Bus 140 Operations Management Chaps #7 and 7S

What are the four process strategies?

1.) process focus 2.) repetitive focus 3.) product focus 4.) mass customization

What are the characteristics of a Process-focus strategy?

A facility organized around processes to facilitate low-volume, high-variety production, "Job Shop" high variable costs with low utilization of facilities

What are the characteristics of a product-focus strategy?

A facility organized around products; product oriented high-volume low-variety process, long continuous production runs, high fixed cost but low variable cost reward high facility utilization

What is service blueprinting?

A process analysis technique that lends itself to a focus on the customer and the provider's interaction with the customer

What are the characteristics of Repetitive-focus strategy?

A product- oriented production process that uses modules, "classic assembly line" combines the economic advantages of the product-focused model with the customization advantages of the process-focused model

What is Value-stream mapping (VSM)?

A tool that helps managers understand how to add value in the flow of material and information through the entire production proicess

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? A) 50 units B) 200 units C) $2,500 D) $5,000 E) $9,500

A) 50 units

Goods made to order are typical of ________ and ________ approaches while goods made to forecast are typical of ________ and ________ approaches. A) process, mass customization; repetitive, product B) product, mass customization; repetitive, process C) product, process; repetitive, mass customization D) repetitive, product; mass customization, process E) repetitive, process; mass customization, product

A) process, mass customization; repetitive, product

Consider a production line with five stations. Station 1 can produce a unit in 9 minutes. Station 2 can produce a unit in 10 minutes. Station 3 has two identical machines, each of which can process a unit in 12 minutes (each unit only needs to be processed on one of the two machines. Station 4 can produce a unit in 5 minutes. Station 5 can produce a unit in 8 minutes. Which station is the bottleneck station? A) Station 1 B) Station 2 C) Station 3 D) Station 4 E) Station 5

B) Station 2

Effective capacity is the: A) maximum output of a system in a given period. B) capacity a firm expects to achieve given the current operating constraints. C) average output that can be achieved under ideal conditions. D) minimum usable capacity of a particular facility. E) sum of all of the organization's inputs.

B) capacity a firm expects to achieve given the current operating constraints.

Frito-Lay is to ________ focus as Harley Davidson is to ________ focus. A) process, repetitive B) product, repetitive C) repetitive, product D) process, product E) product, mass customization

B) product, repetitive

A product-focused process is commonly used to produce: A) high-volume, high-variety products. B) low-volume, high-variety products. C) high-volume, low-variety products. D) low-variety products at either high- or low-volume. E) high-volume products of either high- or low-variety.

C) high-volume, low-variety products.

What are process charts?

Charts that use symbols to analyze the movement of people or material

Repetitive-focused strategies are commonly used for?

Classic assembly line, automobiles, household appliances, fast-food companies (Harley-Davidson)

Fabricators, Inc. wants to increase capacity by adding a new machine. The fixed costs for machine A are $90,000, and its variable cost is $15 per unit. The revenue is $21 per unit. What is the break-even point for machine A? A) $90,000 dollars B) 90,000 units C) $15,000 dollars D) 15,000 units E) 4,286 units

D) 15,000 units

Service blueprinting: A) provides the basis to negotiate prices with suppliers. B) mimics the way people communicate. C) determines the best time for each step in the process. D) focuses on the provider's interaction with the customer. E) uses the schematic of a house to diagram a service process.

D) focuses on the provider's interaction with the customer.

In the mass service and service factory quadrants of the service process matrix, the operations manager could focus on all of the following except: A) automation. B) standardization. C) tight quality control. D) removing some services. E) customization.

E) customization.

Which of the following is NOT one of the strategies for improving service productivity? A) self-service B) automation C) scheduling D) separation E) mass customization

E) mass customization

How much facility utilization is there in a Process focused strategy?

Extremely low facility utilization only about 5%

An example of the postponement strategy for improving service productivity is having the customer wait until you have sufficient time to serve the customer.

False

Breakeven analysis identifies the volume at which fixed costs and revenue are equal

False

Harley-Davidson, because it has so many possible combinations of products, utilizes the process strategy of mass customization.

False

The bottleneck time is always at least as long as the throughput time.

False

The typical full-service restaurant uses a product-focused process.

False

To find the throughput time with simultaneous processes, compute the time over all paths and choose the shortest path through the system.

False

How much facility utilization is there in a Product focused strategy?

High facility utilization

Process-focused strategies are commonly used for?

In a factory: welding, grinding, painting, In an office: accounts payable, sales, payroll, In a restaurant: bar, grill, bakery (Arnold Palmer Hospital)

Define; Build-to-order (BTO)

Produce to customer order rather than to a forecast

What are the characteristics of Mass customization?

Rapid, low-cost production that caters to constantly changing unique customer desires

Mass production is commonly used for?

Smart phones, Amazon, Spotify, made just for certain type of customer when customer wants it (Dell computers)

What is the definition of capacity?

The "throughput" or number of units a facility can hold, receive, store, or produce in a period of time.

What does the break-even analysis identify?

The point, in dollars and units, at which costs equal revenues.

What Throughput time?

The time it takes a unit to go through production from start to end

What is Bottleneck time?

The time of the slowest workstation (the one that takes longest) in a production system

What are the similarities to between process focus and mass customization?

They both produced a variety of low-volume goods that require products flexibility as well as processes that can handle frequent changes which lead to high variable costs

Design capacity is the theoretical maximum output of a system in a given period under ideal conditions.

True

In process-focused facilities, utilization of facilities is low.

True

Service blueprinting is a process analysis technique that focuses on the customer and the provider's interaction with the customer.

True

The assembly line is a classic example of a repetitive process.

True

Product-focused strategies are commonly used for?

glass, paper, light-bulbs, beer and potato chips (Frito-lay)