chapter 7: process strategy

an organization's process strategy

will have long-run impact on efficiency and flexibility of production, is the same as its transformation strategy, must meet various constraints including cost, is concerned with how resources are transformed into goods and services e. all of the above are true

which of the following statements regarding ethical and environmentally friendly processes is true?

C. operations managers can be environmentally sensitive and still follow a low cost strategy

process X has fixed costs of $10,000 and variable costs of $2.40 perunit. process y has fixed costs of $9,000 and variable costs of $2.25 per unit. which of the following statements is true?

C. process Y is cheaper than process X at all volumes; there is no crossover point

3 types of processes are

C. process focus, repetitive focus, and product focus

which of the following transformations generally has the high equipment utilization?

C. product-focused process

an assembly line is an example of a

C. repetitive process

one fundamental difference b/t a process chart and a process map is that

C. the process chart is more like a table, while the process map is more like a schematic diagram

harley davidson

D. uses work cells to feed its assembly line

product focused processes

C. are processes that are specialized for relatively few products or customer groups

making environmentally sound products through efficient processes

C. can still be profitable

a system using an automated work cell controlled by electronic signals from a common centralized computer facility is called a

C. flexible manufacturing system

"operators simply loan new programs, as necessary, to product different products" describes

C. flexible manufacturing systems

a product-focused process is commonly used to product

C. high-volume, low-variety products

which one of the following technologies is used only for material handling, not actual production or assembly?

D. AGVs

"automatic placement and withdrawal of parts and products into and from designated places in a warehouse" describes

D. ASRS

advances in tech

D. have had dramatic impact on customer interaction with services and with products

which of the following phrases best describes product focus?

D. high fixed costs, low variable costs

in mass service and professional service, the operations manager should focus on

D. human resources

the crossover point is that production quantity where

D. total costs for one process = total costs for another process

which of the following is true regarding vision systems?

they are consistently accurate, they are modest in cost, they do not become bored d. all of the above are ture

which of the following are typical process control systems?

they have snesors, the digitized data are analyzed by computer which generates feedback, their sensors take measurements ona periodic basis, the sensors' measurements are digitized e. all of the above

a firm's process strategy is its approach to transforming resources into goods and services

true

automated storage and retrieval systems are commonly used in distribution facilities of retailers

true

flexibility is important in reptitive focus plants and product focus plants

true

flexible manufacturing systems, because of easily changed control programs, are able to perform such tasks as manufacturing one of a kind parts economically

true

in process-focused facilities, equipment utilization is low

true

in selecting new equipment and technology, decision-makers look for flexibility- the ability to respond with little penalty in time, cost, or customer value

true

intermittent processes are organized around processes

true

one essential ingredient of mass customization is modular design

true

one use of camera-and-computer-based vision systems is to replace humans doing tedious and error-prone visual inspection activities

true

optical checkout scanners and ATMs are examples of technology's impact on services

true

process control is the use of info technology to monitor and control a physical process

true

processes can be environmentally friendly and socially responsible while still contributing to profitable strategies

true

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

true

the assembly line is a classic example of a repetitive process

true

the term 'focused processes' refers to the quest for increased efficiency, whether in goods or services, that results from specialization

true

the tool that calculates which process has the lowest cost at any specified production volume is a crossover chart

true

time-function mapping is a flow diagram with time added to the horizontal axis

true

when done correctly, mass customization

increases pressure on supply chain perforamnce, helps elimate the guesswork that comes with sales forecasting, drives down inventories, increases pressure on scheduing E. all of the above

a quasi-custom product

gets its apparent customization from the combinations available from a small number of modules, is often the output of repetitive focus facilities, is a valid description of a fast food sandwich e. all but d are true

flexibility can be achieved with

movable equip, inexpensive equip., sophisticated electronic equip, modular equip e. all of the above

harley davidson, because it has so many possible combination of products, utilizes the process strategy of mass customization

false

process maps use distance, but not time, to show the movement of material, product, or people through a process

false

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

false

professional services typically require low levels of labor intensity

false

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. the crossover point b/t A and B is

A. 50 units

examples of the impact of tech on services include all but which of the following?

A. credit cards

which of the following phrases best describes process focus?

A. low volume, high variety

the use of info tech. to monitor and control a physical process is known as

A. process control

strategies for improving productivity in services are

A. separation, self-service, automation, and scheduling

utilization in proces-oriented facilities is frequently low bc

d. excess capacity for peak demands is desirable

which of following statements regarding Dell computers is false?

B. Dell builds its computers overseas in order to gain a low-cost advantage

standard register

B. groups people and machines into departments that perform specific activities

which of the following best describes repetitive focus?

B. its output is a standardized product produced form modules

which of the following products is most likely made in a job shop environment?

B. paper forms

which of the following is false regarding repetitive processes?

B. they allow easy switching from one product to the other

which of the following is true regarding opportunities to improve service processes?

E none of the above is true

which of the following industries is likely to have low equipment utilization?

E. restaurants

a drawing of the movement of material, product, or people is a

a. flow diagram

computer-integrated manufacturing (CIM) includes manufacturing systems that have

a. computer-aided design, a flexible manufacturing system, inventory control, warehousing and shipping integrated

which of the following products is likely to be assembled on a repetitive process line?

automobiles, pcs, dishwashers, tv sets e. all of the above

which of the following statements regarding automated guided vehicles is false?

b. they are used to move workers from one side of the plant to the other

service blueprinting

d. focuses on the provider's interaction with the customer

a job shop is an example of a

d. intermittent process

ethical and environmentall friendly processes include which of teh following?

emission controls, recycling, efficient use of resources, reduction of waste by-products, e. all of the above

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

e. customization

a process map with the addition of a time axis becomes a process chart

false

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

false

dell's approach to personal computer manufacturing is to use a product focus, which gives the company its low-cost competitive advantage

false

successful process redesign focuses on departmental areas where small, continuous improvements can be made

false

the typical full-service restaurant uses a product-focused process

false

value stream mapping is the analysis of where value is added in the production process within a facility

false

value stream mapping

is a variation on time function mapping, examines the supply chain to determine where value is added, extends time function mapping back to the supplier, starts with the customer and works backwards E. all of the above are true

process redesign

is the fundamental rethinking of business processes, can focus on any process, tries to bring about dramatic improvements in performance, focuses on acitivities that cross functional lines E. all of the above

which of the following is true regarding the concept of flexibility?

it is the ability to change production rates with little penalty in time, cost, or customer value; it can be accomplished with sophisticated electronic equip; it may involve modular, movable, and even cheap equip d. all of the above are true