Deck 7: Process Strategy

Question 1

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

Answer 1

True

Question 2

The tool that calculates which process has the lowest cost at any specified production volume is a crossover chart.

Answer 2

True

Question 3

The term focused processes refers to the quest for increased efficiency, whether in goods or services, that results from specialization.

Answer 3

True

Question 4

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

Question 5

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

Question 6

One use of camera-and-computer-based vision systems is to replace humans doing tedious and error-prone visual inspection activities.

Question 7

The typical full-service restaurant uses a product-focused process.

Question 8

One essential ingredient of mass customization is modular design.

Question 9

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

Question 10

In process-focused facilities, equipment utilization is low.

Question 11

Intermittent processes are organized around processes.

Question 12

Process control is the use of information technology to monitor and control a physical process.

Question 13

Activity times should not be included in a service blueprint.

Question 14

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

Question 15

A firm's process strategy is its approach to transforming resources into goods and services.

Question 16

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

Question 17

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

Question 18

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

Question 19

The assembly line is a classic example of a repetitive process.

Question 20

Professional services typically require low levels of labor intensity.

Question 21

Successful process redesign focuses on departmental areas where small, continuous improvements can be made.

Question 22

One of the similarities between repetitive focus and mass customization is

A) the wide variety of outputs
B) module inputs
C) the process layout
D) the standard cost
E) the high volume of outputs

Question 23

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

A) rolls of newsprint
B) paper forms
C) television sets
D) cigarettes
E) canned vegetables

Question 24

A job shop is an example of a(n)

A) repetitive process
B) continuous process
C) line process
D) intermittent process
E) specialized process

Question 25

Which of the following products is likely to be assembled on a repetitive process line?

A) automobiles
B) personal computers
C) dishwashers
D) television sets
E) all of the above

Question 26

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

Question 27

Processes can be environmentally friendly and socially responsible while still contributing to profitable strategies.

Question 28

An assembly line is an example of a

A) product-focused process
B) process-focused process
C) repetitive process
D) line process
E) specialized process

Question 29

A product-focused process is commonly used to produce

A) high-volume, high-variety products
B) low-volume, high-variety products
C) high-volume, low-variety products
D) low-variety products at either high- or low-volume
E) high-volume products of either high- or low-variety

Question 30

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

A) pocess, repetitive
B) product, repetitive
C) repetitive, product
D) process, product
E) product, mass customization

Question 31

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

Question 32

Flexible equipment with rapid changeovers is most closely associated with which approach?

A) product
B) process
C) mass customization
D) repetitive
E) A and C

Question 33

Swift movement through the facility is typical of goods in which approach?

A) product
B) process
C) mass customization
D) repetitive
E) A and C

Question 34

Production technology has had a major impact on services, but as yet there has been little reduction in service labor requirements.

Question 35

Which of the following industries is most likely to have low equipment utilization?

A) auto manufacturing
B) commercial baking
C) television manufacturing
D) chemical processing
E) restaurants

Question 36

An organization's process strategy

A) will have long-run impact on efficiency and flexibility of production
B) is the same as its transformation strategy
C) must meet various constraints, including cost
D) is concerned with how resources are transformed into goods and services
E) All of the above are true.

Question 37

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

Question 38

Arnold Palmer Hospital uses which focus?

A) process
B) repetitive
C) product
D) mass customization
E) A and D

Question 39

One of the similarities between process focus and mass-customization is

A) the volume of outputs
B) the process layout
C) the standard cost
D) the variety of outputs
E) All of the above are similarities

Question 40

Three types of processes are

A) goods, services, and hybrids
B) manual, automated, and service
C) process focus, repetitive focus, and product focus
D) modular, continuous, and technological
E) input, transformation, and output

Question 41

Product Focused processes

A) allow more customization, but are not very efficient
B) are desirable because resource needs increase slowly with the complexity of a process
C) are processes that are specialized for relatively few products or customer groups
D) apply only to service firms, not to manufacturers
E) are profitable because customers demand flexibility, not specialization

Question 42

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. The crossover point between process A and process B is

A) 50 units
B) 200 units
C) $2,500
D) $5,000
E) $9,500

Question 43

Which of the following is false regarding repetitive processes?

A) They use modules.
B) They allow easy switching from one product to the other.
C) They are the classic assembly lines.
D) They have more structure and less flexibility than a job shop layout.
E) They include the assembly of basically all automobiles.

Question 44

When done correctly, mass customization

A) increases pressure on supply-chain performance
B) helps eliminate the guesswork that comes with sales forecasting
C) drives down inventories
D) increases pressure on scheduling
E) all of the above

Question 45

Smooth FM Radio uses a __________ approach when it mixes pre-recorded local segments with its national music blocks.

A) mass customization
B) product focus
C) process focus
D) repetitive focus
E) both D and A

Question 46

High fixed costs and low variable costs are typical of which approach?

A) product
B) process
C) mass customization
D) repetitive
E) A and C

Question 47

Harley Davidson

A) utilizes job shops to make each of its modules
B) uses product focused manufacturing
C) uses a large number of modules to build a small number of different bikes
D) uses work cells to feed its assembly line
E) All of the above are true.

Question 48

Process X has fixed costs of $10,000 and variable costs of $2.40 per unit. Process Y has fixed costs of $9,000 and variable costs of $2.25 per unit. Which of the following statements is true?

A) The crossover point is approximately 6667 units.
B) It is impossible for one process to have both of its costs lower than those of another process.
C) Process Y is cheaper than process X at all volumes; there is no crossover point.
D) Process X should be selected for very large production volumes.
E) Process X is more profitable than process Y and should be selected.

Question 49

A quasi-custom product

A) gets its apparent customization from the combinations available from a small number of modules
B) is often the output of repetitive focus facilities
C) is a valid description of a fast food sandwich
D) is only possible when the focus strategy of service productivity improvement is in use
E) All but D are true.

Question 50

The crossover point is that production quantity where

A) variable costs of one process equal the variable costs of another process
B) fixed costs of a process are equal to its variable costs
C) total costs equal total revenues for a process
D) total costs for one process equal total costs for another process
E) the process no longer loses money

Question 51

Utilization in process-oriented facilities is frequently low because

A) the postponement strategy for improving service productivity is being used
B) scheduling in process-oriented facilities is not very complex
C) with high fixed costs, utilization is not very important
D) excess capacity for peak demands is desirable
E) low raw material inventories cause machines to be idled

Question 52

One fundamental difference between a process chart and a process map is that

A) the process chart uses a time dimension, while a process map is not time-oriented
B) the process chart includes the supply chain, while the process map stays within an organization
C) the process chart is more like a table, while the process map is more like a schematic diagram
D) the process chart focuses on the customer and on the provider's interaction with the customer, while the process map does not deal directly with the customer
E) None of these is true, because a process chart and a process map are the same thing.

Question 53

Which of the following phrases best describes product focus?

A) low volume, high variety
B) finished goods are usually made to order
C) processes are designed to perform a wide variety of activities
D) high fixed costs, low variable costs
E) raw material inventories are high relative to the value of the product

Question 54

Service blueprinting

A) provides the basis to negotiate prices with suppliers
B) mimics the way people communicate
C) determines the best time for each step in the process
D) focuses on the provider's interaction with the customer
E) shows how Ishikawa techniques can be added to improve quality

Question 55

Value Stream Mapping

A) is a variation on time function mapping
B) examines the supply chain to determine where value is added
C) extends time function mapping back to the supplier
D) starts with the customer and works backwards
E) All of the above are true.

Question 56

Which of the following companies use a mass customization approach?

A) Dell
B) Align Technology
C) Frito-Lay
D) Arnold Palmer hospital
E) A and B

Question 57

Which of the following phrases best describes process focus?

A) low volume, high variety
B) finished goods are usually made to a forecast and stored
C) operators are modestly skilled
D) high fixed costs, low variable costs
E) raw material inventories are low relative to the value of the product

Question 58

Which of the following characteristics best describes repetitive focus?

A) It uses sophisticated scheduling to accommodate custom orders.
B) Its output is a standardized product produced from modules.
C) Operators are broadly skilled.
D) It is widely used for the manufacture of steel.
E) Its costs are often known only after a job is done.

Question 59

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

A) process, mass customization; repetitive, product
B) product, mass customization; repetitive, process
C) product, process; repetitive, mass customization
D) repetitive, product; mass customization, process
E) repetitive, process; mass customization, product

Question 60

Which of the following transformations generally has the highest equipment utilization?

A) process-focused process
B) repetitive process
C) product-focused process
D) specialized process
E) modular process

Question 61

In mass service and service factory quadrants of the service process matrix, the operations manager could focus on all of the following except

A) automation
B) standardization
C) tight quality control
D) removing some services
E) customization

Question 62

Which of the following is true regarding opportunities to improve service processes?

A) Automation can do little to improve service processes, because services are so personal.
B) Layout is of little consequence, since services seldom use an assembly line.
C) If a work force is strongly committed, it need not be cross-trained and flexible.
D) All of the above are true.
E) None of the above is true.

Question 63

Advances in technology

A) have impacted the manufacturing sector only
B) have had only limited impact on services
C) have failed to change the level of customer interaction with an organization
D) have had dramatic impact on customer interaction with services and with products
E) have dramatically changed health care, but have not changed retailing

Question 64

"Operators simply load new programs, as necessary, to produce different products" describes

A) CAD
B) automated guided vehicles
C) flexible manufacturing systems
D) vision systems
E) process control

Question 65

Strategies for improving productivity in services are

A) separation, self-service, automation, and scheduling
B) lean production, strategy-driven investments, automation, and process focus
C) reduce inventory, reduce waste, reduce inspection, and reduce rework
D) high interaction, mass customization, service factory, and just-in-time
E) none of the above

Question 66

Which one of the following technologies is used only for material handling, not actual production or assembly?

A) robots
B) CNC
C) CAD
D) AGVs
E) FMS

Question 67

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

A) automation
B) equipment maintenance
C) sophisticated scheduling
D) human resources
E) all of the above

Question 68

Which of the following is typical of process control systems?

A) The output may take numerous forms including warning lights or statistical process control charts.
B) The data are analyzed by computer, which generates feedback.
C) Their sensors take measurements on a periodic basis.
D) The sensors' measurements are digitized.
E) all of the above

Question 69

The use of information technology to monitor and control a physical process is known as

A) process control
B) computer-aided design
C) information numeric control
D) numeric control
E) none of the above

Question 70

Which of the following is not a strategy for improving service productivity?

A) self-service
B) automation
C) scheduling
D) separation
E) mass customization

Question 71

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

A) adaptive control system
B) robotics
C) flexible manufacturing system
D) automatic guided vehicle (AGV) system
E) manufacturing cell

Question 72

Making environmentally sound products through efficient processes

A) is unprofitable, as long as recyclable materials prices are soft
B) is known as lean manufacturing
C) can still be profitable
D) is easier for repetitive processes than for product-focused processes
E) none of the above

Question 73

Which of the following is true regarding vision systems?

A) They are consistently accurate.
B) They are modest in cost.
C) They do not become bored.
D) All of the above are true.
E) None of the above is true.

Question 74

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

A) ASRS
B) AGV
C) CAD/CAM
D) RFID
E) FMS

Question 75

Computer-integrated manufacturing (CIM) includes manufacturing systems that have

A) computer-aided design, a flexible manufacturing system, inventory control, warehousing and shipping integrated
B) transaction processing, management information systems, and decision support systems integrated
C) automated guided vehicles, robots, and process control
D) robots, automated guided vehicles, and transfer equipment
E) all of the above

Question 76

Ethical and environmentally friendly processes include which of the following?

A) emission controls
B) recycling
C) efficient use of resources
D) reduction of waste by-products
E) all of the above

Question 77

Which of the following is not one of the essential ingredients for mass customization?

A) storage of the many variations of finished goods to quickly accommodate the high level of customization
B) personnel and facility flexibility
C) reliance on modular design
D) rapid throughput
E) very effective scheduling

Question 78

A drawing of the movement of material, product, or people is a

A) flowchart
B) process chart
C) service blueprint
D) process map
E) none of the above

Question 79

"Automatic placement and withdrawal of parts and products into and from designated places in a warehouse" describes

A) AGV
B) CAD/CAM
C) CIM
D) ASRS
E) FMS

Question 80

Process redesign

A) is the fundamental rethinking of business processes
B) can focus on any process
C) tries to bring about dramatic improvements in performance
D) focuses on activities that cross functional lines
E) all of the above