SCMA 2

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15000 units

4,000 units, with B more profitable at low volumes

The Academic Computing Center has five trainers available in its computer labs to provide training sessions to students. Assume that the capacity of the system is 1900 students per semester and the utilization is 90%. If the number of students who actually got their orientation session is 1500, what is the efficiency of the system?

87.7%

The staff training center at a large regional hospital provides training sessions in CPR to all employees. Assume that the capacity of this training system was designed to be 1200 employees per year. Since the training center was first put in use, the program has become more complex, so that 1050 now represents the most employees that can be trained per year. In the past year, 950 employees were trained. The efficiency of this system is approximately _____ and its utilization is approximately _____.

90.5 percent; 79.2 percent

14) Which of the following products is likely to be assembled on a repetitive process line? A) automobiles B) custom personal computers C) custom cakes D) steel E) beer

26) Which of the following phrases best describes process focus? A) low volume, high variety B) Finished goods are usually made to a forecast and stored. C) Operators are less broadly skilled. D) high fixed costs, low variable costs E) low inventory

A big advantage of a process-oriented layout is: A) its flexibility in equipment and labor assignments. B) its low cost. C) the simplified scheduling problem presented by this layout strategy. D) the ability to employ low-skilled labor. E) its high equipment utilization.

An engineering drawing shows the: A) dimensions, tolerances, materials, and finishes of a component. B) dimensions, tolerances, cost, and sales or use volume of a component. C) materials, finishes, machining operations, and dimensions of a component. D) cost, materials, tolerances, and lead-time for a component. E) cost, dimensions, and machining operations for a component

Companies can improve the triple bottom line with sustainability by minimizing what four things? A) raw material, energy, water, and waste B) raw material, transport, manufacture, and disposal C) people, planet, profit, and pollution D) pollution, carbon footprint, profit, and people E) lawsuits, advertisements, coupons, and layoffs

Group technology requires that: A) each component be identified by a coding scheme that specifies size, shape, and the type of processing. B) a specific series of engineering drawings be prepared. C) all bills of material be prepared using the same format. D) engineering change notices be linked to each of the bills of material and engineering notices. E) the final products be standardized.

In the office relationship chart, which rating reflects the highest importance for two departments' closeness to each other? A) A B) E C) I D) O E) X

In which stage of the product life cycle should product strategy focus on process modifications as the product is being "fine-tuned" for the market? A) introduction B) growth C) maturity D) decline E) incubation

Mathematically, takt time is: A) total work time available divided by units required. B) units required divided by workers required. C) a fictional time increment similar to a therblig. D) workers required divided by total operation time required. E) units required divided by total work time available.

One way to think of sustainability is to consider the systems necessary to support the triple bottom line of the three Ps, which are: A. people, planet, and profit. B. price, promotion, and product. C. people, places, and products. D. people, pollution, and profit. E. price, promotion, and profit.

Resources held by the public are also said to be held in what? A. the common B. contempt C. the system D. perpetuity E. escrow

The three major elements of the product decision are: A) selection, definition, and design. B) goods, services, and hybrids. C) strategy, tactics, and operations. D) cost, differentiation, and speed of response. E) legislative, judicial, and executive.

What is the use of information technology to control machinery? A) CAM B) CAD C) QFD D) DFMA E) STEP

What percentage of sales from new products is indicative of industry leaders? A) 50% B) 7.5% C) 10 to 15% D) above 75% E) 20 to 25%

What percentage of the manufacturing process from Subaru's Lafayette, Indiana, plant goes to the landfill? A. 0% B. 15% C. 12.5% D. 2% E. 5%

Which of the following is NOT a service design technique used to increase service efficiency? A) increase customer interaction B) delay customization C) automation D) modularization E) limit the options

Which of the following would likely cause a change in market opportunities based upon levels of income and wealth? A) economic change B) sociological and demographic change C) technological change D) political change E) legal change

4) Industrial location analysis typically attempts to: A) minimize costs. B) maximize sales. C) focus more on human resources. D) avoid countries with strict environmental regulations. E) ignore exchange rates and currency risks.

Answer: A) minimize costs.

19) The transportation model, when applied to location analysis: A) minimizes total fixed costs. B) minimizes total production and transportation costs. C) minimizes total transportation costs. D) maximizes revenues. E) minimizes the movement of goods.

Answer: B) minimizes total production and transportation costs.

6) A location decision for a traditional department store (e.g., Macy's) would tend to have what type of focus? A) cost focus B) labor focus C) revenue focus D) environmental focus E) education focus

Answer: C) revenue focus

5) Which of the following is among the eight determinants of revenue and volume for a service firm? A) uniqueness of the firm's and the competitors' locations B) quality of the competition C) quality of management D) purchasing power of the customer-drawing area E) all of the above

Answer: E) all of the above

2) The factor-rating method can consider both tangible and intangible costs.

Answer: TRUE

A graphic technique for defining the relationship between customer desires and product (or service) is: A) product lifecycle management. B) the house of quality. C) the moment of truth. D) the assembly drawing. E) modular design.

An assembly drawing: A) shows, in schematic form, how the product is assembled. B) shows an exploded view of the product. C) lists the operations, including assembly and inspection, necessary to produce the component with the material specified in the bill of material. D) provides detailed instructions on how to perform a given task. E) describes the dimensions and finish of each component

The typical goal used when developing a process-oriented layout strategy is to: A) minimize the distance between adjacent departments. B) minimize the material handling costs. C) maximize the number of different tasks that can be performed by an individual machine. D) minimize the level of operator skill necessary. E) maximize job specialization.

When should product strategy focus on forecasting capacity requirements? A) at the introduction stage of the product life cycle B) at the growth stage of the product life cycle C) at the maturity stage of the product life cycle D) at the decline stage of the product life cycle E) at the saturation stage of the product life cycle

Which of the following is NOT an advantage of work cells? A) reduced direct labor cost B) decreased equipment and machinery utilization C) heightened sense of employee participation D) reduced raw material and finished goods inventory E) reduced investment in machinery and equipment

Which of the following is NOT one of the requirements of cellular production? A) testing (poka-yoke) at each station in the cell B) adequate volume for high equipment utilization C) a high level of training, flexibility, and empowerment of employees D) being self-contained, with its own equipment and resources E) identification of families of products, often through the use of group technology codes or equivalents

A listing of the hierarchy of components, their description, and the quantity of each required to make one unit of product is the ________.

Bill of material

how are modules useful in manufacturing

By using modules, the final product can be quickly assembled.

12) "Operators simply load new programs, as necessary, to produce different products" describes: A) CAD. B) automated guided vehicles. C) flexible manufacturing systems. D) vision systems. E) process control.

32) Product focused processes: A) allow more customization, but are not very efficient. B) are desirable because resource needs increase slowly with the complexity of a process. C) are processes that are specialized for relatively few products or customer groups. D) apply only to service firms, not to manufacturers. E) are profitable because customers demand flexibility, not specialization.

Boeing's 737 airplane and Hewlett-Packard's printer business are examples of using enhancements and migrations of existing products to build on a ________. A) product template B) product pulpit C) product platform D) product dais E) product foundation

Bridget's Hamburger Stand uses only 7 ingredients but offers 15 different burgers. This process is known as: A) Robust design. B) QFD. C) Modular design. D) CAD. E) Value analysis

Reducing the complexity of a product and improving a product's maintainability are activities of: A) product lifecycle management (PLM). B) product-by-value analysis. C) manufacturability and value engineering. D) organizing for product development. E) design for destruction (DFD

Regal Marine: A) no longer builds boats with any wooden parts. B) has replaced all human labor with robots. C) treats the product design decision as critical to its success. D) gets its competitive advantage by being the low-cost producer of boats designed by others. E) designs several new boats each year, but contracts other firms for their manufacture.

The assumptions necessary for a successful product-oriented layout include all EXCEPT which of the following? A) adequate volume for high equipment utilization B) standardized product C) volatile product demand D) adequately standardized supplies of raw materials and components E) All of the above are appropriate assumptions.

The hierarchy of components, their description, and the quantity of each required to make one unit of a product are documented on: A) a group technology listing. B) a route sheet. C) a bill of material. D) an engineering drawing. E) a work order.

The major problem addressed by the warehouse layout strategy is: A) minimizing difficulties caused by material flow varying with each product. B) requiring frequent close contact between forklift drivers and item pickers. C) addressing trade-offs between space and material handling. D) balancing product flow from one work station to the next. E) locating the docks near a convenient access point to the closest highway

What technology "builds" products by laying down successive thin layers of plastic, metal, glass, or ceramics? A) CAM B) STEP C) 3-D printing D) replicator E) virtual reality

Which of the following documents lists the operations necessary to produce the component with the material specified in the bill of material? A) an engineering drawing B) an assembly drawing C) a route sheet D) an assembly chart E) an operations chart

Which of the following does NOT support the retail layout objective of maximizing customer exposure to products? A) Locate high-draw items around the periphery of the store. B) Use prominent locations for high-impulse and high-margin items. C) Maximize exposure to expensive items. D) Use end-aisle locations. E) Convey the store's mission with the careful positioning of the lead-off department.

Which of the following is NOT a heuristic rule for assigning tasks to workstations in a product layout? A) longest tasks first B) in order of most number of following tasks C) median tasks first D) shortest tasks first E) in accordance with positional weight

Which of the following is true regarding value engineering? A) Value engineering occurs only after the product is selected and designed. B) Value engineering creates fragile design. C) Value engineering is oriented toward improvement of design. D) Value engineering occurs during production when it is clear the product is a success. E) Value engineering can save substantial amounts of product cost, but quality suffers.

Which of the following shows in schematic form how a product is assembled? A) an engineering drawing B) an assembly routing C) an assembly chart D) a route sheet E) a process sheet

Regal Marine's use of ________ has reduced product development time and reduced problems with tooling and production.

CAD

The use of information technology to control machinery is called ________.

CAM

Companies that practice ________ introduce policies that consider environmental, societal, and financial impacts in their decision making

CSR

Which of the following is false regarding capacity expansion?

Capacity may only be added in large chunks

23) Harley Davidson: A) utilizes job shops to make each of its modules. B) uses product focused manufacturing. C) uses a large number of modules to build a small number of different bikes. D) uses work cells to feed its assembly line. E) All of the above are true.

3) Which of the following is true regarding the concept of flexibility? A) It is the ability to respond with little penalty in time, cost, or customer value. B) It may be accomplished with digitally controlled equipment. C) It may involve modular or movable equipment. D) All of the above are true. E) None of the above is true.

5) In mass service and professional service, the operations manager should focus extensively on: A) automation. B) equipment maintenance. C) sophisticated scheduling. D) human resources. E) cost-cutting initiatives.

5) Which of the following is TRUE regarding vision systems? A) They are consistently accurate. B) They are modest in cost. C) They do not become bored. D) All of the above are true. E) None of the above is true.

9) A job shop is an example of a(n): A) repetitive process. B) continuous process. C) line process. D) intermittent process. E) specialized process.

A route sheet provides a(n): A) exploded view of the product. B) instruction to make a given quantity of a particular item. C) schematic showing how the product is assembled. D) sequence of operations necessary to produce the component. E) set of detailed instructions about how to perform a task.

A special arrangement of machinery and equipment to focus on production of a single product or group of related products" describes what layout type? A) fixed-position layout B) intermittent production C) job shop D) work cell E) warehouse layout

According to PCN analysis, service operations exist only within the area(s) of: A) independent processing. B) independent processing and surrogate interaction. C) independent processing and direct interaction. D) surrogate interaction and direct interaction. E) independent processing, surrogate interaction, and direct interaction

Payoffs, alternatives, and expected monetary values are terms associated with: A) virtual reality. B) product life-cycle management. C) quality function deployment. D) decision trees. E) make-or-buy analysis

The Japanese method of organizing for product design features: A) teams. B) product managers (champions). C) distinct departments with assigned tasks. D) a single organization without subdivision or individual teams. E) none of the above

The analysis tool that lists products in descending order of their individual dollar contribution to the firm is: A) decision tree analysis. B) Pareto analysis. C) breakeven analysis. D) product-by-value analysis. E) product life cycle analysis.

Transition to production refers to the act of moving a product to production from what? A) inventory B) the supplier C) the market D) development E) the wholesaler

Value analysis takes place: A) when the product is selected and designed. B) during the initial stages of production when something needs to be done to assure product success. C) when the product is first conceived. D) during the production process when it is clear that the new product is a success. E) when the product cost is very low.

What refers to meeting the needs of the present without compromising the ability of future generations to meet their needs? A) corporate social responsibility B) economic sustainability C) carbon footprint D) sustainability E) closed-loop supply chains

Which of the following constitutes a major trend influencing office layouts? A) downsizing B) globalization C) environmental issues D) off-site employees E) health issues

Which of the following product development strategies has the highest product development risk? A) acquiring the developer B) alliances C) joint ventures D) new internally developed products E) purchasing technology

11) Which of the following industries is most likely to have low equipment utilization? A) auto manufacturing B) commercial baking C) television manufacturing D) steel manufacturing E) restaurants

19) High fixed costs and low variable costs are typical of which approach? A) product B) process C) mass customization D) repetitive E) A and C

7) Value-stream mapping: A) is a variation of time-function mapping. B) examines the supply chain to determine where value is added. C) extends time function mapping back to the supplier. D) starts with the customer and works backwards. E) All of the above are true.

A good layout requires determining: A) material handling equipment. B) capacity and space requirements. C) environment and aesthetics. D) cost of moving between various work areas. E) all of the above

Quality function deployment (QFD): A) determines what will satisfy the customer. B) translates customer desires into the target design. C) is used early in the design process. D) is used to determine where to deploy quality efforts. E) all of the above

Resources held by the public are also said to be held in what? A) escrow B) the system C) contempt D) perpetuity E) the common

Slotting fees: A) are charged by retailers to stock a product. B) can amount to as much as $25,000. C) are not a part of Walmart's business practices. D) can reduce the ability of small businesses to introduce new products. E) all of the above

Which of the following is TRUE of random stocking? A) Because items are stocked randomly, accurate inventory records are not necessary. B) Its results always minimize handling costs. C) Products have their own permanent storage spot. D) Each pick can be of only one product. E) None of the above is true.

Which of the following is a disadvantage of product-oriented layout? A) There is a lack of flexibility necessary for handling a variety of products. B) High volume is required because of the large investment needed to establish the process. C) Work stoppage at any one point can tie up the whole operation. D) There is a lack of flexibility necessary for handling a variety of production rates. E) All of the above are disadvantages of product-oriented layouts.

Which of the following is one of the main advantages of a product-oriented layout? A) high customer exposure rates B) employability of highly skilled labor C) high flexibility D) low capital cost E) low variable cost per unit

Which of the following reduces product handling, inventory, and facility costs, but requires both (1) tight scheduling and (2) accurate inbound product information? A) phantom-docking B) random stocking C) ASRS D) customizing E) cross-docking

Which of the following represents an opportunity for generating a new product? A) understanding the customer B) demographic change, such as decreasing family size C) changes in professional standards D) economic change, such as rising household incomes E) All of the above are such opportunities

Which of these statements regarding Regal Marine is TRUE? A) Product design is a critical decision for the firm. B) Regal uses a three-dimensional CAD system to shorten product development time. C) Regal still uses some wooden parts and hand-produces some components. D) Regal's use of CAD has resulted in a superior product. E) All of the above are true.

A drawing that shows the dimensions, tolerances, materials, and finishes of a component is a(n) ________.

Engineering Drawing

A focused work center is well suited to the production of a large family of products requiring similar processing, even if their demands are not very stable. True or False?

FALSE

A product requires 24 separate tasks, and the sum of those task times is 14 minutes. If the cycle time is 2 minutes, then at least 12 workstations will be needed. True or False?

FALSE

Heuristics are problem-solving procedures that mathematically optimize the solution True or False?

FALSE

Process-oriented layouts typically have low levels of work-in-process inventory. True or False?

FALSE

Product-oriented layouts tend to have high levels of work-in-process inventories True or False?

FALSE

The biggest advantage of a product layout is its flexibility to handle a varied product mix. True or False?

FALSE

The dominant problem associated with the fixed-position layout is that workers are fixed in position, and they cannot be reassigned. True or False?

FALSE

The minimum number of workstations depends upon the set of task times and the precedence chart, but not the number of units scheduled. True or False?

FALSE

The work cell layout, a special arrangement of machinery and personnel to focus on the production of a single product or group of related products, is for manufacturing applications and has no relevance to services. True or False?

FALSE

Utilization of the total "cube" is the dominant consideration in office layout. True or False?

FALSE

15) A(n) ________ uses an automated work cell controlled by electronic signals from a common centralized computer facility.

FMS

17) Identify nine areas of technology that enhance production and productivity.

FMS,ASRS,RFID, Process control, AIS, robots, machines, Vision systems, automatic guided vehicles

An assembly chart shows an exploded view of the product, usually a three-dimensional or isometric drawing

Fales

1) Professional services typically require low levels of labor intensity.

False

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

Break-even analysis identifies the volume at which fixed costs and revenue are equal.

False

Break-even analysis is a powerful analytical tool, but is useful only when the organization produces a single product.

False

Building an additional warehouse is an incremental expansion, not a one-step expansion

False

Capacity decisions are based on technological concerns, not demand forecasts.

False

Computer-aided design (CAD) refers to the use of specialized computer programs to direct and control manufacturing equipment

False

Flowcharts use distance, but not time, to show the movement of material, product, or people through a process.

False

In the maturity stage of the product life cycle, operations managers will be particularly concerned with adding capacity or enhancing existing capacity to accommodate the increase in product demand.

False

Managerial decision making that considers environmental, societal, and financial impacts is known as sustainability

False

Meeting the needs of the present without compromising the ability of future generations to meet their needs is known as corporate social responsibility

False

Modular design exists only in tangible products; it makes no sense in services

False

The net present value of $10,000 to be received in exactly three years is considerably greater than $10,000.

False

Utilization is the number of units a facility can hold, receive, store, or produce in a period of time.

False

4) ________ involves the ability to respond with little penalty in time, cost, or customer value.

Flexibility

10) What is a drawing of the movement of material, product, or people?

Flowchart

11) A(n) ________ uses symbols to analyze the movement of people or material.

Flowchart

37) ________ represent an organization's attempt to gain increased efficiency through specialization, which can include, for example, concentrating on certain classes of customers.

Focused processes

9) 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.

Focuses on providers interaction with customer

In the ________ phase of the product life cycle, the product design has begun to stabilize

Growth

25) Which of the following phrases best describes product focus? A) low volume, high variety B) Finished goods are usually made to order. C) Processes are designed to perform a wide variety of activities. D) high fixed costs, low variable costs E) high inventory

High fixed costs, low variable costs

12) 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.

High volume, low variety

Products or services designed in easily segmented components are known as ________ designs

Modular

13) Which one of the following products is most likely made in a job shop environment? A) rolls of newsprint B) paper forms C) television sets D) cigarettes E) canned vegetables

Paper forms

Within PCN analysis, a(n) ________ is a sequence of steps that accomplishes an identifiable purpose (of providing value to process participants

Process chain

33) An organization's approach to transforming resources into goods and services is called its ________.

Process strategy

Boeing's 737 airplane and Hewlett-Packard's printer business are examples of using enhancements and migrations of existing products to build on a(n) ________.

Product platform

________ lists products in descending order of the individual dollar contribution to the firm

Product value analysis

________ is a process for determining customer requirements and translating them into attributes that each functional area can understand and act upon

QFD

7) Which of the following technologies could enable a cashier to scan the entire contents of a shopping cart in seconds? A) ASRS B) AGV C) CAD/CAM D) RFID E) FMS

RFID (radio frequency identification )

35) ________ is a process strategy based on a product-oriented production process that uses modules.

Repetitive focus

If a design can be produced to requirements even when the production process has unfavorable conditions, the design is said to be ________.

Robust

________ provides a format allowing the electronic transmittal of three-dimensional data.

STEP

A design for disassembly cost-benefit analysis compares the amount of revenue that might be reclaimed against the cost of disposing of the product at its end-of-life.

Firms that do not consider the impact of their decisions on all of their stakeholders see reduced sales and profits.

If the schedule calls for the production of 120 units per day and 480 minutes of production time are available per day, the cycle time would be 4 minutes. True or False?

TRUE

Job lots are groups or batches of parts processed together. True or False?

TRUE

One drawback of a product-oriented layout is that work stoppage at any one point ties up the whole operation. True or False?

TRUE

One guideline for a retail layout is to locate high-draw items around the periphery of the store. True or False?

TRUE

One guideline for determining the arrangement and space allocation of a retail store is to place high-impulse and high-margin items in prominent locations. True or False?

TRUE

Servicescape refers to the physical surrounding in which the service is delivered. True or False?

TRUE

The layout approach that addresses trade-offs between space and material handling is called the fixed-position layout. True or False?

TRUE

The most common tactic to arrange departments in a process-oriented layout is to minimize material handling costs. True or False?

TRUE

The objective of layout strategy is to develop an effective and efficient layout that will meet the firm's competitive requirements. True or False?

TRUE

The work cell improves layouts by reducing both floor space and direct labor cost. True or False?

TRUE

8) Provide an example of the focus strategy for improving service productivity.

The focus strategy refers to restricting the offerings

Rapidly developing products and moving them to the market is referred to as ________.

Time based competition

) One use of camera-and-computer-based vision systems is to replace humans doing tedious and error-prone visual inspection activities.

True

1) A firm's process strategy is its approach to transforming resources into goods and services.

True

1) A value-stream map includes both (1) inventory quantities, and (2) symbols for customers and suppliers.

True

1) Process control is the use of information technology to monitor and control a physical process.

True

8) The term focused processes refers to the quest for increased efficiency, whether in goods or services, that results from specialization.

True

A useful tactic for increasing capacity is to redesign a product in order to get more throughout.

True

According to PCN analysis, firms intending to provide a value offering that focuses on customization should be positioned more toward the consumer's process domain

True

Changes in capacity may lead, lag, or straddle the demand.

True

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

True

Economic sustainability means appropriately allocating scarce resources to make a profit

True

Expected output is sometimes referred to as rated capacity.

True

Fixed costs are those costs that continue even if no units are produced.

True

The customer may participate in the design of, and in the delivery of, services

True

The moment-of-truth is the crucial moment between the service provider and the customer that exemplifies, enhances, or detracts from the customer's expectations

True

The objective of the product decision is to develop and implement a product strategy that meets the demands of the marketplace with a competitive advantage

True

Those resources held in the common are often misallocated

True

When selecting new equipment and technology, decision makers look for flexibility—the ability to respond with little penalty in time, cost, or customer value.

True

________ reviews successful products for improvement during the production process

Value Analysis

12) A special form of time-function mapping, which goes beyond the organization into its supply chain, is ________.

Valuestream mapping

17) One of the similarities between process focus and mass-customization is: A) the volume of outputs. B) the use of modules. C) many departments and many routings. D) the variety of outputs. E) All of the above are similarities.

Variety of outputs

Which of the following statements regarding fixed costs is true?

While fixed costs are ordinarily constant with respect to volume, they can "step" upward if volume increases result in additional fixed costs.

. A capacity alternative has an initial cost of $50,000 and cash flow of $20,000 for each of the next four years. If the cost of capital is 5 percent, the net present value of this investment is approximately a. $20,920 b. $26,160 c. $49,840 d. $70,920 e. $106,990

A product sells for $5, and has unit variable costs of $3. This product accounts for $20,000 in annual sales, out of the firm's total of $60,000. The weighted contribution of this product is approximately a. 0.133 b. 0.200 c. 0.40 d. 0.667 e. $1.667

If demand exceeds capacity, an organization can use which of the following to adjust demand to an existing facility?

aggressive marketing

An exploded view of the product is a(n) ________.

assembly drawing

Basic break-even analysis typically assumes that a. revenues increase in direct proportion to the volume of production, while costs increase at a decreasing rate as production volume increases b. variable costs and revenues increase in direct proportion to the volume of production c. both costs and revenues are made up of fixed and variable portions d. costs increase in direct proportion to the volume of production, while revenues increase at a decreasing rate as production volume increases because of the need to give quantity discounts e. All of the above are assumptions in the basic break-even model.

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

The basic break-even model can be modified to handle more than one product. This extension of the basic model requires a. price and sales volume for each product b. price and variable cost for each product, and the percent of sales that each product represents c. that the firm have very low fixed costs d. that the ratio of variable cost to price be the same for all products e. sales volume for each product

Which of the following statements regarding fixed costs is true? a. Fixed costs rise by a constant amount for every added unit of volume. b. While fixed costs are ordinarily constant with respect to volume, they can "step" upward if volume increases result in additional fixed costs. c. Fixed costs are those costs associated with direct labor and materials. d. Fixed costs equal variable costs at the break-even point. e. Fixed cost is the difference between selling price and variable cost.

Which of the following costs would be incurred even if no units were produced?

building rental costs

A capacity alternative has an initial cost of $50,000 and cash flow of $20,000 for each of the next four years. If the cost of capital is 5 percent, the net present value of this investment is a. greater than $80,000 b. greater than $130,000 c. less than $30,000 d. impossible to calculate, because no interest rate is given e. impossible to calculate, because variable costs are not known

Adding a complementary product to what is currently being produced is a demand management strategy used when a. demand exceeds capacity b. capacity exceeds demand for a product which has stable demand c. the existing product has seasonal or cyclical demand d. price increases have failed to bring about demand management e. efficiency exceeds 100 percent

Christopher's Cranks uses a machine that can produce 100 cranks per hour. The firm operates 12 hours per day, five days per week. Due to regularly scheduled preventive maintenance, the firm expects the machine to be running during approximately 95% of the available time. Based on experience with other products, the firm expects to achieve an efficiency level for the cranks of 85%. What is the expected weekly output of cranks for this company? a. 5100 b. 5700 c. 4845 d. 969 e. 6783

Fred's Fabrication, Inc. wants to increase capacity by adding a new machine. The firm is considering proposals from vendor A and vendor B. The fixed costs for machine A are $90,000 and for machine B, $70,000. The variable cost for A is $9.00 per unit and for B, $14.00. The revenue generated by the units processed on these machines is $20 per unit. The crossover between machine A and machine B is a. 4,000 units, with A more profitable at low volumes b. 4,000 dollars, with A more profitable at low volumes c. 4,000 units, with B more profitable at low volumes d. 4,000 dollars, with B more profitable at low volumes e. none of the above

When decision trees are used to analyze capacity decisions, a. "do nothing" is not a possible decision alternative b. probabilities must be assigned to each of the decision alternatives c. states of nature are often demand-based, as in "market favorability" d. states of nature must be known with certainty e. fixed costs are not relevant

Which of the following represents a common way to manage capacity in the service sector? a. appointments b. reservations c. changes in staffing levels d. first-come, first served service rule e. "early bird" specials in restaurants

Effective capacity is the

capacity a firm expects to achieve given the current operating constraints

Of the four approaches to capacity expansion, the approach that "straddles" demand

choices a and c are both correct

Inputs to a production system that do not have market prices are those held in the ________.

common

A fabrication company wants to increase capacity by adding a new machine. The firm is considering proposals from vendor A and vendor B. The fixed costs for machine A are $90,000 and for machine B, $75,000. The variable cost for A is $15.00 per unit and for B, $18.00. The revenue generated by the units processed on these machines is $21 per unit. If the estimated output is 5000 units, which machine should be purchased? a. machine A b. machine B c. either machine A or machine B d. no purchase because neither machine yields a profit at that volume e. purchase both machines since they are both profitable

A shop wants to increase capacity by adding a new machine. The firm is considering proposals from vendor A and vendor B. The fixed costs for machine A are $90,000 and for machine B, $75,000. The variable cost for A is $15.00 per unit and for B, $18.00. The revenue generated by the units processed on these machines is $22 per unit. If the estimated output is 9,000 units, which machine should be purchased? a. machine A b. machine B c. either machine A or machine B d. no purchase because neither machine yields a profit at that volume e. purchase both machines since they are both profitable

Break-even analysis can be used by a firm that produces more than one product, but a. the results are estimates, not exact values b. the firm must allocate some fixed cost to each of the products c. each product has its own break-even point d. the break-even point depends upon the proportion of sales generated by each of the products e. None of these statements is true.

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. The break-even point for machine A is a. $90,000 dollars b. 90,000 units c. $15,000 dollars d. 15,000 units e. cannot be calculated from the information provided

Net present value will be greater a. as a fixed set of cash receipts occurs later rather than earlier b. as the total of the cash receipts, made in same time periods, is smaller c. for one end-of-year receipt of $1200 than for twelve monthly receipts of $100 each d. for a 4% discount rate than for a 6% discount rate e. All of the above are true.

What is sometimes referred to as rated capacity? a. efficiency b. utilization c. effective capacity d. expected output e. design capacity

Which of the following costs would be incurred even if no units were produced? a. raw material costs b. direct labor costs c. transportation costs d. building rental costs e. purchasing costs

Which of the following is false regarding capacity expansion? a. "Average" capacity sometimes leads demand, sometimes lags it. b. If "lagging" capacity is chosen, excess demand can be met with overtime or subcontracting. c. Total cost comparisons are a rather direct method of comparing capacity alternatives. d. Capacity may only be added in large chunks. e. All of the above are true.

Break-even is the number of units at which a. total revenue equals price times quantity b. total revenue equals total variable cost c. total revenue equals total fixed cost d. total profit equals total cost e. total revenue equals total cost

Net present value a. is gross domestic product less depreciation b. is sales volume less sales and excise taxes c. is profit after taxes d. ignores the time value of money e. is the discounted value of a series of future cash receipts

Of the four approaches to capacity expansion, the approach that "straddles" demand a. uses incremental expansion b. uses one-step expansion c. at some times leads demand, and at other times lags d. works best when demand is not growing but is stable e. Choices a and c are both correct.

Which of the following is not one of the four approaches to capacity expansion? a. average capacity with incremental expansion b. lead demand with incremental expansion c. lag demand with incremental expansion d. lead demand with one-step expansion e. lag demand with one-step expansion

Corporate social responsibility involves managerial decision making that considers what three impacts?

environmental, societal, financial

In analyzing product design decisions, decision trees determine the ________ of each course of action.

expected value

15) Identify the five major tools of process analysis and design. Describe them in a sentence or two each.

flowchart, service blueprinting, value stream mapping, process chart, time function mapping

An organization whose capacity is on that portion of the average unit cost curve that falls as output rises

has a facility that is below optimum operating level and should build a larger facility

Finding the optimum operating level (or volume)

is based on the concept of economies and diseconomies of scale

Why do modern managers look for flexibility in their equipment

it gives managers with the ability to respond to changes in demand with little penalty in time, cost, or customer value

Which of the following is not one of the four approaches to capacity expansion?

lag demand with one-step expansion

36) ________ is a rapid, low-cost production process that caters to constantly changing unique customer desires.

mass customization

Design capacity is the

maximum theoretical output of a system in a given period under ideal conditions

no purchase because neither machine yields a profit at that volume

38) Why is Harley-Davidson identified as a repetitive manufacturer, not a mass customizer?

not as individualized

7) The strategy for improving service productivity that customizes at delivery, rather than at production, is ________.

postponement

The basic break-even model can be modified to handle more than one product. This extension of the basic model requires

price and variable cost for each product, and the percent of sales that each product represents

13) ________ is the use of information technology to control a physical process.

process control

6) The use of information technology to monitor and control a physical process is known as: A) process control. B) computer-aided design. C) information numeric control. D) numeric control. E) IT oversight.

process control

Identify the four basic process strategies

process focus, product focus, repetitive focus, mass customization

Throughout is

synonymous with capacity

Basic break-even analysis typically assumes that

variable costs and revenues increase in direct proportion to the volume of production

0.133

A document for production that gives the instruction to make a given quantity of a particular item, usually to a given schedule, is a(n): A) work order. B) route sheet. C) bill of information. D) assembly chart. E) value analysis.

A restaurant kitchen contains a wall poster that shows, for each sandwich on the menu, a sketch of the ingredients and how they are arranged to make the sandwich. This is an example of a(n): A) assembly drawing. B) route sheet. C) bill of material. D) work order. E) assembly chart

A result of concurrent engineering in product design is: A) speedier product development. B) lower quality. C) less customer demand. D) higher costs. E) all of the above

ASRS stands for which of the following? A) automated storage and retrieval system B) automated storage and recovery system C) automated scan and recognize system D) automated scan and retail system E) automated scan and retrieval system

An assembly chart: A) shows graphically how the product is assembled. B) shows an exploded view of the product. C) lists the operations, including assembly and inspection, necessary to produce the component with the material specified in the bill of material. D) provides detailed instructions on how to perform a given task. E) describes the dimensions and finish of each component

Corporate social responsibility involves managerial decision making that considers what three impacts? A. environmental, societal, and financial B. societal, legal, and financial C. environmental, legal, and financial D. environmental, legal, and societal E. educational, environmental, and societal

Cross-docking means which of the following? A) Avoid placing materials or supplies in storage by processing them as they are received. B) The same docks can be used either incoming or outbound shipments. C) The same dock is used to unload and then reload the same truck. D) Warehouse docks are designed in the shape of a cross. E) Docks are placed in the warehouse according to the direction (north, south, east, or west) from which the truck is arriving.

Four hundred and eighty minutes of production time are available per day. Scheduled production is 120 units per day. What is the required cycle time? A) 4 minutes B) 5 minutes C) 6 minutes D) 7 minutes E) 8 minutes

Solving a load-distance problem for a process-oriented layout requires that: A) the difficulty of movement be the same for all possible paths. B) pickup and setdown costs vary from department to department. C) the cost to move a load be the same for all possible paths. D) takt time be less than 1. E) Proplanner software examines all possible department configurations

The European Union Emissions Trading System works on what principle? A. cap-and-trade B. Thatcher's Theory of the Commons C. tax the richer companies more to pay for pollution control D. pollute-and-pay E. socialism

What is sometimes referred to as the fourth "R" of sustainability? A. improved reputation B. renew C. reproduce D. recover E. reclaim

What is the most critical phase in product life cycle assessment? A. product design B. disposal C. purchasing D. production E. shipping

What type of analysis focuses on the ways in which processes can be designed to optimize interaction between firms and their customers? A) PCN B) BOM C) OI D) DFMA E) PLM

Which of the following are all strategies for improving productivity in services? A) separation, self-service, automation, and scheduling B) lean production, strategy-driven investments, automation, and process focus C) reduce inventory, reduce waste, reduce inspection, and reduce rework D) high interaction, mass customization, service factory, and just-in-time E) process focus, repetitive focus, product focus, and mass customization focus

Which of the following is NOT one of McDonald's "seven major innovations"? A) the Happy Meal B) drive-through windows C) breakfast menus D) play areas E) self-service kiosks

Which of the statements below best describes office layout? A) positions workers, their equipment, and spaces/offices to provide for movement of information B) addresses the layout requirements of large, bulky projects such as ships and buildings C) seeks the best personnel and machine utilization in repetitive or continuous production D) allocates shelf space and responds to customer behavior E) deals with low-volume, high-variety production

Which type of layout features departments or other functional groupings in which similar activities are performed? A) process-oriented B) product-oriented C) fixed-position D) mass production E) unit production

9) Computer-integrated manufacturing (CIM) includes manufacturing systems that have:

A) computer-aided design, a flexible manufacturing system, inventory control, warehousing and shipping integrated.

14) ________ is a computer-controlled warehouse that provides for the automatic placement of parts into and from designated places within the warehouse.

ASRS

8) Which of the following provides automatic placement and withdrawal of parts and products into and from designated places in a warehouse? A) AGV B) CAD/CAM C) CIM D) ASRS E) FMS

ASRS Automated storage and retrieval system

17) A county wants to build one centrally-located processing facility to serve the county's four recycling drop-off locations. The four drop-offs have characteristics as given in the table below. What is the approximate center of gravity of these four locations? Location X-coordinate Y-coordinate Tonnage Drop-off point A 1 8 10 Drop-off point B 6 7 35 Drop-off point C 6 2 25 Drop-off point D 4 7 50 A) (4.75, 6.04) B) (17, 24) C) (33.5, 135.4) D) (6, 4.25) E) (570, 725)

Answer: A) (4.75, 6.04)

5) Which of the following statements regarding the center-of-gravity method is FALSE? A) It is designed to minimize the maximum possible travel distance to any of the locations. B) The optimal x- and y-coordinates are calculated separately. C) The optimal solution is unconstrained, so it could suggest a location in the middle of a body of water. D) The weights used are the quantity of goods moved to or from each location. E) The origin of the coordinate system and the scale used are arbitrary, just as long as the relative distances are correctly represented.

Answer: A) It is designed to minimize the maximum possible travel distance to any of the locations.

13) A firm is considering two location alternatives. At location A, fixed costs would be $4,000,000 per year, and variable costs $0.30 per unit. At alternative B, fixed costs would be $3,600,000 per year, with variable costs of $0.35 per unit. If annual demand is expected to be 10 million units, which plant offers the lowest total cost? A) Plant A, because it is cheaper than Plant B for all volumes over 8,000,000 units. B) Plant B, because it is cheaper than Plant A for all volumes over 8,000,000 units. C) Plant A, because it is cheaper than Plant B for all volumes. D) Plant B, because it has the lower variable cost per unit. E) Neither Plant A nor Plant B, because the crossover point is at 10 million units.

Answer: A) Plant A, because it is cheaper than Plant B for all volumes over 8,000,000 units.

16) East Texas Seasonings is preparing to build one processing center to serve its four sources of seasonings. The four source locations are at coordinates shown below. Also, the volume from each source is provided. What is the center of gravity? X-coordinate Y-coordinate Volume Athens, Texas 30 30 150 Beaumont, Texas 20 10 350 Carthage, Texas 10 70 100 Denton, Texas 50 50 200 A) X = 28.125; Y = 31.25 B) X = 22000; Y = 24000 C) X = 27.5; Y = 40 D) center of gravity = 28 E) X = 25; Y = 40

Answer: A) X = 28.125; Y = 31.25

5) A location decision for an appliance manufacturer would tend to have what type of focus? A) cost focus B) focus on finding very highly skilled technicians C) revenue focus D) environmental focus E) education focus

Answer: A) cost focus

8) Evaluating location alternatives by comparing their composite (weighted-average) scores involves which of the following? A) factor-rating analysis B) cost-volume analysis C) transportation model analysis D) linear regression analysis E) crossover analysis

Answer: A) factor-rating analysis

12) Which of the following is a location analysis technique typically employed by a service organization? A) purchasing power analysis B) linear programming C) queuing theory D) transportation method E) locational cost-volume analysis

Answer: A) purchasing power analysis

14) Which of the following is a location analysis technique typically employed by a manufacturing organization? A) transportation method B) queuing theory C) correlation analysis and traffic counts D) simulation E) demographic analysis

Answer: A) transportation method

7) La Quinta Inns has a competitive edge over its rivals because it: A) uses regression analysis to determine which variables most influence profitability. B) has better television advertisements. C) picks larger locations than its rivals. D) builds only along interstate highways. E) consistently receives four-star ratings for its inns.

Answer: A) uses regression analysis to determine which variables most influence profitability.

9) A clothing chain is considering two different locations for a new retail outlet. They have identified the four factors listed in the following table as the basis for evaluation, and have assigned weights as shown. The manager has rated each location on each factor, on a 100-point basis, as shown under the respective columns for Barclay and Chester. Factor Factor Description Weight Barclay Chester 1 Average community income .40 30 20 2 Community growth potential .25 40 30 3 Availability of public transportation .15 20 20 4 Labor cost .20 10 30 What is the score for Chester? A) 10.00 B) 24.50 C) 25.75 D) 27.00 E) 100.00

Answer: B) 24.50

28) Which of the following is the best example of the proximity rule that, for service firms, proximity to market is the most important location factor? A) Soft drinks are bottled in many local plants, where carbonated water is added to proprietary syrups that may have been shipped long distances. B) Few people will travel out-of state for a haircut. C) Patients will travel very long distances to have their hernia surgeries performed at Shouldice Hospital. D) Furniture makers choose to locate near the source of good hardwoods, even though it means locating near other furniture manufacturers. E) Metal refiners (smelters) locate near mines to accomplish significant weight reduction near the metal's source.

Answer: B) Few people will travel out-of state for a haircut.

16) Currency risk is based on what assumption? A) Firms that do not continuously innovate will lose market share. B) Values of foreign currencies continually rise and fall in most countries. C) Changing product lines by reacting to every current trend may alienate the customer base. D) The value of one dollar today is greater than the value of one dollar to be received one year from now. E) The U.S. stock market fluctuates daily.

Answer: B) Values of foreign currencies continually rise and fall in most countries.

10) What is an approach to location analysis that includes both qualitative and quantitative considerations? A) locational cost-volume analysis B) factor-rating method C) transportation model D) center-of-gravity method E) make-or-buy analysis

Answer: B) factor-rating method

18) Globalization of the location decision is the result of all EXCEPT which of the following? A) market economics B) higher quality of labor overseas C) ease of capital flow between countries D) high differences in labor costs E) more rapid, reliable travel and shipping

Answer: B) higher quality of labor overseas

15) The reason fast food restaurants often are found in close proximity to each other is: A) they enjoy competition. B) location clustering near high traffic flows. C) low cost. D) availability of skilled labor. E) all of the above.

Answer: B) location clustering near high traffic flows.

17) Governmental attitudes toward issues such as private property, intellectual property, zoning, pollution, and employment stability may change over time. What is the term associated with this phenomenon? A) bureaucratic risk B) political risk C) legislative risk D) judicial risk E) democratic risk

Answer: B) political risk

4) Which of the following is NOT among the eight determinants of revenue and volume for a service firm? A) quality of management B) shipment cost of finished goods C) purchasing power of the customer-drawing area D) uniqueness of the firm's and the competitors' locations E) competition in the area

Answer: B) shipment cost of finished goods

18) Production and transportation costs are always considered in which of the following location decision methods? A) traffic counts B) transportation model C) purchasing power D) proximity of markets E) clustering

Answer: B) transportation model

16) Which of the following is most likely to affect the location strategy of a manufacturing firm? A) appearance/image of the area B) utility costs C) purchasing power of drawing area D) competition in the area E) parking availability

Answer: B) utility costs

14) A employee produces 15 parts during a shift in which he made $90. What is the labor content of the product? A) $90 B) $5 C) $6 D) $0.167 E) $1,350

Answer: C) $6

3) Which of the following statements regarding FedEx is TRUE? A) Its hub in Memphis, Tennessee, was selected because of its low cost. B) Memphis, Tennessee, is the only hub in the company's global flight network. C) FedEx believes the hub system helps reduce mishandling and delays due to better controls. D) FedEx uses a hub system in the United States, but a city-to-city network in other countries. E) Memphis is FedEx's only hub airport in the United States.

Answer: C) FedEx believes the hub system helps reduce mishandling and delays due to better controls.

15) Which of the following assumptions is NOT associated with strategies for goods-producing location decisions? A) Most major costs can be identified explicitly for each site. B) Focus on identifiable costs. C) High customer-contact issues are critical. D) Intangible costs can be evaluated. E) Location is a major determinant of cost.

Answer: C) High customer-contact issues are critical.

12) ________ and ________ are to key country success factors as ________ and ________ are to key region success factors. A) Cultural issues, location of markets; site size and cost, zoning restrictions B) Exchange rates, labor availability; site size and cost, environmental impact C) Labor cost, currency risk; land costs, proximity to customers D) Land costs, proximity to customers; labor cost, air and rail systems E) All of the above are accurate relationships.

Answer: C) Labor cost, currency risk; land costs, proximity to customers

6) Traffic counts and purchasing power analysis of drawing area are techniques associated with: A) locational cost-volume analysis. B) a manufacturing location decision. C) a retail or professional service location decision. D) the factor-rating method. E) the transportation model.

Answer: C) a retail or professional service location decision.

13) A jewelry store is more likely than a jewelry manufacturer to consider ________ in making a location decision. A) transportation costs B) cost of raw materials C) appearance/image of the location D) quality of life E) taxes

Answer: C) appearance/image of the location

11) Among the following choices, an operations manager might best evaluate political risk of a country by looking at which type of country ranking? A) based on competitiveness B) based on cost of doing business C) based on corruption D) based on magnitude of government social programs E) based on average duration between presidential/prime minister elections

Answer: C) based on corruption

15) A regional bookstore chain wants to build a distribution center that is centrally located for its eight retail outlets. It will most likely employ which of the following tools of analysis? A) assembly line balancing B) load-distance analysis C) center-of-gravity method D) linear programming E) locational cost-volume analysis

Answer: C) center-of-gravity method

2) Geographic information systems can assist the location decision by: A) automating center-of-gravity problems. B) computerizing factor-rating analysis. C) combining geography with demographic analysis. D) updating transportation method solutions. E) providing good Internet placement for virtual storefronts.

Answer: C) combining geography with demographic analysis.

23) When making a location decision at the region/community level, which of these would be considered? A) government rules, attitudes, stability, incentives B) cultural and economic issues C) cost and availability of utilities D) zoning restrictions E) air, rail, highway, waterway systems

Answer: C) cost and availability of utilities

14) The center-of-gravity method is used primarily to determine what type of locations? A) service locations B) manufacturing locations C) distribution center locations D) supplier locations E) call center locations

Answer: C) distribution center locations

7) Which of the following methods best considers intangible costs related to a location decision? A) crossover methods B) locational cost-volume analysis C) factor-rating method D) the transportation method E) center-of-gravity method

Answer: C) factor-rating method

11) Which of the following is most likely to affect the location decision of a service firm rather than a manufacturing firm? A) energy and utility costs B) attitude toward unions C) parking and access D) cost of shipping finished goods E) labor costs

Answer: C) parking and access

19) In location planning, environmental regulations, cost and availability of utilities, and taxes are: A) global factors. B) country factors. C) regional/community factors. D) site-related factors. E) none of the above.

Answer: C) regional/community factors.

9) Traffic counts and demographic analysis of drawing area are associated with: A) the center-of-gravity method. B) manufacturing location decisions. C) service location decisions. D) the transportation model. E) locational cost-volume analysis.

Answer: C) service location decisions.

25) Tangible costs include which of the following? A) climatic conditions B) availability of public transportation C) taxes D) quality and attitude of prospective employees E) zoning regulations

Answer: C) taxes

24) Which of these factors would be considered when making a location decision at the site level? A) government rules, attitudes, stability, incentives B) cultural and economic issues C) zoning regulations D) cost and availability of utilities E) proximity to raw materials and customers

Answer: C) zoning regulations

13) Which of the following workers is the most productive? A) $50 wages, 10 parts produced B) $10 wages, 1 part produced C) $30 wages, 5 parts produced D) $100 wages, 21 parts produced E) $500 wages, 100 parts produced

Answer: D) $100 wages, 21 parts produced

12) A full-service restaurant is considering opening a new facility in a specific city. The table below shows its ratings of four factors at each of two potential sites. Factor Weight Gary Mall Belt Line Affluence of local population .20 30 30 Traffic flow .40 50 20 Parking availability .20 30 40 Growth potential .20 10 30 The score for Gary Mall is ________ and the score for Belt Line is ________. A) 120; 120 B) 22; 24 C) 18; 120 D) 34; 28 E) none of the above

Answer: D) 34; 28

10) Why is Northern Mexico used as a cluster for electronics firms? A) high traffic flows B) venture capitalists located nearby C) natural resources of land and climate D) NAFTA E) high per capita GDP

Answer: D) NAFTA

26) Intangible costs include which of the following? A) quality of prospective employees B) quality of education C) availability of public transportation D) all of the above E) none of the above

Answer: D) all of the above

20) Which of the following is usually NOT one of the top considerations in choosing a country for a facility location? A) availability of labor and labor productivity B) exchange rates C) attitude of governmental units D) zoning regulations E) location of markets

Answer: D) zoning regulations

2) FedEx chose Memphis, Tennessee, as its U.S. hub because: A) the city is in the center of the United States, geographically. B) the airport has relatively few hours of bad weather closures. C) it needed a means to reach cities to which it did not have direct flights. D) the firm believed that a hub system was superior to traditional city-to-city flight scheduling. E) All of the above are true.

Answer: E) All of the above are true.

27) Which of the following statements regarding "proximity" in the location decision is FALSE? A) Service organizations find that proximity to market is the most critical primary location factor. B) Manufacturers want to be near customers when their product is bulky, heavy, or fragile. C) Perishability of raw materials is a good reason for manufacturers to locate near the supplier, not the customer. D) Reduction in bulk is a good reason for a manufacturer to locate near the supplier. E) Clustering among fast food chains occurs because they need to be near their labor supply.

Answer: E) Clustering among fast food chains occurs because they need to be near their labor supply.

1) What describes a system that stores and displays information that can be linked to a geographic location? A) AIS B) LOC C) GLOC D) LIS E) GIS

Answer: E) GIS

7) As described in the book Aerotropolis, nowadays location decisions worldwide are often being based on what? A) rivers B) rail hubs C) interstate highways D) ports E) airports

Answer: E) airports

10) Location analysis techniques typically employed by service organizations include: A) the factor rating method. B) the center-of-gravity method. C) purchasing power analysis of area. D) traffic counts. E) all of the above.

Answer: E) all of the above.

6) Community attitudes, zoning restrictions, and quality of labor force are likely to be considered in which of the following location decision methods? A) transportation method B) locational cost-volume analysis C) center-of-gravity method D) simulation E) factor-rating method

Answer: E) factor-rating method

21) When making a location decision at the country level, which of these would be considered? A) corporate desires B) land/construction costs C) air, rail, highway, waterway systems D) zoning restrictions E) location of markets

Answer: E) location of markets

22) Which of these factors would be considered when making a location decision at the region/community level? A) government rules, attitudes, stability, incentives B) cultural and economic issues C) zoning restrictions D) environmental impact issues E) proximity to raw materials and customers

Answer: E) proximity to raw materials and customers

8) Which of the following is NOT one of the predictive variables chosen by the profitability regression model used by La Quinta Inns? A) the price of the inn B) median income levels C) the state population per inn D) the location of nearby colleges E) the number of inns in a region

Answer: E) the number of inns in a region

11) On the crossover chart where the costs of two or more location alternatives have been plotted, the quantity at which two cost curves cross is the quantity at which: A) fixed costs are equal for two alternative locations. B) variable costs are equal for two alternative locations. C) total costs are equal for all alternative locations. D) fixed costs equal variable costs for one location. E) total costs are equal for two alternative locations.

Answer: E) total costs are equal for two alternative locations.

1) FedEx chose Memphis, Tennessee, for its central location, or "hub," primarily because of the incentives offered by the city of Memphis and the state of Tennessee.

Answer: FALSE

2) The location decisions of goods-producing firms will generally pay more attention to parking, access, and traffic counts than will service location decisions.

Answer: FALSE

3) For a location decision, labor productivity may be important in isolation, but low wage rates are a more important criterion.

Answer: FALSE

3) Location decisions of goods-producing companies often assume that costs are relatively constant for a given area; therefore, the revenue function is critical.

Answer: FALSE

3) The center-of-gravity method finds the location of a centralized facility, such as a distribution center, that will maximize the organization's revenue.

Answer: FALSE

4) The transportation model calculates an optimal shipping system between a central facility and several outlying customers.

Answer: FALSE

6) In location decisions, intangible costs are easier to measure than tangible costs.

Answer: FALSE

7) Location decisions are based on many things, including costs, revenues, incentives, attitudes, and intangibles, but not on ethical considerations.

Answer: FALSE

1) Lists have been developed that rank countries on issues such as "competitiveness" and "corruption."

Answer: TRUE

1) Service firms choose locations based, in part, on the revenue potential of a site.

Answer: TRUE

1) The graphic approach to locational cost-volume analysis displays the range of volume over which each location is preferable.

Answer: TRUE

2) The ratio of labor cost per day to productivity, in units per day, is the labor cost per unit.

Answer: TRUE

4) Unfavorable exchange rates can offset other savings in a location decision.

Answer: TRUE

5) An example of an intangible cost, as it relates to location decisions, is the quality of education.

Answer: TRUE

8) Manufacturers may want to locate close to their customers if the transportation of finished goods is expensive or difficult.

Answer: TRUE

9) One reason for a firm locating near its competitors is the presence of a major resource it needs.

Answer: TRUE

10) Which one of the following technologies is used ONLY for material handling, NOT actual production or assembly? A) robots B) CNC C) CAD D) AGVs E) FMS

Automated Guided Vehicle AGV

18) 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

24) Which of the following is FALSE regarding repetitive processes? A) They use modules. B) They allow easy switching from one product to the other. C) They are the classic assembly lines. D) They have more structure and less flexibility than a job shop layout. E) They include the assembly of basically all automobiles.

27) Which of the following characteristics best describes repetitive focus? A) It uses sophisticated scheduling to accommodate custom orders. B) Its output is a standardized product produced from modules. C) Operators are broadly skilled. D) It is widely used for the manufacture of steel. E) low volume, high variety

A product-oriented layout would be MOST appropriate for which one of the following businesses? A) fast food B) steel making C) insurance sales D) clothing alterations E) a grocery store

A production line is to be designed to make 500 El-More dolls per day. Each doll requires 11 activities totaling 16 minutes of work. The factory operates 750 minutes per day. What is the required cycle time for this assembly line? A) 0.5 minutes B) 1.5 minutes C) 2 minutes D) 5,500 minutes E) 4.26 minutes

According to PCN analysis, which process region includes process steps in which one participant is acting on another participant's resources, such as their information, materials, or technologies? A) independent processing B) surrogate interaction C) direct interaction D) resource processing E) process domain interaction

Balancing a work cell is done: A) before the work cell equipment is sequenced. B) as part of the process of building an efficient work cell. C) before takt time is calculated. D) so that each assembly line workstation has exactly the same amount of work. E) to minimize the total movement in a process layout.

Deloitte & Touche solved the empty desk problem by: A) assigning permanent desks. B) implementing a "hoteling" program. C) creating open offices. D) no longer allowing employees to work from home. E) reducing the number of allowable sick days per employee.

In assembly-line balancing, cycle time (the ratio of available production time to scheduled production) is the: A) minimum time that a product is allowed at each workstation. B) maximum time that a product is allowed at each workstation. C) inverse of the minimum number of workstations needed. D) sum of all the task times divided by the maximum number of workstations. E) equivalent of the maximum task time among all tasks.

The dimensions, tolerances, materials, and finishes of a component are typically shown on a(n): A) assembly chart. B) engineering drawing. C) bill of material. D) assembly drawing. E) route sheet.

The main issue in designing process-oriented layouts concerns the relative positioning of: A) safety devices. B) departments or work centers. C) raw materials. D) entrances, loading docks, etc. E) supervisors to their employees.

The objective of layout strategy is to: A) minimize cost. B) develop an effective and efficient layout that will meet the firm's competitive requirements. C) maximize flexibility. D) minimize space used. E) maximize worker satisfaction.

What identifies components by a coding scheme that specifies size, shape, and the type of processing (such as size)? A) engineering drawing B) group technology C) bill of material D) assembly drawing E) assembly chart

What percentage of the manufacturing process from Subaru's Lafayette, Indiana, plant goes to the landfill? A. 2% B. 0% C. 5% D. 12.5% E. 15%

What refers to how companies remain in business? A) corporate social responsibility B) economic sustainability C) carbon footprint D) sustainability E) closed-loop supply chains

What refers to looking at a product's life from design to disposal, including all the resources required? A) the commons B) a systems view C) the triple bottom line D) DD analysis E) carbon footprint

8) One fundamental difference between a process chart and a flowchart is that: A) the process chart adds a time dimension to the horizontal axis, while a flowchart is not time-oriented. B) the process chart includes the supply chain, while the flowchart stays within an organization. C) the process chart is more like a table, while the flowchart is more like a schematic diagram. D) the process chart focuses on the customer and on the provider's interaction with the customer, while the flowchart does not deal directly with the customer. E) None of these is true, because a process chart and a flowchart are the same thing.

A hospital's layout most closely resembles which of the following? A) product oriented B) work cell C) job shop D) project E) retail

A process sheet is a type of: A) assembly drawing. B) assembly chart. C) route sheet. D) work order. E) bill of material

A production line is to be designed for a job with four tasks. The task times are 2.4 minutes, 1.4 minutes, 0.9 minutes, and 1.7 minutes. After line balancing, the largest possible assigned cycle time is ________ minutes, and the smallest possible assigned cycle time is ________ minutes. A) 1.8; 1.4 B) 1.6; 0.9 C) 6.4; 2.4 D) 2.4; 0.9 E) 6.4; 0.9

A production line is to be designed for a product whose completion requires 21 minutes of work. The factory works 400 minutes per day. Can an assembly line with five workstations make 100 units per day? A) yes, with exactly 100 minutes to spare B) no, but four workstations would be sufficient C) no, it will fall short even with a perfectly balanced line D) yes, but the line's efficiency is very low E) cannot be determined from the information given

An assembly line consists of 158 tasks grouped into 32 workstations. The sum of all task times is 105 minutes. The largest assigned cycle time is 4 minutes. What is the efficiency of this line? A) 8 percent B) 21 percent C) 82 percent D) 100 percent E) 81 percent

An assembly line consists of 21 tasks grouped into 5 workstations. The sum of the 21 task times is 85 minutes. The largest assigned cycle time is 20 minutes. What is the efficiency of this line? A) 4.2 percent B) 17 percent C) 85 percent D) 100 percent E) 21 percent

At which stage of the product life cycle is product strategy likely to focus on improved cost control? A) introduction B) growth C) maturity D) saturation E) inflation

For which of the following operations would a fixed-position layout be MOST appropriate? A) assembling automobiles B) producing TV sets C) constructing a highway tunnel D) refining of crude oil E) running an insurance agency

One of the major advantages of process-oriented layouts is: A) high equipment utilization. B) large work-in-process inventories. C) flexibility in equipment and labor assignment. D) smooth and continuous flow of work. E) small work-in-process inventories.

One way to think of sustainability is to consider the systems necessary to support the triple bottom line of the three Ps, which are: A) price, promotion, and product. B) people, places, and products. C) people, planet, and profit. D) price, promotion, and profit. E) people, pollution, and profit

The role of decision trees in product design is to: A) rank products in descending order of their dollar contribution to the firm. B) better understand the customers' wants. C) calculate the expected value of each course of action. D) calculate the value of quality function deployment. E) calculate the value of the moment of truth

What are the 3 Rs for sustainability? A. reduce, reclaim, and recycle B. reproduce, reuse, and recycle C. reduce, reuse, and recycle D. reduce, reuse, and reclaim E. reduce, reproduce, and recycle

What does CSR stand for? A) consumer sustainability requirements B) critical sustainability ratio C) corporate social responsibility D) corporate sustainability record E) corporate society ratio

What is the primary reason why retailers tend to locate high-draw items around the periphery of the store? A) More shelf space for those popular items is available around the periphery. B) There will be less congestion of customers than there would be in the middle. C) This arrangement will help to maximize customer exposure to other items in the store. D) It is easier to put large advertisement signs on the outside walls right next to the items. E) This arrangement allows customers to travel through the store as quickly as possible.

What percentage of the 2012 Mercedes S-Class is recyclable? A. 25% B. 50% C. 95% D. 75% E. 100%

What type of supply chains consider forward and reverse product flows over the entire life cycle? A. end-to-end B. two-pronged C. closed-loop D. life cycle E. socially responsible

Which of the following is NOT one of the factors complicating the techniques for addressing the fixed-position layout? A) The volume of materials needed is dynamic. B) At different stages of a project, different materials are needed; therefore, different items become critical as the project develops. C) Takt times at workstations are dynamic. D) There is limited space at virtually all sites. E) All of the above are complicating factors.

Which of the following is an example of an external product development strategy? A) new internally developed products B) enhancements to existing products C) alliances D) migrations of existing products E) All of the above are examples of internal product development strategy

Which of the following typically shows the hierarchy of components, their description, and the quantity of each required to make one unit of a product? A) an engineering drawing B) an assembly drawing C) a bill of material D) an assembly chart E) a route sheet

Which one of the following is NOT common to repetitive and product-oriented layouts? A) a high rate of output B) specialized equipment C) ability to adjust to changes in demand D) low unit costs E) standardized products

Workspace can inspire informal and productive encounters if it balances what three physical and social aspects? A) proximity, privacy, and persuasion B) privacy, persuasion, and permission C) proximity, privacy, and permission D) proximity, persuasion, and permission E) proximity, persuasion, and passion

11) A system using an automated work cell controlled by electronic signals from a common centralized computer facility is called: A) an adaptive control system. B) robotics. C) a flexible manufacturing system. D) an automatic guided vehicle (AGV) system. E) a manufacturing cell.

C flexible manufacturing

A process layout problem consists of 4 departments, each of which can be assigned to one of four rooms. The number of different solutions to this problem is ________, although all of them may not have different material handling costs. A) 1 B) 4 C) 16 D) 24 E) unknown

A product's life cycle is divided into four stages, which are: A) introduction, growth, saturation, and maturity. B) introduction, growth, stability, and decline. C) introduction, maturity, saturation, and decline. D) introduction, growth, maturity, and decline. E) incubation, growth, maturity, and decline.

Ambient conditions; spatial layout and functionality; and signs, symbols, and artifacts are all: A) indicators of imbalance on an assembly line. B) indicators that cross-docking has been successful. C) elements of customization in a warehouse layout. D) elements of servicescapes. E) elements of successful office layouts.

Because problems with fixed-position layouts are so difficult to solve well onsite, operations managers: A) virtually never employ this layout strategy. B) utilize this approach only for construction projects such as bridges and office towers. C) increase the size of the site. D) often complete as much of the project as possible offsite. E) utilize this layout only for defense contractors.

Cycle time is computed as: A) desired output divided by the daily operating time. B) daily operating time divided by the product of desired output and the sum of job times. C) the product of desired output and the sum of job times divided by daily operating time. D) daily operating time divided by the scheduled output. E) 1.00 minus station time.

Four hundred and eighty minutes of production time are available per day. The schedule calls for the production of 80 units per day. Each unit of the product requires 30 minutes of work. What is the theoretical minimum number of workstations? A) 2 B) 3 C) 4 D) 5 E) 6

In a product-oriented layout, what is the process of deciding how to assign tasks to workstations? A) station balancing B) process balancing C) task allocation D) assembly-line balancing E) work allocation

In assembly-line balancing, the theoretical minimum number of workstations is: A) the ratio of the sum of all task times to cycle time. B) always (when a fraction) rounded upward to the next larger integer value. C) not always possible to reach when tasks are actually assigned to stations. D) all of the above. E) none of the above.

The carbon footprint is defined as a measure of total greenhouse gas emissions caused directly or indirectly by what four things? A) a factory, an office building, a warehouse, or a truck B) an organization, a product, an event, or a person C) an organization, a product, an animal, or a person D) an organization, a government, a product, or a person E) a product, an event, a person, or an animal

The concept of customizing in a warehouse layout: A) is possible, but it causes serious loss of oversight of the quality function. B) cannot be considered seriously in today's high efficiency factories. C) is theoretically sound, but several years away in practice. D) incorporates value-added activities in warehouses. E) locates stock wherever there is an open location.

The fixed-position layout would be MOST appropriate in which of the following settings? A) a fast-food restaurant B) a doctor's office C) a casual dining restaurant D) a cruise ship assembly facility E) a washing machine assembly line

The major problem addressed by the process-oriented layout strategy is: A) the movement of material to the limited storage areas around the site. B) how to design a continuous flow process. C) the provision of low-cost storage with low-cost material handling. D) minimizing difficulties caused by material flow varying with each product. E) balancing product flow from one work station to the next.

The most common tactic followed in process-layout planning is to arrange departments or work centers so they: A) minimize the cost of skilled labor. B) maximize the machine utilization. C) are equally allocated within the available space. D) minimize the costs of material handling. E) produce a perfectly balanced assembly line.

Which of the following is NOT an information requirement for solving a load-distance problem to design a process layout? A) a list of departments or work centers B) a projection of work flows between the work centers C) the distance between locations D) a list of product cycle times E) the cost per unit of distance to move loads

Which of the following is TRUE regarding computer-aided design? A) It is too expensive to use in most manufacturing and design settings. B) It is an obsolete technology. C) It results in longer development cycles for virtually all products. D) It is the use of computers to interactively design products and prepare engineering documentation. E) It is the use of information technology to control machinery.

Which of the following is TRUE regarding fabrication lines? A) They are the same thing as assembly lines. B) They are the same thing as focused factories. C) They are a special type of process-oriented layout. D) They are usually machine-paced as opposed to worker-paced. E) They require completely different line balancing techniques than do assembly lines.

Which of the following is a common heuristic for assembly line balancing? A) first come, first served B) least preceding tasks C) earliest due date first D) ranked positional weight E) most preceding tasks

Within environmental regulation, the "cap-and-trade" principle produces a market that allows companies to purchase and sell what? A. shares of stock in renewable energy sources B. carbon reduction sweepers C. space in landfills D. emission allowances E. hats that promote environmental awareness

________ is used to rank a company's products to determine which products represent the best use of the firm's resources, or, perhaps, to determine which products are to be eliminated. A) Value analysis B) Value engineering C) Financial analysis D) Product-by-value analysis E) Product cost justification

Balancing low-cost storage with low-cost material handling is important in which of the following? A) fixed-position layout B) process-oriented layout C) office layout D) repetitive and product-oriented layout E) warehouse layout

Corporate social responsibility involves managerial decision making that considers what three impacts? A) environmental, legal, and financial B) environmental, legal, and societal C) educational, environmental, and societal D) societal, legal, and financial E) environmental, societal, and financial

If a layout problem is solved by use of heuristics, this means that: A) there is no other way to solve the problem. B) no computer software is available. C) the problem has only a few alternatives to evaluate. D) no optimum solution exists. E) a satisfactory, but not necessarily optimal, solution is acceptable.

Manufacturability and value engineering has which of the following benefits? I. Reduced complexity of the product II. Reduction of environmental impact III. Additional standardization of components IV. Robust design V. Improved job design and safety A) I, III, V B) II, IV C) I, III, IV D) IV E) I, II, III, IV, V

Operations managers must be able to anticipate changes in which of the following? A) product mix B) product opportunities C) the products themselves D) product volume E) all of the above

Retail layouts are based on the notion that: A) handling costs should be minimized. B) storage costs should be minimized. C) average customer visit duration should be maximized. D) space used should be minimized. E) maximizing customer exposure rate maximizes sales and profit.

The ________ layout's main objective is to equalize the task time for each station. A) work cell B) fixed position C) office D) job shop E) product oriented

The central problem in product-oriented layout planning is: A) minimizing material handling within workstations. B) minimizing labor movement between workstations. C) equalizing the space allocated to the different workstations. D) maximizing equipment utilization. E) minimizing the imbalance in the workloads among workstations.

The disadvantages of process-oriented layout come from: A) the use of special purpose equipment. B) machine maintenance, which tends to seriously degrade the capacity of the entire system. C) the use of specialized material handling equipment. D) the need for stable demand. E) the flexibility of general-purpose equipment.

The main goal of retail layout is: A) minimizing material handling cost. B) minimizing customer confusion regarding location of items. C) minimizing storage costs. D) minimizing space required. E) maximizing profitability per square foot of floor space.

What is a measure of total greenhouse gas emissions caused directly or indirectly by an organization, a product, an event, or a person? A) radioactive decay B) nitrogen footprint C) ozone factor D) pollution index E) carbon footprint

What layout strategy deals with low-volume, high-variety production? A) fixed-position layout B) retail layout C) warehouse layout D) office layout E) process-oriented layout

What refers to analysis of environmental impacts of products from the design stage through end-of-life? A. economic sustainability B. ISO 14000 C. closed-loop supply chain analysis D. carbon footprint E. life cycle assessment

Which of the following is NOT a retail layout practice? A) Locate the high-draw items around the periphery of the store. B) Distribute power items throughout the store. C) Use end-aisle locations to maximize product exposure. D) Use prominent locations for high-impulse and high-margin items. E) All of the above are retail layout practices.

Which of the following is TRUE concerning advantages of CAD? A) It provides accurate information flows to other departments. B) Most product costs are determined at the design stage. C) Design options are easier to review before final commitments are made. D) Virtually all products have their development cycle shortened. E) All of the above are true.

Meeting the needs of the present without compromising the ability of future generations to meet their needs is known as corporate social responsibility.

A fabrication line and an assembly line are both types of repetitive and product-focused layout, but only the fabrication line utilizes workstations True or False?

FALSE

1) Successful process redesign focuses on departmental areas where small, continuous improvements can be made.

False

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

False

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

False

A decision tree for analyzing capacity would have future demands or market favorability as the decision alternatives.

False

A decision tree indicates at what quantity profit changes from negative to positive.

False

A measure of the total greenhouse gas emissions caused directly or indirectly by an organization, a product, an event, or a person is the nitrogen footprint

False

A work order is a list of the hierarchy of components, their description, and the quantity of each required to make one unit of the product.

False

According to PCN analysis, the consumer's process domain typically includes the set of activities at the beginning of the process chain

False

An assembly drawing lists the operations necessary to produce the component

False

Regal Marine's attempts to keep in touch with customers and respond to the marketplace are made impossible because consumer tastes change and maritime engineering improves

False

The enhancement of existing products is an external product development strategy

False

The expected value of each course of action in a decision tree is determined by starting at the beginning of the tree (the left-hand side) and working toward the end of the tree (the right

False

The four phases of the product life cycle are incubation, introduction, growth, and decline

False

The ________ is a part of the quality function deployment process that utilizes a planning matrix to relate customer "wants" to "how" the firm is going to meet those "wants

House of Quality

________ technologies today allow consumers, communities, public interest groups, and regulators to be well informed about an organization's performance

Internet based

21) Align Technology uses a ________ approach to produce clear plastic removable aligners. A) mass customization B) product focus C) process focus D) repetitive focus E) crossover

Mass customization

what is mass customization

Mass customization is rapid, low-cost production of goods and services that fulfill increasingly unique customer desires

The ________ is the crucial moment between the service provider and the customer that exemplifies, enhances, or detracts from the customer's expectations

Moment of truth

One environmentally friendly approach to product design is to use lighter components.

Social and environmental sustainability do not exist without economic sustainability.

Some governments are implementing laws that mandate the outright reduction of GHG emissions by forcing companies to pay taxes based on the amount of GHG emissions that are emitted.

Sustainability is often associated with corporate social responsibility.

Those resources held in the common are often misallocated.

Within environmental regulation, the "cap-and-trade" principle essentially allows companies to buy and sell the right to pollute.

Internet-based technologies today allow consumers, communities, public interest groups, and regulators to be well informed about an organization's performance.

A process-oriented layout is the traditional way to support a product differentiation strategy. True or False?

TRUE

Category management is the use of computer software to evaluate the profitability of various merchandising plans for hundreds of categories. True or False?

TRUE

Cross-docking processes items as they are received, rather than placing them in storage. True or False?

TRUE

Cycle time is the maximum time that the product is allowed at each workstation. True or False?

TRUE

2) Intermittent processes are organized around processes.

True

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

True

3) Activity times should be included in a service blueprint.

True

3) Automated storage and retrieval systems are commonly used in distribution facilities of retailers.

True

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

True

3M's goal is to produce 30% of its profit from products introduced in the last 4 years

True

5) Time-function mapping is a flowchart with time added to the horizontal axis.

True

7) The tool that calculates which process has the lowest cost at any specified production volume is a crossover chart.

True

Firms that do not consider the impact of their decisions on all of their stakeholders see reduced sales and profits.

True

Group technology enables the grouping of parts into families based on similar processing requirements

True

Internet-based technologies today allow consumers, communities, public interest groups, and regulators to be well informed about an organization's performance

True

One limitation of the net present value approach to investments is that investments with identical net present values may have very different cash flows.

True

Price changes are useful for matching the level of demand to the capacity of a facility

True

Product strategy may focus on developing a competitive advantage via differentiation, low cost, rapid response, or a combination of these.

True

Quality function deployment refers to both (1) determining what will satisfy the customer and (2) translating those customer desires into a target design.

True

Rapidly developing products and moving them to the market is part of time-based competition

True

Relatively few new product ideas, perhaps only 1 in 250, become successfully marketed products

True

Robust design ensures that small variations in production or assembly do not adversely affect the product

True

Social and environmental sustainability do not exist without economic sustainability

True

Sustainability is often associated with corporate social responsibility

True

The "make-or-buy" decision distinguishes between what an organization chooses to produce and what it chooses to purchase from suppliers

True

An organization whose capacity is on that portion of the average unit cost curve that falls as output rises a. has a facility that is below optimum operating level and should build a larger facility b. has a facility that is above optimum operating level and should build a smaller facility c. is suffering from diseconomies of scale d. has utilization higher than efficiency e. has efficiency higher than utilization

If demand exceeds capacity at a new facility, an organization can use which of the following to move demand to an existing facility? a. aggressive marketing b. lower prices at all facilities c. build a facility of the correct size d. add a complementary product e. reduce lead times

Which of the following represents an aggressive approach to demand management in the service sector when demand and capacity are not particularly well matched? a. inexpensive rates for weekend phone calls b. appointments c. reservations d. first-come, first-served e. none of the above

3) ________ is the fundamental rethinking of business processes to bring about dramatic improvements in performance.

process redesign

10) Three of the four types of processes are: A) goods, services, and hybrids. B) manual, automated, and service. C) process focus, repetitive focus, and product focus. D) modular, continuous, and technological. E) input, transformation, and output.

process, repetitive, and product

15) An assembly line is an example of a: A) product-focused process. B) process-focused process. C) repetitive process. D) line process. E) specialized process.

repetitive

7 techniques for service improvement

separation, self-service, postponement, focus, modules, automation, scheduling, and training.

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

service blueprinting

The term ________ refers to meeting the needs of the present without compromising the ability of future generations to meet their needs

sustainability

Break-even analysis can be used by a firm that produces more than one product, but

the break-even point depends upon the proportion of sales generated by each of the products

Adding a complementary product to what is currently being produced is a demand management strategy used when

the existing product has seasonal or cyclical demand

When decision trees are used to analyze capacity decisions

the states of nature are often demand-based, as in "market favorability"

Krispy Kreme's experiences with capacity taught them that

there is an optimum operating level—a right size—for their stores

Break-even is the number of units at which

total revenue equals total cost

Flexible manufacturing systems, because of easily changed control programs, are able to perform such tasks as manufacturing one-of-a-kind parts economically.

SCMA 2

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