Exam 7: Process Design

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Activity times should not be included in a service blueprint.

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False

A product-focused process is commonly used to produce:

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C

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?

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The answer is that there is no demand for which Supplier B's machine will be better.Both Supplier B's fixed and variable costs are higher than Supplier A's.

Frito-Lay is to ________ focus as Harley Davidson is to ________ focus.

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A quasi-custom product:

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Which of the following phrases best describes product focus?

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

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The local convenience store makes personal pan 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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Why is Harley-Davidson identified as a repetitive manufacturer,not a mass customizer?

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Which of the following phrases best describes process focus?

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Time-function mapping is a flowchart with time added to the horizontal axis.

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

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Which of the following technologies could enable a cashier to scan the entire contents of a shopping cart in seconds?

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Align Technology uses a ________ approach to produce clear plastic removable aligners.

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________ is the use of information technology to control a physical process.

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Flowcharts use distance,but not time,to show the movement of material,product,or people through a process.

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Harley-Davidson,because it has so many possible combinations of products,utilizes the process strategy of mass customization.

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

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An organization's approach to transforming resources into goods and services is called its ________.

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

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