Manufacturing and Service Process Structures

Which of the following statements about vertical integration is true?

a. as a firm performs more processes itself, from acquiring materials to final delivery to customers, the more vertically integrated it is

Which of the following statements concerning process management is true?

a. capital intensity depends on the mix of equipment and human skills in a production process: the greater the relevant cost of equipment to human labor, the greater the capital intensity

Products built in anticipation of demand and sold from inventory are classified as:

a. make-to-stock

A job shop process requires:

a. organizing the resources around the process

Which of the following statements about process choice is best?

b. continuous processes are very capital intense

Which of the following statements concerning flow diagrams is not true?

b. flow diagrams are useful in business process re-engineering, but not in continuous improvement

Which of the following statements about process management is best?

b. when customization must be high, equipment should be general purpose, and employees need to perform a broader range of duties

Which of the following statements on continuous improvement and re-engineering is best?

c. Re-engineering starts with a "clean slate" whereas continuous improvement looks for ways to incrementally improve

Among the characteristics of an intermittent production process is:

c. ability to produce a variety of products

Which of the following statements about customer involvement is best?

c. for services that directly involve the customer, the customer often dictates time of the service

When production volumes are high, process decisions are more likely to favor:

c. less resource flexibility

Analysis of a process if most likely to be economically beneficial if the process is:

c. the bottleneck operation

Which of the following statements concerning vertical integration is true?

d. opting for higher level of vertical integration implies less outsourcing

Low-volume and high variety production is best undertaken by:

e. a&c: process focused manufacturing and job shop type operations

The difference between process focus and product focus is in:

e. all of the above; the degree of flexibility, the extent of product customization, the volume of production per product, product variety

A product-oriented layout is characterized by:

e. equipment arrangement based on the sequence of operations