Operations Decision Making Chapter 7
8) The advantage of additive manufacturing includes supporting: A) innovative product design. B) ASRS and AGVs. C) information numeric control. D) flexible manufacturing systems (FMS). E) all of these.
A) innovative product design.
27) Which of the following phrases best describes process focus? A) low volume, high variety B) Finished goods are usually made to a forecast and stored. C) Operators are less broadly skilled. D) high fixed costs, low variable costs E) low inventory
A) low volume, high variety
18) One of the similarities between product focus and mass-customization is: A) the volume of outputs. B) the use of modules. C) many departments and many routings. D) the variety of outputs. E) All of these are similarities.
A) the volume of outputs.
13) A product-focused process is commonly used to produce: A) high-volume, high-variety products. B) low-volume, high-variety products. C) high-volume, low-variety products. D) low-variety products at either high- or low-volume. E) high-volume products of either high- or low-variety.
C) high-volume, low-variety products.
11) Three of the four types of processes are: A) goods, services, and hybrids. B) manual, automated, and service. C) process focus, repetitive focus, and product focus. D) modular, continuous, and technological. E) input, transformation, and output.
C) process focus, repetitive focus, and product focus.
9) The advantage of additive manufacturing includes supporting: A) innovative product design. B) minimal custom tooling. C) low inventory. D) speed to market. E) all of these.
E) all of these.
7) 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) automation. B) standardization. C) tight quality control. D) removing some services. E) customization.
E) customization.
5) Which of the following is NOT one of the strategies for improving service productivity? A) self-service B) automation C) scheduling D) separation E) mass customization
E) mass customization
22) Align Technology uses a ________ approach to produce clear plastic removable aligners. A) mass customization B) product focus C) process focus D) repetitive focus E) crossover
A) mass customization
17) Arnold Palmer Hospital uses which focus? A) process B) repetitive C) product D) mass customization E) A and D
A) process
10) 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) IT oversight.
A) process control.
21) Goods made to order are typical of ________ and ________ approaches while goods made to forecast are typical of ________ and ________ approaches. A) process, mass customization; repetitive, product B) product, mass customization; repetitive, process C) product, process; repetitive, mass customization D) repetitive, product; mass customization, process E) repetitive, process; mass customization, product
A) process, mass customization; repetitive, product
10) What is a drawing of the movement of material, product, or people? A) flowchart B) process chart C) service blueprint D) process map E) vision system
A. flowchart
30) 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 $7.50 per unit. What is the crossover point between process A and process B? A) 50 units B) 200 units C) 250 units D) $5,000 E) $9,500
B) 200 units
16) An assembly line is an example of a: A) product-focused process. B) process-focused process. C) repetitive process. D) line process. E) specialized process.
C) repetitive process.
9) 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) uses the schematic of a house to diagram a service process.
D) focuses on the provider's interaction with the customer.
26) Which of the following phrases best describes product focus? A) low volume, high variety B) Finished goods are usually made to order. C) Processes are designed to perform a wide variety of activities. D) high fixed costs, low variable costs E) high inventory
D) high fixed costs, low variable costs
6) In mass service and professional service, the operations manager should focus extensively on: A) automation. B) equipment maintenance. C) sophisticated scheduling. D) human resources. E) cost-cutting initiatives.
D) human resources.
10) A job shop is an example of a(n): A) repetitive process. B) continuous process. C) line process. D) intermittent process. E) specialized process.
D) intermittent process.
23) Which of the following companies use a mass customization approach? A) Dell B) Align Technology C) Frito-Lay D) Arnold Palmer hospital E) A and B
E) A and B
19) Frito-Lay is to ________ focus as Dell Computer is to ________ focus. A) process, repetitive B) product, repetitive C) repetitive, product D) process, product E) product, mass customization
E) product, mass customization
12) Which of the following industries is most likely to have low equipment utilization? A) auto manufacturing B) commercial baking C) television manufacturing D) steel manufacturing E) restaurants
E) restaurants
44) What is mass customization?
a, essay question-44
43) How are modules useful in manufacturing processes?
a. essay question-43
48) Big John's Manufacturing currently produces its lead product on a machine that has a variable cost of $3.50 per unit, and fixed costs of $62,000. Big John is considering purchasing a new machine that would drop the variable cost to $1.90 per unit, but has fixed costs of $150,000. What is the crossover point between the two machines?
a. essay question-48
35) Kirstin is thinking about opening an Italian restaurant and needs to buy a dough maker. Machine A has fixed costs of $300 and variable costs of $1/pound. Machine B has fixed costs of $1000 and variable costs of $0.30/pound. What is the crossover point? For 500 pounds of dough, which machine is better? A) 1000; Machine A B) 1000; Machine B C) 538; Machine A D) 538; Machine B E) 1857; Machine A
A) 1000; Machine A
34) Which of the following businesses uses a product-focused approach? A) Shouldice Hospital B) fine-dining restaurants C) Arnold Palmer Hospital D) Spotify E) Ping Inc.
A) Shouldice Hospital
15) Which of the following products is likely to be assembled on a repetitive process line? A) automobiles B) custom personal computers C) custom cakes D) steel E) beer
A) automobiles
25) Which of the following is FALSE regarding repetitive processes? A) They use modules. B) They allow easy switching from one product to the other. C) They are the classic assembly lines. D) They have more structure and less flexibility than a job shop layout. E) They include the assembly of basically all automobiles.
B) They allow easy switching from one product to the other.
14) Which one of the following products is most likely made in a job shop environment? A) rolls of newsprint B) custom furniture C) television sets D) cigarettes E) canned vegetables
B) custom furniture
11) Which of the following is TRUE? A) Service blueprinting focuses on the provider's interaction with its supplier. B) The main purpose of flowcharts is to identify and eliminate waste. C) Value-stream mapping is a variation of time-function mapping. D) A process chart is a flowchart with time added on the horizontal axis. E) Time-function mapping extends the value analysis back to suppliers.
C) Value-stream mapping is a variation of time-function mapping.
2) Which of the following is TRUE regarding the concept of flexibility? A) It is the ability to respond with little penalty in time, cost, or customer value. B) It may be accomplished with digitally controlled equipment. C) It may involve modular or movable equipment. D) All of these are true. E) None of these is true
D) All of these are true.
20) High fixed costs and low variable costs are typical of which approach? A) product B) process C) mass customization D) repetitive E) A and C
E) A and C
29) A quasi-custom product: A) gets its apparent customization from the combinations available from a small number of modules. B) is often the output of repetitive focus facilities. C) is a valid description of a fast-food sandwich. D) only applies in services. E) All but D are true.
E) All but D are true.
7) Value-stream mapping: A) is a variation of 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 these are true.
E) All of these are true.
10) Provide an example of the focus strategy for improving service productivity.
a. essay question-10
11) Provide an example of the postponement strategy for improving service productivity.
a. essay question-11
12) A(n) ________ uses symbols to analyze the movement of people or material.
a. essay question-12
12) Identify the techniques for improving service productivity. For any two techniques, describe in a short paragraph, and include an example.
a. essay question-12
13) A special form of time-function mapping, which goes beyond the organization into its supply chain, is ________.
a. essay question-13
46) In an affluent society, how do we produce a wide number of options for products at low cost?
a. essay question-46
56) Bridget is considering how to get to work over the summer. She has two options. Option A is to buy a seasonal bus pass for $100. Option B is to pay $1.25 for each ride. Identify the fixed and variable costs for each option. If she has to ride both to and from work, how many days of work would it take for the seasonal pass to cost the same amount as Option B?
a. essay question-56
57) 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 $0.10/candle. Option B uses hand labor with fixed costs of $10,000 and variable costs of $0.50/candle. If demand for Karla's candles is 45,000, which option should she pick?
a. essay question-57
58) 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?
a. essay question-58
9) The strategy for improving service productivity that customizes at delivery, rather than at production, is ________.
a. essay question-9
1) A firm's process strategy is its approach to transforming resources into goods and services. a. true b. false
a. true
Section 3 1) A value-stream map includes both (1) inventory quantities, and (2) time on the horizontal axis. a. true b. false
a. true
Section 5 1) Process control is the use of information technology to monitor and control a physical process. a. true b. false
a. true
2) An example of the postponement strategy for improving service productivity is having the customer wait until you have sufficient time to serve the customer. a. true b. false
b. false
2) Intermittent processes are organized around processes to facilitate high-volume, low-variety production a. true b. false
b. false
2) Time-function mapping is a process analysis technique that focuses on the customer and the provider's interaction with the customer. a. true b. false
b. false
2) One use of camera-and-computer-based vision systems is to replace humans doing tedious and error-prone visual inspection activities. a. true b. false
a. true
3) Activity times should not be included in a service blueprint. a. true b. false
b. false
3) Additive manufacturing is often referred to as computer numerical control. a. true b. false
b. false
3) In process-focused facilities, utilization of facilities is high. a. true b. false
b. false
4) Which of the following are all strategies for improving productivity in services? 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) process focus, repetitive focus, product focus, and mass customization focus
A) separation, self-service, automation, and scheduling
28) Which of the following characteristics best describes repetitive focus? A) It uses sophisticated scheduling to accommodate custom orders. B) Its output is a standardized product produced from modules. C) Operators are broadly skilled. D) It is widely used for the manufacture of steel. E) low volume, high variety
B) Its output is a standardized product produced from modules.
33) Product-focused processes: A) allow more customization, but are not very efficient. B) tend to have long, continuous production runs. C) are processes that accommodate a variety of products or customer groups. D) apply only to service firms, not to manufacturers. E) are profitable because customers demand flexibility, not specialization.
B) tend to have long, continuous production runs.
31) 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. 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) Process Y is cheaper than process X at all volumes.
8) In most banks, customers need to go to different service areas for opening accounts, applying for loans, and making deposits. This service strategy is an example of: A) automation. B) modules. C) separation. D) self-service. E) focus.
C) separation.
8) One fundamental difference between a process chart and a flowchart is that: A) the process chart adds a time dimension to the horizontal axis, while a flowchart is not time-oriented. B) the process chart includes the supply chain, while the flowchart stays within an organization. C) the process chart is more like a table, while the flowchart 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 flowchart does not deal directly with the customer. E) None of these is true, because a process chart and a flowchart are the same thing.
C) the process chart is more like a table, while the flowchart is more like a schematic diagram.
7) 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 these are true. E) None of these is true.
D) All of these are true.
32) 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) total costs for one process equal total costs for another process.
24) Harley Davidson: A) utilizes job shops to make each of its modules. B) uses product focused manufacturing. C) uses a large number of modules to build a small number of different bikes. D) uses work cells to feed its assembly line. E) All of these are true.
D) uses work cells to feed its assembly line.
14) ________ is a process analysis technique that focuses on the customer and the provider's interaction with the customer.
a. essay question-14
15) Describe value-stream mapping. Explain how it is different from process mapping.
a. essay question-15
16) Identify the five major tools of process analysis and design. Describe them in a sentence or two each.
a. essay question-16
3) ________ involves the ability to respond with little penalty in time, cost, or customer value.
a. essay question-3
36) An organization's approach to transforming resources into goods and services is called its ________.
a. essay question-36
37) The process strategy that is organized around processes to facilitate low-volume, high-variety processes is called a(n) ________.
a. essay question-37
38) ________ is a process strategy based on a product-oriented production process that uses modules.
a. essay question-38
39) ________ is a rapid, low-cost production process that caters to constantly changing unique customer desires.
a. essay question-39
4) Why do modern operations managers look for flexibility in their equipment?
a. essay question-4
40) ________ represent an organization's attempt to gain increased efficiency through specialization, which can include, for example, concentrating on certain classes of customers.
a. essay question-40
41) Why is Harley-Davidson identified as a repetitive manufacturer, not a mass customizer?
a. essay question-41
42) What is the link between focused processes and specialization? What kinds of focus are possible?
a. essay question-42
45) Identify the four basic process strategies, and describe them in a complete sentence or two each.
a. essay question-45
47) A product is currently made in a process-focused shop, where fixed costs are $9,000 per year and variable costs are $50 per unit. The firm is considering a fundamental shift in process, to repetitive manufacturing. The new process would have fixed costs of $90,000, and variable costs of $10. What is the crossover point for these processes? For what range of outputs is each process appropriate?
a. essay question-47
49) The local convenience store makes personal sized pizzas. Currently, its process makes complete pizzas, fully cooked, for the customer. This process has a fixed cost of $18,000, and a variable cost of $1.85 per pizza. The owner is considering a different process that can make pizzas in two ways: completely cooked (as before), or partially cooked and then flash frozen for the customer to finish heating at home. This alternate process has a fixed cost of $24,000, but a lower variable cost (because much less energy is used in baking) of $1.05 per pizza. (a) What is the crossover point between the existing process and the proposed process? (b) If the owner expects to sell 7,000 pizzas, should he get the new oven?
a. essay question-49
50) A firm is about to undertake the manufacture of a product, and it is weighing the process configuration options. There are two intermittent processes under consideration, as well as a repetitive focus. The smaller intermittent process has fixed costs of $4,300 per month and variable costs of $9 per unit. The larger intermittent process has fixed costs of $12,000 per month and variable costs of $2 per unit. A repetitive focus plant has fixed costs of $30,000 per month and variable costs of $0.80 per unit. (a) At what output does the large intermittent process become cheaper than the small one? (b) At what output does the repetitive process become cheaper than the larger intermittent process?
a. essay question-50
51) An organization is considering three process configuration options. There are two different intermittent processes, as well as a repetitive focus. The smaller intermittent process has fixed costs of $3,000 per month and variable costs of $10 per unit. The larger intermittent process has fixed costs of $12,000 per month and variable costs of $2 per unit. A repetitive focus plant has fixed costs of $50,000 per month and variable costs of $1 per unit. (a) If the company produced 20,000 units, what would be its cost under each of the three choices? (b) Which process offers the lowest cost to produce 40,000 units? What is that cost?
a. essay question-51
52) A product is currently made in a process-focused shop, where fixed costs are $8,000 per year and variable cost is $40 per unit. The firm currently sells 200 units of the product at $200 per unit. A manager is considering a repetitive focus to lower costs (and lower prices, thus raising demand). The costs of this proposed shop are fixed costs = $14,000 per year and variable cost = $10 per unit. If a price of $120 will allow 400 units to be sold, what profit (or loss) can this proposed new process expect? Do you anticipate that the manager will want to change the process? Explain
a. essay question-52
53) 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 $10 per computer. What is the crossover point?
a. essay question-53
54) A non-profit organization is planning a raffle to raise money. It has two options for tickets. The first option is to do the tickets by hand, with fixed costs of $50 and variable costs of $.05 per ticket. The second option is to outsource production. This would result in fixed costs of $500 and variable costs of $.01. If the organization plans to sell 10,000 tickets which option should it choose?
a. essay question-54
55) Kirstin is thinking about opening a Chinese restaurant and needs to buy a rice cooker. Machine A has fixed costs of $100 and variable costs of $1/pound. Machine B has fixed costs of $500 and variable costs of $0.10/pound. If Kirstin plans to sell 1000 pounds of rice, which machine should she choose? What is the crossover point?
a. essay question-55
3) Operations with low labor intensity present great opportunities for innovations in process technology and scheduling. a. true b. false
a. true
4) The typical full-service restaurant uses a process-focused process. a. true b. false
a. true
5) Automated storage and retrieval systems are commonly used in distribution facilities of retailers. a. true b. false
a. true
5) Time-function mapping is a flowchart with time added to the horizontal axis. a. true b. false
a. true
6) Flexible manufacturing systems, because of easily changed control programs, are able to perform such tasks as manufacturing one-of-a-kind parts economically. a. true b. false
a. true
6) The assembly line is a classic example of a repetitive process. a. true b. false
a. true
7) The tool that calculates which process has the lowest cost at any specified production volume is a crossover chart. a. true b. false
a. true
8) The term focused processes refers to the quest for increased efficiency, whether in goods or services, that results from specialization. a. true b. false
a. true
Section 2 1) When selecting new equipment and technology, decision makers look for flexibility—the ability to respond with little penalty in time, cost, or customer value. a. true b. false
a. true
4) A flowchart with the addition of a time axis becomes a process chart. a. true b. false
b. false
4) Recent events suggest that additive manufacturing is just a fad. a. true b. false
b. false
5) Harley-Davidson, because it has so many possible combinations of products, utilizes the process strategy of mass customization. a. true b. false
b. false
6) Flowcharts use distance, but not time, to show the movement of material, product, or people through a process. a. true b. false
b. false
9) Fast-food restaurants usually adopt a product-focused strategy for their processes. a. true b. false
b. false
Section 4 1) Professional services typically require low levels of labor intensity. a. true b. false
b. false