Finance

Q: conveying the mission of the store by careful selection in the positioning of the lead-off department 27) Consider the five ideas for determining the overall arrangement of most retail stores. How are these ideas implemented (a) in a supermarket, and (b) in a fine department store? (Please consider the entire store--not just the areas where merchandise is displayed.) Answer: (Suggested response) The five ideas are: 1. locating the high-draw items around the periphery of the store; 2. using prominent locations for high-impulse and high-margin items; 3. distributing what are known in the trade as "power items" to both sides of an aisle, and dispersing them to increase the viewing of other items; 4. using end aisle locations because they have a very high exposure rate; 5. conveying the image of the store by careful selection in the positioning of the lead-off department. Supermarkets make more use of aisles, where ideas 3 and 4 are featured. Department stores are meandering, so there's less use of end-caps. Both types of retail seem to follow ideas 1 and 5. Idea 2 seems to be implemented with impulse items near the checkouts for both retail types. The supermarket's straight lines convey its strategy of low cost; the department store's display areas convey its focus on image, browsing, etc. 28) Briefly explain what "slotting" is. Why is slotting considered a "controversial" practice? What ethical issues might arise with regard to slotting? Answer: Slotting is the practice of manufacturers paying for retail shelf space. It is controversial because some managers approve of the practice, but others do not. Ethical issues involved with slotting are (1) such payments might be considered bribery, (2) such payments cost consumers more, and (3) such payments may interfere with efficient and profitable use of retail space. 29) What is a servicescape? How is it related to the retail layout problem? What are the three elements of servicescape for dealing with these human issues? Answer: Servicescape describes the physical surroundings in which a service takes place. Rather than design a retail space strictly for profitability, managers must consider how the surroundingsthe layouthave a humanistic effect on customers and employees. The three elements are ambient conditions, spatial layout/functionality, and signs, symbols, and artifacts. 30) What is cross-docking? Why is it appropriate for some forms of warehouse layout? Answer: Cross-docking avoids placing materials or supplies in storage by processing them as they are received for shipment. It avoids storing the product, saves space and receiving time, and speeds up shipment to the ultimate destination. 31) What are the two basic types of product layouts? Explain how they are alike, and how they are different. Answer: The two types are fabrication lines and assembly lines. Fabrication lines build components on a series of machines, while assembly lines put the fabricated parts together at a series of workstations. Fabrication lines tend to be machine paced and require mechanical changes to facilitate balance, while assembly lines tend to be paced by work tasks assigned to individuals or to workstations and are therefore balanced by moving tasks from one individual to another. 32) Explain what the purpose of assembly line balancing is. Describe briefly how it is done. Explain how assembly line balancing supports the needs of product layout. Answer: Assembly line balancing attempts to put equal amounts of work into each of the workstations that assemble a product. The technique begins with a task list and precedence chart; to this is added demand data, from which cycle time can be computed. This is the speed at which the line must move. Then the theoretical number of stations is calculated. Each required task is then assigned into one workstation. This approach holds down the amount of idle time in a product layout, and leads to higher utilization of the plant, and to higher volume of output. 33) Define the following terms that occur in assembly line balancing: cycle time, minimum number of workstations, and efficiency. Answer: Cycle time is the ratio of allowed work time to units scheduled. The theoretical minimum number of workstations in an assembly line is determined by dividing the total task-duration time for the product by the cycle time. The efficiency of a line balance is determined by dividing the total task time assigned by the product of the number of workstations times the cycle time. 34) What is the role of heuristics in solving layout problems? Provide a brief example, drawing from manufacturing situations, retailing situations, or other service situations. Answer: Heuristics are used in problems too complex to model explicitly, such as assembly line balancing problems, fixed-position layouts, office layouts, and retail layouts. All of these layout types are quite complex, featuring very large numbers of alternative solutions and no single numeric objective for evaluating them. 35) Assembly line balancing has just been used to solve a product layout problem. Two solutions look especially attractive to the plant managers. Both solutions make the same output per day, and both have the same number of workstations. The managers were going to break the tie by looking at line efficiency, but discovered that both lines had the same efficiency as well. Should they have been surprised at this? Explain. Answer: No, they should not be surprised. Efficiency is the ratio of actual work needed per unit to time available. Work needed is clearly the same in both cases as the product is the same. Work available is also the same, since both lines have the same number of stations and the same cycle time. Once cycle time and number of stations are known, so is efficiency, no matter what tasks are assigned to what stations within that framework. 36) What are the advantages and disadvantages of product layouts? Answer: The advantages of a product layout are: The low variable cost per unit usually associated with high-volume, standardized products Low material handling costs Reduced work-in-process inventories Easier training and supervision Rapid throughput The disadvantages are: The high volume required because of the large investment needed to establish the process That work stoppage at any point halts the whole operation A lack of flexibility when handling a variety of products or production rates Essay 1) Develop a solution for the following line balancing problem, allowing a cycle time of 5 minutes. a. Draw the precedence diagram for the set of tasks. b. Calculate the theoretical minimum number of workstations. c. Balance this line using the longest task time heuristic. d. What tasks are assigned to which stations? e. Does the solution have the minimum number of stations? Explain. f. How much idle time is there, summed over all workstations? g. What is the efficiency of this line? Work Task Task Time (seconds) Task Predecessor(s) A 70 - B 60 A C 120 B D 60 - E 240 C, D F 100 A G 190 E, F Answer: The theoretical minimum number of workstations is 3. Balance places ABDF in station 1, C in station 2, E in station 3, and G in station 4. The solution uses four stations, not three. The POM for Windows solution is shown below. Idle time is distributed 10, 180, 60, and 110 per station. There are 360 seconds of idle time in the system. Efficiency is 70.0%.

Q: Operations Management, 10e (Heizer/Render) True/False 1) McDonald's "Made for You" kitchen system represents a strategic layout decision even though an obvious benefit of the system is a dramatic reduction in the inventory of food prepared in advance. Answer: TRUE 2) The objective of layout strategy is to develop an effective and efficient layout that will meet the firm's competitive requirements. Answer: TRUE 3) The work cell layout, a special arrangement of machinery and equipment to focus on the production of a single product or group of related products, is for manufacturing applications and has no relevance to services. Answer: FALSE 4) The layout approach that addresses trade-offs between space and material handling is called the fixed position layout. Answer: FALSE 5) Utilization of the total "cube" is the dominant consideration in office layout. Answer: FALSE 6) One guideline for a retail layout is to locate high-draw items around the periphery of the store. Answer: TRUE 7) Category management is the use of computer software to evaluate the profitability of merchandising plans. Answer: TRUE 8) Servicescape refers to the physical surrounding in which the service is delivered. Answer: TRUE 9) One guideline for determining the arrangement and space allocation of a retail store is to place high-impulse and high-margin items such as housewares and beauty aids in prominent locations. Answer: TRUE 10) Cross-docking processes items as they are received, rather than placing them in storage; this helps explain why "warehouses" are now called "distribution centers." Answer: TRUE 11) The dominant problem associated with the fixed-position layout is that workers are fixed in position, and cannot be reassigned. Answer: FALSE 12) A process-oriented layout is the traditional way to support a product differentiation strategy. Answer: TRUE 13) Job lots are groups or batches of parts processed together. Answer: TRUE 14) Process-oriented layouts typically have low levels of work-in-process inventory. Answer: FALSE 15) CRAFT is software for balancing assembly lines. Answer: FALSE 16) The most common tactic to arrange departments in a process-oriented layout is to minimize material handling costs. Answer: TRUE 17) The work cell improves process layouts by reducing floor space and by reducing direct labor cost. Answer: TRUE 18) The balancing of work cells uses the same procedures as the balancing of an assembly line. Answer: FALSE 19) A focused work center is well suited to the production of a large family of products requiring similar processing, even if their demands are not very stable. Answer: FALSE 20) A fabrication line and an assembly line are both types of repetitive and product-focused layout, but only the fabrication line utilizes workstations. Answer: FALSE 21) The biggest advantage of a product layout is its flexibility to handle a varied product mix. Answer: FALSE 22) The minimum number of workstations depends upon the set of task times and the precedence chart, but not the number of units scheduled. Answer: FALSE 23) A product requires 24 separate tasks, and the sum of those task times is 14 minutes; if the cycle time is 2 minutes, then at least 12 workstations will be needed. Answer: FALSE 24) If the schedule calls for the production of 120 units per day and 480 minutes of production time are available per day, the maximum cycle time would be 4 minutes. Answer: TRUE 25) Product-oriented layouts tend to have high levels of work-in-process inventories. Answer: FALSE 26) One drawback of a product-oriented layout is that work stoppage at any one point ties up the whole operation. Answer: TRUE 27) Cycle time is the maximum time that the product is allowed at each workstation. Answer: TRUE 28) Heuristics are problem-solving procedures that mathematically optimize the solution. Answer: FALSE Multiple Choice 1) Which of the following is not one of McDonald's "seven major innovations"? A) the Happy Meal B) drive-through windows C) breakfast menus D) play areas E) "Made by You" kitchen system Answer: A 2) The objective of layout strategy is to A) minimize cost B) develop an efficient and effective system that meets competitive requirements C) maximize flexibility D) minimize space used E) minimize material handling costs Answer: B 3) The main goal of retail layout is A) minimizing material handling cost B) maximizing high-margin sales C) minimizing storage costs D) minimizing space required E) maximizing profitability per square foot of floor space Answer: E 4) Which layout's main objective is to equalize the task time for each station? A) work cell B) fixed position C) process oriented D) job shop E) product oriented Answer: E 5) A hospital's layout most closely resembles which of the following? A) product oriented B) work cell C) job shop D) project E) none of the above Answer: C 6) Deloitte & Touche solved the empty desk problem by A) assigning permanent desks B) implementing a "hoteling" program C) creating open offices D) no longer allowing employees to work from home E) none of the above Answer: B 7) The layout strategy that deals with low-volume, high-variety production is A) fixed-position layout B) retail layout C) warehouse layout D) office layout E) none of the above Answer: E 8) "A special arrangement of machinery and equipment to focus on production of a single product or group of related products" describes what layout type? A) fixed-position layout B) intermittent production C) job shop D) work cell E) warehouse layout Answer: D 9) A good layout requires determining A) material handling requirements B) capacity and space requirements C) environment and aesthetics D) cost of moving between various work areas E) all of the above Answer: E 10) Retail layouts thrive on the notion that A) handling costs should be minimized B) storage costs should be minimized C) average customer visit duration should be maximized D) space used should be minimized E) maximizing customer exposure rate maximizes sales and profit Answer: E 11) Slotting fees A) are charged by retailers to stock a product B) can amount to as much as $25,000 C) are not a part of Wal-Mart's business practices D) can reduce the ability of small businesses to introduce new products E) all of the above Answer: E 12) Which of the following is not a retail layout practice? A) high-draw items along periphery B) distribute power items throughout store C) end-aisle locations are used to maximize product exposure D) high-margin and impulse items in prominent locations E) All of the above are retail layout practices. Answer: E 13) What is the primary reason why retailers tend to locate high-draw items around the periphery of the store? A) More shelf space for those popular items is available around the periphery. B) There will be less congestion of customers than there would be in the middle. C) This arrangement will help to maximize customer exposure to other items in the store. D) It is easier to put large advertisement signs on the outside walls right next to the items. E) This arrangement allows customers to travel through the store as quickly as possible. Answer: C 14) The fixed-position layout would be most appropriate in which of the following settings? A) a fast-food restaurant B) a doctor's office C) a casual dining restaurant D) a cruise ship assembly facility E) none of the above Answer: D 15) For which of the following operations would a fixed-position layout be most appropriate? A) assembling automobiles B) producing TV sets C) constructing a highway tunnel or bridge D) refining of crude oil E) running an insurance agency Answer: C 16) Because problems with fixed-position layouts are so difficult to solve well onsite, operations managers A) virtually never employ this layout strategy B) utilize this approach only for construction projects such as bridges and office towers C) increase the size of the site D) often complete as much of the project as possible off-site E) utilize this layout only for defense contractors Answer: D 17) Which of the following is not one of the factors complicating the techniques for addressing the fixed position layout? A) The volume of materials is dynamic. B) At different stages of a project, different materials are needed; therefore, different items become critical as the project develops. C) Takt times at workstations are dynamic. D) There is limited space at virtually all sites. E) All of the above are complicating factors. Answer: C 18) The type of layout which features departments or other functional groupings in which similar activities are performed is A) process-oriented B) product-oriented C) fixed-position D) mass production E) unit production Answer: A 19) One of the major advantages of process-oriented layouts is A) high equipment utilization B) large work-in-process inventories C) flexibility in equipment and labor assignment D) smooth and continuous flow of work E) none of the above Answer: C 20) The main issue in designing process layouts concerns the relative positioning of A) safety devices B) departments C) raw materials D) entrances, loading docks, etc. E) supervisors to their employees Answer: B 21) Which of the following is not an information requirement for solving a load-distance problem? A) a list of departments or work centers B) a projection of work flows between the work centers C) the distance between locations D) a list of product cycle times E) the cost per unit of distance to move loads Answer: D 22) The major problem addressed by the process-oriented layout strategy is A) the movement of material to the limited storage areas around the site B) requiring frequent contact close to one another C) the provision of low-cost storage with low-cost material handling D) minimizing difficulties caused by material flow varying with each product E) balancing product flow from one work station to the next Answer: D 23) The most common tactic followed in process-layout planning is to arrange departments or work centers so they A) minimize the cost of skilled labor B) maximize the machine utilization C) allocate the available space equally to all the departments D) minimize the costs of material handling E) none of the above Answer: D 24) Which type of layout is specifically designed to encourage employees to interact? A) warehouse B) job shop C) open office D) retail E) repetitive/continuous Answer: C 25) Which of the following is true for process layouts, but false for product-oriented layouts? A) low in-process inventories B) flexibility in equipment and labor assignments C) low variety of products D) high volume of output E) often solved by assembly line balancing Answer: B 26) A big advantage of a process-oriented layout is A) its flexibility in equipment and labor assignments B) its low cost C) the simplified scheduling problem presented by this layout strategy D) the ability to employ low-skilled labor E) its high equipment utilization Answer: A 27) One disadvantage of process-oriented layouts arises from A) the use of special purpose equipment B) machine maintenance, which tends to seriously degrade the capacity of the entire system C) the use of specialized material handling equipment D) the need for stable demand E) the use of the general purpose machines and equipment Answer: E 28) The typical goal used when developing a process-oriented layout strategy is to A) minimize the distance between adjacent departments B) minimize the material handling costs C) maximize the number of different tasks which can be performed by an individual machine D) minimize the level of operator skill necessary E) maximize job specialization Answer: B 29) Which of the following is true of a focused factory? A) It may be focused in ways other than by product or layout. B) It may be focused only by processing requirements. C) It is much like a product facility within an otherwise process facility. D) All of the above are true. E) None of the above is true. Answer: A 30) In the Office Relationship Chart, which rating reflects the highest importance for two departments' closeness to each other? A) A B) E C) I D) O E) X Answer: A 31) Which of the statements below best describes office layout? A) groups workers, their equipment, and spaces/offices to provide for movement of information B) addresses the layout requirements of large, bulky projects such as ships and buildings C) seeks the best personnel and machine utilization in repetitive or continuous production D) allocates shelf space and responds to customer behavior E) deals with low-volume, high-variety production Answer: A 32) Which of the following constitutes a major trend influencing office layouts? A) downsizing B) globalization C) environmental issues D) off-site employees E) health issues Answer: D 33) Which of the following does not support the retail layout objective of maximizing customer exposure to products? A) locate high-draw items around the periphery of the store B) use prominent locations for high-impulse and high-margin items C) maximize exposure to expensive items D) use end-aisle locations E) convey the store's mission with the careful positioning of the lead-off department Answer: C 34) Ambient conditions, spatial layout and functionality, and signs, symbols, and artifacts are all A) indicators of imbalance on an assembly line B) indicators that cross-docking has been successful C) elements of customization in a warehouse layout D) elements of servicescapes E) elements of successful office layouts Answer: D 35) Balancing low-cost storage with low-cost material handling is important in a(n) A) fixed-position layout B) process-oriented layout C) office layout D) repetitive and product-oriented layout E) warehouse layout Answer: E 36) Which of the following requires an information system that provides inbound product identification, its destination, and routing of the product to the designated outbound vehicle? A) phantom-docking B) random stocking C) ASRS D) customizing E) cross-docking Answer: E 37) The major problem addressed by the warehouse layout strategy is A) minimizing difficulties caused by material flow varying with each product B) requiring frequent contact close to one another C) addressing trade-offs between space and material handling D) balancing product flow from one work station to the next E) none of the above Answer: C 38) The concept of customizing in a warehouse layout A) is possible, but causes serious loss of oversight of the quality function B) cannot be considered seriously in today's high efficiency factories C) is theoretically sound, but several years away in practice D) is a new trend in value-added activities in warehouses E) none of the above Answer: D 39) ASRS stands for A) automated storage and retrieval system B) automated storage and recovery system C) automated scan and recognize system D) automated scan and retail system E) none of the above Answer: A 40) Which of the following is true of random stocking? A) Because items are stocked randomly, accurate inventory records are not necessary. B) Its results always minimize handling costs. C) Products have their own permanent storage spot. D) Each pick can be of only one product. E) None of the above is true. Answer: E 41) Cross-docking is A) seldomly placing an item in storage, it is sent straight from incoming to outbound B) using docks for either incoming or outbound shipments C) using a single dock to unload and then load the same truck D) all of the above E) none of the above Answer: A 42) Which one of the following is not common to repetitive and product-oriented layouts? A) a high rate of output B) specialization of labor C) ability to adjust to changes in demand D) low unit costs E) All are common to product-oriented layouts. Answer: C 43) Which of the following is not an advantage of work cells? A) reduced direct labor cost B) decreased use of equipment and machinery C) heightened sense of employee participation D) reduced raw material and finished goods inventory E) reduced investment in machinery and equipment Answer: B 44) Balancing a work cell is done A) before the work cell equipment is sequenced B) as part of the process of building an efficient work cell C) before takt time is calculated D) so that each assembly line workstation has exactly the same amount of work E) to minimize the total movement in a process layout Answer: B 45) Takt time is A) the total work time available divided by units required by the consumer B) the units required divided by workers required C) a fictional time increment similar to a therblig D) the same thing as cycle time in a process layout E) an important consideration in balancing an assembly line Answer: A 46) A process layout problem consists of 4 departments, each of which can be assigned to one of four rooms. The number of different solutions to this problem is __________, although all of them may not have different material handling costs. A) 1 B) 4 C) 16 D) 24 E) unknown Answer: D 47) Solving a load-distance problem for a process-oriented layout requires that A) the difficulty of movement be the same for all possible paths B) pickup and setdown costs vary from department to department C) the cost to move a load be the same for all possible paths D) takt time be less than 1 E) CRAFT software examine all possible department configurations Answer: A 48) Which of the following layouts generally has the best machine utilization? A) fixed-position layout B) repetitive and product-oriented layout C) process-oriented layout D) office layout E) warehouse layout Answer: B 49) Which of the following is not one of the requirements of cellular production? A) test (poka-yoke) at each station in the cell B) adequate volume for high equipment utilization C) a high level of training, flexibility, and empowerment of employees D) being self-contained, with its own equipment and resources E) identification of families of products, often through the use of group technology codes Answer: B 50) The assumption of stability of demand is important for justifying which of the following layout types? A) fixed-position layout B) product-oriented layout C) process-oriented layout D) all of the above E) none of the above Answer: B 51) Which layout type assumes an adequate volume for high equipment utilization? A) product-oriented layout B) process-oriented layout C) fixed-position layout D) retail layout E) warehouse layout Answer: A 52) A product-oriented layout would be most appropriate for which one of the following businesses? A) fast food B) steel-making C) insurance sales D) clothing alterations E) a grocery store Answer: B 53) The assumptions necessary for a successful product layout include all of the following except A) adequate volume for high equipment utilization B) standardized product C) volatile product demand D) All of the above are appropriate assumptions. E) None of the above is an appropriate assumption. Answer: C 54) Which of these layouts is most suitable for processing sugar from sugar beets or sugar cane? A) process-oriented layout B) fixed-position layout C) warehouse layout D) product-oriented layout E) work cell layout Answer: D 55) Which of the following is true regarding fabrication lines? A) They are the same thing as assembly lines. B) They are the same thing as focused factories. C) They are a special type of process-oriented layout. D) Balancing their assembly line is more technological than worker oriented. E) None of the above is true. Answer: D 56) The central problem in product-oriented layout planning is A) minimizing material handling within workstations B) minimizing labor movement between workstations C) equalizing the space allocated to the different workstations D) maximizing equipment utilization E) minimizing the imbalance in the work loads among workstations Answer: E 57) A disadvantage of product-oriented layout is that A) there is a lack of flexibility in handling a variety of products or production rates B) high volume is required because of the large investment needed to set up the process C) work stoppage at any one point halts the whole operation D) All of the above are disadvantages of product-oriented layouts. E) None of the above is a disadvantage of product-oriented layouts. Answer: D 58) The main advantage of a product-oriented layout is typically A) high customer exposure rates B) employability of highly skilled labor C) high flexibility D) low capital cost E) low variable cost per unit Answer: E 59) In a product-oriented layout, the process of deciding how to assign tasks to workstations is referred to as A) station balancing B) process balancing C) task allocation D) line balancing E) work allocation Answer: D 60) In assembly line balancing, the theoretical minimum number of workstations is A) the ratio of the sum of all task times to cycle time B) always (when a fraction) rounded upward to the next larger integer value C) not always possible to reach when tasks are actually assigned to stations D) all of the above E) none of the above Answer: D 61) In assembly line balancing, cycle time (the ratio of available production time to scheduled production) is the A) minimum time that a product is allowed at each workstation B) maximum time that a product is allowed at each workstation C) inverse of the minimum number of workstations needed D) sum of all the task times divided by the maximum number of workstations E) equivalent of the maximum task time among all tasks Answer: B 62) A production line is to be designed to make 500 El-More dolls per day. Each doll requires 11 activities totaling 16 minutes of work. The factory operates 750 minutes per day. The required cycle time for this assembly line is A) one-half minute B) one and one-half minutes C) two minutes D) 5,500 minutes E) cannot be determined from the information given Answer: B 63) A production line is to be designed for a job with four tasks. The task times are 2.4 minutes, 1.4 minutes, 0.9 minutes, and 1.7 minutes. After line balancing, the largest possible assigned cycle time is ________ and the smallest possible assigned cycle time is ________ minutes. A) 1.8; 1.4 B) 1.6; 0.9 C) 6.4; 2.4 D) 2.4; 0.9 E) none of these Answer: C 64) Cycle time is computed as A) desired output divided by the daily operating time B) daily operating time divided by the product of desired output and the sum of job times C) the product of desired output and the sum of job times divided by daily operating time D) daily operating time divided by the scheduled output E) 1.00 minus station time Answer: D 65) Daily capacity of a product layout is determined by A) operating time divided by cycle time B) cycle time divided by operating time C) operating time divided by total task time D) total task time divided by cycle time E) cycle time divided by total task time Answer: A 66) Four hundred and eighty minutes of production time are available per day. Scheduled production is 120 units per day. What is the required cycle time? A) 4 minutes B) 5 minutes C) 6 minutes D) 7 minutes E) 8 minutes Answer: A 67) A production line is to be designed for a product whose completion requires 21 minutes of work. The factory works 400 minutes per day. Can an assembly line with five workstations make 100 units per day? A) yes, with exactly 100 minutes to spare B) no, but four workstations would be sufficient C) no, it will fall short even with a perfectly balanced line D) yes, but the line's efficiency is very low E) cannot be determined from the information given Answer: C 68) Four hundred and eighty minutes of production time are available per day. The schedule calls for the production of 80 units per day. Each unit of the product requires 30 minutes of work. What is the theoretical minimum number of workstations? A) 2 B) 3 C) 4 D) 5 E) 6 Answer: D 69) Which of the following is not a heuristic rule for assigning tasks to workstations in a product layout? A) longest tasks first B) in order of most number of following tasks C) median tasks first D) shortest tasks first E) in accordance with positional weight Answer: C 70) If a layout problem is solved by use of "heuristics," this means that A) there was no other way to solve the problem B) no computer software was available C) the problem has only a few alternatives to evaluate D) no optimum solution exists E) a "satisfactory" solution is acceptable Answer: E 71) Which of the following is a common heuristic for assembly line balancing? A) debits near the windows, credits near the door B) manufacturers locate near materials, retailers locate near customers C) earliest due date first D) ranked positional weight E) none of the above Answer: D 72) An assembly line consists of 21 tasks grouped into 5 workstations. The sum of the 21 task times is 85 minutes. The largest assigned cycle time is 20 minutes. The efficiency of this line is A) 4.2 percent B) 17 percent C) 85 percent D) 100 percent E) none of the above Answer: C 73) An assembly line consists of 158 tasks grouped into 32 workstations. The sum of all task times is 105 minutes. The largest assigned cycle time is 4 minutes. The efficiency of this line is approximately A) 8 percent B) 21 percent C) 82 percent D) 100 percent E) none of the above Answer: C Short Answer 1) McDonald's "Made for You" kitchen system represents a __________ use of layout decisions. Answer: strategic 2) __________ layouts deal with low-volume, high-variety production with like machines and equipment grouped together Answer: Process-oriented 3) A(n) __________ is a special product-oriented arrangement of machines and personnel in what is ordinarily a process-oriented facility. Answer: work cell 4) A(n) __________ groups workers, their equipment, and spaces/offices to provide for comfort, safety, and movement of information. Answer: office layout 5) The __________ is a non-numeric method for determining which departments are located near one another, and which departments are kept farther apart. Answer: office relationship chart or relationship chart 6) A(n) __________ addresses flow, allocates space, and responds to customer behavior. Answer: retail layout 7) __________ are fees manufacturers pay to get their products displayed. Answer: Slotting fees 8) __________ refers to the physical surroundings in which a service takes place, and how they affect customers and employees. Answer: Servicescape 9) __________ avoids placing materials or supplies in storage by processing them as they are received for shipment. Answer: Cross-docking 10) The project remains in one place and workers and equipment come to that one work area in a __________ layout. Answer: fixed-position 11) __________ is the use of computer software to evaluate the profitability of merchandising plans in a retail layout. Answer: Category management 12) __________ is that element of balancing a work cell that superficially resembles cycle time. Answer: Takt time 13) A(n) __________ line is a machine-paced product-oriented facility for building components. Answer: fabrication 14) __________ is the maximum time that the product is available at each workstation. Answer: Cycle time 15) Identify McDonald's "seven major innovations. Answer: The seven major innovations are indoor seating, drive-through windows, breakfast menus, play areas, the "Made for You" kitchen system, the self-service kiosk, and the 21st century look. 16) In what specific areas does the layout decision establish a firm's competitive priorities? Answer: Layout decisions establish a firm's competitive priorities in the following areas: processes, flexibility, cost, capacity, and quality of work life. 17) To develop a good facility layout, what must be determined? Answer: You need to consider the following to determine a good layout: selection of material handling equipment, capacity and space requirements, environment and aesthetics, flows of information, and cost of moving between various work areas. 18) Identify the seven fundamental layout strategies. Describe the use of each one very briefly. Answer:

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