Product-focused processes allow more customization, but are not very efficient

47.Process A has fixed costs of $1000 and variable costs of $5 per unit. Process B has fixed costs of $500 and variable costs of $15 per unit. The crossover point between process A and process B is

a.50 units

b.200 units

c.$2,500

d.$5,000

e.$9,500

a (Four process strategies, moderate) {AACSB: Analytic Skills}

48.Process X has fixed costs of $10,000 and variable costs of $2.40 per unit. Process Y has fixed costs of $9,000 and variable costs of $2.25 per unit. Which of the following statements is true?

a.The crossover point is approximately 6667 units.

b.It is impossible for one process to have both of its costs lower than those of another process.

c.Process Y is cheaper than process X at all volumes; there is no crossover point.

d.Process X should be selected for very large production volumes.

e.Process X is more profitable than process Y and should be selected.

c (Four process strategies, moderate) {AACSB: Analytic Skills}

49.The crossover point is that production quantity where

a.variable costs of one process equal the variable costs of another process

b.fixed costs of a process are equal to its variable costs

c.total costs equal total revenues for a process

d.total costs for one process equal total costs for another process

e.the process no longer loses money

d (Four process strategies, moderate)

50.Product Focused processes

a.allow more customization, but are not very efficient

b.are desirable because resource needs increase slowly with the complexity of a process

c.are processes that are specialized for relatively few products or customer groups

d.apply only to service firms, not to manufacturers

e.are profitable because customers demand flexibility, not specialization

c (Process analysis and design, moderate)

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51.Value Stream Mapping

a.is a variation on time function mapping

b.examines the supply chain to determine where value is added

c.extends time function mapping back to the supplier

d.starts with the customer and works backwards

e.All of the above are true.

e (Process analysis and design, moderate)

52.One fundamental difference between a process chart and a process map is that

a.the process chart uses a time dimension while a process map is not time-oriented

b.the process chart includes the supply chain, while the process map stays within an organization

c.the process chart is more like a table, while the process map is more like a schematic diagram

d.the process chart focuses on the customer and on the provider's interaction with the customer, while the process map does not deal directly with the customer

e.None of these is true, because a process chart and a process map are the same thing.

c (Process analysis and design, moderate)

53.Service blueprinting

a.provides the basis to negotiate prices with suppliers

b.mimics the way people communicate

c.determines the best time for each step in the process

d.focuses on the provider's interaction with the customer

e.can only be successful with two-dimensional processes

d (Service process and design, moderate) {AACSB: Communication}

54.A drawing of the movement of material, product, or people is a

a.flow diagram

b.process chart

c.service blueprint

d.process map

e.none of the above

a (Process analysis and design, moderate)

55.Strategies for improving productivity in services are

a.separation, self-service, automation, and scheduling

b.lean production, strategy-driven investments, automation, and process focus

c.reduce inventory, reduce waste, reduce inspection, and reduce rework

d.high interaction, mass customization, service factory, and just-in-time

e.none of the above

a (Service process design, moderate)

56.In mass service and professional service, the operations manager should focus on

a.automation

b.equipment maintenance

c.sophisticated scheduling

d.human resources

e.all of the above

d (Service process design, moderate)

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57.In mass service and service factory quadrants of the service process matrix, the operations manager could focus on all of the following except

a.automation

b.standardization

c.tight quality control

d.removing some services

e.customization

e (Service process design, moderate)

58.Which of the following is true regarding opportunities to improve service processes?

a.Automation can do little to improve service processes, because services are so personal.

b.Layout is of little consequence, since services seldom use an assembly line.

c.If a work force is strongly committed, it need not be cross-trained and flexible.

d.All of the above are true.

e.None of the above is true.

e (Service process design, moderate)

59.Which of the following are typical of process control systems?

a.They have sensors.

b.The digitized data are analyzed by computer, which generates feedback.

c.Their sensors take measurements on a periodic basis.

d.The sensors' measurements are digitized.

e.all of the above

e (Production technology, moderate) {AACSB: Use of IT}

60.Which of the following is true regarding vision systems?

a.They are consistently accurate.

b.They are modest in cost.

c.They do not become bored.

d.All of the above are true.

e.None of the above is true.

d (Production technology, moderate) {AACSB: Use of IT}

61.The use of information technology to monitor and control a physical process is known as

a.process control

b.computer-aided design

c.information numeric control

d.numeric control

e.none of the above

a (Production technology, moderate) {AACSB: Use of IT}

62.Which of the following technologies would enable a cashier to scan the entire contents of a shopping cart in seconds?

a.ASRS

b.AGV

c.CAD/CAM

d.RFID

e.FMS

d (Production technology, moderate) {AACSB: Use of IT}

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63."Automatic placement and withdrawal of parts and products into and from designated places in a warehouse" describes

a.AGV

b.CAD/CAM

c.CIM

d.ASRS

e.FMS

d (Production technology, moderate) {AACSB: Use of IT}

64.Computer-integrated manufacturing (CIM) includes manufacturing systems that have

a.computer-aided design, a flexible manufacturing system, inventory control, warehousing and shipping integrated

b.transaction processing, management information systems, and decision support systems integrated

c.automated guided vehicles, robots, and process control

d.robots, automated guided vehicles, and transfer equipment

e.all of the above

a (Production technology, moderate) {AACSB: Use of IT}

65.Which one of the following technologies is used only for material handling, not actual production or assembly?

a.robots

b.CNC

c.CAD

d.AGVs

e.FMS

d (Production technology, moderate) {AACSB: Use of IT}

66.A system using an automated work cell controlled by electronic signals from a common centralized computer facility is called a(n)

a.adaptive control system

b.robotics

c.flexible manufacturing system

d.automatic guided vehicle (AGV) system

e.manufacturing cell

c (Production technology, moderate) {AACSB: Use of IT}

67."Operators simply load new programs, as necessary, to produce different products" describes

a.CAD

b.automated guided vehicles

c.flexible manufacturing systems

d.vision systems

e.process control

c (Production technology, moderate) {AACSB: Use of IT}

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68.Which of the following is not one of the essential ingredients for mass customization?

a.high machine utilizations

b.personnel and facility flexibility

c.reliance on modular design

d.rapid throughput

e.very effective scheduling

a (Four process strategies, moderate)

69.Advances in technology

a.have impacted the manufacturing sector only

b.have had only limited impact on services

c.have failed to change the level of customer interaction with an organization

d.have had dramatic impact on customer interaction with services and with products

e.have dramatically changed health care, but have not changed retailing

d (Technology in services, moderate)

70.Process redesign

a.is the fundamental rethinking of business processes

b.can focus on any process

c.tries to bring about dramatic improvements in performance

d.focuses on activities that cross functional lines

e.all of the above

e (Process reengineering, moderate)

71.Ethical and environmentally friendly processes include which of the following?

a.emission controls

b.recycling

c.efficient use of resources

d.reduction of waste by-products

e.all of the above

e (Technology in services, moderate) {AACSB: Ethical Reasoning}

72.Making environmentally sound products through efficient processes

a.is unprofitable, as long as recyclable materials prices are soft

b.is known as lean manufacturing

c.can still be profitable

d.is easier for repetitive processes than for product-focused processes

e.none of the above

c (Ethical and environmentally friendly processes, moderate) {AACSB: Ethical Reasoning}

73.Flexibility can be achieved with

a.movable equipment

b.inexpensive equipment

c.sophisticated electronic equipment

d.modular equipment

e.all of the above

e (Selection of equipment and technology, moderate)

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74.Which of the following statements regarding ethical and environmentally friendly processes is true?

a.Operations managers can be environmentally sensitive, but they must avoid following a low cost strategy.

b.Processes can be environmentally friendly or socially responsible, but not both.

c.Operations managers can be environmentally sensitive and still follow a low cost strategy.

d.Using energy-efficient lighting saves so little that it should not be labeled environmentally friendly.

e.The only business strategy consistent with ethical and environmentally sensitive management is the differentiation strategy.

c (Ethical and environmentally friendly processes, moderate) {AACSB: Ethical Reasoning}

75.Which of the following is true regarding the concept of flexibility?

a.It is the ability to change production rates with little penalty in time, cost, or customer value.

b.It can be accomplished with sophisticated electronic equipment.

c.It may involve modular, movable, even cheap equipment.

d.All of the above are true.

e.None of the above is true.

d (Selection of equipment and technology, moderate)

FILL-IN-THE-BLANK

76.An organization's approach to transforming resources into goods and services is called its

_____________.

process strategy (Introduction, moderate)

77.The process strategy that is organized around processes to facilitate low-volume, high-variety processes is called a(n) ________________.

process focus (Four process strategies, moderate)

78.______________ is a process strategy that uses a product-oriented production process that uses modules.

Repetitive focus (Four process strategies, moderate)

79.____________ is a rapid, low-cost production process that caters to constantly changing unique customer desires.

Mass customization (Four process strategies, moderate)

80._____________ represent an organization's attempt to gain increased efficiency through specialization, which can include, for example, concentrating on certain classes of customers.

Focused processes (Four process strategies, moderate)

81.A(n) _______________ uses symbols to analyze the movement of people or material. process chart (Process analysis and design, easy)

82.A special form of time-function mapping, which goes beyond the organization into its supply chain, is _____________.

value stream mapping (Process analysis and design, moderate)

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83.______________ is a process analysis technique that focuses on the customer and the producer's interaction with the customer.

Service blueprinting (Process analysis and design, easy)

84.The strategy for improving service productivity that customizes at delivery, rather than at production, is _____________.

postponement (Service process design, moderate)

85.___________ involves the ability to respond with little penalty in time, cost, or customer value.

Flexibility (Selection of equipment and technology, moderate)

86.__________ is the use of information technology to control a physical process.

Process control (Production technology, moderate) {AACSB: Use of IT}

87.___________ is a computer-controlled warehouse that provides for the automatic placement of parts into and from designated places within the warehouse.

Automated storage and retrieval system or ASRS (Production technology, moderate) {AACSB: Use of IT}

88.A(n) __________ uses an automated work cell controlled by electronic signals from a common centralized computer facility.

flexible manufacturing system or FMS (Production technology, moderate) {AACSB: Use of IT}

89._______________ is the fundamental rethinking and radical redesign of business processes to bring about dramatic improvements in performance.

Process reengineering (Process redesign, moderate)

SHORT ANSWERS

90.What is Dell Computer's source of competitive advantage? In a short paragraph, explain some of the steps Dell has taken to develop this advantage.

Dell's competitive advantage is in its process strategy, which is mass customization. Dell spends most of its research budget on efficient installation and configuration of PCs, rather than on new computer parts. Dell builds PCs only when ordered. Dell utilizes various methods to keep inventory low. Dell utilizes the Internet to enhance productivity (Global company profile, moderate)

91.Why is Harley-Davidson identified as a repetitive manufacturer, not a mass customizer?

Harley-Davidson manufactures a variety of motorcycles on an assembly line. They are not a product-focused process. While Harley-Davidson's motorcycles display lots of variety, they are not as individualized as Dell's personal computers. The variety comes from choices in predefined modules, and there is apparently no place for a customer to get customization that would go beyond what is available in these modules. (Four process strategies, moderate)

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92.What is the link between focused processes and specialization? What kinds of focus are possible?

Focused processes are a means of obtaining increased productivity through forms of specialization. Focus can take several forms, including concentrating on specific classes of customers, working only with products in selected product families, specializing in a specific service, or working with a narrow range of technology. (Four process strategies, moderate)

93.Describe Value Stream Mapping. Explain how it is different from process mapping.

Value Stream Mapping is a variation on time-function mapping or process mapping. The most fundamental difference between them is that Value Stream Mapping is not confined to the organization itself. In particular, in its analysis of where value is added, it extends the analysis to the organization's supply chain. (Process analysis and design, moderate)

94.How are modules useful in manufacturing processes?

Modules are parts or components of a product previously prepared. By using modules, the product can be quickly assembled. Using a different combination of modules allows for quasi-customization. (Four process strategies, moderate)

95.What is mass customization?

Mass customization is rapid, low-cost production of goods and services that fulfill increasingly unique customer desires. It brings us the variety of products traditionally provided by the process focus, with low costs associated with standardized high volume production (the product focus). (Four process strategies, moderate)

96.Name the four basic process strategies; describe them in a complete sentence or two each.

The four process strategies are process focus, product focus, repetitive focus, and mass customization. Process is a job shop--high variety and low volume; repetitive is an assembly line--relatively standardized products with options from modules; product is for high volume, low variety, such as oil refining, flour milling; mass customization is for high volume, high variety. (Four process strategies, moderate)

97.Why is equipment utilization in process-focused service industries often low?

Equipment utilization is low because excess capacity to meet peak demand loads is often desirable, and scheduling is typically difficult. (Four process strategies, moderate)

98.Compare an intermittent process to a continuous process on the basis of variety, volume, equipment utilization, and inventory.

Intermittent has high variety, low volume, low utilization, general purpose equipment. Since most output is made to order, there is little inventory of raw materials or finished goods. Continuous has low variety, high volume, high utilization, and specialized equipment. Just-in- time practices keep inventory very low. (Four process strategies, moderate)

99.The textbook described four basic process models, and hinted that there are others. Construct an example of a hybrid process. Can this process be applied in any well-known organization? How common do you think hybrid processes are?

Most students will graft elements of process onto elements of product or repetitive. Examples may include food service, where "process" may typify most operations, but salad bars add an element of "repetitive." In health care, hybrids of process and repetitive can readily be found. (Four process strategies, moderate) {AACSB: Reflective Thinking}

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100.In an affluent society, how do we produce a wide number of options for products at low cost?

In an affluent society we produce a wide variety of options for products at low cost, primarily by use of modular components assembled in repetitive facilities, but automation is allowing more overlap of different types of production processes. (Four process strategies, moderate)

101.Name the tools of process analysis and design. Describe them in a sentence or two each.

Four tools of process analysis and design include flow diagrams, time-function mapping, process charts, and service blueprinting. Flow diagrams are a schematic or drawing of the movement of material, product, or people. Time-function mapping is a flow diagram, with the addition of time on the horizontal axis. Process charts use symbols, time, and distance to provide an objective and structured way to analyze and record the activities that make up a process. Service blueprinting focuses on the customer and the provider's interaction with the customer. (Process analysis and design, moderate)

102.Provide an example of the focus strategy for improving service productivity.

The focus strategy refers to restricting the offerings. Examples will vary, but a restaurant with a limited menu would be one example. (Service process design, moderate)

103.Provide an example of the postponement strategy for improving service productivity.

The postponement strategy refers to customizing the product at delivery, not at production. Examples will vary, but a home builder might leave some tasks unfinished until the house is sold, so that the buyer can make those final decisions. Carpeting, paint colors, cabinet doors, and some appliance choices might be good examples. (Service process design, moderate)

104.Identify the typical elements in a process control system.

Sensors collect data; analog devices read data on a periodic basis; measurements are digitized and transmitted to a computer; data are analyzed; and output occurs in the form of signals, diagrams, charts, messages, etc. (Production technology, moderate) {AACSB: Use of IT}

105.Identify the advances being made in technology to enhance production.

Technology used to enhance production include numerical control, process control, vision systems, robots, automated storage and retrieval systems, automated guided vehicles, flexible manufacturing systems, and computer integrated manufacturing. (Production technology, moderate) {AACSB: Use of IT}

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106.Identify the techniques for improving service productivity. For any two techniques, describe in a short paragraph, and include an example.

The seven techniques are separation, self-service, postponement, focus, modules, automation, scheduling, and training.

•Separation: structuring the service such that the customer must go where the service is offered (a medical facility)

•Self-service: let customers perform their own comparisons (supermarket shopping)

•Postponement: customizing at time of delivery or in the final stages of the process (dealer installed versus factory installed options on automobiles, boats, etc.; Wendy's Hamburgers)

•Focus: restricting the product offerings, options, or degree of customization allowed (limited number of factory installed options on a new automobile)

•Modules: services selected from modular choices (health insurance programs)

•Automation: identifying services that may lend themselves to automation (automatic teller machines)

•Scheduling: precise personnel scheduling (keep close watch on how many checkout lanes are needed)

•Training: clarifying options, teaching problem avoidance (maintenance personnel, counselors) (Service process design, difficult)

107.Explain, in your own words, what a flexible manufacturing system is. List the benefits of flexible manufacturing systems.

An FMS is a system using an automated work cell controlled by electronic signals from a common centralized computer facility. Benefits of an FMS include improved capital utilization, low direct labor cost, reduced inventory, and consistent quality. (Production technology, moderate) {AACSB: Use of IT}

108.Describe some major challenges to implementing a successful build-to-order system?

Product design must be imaginative and fast. Process design must be rapid, flexible, and able to accommodate changes in design and technology. Inventory management requires tight control. Tight schedules that track orders and material from design through delivery can be effectively implemented only with dedicated personnel. Responsive partners in the supply chain yield effective collaboration. (Four process strategies, moderate)

109.Identify five examples of technology's impact on services. Specifically, identify one of these that has led to labor cost reductions. Discuss briefly. Can you add an item, not identified in the textbook, to this list?

Textbook identifies about three dozen examples. Students may add examples like PointCast (or other "push" information technologies), Amazon.com (fully electronic Internet-based shopping), or examples from entertainment (video gaming, network gaming). (Technology in services, moderate) {AACSB: Use of IT}

110.Why do modern operations managers look for flexibility in their equipment?

Flexibility in equipment provides managers the ability to respond to changes in demand with little penalty in time, cost, or customer value. (Selection of equipment and technology, moderate)

What is process focused product

What is product

What is product

What type of process strategy is most suitable for an organisation with high product variety but low volume of output?