Exam 8: Process Strategy

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?

The local convenience store makes personal pan pizzas. Currently, their 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 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?

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

Which of the following phrases best describes process focus?

The crossover point is that production quantity where

Service blueprinting

Professional services typically require low levels of labor intensity.

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

Explain, in your own words, what a flexible manufacturing system is. List the benefits of flexible manufacturing systems.

The tool that calculates which process has the lowest cost at any specified production volume is a crossover chart.

Which of the following is true regarding the concept of flexibility?

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?

Successful process redesign focuses on departmental areas where small, continuous improvements can be made.

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

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

Which of the following is not a 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.

Value Stream Mapping

Which of the following is not one of the essential ingredients for mass customization?

In process-focused facilities, equipment utilization is low.