Test 1 (Final Study)
A batch process is less flexible than an assembly line and less efficient than a job shop
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A manufacturing process can be best at everything
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A mechanism that identifies a firm's targeted customers and sets time frames and performance objectives for the business is called a mission statement.
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Appraisal costs cannot occur when a company has NOT produced any defective items.
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As long as each functional area in a company operates efficiently, their strategies can be very different.
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Capability variety is the difference on how customers view an identical service outcome. What some customers might view as economical and thrifty others might view as cheap and poor value.
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For a perfectly centered process with normally distributed output, Six Sigma process quality translate to around 2 defects per trillion units produced.
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ISO 9001:2000 cannot be used by both manufacturing and service companies.
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If a contact lens has a scratch on it, the manufacturer classifies it as defective. This is an example of a continuous variable.
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In a service blueprint, the line of internal interaction falls between the customer and the onstage service provider.
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In general, operations management activities are not information and decision intensive.
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In the Zero Defects view of the total cost of quality, the minimum value of the total cost curve is closer to the y axis (the cost axis) than it is in the traditional view.
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In the internally supportive stage of business strategy alignment, management merely attempts to minimize negative potential in the operations and supply chain area.
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Money spent training an employee how to do the job mistake-free is an example of an appraisal cost.
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Most organizations cannot function as part of a larger supply chain.
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Most people developing process maps for the first time fail to put in sufficient detail.
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Producer's risk rises as consumer's risk rises.
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Productivity is measured as the ratio of inputs to outputs.
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Relationship Management is not the component of a supply chain that is the most susceptible to breakdown.
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Some organizations do not have an operations function.
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The logistics function of a supply chain would include Marketing and Engineering as its key inter-organizational participants.
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The magnitude of changes created by a continuous improvement program is generally larger than those created by a business process reengineering program.
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The phrase "closing the loop" means that strengths and weaknesses, as well as core competencies, are fed back into the mission statement.
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The transformation process can be used to describe the production of ONLY intangible services.
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Volume flexibility is the term used to describe the ability of a producer to produce a dazzling array of products or services.
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With everything else held constant, a sampling plan with c=1 will have a lower producer's risk than a sampling plan with c=2.
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first letter of the customer's last name is an example of applying group technology to a service operation.
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"I've never seen flavored marshmallows this size before!" Alice squealed as she emptied the shelves at the local grocery store. The rest of the shoppers would have to make do with the other seventy bags of miniature and standard-size marshmallows during this winter's hot chocolate festival. For Alice, the jumbo size feature is an order winner.
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A business is defined by its structural and infrastructural elements.
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A job shop manufacturing process is better suited to make a variety of products than a continuous flow process.
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A laundry tracks clean linen output in pounds and their inputs of gas, water, electricity, and labor. A productivity measure incorporating all of these inputs is a multifactor measure.
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A second-tier supplier is upstream from a first-tier supplier in the supply chain.
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According to the law of variability, converting from an assemble-to-order to a make-to-order production process may not increase productivity of the manufacturing processes.
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An R chart is used to track how much the individual observations within a sample vary.
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As the degree of service customization decreases, managers have more opportunity to focus on cost and productivity
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Conformance quality addresses whether the product was made or the service performed to specifications.
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Cycle time is NOT the sum of all of the task times
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Electronic commerce refers to the use of information technology solutions to automate business transactions.
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If a logistics firm consistently makes deliveries within the agreed upon delivery window, there are exhibiting delivery reliability.
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In a service process, the greater the emphasis on intangible activities is, the more critical is the training and retention of skilled employees and the development and maintenance of the firm's knowledge assets.
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In general, core competencies make excellent strategies.
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Information and materials are two examples of inputs to the transformation process.
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Make-to-stock products are probably produced using a production line.
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Taguchi's quality loss function runs counter to the notion that a product falling within tolerance limits is acceptable.
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Takt time is the upper limit on the elapsed time between completions of successive items on a production line.
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The product-process matrix illustrates that low volume, one-of-a-kind products are ideally suited to a job shop process.
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The supply chain is a network of manufacturers and service providers that work together to convert and move goods from the raw materials stage to the end user.
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When Burger King studies the drive-through operations of McDonalds, they are engaging in competitive benchmarking.
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While efficiency can exceed 100%, percent value-added time has a maximum of 100%.
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You decide to open a bookstore with a wide selection, comfortable seating, and internal coffee shop because it has worked very well for other bookstores you have visited. Your strategy could be described as externally neutral.
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