TRU FALS Statement E E 1- 2- The term capacity refers to the maximum quantity an operating unit can process over a given period of time. High-cost, low-volume items often require careful inspection since we make them so infrequently Statistical Process Control is the measurement of rejects in the final product. A strategy that emphasizes convenience for the customers would probably select a single very large facility. Factor rating is limited to quantitative information concerning location decisions. 3- 4- 5- 6- A Job-Shop processing system generally requires less skilled workers than a continuous processing system. Continuous processing is the best way to produce customized output. 7-8 Product layouts involve high utilization of labor and equipment. 9- Process layouts feature departments or other functional groupings of personnel or equipment. 10 An example of an external factor that influences effective capacity is government safety regulations