# 51 is the amount of time from when a customer places an order for a product or reque 4302360

51)

________ is the amount of time from when a customer places an order for a product or requests a service to when the product or service is delivered to the customer.

51)

______ A)

Quality customer time B)

A bottleneck C)

Customer response time D)

Manufacturing lead time E)

A time driver

52)

On-time performance is

52)

______ A)

when the product is delivered at the time scheduled to be delivered. B)

equal to customer response time, divided by the number of orders from a specific customer. C)

within 2 standard deviations of customer response time. D)

the time it takes distribution to pick up an order and deliver it to the customer. E)

within 2 standard deviations of manufacturing time.

53)

________ refers to the average amount of time that an order will be in line before it is set up and processed.

53)

______ A)

Average setup time (per cycle) B)

Average manufacturing cycle time C)

Average waiting time D)

Average customer response time E)

Average on-time performance

54)

The annual capacity of a machine is 3,500 hours, with the balance being taken for routine maintenance. It takes 50 hours to process one job (each job = 1 batch),. Altogether, there are seven employees who operate the machine at different times. Orders for the first six months of the year, which are typical, have averaged 50 jobs per months. The company expects 300 orders over the next six months.

Which of the following is TRUE?

54)

______ A)

waiting time for at least one order will be nil B)

expected capacity utilization = 600 batches C)

expected capacity utilization = 700 batches D)

waiting time for at least one order will be nil, and expected capacity utilization = 600 batches E)

average waiting time is not relevant when expected capacity utilization is less than capacity

55)

For a fast-food restaurant the average waiting time might be formulated as

55)

______ A)

B)

[(average number of customers) x (average serving time)]/capacity C)

[(average number of employees) x (average serving time)]/serving time D)

E)

56)

The demand for Ballard's Glass Company's products varies, ranging from 10 to 20 windows a day with an average of 15. John Ballard works eight hours a day, five days a week. Each order is one window and each window takes 26 minutes.

What is the average waiting time in minutes?

56)

______ A)

82.3

B)

4.4

C)

56.3

D)

1.6

E)

28.2

57)

The demand for Ballard's Glass Company's products varies, ranging from 10 to 20 windows a day with an average of 15. John Ballard works eight hours a day, five days a week. Each order is one window and each window takes 26 minutes.

Assuming wait time is 12 minutes, and order receipt time equals 21 minutes what is the cycle time for an order on average?

57)

______ A)

59 minutes B)

41 minutes C)

26 minutes D)

38 minutes E)

21 minutes

58)

The demand for Ballard's Glass Company's products varies, ranging from 10 to 20 windows a day with an average of 15. John Ballard works eight hours a day, five days a week. Each order is one window and takes 26 minutes. The company plans to add doors to its product line and anticipates selling an average of 5 doors per day. Each door takes 12 minutes to install.

What is the average waiting time if Ballard is the only worker?

58)

______ A)

181.0 minutes B)

410.0 minutes C)

523.4 minutes D)

112.4 minutes E)

38.0 minutes

59)

The demand for Ballard's Glass Company's products varies, ranging from 10 to 20 windows a day with an average of 15. John Ballard works eight hours a day, five days a week. Each order is one window, which takes 26 minutes. The company plans to add doors to its product line and anticipates that they will sell an average of 5 doors per day. Each door takes 12 minutes to install.

Ballard is concerned with the increased waiting time if it adds doors. To offset this concern it can hire a part-time employee. This will decrease window time to 20 minutes and door time to 10 minutes; increase the costs of windows from $10 to $12 and doors from $6 to $7.50. Since Ballard is giving customers faster service it will increase its prices from $17 to $20 for windows and from $10 to $12 for doors.

What is the expected daily revenue with and without doors, respectively, assuming average sales units are used and it hires a part-time employee if doors are sold?

59)

______ A)

$400 and $340 B)

$260 and $200 C)

$360 and $255 D)

$230 and $170 E)

$315 and $300

60)

The demand for Ballard's Glass Company's products varies, ranging from 10 to 20 windows a day with an average of 15. John Ballard works eight hours a day, five days a week. Each order is one window and each window takes 26 minutes. The company plans to add doors to its product line and anticipates that they will sell an average of 5 doors per day. Each door takes 12 minutes to install.

Ballard is concerned with the increased waiting time if it adds doors. To offset this concern it can hire a part-time employee. This will decrease windows time to 20 minutes and doors to 10 minutes. However, this will increase the costs of windows from $10 to $12 and doors from $6 to $7.50. Since he is giving customers faster service he will increase his prices from $17 to $20 for windows and from $10 to $12 for doors.

What is the daily contribution margin if he sells both windows and doors and the part-time person is hired?

60)

______ A)

$185.00 B)

$140.00 C)

$142.50 D)

$72.00 E)

$97.50