BUS309 Ch7 Quiz

The assembly line is a classic example of a repetitive process.

t

The typical full-service restaurant uses a product-focused process.

f

Arnold Palmer Hospital uses which focus? process repetitive product mass customization A and D

process

A firm's process strategy is its approach to transforming resources into goods and services.

t

In process-focused facilities, utilization of facilities is low.

t

The tool that calculates which process has the lowest cost at any specified production volume is a crossover chart.

t

One of the similarities between process focus and mass-customization is: the volume of outputs. the use of modules. many departments and many routings. the variety of outputs. All of the above are similarities.

the variety of outputs.

The crossover point is that production quantity where: variable costs of one process equal the variable costs of another process. fixed costs of a process are equal to its variable costs. fixed costs of a process are equal to its variable costs. total costs for one process equal total costs for another process the process no longer loses money.

total costs for one process equal total costs for another process

________ involves the ability to respond with little penalty in time, cost, or customer value. Productivity Resiliency Flexibility Differentiation

Flexibility

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. What is the crossover point between process A and process B? 50 units 200 units $2,500 $5,000 $9,500

50 units

Brandon's computer shop is considering two different configuration options. The first one is to have each computer built by the sales associates when they have free time. The second option is to hire a dedicated assembly technician. Option A has variable costs of $50 per computer and no fixed costs. Option B has a fixed cost of $1,000 but variable costs of only $5 per computer. What is the cross-over point? 22.2 computers 20.2 computers 25.2 computers 30.2 computer

22.2 computers

Which of the following companies use a mass customization approach? Dell Align Technology Frito-Lay Arnold Palmer Hospital A and B

A and B

High fixed costs and low variable costs are typical of which approach? product process mass customization repetitive A and C

A and C

Karla's candle factory is considering two different manufacturing options. Option A is highly automated with fixed costs of $25,000 and variable costs of $.1/candle. Option B uses hand labor with fixed costs of $10,000 and variable costs of $.5/candle. If demand for Karla's candles is 25,000, which option should she pick? Option A Option B It's hard to determine with the information given.

Option B

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? The crossover point is approximately 6667 units. It is impossible for one process to have both of its costs lower than those of another process. Process Y is cheaper than process X at all volumes. Process X should be selected for very large production volumes. Process X is more profitable than process Y and should be selected.

Process Y is cheaper than process X at all volumes.

Mary is considering purchasing a machine from one of two suppliers. Supplier A's machine has an annual fixed cost of $10,000 and a unit variable cost of $2.10. Supplier B's machine has an annual fixed cost of $16,000 and a unit variable cost of $3.00. How large should Mary's annual demand be in order to make Supplier B's machine the better choice? 1,000 2,000 3,000 There is no demand for which Supplier B's machine will be better 3,500

There is no demand for which Supplier B's machine will be better Both Supplier B's fixed and variable costs are higher than Supplier A's.

Which of the following is FALSE regarding repetitive processes? They use modules. They allow easy switching from one product to the other. They are the classic assembly lines. They have more structure and less flexibility than a job shop layout. They include the assembly of basically all automobiles.

They allow easy switching from one product to the other.

Which of the following products is likely to be assembled on a repetitive process line? automobiles custom personal computers custom cakes steel beer

automobiles

Harley-Davidson, because it has so many possible combinations of products, utilizes the process strategy of mass customization.

f

A product-focused process is commonly used to produce: high-volume, high-variety products. low-volume, high-variety products. high-volume, low-variety products. low-variety products at either high- or low-volume. high-volume products of either high- or low-variety.

high-volume, low-variety products.

Which of the following is not one of the strategies for improving service productivity? self-service separation automation mass customization scheduling

mass customization

Three of the four types of processes are:

process focus, repetitive focus, and product focus.

Goods made to order are typical of ________ and ________ approaches while goods made to forecast are typical of ________ and ________ approaches. process, mass customization; repetitive, product product, mass customization; repetitive, process product, process; repetitive, mass customization repetitive, product; mass customization, process repetitive, process; mass customization, product

process, mass customization; repetitive, product

Frito-Lay is to ________ focus as Harley Davidson is to ________ focus. process, repetitive product, repetitive repetitive, product process, product product, mass customization

product, repetitive

Harley Davidson: utilizes job shops to make each of its modules. uses product focused manufacturing. uses a large number of modules to build a small number of different bikes. uses work cells to feed its assembly line. All of the above are true.

uses work cells to feed its assembly line.