Exam 7: Process Strategy

Brandon's computer shop is considering two different configuration options. The first one is to have each computer built by the sales associates when they have free time. The second option is to hire a dedicated assembly technician. Option A has variable costs of $50 per computer and no fixed costs. Option B has a fixed cost of $1,000 but variable costs of only $5 per computer. What is the cross-over point?

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

Arnold Palmer Hospital uses which focus?

Which of the following is typical of process control systems?

In mass service and service factory quadrants of the service process matrix, the operations manager could focus on all of the following except

High fixed costs and low variable costs are typical of which approach?

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

A product is currently made in a process-focused shop, where fixed costs are $8,000 per year and variable cost is $40 per unit. The firm currently sells 200 units of the product at $200 per unit. A manager is considering a repetitive focus to lower costs (and lower prices, thus raising demand). The costs of this proposed shop are fixed costs = $24,000 per year and variable costs = $10 per unit. If a price of $80 will allow 400 units to be sold, what profit (or loss) can this proposed new process expect? Do you anticipate that the manager will want to change the process? Explain.

Identify the typical elements in a process control system.

A firm is about to undertake the manufacture of a product, and is weighing the process configuration options. There are two intermittent processes under consideration, as well as a repetitive focus. The smaller intermittent process has fixed costs of $3,000 per month, and variable costs of $10 per unit. The larger intermittent process has fixed costs of $12,000 and variable costs of $2 per unit. A repetitive focus plant has fixed costs of $50,000 and variable costs of $1 per unit. a. At what output does the large intermittent process become cheaper than the small one? b. At what output does the repetitive process become cheaper than the larger intermittent process?

A system using an automated work cell controlled by electronic signals from a common centralized computer facility is called a(n)

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

When done correctly, mass customization

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

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

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

A process map with the addition of a time axis becomes a process chart.

Which one of the following products is most likely made in a job shop environment?

Identify five examples of technology's impact on services. Specifically, identify one of these that has led to labor cost reductions. Discuss briefly. Can you add an item, not identified in the textbook, to this list?

The process strategy that is organized around processes to facilitate low-volume, high-variety processes is called a(n) __________.