Because Problems with Fixed-Position Layouts Are So Difficult to Solve

question 106

Multiple Choice

Because problems with fixed-position layouts are so difficult to solve well onsite, operations managers:

• A) virtually never employ this layout strategy.
• B) utilize this approach only for construction projects such as bridges and office towers.
• C) increase the size of the site.
• D) often complete as much of the project as possible off site.
• E) utilize this layout only for defense contractors.

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Definitions:

Sales Dollars

The total revenue a company generates from sales activities before any expenses are deducted.

Common Fixed Expenses

Expenses that do not change with the level of production or sales and are shared by different segments or products of a company.

Manufacturing Overhead

All indirect costs associated with manufacturing, including but not limited to utility costs, depreciation, and salaries of maintenance personnel.

Variable

An element, feature, or factor that is liable to vary or change.