LLAVORE, ALDRICH B.

BSHM III-B

I.  True or False. Write True if the statement is correct and False if otherwise.

False 1. Plant location is not considered as the most difficult to make of all the decisions of
management.
False 2. A serious error may jeopardize the financial position of the company that is not
concerned.
False 3. A manufacturing organization should not seek the best possible location, so that
operating costs of all kinds will be minimized, both currently and in the foreseeable future.
False 4. Accessibility of a manufacturing company does not depend upon its closeness to
transportation facilities for commuters.
True 5. In opening a branch factory, it is best to relocate near the main plant, especially if the
branch is small. Distant and small branches are difficult to manage.
False 6. That business considering relocation does not have an outstanding record of business
growth.
False 7. Most businesses do not consider the availability of skilled and cheap labor the most
important characteristics of any location.
False 8. The availability of electric power, water, gas and sewage disposal facilities may be no
significance to certain industries.
False 9. The private well may supplement the municipal supply or cannot be used for special
purposes such as fire protection.
False 1O. The performance of a business is not closely related to the performance of its
managerial and technical staff.
II. Answer the question briefly.

1 . Is plant location an important consideration to its profitability? Explain.

- The location of the facility plays a vital role in the success of logistics networks. ... The main
focus of logistics is to reduce costs, improve efficiency as well as customer service.
Successful facility location decisions may lead to drastic cost reductions as well as an
improvement in the customer service levels.
LLAVORE, ALDRICH B. BSHM III-B

Identify the word/s being asked in the statement.

Plant layout 1. Involves a re-layout of existing facilities rather than a design of arrangements
for new equipment in a new building. 

Process layout 2. A logical choice, and a so called "job shop" wherein product is produced only
after a customer's order has been received.

Flexibility 3. It is known as the prime advantage of the process layout 

Product layout 4. It is said to be desirable if only one or few standard products are being made.

Stations 5. They are group closed together. 

Fixed floor layout 6. A type of layout that is also known as fixed position layout because the
material does not move.

Layout chart 7. It is simply a sketch of the workplace indicating the flow of work through it.

Plant layout 8. Minimizes transportation distances and help avoid backtracking over the
same path as production progresses.

Production man 9. One who is doing material handling when he bends over and picks up a part
or walks to a tote box to put away a finished piece.

Pallet 10. Consists of a platform slightly raised off the ground so that the fork can be
inserted below and individual items can be stacked.
LLAVORE, ALDRICH B. BSHM III-B

Identify what is beings asked for.

Maintenance 1. It is regarded merely as repairing equipment.

Plant maintenance 2. It is essentially a service to production.
Preventive maintenance 3. A maintenance work adapted to prevent breakdowns altogether.
Plant Engineering and Maintenance 4. Includes lubrication and checking gauges and safety
devices.
Breakdown Maintenance 5. Maintenance and repair is not provided until the machine breaks
down completely.
Consistent estimating 6. This would develop a meaningful yardstick for measuring performance.
Training 7. This may also be required to maximize performance.
Overloading the machine and equipment’s 8. This will certainly lead to early failures. 
Proper maintenance 9. It minimizes the rate of deterioration of assets caused by wear and tear
through usage.
Cost Item 10. It includes first of all the initial capital requirement.

II. Briefly discuss the following.

1. Maintenance programs are often merged with other activities. What is the principal
purpose of maintenance?
- Maintenance is an important factor in quality assurance and in some cases determines the
long-term success of a company. Poorly maintained resources can cause instability and partially
or completely pause the production. Malfunctioning machines or complete breakdowns can
become a costly process for most companies.