Exam 7: Process Strategy

Professional services typically require low levels of labor intensity.

Value-stream mapping:

A special form of time-function mapping,which goes beyond the organization into its supply chain,is ________.

In mass service and professional service,the operations manager should focus extensively on:

A firm is about to undertake the manufacture of a product,and it 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 per month and variable costs of $2 per unit.A repetitive focus plant has fixed costs of $50,000 per month 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?

Flexible manufacturing systems,because of easily changed control programs,are able to perform such tasks as manufacturing one-of-a-kind parts economically.

Which of the following characteristics best describes repetitive focus?

Which of the following companies use a mass customization approach?

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 would drop the variable cost to $.28 per unit,but has fixed costs of $150,000.What is the cross-over point between the two machines?

What is mass customization?

Which of the following phrases best describes process focus?

________ is a process strategy based on a product-oriented production process that uses modules.

What is the link between focused processes and specialization? What kinds of focus are possible?

Goods made to order are typical of ________ and ________ approaches while goods made to forecast are typical of ________ and ________ approaches.

Intermittent processes are organized around processes.

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 cost = $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.

When selecting new equipment and technology,decision makers look for flexibility-the ability to respond with little penalty in time,cost,or customer value.

Identify the five major tools of process analysis and design.Describe them in a sentence or two each.

Mary is considering purchasing a machine from one of two suppliers.Supplier A's machine has an annual fixed cost of $10,000 and a unit variable cost of $2.10.Supplier B's machine has an annual fixed cost of $16,000 and a unit variable cost of $3.00.How large should Mary's annual demand be in order to make Supplier B's machine the better choice?

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