Exam 7: Process Strategy

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Why do modern operations managers look for flexibility in their equipment?

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Flexibility in equipment provides managers with the ability to respond to changes in demand with little penalty in time,cost,or customer value.And in this age of rapid technological change and short product life cycles,adding flexibility to the production process can be a major competitive advantage.

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

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Provide an example of the postponement strategy for improving service productivity.

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The postponement strategy refers to customizing the product at delivery,not at production.Examples will vary,but a home builder might leave some tasks unfinished until the house is sold,so that the buyer can make those final decisions.Carpeting,paint colors,cabinet doors,and some appliance choices might be good examples.Another example would be cars or vans.

Brandon's computer shop is considering two different configuration options.The first one is to have each computer built by the sales associates when they have free time.The second option is to hire a dedicated assembly technician.Option A has variable costs of $50 per computer and no fixed costs.Option B has a fixed cost of $1,000 but variable costs of only $5 per computer.What is the cross-over point?

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Automated storage and retrieval systems are commonly used in distribution facilities of retailers.

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Provide an example of the focus strategy for improving service productivity.

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A job shop is an example of a(n):

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The local convenience store makes personal sized pizzas.Currently,its process makes complete pizzas,fully cooked,for the customer.This process has a fixed cost of $20,000,and a variable cost of $1.75 per pizza.The owner is considering a different process that can make pizzas in two ways: completely cooked (as before),or partially cooked and then flash frozen for the customer to finish heating at home.This alternate process has a fixed cost of $24,000,but a lower variable cost (because much less energy is used in baking)of $1.25 per pizza. a.What is the crossover point between the existing process and the proposed process? b.If the owner expects to sell 9,000 pizzas,should he get the new oven?

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Advances in technology:

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

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Which one of the following products is most likely made in a job shop environment?

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

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Kirstin is thinking about opening a Chinese restaurant and needs to buy a rice cooker.Machine A has fixed costs of $100 and variable costs of $1/pound.Machine B has fixed costs of $500 and variable costs of $.1/pound.If Kirstin plans to sell 100 pounds of rice,which machine should she choose? What is the cross-over point?

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Which of the following characteristics best describes repetitive focus?

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Which of the following is FALSE regarding repetitive processes?

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

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Harley Davidson:

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A product-focused process is commonly used to produce:

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A quasi-custom product:

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Karla's candle factory is considering two different manufacturing options.Option A is highly automated with fixed costs of $25,000 and variable costs of $.1/candle.Option B uses hand labor with fixed costs of $10,000 and variable costs of $.5/candle.If demand for Karla's candles is 25,000,which option should she pick?

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