07-03 Evaluate the utilization of a resource that has a setup time.*

*Topic: Utilization in a Process with Setups*

*Â *

- C&A Candy produces two kinds of gumdrops: regular and sugar-free. The data on these gumdrops are given below:

Regular | Sugar-Free | |

Demand (lbs per hour) | 30 | 10 |

Changeover time (min) | 60 | 30 |

Production rate (lbs per hour) | 80 | 80 |

C&A first makes 60 lbs of regular gumdrops, then 20 lbs of sugar-free gumdrops, and then repeats this sequence. What is the utilization of the production process?

- 50%
- 25%
- 20%

Batch size = 60 + 20 = 80 lbs; Processing time = 1/80 lbs per hour; Capacity = 80/[(60 + 30)/60 + (1/80 Ã— 80)] = 32; Flow rate = Min(30 + 10, 32) = 32; Utilization = 32 Ã— 1/80 = 40%.

*AACSB: Analytical Thinking*

*Accessibility: Keyboard Navigation*

*Blooms: Understand*

*Difficulty: 2 Medium*

*Learning Objective: 07-03 Evaluate the utilization of a resource that has a setup time.*

*Topic: Utilization in a Process with Setups*

*Â *

- C&A produces three kinds of ink pens:red, black, and blue.The data on these products are given below:

Red | Black | Blue | |

Demand (pens per hour) | 50 | 30 | 10 |

Changeover time (min) | 60 | 30 | 45 |

Production rate (pens per hour) | 200 | 200 | 200 |

C&Aâ€™s production sequence is making 150 red first, then switching to make 90 black before changing over to make 30 blue. What is the utilization of the production process?

- 45.5%
- 40.5%
- 20.5%

Batch size = 150 + 90 + 30 = 270 pens; Processing time = 1/200 pens per hour; Capacity = 270/[(60 + 30 + 45)/60 + (1/200 Ã— 270)] = 75; Flow rate = Min(50 + 30 + 10, 75) = 75; Utilization = 75 Ã— 1/200 = 37.5%.

*AACSB: Analytical Thinking*

*Accessibility: Keyboard Navigation*

*Blooms: Understand*

*Difficulty: 2 Medium*

*Learning Objective: 07-03 Evaluate the utilization of a resource that has a setup time.*

*Topic: Utilization in a Process with Setups*

*Â *

- A two-step process is used to finish a product: painting and drying. There are 5 workers and each one takes an average of 60 minutes to paint each unit. Drying takes place in an oven that can hold up to 100 units and it takes 5 minutes to load each unit. Once all the units are loaded into the oven, it takes 6 hours to dry each load. What fraction of time is the oven being loaded if C&A uses a batch size of 100 and demand is unlimited?

- 58%
- 20%
- 2%

Capacity of painting = 5/1 = 5; Capacity of drying = 100/[6 + (5/60 Ã— 100)] = 7; Capacity of the process = Min(5, 7) = 5. Utilization refers to the time a resource is busy processing units. In this case, for the oven, “processing” is the loading time and drying is the setup time. Hence, the fraction of time busy loading equals the utilization of the oven, which is 5 Ã— 5/60 = 42%.

*AACSB: Analytical Thinking*

*Accessibility: Keyboard Navigation*

*Blooms: Understand*

*Difficulty: 3 Hard*

*Learning Objective: 07-03 Evaluate the utilization of a resource that has a setup time.*

*Topic: Utilization in a Process with Setups*

*Â *

- C&A Pottery makes ceramic vases using a process that involves forming, drying, firing, and glazing. The 5 workers each takes on average 60 minutes to form a vase. The vases will then be loaded into an oven to dry. The oven can hold up to 100 pieces and it takes 5 minutes to load each vase. Once all the vases are loaded into the oven, it takes 24 hours to dry each load. The dried vases are then placed in a kiln that holds up to 100 pieces. It takes 6 minutes to load each vase and the vases will be fired in the kiln for 72 hours. After firing, 3 workers each take an average of 2 hours to glaze each vase. C&A receives an order of 1 vase per hour. What is the smallest batch size to ensure the process is demand-constrained?

- 98
- 32
- 26

Capacity = 1. Batch size for the oven = 24/(1 â€“ 5/60) = 26; Batch size for the kiln = 72/(1 â€“ 6/60) = 80. Therefore, the minimum batch size should be 80.

*AACSB: Analytical Thinking*

*Accessibility: Keyboard Navigation*

*Blooms: Analyze*

*Difficulty: 3 Hard*

*Learning Objective: 07-03 Evaluate the utilization of a resource that has a setup time.*

*Topic: Utilization in a Process with Setups*

*Â *

- Which of the following statements is TRUE regarding utilization in a process with setups?
- When batch size increases, the utilization of the bottleneck resource with setups will decrease.
- When batch size increases, the utilization of the bottleneck resource without setups will increase.
- When batch size increases, the utilization of the bottleneck resource without setups will decrease.

The larger the batch size, the more utilized the resource with setups will be as long as the resource is the bottleneck.

*AACSB: Analytical Thinking*

*Accessibility: Keyboard Navigation*

*Blooms: Remember*

*Difficulty: 1 Easy*

*Learning Objective: 07-03 Evaluate the utilization of a resource that has a setup time.*

*Topic: Utilization in a Process with Setups*

*Â *

- C&A produces three kinds of bread: wheat, white, and multigrain. The data on these products are given below:

Wheat | White | Multigrain | |

Demand (lbs per hour) | 40 | 20 | 10 |

Changeover time (min) | 60 | 30 | 45 |

Production rate (lbs per hour) | 200 | 200 | 200 |

C&Aâ€™s production sequence is making 200lbs of wheat first, then switches to 100 lbs of white before changing over to 50 lbs of multigrain. What is the average inventory of white bread?

- 135
- 32.5
- 30

Batch size = 200 + 100 + 50 = 350 lbs; Processing time = 1/200 lb per hour; Capacity = 350/[(60 + 30 + 45)/60 + (1/200 Ã— 350)] = 89.4; Flow rate = Min(40 + 20 + 10, 89.4) = 70. The process is demandâ€“constrained. Batch size of white = 100; Flow rate of white = 20; Processing time = 1/200. Average inventory = Â½ Ã— 100 Ã— [1 â€“ (20 Ã— 1/200)] = 45.

*AACSB: Analytical Thinking*

*Accessibility: Keyboard Navigation*

*Blooms: Remember*

*Difficulty: 1 Easy*

*Learning Objective: 07-04 Evaluate the average inventory of a product made by a resource that has a setup time.*

*Topic: Inventory in a Process with Setups*

*Â *

- C&A Candy produces two kinds of gumdrops: regular and sugar-free. The data on these gumdrops are given below:

Regular | Sugar-Free | |

Demand (lbs per hour) | 30 | 10 |

Changeover time (min) | 60 | 30 |

Production rate (lbs per hour) | 80 | 80 |

C&A first makes 90 lbs of regular gumdrops, then 30 lbs of sugar-free gumdrops, and then repeats this sequence. What is the average inventory of regular gumdrops?

- 56.25
- 45.00
- 22.50

Batch size = 90 + 30 = 120 lbs; Processing time = 1/80 lb per hour; Capacity = 120/[(60 + 30)/60 + (1/80 Ã— 120)] = 40; Flow rate of regular = Min(30, 40) = 30; Average inventory of regular = 1/2 Ã— 90 Ã— [1 â€“ (30 Ã— 1/80)] = 28.13.

*AACSB: Analytical Thinking*

*Accessibility: Keyboard Navigation*

*Blooms: Remember*

*Difficulty: 1 Easy*

*Learning Objective: 07-04 Evaluate the average inventory of a product made by a resource that has a setup time.*

*Topic: Inventory in a Process with Setups*

*Â *

- Which of the following best shows the change of inventory level (
*y*-axis) over time (*x*-axis) in a process with setups?

C.

D.

Inventory level in a process with setups follows a saw-toothed pattern over time.

*AACSB: Analytical Thinking*

*Accessibility: Keyboard Navigation*

*Blooms: Remember*

*Difficulty: 1 Easy*

*Learning Objective: 07-04 Evaluate the average inventory of a product made by a resource that has a setup time.*

*Topic: Inventory in a Process with Setups*

*Â *

- Which of the following statements is TRUE regarding inventory in a process with setups?
- Operating with a larger batch size will reduce inventory.
- Operating with as large a batch size as possible is recommended.
- Batch size has no effect on inventory level.

A larger batch size leads to more inventory.

*AACSB: Analytical Thinking*

*Accessibility: Keyboard Navigation*

*Blooms: Remember*

*Difficulty: 1 Easy*

*Topic: Inventory in a Process with Setups*

*Â *

- Company C produces two kinds of gumdrops: regular and sugar-free. The data on these gumdrops are given below:

Regular | Sugar-Free | |

Demand (lbs per hour) | 30 | 10 |

Changeover time (min) | 60 | 30 |

Production rate (lbs per hour) | 80 | 80 |

Company C first makes 90 lbs of regular gumdrops, then 30 lbs of sugar-free gumdrops, and then repeats this sequence. What is the average inventory of sugar-free gumdrops?

- 28.13
- 22.50
- 7.5

Batch size = 90 + 30 = 120 lbs; Processing time = 1/80 lb per hour; Capacity = 120/[(60 + 30)/60 + (1/80 Ã— 120)] = 40; Flow rate of regular = Min(30, 40) = 30; Average inventory of sugar-free = 1/2 Ã— 30 Ã— [1 â€“ (30 Ã— 1/80)] = 9.38.

*AACSB: Analytical Thinking*

*Accessibility: Keyboard Navigation*

*Blooms: Remember*

*Difficulty: 1 Easy*

*Topic: Inventory in a Process with Setups*

*Â *

- C&A uses a two-step process to make a part. The first step involves cutting with a machine that requires a 40-minute setup time before the production of each batch. The cutting takes 30 minutes per part. The second step is polishing the parts from cutting. The polishing takes 240 minutes per part. C&A has 5 workers to do the task. The demand rate is 3 parts per hour. What is the maximum inventory between cutting and polishing (in number of parts) if C&A operates with batches of 200 parts?

- 200
- 100
- 37.5

Batch size = 200. Capacity of cutting = 200/[40 + (30 Ã— 200)] = 0.033. Capacity of polishing = 5/240 = 0.02. Capacity of the process = Min (0.033, 0.02) = 0.02. Demand rate = 3/60 = 0.05. Flow rate = Min(0.05, 0.02) = 0.02. Maximum inventory = 200 Ã— [1 â€“ (0.02 Ã— 30)] = 80.

*AACSB: Analytical Thinking*

*Accessibility: Keyboard Navigation*

*Blooms: Understand*

*Difficulty: 2 Medium*

*Topic: Inventory in a Process with Setups*

*Â *

- A machine does three setups per production cycle. Each setup takes 20 minutes. The processing time is 0.5 minute. What batch size achieves a capacity of 24 units per hour?
- 83
- 40
- 10

Batch size = (Capacity Ã— Setup)/[1 â€“ (Capacity Ã— Processing time)]. Capacity = 24/60 = 0.4 unit per min. Setup = 20 Ã— 3 = 60 minutes. Processing time = 0.5 minute. Batch size = (0.4 Ã— 60)/[1 â€“ (0.4 Ã— 0.5)] = 30.

*AACSB: Analytical Thinking*

*Accessibility: Keyboard Navigation*

*Blooms: Remember*

*Difficulty: 1 Easy*

*Learning Objective: 07-05 Find the batch size that minimizes inventory while not constraining the flow through a process.*

*Topic: Choose the Batch Size in a Process with Setups*

*Â *

- C&A uses a two-step process to make a part. The first step involves cutting with a machine that requires a 40-minute setup time before the production of each batch. The cutting takes 30 minutes per part. The second step is polishing the parts from cutting. The polishing takes 40 minutes per part. Assume demand is unlimited. What is the ideal batch size of the parts?

- 10
- 8
- Cannot be determined

Batch size = (Capacity Ã— Setup)/[1 â€“ (Capacity Ã— Processing time)]. Capacity = 1/40 = 0.025 part per minute. Setup = 40 minutes. Processing time = 30 minutes. Batch size = (0.025 Ã— 40)/[1 â€“ (30 Ã— 0.025)] = 4.

*AACSB: Analytical Thinking*

*Accessibility: Keyboard Navigation*

*Blooms: Remember*

*Difficulty: 1 Easy*

*Learning Objective: 07-05 Find the batch size that minimizes inventory while not constraining the flow through a process.*

*Topic: Choose the Batch Size in a Process with Setups*

*Â *

- Which of the following statements is TRUE regarding the ideal batch size for a process with setups?
- The ideal batch size is one that minimizes inventory while satisfying demand in a supply-constrained process.
- The ideal batch size is one that maximizes inventory while satisfying demand in a demand-constrained process.
- The ideal batch size is one that maximizes inventory while satisfying demand in a supply-constrained process.

In a demand-constrained process, capacity is equal to the demand rate. Therefore, the ideal batch size should minimize inventory while satisfying demand.

*AACSB: Analytical Thinking*

*Accessibility: Keyboard Navigation*

*Blooms: Remember*

*Difficulty: 1 Easy*

*Topic: Choose the Batch Size in a Process with Setups*

*Â *

- C&A uses a machine to make one table top and four table legs to assemble into a table. The machine takes 5 minutes to set up for the tops and 10 minutes to switch from tops to legs. Each top takes 1 minute to make. Each leg takes 0.5 minute to make. The assembly step combines the top with four legs into one table every 4 minutes. Assume there is sufficient demand for every table made. Considering one table as a flow unit, what is the ideal batch size of table tops?

- 10
- 6
- 5

Capacity = 1/4 = 0.25. Setup = 5 + 10 = 15 minutes. Processing time = 1 + (4 Ã— 0.5) = 3 minutes. Batch size = (0.25 Ã— 15)/[1 â€“ (0.25 Ã— 3)] = 15.

*AACSB: Analytical Thinking*

*Accessibility: Keyboard Navigation*

*Blooms: Understand*

*Difficulty: 2 Medium*

*Topic: Choose the Batch Size in a Process with Setups*

*Â *

- When batch size reaches a threshold, further increases in batch size will __________ inventory and _________ capacity.
- decrease, have no impact on
- have no impact on, increase
- have no impact on, decrease

Further increase in batch size beyond the threshold will have no impact on capacity but will increase inventory.

*AACSB: Analytical Thinking*

*Accessibility: Keyboard Navigation*

*Blooms: Remember*

*Difficulty: 1 Easy*

*Topic: Choose the Batch Size in a Process with Setups*

*Â *

- In a supply-constrained process, the ideal batch size is one that __________ inventory in the system and results in a process capacity that matches the _________.
- maximizes, demand rate
- minimizes, demand rate
- maximizes, bottleneck capacity

The ideal batch size in a supply-constrained process is one that minimizes inventory and matches the bottleneck flow rate.

*AACSB: Analytical Thinking*

*Accessibility: Keyboard Navigation*

*Blooms: Remember*

*Difficulty: 1 Easy*

*Topic: Choose the Batch Size in a Process with Setups*

*Â *

- In a demand-constrained process, the ideal batch size is one that __________ inventory in the system and results in a process capacity that matches the _________.
- maximizes, demand rate
- maximizes, bottleneck capacity
- minimizes, bottleneck capacity

The ideal batch size in a demand-constrained process is one that minimizes inventory and matches the demand rate.

*AACSB: Analytical Thinking*

*Accessibility: Keyboard Navigation*

*Blooms: Remember*

*Difficulty: 1 Easy*

*Topic: Choose the Batch Size in a Process with Setups*

*Â *

- C&A Candy produces two kinds of gumdrops: regular and sugar-free.The data on these gumdrops are given below:

Regular | Sugar-Free | |

Demand (lbs per hour) | 30 | 10 |

Changeover time (min) | 60 | 30 |

Production rate (lbs per hour) | 80 | 80 |

How many lbs of gumdrops should C&A produce in each production cycle to minimize inventory while satisfying demand?

- 30
- 80
- 90

Batch size = (Capacity Ã— Setup)/[1 â€“ (Capacity Ã— Processing time)]. Capacity = 30 + 10 = 40 lbs per hour. Setup = 60 + 30 = 90 minutes = 1.5 hours. Processing time = 1/80 hour. Batch size = (40 Ã— 1.5)/[1 â€“ (40 Ã— 1/80)] = 120.

*AACSB: Analytical Thinking*

*Accessibility: Keyboard Navigation*

*Blooms: Remember*

*Difficulty: 1 Easy*

*Learning Objective: 07-06 Find the production quantities of each item produced by a resource such that the resource minimizes inventory while satisfying all demand.*

*Topic: Setup Times and Product Variety*

*Â *

- C&A Candy produces two kinds of gumdrops: regular and sugar-free.The data on these gumdrops are given below:

Regular | Sugar-Free | |

Demand (lbs per hour) | 30 | 10 |

Changeover time (min) | 60 | 30 |

Production rate (lbs per hour) | 80 | 80 |

How many lbs of regular gumdrops should C&A produce before switching to sugar-free in order to minimize inventory while satisfying demand?

- 30
- 80
- 120

Batch size = (Capacity Ã— Setup)/[1 â€“ (Capacity Ã— Processing time)]. Capacity = 30 + 10 = 40 lbs per hour. Setup = 60 + 30 = 90 minutes = 1.5 hours. Processing time = 1/80 hour. Batch size = (40 Ã— 1.5)/[1 â€“ (40 Ã— 1/80)] = 120. Batch size for regular = 120Â Ã— (30/(30 + 10)) = 90.

*AACSB: Analytical Thinking*

*Accessibility: Keyboard Navigation*

*Blooms: Remember*

*Difficulty: 1 Easy*

*Learning Objective: 07-06 Find the production quantities of each item produced by a resource such that the resource minimizes inventory while satisfying all demand.*

*Topic: Setup Times and Product Variety*

*Â *

- C&A produces three kinds of bread: wheat, white, and multigrain.The data on these products are given below:

Wheat | White | Multigrain | |

Demand (lbs per hour) | 50 | 20 | 10 |

Changeover time (min) | 60 | 30 | 45 |

Production rate (lbs per hour) | 200 | 200 | 200 |

How many lbs of bread should C&A produce in each production cycle to minimize inventory while satisfying demand?

- 37.5
- 187.5
- 300

Batch size = (Capacity Ã— Setup)/[1 â€“ (Capacity Ã— Processing time)]. Capacity = 50 + 20 + 10 = 80 lbs per hour. Setup = (60 + 30 + 45)/60 = 2.25 hours. Processing time = 1/200 hour. Batch size for regular = 300 Ã— 20/80 = 75.

*AACSB: Analytical Thinking*

*Accessibility: Keyboard Navigation*

*Blooms: Remember*

*Difficulty: 1 Easy*

*Topic: Setup Times and Product Variety*

*Â *

- C&A produces three kinds of bread: wheat, white, and multigrain. The data on these products are given below:

Wheat | White | Multigrain | |

Demand (lbs per hour) | 50 | 20 | 10 |

Changeover time (min) | 60 | 30 | 45 |

Production rate (lbs per hour) | 200 | 200 | 200 |

How many lbs of white bread should C&A produce with each batch in order to minimize inventory while satisfying demand?

- 37.5
- 187.5
- 300

Batch size = (Capacity Ã— Setup)/[1 â€“ (Capacity Ã— Processing time)]. Capacity = 50 + 20 + 10 = 80 lbs per hour. Setup = (60 + 30 + 45)/60 = 2.25 hours. Processing time = 1/200 hour. Batch size = (80 Ã— 2.25)/[1 â€“ (80 Ã— 1/200)] = 300. Batch size for white = (300 Ã— 20)/80 = 75.

*AACSB: Analytical Thinking*

*Accessibility: Keyboard Navigation*

*Blooms: Remember*

*Difficulty: 1 Easy*

*Topic: Setup Times and Product Variety*

*Â *

- C&A makes 5 different flavors of ice cream. The machine must be set up properly for making each flavor. Setup time is 45 minutes and production time is 30 minutes for each flavor of ice cream (per gallon). Demands (in gallons per hour) for the ice cream are given below:

Vanilla | Cherry | Strawberry | Chocolate | Mint |

0.3 | 0.2 | 0.1 | 0.5 | 0.1 |

How many gallons of ice cream should C&A produce in each production cycle to minimize inventory while satisfying demand?

- 281.25
- 168.75
- 112.50

Batch size = (Capacity Ã— Setup)/[1 â€“ (Capacity Ã— Processing time)]. Capacity = 0.3 + 0.2 + 0.1 + 0.5 + 0.1 = 1.2 gallons per hour. Setup = 45/60 Ã— 5 = 3.75 hours. Processing time = 30/60 = 0.5 minute. Batch size = (1.2 Ã— 3.75)/[1 â€“ (1.2 Ã— 0.5)] = 11.25.

*AACSB: Analytical Thinking*

*Accessibility: Keyboard Navigation*

*Blooms: Remember*

*Difficulty: 1 Easy*

*Topic: Setup Times and Product Variety*

*Â *

- C&A makes 5 different flavors of ice cream. The machine must be setup properly for making each flavor. Setup time is 45 minutes and production time is 30 minutes for each flavor of ice cream. Demands (in gallons per hour) for the ice cream are given below:

Vanilla | Cherry | Strawberry | Chocolate | Mint |

0.3 | 0.2 | 0.1 | 0.5 | 0.1 |

How many gallons of vanilla ice cream should C&A produce to minimize inventory while satisfying demand?

- 281.25

- 112.50
- 675.00

Batch size = (Capacity Ã— Setup)/[1 â€“ (Capacity Ã— Processing time)]. Capacity = 0.3 + 0.2 + 0.1 + 0.5 + 0.1 = 1.2 gallons per hour. Setup = 45/60 Ã— 5 = 3.75 hours. Processing time = 30/60 = 0.5 minute. Batch size = (1.2 Ã— 3.75)/[1 â€“ (1.2 Ã— 0.5)] = 11.25. Batch size of vanilla is 11.25 Ã— 0.3/1.2 = 2.8.

*AACSB: Analytical Thinking*

*Accessibility: Keyboard Navigation*

*Blooms: Remember*

*Difficulty: 1 Easy*

*Topic: Setup Times and Product Variety*

*Â *

- C&A Pottery makes several lines of ceramic vases using a process that involves forming, drying, firing, and glazing. The 5 workers each take on average 60 minutes to form a vase. The vases will then be loaded into an oven to dry. The oven can hold up to 200 pieces and it takes 5 minutes to load each vase. Once all the vases are loaded into the oven, it takes 25 hours to dry each load. The dried vases are then placed in a kiln that holds up to 200 pieces. It takes 6 minutes to load each vase and the vases will be fired in the kiln for 72 hours. After firing, 4 workers each takes an average of 2 hours to glaze each vase. C&A sells each vase that is made. What is the ideal batch size to minimize inventory while allowing the process to produce at maximum flow rate?

- 306
- 240
- 60

Capacity of the process = Min(5/1, 4/2) = 2. Batch size for the oven = 2 Ã— 25/[1 â€“ (2 Ã— 5/60)] = 60; Batch size for the kiln = 2 Ã— 72/[1 â€“ (2 Ã— 6/60)] = 180. The ideal batch size is 180 because that is the smallest batch size that allows both the oven and the kiln to operate at a rate that doesnâ€™t constrain the flow.

*AACSB: Analytical Thinking*

*Accessibility: Keyboard Navigation*

*Blooms: Analyze*

*Difficulty: 3 Hard*

*Learning Objective: 07-03 Evaluate the utilization of a resource that has a setup time.*

*Topic: Utilization in a Process with Setups*

*Â *

- The reason why resources with setups are used is because the advantage of a _________ can outweigh the disadvantage of the setup.
- small inventory
- high utilization
- high capacity

The advantage of a fast processing time can outweigh the disadvantage of the setup to make resources with setups worthwhile to use.

*AACSB: Analytical Thinking*

*Accessibility: Keyboard Navigation*

*Blooms: Remember*

*Difficulty: 1 Easy*

*Learning Objective: 07-07 Explain the different approaches for managing a process with setup times.*

*Topic: Managing Processes with Setup Times*

*Â *

- Which of the following is NOT a solution to the problem of setup times?

- Reduce product variety.
- Change an internal setup into an external setup.
- Reengineer the setup process to reduce the duration of setup time.

An increase in the processing time reduces a setup resourcesâ€™ capacity.

*AACSB: Analytical Thinking*

*Accessibility: Keyboard Navigation*

*Blooms: Remember*

*Difficulty: 1 Easy*

*Learning Objective: 07-07 Explain the different approaches for managing a process with setup times.*

*Topic: Managing Processes with Setup Times*

*Â *

- Which of the following is an external setup for a printer with a single paper tray and ink cartridge?
- Changing the paper tray for a different kind of paper stock needed
- Changing the ink cartridge of a printer
- Canceling all printing tasks to remove a paper jam

Getting a paper tray ready for the next printing task will reduce setup times for the next printing task while the printer is running.

*AACSB: Analytical Thinking*

*Accessibility: Keyboard Navigation*

*Blooms: Remember*

*Difficulty: 1 Easy*

*Learning Objective: 07-07 Explain the different approaches for managing a process with setup times.*

*Topic: Managing Processes with Setup Times*

*Â *

- Which of the following is an internal setup?
- Sending printing jobs to the appropriate printer
- Cooling the printer with a fan while it is operating
- Canceling all printing tasks to remove a paper jam

Loading the paper tray with the paper stock needed for the printing task cannot be done while the printer is running.

*AACSB: Analytical Thinking*

*Accessibility: Keyboard Navigation*

*Blooms: Remember*

*Difficulty: 1 Easy*

*Learning Objective: 07-07 Explain the different approaches for managing a process with setup times.*

*Topic: Managing Processes with Setup Times*

*Â *

- Which of the following is NOT a way to reduce setup times?
- Change internal to external setups.
- Reduce internal setups.
- Adopt mixed-model assembly.

Increasing the batch size has no impact on setup times.

*AACSB: Analytical Thinking*

*Accessibility: Keyboard Navigation*

*Blooms: Remember*

*Difficulty: 1 Easy*

*Learning Objective: 07-07 Explain the different approaches for managing a process with setup times.*

*Topic: Managing Processes with Setup Times*

*Â *

- Which of the following statements about heijunka is FALSE?
- It is a strategy to assemble different products in very small batches one after the other.
- It is a strategy to schedule production to resemble as much as possible the true rate of demand.
- It is a strategy that works if setup times were reduced to an inconsequential level.

Producing products without variety is not what heijunka is about.

*AACSB: Analytical Thinking*

*Accessibility: Keyboard Navigation*

*Blooms: Remember*

*Difficulty: 1 Easy*

*Learning Objective: 07-07 Explain the different approaches for managing a process with setup times.*

*Topic: Managing Processes with Setup Times*

*Â *

- Which of the following curves is a correct portrayal of the relationship between variety and efficiency?

A.

B.

D.

When product variety increases, setup times increase, which leads to less efficiency.

*AACSB: Analytical Thinking*

*Accessibility: Keyboard Navigation*

*Blooms: Remember*

*Difficulty: 1 Easy*

*Learning Objective: 07-07 Explain the different approaches for managing a process with setup times.*

*Topic: Managing Processes with Setup Times*

*Â *

- Considering the trade-off between variety and efficiency, which of the following is the correct portrayal of a solution to reduce variety in order to gain a higher efficiency?

B.

When product variety is reduced, efficiency increases, following the downward shift along the trade-off curve.

*AACSB: Analytical Thinking*

*Accessibility: Keyboard Navigation*

*Blooms: Remember*

*Difficulty: 1 Easy*

*Learning Objective: 07-07 Explain the different approaches for managing a process with setup times.*

*Topic: Managing Processes with Setup Times*

*Â *

- Considering the trade-off between variety and efficiency, which of the following is the correct portrayal of a solution to increase both variety and efficiency?

B.

C.

When both variety and efficiency are increased, the trade-off curve shifts outwards to the right.

*AACSB: Analytical Thinking*

*Accessibility: Keyboard Navigation*

*Blooms: Remember*

*Difficulty: 1 Easy*

*Learning Objective: 07-07 Explain the different approaches for managing a process with setup times.*

*Topic: Managing Processes with Setup Times*

*Â *

- If a resource with setups produces in _________ batches and does _________ setups, then its capacity will be ________.
- small, infrequent, unconstrained.
- large, frequent, unconstrained.
- large, infrequent, low.

If a resource with setups produces in small batches and does frequent setups, then its capacity will be low.

*AACSB: Analytical Thinking*

*Accessibility: Keyboard Navigation*

*Blooms: Understand*

*Difficulty: 2 Medium*

*Learning Objective: 07-07 Explain the different approaches for managing a process with setup times.*

*Topic: Managing Processes with Setup Times*

*Â *

- Which of the following statements about managing processes with setups is FALSE?
- A feasible solution to the setup problem is to eliminate product variety.
- Setups can be considered as wastes in a process.
- Setup times create inflexibility in a process.

Setup times are not a problem for a resource that needs only one setup.

*AACSB: Analytical Thinking*

*Accessibility: Keyboard Navigation*

*Blooms: Understand*

*Difficulty: 2 Medium*

*Learning Objective: 07-07 Explain the different approaches for managing a process with setup times.*

*Topic: Managing Processes with Setup Times*

Chapter 07 Test Bank Summary

Category |
# of Questions |

AACSB: Analytical Thinking | 60 |

Accessibility: Keyboard Navigation | 60 |

Blooms: Analyze | 6 |

Blooms: Remember | 40 |

Blooms: Understand | 14 |

Difficulty: 1 Easy | 40 |

Difficulty: 2 Medium | 13 |

Difficulty: 3 Hard | 7 |

Learning Objective: 07-01 Identify the setup time in a process. | 7 |

10 | |

Learning Objective: 07-03 Evaluate the utilization of a resource that has a setup time. | 10 |

6 | |

8 | |

7 | |

Learning Objective: 07-07 Explain the different approaches for managing a process with setup times. | 12 |

Topic: Capacity of a Process with Setups | 10 |

Topic: Choose the Batch Size in a Process with Setups | 8 |

Topic: Inventory in a Process with Setups | 6 |

Topic: Managing Processes with Setup Times | 12 |

Topic: Setup Time | 7 |

Topic: Setup Times and Product Variety | 7 |

Topic: Utilization in a Process with Setups | 10 |