OM-7S, Chapter 7 Process Strategy, Ops Exam 2, Productions & Operations MGMT Chapter 6- Managing Quality

Modular Design

1. A design in which parts or components of a product are subdivided into modules that are easily interchanged or replaced. 2. Adds flexibility to both production and marketing 3. Improved ability to satisfy customer requirements

House of Quality

1. A graphic technique for defining the relationship between customer desires and product (or service) 2. Only by defining this relationship in a rigorous way can managers design products and processes with features desired by customers.

Robust Design

1. Designed so that small variations in production or assembly do not adversely affect the product. 2. A design that can be produced to requirements even with unfavorable conditions in the production process.

House of Quality Steps

1. Identify customer wants 2. Identify how the good/service will satisfy customer wants. 3. Relate customer wants to product hows. 4. Identify the relationships between the firms hows. 5. Develop importance ratings. 6. evaluate competing products. 7. Determine the desirable technical attributes, your performance, and the competitor's performance against these attributes.

The three process regions in a process-chain-network diagram are

1. The direct interaction region 2. The surrogate Interaction 3. The independent processing region All three have similar operating issues- quality control, facility location and layout, job design, inventory, etc. but the appropriate way of handling these issues differs across regions.

Quality Function Deployment (QFD)

1. refers to both (1) determining what will satisfy the customer and (2) translating those customer desires into the target design 2. Used early in the design process to help determine what will satisfy the customer and where to deploy quality efforts.

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

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

Arnold Palmer Hospital uses which focus? A) process B) repetitive C) product D) mass customization E) A and D

A

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 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? A) 50 units B) 200 units C) $2,500 D) $5,000 E) $9,500

A

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 the above

A

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

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

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

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

Frito-Lay is to ________ focus as Harley Davidson is to ________ focus. A) process, repetitive B) product, repetitive C) repetitive, product D) process, product E) product, mass customization

B

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

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

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

"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

0) 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

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

A system using an automated work cell controlled by electronic signals from a common centralized computer facility is called: A) an adaptive control system. B) robotics. C) a flexible manufacturing system. D) an automatic guided vehicle (AGV) system. E) a manufacturing cell.

C

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

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

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

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

Delay Customization

Customize late in the process. Example, hair salon the shampoo and conditioning are done first and the hair cut/color (customization) is done last. Restaurants- how would you like it cooked?

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

Advances in technology: A) have impacted the manufacturing sector only. B) have had only a limited impact on services. C) have failed to change the level of customer interaction with an organization. D) have had a dramatic impact on customer interaction with services and with products. E) have dramatically changed health care, but have not changed retailing.

D

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

One of the similarities between process 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 the above are similarities.

D

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

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

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

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 the above are true. E) None of the above is true.

D

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

Which of the following provides automatic placement and withdrawal of parts and products into and from designated places in a warehouse? A) AGV B) CAD/CAM C) CIM D) ASRS E) FMS

D

Which of the following technologies could 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

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

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

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

Process redesign: A) is the fundamental rethinking of business processes. B) is sometimes called process reengineering. C) tries to bring about dramatic improvements in performance. D) often focuses on activities that cross functional lines.

E

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 the above are true.

E

What have restaurants such as Steakhouses and Stacked Restaurants used to replace their traditional paper menus? A) spoken descriptions B) singing descriptions C) menus painted on the walls D) index cards containing a picture of each item E) iPad menus

E

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

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

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

he advantage of additive manufacturing includes supporting: A) innovative product design. B) minimal custom tooling. C) low inventory. D) speed to market. E) all of the above

E

1) Production technology has had a major impact on services, but as yet there has been little reduction in service labor requirements.

F

1) Successful process redesign focuses on departmental areas where small, continuous improvements can be made.

F

Limit the Options

Improves efficiency and ability to meet customer expectations

Which of the following is NOT a valid principle of bottleneck​ management? A. Lost time at the bottleneck represents lost capacity for the whole system. B. Increasing the capacity of a​ non-bottleneck station is a mirage. C. Release work orders to the system at the pace set by the​ bottleneck's capacity. D. Increasing the capacity of a​ non-bottleneck station increases the capacity for the whole system.

Increasing the capacity of a​ non-bottleneck station increases the capacity for the whole system.

What is the typical goal of applying EMV to capacity​ decisions? A. Identify the most likely state of nature. B. Maximize the expected value of the alternatives. C. Identify the alternative with the highest potential payoff. D. Identify the least risky alternative.

Maximize the expected value of the alternatives.

Which of the following is NOT a limitation of the net present value​ approach? A. The assumption is that we know future interest​ rates, which we do not. B. Investments with the same net present value may have different cash flows. C. Payments are assumed to be made at the beginning of the​ period, which is not always the case. D. Investments with the same net present value may have significantly different projected lives and different salvage values.

Payments are assumed to be made at the beginning of the​ period, which is not always the case.

Which of the following is the fourth step in the theory of​ constraints? A. When one set of constraints is​ overcome, go back and identify new constraints. B. Reduce the effects of the constraints by offloading work or by expanding capability. C. Focus resources on accomplishing the plan. D. Develop a plan for overcoming the identified constraints.

Reduce the effects of the constraints by offloading work or by expanding capability.

CAD/CAM

The combination is a powerful tool for manufactouring effeciency. Fewer defective unites are produced, translating into less re-work and lower inventory.

moment of truth

The moment that an employee interacts with a customer related to a business activity.

Automation

The use of technology to ease human labor or to extend the mental or physical capabilities of humans.

value analysis

a review of successful products that takes place during the production process. Seeks improvements that lead to either a better product, or a product made more economically, or a product with less envirnmental impact.

Process chain

a sequence of steps that accomplishes an identifiable purpose (of providing value to process participants)

virtual reality

a visual form of communication in which images substitute for reality and typically allow the user to respond interactively. The roots of this in operations are in CAD. Once design information is in a CAD system, it is also in electronic digital form for other uses.

Efficiency is given by A. effective capacity divided by actual output. B. actual output divided by effective capacity. C. actual output divided by design capacity. D. design capacity divided by utilization.

actual output divided by effective capacity.

Process Chain Network (PCN) value

aid in positioning and designing processes that can achieve strategic objectives.

An investment that generates a series of uniform and equal cash amounts is referred as A. net present value. B. an annuity. C. future value. D. cash flow.

an annuity.

3-D Printing

an extension of CAD that builds prototypes and small lots. This technology is particularly useful for prototype development and small lot productions.

What is the time of the slowest workstation in a production​ system? A. bottleneck time B. utilization C. throughput time D. effective capacity

bottleneck time

What is a means of determining throughput capacity of workstations or an entire production​ system? A. capacity analysis B. throughput analysis C. effective capacity D. theory of constraints

capacity analysis

time-based competition

competition based on time; rapidly developing products and moving them to market.

The difference between selling price and variable cost is called A. the bottleneck. B. fixed cost. C. the​ break-even point. D. contribution.

contribution.

Alliances

cooperative agreements that allow firms to remain independent, but pursue strategies consistent with their individual missions.

What is the theoretical maximum output of a system in a given period under ideal​ conditions? A. utilization B. effective capacity C. efficiency D. design capacity

design capacity

In​ manufacturing, excess capacity can be used to A. do more​ setups, lengthen production​ runs, and drive down inventory costs. B. do fewer​ setups, shorten production​ runs, and drive down inventory costs. C. do fewer​ setups, lengthen production​ runs, and drive down inventory costs. D. do more​ setups, shorten production​ runs, and drive down inventory costs.

do more​ setups, shorten production​ runs, and drive down inventory costs.

Additive manufacturing can use which of the following materials? A) plastics B) ceramics C) living cells D) chocolate E) all of the above

e

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

What does EMV stand​ for? A. expected monetary value B. expected maintenance volume C. enterprise management valuation D. expected machine valuation

expected monetary value

joint venture

firms establishing joint owner-ship to pursue new products or markets. This will form a new entity.

Process-Chain-Network (PCN) Analysis

focuses on the ways in which processes can be designed to optimize interaction between firms and their customers.

When using EMV for capacity planning​ situations, the state of nature usually is A. level of inflation or interest rates. B. future demand or market favorability. C. wage rates or equipment costs. D. average temperature or average rainfall.

future demand or market favorability.

When making investment decisions using the net present value​ method, managers need to choose the investments with A. lower costs. B. higher net present values. C. higher revenues. D. lower net present values.

higher net present values.

Concurrent Engineering

implies speedier product development through simultaneous performance of the various stages of product development

Surrogate Interaction region

includes process steps in which one participant is action on another participants resources, such as their information, materials, or tech. This occurs when the sandwich supplier is making sandwiches in the restaurant kitchen or alternatively when the customer has access to buffet ingredients and assembles the sandwich himself. Direct interaction is limited.

direct interaction

includes process steps that involve interaction between participants. For example, a sandwich buyer directly interacts with employees of a sandwich store.

Which of the following approaches may use subcontracting to accommodate excess​ demand? A. leading demand with a​ one-step expansion B. Subcontracting should never be used to accommodate excess demand. C. leading demand with incremental expansion D. lagging demand with incremental expansion

lagging demand with incremental expansion

Which of the following approaches makes new capacity a larger increase at the beginning of the​ period? A. lagging demand with incremental expansion B. attempts to have an average capacity that straddles demand with incremental expansion C. leading demand with a​ one-step expansion D. leading demand with incremental expansion

leading demand with a​ one-step expansion

The most aggressive and risky approach to capacity planning is A. leading demand with​ one-step expansion. B. attempts to have an average capacity that straddles demand with incremental expansion. C. lagging demand with incremental expansion. D. leading demand with incremental expansion.

leading demand with​ one-step expansion.

What is a means of determining the discounted value of a series of future cash​ receipts? A. variable cost B. cash flow C. net present value D. future value

net present value

​Break-even analysis for the​ single-product case requires an estimation of fixed​ costs, variable​ costs, and A. the percent of total dollar sales for each product. B. ​price, along with the percent of total dollar sales for each product. C. price. D. revenue.

revenue.

Which of the following is a possible option to employ when demand exceeds​ capacity? A. schedule long lead times B. temporarily​ lay-off workers C. lower prices D. increase advertising expenditures

schedule long lead times

Independent processing region

steps in which the supplier and/or the customer is acting on resources where each has maximum control. Most make to stock production fits in this region. Firm that assembles all those prepackaged sandwiches available in vending machines and convenient stores. Customer making sandwich at home.

Which of the following capacity adjustment options applies to​ intermediate-range planning? A. schedule personnel B. allocate machinery C. add long lead time equipment D. subcontract

subcontract

The multiproduct case of determining the​ break-even point in dollars weights what by each​ product's proportion of​ sales? A. the variable cost of each product B. the fixed cost attributable to each product C. the contribution of each product D. the selling price of each product

the contribution of each product

Which of the following is a requirement to be able to compute expected monetary​ value? A. the probability of each state of nature is known B. the probability of each decision alternative is known C. each state of nature is equally likely to occur D. each decision alternative needs at least two states of nature

the probability of each state of nature is known

Modularization

the process of breaking down a program into modules

computer-aided design (CAD)

the use of computers in the design of products

computer-aided manufacturing (CAM)

the use of computers to plan and control manufacturing processes.

The idea of Quality Function Deployment (QFD) is?

to capture a rich understanding of customer wants and to identify alternative process solutions. This information is then integrated into the evolving product design.

What is a means of finding the​ point, in dollars and​ units, at which costs equal​ revenues? A. ​break-even analysis B. ​zero-sum analysis C. bottleneck analysis D. capacity analysis

​break-even analysis