Exam 2: Process Strategy and Analysis

Scenario 2.6 You currently purchase a part used in your production process from an outside supplier, and have decided to begin making this part in-house. You have two equipment options for moving production in-house: special-purpose equipment and general-purpose equipment. Cost information for these two options is as follows: -Use Scenario 2.6 to answer this question. For what range of output is the Special-Purpose Equipment the low-cost option?

An effective tool for showing steps of a service process with a high level of customer contact is a:

Sketch and discuss the product-process matrix for manufacturing.

The ability to reprogram machines is useful for both low-customization and high-customization processes.

Scenario 2.3 A job consists of three elements. Twenty observations for each element were timed, and the resulting data are shown in the following table. A performance rating has also been assigned for each element, as shown in the table. The job has an allowance of 15% of normal time. -Use the information in Scenario 2.3. What is the normal time for job element #3?

All forms of benchmarking are best applied in situations where long-term continuous improvement is desired.

Which of these benchmarking metrics is not suitable for a support process?

Is an executive MBA program at your school a plant within a plant? Explain your reasoning.

Scenario 2.1 Garman observes a worker assembling peanut valves and records the data displayed in the table. -Use the information in Scenario 2.1. What is the standard time for this job element if the allowance for the process is 25%?

Which of the following statements about process choice is best?

Two manufacturing processes are being considered for making a new product. Process #1 is less capital intensive, with fixed costs of $50,000 per year and variable costs of $700 per unit. Process #2 has fixed costs of $400,000 annually, with variable costs of $200 per unit. a. What is the break-even quantity for the two processes? b. If annual sales are expected to be 600 units, which process should be selected? c. If lowest overall costs per year is your overall objective, for what range of annual production quantities should you select Process #1? Process #2? d. Operations and Engineering have found a way to reduce the cost of Process #2, such that the fixed costs for this process decrease from $400,000 to $300,000 annually. All other costs remain the same (Process #1 fixed = $50,000 / year, Process #1 variable = $700 / unit, Process #2 variable = $200 / unit). What is the new break even quantity between the two processes? e. Does this change the process selection for the annual sales volume of 600 units? If so, for what range of annual production quantities should you select Process #1 and Process #2?

The product-process matrix brings together the elements of volume, process, and quality.

Consider the four steps in a time study. If an analyst were to make a mistake, during which step would the impact on the standard time be the greatest? Explain your reasoning.

An accounting firm realizes it is woefully inadequate at cultivating new clients. It is allowed to observe a rival firm perform the new-client cultivation process in hopes of gleaning improved methods it can adopt. This is an example of:

Process decisions are strategic in nature.

With a dramatic flourish, the team leader tore the employee orientation guidelines into pieces. He then distributed blank pieces of paper to the team and asked them to envision the perfect orientation process without regard to how it has always been done. This team is probably engaging in process reengineering.

Develop a process chart for a manual car wash.

Which one of the following statements about process management is best?

________ are different operations within a facility with individualized competitive priorities, processes, and workforces under the same roof.

Process analysis focuses on: