Operations Management Chp 7 Process Strategy online

Question 1.
Low-volume, high-variety production is best suited for which of the following process strategies?
A. product focus
B. mass customization
C. process focus
D. repetitive focus

C. process focus

Question 2.
High-volume, low-variety production is best suited for which of the following process strategies?
A. repetitive focus
B. mass customization
C. product focus
D. process focus

C. product focus

Question 3.
A process focus is
A. based on the classical assembly line.
B. a production facility organized around specific activities.
C. a rapid, low-cost production that caters to constantly changing unique customer desires.
D. organized around products.

B. a production facility organized around specific activities.

Question 4.
What is the break-even point (in units) for a firm that has a fixed cost of $300,000 a year, a direct labor cost of $2.00 per unit, a materials cost of $1.50 per unit, and a selling price of $5.00 per unit?
A. 150,000 units
B. 100,000 units
C. 1,500,000 units
D. 200,000 units

D. 200,000 units

Question 5.
Of the four tools used for process analysis and design, which one focuses on the customer interaction?
A. time-function mapping
B. flow-diagrams
C. service blueprinting
D. process charts

C. service blueprinting

.

Question 6.
Which of the quadrants in the service process matrix has high labor intensity and high customization?
A. mass service
B. professional service
C. service shop
D. service factory

B. professional service

Question 7.
Which of the following automatically places parts into a warehouse?
A. FMS
B. AGV
C. CAD
D. ASRS

D. ASRS

Question 8.
Work in process inventory is highest in
A. repetitive focus.
B. product focus.
C. process focus.
D. mass customization.

C. process focus.

Question 9.
A large quantity and large variety of products are produced in

A. product focus.
B. process focus.
C. mass customization.
D. repetitive focus.

C. mass customization.

Question 10.
The movement of product is measured in hours and days in a _____ type of plant.
A. process focus
B. repetitive focus
C. mass customization
D. product focus

B. repetitive focus

Question 11.
Scheduling is relatively simple and concerned with establishing a rate of output sufficient to meet sales forecasts in a ______ type of factory.

A. process focus
B. mass customization
C. repetitive focus
D. product focus

D. product focus

Question 12.
This type of process analysis tool is a schematic of the movement of material, product or people.

A. process mapping
B. flow diagram
C. process charts
D. value stream mapping

B. flow diagram

Question 13.
In many applications, human quality inspectors can be replaced effectively by

A. automated storage and retrieval systems.
B. RFID tags.
C. vision systems.
D. FMS.

C. vision systems.

Question 14.
An operations manager is considering three different production systems for the following year. System A has a fixed cost of $25,000 and a variable cost of $15 per unit. System B has a fixed cost of $15,000 and a variable cost of $20 per unit. The third option is outsourcing, which has a cost of $27 per unit. Which production system will result in the lowest cost if anticipated volume next year is 2500 units?
A. Outsourcing
B. System A
C. System B
D. The manager will be indifferent between System A and System B.

B. System A

T/F

…

1.A repetitive process is a product-oriented production process that uses modules.

True or False

True

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

True or False

True

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

True or False

True

4.In the service process matrix, mass service has low labor intensity.

True or False

False

5.Self-service is one technique for improving service productivity.

True or False

True

6.Process redesign focuses on incremental improvements.

True or False

False

7. A producer that makes products at very low volumes with a high variety would ideally use a process focus.

True or False

True

8. A product focus usually has higher fixed costs and lower variable costs than a process focus.

True or False

True

9.Adding up the time for all of the chart symbols in a process chart shows how much value-added time is present in a process.

True or False

False

10.Adding up the time for all of the chart symbols in a process chart shows how much value-added time is present in a process.

True or False

True

11.A computer integrated manufacturing system may include components for computer-aided design, an automatic storage and retrieval system, and robots.

True or False

True

12.Mugs Away, a web-based retailer specializing in ceramic steins, ships their orders using standard ground service instead of next day or two day delivery. They are using the technique of postponement to save customers money.

True or False

False

essay questions

…

1. Sketch the volume variety matrix for processes and show the location of the four process types. What are the implications of moving off the diagonal?

The volume and variety matrix shown above displays the best fit for the four process types that are used in virtually every good or service production situation. Low volume and high variety output are best suited to a process focus. A production facility achieves a process focus by organizing around specific activities (processes). Each process is designed to perform a wide variety of activities and handle frequent changes. Products (or services) produced in high volume but low variety are best suited to product-focused (or continuous) processes. Product-focused processes employ specialized equipment that can be used to make one type of product so it is important to produce at high volumes in order to recoup the investment in the equipment. Falling in-between these two extremes is the repetitive focus process that works well for a variety of products made in volume. Repetitive processes often involve the assembly of modules that have been produced in a product process. Operating off of the diagonal can be difficult to achieve if the off-diagonal position is high volume and high variety. This position is called mass customization, the rapid, low cost production of goods and services that have been tailored to specific customers. The other off-diagonal position, that of low volume and low variety is easily attainable, but a dubious use of resources. Significant opportunity costs are incurred if the equipment capable of producing high volume is used for low volume production.

2.What differences in the service process matrix would manifest themselves in the corresponding service blueprints?

The service process matrix shows how operations managers design service processes to find the best level of specialization and focus while maintaining the necessary customer interaction and customization. A service blueprint is a process analysis tool resembling a flow chart that lends itself to a focus on the customer and the provider’s interaction with the customer. The three levels of the service blueprint indicate the degree of customer interaction and control and poka yokes are noted throughout the flow chart to address potential failure points. A mass service represents a low level of interaction and customization with a high degree of labor intensity. Customer feedback is low, so tight controls may be required to maintain quality standards. This implies that poka-yoke design and application would be extensive in this service sector. A professional service has high levels of labor intensity, interaction and customization. Level 2 of the service blueprint, where customer interaction with the service provider is charted, should show extensive activity. Professional services are unique since the customer often is unqualified to make judgments about service outcomes. The service blueprint will probably reflect little activity in terms of customer control (Level 1 of the blueprint). A service shop has a low level of labor intensity and a high level of interaction and customization. Level 2 of the service blueprint would show this interaction and there would be ample opportunity for both parties to make requests and clarifications. A service factory has a low level of interaction and customization and a low level of labor intensity. Level 2, the center section of the service blueprint, might be unusually sparse, so extra care must be taken to ensure feedback to the customer so they are confident their request has been received and is being processed.

3.Describe three different types of production technology used to handle inventory.

The authors identify nine areas of production technology, all of which impact inventory, some more directly than others. The technologies that handle inventory include: 1.automatic identification systems that transform data into electronic form; 2.automated storage and retrieval systems that are computer-controlled warehouses that provide for the automatic placement of parts into and from designated places in the warehouse; and 3.automated guided vehicles that are electronically guide and controlled carts that are used to move materials Technologies that are more involved with the processing of inventory, but still could be considered to handle inventory include: 1.vision systems that use video cameras and computer technology in inspection roles; 2.robots that are flexible machines with the ability to hold, move, or grab items; 3.flexible manufacturing systems that are automated work cells controlled by a centralized computer; 4.computer integrated manufacturing, a manufacturing system in which CAD, FMS, inventory control, warehousing, and shipping systems are integrated; 5.process control that uses information technology to monitor and control a physical process; and 6.machine technology that is used in the fabrication and processing of parts.