Exam 5: Process Configuration Strategies

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What are economies of scales? Who developed the theory?

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Economies of scale are reductions in costs per unit achieved as a result of producing larger volumes of work.The theoretical concept was developed by Adam Smith,a Scottish political economist (An Inquiry into the Nature and Causes of The Wealth of Nations,1776).

It is necessary to calculate the demand level at which the total costs are about the same for batch production or the intermittent flow shop.

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_____ processes turn a single,basic ingredient into several or (even) many products.

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The method of transportation and the care with which the shipment is arranged will not affect the quality of the merchandise when it is received.

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Being the high-cost producer is a major goal of most firms.

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_____ are defined as workstations linked together on common sets of projects and families of parts.

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_____ produce one product usually without any interruption.With proper design (using economies of scope),these processes can fan out derivative products as part of an uninterrupted stream.

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_____ is(are) efficient in repetitive production of the same kind of unit.

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Typically,the operations manager is not responsible for the sourcing decisions.

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When the materials arrive as needed,the process is characterized as being

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The automobile industry,in their assembly process,uses a paced conveyor to move the chassis from station to station.This is usually cited as an example of a pure synthetic process.If the assembly process of an older U.S.auto assembly plant takes 28 hours,and there are 1,000 workstations along the conveyor path,what is the length of time that the conveyor is stopped at each station?

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Discuss the differences between synthetic and analytic processes.Why is this a good way to categorize process flows?

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_____ are the type of activity flow or production process being used.

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What is a custom shop? Why does a custom shop use general-purpose equipment?

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For synthetic processes,it is important to be very focused and sharp about marketing and selling basically the one product to be sold.

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Synthetic processes usually involve many parts and only one supplier for each of them.

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The board game Monopoly is a simulation of real-estate transactions.

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There is ample evidence that the use of optical scanning methods and voice-activated request systems has increased reliance on old-style record keeping.

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Customized process abilities are associated with the highest level of variety and the most unique products.

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It is assumed that the job consists of ten steps.The sum of operations times is 30 minutes and the entire job (all ten steps) is done at one station.Then n = 1 and C (the cycle time) is _____ minutes.Therefore,two units are produced per hour.

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