EXCERCISE 1 1- In a process layout it is important to minimize the cost of: a- Raw material b- Special purpose equipment C- Material handling d- Skilled labor 2- One major disadvantage of outsourcing is: a- A supplier could become a future competitor b- Product improvement - Increased break-even point d- Decreased point of indifference 3- The critical path of a project is: a- The shortest time path through a network of activities b- The longest time path through a network of activities C- The sequence of activities that contain at least one slack (actis delayed without affecting the entire project) d- The sequence of activities that incurs the lowest cost is a common technique used in scheduling a a- Gantt chart b- Capacity planning C- Facility layout d- Preceding activities 5- A big advantage of a process layout is: a- its flexibility in equipment and labor assignment b- Its low cost C- The simplified scheduling problem presented by this layout d- The ability to employ low-skilled labor 6- Economies of scale is achieved when : a- Variable costs per unit are reduced by an increase production b- Fixed costs can be spread over a large number of units C- Productivity decrease slightly overtime - Employees work overtime 7. Outsourcing is procuring services and products from: a. Other countries where the company owns facilities b- Sources external to the organization - Low cost firms in developing countries d- Low cost firms in the sames country 8- As the quantify produced increases and you move toward product focused production: a. The variable cost per unit increases b- The total fixed cost for the production operation increases The equipment utilization rate decreases d- More general-purpose equipements are used 9. Waiting lines time could be reduced by the following psychological approach: a- Using mirrors in waiting rooms - Realizing economies of scale c Reaching the break-even point d- Increasing A (mean arrival time) 10-In operations management, vertical integration refers to : a- Align all equipments in the same facility b- Sequencing activities of one department c- Matching employees skills to operations d- The decision about producing in-house, goods and services along the supply chain