Review Questions : Chapter 2 (Manufacturing Operation) SECTION A

Question 1 What are the three basic industry categories?

Question 2 What is the difference between consumer goods and capital goods?

Question 3 What is the difference between a processing operation and an assembly operation

Question 4 What is the difference between hard product variety and soft product variety?

Question 5 What type of production does a job shop perform?

Question 6 Flow line production is associated with which one of the following layout types: (a) cellular layout, (b) fixed-position layout, (c) process layout, or (d) product layout?

Question 7 What is the difference between a single-model production line and a mixed-model production line?

Question 8 What is meant by the term technological processing capability?

Question 9 What is lean production?

Question 10 What is the cycle time in a manufacturing operation?

What is Question 11 production capacity? How can plant capacity be increased or decreased in the short term? What is utilization in a manufacturing plant? Provide a definition.

Question 12 What is manufacturing lead time?

How Question 13 How are fixed costs distinguished from variable costs in manufacturing?

============================================================================ SECTION B

Question 1 A plant produces three product lines: A, B, and C. There are 6 models within product line A, 4 models within B, and 8 within C. Average annual production quantities of each A model is 500 units, 700 units for each B model, and 1100 units for each C model. Determine the values of (a) P and (b) Q f for this plant.

Answers (a) P = 18 different models. (b) Qf = 14,600 units

Question 2 The ABC Company is planning a new product line and will build a new plant to manufacture the parts for a new product line. The product line will include 50 different models. Annual production of each model is expected to be 1000 units. Each product will be assembled of 400 components. All processing of parts will be accomplished in one factory. There are an average of 6 processing steps required to produce each component, and each processing step takes 1.0 minute (includes an allowance for setup time and part handling). All processing operations are performed at workstations, each of which includes a production machine and a human worker. If each workstation requires a floor space of 250 ft2, and the factory operates one shift (2000 hr/yr), determine (a) how many production operations, (b) how much floorspace, and (c) how many workers will be required in the plant. Answers (a) nof = 120,000,000 operations in the factory per year. (c) At 2000 hours/yr per worker, w = 1000 workers. (b) Total floorspace = 250,000 ft2

Question 3 The XYZ Company is planning to introduce a new product line and will build a new factory to produce the parts and assembly the final products for the product line. The new product line will include 100 different models. Annual production of each model is expected to be 1000 units. Each product will be assembled of 600 components. All processing of parts and assembly of products will be accomplished in one factory. There are an average of 10 processing steps required to produce each component, and each processing step takes 30 sec. (includes an allowance for setup time and part handling). Each final unit of product takes 3.0 hours to assemble. All processing operations are performed at work cells that each includes a production machine and a human worker. Products are assembled on single workstations consisting of two workers each. If each work cell and each workstation require 200 ft2, and the factory operates one shift (2000 hr/yr), determine: (a) how many production operations, (b) how much floorspace, and (c) how many workers will be required in the plant. Answers (a) nof = 600,000,000 proc ops/yr

(c) At 2000 hours/yr per worker, w = 2650 workers. (b) Total floor space A = (2575 stations)(200 ft2/station) = 515,000 ft2

Question 4 If the company in Problem 2.3 were to operate three shifts (6000 hr/yr) instead of one shift, determine the answers to (a), (b), and (c). Solutions (a) nof = 600,000,000 operations/yr

(b) Total floor space A = (859 stations)(200 ft2/station) = 171,800 ft2

Question 5 A certain part is routed through six machines in a batch production plant. The setup and operation times for each machine are given in the table below. The batch size is 100 and the average nonoperation time per machine is 12 hours. Determine (a) manufacturing lead time and (b) production rate for operation 3. Machine 1 2 3 4 5 6 Setup time (hr.) 4 2 8 3 3 4 Operation time (min.) 5.0 3.5 10.0 1.9 4.1 2.5

Solution : (a) MLT = 141 hr (b) Rp for operation 3: Rp = 4.05 pc/hr

Question 6 The mean time between failure for a certain production machine is 250 hours, and the mean time to repair is 6 hours. Determine the availability of the machine. Solution : Availability, A = 97.6%

Question 7 The average part produced in a certain batch manufacturing plant must be processed sequentially through six machines on average. Twenty (20) new batches of parts are launched each week. Average operation time = 6 min., average setup time = 5 hours, average batch size = 25 parts, and average nonoperation time per batch = 10 hr/machine. There are 18 machines in the plant working in parallel. Each of the machines can be set up for any type of job processed in the plant. The plant operates an average of 70 production hours per week. Scrap rate is negligible. Determine (a) manufacturing lead time for an average part, (b) plant capacity, (c) plant utilization. (d) How would you expect the nonoperation time to be affected by the plant utilization? Solution: (a) MLT = 105 hr (b) Tp = 0.30 hr/pc, Rp = 3.333 pc/hr. (c) Utilization U = 71.43% PC = 700 pc/week

Question 8 Based on the data in the previous problem and your answers to that problem, determine the average level of work in process (number of parts in process) in the plant. Solution : WIP = 750 pc

Question 9 Costs have been compiled for a certain manufacturing company for the most recent year. The summary is shown in the table below. The company operates two different manufacturing plants, plus a corporate headquarters. Determine (a) the factory overhead rate for each plant, and (b) the corporate overhead rate. The firm will use these rates in the following year. Expense category Direct labor Materials Factory expense Corporate expense Plant 1 $1,000,000 $3,500,000 $1,300,000 Plant 2 $1,750,000 $4,000,000 $2,300,000 $5,000,000 Corporate headquarters

Solution (a) Plant 1: Factory overhead rate FOHR1 = 130% Plant 2: Factory overhead rate FOHR2 = 131.43% (b) Corporate overhead rate COHR = 181.82%