Exam 8: Process Strategy

Big John's Manufacturing currently produces its lead product on a machine that has a variable cost of $0.32 per unit, and fixed costs of $75,000. Big John is considering purchasing a new machine that will drop the variable cost to $.28 per unit, but has a fixed cost of $150,000. What is the cross-over point between the two machines?

Product Focused processes

Process A has fixed costs of $1000 and variable costs of $5 per unit. Process B has fixed costs of $500 and variable costs of $15 per unit. The crossover point between process A and process B is

A product-focused process is commonly used to produce

One use of camera-and-computer-based vision systems is to replace humans doing tedious and error-prone visual inspection activities.

A(n) __________ uses an automated work cell controlled by electronic signals from a common centralized computer facility.

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

Activity times should not be included in a service blueprint.

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

An assembly line is an example of a

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

What is mass customization?

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?

Karla's candle factory is considering two different machines. Machine A is highly automated with FC of $25,000 and VC of $.1/candle. Machine B is actually no machine but rather hand labor with FC of $10,000 and VC of $.5/candle. If demand for Karla's candles is 25,000, which machine should she pick?

Smooth FM Radio uses a __________ approach when it mixes pre-recorded local segments with its national music blocks.

Flexibility can be achieved with

Describe some major challenges to implementing a successful build-to-order system?

A process map with the addition of a time axis becomes a process chart.

The textbook described four basic process models, and hinted that there are others. Construct an example of a hybrid process. Can this process be applied in any well-known organization? How common do you think hybrid processes are?

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 $3,000 per month, and variable costs of $10 per unit. The larger intermittent process has fixed costs of $12,000 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. 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?