Exam 7: Process Strategy

An example of the postponement strategy for improving service productivity is having the customer wait until you have sufficient time to serve the customer.

Optical checkout scanners and ATMs are examples of technology's impact on services.

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

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.What is the crossover point between process A and process B?

A value-stream map includes both (1)inventory quantities,and (2)symbols for customers and suppliers.

A system using an automated work cell controlled by electronic signals from a common centralized computer facility is called:

A product is currently made in a process-focused shop,where fixed costs are $9,000 per year and variable costs are $50 per unit.The firm is considering a fundamental shift in process,to repetitive manufacturing.The new process would have fixed costs of $90,000,and variable costs of $5.What is the crossover point for these processes? For what range of outputs is each process appropriate?

Service blueprinting is a process analysis technique that focuses on the customer and the provider's interaction with the customer.