Question 1

One disadvantage of mass production is its

Accepted Answer

A)  efficiency. 
B)  speed of production. 
C)  low per-unit costs. 
D)  lack of responsiveness. 
A)  efficiency. 
B)  speed of production. 
C)  low per-unit costs. 
D)  lack of responsiveness. D

Question 2

A process flowchart is a useful tool for analyzing a process because it often highlights nonproductive activities.

Accepted Answer

A) True 
 B)False  True

Question 3

Mass production is characterized by the use of specialized equipment and workers with limited skills.

Accepted Answer

A) True 
 B)False  True

Question 4

Batch production is also known as a job shop because it creates more jobs than any of the other process choices.

Accepted Answer

A) True 
 B)False

Question 5

Complex scheduling problems are most likely to occur with which process type?

Accepted Answer

A)  mass production 
B)  batch production 
C)  continuous production 
D)  None of these answer choices is correct. 
A)  mass production 
B)  batch production 
C)  continuous production 
D)  None of these answer choices is correct.

Question 6

Steel, paper, paints, and chemicals are examples of products that use

Accepted Answer

A)  batch production. 
B)  repetitive production. 
C)  continuous production. 
D)  mass production. 
A)  batch production. 
B)  repetitive production. 
C)  continuous production. 
D)  mass production.

Question 7

What is a process strategy and how does it affect the firm?

Accepted Answer

A process strategy is an organization's

Question 8

Process innovation reflects the total redesign of a process for a breakthrough improvement.

Accepted Answer

A) True 
 B)False

Question 9

A company is considering producing an item that can be sold for $37.50 per unit. If the fixed costs for setting up production are $225,000 and the variable cost per unit for the item is $35 then the breakeven volume for this item is

Accepted Answer

A)  6,000 units. 
B)  6,429 units. 
C)  72,500 units. 
D)  90,000 units. 
A)  6,000 units. 
B)  6,429 units. 
C)  72,500 units. 
D)  90,000 units.

Question 10

Process planning determines how a manufactured good is produced or a service is provided.

Accepted Answer

A) True 
 B)False

Question 11

A firm's process strategy defines the extent of customer involvement in providing a service.

Accepted Answer

A) True 
 B)False

Question 12

Continuous production is characterized by very high volumes of commodity products.

Accepted Answer

A) True 
 B)False

Question 13

Companies that control the production of virtually all of the parts that go into a product are said to be horizontally integrated.

Accepted Answer

A) True 
 B)False

Question 14

The first step in building a flowchart is to

Accepted Answer

A)  define process boundaries. 
B)  map out the process 
C)  determine objectives 
D)  None of these answer choices is correct. 
A)  define process boundaries. 
B)  map out the process 
C)  determine objectives 
D)  None of these answer choices is correct.

Question 15

Outsourcing occurs when a company cannot or will not make all the parts that go into a product.

Accepted Answer

A) True 
 B)False

Question 16

List some noneconomic factors that can influence a firm's outsourcing decision.

Accepted Answer

There are several noneconomic factors th

Question 17

Process design specifies what tasks need to be done and how they are to be coordinated among functions, people, and organizations.

Accepted Answer

A) True 
 B)False

Question 18

If a firm can sell a product for $40each, then what is the volume needed to breakeven if the fixed cost of production is $125,000 and labor and material costs are $30. per item?

Accepted Answer

A)  125,000 
B)  12,500 
C)  4,167 
D)  3,250 
A)  125,000 
B)  12,500 
C)  4,167 
D)  3,250

Question 19

A company is evaluating which of two alternatives should be used to produce a product that will sell for $35 per unit. The following cost information describes the two alternatives.   The break-even volume for Process B is

Accepted Answer

A)  50,000 units. 
B)  62,500 units. 
C)  30,000 units. 
D)  20,000 units. 
A)  50,000 units. 
B)  62,500 units. 
C)  30,000 units. 
D)  20,000 units.

Question 20

Mass production systems tend to employ

Accepted Answer

A)  specialized equipment and limited labor skills. 
B)  specialized equipment and specialized labor skills. 
C)  general purpose equipment and limited labor skills. 
D)  general purpose equipment and specialized labor skills. 
A)  specialized equipment and limited labor skills. 
B)  specialized equipment and specialized labor skills. 
C)  general purpose equipment and limited labor skills. 
D)  general purpose equipment and specialized labor skills.

Exam 6: Processes and Technology

One disadvantage of mass production is its

A process flowchart is a useful tool for analyzing a process because it often highlights nonproductive activities.

Mass production is characterized by the use of specialized equipment and workers with limited skills.

Batch production is also known as a job shop because it creates more jobs than any of the other process choices.

Complex scheduling problems are most likely to occur with which process type?

Steel, paper, paints, and chemicals are examples of products that use

What is a process strategy and how does it affect the firm?

Process innovation reflects the total redesign of a process for a breakthrough improvement.

A company is considering producing an item that can be sold for $37.50 per unit. If the fixed costs for setting up production are $225,000 and the variable cost per unit for the item is $35 then the breakeven volume for this item is

Process planning determines how a manufactured good is produced or a service is provided.

A firm's process strategy defines the extent of customer involvement in providing a service.

Continuous production is characterized by very high volumes of commodity products.

Companies that control the production of virtually all of the parts that go into a product are said to be horizontally integrated.

The first step in building a flowchart is to

Outsourcing occurs when a company cannot or will not make all the parts that go into a product.

List some noneconomic factors that can influence a firm's outsourcing decision.

Process design specifies what tasks need to be done and how they are to be coordinated among functions, people, and organizations.

If a firm can sell a product for $40each, then what is the volume needed to breakeven if the fixed cost of production is $125,000 and labor and material costs are $30. per item?

A company is evaluating which of two alternatives should be used to produce a product that will sell for $35 per unit. The following cost information describes the two alternatives. The break-even volume for Process B is

Mass production systems tend to employ

Introduction to Operations and Supply Chain Management

Quality Management

Statistical Process Control

Product Design

Service Design

Capacity and Facilities Design

Human Resources

Project Management

Supply Chain Management Strategy and Design

Global Supply Chain Procurement and Distribution

Forecasting

Inventory Management

Sales and Operations Planning

Resource Planning

Lean Systems

Operational Decision-Making Tools: Decision Analysis

Operational Decision-Making Tools: Acceptance Sampling

Operational Decision-Making Tools: Facility Location Models

Operational Decision-Making Tools: Work Measurement

Operational Decison-Making Tools: Transportation and Transshipment Models

Operational Decision-Making Tools: Simulation

Operational Decision-Making Tools: Linear Programming

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