Chapter 7 - Study Module

"Automatic placement and withdrawal of parts and products into and from designated places in a warehouse" describes __________ technologies. A) ASRS B) AGV C) CIM

A) ASRS "Automatic placement and withdrawal of parts and products into and from designated places in a warehouse" describes ASRS technologies. ASRS (Automated Storage and Retrieval System) systems are useful because they reduce the amount of human labor involved in warehousing and storing inventory by relying on computer controlled storage and transport systems. AGVs (Automated Guided Vehicles) are focused on storage handling and warehouse retrieval systems. Computer-Integrated Manufacturing (CIM) is a manufacturing technique that integrates Computer Aided Design (CAD), Flexible Manufacturing Systems (FMS), Inventory Control, and Warehousing techniques in an effort to streamline and improve the production design, manufacturing, and product delivery process.

Which of the following transformations generally has the highest equipment utilization? A) Product-focused process B) Process-focused process C) Repetitive process

A) Product-focused process Product-focused process transformation generally has the highest equipment utilization. Product-focused processes are best when a facility wants a high-volume, low-variety production process. In order to maintain high-volume production, a company has to increase the level of equipment utilization. Process-focused processes tend to rely more on human labor and less on equipment utilization during the production process. Repetitive process facilities utilize more equipment than process-focused facilities; however, because repetitive process facilities use modules (or parts and assemblies made before final production), they tend to have lower equipment utilization than product-focused facilities.

Four types of processes are __________. A) process focus, repetitive focus, product focus, and mass customization B) modular, continuous, mass customization, and technological C) input, transformation, mass customization, and output

A) process focus, repetitive focus, product focus, and mass customization The types of processes are process focus, repetitive focus, product focus, and mass customization. Process-focused process strategies are best suited for low-volume, high-variety production orders. Process-focused strategies are implemented when businesses would benefit from organizing production and equipment around specific production activities (such as product design, welding, assembly, etc.). Process-focused operations allow for a high degree of flexibility and customization because products can move intermittently between processes. Repetitive process facilities are essentially traditional assembly line production facilities that rely on the use standardized product modules and larger volumes of products. Product-focused facilities are high-volume, low-variety production facilities. These facilities are frequently described as continuous process models because they are organized around finished products.

Strategies for improving productivity in services include __________. A) separation, self-service, automation, and scheduling B) high interaction, mass customization, just-in-time processing, lean production C) reduce inventory, reduce waste, reduce rework, reduce material costs

A) separation, self-service, automation, and scheduling Strategies for improving productivity in services are separation, self-service, automation, and scheduling. Separation, self-service, automation, and scheduling are all ways that service firms can improve customer service expectations. Reducing inventory, waste, rework, and material costs are all associated with ways that production firms can reduce costs. These strategies are not as important to most service firms. Additionally, mass customization, just-in-time processing, and lean production are also techniques that are more often associated with production-based facilities rather than service-based facilities.

Which of the following is not a strategy for improving service productivity? A) Scheduling B) Mass customization C) Automation

B) Mass customization Mass customization is not a strategy for improving service productivity. While mass customization is targeted at improving customer satisfaction it does not improve productivity due to a reliance on flexibility and customization. Automation (such as with ATM machines) and scheduling (such as increasing staff during peak service periods), on the other hand, are effective ways to improve the productivity and efficiency of the service delivery process.

High-volume, low-variety production is best suited for which of the following process strategies? A) Process-focused B) Product-focused C) Repetitive focus

B) Product-focused High-volume, low-variety production is best suited for product-focused process strategies. Product-focused production facilities are organized around the finished product (such as light bulbs, toilet paper, or potato chips). In order for a firm to effectively use this option, it must operate with high levels of standardization and quality control. Process-focused strategies are best suited for low-volume, high-variety production. Process-focused strategies are implemented when businesses would benefit from organizing production and equipment around specific activities or processes (such as product design, welding, assembly, etc.). Process-focused operations allow for a high degree of flexibility and customization because products can move intermittently between processes. Repetitive process facilities are essentially traditional assembly line production facilities that rely on the use of standardized product modules and larger volumes of products. Product-focused facilities are high-volume, low-variety production facilities. These facilities are frequently described as continuous process models because they are organized around finished products.

Which of the quadrants in the service process matrix has high labor intensity and high customization? A) Mass service B) Professional service C) Service factory

B) Professional service The professional service quadrant in the service process matrix has high labor intensity and high customization. Mass service has a low degree of customization and a high degree of labor. Examples of this business model include commercial banks that provide roughly the same products (checking, savings, loans) to all of their customers. Service factory is used to represent a business with a low degree of customization and a low degree of labor. Examples of this model would be fast food restaurants or warehouse shopping clubs that offer a fixed product line up and limited interaction with their customers. This model is frequently associated with businesses that are competing based on price.

Low-volume, high-variety production is best suited for which of the following process strategies? A) Commercial banking B) Restaurants C) Chemical processing

B) Restaurants The restaurants industry is most likely to have low equipment utilization. Restaurants use process-focused strategies due to their relatively low-volume/high-variety production process. Process-focused businesses tend to have high variable costs (due to labor rates and changing supply fees) and very low equipment utilization. Chemical processing and commercial banking businesses have a higher degree of equipment utilization because these businesses rely on increasing facility and equipment utilization in an effort to build standardization into the service delivery or production process.

A system using an automated work cell controlled by electronic signals from a common centralized computer facility is called __________. A) a computer numeric control system B) a flexible manufacturing system C) an AGV system

B) a flexible manufacturing system A system using an automated work cell controlled by electronic signals from a common centralized computer facility is called a flexible manufacturing system. Flexible manufacturing systems use centralized computer systems to automate portions of the production process. Computer numeric control systems are utilized when machines have an individual computer and memory system on the machine itself. Numeric control systems increase speed and improve accuracy. Automated guided vehicles (AGVs) are used specifically to move and handle materials during the production process.

In the mass service and service factory quadrants of the service process matrix, the operations manager could focus on all of the following except __________. A) standardization B) customization C) automation

B) customization 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. Automation and standardization are techniques that are frequently associated with mass service (i.e., banking) and service factory (i.e., fast food restaurant, airlines) business models. Customization is a technique that is more common in professional service business models (i.e., orthodontics) and service shops (i.e., heart hospitals or hospitals that specialize in a specific type of service or treatment).

In mass service and professional service, the operations manager should focus on __________. A) equipment maintenance B) human resources C) automation

B) human resources In mass service and professional service, the operations manager should focus on human resources. Human resources are particularly important to service firms because of the direct interaction between customers and employees. Equipment maintenance and automation are strategies more frequently associated with production firms.

The use of information technology to monitor and control a physical process is known as __________. A) computer-aided design B) process control C) numeric control

B) process control The use of information technology to monitor and control a physical process is known as process control. For example, the thermostat in a house is considered a process control feature because the internal temperature gauge regulates when (or if) the air-conditioning or heating unit is activated based on the house temperature. Computer-aided design is a tool used during the product design and development phase and does not focus on monitoring and controlling physical processes. Computer numeric control systems are utilized when machines have an individual computer and memory system on the machine itself. Numeric control systems increase speed and improve accuracy.

An assembly line is an example of a __________. A) product-focused process B) repetitive process C) process-focused process

B) repetitive process An assembly line is an example of a repetitive process. Assembly line manufacturing is considered a repetitive process due to the fact that specific modules (preassembled parts and components) are assembled into a final product repetitively. Process-focused and product-focused processes do not follow for a repetitive process. Instead, process-focused facilities focus on low-volume production and a high degree of product flexibility. Product-focused facilities use a low variety of inputs, but outputs will vary in size, shape and packaging. This variation reduces the effectiveness of creating repetitive modules.

One fundamental difference between a process chart and a process map is that __________. A) the process chart includes the supply chain, while the process map stays within an organization B) the process chart uses symbols, time, and distance, while the process map is more like a schematic diagram C) the process chart uses a time dimension, while a process map is not time oriented

B) the process chart uses symbols, time, and distance, while the process map is more like a schematic diagram One fundamental difference between a process chart and a process map is that the process chart uses symbols, time, and distance, while the process map is more like a schematic diagram. A process chart is a table that uses symbols and text to differentiate between production activities that add value and those that do not add value. A process map is a flowchart that outlines the activities and time frame required to transform raw materials into a finished good or service. Process charts and process maps include a time element. Neither method includes the supply chain before raw materials enter the organization.

The crossover point is that production quantity where __________. A) fixed costs of a process are equal to its variable costs B) total costs for one process equal total costs for another process C) total costs equal total revenues for a process

B) total costs for one process equal total costs for another process The crossover point is that production quantity where total costs for one process equal total costs for another process. Crossover charts are used to help compare different process options. The crossover point is determined by examining the total costs (including fixed and variable costs) of various process options.

Which one of the following technologies is used only for material handling, not actual production or assembly? A) CIM B) FMS C) AGV

C) AGV AGV technology is used only for material handling, not actual production or assembly. Automated guided vehicles (AGVs) are used specifically to move and handle materials during the production process. FMS (Flexible Manufacturing System) and CIM (Computer Integrated Manufacturing) technologies are used during the production process and do not specifically focus on material handling.

Which of the quadrants in the service process matrix has high labor intensity and low customization? A) Professional service B) Service factory C) Mass service

C) Mass service The mass service quadrant in the service process matrix has high labor intensity and low customization. Examples of this business model include commercial banks that provide roughly the same products (checking, savings, loans) to all of their customers. Service factory is used to represent a business with a low degree of customization and a low degree of labor. Examples of this model would be fast food restaurants or warehouse shopping clubs that offer a fixed product line up and limited interaction with their customers. This model is frequently associated with businesses that are competing based on price. The professional service quadrant has both high labor intensity and high customization.

Low-volume, high-variety production is best suited for which of the following process strategies? A) Product focused B) Repetitive focus C) Process focused

C) Process focused Low-volume, high variety production is best suited for process-focused strategies. Process-focused strategies are implemented when businesses would benefit from organizing production and equipment around specific production activities (such as product design, welding, assembly, etc.). Process-focused operations allow for a high degree of flexibility and customization because products can move intermittently between processes. Repetitive process facilities are essentially traditional assembly line production facilities that rely on the use of standardized product modules and larger volumes of products. Product-focused facilities are high-volume, low-variety production facilities. These facilities are frequently described as continuous process models because they are organized around finished products.

This type of process-analysis tool is a schematic of the movement of material, product, or people. A) Process charts B) Value stream mapping C) Process mapping

C) Process mapping The process mapping process-analysis tool is a schematic of the movement of material, product, or people. Process mapping, or time-function mapping, is a particular type of flowchart that adds time intervals to the horizontal axis. This helps managers identify redundant work processes, extra steps, or potential issues that could lead to production delays. Process charts are charts that use symbols, time, and distance to provide a structured way to record and monitor the activities that make up a process. This process helps us determine which components of a job are value added and which components add waste. Value-stream mapping examines the entire supply chain including suppliers, production process, and customers to identify value-added activities. Value-stream mapping is used to identify all of the activities and decisions that help a business make money.

Which of the following technologies would enable a cashier to scan the entire contents of a shopping cart in seconds? A) AGV B) ASRS C) RFID

C) RFID RFID technology would enable a cashier to scan the entire contents of a shopping cart in seconds. Radio Frequency Identification, or RFID, is a type of technology that has tremendous utility in terms of monitoring and tracking almost anything that moves - including groceries or any other good that can be purchased. ASRSs (Automated Storage and Retrieval Systems) and AGVs (Automated Guided Vehicles) are focused on storage handling and warehouse retrieval systems.

Which of the following industries is most likely to have low equipment utilization? A) Chemical processing B) Commercial banking C) Restaurants

C) Restaurants The restaurants industry is most likely to have low equipment utilization. Restaurants use process-focused strategies due to their relatively low-volume/high-variety production process. Process-focused businesses tend to have high variable costs (due to labor rates and changing supply fees) and very low equipment utilization. Chemical processing and commercial banking businesses have a higher degree of equipment utilization because these businesses rely on increasing facility and equipment utilization in an effort to build standardization into the service delivery or production process.

Of the five tools used for process analysis and design, which one focuses on the customer interaction? A) Flowchart B) Time-function mapping C) Service blueprinting

C) Service blueprinting Of the five tools used for process analysis and design, service blueprinting focuses on the customer interaction. Service blueprinting is a process-analysis technique that examines the interaction between the service provider and the customer. This process can help a business understand which aspects of service delivery are under the control of the business and which aspects of the service are under the control of the customer. For example, when a customer purchases self-serve gas, the business is under control of the facilities, the gas reserve for purchase, and the equipment. The customer is responsible for using the equipment and filling the gas tank to the desired level. Flowcharts are drawings that represent the movement of materials, products, or people through a business. Time-function mapping is a particular type of flowchart that adds time intervals to the horizontal axis. This helps managers identify redundant work processes, extra steps, or potential issues that could lead to production delays.

A job shop is an example of __________. A) a repetitive process B) a specialized process C) an intermittent process

C) an intermittent process A job shop is an example of an intermittent process. The term intermittent process is used because these facilities are designed to handle low-volume/high-variety production runs with frequent changes based on customer orders. Thus, each job is essentially a different product line. Repetitive processes are frequently referred to as "continuous process" jobs because they are designed to handle high-volume/medium-variety production runs with little change over time. Specialized processes are most similar to mass customization, where there is high variety and high volume. Mass customization is a difficult process to implement, but it can result in success because it helps a company meet the demands of the end consumer.

Service blueprinting __________. A) determines the best time for each step in the process B) provides the basis to understand how to negotiate with suppliers C) focuses on the provider's interaction with the customer

C) focuses on the provider's interaction with the customer Service blueprinting focuses on the provider's interaction with the customer. Service blueprinting is a process-analysis technique that examines the interaction between the service provider and the customer. This process can help a business understand which aspects of service delivery are under the control of the business and which aspects of the service are under the control of the customer. For example, when a customer purchases self-serve gas the business is under control of the facilities, the gas reserve for purchase, and the equipment. The customer is responsible for using the equipment and filling the gas tank to the desired level. Time-function mapping and process charts are the process-analysis techniques that include a particular focus on time intervals. None of the process analysis techniques are particularly useful for negotiating with suppliers.

Smooth FM Radio uses a __________ approach when it mixes pre-recorded local segments with its national music blocks. A) repetitive focus B) product focus C) mass customization

C) mass customization Smooth FM Radio uses a mass customization approach when it mixes pre-recorded local segments with its national music blocks. Mass customization is the term used to describe the process where a business tries to move to low-cost production (or service), but still meet the unique expectations of customers. In this case, the radio station is using mass customization by relying on the low-cost programming of national music blocks and mixing in pre-recorded local segments to meet the unique expectations of local listeners.

In many applications, human quality inspectors can be replaced effectively by __________. A) automated storage and retrieval systems B) FMSs C) vision systems

C) vision systems In many applications, human quality inspectors can be replaced effectively by vision systems. Vision systems combine cameras and computer technology to visually inspect products during the manufacturing process. Flexible Manufacturing Systems, or FMSs, is a computer-based manufacturing system that relies on an automated work cell that is controlled via computer programs. Automated Storage and Retrieval Systems rely on computer based systems to place, store, and retrieve items in a warehouse. While both FMSs and ARSRs techniques rely on computers, neither approach is focused on visual inspection and quality control.