Chapter 7 Questions

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? ▫️ 50 units ▫️ 200 units ▫️ $2,500 ▫️ $5,000 ▫️ $9,500

50 units

Which of the following statements is NOT true regarding process redesign? ▫️ Process redesign also focuses on those activities that cross functional lines ▫️ Process redesign is also called process reengineering ▫️ Effective process redesign works only if the basic process and its objectives are reexamined ▫️ Process redesign is also called process reinvention

Process redesign is also called process reinvention

Which of the following is NOT an example of technology's impact on the financial services industry? ▫️ electronic funds transfer ▫️ Internet stock trading ▫️ debit cards ▫️ RFID

RFID

Value-stream mapping: ▫️ is a variation of 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. ▫️ all of the above are true.

all of the above are true

Which one of the following products is most likely made in a job shop environment? ▫️ rolls of newsprint ▫️ custom furniture ▫️ television sets ▫️ cigarettes ▫️ canned vegetables

custom furniture

What is the ability to respond with little penalty in time, cost, or customer value? ▫️ postponement ▫️ flexibility ▫️ repetitive process ▫️ mass customization

flexibility

What is a drawing of the movement of material, product or people? ▫️ RFID ▫️ flowchart ▫️ AIS ▫️ process chart

flowchart

Low-volume, high-variety production is best suited for which of the following process strategies? ▫️ product focus ▫️ process focus ▫️ mass customization ▫️ repetitive focus

process focus

Three of the four types of processes are: ▫️ goods, services, and hybrids. ▫️ manual, automated, and service. ▫️ process focus, repetitive focus,and product focus. ▫️ modular, continuous, and technological. ▫️ input, transformation, and output.

process focus, repetitive focus,and product focus

Which of the following is NOT a production technology that enhances production and productivity? ▫️ vision systems ▫️ process control ▫️ service blueprinting ▫️ automatic identification systems

service blueprinting

Which of the quadrants in the service process matrix has low labor intensity and low customization? ▫️ professional service ▫️ mass service ▫️ service factory ▫️ service shop

service factory

One fundamental difference between a process chart and a flowchart is that: ▫️ the process chart adds a time dimension to the horizontal axis, while a flowchart is not time-oriented. ▫️ the process chart includes the supply chain, while the flowchart stays within an organization. ▫️ the process chart is more like a table, while the flowchart is more like a schematic diagram. ▫️ 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. ▫️ None of these is true, because a process chart and a flowchart are the same thing.

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

In many applications, human quality inspectors can be replaced effectively by ▫️ automated storage and retrieval systems ▫️ RFID tags ▫️ FMS ▫️ vision systems

vision systems