SCM 311 HW REVIEW QUESTIONS AND
VERIFIED ANSWERS
\.If a company has fixed costs of $3,500,000; variable costs of $375 per item; and
a projected sales price of $6000, what is the breakeven point for the company? -
ANSWERS✔-622.22 round to 623
\.What other piece of information does the company need in order to make a
decision based on the break even analysis? - ANSWERS✔-forecast
\.If a company's forecast reveals that they cannot sell enough products to break
even, what are their options? - ANSWERS✔-Reduce fixed costs, reduce variable
costs, raise sales price, outsource, pull the plug
\.What is the goal of product design? - ANSWERS✔-Design a product that meets
the needs of the customer
\.What is the systems availability for a product if the average time between
breakdowns = 500 days and the average time to repair it is 8 days? - ANSWERS✔-
98.425
\.Why is it important to do process development and product development
concurrently? - ANSWERS✔--To ensure you can build what you are designing
-Speeds delivery to customer
, \.What is designing for the environment and why is it important? - ANSWERS✔--
Designing for recycle, from recycled materials, using less materials or energy and
less land fill contributions.
-Importance: finite materials and land fill issues
\.What is the link between quality and product development? - ANSWERS✔-Have
to design the quality into the product
\.What is design for six sigma? How does this differ from the six sigma steps we
looked at in discussing quality? - ANSWERS✔-Designing the product for ease of
assembly - difference is in the last two steps Design and Verify
\.What is value engineering? - ANSWERS✔-Determining if there is value added by
the product
\.What is Kaizen? - ANSWERS✔-Japanese continuous process improvement
methodology
\.Where did JIT come to America from? - ANSWERS✔-Japan - primarily from
Toyota and Taiichi Ohno
\.If a company is implementing a Kanban system and has captured the following
data, how many Kanbans do they need in their system? The company is
conservative and does not want to run out of product. - ANSWERS✔-- Container
size = 30
VERIFIED ANSWERS
\.If a company has fixed costs of $3,500,000; variable costs of $375 per item; and
a projected sales price of $6000, what is the breakeven point for the company? -
ANSWERS✔-622.22 round to 623
\.What other piece of information does the company need in order to make a
decision based on the break even analysis? - ANSWERS✔-forecast
\.If a company's forecast reveals that they cannot sell enough products to break
even, what are their options? - ANSWERS✔-Reduce fixed costs, reduce variable
costs, raise sales price, outsource, pull the plug
\.What is the goal of product design? - ANSWERS✔-Design a product that meets
the needs of the customer
\.What is the systems availability for a product if the average time between
breakdowns = 500 days and the average time to repair it is 8 days? - ANSWERS✔-
98.425
\.Why is it important to do process development and product development
concurrently? - ANSWERS✔--To ensure you can build what you are designing
-Speeds delivery to customer
, \.What is designing for the environment and why is it important? - ANSWERS✔--
Designing for recycle, from recycled materials, using less materials or energy and
less land fill contributions.
-Importance: finite materials and land fill issues
\.What is the link between quality and product development? - ANSWERS✔-Have
to design the quality into the product
\.What is design for six sigma? How does this differ from the six sigma steps we
looked at in discussing quality? - ANSWERS✔-Designing the product for ease of
assembly - difference is in the last two steps Design and Verify
\.What is value engineering? - ANSWERS✔-Determining if there is value added by
the product
\.What is Kaizen? - ANSWERS✔-Japanese continuous process improvement
methodology
\.Where did JIT come to America from? - ANSWERS✔-Japan - primarily from
Toyota and Taiichi Ohno
\.If a company is implementing a Kanban system and has captured the following
data, how many Kanbans do they need in their system? The company is
conservative and does not want to run out of product. - ANSWERS✔-- Container
size = 30
