Deck 6: Processes and Technology

Question 1

Process planning determines how a manufactured good is produced or a service is provided.

Answer 1

True

Question 2

Companies that control the production of virtually all of the parts that go into a product are said to be horizontally integrated.

Answer 2

False

Question 3

Batch production is characterized by small volumes and high product variety.

Answer 3

True

Question 4

A firm's process strategy defines the extent of customer involvement in providing a service.

Question 5

Planning,analyzing,and improving processes is the purpose of operations management.

Question 6

Process design specifies what tasks need to be done and how they are to be coordinated among functions,people,and organizations.

Question 7

One-of-a-kind production of a product based on a customer's unique specifications is a called a project.

Question 8

Subcontracting is rarely a source of human resources for a project.

Question 9

A firm's process strategy rarely defines its capital intensity.

Question 10

Most of the operations in batch production involve the assembly rather than fabrication.

Question 11

One characteristic of batch production is variable demand.

Question 12

Outsourcing occurs when a company cannot or will not make all the parts that go into a product.

Question 13

Supplier speed is rarely an important consideration in outsourcing decisions.

Question 14

Supplier reliability is often an important consideration in outsourcing decisions.

Question 15

A process is a group of unrelated tasks with specific inputs and outputs.

Question 16

The organization's overall approach for producing goods and providing services is its process strategy.

Question 17

Customers are rarely involved in a project that takes an extended period of time to complete

Question 18

Process strategy defines what tasks need to be done and how they are to be coordinated among functions,people,and organizations.

Question 19

Producing a high volume of a single product is a characteristic of batch production.

Question 20

Companies that control the production of virtually all of the parts that go into a product are said to be vertically integrated.

Question 21

A print shop is an example of which of the following process choices?

A)project
B)batch production
C)continuous production
D)mass production

Question 22

Break-even analysis examines the cost tradeoffs associated with demand volume when selecting a process.

Question 23

Vertical integration is the degree to which a firm produces the parts that go into its products.

Question 24

Process innovation reflects the total redesign of a process for a breakthrough improvement.

Question 25

Most of the operations in batch production involve

A)fabrication
B)assembly
C)continuous processing
D)outsourcing

Question 26

A process flowcharts is a useful tool for analyzing a process because it often highlights nonproductive activities.

Question 27

The ease of adjusting resources in response to changes in demand defines firm's

A)vertical integration
B)process flexibility
C)customer involvement
D)capital intensity

Question 28

Mass production is characterized by the use of general equipment and highly skilled labor.

Question 29

Variable demand and small to moderate quantities produced to order are characteristics usually associated with

A)mass production
B)continuous production
C)projects
D)batch production

Question 30

Mass production is often associated with assembly lines.

Question 31

Mass production is characterized by high volumes of a customized product for a mass market.

Question 32

Continuous production is characterized by very high volumes of commodity products.

Question 33

Which of the following is not a potential risk associated with a project?

A)huge swings in resource requirements
B)extensive learning curve benefits
C)limited learning curve benefits
D)small swings in resource requirements

Question 34

Mass production is characterized by the use of specialized equipment and workers with limited skills.

Question 35

Which of the following is not an advantage of batch production?

A)frequent changes in product mix
B)flexibility
C)customization of output
D)quality reputation

Question 36

Mass production is characterized by high volumes of a standard product for a mass market.

Question 37

A firm's process strategy defines all of the following except its

A)capital intensity.
B)process flexibility.
C)vertical integration.
D)process selection.

Question 38

Batch production is also known as a job shop because it creates more jobs than any of the other process choices

Question 39

Most of the operations in batch production involve fabrication rather than assembly.

Question 40

The extent to which the firm will produce the inputs and control the outputs of each stage of the production process is known as

A)vertical integration.
B)process flexibility.
C)process planning.
D)capital intensity.

Question 41

Disadvantages of batch production include all of the following except

A)high per-unit costs.
B)frequent changes in product mix.
C)flexibility.
D)scheduling problems.

Question 42

Technology decisions typical in operations management include all the following areas except

A)information technology.
B)product technology.
C)process technology.
D)communication technology.

Question 43

The product-process matrix includes all the following process types except

A)mass production.
B)stable production.
C)continuous production.
D)batch production.

Question 44

Which of the following is not a characteristic of mass production?

A)made-to-stock
B)stable demand
C)high product variety
D)high product volume

Question 45

As process selection moves up the diagonal from project to continuous production

A)demand volume increases.
B)product variety increases.
C)capital intensity decreases.
D)flexibility increases.

Question 46

Which of the following is NOT associated with the sourcing continuum?

A)Joint venture
B)In-house production
C)Strategic alliance
D)Single contract

Question 47

Complex scheduling problems are most likely to occur with which process type?

A)mass production systems
B)batch production systems
C)continuous production systems
D)repetitive manufacturing systems

Question 48

What is a process strategy and how does it affect the firm?

Question 49

A company is evaluating which of two alternatives should be used to produce a product that will sell for $35.00 per unit.The following cost information describes the two alternatives

If total demand volume)is 150,000 units,then the company should

A)select Process A with a profit of $1,300,000 to maximize profit
B)select Process B with a profit of $750,000 to maximize profit
C)select Process A with a profit of $1,000,000 to maximize profit
D)select Process B with a profit of $1,050,000 to maximize profit

Question 50

One disadvantage of mass production is its

A)efficiency.
B)speed of production.
C)low per-unit costs.
D)lack of responsiveness.

Question 51

All the following are factors influencing the outsourcing decision except

A)capacity.
B)expertise.
C)quality.
D)product variety.

Question 52

A company is considering producing a product for a new market.The fixed costs required for manufacturing and delivering the product is $50,000.Labor and material costs are estimated to be approximately $25.00 per product.If the product is sold for $35.00 each,the firm's break-even volume would be

A)50,000 units
B)5,000 units
C)2500 units
D)500 units

Question 53

Steel,paper,paints,and chemicals are examples of products that use

A)batch production.
B)repetitive production.
C)continuous production.
D)mass production.

Question 54

A company is considering producing an item that can be sold for $37.50 per unit.If the fixed costs for setting up production are $225,000 and the variable cost per unit for the item is $35.00 then the break-even volume for this item is

A)6,000 units
B)6,429 units
C)72,500 units
D)90,000 units

Question 55

A company is evaluating which of two alternatives should be used to produce a product that will sell for $35.00 per unit.The following cost information describes the two alternatives

The break-even volume for Process A is

A)50,000 units
B)62,500 units
C)30,000 units
D)20,000 units

Question 56

A company is evaluating which of two alternatives should be used to produce a product that will sell for $35.00 per unit.The following cost information describes the two alternatives

For what level of volume output)would the firm prefer Process A to Process B?

A)for all volume levels greater than 75,000
B)for all volume levels greater than 97,500
C)for all volume levels greater than 117,500
D)for all volume levels greater than 125,000

Question 57

A company is evaluating which of two alternatives should be used to produce a product that will sell for $35.00 per unit.The following cost information describes the two alternatives

If total demand volume)is 120,000 units,then the company should

A)select Process A with a profit of $940,000 to maximize profit
B)select Process B with a profit of $450,000 to maximize profit
C)select Process A with a profit of $700,000 to maximize profit
D)select Process B with a profit of $690,000 to maximize profit

Question 58

A company is evaluating which of two alternatives should be used to produce a product that will sell for $35.00 per unit.The following cost information describes the two alternatives

The break-even volume for Process B is

A)50,000 units
B)62,500 units
C)30,000 units
D)20,000 units

Question 59

Mass production systems tend to employ

A)specialized equipment and limited labor skills.
B)specialized equipment and specialized labor skills.
C)general purpose equipment and limited labor skills.
D)general purpose equipment and specialized labor skills.

Question 60

If a firm can sell a product for $40.00 each,then what is the volume needed to break-even if the fixed cost of production is $125,000.00 and labor and material costs are $30.00 per item?

A)125,000
B)12,500
C)4,167
D)3,250

Question 61

List some non-economic factors that can influence a firm's outsourcing decision.