Study Questions
- Seven basic operations layouts were discussed in the text and lecture. Choose a business (service or manufacturing) and describe the layout chosen and analyze whether or not it was effective in meeting its objective.
- In your own words explain why an organization would want to establish process standardization. Explain the difference between takt time and cycle time. How do they establish process standards?
- A book publisher has fixed costs of $300,000 and variable costs per book of $8.00. The book sells for $23.00 per copy at retail price.
a) How many books must be sold to break even?
b) If the fixed costs increased by 5%, how many books must be sold to break even?
c) If the books are sold to a wholesale discount retailer and the new price per book is $20.00, how many books must be sold to break even?
- What would be the ideal layout choice for the following business types? Explain why the layout was chosen if there would be any drawbacks to the layout choice.
a) Barbershop
b) A warehouse superstore (ie. Costco, Wal-Mart or Sam’s Club)
c) A high-volume car manufacturer (ie. Toyota, Ford or GM)
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