Product Design and Process Selection

1. Among the characteristics of an intermittent production process is: a. high and even machine utilization b. low work-in-process inventories c. ability to produce a variety of products d. quality leadership

C

10. When production volumes are high, process decisions are more likely to favor a. more customer involvement b. less capital intensity c. less resource flexibility d. less vertical integration e. less automation

C

13. Which of the following statements about customer involvement is best? a. In service industries, customer contact is of minor importance. b. A firm that products standardized products often seeks customer specifications. c. For services that directly involve the customer, the customer often dictates the time of the service. d. When customer involvement is highly customized, a process is more likely to use a standardized-services process rather than a customized-services process. e. Empowered employees are not necessary when there is high customer involvement.

C

14. Which of the following statements on continuous improvement and reengineering is best? a. Only continuous improvement processes make use of cross-functional teams. b. Reengineering focuses on business processes while continuous improvement focuses on people processes. c. Reengineering starts with a "clean slate" whereas continuous improvement looks for ways to incrementally improve. d. Continuous improvement only focuses on critical or core processes. e. Continuous improvement programs and reengineering efforts are universally embraced by both managers and workers.

C

15. Analysis of a process is most likely to be economically beneficial if the process is a. the first operation on an assembly line b. a very fast operation c. a bottleneck operation d. the last operation on an assembly line e. an operation that is rarely performed

C

11. Which of the following statements concerning process management is true? a. Capital intensity depends on the mix of equipment and human skills in a production process: the greater the relevant cost of equipment to human labor, the greater the capital intensity. b. High resource flexibility is required when high volumes are to be produced at low costs. c. With a customized-services process, the workforce and the customer rarely interact. d. High customer involvement usually means more capital intensity and less resource flexibility e. A project process is utilized when multiple units of a standard product are to be made.

a

3. Products built in anticipation of demand and sold from inventory are classified as: a. make-to-stock b. make-to-order c. assemble-to-order d. mass customized e. flexible ordering

a

6. A job shop process requires a. organizing the resources around the process b. a line flow strategy c. perfectly predictable customer demands d. the same sequence of steps for each job e. high equipment utilization

a

9. Which of the following statements about vertical integration is true? a. As a firm performs more processes itself, from acquiring materials to final delivery to customers, the more vertically integrated it is. b. By owning its own distribution channels, a company exhibits backward integration. c. As a firm performs fewer processes itself, from acquiring materials to final delivery to customers, the more vertically integrated it is. d. By owning its own distribution channels, a company exhibits outsourcing. e. A key advantage of integration is the ability of the firm to easily merge organizations with little risk.

a

12. Which of the following statements about process management is best? a. The traditional relationship between capital intensity and resource flexibility if that if one is high, so is the other. b. When customization must be high, equipment should be general purpose, and employees need to perform a broader range of duties. c. Creating a more capital intensive process tends to reduce the fixed cost and raise the variable unit cost. d. Economies of scope mean that a process should be devoted to a single product or service to achieve high volumes. e. Economies of scale mean that a process should be devoted to a variety of products or services to achieve customization.

b

16. Which of the following statements concerning flow diagrams is not true? a. Flow diagrams can take many forms. b. Flow diagrams are useful in business process reengineering, but not in continuous improvement. c. It is helpful on flow diagrams to label each step with process measurements such as cost, capacity or elapsed time. d. Flow diagrams trace the flow of information, customers, equipment, employees or materials through a process. e. A line of visibility is used to separate different functional areas in the process.

b

7. Which of the following statements about process choice is best? a. A batch process typically has a standard sequence of operations through the facility. b. Continuous processes are very capital intensive. c. Automobiles are an example of a product created using a continuous process. d. Items made in a job shop require a higher level of quality than those items made from a continuous process. e. Custom cakes made in a bakery are an example of a product created using a batch process.

b

8. Which of the following statements concerning vertical integration is true? a. A high level of vertical integration is likely to be attractive when volumes are low. b. Make-or-buy decisions relate primarily to forward integration. c. A company owning its own distribution channels is an example of backward integration. d. Opting for a higher level of vertical integration implies less outsourcing. e. Forward integration represents movement towards the sources of raw materials and parts.

d

2. A product-oriented layout is characterized by: a. high product variety b. grouping of similar machines in work centers c. low and uneven machine utilization d. a high level of materials handling e. equipment arrangement based on the sequence of operations

e

4. Low-volume and high variety production is best undertaken by: a. process focused manufacturing b. product focused manufacturing c. job shop type operations d. a, b, & c e. a & c

e

5. The difference between process focus and product focus is in: a. the degree of flexibility of the production system b. the extent of product customization c. the volume of production per product d. product variety e. all of the above

e