MOB - Production, Capacity, Layout

What is the primary objective of layout strategy?

• To minimize costs

• To develop an effective and efficient layout

• To increase employee turnover

• To reduce customer interaction

Which layout type focuses on the production of a single product or group of related products?

• Work cell layout

• Product-oriented layout

• Process-oriented layout

• Fixed-position layout

What is a key consideration in good layouts?

• Employee satisfaction only

• Material handling equipment

• Aesthetic appeal only

• Cost of employee salaries

In which layout do workers and equipment come to the site of the product?

• Work cell layout

• Product-oriented layout

• Fixed-position layout

• Process-oriented layout

Which layout type is characterized by grouping similar machines and equipment together?

• Product-oriented layout

• Retail layout

• Fixed-position layout

• Process-oriented layout

Fill in the blank. Economies of scale is when as output _________, unit costs ________ in the long run.

• increases; decrease

• increases; increase

• decreases; increase

• decreases; decrease

Internal economies of scale are those that

• Result from changes in production techniques

• Increase due to the growth of the industry as a whole

• Generate lower per unit production costs

• Reduce production costs in the short run

Internal diseconomies of scale can be caused by

• Being unable to purchase stocks at a discounted price
• Management control being weakened with a larger workforce
• Traffic congestion causing delays to delivery of important stocks
  
• Advertising costs to a global audience

Which of the following is not a cause of internal diseconomies of scale?

• Poor communication between different departments
• Lack of staff morale and motivation
  
• Less control, direction and coordination of human resources
• Late deliveries due to congestion in busy locations

Larger firms are better able to diversify into a range of product areas or markets and thus lessen their risk. This is an example of

• Financial economies of scale

• Technical economies of scale

• Managerial economies of scale

• Marketing economies of scale

• Risk bearing economies of scale