Operations Exam 2 with Study Guide
Service systems differ from manufacturing systems in a number of significant ways, including:
(1) typically services cannot be placed in inventory for later use,. (2) the process is the product,. (3) patents and copyrights typically cannot be obtained. (4) a service is not a tangible item. (5) specific training and certifications are often required.
If a production process makes a unit every two hours and it takes 42 hours for the unit to go through the entire process, what is the expected work-in-process equal to?
21 units = 42/2.
A firm that makes predesigned products directly to fill customer orders has this type of production environment.
Make-to-order.
A firm is using an assembly line and needs to produce 500 units during an eight-hour day. What is the required cycle time in seconds?
57.6 seconds = (8 × 60 × 60)/500
A finished goods inventory, on average, contains 10,000 units. Demand averages 1,500 units per week. Given that the process runs 50 weeks a year, what is the expected inventory turn for the inventory? Assume that each item held in inventory is valued at about the same amount.
7.5 turns = (1,500 × 50)/10,000.
Assume a fixed cost for a process of $120,000. The variable cost to produce each unit of product is $35, and the selling price for the finished product is $50. Which of the following is the number of units that has to be produced and sold to break even?
8000
What is the efficiency of an assembly line that has 25 workers and a cycle time of 45 seconds? Each unit produced on the line has 16 minutes of work that needs to be completed based on a time study completed by engineers at the factory.
85% = (16 × 60)/(25 × 45)
Lean Manufacturing
A means of achieving high levels of customer service with minimal inventory investment.
Continuous process
A process that converts raw materials into finished product in one contiguous process.
Project layout
A setup in which the product remains at one location, and equipment is moved to the product.
The time needed to respond to a customer order
Lead time
This is the key feature that distinguishes a service blueprint from a normal flowchart.
Line of visibility
Make to order
Make the customers production from raw materials. Parts and components
If you wanted to produce 20 percent of one product (A), 50 percent of another (B), and 30 percent of a third product (C) in a cyclic fashion, what schedule would you suggest?
AABBBBBCCC (then repeat)
A layout where the work to make an item is arranged in progressive steps and work is moved between the steps at fixed intervals of time.
Assembly line
What are the four strategies for managing customer-induced variability?
Classic accommodation, low-cost accommodation, classic reduction, uncompromised reduction
Assemble to order
Combine a number of preassembled modules to meet a customer's specifications
Service systems can generally be categorized according to this characteristic that relates to the customer.
Customer contact
Which of the following refers to the physical presence of the customer in a service system?
Customer contact
A key concept in manufacturing processes is the _________________ which determines where inventory is positioned to allow processes or entities in the supply chain to operate independently.
Customer order decoupling point
A point where inventory is positioned to allow the production process to operate independently of the customer order delivery process.
Customer order decoupling point.
A firm that designs and builds products from scratch according to customer specifications would have this type of production environment.
Engineer-to-order.
Which of the following is not considered a major work flow structure
Fabrication
Break-even analysis can only be used in production equipment decision making when dealing solely with fixed costs, not variable costs.
False
Having your luggage arrive on time when you land at an airport is what type of service in the service package?
Implicit service
This is a production layout where similar products are made. Typically, it is scheduled on an as-needed basis in response to current customer demand.
Manufacturing cell.
Manufacturing process flow design
Method to evaluate the specific processes that material flow as they move through the plant
This involves scheduling several different models of a product to be produced over a given day or week on the same line in a cyclical fashion.
Mixed-model line balancing
A measure used to evaluate a workcenter layout.
Number of annual movements multiplied by the distance of each movement, and then multiplied by the cost
These procedures are done to make a system mistake-proof.
Poka-yokes
The relationship between how different layout structures are best suited depending on volume and product variety characteristics is depicted on this type of graph.
Product-process matrix.
SecondLife would be this type of virtual service.
Pure virtual customer contact
One of the three approaches to delivering on-site service is
Self-service approach
Which of the following approaches to service design involves the customer to the greatest extent in providing a service
Self-service approach
The front end and the back end of a service encounter are referred to as what?
Service bookends
A service triangle consists of these four features.
Service strategy, support systems, employees, customer
This framework relates to the customer service system encounter.
Service-system design matrix
Which of the following is a characteristic that can be used to guide the design of service systems?
Services cannot be inventoried.
A term used to refer to the physical surroundings in which a service takes place and how these surroundings affect customers and employees.
Servicescape
Flows in a supply chain
Supply chain stages include customers, retailers, wholesales/distributors, manufactures, component/raw material suppliers
The closer the customer is to the customer order decoupling point, the more quickly the customer receives the product.
True
The term "assembly line" refers to progressive assembly linked by some material handling device.
True
This is a way to shorten the cycle time for an assembly line that has a task time that is longer than the desired cycle time. Assume that it is not possible to speed up the task, split the task, use overtime, or redesign the task.
Use parallel workstations
These are the three steps of service at Nordstrom.
Warm Welcome, Anticipation and Compliance, Fond Farewell
Customer order decoupling points
Where inventory is positioned to allow entities in the supply chain to operate independently.
What is a customer order decoupling point?
Where inventory is stored awaiting demand from the customer. it is impotent because it affects the lead time to fulfill the customer order and the amount of inventory investment necessary
Assembly line
Work process are arranged according to the progressive steps by which the product is made
Engineer to order
Work with the customer to design and then make the product
Three terms commonly used to refer to a layout where similar equipment or functions are grouped together.
Workcenter, job-shop, or functional
Workcenter is
a basic production layout format in which similar equipment or functions are grouped together.
Service package is defined as
a bundle of goods and services that is provided in some environment
Cycle time
a uniform time interval in which a moving conveyor passes a series of workstations
A break-even chart visually presents
alternative profits and losses due to the number of units produced or sold.
Assembly line balancing
assigning all tasks to a series of workstations so that each workstation has no more than can be done in the cycle time
The service package
constitutes the major output of the development process
Cellular layouts allocated
dissimilar machines into cells
For the purposes of assembly line balancing cycle time is found by
dividing production time per day by the required units of output per day
Cycle time
establishes the output rate of a line.
Every service
has a service package
as the degree of customer contact increases in a service operation what generally happens to the efficiency of operations
it decreases
Which term is defined by a production environment where you achieve high customer service with minimum levels of inventory investment.
lean Manufacturing
Term is defined by a production engenderment where you achieve high customer services with minimum levels of inventory investment
lean manufacturing
Production processes are used to
make any manufacturing item
Break even analysis
model seeks to determine the point in units produced where total revenue and total cost are equal
are service operations with high degree of customer contact more or less difficult to control than those with low degree of customer contact
more difficult
Break-even analysis is most suitable when
processes and equipment entail a large initial investment and fixed cost, and when variable costs are reasonably proportional to the number of units produced.
Make to stock
serve customers from finished goods inventory
what are the 3 T's of poka-yokes
tasks done. treatment of customers. Tangible features of the service
Break-even analysis the trade-offs involve
the cost of the equipment, the setup time, and the time per unit
Manufacturing process Flow Design Focus should be on
the identification of activities that can be minimized or eliminated
The closer the customer is to the customer order decoupling point
the more quickly the customer receives the product
It is difficult to separate
the operations management function from marketing in services
Precedence relationship
the order in which tasks must be performed in the assembly process
Customer contact
the physical presence of the customer in the system
Lead time
the time needed to respond to a customer order
The service-system design matrix explores
the trade-offs between sales opportunity, efficiency, and characteristics of workers.
The cycle time of the line is determined by
the workstation taking the longest time
Every service has a service package, which is defined as a bundle of goods and services that is provided in some environment
true
Is it difficult to separate the operations management functions from marketing in services
true
One difference between an assembly line process flow and a continuous process flow is that on the assembly line the flow is discrete rather than continuous
true
Services often take the form of repeated encounters involving face to face interaction
true
The "best" locations for each department
where best means maximizing flow, which minimizes costs
customer order decoupling point which determines
where inventory is positioned to allow processes or entities in the supply chain to operate independently.
Customer order decoupling point
where inventory is positioned to allowed entities in the supply chain to operate
Which of the following basic types of process structures is one in which similar equipment or functions are grouped together?
workcenter
