ADVANCED TECHNOLOGIES

MANUFACTURING PLANNING

1. Which organization is likely to have a production system?
a. automobile producer
b. fast food restaurant
c. insurance company
d. None of the above
e. All of the above

2. Inputs into a production system can be grouped into how many broad categories?
a. 2
b. 3
c. 4
d. 5
e. 7

3. An organization’s inputs into a production system have doubled. The output has increased by 50%. What is the productivity compared to the previous period?
a. double
b. 50%
c. 75%
d. 150%
e. None of the above

4. Who was the first person to successfully argue that management was a teachable theory?
a. Henri Fayol
b. Daniel McCallum
c. John Baird
d. Robert Goddard
e. None of the above

5. In Woodard’s classification of production systems, when moving down the scale from Systems I to IX, it becomes increasingly more possible to                         .
a. increase the price of the product
b. vary the product to customer requests
c. exercise control over manufacturing operations
d. lose knowledge of the physical limitations of production

6. Increasing repetition in a production system may lead to                      .
a. lower morale
b. economies of scale
c. reduced quality
d. All of the above
e. None of the above

7. In                   , a mechanized line for final assembly of the automobile chassis was used for the first time.
a. 1892
b. 1914
c. 1932
d. 1941

8. Galbraith suggested that organizations have a production system dictated by                   .
a. employee expertise
b. market demand
c. union/non-union workers
d. sophistication of technology

9. Equipment and machines built specifically for an activity usually                               .
a. operate faster than more flexible machines
b. require an operator with more skills
c. allow for economies of scope
d. All of the above
e. None of the above

10. Process planning is long-term planning.
a. always
b. sometimes
c. never
d. All of the above
e. None of the above

11. Long-term production planning activities include                                     .
a. planning new plant locations
b. ordering raw materials
c. developing a strategy to meet demand over the next year
d. None of the above
e. All of the above

12. For controls to be successfully implemented, they should be                            .
a. simple and meaningful
b. operational and economical
c. meaningful and timely
d. All of the above
e. None of the above

13. Which development, “probably more than any other single development,” has made mass production possible for interchangeable industrial components?
a. Henry Ford’s assembly line
b. establishing a planning and control department
c. gauge blocks
e. None of the above

14. A contingency plan is                               .
a. a plan for an alternative course of action
b. another term for short-term plans
c. a plan that cannot be evaluated
d. None of the above

15. Gantt charts do not allow for one to                            .
a. compare actual progress with planned progress
b. make changes to the plan
c. identify the relationship between activities
d. see clearly when an activity is planned to begin

16. In a PERT network chart,                               .
a. the route with the fewest activities cannot be the critical path
b. circles represent activities
c. All of the above
d. None of the above

17. A product structure tree depicts how                   .
a. a product’s component parts come together
b. the organization is divided up
c. component parts are to be made
d. All of the above
e. None of the above

18. A bill of material is                         .
a. a method of collecting payment for materials sold
b. a bill for material used by the customer
c. a part’s identification system for a product
d. the value of the present inventory

19. In developing a bill of materials, you                                  .
a. should follow IOC standards
b. should follow ISO standards
c. can follow either IOC or ISO standards but not both
d. have no industry or government standards to follow

20. A product can be produced using either of two machines. The first machine costs $25.00 to set up to begin production; the second costs $5.00. The first machine can produce the product at a cost of S1.00 each, and the second machine can produce the product at a cost of S4.00 each. If 15 products are to be made and you wish to minimize cost, then                .
a. the first machine should be used
b. the second machine should be used
c. either machine can be used
d. the product should not be produced

21. Kaizen is a Japanese term meaning                                  .
a. business is war
b. the strong will survive
c. continuous improvement
d. None of the above

22. Grouping by can be considered group technology.
a. processes
b. activities
c. machines
d. All of the above
e. None of the above

23. A decision tree shows                            .
a. how a decision grows from its inception
b. where the roots of a problem are
c. alternatives and/or possible outcomes through branches
d. None of the above

24. Quality circles were first developed in                               .
a. Japan
b. Great Britain
c. the United State
d. Germany

25. The moving average forecasting technique generally                               .
a. is too simple for practical use
b. reacts quickly to changing trend
c. smoothes the effect of random demand
d. None of the above

26. When the exponential smoothing demand forecasting technique is used, an α factor of 0.6 would be considered                                  .
a. quite small
b. quite large
c. erratic if there are no fluctuations in demand
d. None of the above

27. When forecasting demand, qualitative forecasts                                  .
a. do not allow for public opinion
b. are inexpensive
c. overreact to current events
d. All of the above
e. None of the above

28. When forecasting demand, statistical forecasts can consider                                  .
a. future unexpected events
b. new products
c. seasonal variation for existing products
d. All of the above
e. None of the above

29. A external factor affecting demand for a product is                                  .
a. advertising of your product
b. style changes in your product
c. competition with other companies
d. All of the above

30. Capacity planning is done at the level of _______                         __.
a. long-term planning
b. short-term planning
c. All of the above
d. None of the above

31. Capacity planning is done to establish _________.
a. when demand will occur
b. if enough equipment will be available
c. what we want to produce
d. All of the above

32. A bottle neck is the _________.
a. point of assembly
b. area most likely to fail to keep up with production requirements
c. area where crowding occurs due to the number of machines
d. place where breakage most often occurs

33. A machine was initially available for 40 hours for the following week. One job is scheduled that will use 18 hours, including setup. Another job scheduled will take 16 hours. If these are the only two jobs scheduled, the planned utilization rate is __                __ %.
a. 100
b. 80
c. 73
d. 65
e. None of the above

34. An operator performs at a workstation at a 90% efficiency rate. The workstation has a utilization rate of 95%. The rated capacity is _____          ___ %.
a. 90
b. 95
c. 100
d. 76
e. None of the above

35. The master production schedule _________.
a. focuses on the products to be made
b. allows the identification of resources needed
c. allows the identification of the timing of the need
d. All of the above
e. None of the above

36. The economic order quantity technique _________.
a. maximizes carrying and ordering costs
b. minimizes ordering costs and maximizes carrying costs
c. minimizes ordering and carrying costs
d. minimizes carrying costs and maximizes ordering costs

37. Inventory is kept because of _________.
a. demand and supply fluctuations
b. lot size ordering
c. transportation
d. All of the above
e. None of the above

38. When determining costs in inventory decisions, costs should be _________.
a. actual out-of-pocket costs that will result from the order quantities chosen
b. those that are actually affected by changes in the size of the ordering quantity
c. Both of the above
d None of the above

39. Calculating non-instantaneous receipt compared with instantaneous receipt would, under normal circumstances, _________.
a. reduce the EOQ
b. increase the EOQ
c. not change the EOQ
d. have no impact on the EOQ

40. For purposes of EOQ, the cost of setup of machinery _________.
a. can be considered the same as the cost of storage
b. can be considered the same as the ordering costs
c. is independent of EOQ
d. is a constant of 2

41. The order point is equal to _________.
a. reserve stock plus the standard deviation
b. reserve stock plus the lead time stock
c. EOQ plus reserve stock
d. EOQ plus standard deviation

42. The visual review reorder method is most similar to _________.
a. order point
b. fixed cycle
c. MRP
d. EQO

43. MRP is designed to generate the answer to ______________.
a. “how many do we need?”
b. “what do we need?”
c. “when do we need it?”
d. All of the above.
e. None of the above.

44. MRP evolved as organizations began to develop systems to _________.
a. forward schedule
b. backward schedule
c. implement network techniques
d. All of the above
e. None of the above.

45. MRP is a reordering technique useful when you have ____________.
a. Independent demand
b. Dependent demand
c. Unit production
d. All of the above
e. None of the above.

46. To successfully implement MRP you must have an accurate ________.
a. Estimate of lead times
b. Current inventory record
c. Product structure tree
d. Both a and b.
e. All of the above.

47. Time blocks in MRP are often called _______________.
a. Grade
b. Spans
c. Buckets
d. None of the above.

48. Which priority rule can cause the priority order to change as time progress?
a. Earliest begin date
b. Earliest due date
c. Critical ratio
d. All of the above
e. None of the above

49. It is February 1st. Two jobs are to be scheduled; they are job X and job Y. Job X is due February 5th and will take two days. Job Y is due February 6th and will take three days. Job Y is scheduled to be done first. Which priority rule was used?
a. Critical ratio
b. Shortest slack time
c. Earliest due date
d. None of the above.

50. Company receives an order for the printing of brochures. They are produced in a two-step process. Step one will take two days. Step two will take one day. The customer wants them in five days. The scheduler projects a completion date of nine days.
The scheduler has most likely used __________.
a. Backward scheduling and infinite loading
b. Backward scheduling and finite loading
c. Forward scheduling and infinite loading
d. Forward scheduling and finite loading

51. Company X receives an order for a large fixture. They accept the order even though they will be busy for the next three weeks. Four machines will have to be used to machine the fixture. The first will take two days, the second will take 1 day, the third will take three days, and the fourth will take two day. The buyer requests delivery 20 days order. The scheduler plans to begin production 12 days from receiving the order. The scheduler has most likely used ______________.
a. Backward scheduling and infinite loading
b. Backward scheduling and finite loading
c. Forward scheduling and infinite loading
d. Forward scheduling and finite loading

52. The just-in-time concept is the e most efficient condition exist_______.
a. Whenever you product at EOQ
b. When you produce in batches of 10
c. When you have smoothed the load
d. When you produce more than EOQ and it arrives in time for production

53. A two cared Kanban system prevents____________.
a. Excessive forward movement of material
b. Too much production from occurring at one time
c. Production from being performed before it is needed
d. All of the above
e. None of the above

54. In a two card Kanban system, the two cards are often referred to as _____________.
a. Conveyance and rejection cards
b. Buy and produce cards
c. Pass and fail cards
d. Stop and go cards
e. Conveyance and production cards
55. Which is not one of the seven categories of waste in the Toyota production system?
a. Waste from employee theft
b. Waste from processing
c. Waste from overproduction
d. Waste from defective goods

56. In the Toyota production system, the worst offense against cost reduction is considered to be _____________.
a. Not working hard enough
b. Not working smart enough
c. Ignoring regular maintenance requirements
d. Allowing defects to go to the next process

57. Kanban is _______________.
a. A method of controlling excessive forward movement of material
b. The size of inventory after the EOQ arrives
c. The economic lot size in non-instantaneous situations
d. The term used by unions to describe the speeding up of the production line.

58. The buyer is concerned with _______________.
a. Delivery date
b. Quality
c. Price
d. All of the above
e. None of the above

59. The ______________must stipulate the particular type of material.
a. Purchasing manager
b. Buyer
c. Originator of the request
d. Vendor

60. ISO 9000 standards are of great importance to purchasing, because it _______.
a. Verified the vendor’s quality system
b. Assures the cheapest price
c. Guarantees delivery dates
d. All of the above
e. None of the above

61. Identifying which vendors would meet the quality standard has been a problem because ___________.
a. A lack of assembly skills in the ;user plants
b. Quality standards are often poorly defined
c. Vendors do not make promise
d. All of the above
e. None of the above

62. Organizations should develop their purchasing system __________.
a. According to industry standards
b. Using the Toyota model
c. To suit their own needs
d. All of the above
e. None of the above.

ANSWER THE FOLLOWING QUESTIONS IN ESSAY FORM:

63. Symbols are often used on Gantt charts so actual progress can be monitored and compared with planned progress. Draw four commonly used symbols and explain their meaning.

64. Name the two network models that were the foundation of the various network models used today.

65. Discuss the purpose of a bill of materials

66. According to Douglas McGregor, what caused the average worker to behave a certain way in the work environment?

67. What are the advantages in developing a flowchart for resources?

68. Who was probably the original designer of the flow process chart?

69. Name five commonly used symbols for designating activities in a flow process chart.

70. Discuss the reasons demand management is conducted by organizations

71. Name three external factors affecting demand.

72. Name three internal factors affecting demand.

73. What is the difference between qualitative and quantitative demand forecasting?

74. Name three techniques for qualitative forecasting.

ANSWER THE FOLLOWING QUESTIONS BY SHOWING ALL YOUR WORK OR STEPS. ALSO REMEMBER TO SHOW AND EXPLAIN HOW YOU ARRIVE AT YOUR ANSWERS.

75. A supervisor needs to produce metal nameplates for bicycles. Two machines are available. The first requires a single die that costs $600. The plates will take 3 minutes each to produce at a total cost of $60 an hour. The second machine requires no initial expense but takes 6 minutes to produce at a total cost of $60 an hour. Calculate the break- even point.

76. The chart below shows last year’s sales data on widgets adjusted for the number of sale days in the month. Believing there is no seasonal variation, the company has used the previous month’s sales as forecasting data. On the first day of each month, the demand manager compiles last month’s sales figures and forecast sales for the new month.

a. What would the October sales forecast have been using a four-month moving average?

b. What would the November sales forecast have been using a four-month moving average?

c. What would the October sales forecast have been using a four-month weighting scale of 0.40, 0.30, 0.20, and 0.10?

d. Using exponential smoothing with a (+0.40), what would the sales forecast have been for October if the September forecast had b en 380.

e. What would the November forecast have been using exponential smoothing?

MONTH SALES MONTH SALES
January 360 July 378
February 360 August 375
March 355 September 385
April 365 October 390
May 375 November 380
June 370 December 370

77. A manufacturer of entertainment centers use the completion of new homes as part of their demand forecast. They consider that for every nine new homes that cost over 300,000 in the city, they make one sale. For every 15 new homes that cost over $150,000 but less than $300,000 in the city, they make one sale. Their projected demand for the future period, before they consider home sales, is for fourteen entertainment centers. They now receive home figures of seventy-two new homes of over $300,000 and 105 new homes of $150,000-$300,000. What should their new forecast be?

78. A printing company receives an order for 15,000 printed pamphlets. Either of two methods can be used to make the pamphlets. Method A requires 2 hours of preparation time. Method B requires 30 minutes of preparation time. Method A will produce copies at a cost of $5 per hundred for the 1,000, $4 per hundred for the next 1,000, and $3.50 per hundred for additional copies. Method B will produce copies at a cost of $7 per hundred for the first 1,000, $5 per hundred for the first 1,000, $5 per hundred for the second 1,000, and $4 per hundred for additional copies. Preparation time is charged at a rate of $40 an hour. Draw a graph of the costs. Read from the graph:

a. Number of copies at which the costs of the two methods are equal.

b. Cost to produce 5,000 copies using Method A.

c. Cost to produce 5,000 copies using Method B.

d. Method of choice if 1,000 pamphlets are ordered.

79. Product A is assembled from the three subassemblies B, C, D, and component E. Subassembly B is assembled from the three assemblies F, G, and H. Subassembly C is assembled from components J and K and subassembly L. Subassembly D is assembled from component M and subassembly N.

• Subassembly F is assembled from P-Q-R
• Subassembly G is assembled from S-T
• Subassembly H is assembled from W-X
• Subassembly L is assembled from Y-Z
• Subassembly N is assembled from W-aa
• Subassembly T is assembled from Y-W-bb

Now consider the following:
• It takes four days to produce or assemble B, D, F, L, and W.
• It takes four days to produce or assemble A, E, G, H, K, and N.
• It takes four days to produce or assemble C, J, M, Q, S, and T.
• It takes four days to produce or assemble P, R, X, Y, Z, aa, and bb.
a. Design a product structure tree to show how parts come together for completion of the product.

b. Calculate the earliest time to complete the work if all parts are to be produced.

c. Calculate the time needed for complete if the production of J, E, and T has been under-estimated by four days, three days, and one day, respectively.

d. Assume all parts except A, E, F, Z, Y, and N are held in inventory. How long will it take to produce the product? Explain your answer.

e. Assume all parts except A, B, H, L, Q, and N are held in inventory. How long will it take to produce the product? Explain your answer.

f. Assume no inventory of subassemblies or components is held. Construct a Gantt chart showing the last possible starting and finishing time for all work to ensure that completion of the final product is not delayed.

80. The ABC Company is looking ahead to next week’s production. The plant will operate for 45 hours. Three jobs are scheduled for the operation at a workstation. The first will utilize the workstation 30% of the time; the second will utilize the workstation 25% of the time. The third job has not had the utilization time calculated, but it will take two hours to set up the workstation and six hours to complete the operation. A fourth job is received, and it will take three hours to set up and seven hours to complete.
a. Calculate whether the fourth job can be completed during the week. Explain your answer.

b. What is the total utilization rate, including the fourth job? Explain your answer.
81. A company needs to produce widgets. Two machines are able to make the widgets. Machine A costs $10.00 to set up to begin production. Machine B cost $50.00 to set up. Machine A can make widgets at a cost of $2.00 each; Machine B can make widgets at a cost of $1.50 each. Machine A is stopped every time it has made 15 widgets for maintenance. This costs $5.

a. Prepare a table or chart in Microsoft Word to compare costs.

b. Using the table or chart, identify the break-even point.

c. Determine the least costly method and the cost to produce 40 widgets.

d. Determine the least costly method and the cost to produce 10 widgets.

82. The XYZ Company is planning to make widgets. It costs $112.00 to set up machine A and then the widgets can be produced at a cost of $0.25 apiece. It costs $30.00 to set up machine B and then the widgets can be produced at a cost of $0.35 apiece. When should machine A be used? Explain?

83. Mary, Davies, or Davies’ Ceramics, believes the company’s sales are dependent on construction of new home in the area. This is because all her customers discuss the new homes they are building when they purchase material. If Mary could identify the relationship between home construction and company sales, then she may be able to anticipate demand and better serve her customers. New home construction for the past 12 months is listed below, alone with sale for each month. Explain any relationship between the two.

HOME CONSTRUCTION SALES HOME CONSTRUCTION SALES

(1) 215 90 (7) 265 104
(2) 225 86 (8) 255 108
(3) 240 86 (9) 245 106
(4) 250 90 (10) 230 102
(5) 260 96 (11) 225 98
(6) 270 100 (12) 215 92
84. In Question 81, Machine A works flawlessly, almost never producing scrap (possibly because of regular maintenance). However, Machine B produces scrap regularly. The operation of Machine B projects that in a batch of between 40-60 widgets, there is a 30% change no widgets will be scrapped, a 50% change of producing one scrap part (therefore requiring one extra to be made), and a 20% chance of producing two scrap parts (requiring two extra to be made). The cost of a scrap widget, because of the accumulated time and material, is $14.00. What machine should the company use to produce 40, 50, and 60 widgets?

85. Below are the numbers of a certain product used by Swansea Bay Manufacturing during the last 10 weeks: 58, 55, 51, 56, 48, 57, 47, 56, 51, and 61. Use the numbers to answer the following:

a. Calculate the arithmetic mean
b. Calculate the median
c. Calculate the mode
d. Calculate the range
e. Calculate the mean absolute deviation
f. Calculate the standard deviation

86. Product A is assembled from 4 components. These components are B, C, D, and E. Component B is assembled from 3 parts (F, G, and H) Component E is assembled from parts X, Y and Z. All assembles (A, C, and E) take two (2) periods to assemble component B and parts F, G, and Z take six (6) periods each to produce. All other components take four (4) periods to produce.
a. Design a product structure tree that depicts the relationships as listed above.
b. Design a Gantt chart depicting the earliest beginning and ending for the production of all the work.
c. Design a bill of materials that shows the relationship of where the parts fit.

87. A group of five workstations produces a product. Answer the following questions using the input, output, and capability per hour data in the chart below.

a. Calculate the number of units waiting at Workstations 2, 3, 4, and 5 after eight hours. Explain your answers.

b. Which machine is the bottle-neck? Explain your answer.

1 2 3 4 5
INPUT 60 60 40 40 38
CAPABILITY 60 40 60 38 60
OUTPUT 60 40 40 38 38

88. Below are the numbers of a certain product used by Swansea Bay Manufacturing during the last 20 weeks.

57 47 50 49 47
54 56 58 53 54
50 46 52 51 49
55 55 45 58 54

Use the numbers to answer the following:

a. Calculate the arithmetic mean or average

b. Calculate the median

c. Calculate the mode

d. Calculate the mean absolute deviation (MAD)

e. Calculate the variance

f. Calculate the standard deviation (x)

ADVANCED TECHNOLOGIES MANUFACTURING PLANNING 1. Which organi...