Large and Small Shop Practices

Question 1

A cost of producing a project can be broken into?

Answer 1

Direct costs and general expenses.

Question 2

Example of direct costs?

Answer 2

Solid lumber consumed when building a project

Question 3

What are general expenses

Answer 3

ALL the costs necessary to facilitate the construction of the project, but cannot be tied specifically to a project.

Indirect costs such as electricity are sometimes called general requirements of the project or Project Overhead

Question 4

Amount left over after all direct costs are paid out

Answer 4

Profit

Question 5

Economic factors for project costs

Answer 5

Supply & Demand

Natural disasters ( Hurricane hits gulf supply runs short or slow)

Question 6

Owner and Designer consultant relationship may have effect on

Answer 6

Quality of the drawings/Specs

Project administration they provide

All has effect on final costs

Question 7

Why is a Preliminary Estimate performed?

Answer 7

To determine feasibility of a project during the early design phase.

Question 8

Cost Manegment Estimates require?

Answer 8

Series of preliminary estimates to be prepared so that informed decisions can be made to be included in the design.

When project is underway, preliminary estimates are utilized to provide a budgetary control system that enables cabinetmaking company to identify production deficiencies

Question 9

Detailed estimates?

Answer 9

Work as specified and provide some profit for the bidder.

Question 10

Items that should be considered in the estimates are?

Answer 10

Equipment or materials required

Labour costs

Waste ect

Question 11

Factors of Overhead general expenses

Answer 11

Company history

Size of company

Experience of project estimators

Size of projects

Product type and mix

Local vs International markets

Question 12

Examples of Overhead

Answer 12

Material or Labour cost that cannot be billed directly to a project Ex:

DUO SIP:
D- ebt payment
U- tilities
O- ffice supplies
S- hop supplies
I- nsurance
P-ayroll

Question 13

Site work overhead refers to ?

Answer 13

Work that takes place outside of shop.

Question 14

Mid - Large size company employs how many ?

Answer 14

271 people

Third of whom are not productive workers in the sense they do not produce product.

Question 15

Training in Small shop vs Large

Answer 15

Small - Little bit of everything

Large shops - Produces Specialists good at narrower spectrum of tasks

Question 16

Why is shop layout important

Answer 16

Efficiency

Safety

Question 17

Product Conversion?

Answer 17

Conversion system is based on the product mix and describes whether the processes used to produce products are identical or custom nature

Question 18

Mass producing items which differ little from one order to the next is called ?

Answer 18

Low mix or high vol/low mix

Question 19

Plants that produce standard profiles and trims fall into which conversion system

Answer 19

Continuous Conversion System

Question 20

What is a Intermittent Conversion System

Answer 20

Variety of custom products produced at one time

Referred to as job shop

Used in shops that have standard products that are customized

Low Vol/High Mix

Question 21

How is process flow improved?

Answer 21

Reducing handling of materials and the distance they must travel.

Question 22

What is a work center

Answer 22

Grouping of similar machines that perform similar processes

Question 23

What are Cells in regards to shop layout

Answer 23

Groupings of a variety of machines and people that permit one piece flow.

Question 24

Summarize Low Mix/High Vol vs High Mix/Low Vol?

Answer 24

Low Mix/High Vol is considered continuous product conversion

High Mix/Low Vol is considered intermittent product conversion.

Question 25

What is the arrow in the picture demonstrating?

Answer 25

A work centre