Exam 7: Process Strategy and Sustainability

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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?

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(a) at 20,000 units, the costs are small intermittent = $203,000; large intermittent = $52,000; and repetitive = $70,000
(b) at 40,000 units, repetitive process is cheapest, at $90,000 (small intermittent = $403,000, and large intermittent = $92,000).

An assembly line is an example of a

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C

Product Focused processes

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C

Process X has fixed costs of $10,000 and variable costs of $2.40 per unit. Process Y has fixed costs of $9,000 and variable costs of $2.25 per unit. Which of the following statements is true?

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Which of the following phrases best describes product focus?

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Identify the techniques for improving service productivity. For any two techniques, describe in a short paragraph, and include an example.

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Professional services typically require low levels of labor intensity.

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One fundamental difference between a process chart and a process map is that

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iTunes uses a ________ approach when it allows customers to select a dozen songs of their choosing and have them made into a CD.

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Which of the following is not true about Value Stream Mapping?

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Bridget is considering how to get to work over the summer. She has two options. Option A is to buy a seasonal bus pass for $100. Option B is to pay $.25 for each ride. Identify the fixed and variable costs for each option. If she has to ride both to and from work, how many days of work would it take for the seasonal pass to cost the same amount as Option B?

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Service blueprinting

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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 $4,500 per month, and variable costs of $14 per unit. The larger intermittent process has fixed costs of $13,500 and variable costs of $3 per unit. A repetitive focus plant has fixed costs of $80,000 and variable costs of $1.75 per unit. (Round all answers to the nearest whole 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?

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Name the tools of process analysis and design. Describe them in a sentence or two each.

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Ethical and environmentally friendly processes include all of the following except

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Activity times should not be included in a service blueprint.

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

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A drawing of the movement of material, product, or people is a

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All of the following are true about a quasi-custom product except

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"Operators simply load new programs, as necessary, to produce different products" describes

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