Question 1

Process strategy defines what tasks need to be done and how they are to be coordinated among functions,people,and organizations.

Accepted Answer

A) True 
 B)False

Question 2

A company is evaluating which of two alternatives should be used to produce a product that will sell for $35.00 per unit.The following cost information describes the two alternatives:   If total demand (volume)is 120,000 units,then the company should

Accepted Answer

A) select Process A with a profit of $940,000 to maximize profit. 
B) select Process B with a profit of $450,000 to maximize profit. 
C) select Process A with a profit of $700,000 to maximize profit. 
D) select Process B with a profit of $690,000 to maximize profit. 
A) select Process A with a profit of $940,000 to maximize profit. 
B) select Process B with a profit of $450,000 to maximize profit. 
C) select Process A with a profit of $700,000 to maximize profit. 
D) select Process B with a profit of $690,000 to maximize profit.

Question 3

Vertical integration is the degree to which a firm produces the parts that go into its products.

Accepted Answer

A) True 
 B)False

Question 4

Batch production is characterized by small volumes and high product variety.

Accepted Answer

A) True 
 B)False

Question 5

A company is evaluating which of two alternatives should be used to produce a product that will sell for $35.00 per unit.The following cost information describes the two alternatives:   The break-even volume for Process A is

Accepted Answer

A) 50,000 units. 
B) 62,500 units. 
C) 30,000 units. 
D) 20,000 units. 
A) 50,000 units. 
B) 62,500 units. 
C) 30,000 units. 
D) 20,000 units.

Question 6

Complex scheduling problems are most likely to occur with which process type?

Accepted Answer

A) mass production systems 
B) batch production systems 
C) continuous production systems 
D) repetitive manufacturing systems 
A) mass production systems 
B) batch production systems 
C) continuous production systems 
D) repetitive manufacturing systems

Question 7

Process innovation is most successful in organizations that view their systems as a set of functional areas vying for limited resources.

Accepted Answer

A) True 
 B)False

Question 8

All the following are factors influencing the outsourcing decision except

Accepted Answer

A) capacity. 
B) expertise. 
C) quality. 
D) product variety. 
A) capacity. 
B) expertise. 
C) quality. 
D) product variety.

Question 9

If a firm can sell a product for $40.00 each,then what is the volume needed to break-even if the fixed cost of production is $125,000.00 and labour and material costs are $30.00 per item?

Accepted Answer

A) 125,000 
B) 12,500 
C) 4,167 
D) 3,250 
A) 125,000 
B) 12,500 
C) 4,167 
D) 3,250

Question 10

A process is a group of unrelated tasks with specific inputs and outputs.

Accepted Answer

A) True 
 B)False

Question 11

Supplier speed is rarely an important consideration in outsourcing decisions.

Accepted Answer

A) True 
 B)False

Question 12

Mass production is characterized by the use of general equipment and highly skilled labour.

Accepted Answer

A) True 
 B)False

Question 13

What is a process strategy and how does it affect the firm?

Accepted Answer

A process strategy is an organization's

Question 14

The organization's overall approach for producing goods and providing services is its process strategy.

Accepted Answer

A) True 
 B)False

Question 15

Variable demand and small to medium quantities produced to order are characteristics usually associated with

Accepted Answer

A) mass production. 
B) continuous production. 
C) projects. 
D) batch production. 
A) mass production. 
B) continuous production. 
C) projects. 
D) batch production.

Question 16

Two approaches to process improvement include continuous and breakthrough.

Accepted Answer

A) True 
 B)False

Question 17

Process innovation reflects the total redesign of a process for a breakthrough improvement.

Accepted Answer

A) True 
 B)False

Question 18

Process analysis yields a set of documents detailing manufacturing and service delivery specifications.

Accepted Answer

A) True 
 B)False

Question 19

Which of the following is not associated with the sourcing continuum?

Accepted Answer

A) joint venture 
B) in-house production 
C) strategic alliance 
D) single contract 
A) joint venture 
B) in-house production 
C) strategic alliance 
D) single contract

Question 20

Producing a high volume of a single product is a characteristic of batch production.

Accepted Answer

A) True 
 B)False

Exam 7: Processes and Technology

Process strategy defines what tasks need to be done and how they are to be coordinated among functions,people,and organizations.

A company is evaluating which of two alternatives should be used to produce a product that will sell for $35.00 per unit.The following cost information describes the two alternatives: If total demand (volume)is 120,000 units,then the company should

Vertical integration is the degree to which a firm produces the parts that go into its products.

Batch production is characterized by small volumes and high product variety.

A company is evaluating which of two alternatives should be used to produce a product that will sell for $35.00 per unit.The following cost information describes the two alternatives: The break-even volume for Process A is

Complex scheduling problems are most likely to occur with which process type?

Process innovation is most successful in organizations that view their systems as a set of functional areas vying for limited resources.

All the following are factors influencing the outsourcing decision except

If a firm can sell a product for $40.00 each,then what is the volume needed to break-even if the fixed cost of production is $125,000.00 and labour and material costs are $30.00 per item?

A process is a group of unrelated tasks with specific inputs and outputs.

Supplier speed is rarely an important consideration in outsourcing decisions.

Mass production is characterized by the use of general equipment and highly skilled labour.

What is a process strategy and how does it affect the firm?

The organization's overall approach for producing goods and providing services is its process strategy.

Variable demand and small to medium quantities produced to order are characteristics usually associated with

Two approaches to process improvement include continuous and breakthrough.

Process innovation reflects the total redesign of a process for a breakthrough improvement.

Process analysis yields a set of documents detailing manufacturing and service delivery specifications.

Which of the following is not associated with the sourcing continuum?

Producing a high volume of a single product is a characteristic of batch production.

Operations Management

Quality Management

Statistical Process Control

Operational Decision-Making Tools: Acceptance Sampling

Product Design

Service Design

Capacity and Facilities Design

Operational Decision-Making Tools: Facility Location Models

Human Resources

Operational Decision-Making Tools: Work Measurement

Project Management

Supply Chain Management: Strategy and Design

Global Supply Chain Procurement and Distribution

Forecasting

Inventory Management

Operational Decision-Making Tools: Simulation

The Sales and Operations Planning Process

Operational Decision-Making Tools: Linear Programming

Resource Planning

Lean Systems

Scheduling

Filters