Exam 8: Process Strategy

A product is currently made in a process-focused shop, where fixed costs are $8,000 per year and variable cost is $40 per unit. The firm currently sells 200 units of the product at $200 per unit. A manager is considering a repetitive focus to lower costs (and lower prices, thus raising demand). The costs of this proposed shop are fixed costs = $24,000 per year and variable costs = $10 per unit. If a price of $80 will allow 400 units to be sold, what profit (or loss) can this proposed new process expect? Do you anticipate that the manager will want to change the process? Explain.

Which of the following phrases best describes product focus?

Which of the following is trueregarding opportunities to improve service processes?

Why is Harley-Davidson identified as a repetitive manufacturer, not a mass customizer?

__________ is the use of information technology to control a physical process.

A job shop is an example of a(n)

The process strategy that is organized around processes to facilitate low-volume, high-variety processes is called a(n) __________.

Which of the following statements regarding ethical and environmentally friendly processes is true?

An organization's approach to transforming resources into goods and services is called its __________.

Computer-integrated manufacturing (CIM) includes manufacturing systems that have

Processes can be environmentally friendly and socially responsible while still contributing to profitable strategies.