Exam 7: Process Strategy

An assembly line is an example of a:

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?

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

Value-stream mapping:

One of the similarities between process focus and mass-customization is:

A firm is about to undertake the manufacture of a product,and it 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 per month and variable costs of $2 per unit.A repetitive focus plant has fixed costs of $50,000 per month 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 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 cost = $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.

Professional services typically require low levels of labor intensity.

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

The use of information technology to monitor and control a physical process is known as:

Which one of the following technologies is used ONLY for material handling,NOT actual production or assembly?

A product-focused process is commonly used to produce:

The local convenience store makes personal pan pizzas.Currently,its process makes complete pizzas,fully cooked,for the customer.This process has a fixed cost of $20,000,and a variable cost of $1.75 per pizza.The owner is considering a different process that can make pizzas in two ways: completely cooked (as before),or partially cooked and then flash frozen for the customer to finish heating at home.This alternate process has a fixed cost of $24,000,but a lower variable cost (because much less energy is used in baking)of $1.25 per pizza. a.What is the crossover point between the existing process and the proposed process? b.If the owner expects to sell 9,000 pizzas,should he get the new oven?

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 per month 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?

Provide an example of the postponement strategy for improving service productivity.

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

Harley Davidson:

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

Production technology has had a major impact on services,but as yet there has been little reduction in service labor requirements.

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