Exam 7: Process Strategy

The textbook described four basic process models, and hinted that there are others. Construct an example of a hybrid process. Can this process be applied in any well-known organization? How common do you think hybrid processes are?

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

Flexible equipment with rapid changeovers is most closely associated with which approach?

Mary is considering purchasing a machine from two suppliers. Supplier A's machine has an annual fixed cost of $10,000 and a unit variable cost of $2.10. Supplier B's machine has an annual fixed cost of $16,000 and a unit variable cost of $3.00. How large should Mary's annual demand be in order to make Supplier B's machine the better choice?

Big John's Manufacturing currently produces its lead product on a machine that has a variable cost of $0.32 per unit, and fixed costs of $75,000. Big John is considering purchasing a new machine that will drop the variable cost to $.28 per unit, but has a fixed cost of $150,000. What is the cross-over point between the two machines?

An organization is considering three process configuration options. There are two different intermittent processes, 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 per month 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. If the company produced 20,000 units, what would be its cost under each of the three choices? b. Which process offers the lowest cost to produce 40,000 units? What is that cost?

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

Activity times should not be included in a service blueprint.

Value Stream Mapping

__________ is a process strategy that uses a product-oriented production process that uses modules.

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

An organization's process strategy

"Automatic placement and withdrawal of parts and products into and from designated places in a warehouse" describes

Kirstin is thinking about opening a Chinese restaurant and needs to buy a rice cooker. Machine A has fixed costs of $100 and variable costs of $1/pound. Machine B has fixed costs of $500 and variable costs of $.1/pound. If Kirstin plans to sell 100 pounds of rice which machine should she choose? What is the cross-over point?

Frito-Lay is to __________ focus as Harley Davidson is to __________ focus.

Three types of processes are

Processes can be environmentally friendly and socially responsible while still contributing to profitable strategies.

__________ is the fundamental rethinking and radical redesign of business processes to bring about dramatic improvements in performance.

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

Swift movement through the facility is typical of goods in which approach?