Question 1

Divergence is the extent to which the process is customized with considerable latitude on how the tasks are performed.

Accepted Answer

A) True 
 B)False

Question 2

Reengineering is the fundamental rethinking and radical redesign of processes to improve performance dramatically.

Accepted Answer

A) True 
 B)False

Question 3

________ is the process of creating labor standards based on the judgment of skilled observers.

Accepted Answer

The answer of ________ is the process of creating labor...

Question 4

Scenario 2.3
A job consists of three elements.Twenty observations for each element were timed,and the resulting data are shown in the following table.A performance rating has also been assigned for each element,as shown in the table.The job has an allowance of 15% of normal time.
  
-Use the information in Scenario 2.3.What is the normal time for job element #2?

Accepted Answer

A) greater than or equal to 3 minutes 
B) less than 3 minutes but greater than or equal to 2.6 minutes 
C) less than 2.6 minutes but greater than or equal to 2.2 minutes 
D) less than 2.2 minutes 
A) greater than or equal to 3 minutes 
B) less than 3 minutes but greater than or equal to 2.6 minutes 
C) less than 2.6 minutes but greater than or equal to 2.2 minutes 
D) less than 2.2 minutes

Question 5

________ are performance measures that are established for a process and the steps within it.

Accepted Answer

The answer of ________ are performance measures that are established...

Question 6

Scenario 2.6
You currently purchase a part used in your production process from an outside supplier,and have decided to begin making this part in-house.You have two equipment options for moving production in-house: special-purpose equipment and general-purpose equipment.Cost information for these two options is as follows:
  
-Use Scenario 2.6 to answer this question.For what range of output is the Special-Purpose Equipment the low-cost option?

Accepted Answer

A) 30,000 or more units per year 
B) 0 - 30,000 units per year 
C) 0 - 40,000 units per year 
D) 40,000 or more units per year 
A) 30,000 or more units per year 
B) 0 - 30,000 units per year 
C) 0 - 40,000 units per year 
D) 40,000 or more units per year

Question 7

Scenario 2.4
A company is considering two options for the production of a part needed downstream in the manufacturing process.Particulars are as follows:
  
-Use Scenario 2.4 to answer this burning question.For a monthly volume of 3,000 units,which automation approach should be chosen?

Accepted Answer

A) specialized automation 
B) general automation 
C) Either approach is acceptable,because costs are the same for either option at 3,000 units. 
D) Can't be determined with information given. 
A) specialized automation 
B) general automation 
C) Either approach is acceptable,because costs are the same for either option at 3,000 units. 
D) Can't be determined with information given.

Question 8

The bursar's office at a large state school sends a team to the bookstore on campus to see how they handle customers and process payments.This is an example of functional benchmarking.

Accepted Answer

A) True 
 B)False

Question 9

With flexible automation,the ability to reprogram instructions can be useful in:

Accepted Answer

A) line flow,but not flexible flow,operations. 
B) flexible flow,but not line flow,operations. 
C) either line flow or flexible flow operations. 
D) situations in which top efficiency is mandatory,but only if volumes are high. 
A) line flow,but not flexible flow,operations. 
B) flexible flow,but not line flow,operations. 
C) either line flow or flexible flow operations. 
D) situations in which top efficiency is mandatory,but only if volumes are high.

Question 10

Scenario 2.6
You currently purchase a part used in your production process from an outside supplier,and have decided to begin making this part in-house.You have two equipment options for moving production in-house: special-purpose equipment and general-purpose equipment.Cost information for these two options is as follows:
  
-Use Scenario 2.6 to find the truth.What are total costs under the Special-Purpose Equipment option for an annual quantity of 40,000 units?

Accepted Answer

A) $400,000 
B) $500,000 
C) $800,000 
D) $850,000 
A) $400,000 
B) $500,000 
C) $800,000 
D) $850,000

Question 11

An accounting professor realizes she is woefully inadequate at performing research.She discusses the art of research with a colleague and gains important insights that permit her to establish a research agenda.This is an example of:

Accepted Answer

A) competitive benchmarking. 
B) functional benchmarking. 
C) internal benchmarking. 
D) generic benchmarking. 
A) competitive benchmarking. 
B) functional benchmarking. 
C) internal benchmarking. 
D) generic benchmarking.

Question 12

A(n)________ shows processing steps grouped according to which company department is responsible for performing them.

Accepted Answer

The answer of A(n)________ shows processing steps grouped according to...

Question 13

A moment of truth or service encounter is face-to-face interaction between the customer and a service provider.

Accepted Answer

A) True 
 B)False

Question 14

________ is the ease with which employees and equipment can handle a wide variety of products,output levels,duties,and functions.

Accepted Answer

Resource f

Question 15

Benchmarking involves four basic steps,which are:

Accepted Answer

A) plan,do,check,and act. 
B) planning,analysis,integration,and action. 
C) search,check,systematize,and act. 
D) find,do,change,and calibrate. 
A) plan,do,check,and act. 
B) planning,analysis,integration,and action. 
C) search,check,systematize,and act. 
D) find,do,change,and calibrate.

Question 16

Which of the following statements concerning resource flexibility is BEST?

Accepted Answer

A) Flexible equipment is useful to companies with low production volumes and high customization. 
B) Investment in general-purpose equipment is warranted if the firm expects to sell more than the break-even amount. 
C) Manufacturing efficiency increases with general-purpose equipment. 
D) Resource flexibility is crucial for line-flow processing. 
A) Flexible equipment is useful to companies with low production volumes and high customization. 
B) Investment in general-purpose equipment is warranted if the firm expects to sell more than the break-even amount. 
C) Manufacturing efficiency increases with general-purpose equipment. 
D) Resource flexibility is crucial for line-flow processing.

Question 17

Keith assembles peanut valves and the recorded data is displayed in the table.What is the normal time for this job element if he is rated at 75%?

Accepted Answer

A) greater than or equal to 3 minutes 
B) less than 3 minutes but greater than or equal to 2.6 minutes 
C) less than 2.6 minutes but greater than or equal to 2.2 minutes 
D) less than 2.2 minutes 
A) greater than or equal to 3 minutes 
B) less than 3 minutes but greater than or equal to 2.6 minutes 
C) less than 2.6 minutes but greater than or equal to 2.2 minutes 
D) less than 2.2 minutes

Question 18

Which statement about economies of scope is NOT true?

Accepted Answer

A) Economies of scope are often attained through programmable automation. 
B) Economies of scope bring together two competitive priorities-customization and low price. 
C) Economies of scope reflect the ability to produce multiple products more cheaply in combination than separately. 
D) Economies of scope reflect low capital intensity and high resource flexibility. 
A) Economies of scope are often attained through programmable automation. 
B) Economies of scope bring together two competitive priorities-customization and low price. 
C) Economies of scope reflect the ability to produce multiple products more cheaply in combination than separately. 
D) Economies of scope reflect low capital intensity and high resource flexibility.

Question 19

A process troubleshooter has to decide which problem to address first with his or her cause-and-effect diagram.The data analysis tool that will help him decide which problem to tackle first is a:

Accepted Answer

A) scatter diagram. 
B) check sheet. 
C) flowchart. 
D) Pareto chart. 
A) scatter diagram. 
B) check sheet. 
C) flowchart. 
D) Pareto chart.

Question 20

Scenario 2.4
A company is considering two options for the production of a part needed downstream in the manufacturing process.Particulars are as follows:
  
-Use Scenario 2.4 to answer this question.What is the monthly break-even quantity for choosing between the two automation approaches?

Accepted Answer

A) 1,000 units 
B) 2,000 units 
C) 6,000 units 
D) 12,000 units 
A) 1,000 units 
B) 2,000 units 
C) 6,000 units 
D) 12,000 units

Exam 2: Process Strategy and Analysis

Divergence is the extent to which the process is customized with considerable latitude on how the tasks are performed.

Reengineering is the fundamental rethinking and radical redesign of processes to improve performance dramatically.

________ is the process of creating labor standards based on the judgment of skilled observers.

________ are performance measures that are established for a process and the steps within it.

Scenario 2.4 A company is considering two options for the production of a part needed downstream in the manufacturing process.Particulars are as follows: -Use Scenario 2.4 to answer this burning question.For a monthly volume of 3,000 units,which automation approach should be chosen?

The bursar's office at a large state school sends a team to the bookstore on campus to see how they handle customers and process payments.This is an example of functional benchmarking.

With flexible automation,the ability to reprogram instructions can be useful in:

An accounting professor realizes she is woefully inadequate at performing research.She discusses the art of research with a colleague and gains important insights that permit her to establish a research agenda.This is an example of:

A(n)________ shows processing steps grouped according to which company department is responsible for performing them.

A moment of truth or service encounter is face-to-face interaction between the customer and a service provider.

________ is the ease with which employees and equipment can handle a wide variety of products,output levels,duties,and functions.

Benchmarking involves four basic steps,which are:

Which of the following statements concerning resource flexibility is BEST?

Keith assembles peanut valves and the recorded data is displayed in the table.What is the normal time for this job element if he is rated at 75%?

Which statement about economies of scope is NOT true?

A process troubleshooter has to decide which problem to address first with his or her cause-and-effect diagram.The data analysis tool that will help him decide which problem to tackle first is a:

Scenario 2.4 A company is considering two options for the production of a part needed downstream in the manufacturing process.Particulars are as follows: -Use Scenario 2.4 to answer this question.What is the monthly break-even quantity for choosing between the two automation approaches?

Using Operations to Create Value

Quality and Performance

Capacity Planning

Constraint Management

Lean Systems

Project Management

Forecasting

Inventory Management

Operations Planning and Scheduling

Resource Planning

Supply Chain Design

Supply Chain Logistic Networks

Supply Chain Integration

Supply Chain Sustainability

Decision Making

Waiting Lines

Special Inventory Models

Linear Programming

Simulation

Financial Analysis

Acceptance Sampling Plans

Measuring Output Rates

Learning Curve Analysis

Operations Scheduling

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