BUS5 140 Chapter 7

A tortilla chip workstation produces 1,000 chips in 20 seconds. What is its bottleneck time? _____

.02 seconds per chip

A factory produces 1000 units a month. If design capacity is 3000 and efficiency is 50%, what are utilization and effective capacity? ______

33.3%; 2000

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

Effective capacity is the: _____

Capacity a firm expects to achieve given the current operating constraints.

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

Customization

Utilization will always be lower than efficiency because:

Effective capacity is less than design capacity.

Activity times should not be included in a service blueprint.

False

An example of the postponement strategy for improving service productivity is having the customer wait until you have sufficient time to serve the customer.

False

Efficiency is actual output as a percent of design capacity.

False

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

False

The bottleneck time is always at least as long as the throughput time.

False

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

False

To find the throughout time with simultaneous processes, compete the time overall the paths and choose the shortest path through the system.

False

A product-focused process is commonly used to produce:

High-volume, low-variety products.

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? _____

Process Y is cheaper than process X at all volumes.

Goods made to order are typical of ________ and ________ approaches while goods made to forecast are typical of ________ and ________ approaches. _____

Process, mass customization; repetitive, product

Frito-Lay is to ________ focus as Harley Davidson is to ________ focus. _____

Product, repetitive

Design capacity is the theoretical maximum output of a system in a given period under ideal conditions.

True

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

True

Service blueprinting is a process analysis technique that focuses on the customer and the provider's interaction with the customer.

True