Operations Management Chapter 7
Consider a value stream map for the order posting and fulfillment process in a restaurant shown in Exhibit 7.7. The chef's time is valued at $30 per hour, oven operation at $10 per hour, precooking order waiting time at $5 per hour, and post-cooking order waiting time at $60 per hour. The $60 estimate reflects the cost of poor quality for a dinner waiting too long that might be delivered to the customer late (and cold). Suppose that if the restaurant uses iPads to place orders and notify waiters when the customer's order is ready, the time on the order board (now an electronic order board) decreases from 5 minutes to 3 minutes, and the prepared order wait time decreases from 5 to 1 minutes. Recompute the total value-added and non-value-added time and cost for this scenario. Round your answer for the total revised time to the nearest whole number and round your answer for the total revised cost to three decimal places.
26, $14.920
Which statement is true of a process map?
A process map documents how work either is or should be accomplished.
Which of the following goods and services is an example of a flow shop process?
An insurance policy
______ is an example of a flow shop process.
Automobile production
Which of the following can be done to prevent mistakes in a process?
Design potential defects and errors out of the process.
_____ delineate the boundaries of a process.
Flowcharts
Which of the following defines a pathway in a service-delivery system?
It is a unique route through a service system.
_____ 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
_____ goods are configurations of standard parts, subassemblies, or services that can be selected by customers from a limited set.
Option
_____ has been defined as the fundamental rethinking and radical redesign of business processes to achieve dramatic improvements in critical, contemporary measures of performance, such as cost, quality, service, and speed.
Reengineering
Which statement 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.
Which statement is true of reengineering?
The goal of reengineering is to achieve quantum leaps in performance.
Which of the following is true of standard goods?
They are made in anticipation of customer demand and are stocked in inventory.
In the context of the processes used to produce goods and services, which of the following is a characteristic of projects?
They have a wide variation in specifications or tasks.
Which of the following is true of custom goods?
They have long customer wait times because they are designed to meet specific customers' specifications.
Which of the following is true of flow shop processes?
They require little or no setup or changeover time.
Which of the following is true of continuous flow processes?
They use highly specialized and automated equipment.
Break-even analysis is a simple approach to:
analyze profit or loss.
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
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
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; standardized
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
As one moves down the diagonal of the service-positioning matrix (SPM), the service-encounter activity sequence becomes:
less unique and more repeatable with fewer pathways.
______ is NOT one of the principal types of processes that are used to produce goods and services.
make-to-stock processes
_____ is NOT one of the four hierarchical levels of work.
mapping
A _____ is a unique route through a service system.
pathway
A _____ is the beginning or end of a process.
process boundary
A _____ describes the sequence of all process activities and tasks necessary to create and deliver a desired output or outcome.
process map
A _____ is a characterization of product growth, maturity, and decline over time.
product life cycle
The goal of _____ is to achieve quantum leaps in performance. This often involves asking basic questions about business processes.
reengineering
A low degree of ______ encourages more customization and more flexible equipment process designs.
repeatability
Unlike a high degree of repeatability of service encounters, a low degree of repeatability of service encounters:
results in higher relative cost per transaction.
In a process design, a _____ is a specific unit of work required to create an output.
task
Carbon dioxide emissions associated with a one-night stay in a hotel room are calculated at 28.17 kg of CO2 per room day for an average hotel. If your hotel's 250 rooms are all occupied for 2 days during a college football game, how much CO2 did the guests and hotel release into the atmosphere? Round your answer to the nearest whole number.
14,085 kg of CO2
Carbon dioxide emissions associated with a one-night stay in a hotel room are calculated at 29.38 kg of CO2 per room day for an average hotel. If your hotel's 150 rooms are all occupied for 4 days during a college football game, how much CO2 did the guests and hotel release into the atmosphere? Round your answer to the nearest whole number.
17,628 kg of CO2
Consider a value stream map for the order posting and fulfillment process in a restaurant shown in Exhibit 7.7. The chef's time is valued at $30 per hour, oven operation at $10 per hour, precooking order waiting time at $5 per hour, and post-cooking order waiting time at $60 per hour. The $60 estimate reflects the cost of poor quality for a dinner waiting too long that might be delivered to the customer late (and cold). Suppose that if the restaurant uses iPads to place orders and notify waiters when the customer's order is ready, the time on the order board (now an electronic order board) decreases from 5 minutes to 1 minutes, and the prepared order wait time decreases from 5 to 3 minutes. Recompute the total value-added and non-value-added time and cost for this scenario. Round your answer for the total revised time to the nearest whole number and round your answer for the total revised cost to three decimal places.
25, $13.920
Consider a value stream map for the order posting and fulfillment process in a restaurant shown in Exhibit 7.7. The chef's time is valued at $30 per hour, oven operation at $10 per hour, precooking order waiting time at $5 per hour, and post-cooking order waiting time at $60 per hour. The $60 estimate reflects the cost of poor quality for a dinner waiting too long that might be delivered to the customer late (and cold). Suppose that if the restaurant uses iPads to place orders and notify waiters when the customer's order is ready, the time on the order board (now an electronic order board) decreases from 5 minutes to 3 minutes, and the prepared order wait time decreases from 5 to 3 minutes. Recompute the total value-added and non-value-added time and cost for this scenario. Round your answer for the total revised time to the nearest whole number and round your answer for the total revised cost to three decimal places.
26, $14.003
School buses have started to incorporate a procedure to prevent students being left on the bus at the end of the school day. At the end of a driver's day, the driver must check the seats in the bus. When they verify that the bus is empty, they must push and hold a button at the back. If the driver forgets this step, the bus will repeatedly honk its horn until the process is complete. Which type of service error below is this poka-yoke being put in place for?
A customer error during an encounter
A local ice cream shop is experiencing an error with the contamination of their dairy-free ice creams. The spoons being used to scoop ice cream containing dairy are also being used to scoop ice cream not containing dairy. The manager of the store decides to purchase two colors of ice cream scoops, one for dairy ice cream and one for non-dairy ice cream. These scoops are placed in separate areas to further avoid mix-ups. What service error is the related poka-yoke being set in place for?
A tangible error
Which statement is true of custom goods?
Custom goods are produced on demand.
What production process is most likely to be used when there are low/no setup times, similar products and dominant production lines?
Flow shop
_____ are organized around a fixed sequence of activities and process steps, such as an assembly line, to produce a limited variety of similar goods or services.
Flow shop processes
Which statement is true of flow shop processes?
Flow shop processes are organized around a fixed sequence of activities and process steps.
______ : is NOT one of the three ways to prevent mistakes.
Identify defects and errors and place blame on workers
A product that is in the introductory phase of the product life cycle and is still being produced at low volumes is most likely to be produced using what production process?
Job shop
What production process is most likely to be used when there are high setup times, customized products, many different products and highly skilled employees?
Job shop
What production process is most likely to be used when there are low/no setup times, similar products and dominant production lines?
Job shop
________ are organized around particular types of general-purpose equipment that are flexible and capable of customizing work for individual customers.
Job shop processes
_____ is an approach for mistake-proofing processes using automatic devices or simple methods to avoid human error.
Poka-yoke
______ is an approach for mistake-proofing processes using automatic devices or simple methods to avoid human error.
Poka-yoke
_____ 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
________ 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
_____ constrain customers to follow a very small number of possible and predefined pathways through the service system.
Provider-routed services
Steel, paper, power-generating facilities are goods and services that are best classified as:
continuous flow processes.
_______ 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
The service-encounter activity sequence depends on the:
degree of repeatability of the service-encounter activity sequence.
A _____ is a symbol used in process maps to denote an input or arrival into a process.
double-headed arrow
The key difference between a value stream map and an ordinary process map is that a value stream map _______
highlights value-added versus non-value-added activities
Management strategies to improve process designs of services focus on:
increasing product and service quality by reducing defects and service upsets.
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
Eliminating _____ in a process design is one of the most important responsibilities of operations managers.
non-value-added activities
______ 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
A(n) _____ is a symbol used in process maps to indicate waiting.
triangle
Non-value-added activities in a process design can be eliminated by:
using value stream mapping.
The _____ stream refers to all value-added activities involved in designing, producing, and delivering goods and services to customers.
value
