Unit 2 Operations

Utilization is the average time taken to complete one cycle of a process. T/F

False

Supply chain optimization includes minimizing the total costs of manufacturing and transportation. T/F

true

Non-value-added activities in a process design can be eliminated by:

using value stream mapping

The "Wi" typically used in the numerator and denominator of the center-of-gravity equations represents the__________.

volume of goods or services moved to or from location i

In location decision process, community location decision involves:

selecting a specific city in which to locate

The center-of-gravity method is often used to locate _____.

service facilities

_____ should begin immediately after a service upset occurs and when the customer is visibly upset.

service recovery

The perceptions of a firm and its goods and/or services is created at the __________ stage.

service-encounter design

___________ is NOT one of the eleven supply chain design decisions listed in the text.

supplying

In location decision process, which of the following factors are considered in local site location decision?

sustainability issues

In a process design, a _____ is a specific unit of work required to create an output.

task

Building a House of Quality begins by identifying the voice of the customer and ____________, and listing them in the appropriate places in the diagram.

technical features of the design

The Taguchi loss function is _________, where __ is a constant that translate the deviation into dollars.

L(x)= k(x-t)^2; k

When computing the total cost of manufacturing in-house, the formula, ____________, is used. The variable ________ represents the unit cost of manufacturing in-house.

TCI=FCI+CIxQ; CI

Which of the following is a difference between flow shops and job shops?

Unlike flow shops, job shops require frequent machine changeovers and delays.

In the context of service-delivery system design, which of the following establishments depends on good location decisions?

a health club

____________ is an example of a flow shop process.

automobile production

_____________ integration refers to acquiring capabilities toward supplies, whereas ___________ integration refers to acquiring capabilities toward distribution.

backward; forward

The ______________ is used to determine the x and y coordinates for a single facility. The first step in this procedure is to _________________

center-of-gravity method; place the locations of existing supply and demand points on a coordinate system

The transportation problem is a linear optimization model that can be used to ____________. The final decision is made by comparing ____________.

choose between multiple locations; total costs

___________ services are those that offer customers the broad freedom to select the pathways that are best suited to their immediate needs and wants. On the contrary, __________ services constrain customers to follow a very small number of possible and pre-defined pathways through the service system.

customer-routed; provider-routed

____________ supply chains work best for goods and services with highly predictable demand.

efficient

An automobile emissions testing center has six inspectors and tests 50 vehicles per hour. Each inspector can inspect 12 vehicles per hour. How many inspectors would the center require to have a target utilization of 90 percent? Round your answer up to the next whole number.

five

In the context of process design, _____ is defined as the ability to produce the right types and amounts of products as customer demand or preferences change.

flexibility

High customer contact systems would most likely be found in....

front office operations

The bottom of a House of Quality identifies the technical features that:

have the strongest relationships to customer requirements

The key difference between a value stream map and an ordinary process map is that a value stream map

highlights value-added verses non-value-added activities

Which of the following is true of the House of Quality?

it contains key selling points and features

In the context of the service-delivery system design, a(n) _________ depends on good location decisions.

library

Unlike firms that outsource, firms engaged in offshoring:

maintain ownership of the facility in another country

_____ are generally produced and delivered as one of a kind or in small quantities, and are designed to meet specific customers' specifications.

make-to-order goods

________________ is NOT one of the principal types of processes that are used to produce goods and services.

make-to-stock processes

For manufactured goods, the _______ attribute addresses the important customer need of aesthetics.

place; consumption

_____ are large-scale, customized initiatives that consist of many smaller tasks and activities that must be coordinated and completed to finish on time and within budget.

projects

A low degree of ___________ encourages more customization and more flexible equipment process designs.

repeatability

The _____ of the House of Quality shows the interrelationships between any pair of technical features.

roof

At which of the following stages are the perceptions of a firm and its goods and services created?

the service-encounter design stage

Which of the following is true of flow shop processes?

they are organized around a fixed sequence of activities and process steps

Which of the following is true of Energy Star-certified products?

they exert less demand on electrical power plants

Which of the following is an advantage of pull systems?

they minimize inventory and production costs

Greyon Suits, a company that specializes in making hand-made suits, moved its sourcing and operations from Lumeria back to its home country. This led to easier management and decreased carbon footprint. In this case, Greyon Suits is involved in _____.

reshoring

People around the world recognize the consistency in McDonald's restaurants: the golden arches, schemes and colors, packaging, etc. This is known as ___________ and helps to establish its brand image.

servicescape

The _____ provides the behavioral setting where service encounters take place.

servicescape

Building facades are examples of __________ in the context of the servicescape.

spatial layout and functionality

In the context of the servicescape, in the service-delivery system design, building footprints are examples of:

spatial layout and functionality

Jones and Johnson, a law firm, is expanding to incorporate three conference rooms and two executive waiting lounges in its office. Which of the following dimensions of servicescape is the firm addressing?

spatial layout and functionality

____________ is the first step that LensCrafters uses to integrate goods and services.

strategic mission

Prior to designing and configuring a customer benefit package, a firm should understand and develop its:

strategic mission and competitive priorities

Which of the following is a disadvantage of push systems?

they result in higher costs when forecasting sales is difficult

For manufactured goods, design blueprints specify a target dimension, along with a range of permissible variation called the _____.

tolerance

_____ is a noneconomic factor in location decisions.

availability of labor

A firm that specializes in certain types of goods-producing activities, such as customized design, manufacturing, assembly, and packaging, and works under contract for end users is called a _____.

contract manufacturer

A beeper on an ATM machine reminds customers to remove their cards. This is a poka-yoke related to the service error: ______________.

customer errors during an encounter

Happy Cruises promises to authorize a full refund if 100% satisfaction is not met while on vacation. This is an example of a service....

guarantee

A(n) _____________ is an example of an elaborate servicescape.

hospital

__________________: is NOT one of the three ways to prevent mistakes.

identify defects and errors and place blame on workers

In the context of quality function deployment, one of the first steps to build the House of Quality is to:

identify the technical features of the design of the product

Which of the following statements is true of a process map?

it documents how work either is or should be accomplished

Which of the following statements is true of a responsive supply chain?

it works best when product life cycles are short and change often because of innovation

_____ are organized around particular types of general-purpose equipment that are flexible and capable of customizing work for individual customers.

job shop processes

________________ is NOT an example of supply chain optimization.

maximizing the total miles driven between facilities

_____ are configurations of standard parts, subassemblies, or services that can be selected by customers from a limited set.

option goods

_____________ goods and services are configurations of standard parts, subassemblies, or services that can be selected by customers from a limited set while __________ goods and services are made according to a fixed design.

option; standard

Zara's global supply chain addresses many key supply chain decisions. For example, although the form ____________ when appropriate it maintains a high degree of supply chain ____________. They have resisted the industry trend to transfer their fast-fashion production approach to developing countries.

outsources; control

_____ is the process of having suppliers provide goods and services that were previously provided internally.

outsourcing

___________ is an approach for mistake-proofing processes using automatic devices or simple methods to avoid human error.

poka-yoke

Reliability is the....

probability that a manufactured good, piece of equipment, or system performs its intended function for a stated period of time under specific operating conditions

A _____ is a characterization of product growth, maturity, and decline over time.

product life cycle

_____ is the process by which a model (real or simulated) is constructed to assess a product's performance under actual operating conditions, as well as consumer reactions to the model.

prototype testing

Zara's supply chain design consists of point-of-sale data that drives many flexible decision processes. This is an example of a(n) ___________ system supply chain design.

pull

A _____ produces only what is needed at upstream stages in the supply chain in response to customer demand signals from downstream stages.

pull system

___________ systems work best when there are few distribution centers and products. On the contrary, ____________ systems work best when there are many production facilities and many points of distribution.

push, pull

In the context of service-encounter design, giving discounts to employees is a form of _____.

recognition

The goal of ___________ is to achieve quantum leaps in performance. This often involves asking basic questions about business processes.

reengineering

Rues and West Inc. is an automobile manufacturing firm. It produces and assembles all the parts of automobiles in its factory and, later, ships the finished products to its storehouses. The managers at the storehouses distribute the goods to wholesalers. Customers then buy the products from the wholesalers. In this scenario, the push-pull boundary for Rues and West Inc. is at the _____.

wholesalers

Machine A has a reliability of 0. Machine B has a reliability of 0.49. Machine C has a reliability of 0.7. Machine D has a reliability of 1. Which machine is the most reliable?

Machine D

Which of the following statements is true of the service-positioning matrix (SPM)?

The SPM helps management design a service system that best meets the technical and behavioral needs of customers.

All processes and functional areas participate in the reengineering efforts of a firm. T/F

True

_____ is the explicit consideration of ecological concerns during the design of goods, services, and processes, and includes such practices as designing for recycling and disassembly.

design for environment

One focus of management strategies to improve process designs is increasing agility. This is done by _______________.

improving flexibility and response to changes in demand and customer expectations

Management strategies to improve process designs of services focus on:

increasing product and service quality by reducing defects and service upsets

___________ is NOT one of the four hierarchical levels of work.

mapping

One advantage of a distributive system, such as blockchain technology, is that:

no single individual or organization has total control of the information

Eliminating ___________ in a process design is one of the most important procedures of operation managers. This is often accomplished using ____________

non-value added activities; value stream mapping

(A) ________ supplier(s) often provides economies of scale and the ability to form close partnerships; however, (a) __________ supplier(s) lower the risk of a supply disruption.

single; multiple

Which of the following is true of reengineering?

the goal of reengineering is to achieve quantum leaps in performance

A _____ is the beginning or end of a process.

process boundary

Identify a true statement about responsive supply chains.

They are supported by information technology that provides real-time information to managers across the supply chain.

_____ refers to acquiring capabilities toward distribution, or even customers.

forward integration

At Blyrie Apparels, the apparel stocks in the firm's outlets are changed every week. This is based on the changing fashion preferences of its customers. Its managers also coordinate in real-time among its other stores and satisfy its customers' requirements. In this case, Blyrie Apparels most likely uses _____.

a responsive supply chain

In the context of service-encounter design, high-contact systems would most commonly be found in:

front office operations

The critical differences between the designs of goods and services lie in the:

detailed product and process design phases

______________ is NOT a non-economic factor in location decisions.

direct labor costs

A _____ is a symbol used in process maps to denote an input or arrival into a process.

double-headed arrow

David runs a bed and breakfast in the outskirts of a big city. His employees are allowed to spend up to $200 to resolve any customer complaints, with no questions asked. This is an example of:

empowerment

Jane manages a small-town movie theater. Her boss allows her to compensate up to $25, in addition to refunds, to resolve customer complaints. This is an example of...

empowerment

Consider the product-process matrix. As one moves down the diagonal, the emphasis on both product and process structure shifts from low volume and high __________ to higher volume and more __________.

flexibility; standardization

A difference between efficient supply chains and responsive supply chains is that responsive supply chains _____.

focus on flexibility and responsive service

Unlike the customer benefit package design and configuration stage of designing goods and services, the detailed goods, services, and process design...

focuses on implementation

Unlike the customer benefit package design and configuration stage of designing goods and services, the detailed goods, services, and process design:

focuses on implementation