Service & Productions Ops Test 2

A manufacturing cell groups identical machines together to work on products having similar shapes and processing requirements. False True

False

The long-term relationship among the inventory, throughput, and flow time of a production system in steady state is called which of the following?

Little's Law

Which of the following is not part of "the service triangle"? Support systems Employees Service strategy Customers Service encounter

Service encounter

Which one of the following is not a major factor distinguishing service design and development from manufacturing design and development?

Service operations can be protected by patents; manufacturing operations cannot.

The term "assembly line" refers to progressive assembly linked by some material handling device. True False

True

An explicit service is readily observable by the senses. False True

true

Several approaches to demand management exist, but only ______ seeks to maximize revenue.

Yield management

A make-to-order firm will work with the customer to design the product and then make it from purchased materials, parts, and components. True False

false

Implicit services are not part of the service package. True False

false

A "process" is any part of an organization that takes inputs and transforms them into outputs that, hopefully, are of greater value to the organization than the original inputs. True False

true

In designing a production line, a mixed-model line layout is used by JIT manufacturers. true false

true

Job design is defined as the function of specifying the work activities of an individual or group in an organizational setting. True False

true

One trade-off illustrated by the product-process matrix is between flexibility and cost. True False

true

Setup time is the time required to prepare a process to produce a particular item. False True

true

The focus in the make-to-stock environment is on providing finished goods where and when the customers want them. True False

true

The term "assembly line" refers to progressive assembly linked by some material handling device. False True

true

Faced with variable demand and a perishable capacity, a service manager can smooth demand by ______.

using reservations and appointments

A project layout is characterized by a relatively low number of production units in comparison with workcenter and assembly-line formats. True False

True

If the sum of the task times required to produce a product is 45 minutes and the cycle time for the same product is 10 minutes, the theoretical minimum number of workstations is 5 using the assembly-line balancing procedure. True False

True

Suppose that you have two processes A and B for producing a widget.Process A has a fixed cost of $10,000 and per unit variable cost of $80.00. Process B has a fixed cost of $30,000 and the per unitvariable cost is $40.00. The widget sells for $100 regardless of production process used. During the next three years (your planning horizon for the widgets) you expect the economy to be pretty good with sales of widgets to be at least 700 units per year.

Choose B

The placement of which of the following is not determined by production process organization decisions? Departments Emergency exits Machines Workstations Work groups

Emergency exits

Which of the following is not considered a major work flow structure? -Fabrication -Project -Continuous flow -Assembly line -Work center

Fabrication

A process flowchart uses which of the following symbols to represent a decision point in a flow diagram? Rectangle Inverted triangle Arrow A dashed line Diamond

diamond

Bars that offer happy hours in the afternoon are using the strategy of ______.

promoting off-peak demand

Which of the following basic types of process structures is one in which equipment or work processes are arranged according to the progressive steps by which the product is made? Project Manufacturing cell Assembly line Work center Continuous process

Assembly line

Which of the following best describes the term "cycle time"? The labor content of the item being measured Can be no more that 60 minutes The same as utilization Ratio of the time a resource is activated over its use Average time between completions of successive units

Average time between completions of successive units

Which of the following is not considered an input to the layout decision in facility layout analysis? Estimates of product or service demand on the system Specification of objectives and corresponding criteria to be used to evaluate the design Processing requirements in terms of the number of operations and the flow between elements in the layout Cost per square foot of alternative facilities Space requirements for the elements in the layout

Cost per square foot of alternative facilities

To reduce process throughput time, you might try which of the following actions?

Change the sequence of activities.

Which of the following is not a strategy for managing capacity? Scheduling shifts. Using part-time employees. Developing complementary services. Forecasting demand

Developing complementary services

The time needed to respond to a customer's order is called the customer response time. True False

false

Assemble-to-order means moving the customer order decoupling point from finished goods to components. True False

true

One methodology used to evaluate equipment investment decisions where the investment entails an initial investment, fixed costs, and variable costs is break-even analysis. False True

true

Using the assembly-line balancing procedure, which of the following is the required cycle time in minutes per unit if the daily production time is 480 minutes and the required daily output is 50 units? 0.104 480 Cannot be determined from the information given 9.6 50

9.6

Which of the following basic types of production layout formats is one in which equipment or work processes are arranged according to the progressive steps by which the product is made? Process layout Functional layout Group technology layout Job-shop layout Assembly line layout

Assembly line layout

Which of the following is not an example of the differential pricing policy?

Difference in hospital fees for walk-in and scheduled services.

Which of the following is not a step in developing a manufacturing cell layout? Identifying dominant flow patterns of parts families as a basis for location of processes Physically grouping machines and processes into cells Disposing of leftover machinery and outsourcing ungrouped processes None of these Grouping parts into families that follow a common sequence of steps

Disposing of leftover machinery and outsourcing ungrouped processes

An example of segmenting demand is seen when movie theaters offer matinee prices before 6:00 p.m True False

False

Blocking in production processes is when activities in a stage must continue because there is no place to deposit completed items. False True

False

Having a lot of interstage storage of materials is considered a good layout design for a manufacturing plant. True False

False

A process flowchart uses symbols to represent which of the following? Warehouse space available Factory location Workforce schedules Data analysis Flows of material or customers

Flows of material or customers

In the service-system design matrix, a face-to-face total customization service encounter is expected to have which of the following? Low degree of customer/server contact Low sales opportunity Low production efficiency None of these High production efficiency

Low production efficiency

In the service-system design matrix, a mail contact service encounter is expected to have which of the following? High degree of customer/server contact High sales opportunity Low sales opportunity None of these High production efficiency

Low sales opportunity

The purpose of differential pricing is to ______. make off-peak usage attractive charge customers according to their ability to pay adjust capacity to demand

Make off peak usage attractive

Which of the following is a characteristic that can be used to guide the design of service systems? Services cannot be inventoried. Services businesses are inherently entrepreneurial. Services are all similar. Even service businesses have internal services. Quality work means quality service

Services cannot be inventoried.

Service capacity is defined in terms of an achievable level of output per unit time. True false

True

The objective of a retail service layout is to maximize net profit per square foot of store space. True False

True

Yield management is a strategy that manages both demand and capacity. False True

True

A good overbooking strategy should ______.

balance the expected opportunity cost of idle service capacity and expected cost of turning away customers who have reservations

A high-level map or diagram of a supply chain process can be useful to understand how material flows and where inventory is held. False True

true

A workcenter is a basic production layout format in which similar equipment or functions are grouped together. true false

true

An implicit service implies psychological benefits that the customer may sense only vaguely. False True

true

______ variability is not one of the five sources of customer-induced variability. Demand Effort Capability Arrival

Demand

Assume a fixed cost for a process of $15,000. The variable cost to produce each unit of product is $10, and the selling price for the finished product is $25. Which of the following is the number of units that has to be produced and sold to break even? 900 units 1,000 units 500 units 667 units 790 units

1000 units

Using the assembly-line balancing procedure, which of the following is the theoretical minimum number of workstations if the task times for the six tasks that make up the job are 4, 6, 7, 2, 6, and 5 minutes, and the cycle time is 10 minutes? 3 8 5 None of these 6

3

______ is not a strategy for reduction of customer-induced variability. Limit service breadth Adapt to customer skill levels Require reservations Target customers based on capability

Adapt to customer skill levels

To reduce process flow time, you might try which of the following actions? Reduce interruptions. Acquire additional equipment. Change the sequence of activities. All of these Perform activities in parallel.

All of these

Which of the following is not a step in developing a manufacturing cell layout? -None of these -Grouping parts into families that follow a common sequence of steps -Disposing of leftover machinery and outsourcing ungrouped processes -Physically grouping machines and processes into cells -Identifying dominant flow patterns of parts families as a basis for location of processes

Disposing of leftover machinery and outsourcing ungrouped processes

In the service-system design matrix, an Internet and on-site technology service encounter is expected to have which of the following? High sales opportunity None of these High production efficiency Low production efficiency High degree of customer/server contact

High production efficiency

An advantage of a make-to-stock process is which of the following? It combines the best features of other processes. All units of output are unique. It responds directly to customer orders. It features rapid delivery of a standard product. It allows the firm to avoid inventory costs.

It features rapid delivery of a standard product.

For a chase demand strategy which of the following does not have a high trade-off?

Labor skill level

Which of the following is not a basic type of production layout format? Assembly line Manufacturing cell layout Process layout Project layout Workcenter

Process layout

Which of the following is not a basic type of process structure? Manufacturing cell Product-process matrix Continuous process Assembly line Work center

Product-process matrix

Using part-time personnel at fast-food restaurants allows capacity to vary with demand. True False

True

n assembly-line balancing, the theoretical minimum number of workstations is found by a ratio of the sum of all task times divided by the cycle time. False True

True

A process flowchart uses which of the following symbols to represent flows of material or customers in a flow diagram?

arrow

A service operation by its very nature is a make-to-stock type of production process. True False

false

A service system with a high degree of customer contact is less difficult to control than a low degree of customer contact service system. False True

false

Make-to-order production processes are well suited for high-volume production of a standardized product. False True

false

The customer is (or should be) the second most important focal point of all decisions in a service organization. True False

false

When a make-to-order production process is used, production is based on forecasts. True False

false

Work-center layouts allocate dissimilar machines into cells to work on products that have dissimilar processing requirements. False True

false

Which of the following terms describes the time a unit spends actually being worked on together with the time spent waiting in a queue?

flow time

A process flowchart uses which of the following symbols to represent tasks or operations in a flow diagram?

rectangle

In the design of retail service layouts, the term "ambient conditions" does not refer to which of the following? Music Staffing Noise level Lighting Scent

staffing

An important aspect of service products is that they cannot be inventoried. True False

true

Benchmarking refers to the practice of comparing the production metrics of one firm with the production metrics of another. True False

true

Pacing in production processes refers to the fixed timing of the movement of items through the process. False True

true

Poka-yokes are procedures that block the inevitable mistake from becoming a service defect. True False

true

The essential issue in satisfying customers in the make-to-stock environment is to balance the level of finished inventory against the level of service to the customer. True False

true

Which of the following is not a characteristic of yield management? There is one homogeneous customer class. Demand fluctuates yet is somewhat predictable. Capacity is relatively fixed. The service is considered a perishable inventory.

There is one homogeneous customer class

Which of the following is a major factor that distinguishes service design and development from manufacturing design and development?

The service package is the major output of the development process.

A drawback to increased consumer participation is the fact that service quality is no longer completely under the control of the provider of the service. True False

True

Assembly-line balancing means assigning all necessary tasks to a series of workstations so that each workstation has no more than can be done in the workstation cycle time and so that idle time across all workstations is minimized. False True

True

Which of the following basic types of process structures is one in which similar equipment or functions are grouped together? Manufacturing cell Assembly line Project Work center Continuous process

Work center

Which of the following is a basic type of process structure? Manual assembly Process flow diagram Product matrix Work center Process matrix

Work center

Which of the following basic types of production layout formats is one that has similar equipment or functions are grouped together? Manufacturing cell layout Production line layout Assembly line layout Workcenter layout Group technology layout

Workcenter layout

A medical clinic has two doctors and each can treat 25 patients a day. The doctors see walk-in patients whose arrival times cannot be controlled, and also patients who have made appointments. Knowing the expected number of walk-ins per day, appointments are scheduled to utilize the doctors fully. The following table gives the expected number of walk-ins for a particular week:

45

A process flowchart uses which of the following symbols to represent storage areas or queues in a flow diagram? Inverted triangle Diamond Rectangle Arrow A dashed line

inverted triangle

Engineer-to-order firms will work with the customer to design the product and then make it from purchased materials, parts, and components. False True

true

If you want to reduce process flow time, one solutions is to perform activities in the process in parallel. True False

true

In designing a production layout a flexible line layout might have the shape of a "U". true false

true

Which of the following is not a strategy to manage demand? Offering price incentives. Partitioning demand. Developing reservation systems. Cross-training employees.

Cross-training employees.

As a general rule, manufacturing workstations should not be very close together. True False

False

Which of the following production process terms best describes the situation when activities in a stage of production must stop because there is no work? Starving Buffering Blocking Buffer Setup time

Starving

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. False True

True

The objective of a mixed-model line layout is to meet the demand for a variety of products and avoid building high inventories. False True

True

A restaurant that features special lunchtime combo meals is providing all of the following benefits, except: ______. promotes off-peak demand segment demand increases customer satisfaction decreases service times

promotes off-peak demand

A health club's offering a reduced rate membership for students to workout before 4:00 p.m. on weekdays is ______.

promoting off-peak demand

Which of the following refers to the physical presence of the customer in a service system? Continuous production Customer contact None of these Creation of the service Intermittent production

Customer contact

Consider a three sequentially stepped process named as Process A, Process B and Process C. Input comes into Process A. Output form A goes into Process B. Output from B goes into Process C. Output of C is the final output. Suppose that it takes 2 minutes per unit in Process A, 3 minutes per unit in Process B and 1 minute per unit in Process C. Suppose further that Process A receives input at the rate of 30 per hour. Where would you place a buffer?

In front of process B

In the design of retail service layouts, the term "ambient conditions" could refer to which of the following? How much money a customer spends How long the customer stays Employee morale Customers' perceptions of the service Temperature

Temperature

Buffering in a production process refers to a storage area between stages of production activity where output of a stage is placed prior to being used in a "downstream" stage. True False

true