Deck 3: Process Strategy

Question 1

Active contact in services means that the customer is very much part of the creation of the service.

Answer 1

True

Question 2

A job process has a relatively high level of customization.

Answer 2

True

Question 3

Processes,by their nature,are found only in the operations function of an organization.

Answer 3

False

Question 4

Fixed automation maximizes efficiency and results in the lowest variable cost per unit possible with high output volume.

Question 5

Physical presence does not occur in a manufacturing service process.

Question 6

No process can exist without at least one product or service.

Question 7

A continuous flow process is characterized by a high degree of job customization.

Question 8

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

Question 9

Back office work is typically routine,with many steps having considerable divergence.

Question 10

Supply chain processes are simply business processes that have either external customers or external suppliers.

Question 11

Process structure is the mix of equipment and human skills in a process.

Question 12

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

Question 13

Resource flexibility determines whether resources are organized around products or processes.

Question 14

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

Question 15

Process decisions are strategic in nature.

Question 16

Customer involvement reflects the ways in which customers become part of the process and the extent of their participation.

Question 17

A job process has the highest level of customization of the process choices.

Question 18

A front office structure features high levels of customer contact where the service provider interacts directly with the internal or external customer.

Question 19

Services that process possessions or information are more likely to be found in a front office instead of a back office.

Question 20

Service providers with a line process tend to move customers,materials,or information in a fixed sequence from one operation to the next.

Question 21

The principle of postponement is modeled by the worker that has known his assignment for several weeks,but waits until the day before the product is to be delivered to begin production.

Question 22

An off-diagonal position in the product-process matrix is typically more profitable than a position on the diagonal.

Question 23

A block plan is a table that gives a measure of the relative importance of each pair of centers being located close together.

Question 24

A block plan allocates space and indicates the placement of each department within the framework of a new or existing facility.

Question 25

Capital intensive automation is appropriate for high and low volume operations.

Question 26

Job processes generally have higher volumes than batch processes.

Question 27

High task divergence requires less flexibility of the process's resources.

Question 28

A layout is the physical arrangement of human and capital resources used by processes clustered together into operations.

Question 29

High customer involvement increases service provider productivity and makes quality measurement easier.

Question 30

The degree of process divergence is what keeps a large batch process from being economically produced using a line process.

Question 31

Assemble-to-order strategy produces a wide variety of products from relatively few assemblies and components after orders are received.

Question 32

Petroleum refineries typically use continuous flow processes.

Question 33

A make-to-stock strategy involves holding items in stock for immediate delivery and is feasible for standardized products with high volumes and reasonably accurate forecasts.

Question 34

A closeness matrix can reflect the qualitative judgments of managers and employees,or can be the number of trips between each pair of departments.

Question 35

Mass production is a production strategy that uses batch processes in a make-to-stock strategy.

Question 36

Euclidean distance calculations are usually more realistic than rectilinear distance calculations when determining the walking distance between operations in a building.

Question 37

Continuous flow processes have a high level of customization.

Question 38

In a line process,there is little variability in the products manufactured,and production and material handling equipment are often specialized.

Question 39

The product-process matrix brings together the elements of volume,process,and quality.

Question 40

Fixed automation is appropriate for line and continuous flow operations.

Question 41

The process structure that best describes a waiter's position at a restaurant would be classified as:

A)front office.
B)back office.
C)hybrid office.
D)inner office.

Question 42

People processing services require:

A)a high degree of process structure.
B)high capital intensity.
C)physical presence.
D)hybrid low volume-capital intensive operations.

Question 43

When the process choice is a job process,it requires:

A)organizing the resources around the process.
B)a line flow strategy.
C)perfectly predictable customer demands.
D)same sequence of processing steps for each job.

Question 44

Which of the following is sometimes called mass production?

A)batch process and make-to-order strategy
B)line process and make-to-stock strategy
C)continuous flow process and assemble-to-order strategy
D)job process and make-to-order strategy

Question 45

Back offices typically emphasize:

A)low cost operations and on-time delivery.
B)top quality and customization.
C)on-time delivery and customization.
D)top quality and low cost operations.

Question 46

Field service representatives are classified as a:

A)back office.
B)hybrid office.
C)front office.
D)mid office.

Question 47

Which of the following statements about process choice is best?

A)A batch process typically has a standard sequence of operations through the facility.
B)Automobiles and appliances are examples of products created using a continuous flow process.
C)Continuous flow processes are very capital intensive.
D)A custom cake operation is an example of a batch process.

Question 48

The ability to reprogram machines is useful for both low-customization and high-customization processes.

Question 49

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

Question 50

Which one of the following statements concerning process management is best?

A)Process management is a short-term decision,and thus it has a tactical rather than a strategic focus.
B)Process changes should be made only when introducing new products or services.
C)The variable underlying all four major process decisions is volume.
D)A company's operations strategy is the primary output of its major process decisions.

Question 51

A process that is primarily back office is:

A)a taxi driver.
B)loan officer at a bank.
C)the payroll clerk that calculates your paycheck.
D)the hostess at a restaurant.

Question 52

A politician conducting a town hall meeting is an example of:

A)back office.
B)passive contact.
C)active contact.
D)hybrid office.

Question 53

A toaster is an example of flexible automation.

Question 54

With a dramatic flourish,the team leader tore the employee orientation guidelines into pieces.He then distributed blank pieces of paper to the team and asked them to envision the perfect orientation process without regard to how it has always been done.This team is probably engaging in process reengineering.

Question 55

Economies of scope reflect the ability to produce multiple products more cheaply in combination than separately.

Question 56

In a service process,capital intensity varies with volume in both front office and back office operations.

Question 57

Front offices typically emphasize:

A)low cost operations and on-time delivery.
B)top quality and customization.
C)on-time delivery and standardization.
D)top quality and low cost operations.

Question 58

The common denominator for decisions on service processes is primarily customer contact.

Question 59

A job process should be preferred when:

A)workforce and equipment are specialized.
B)products are made to stock type.
C)customization is high and volume is low.
D)customization is low and volume is high.

Question 60

A yacht maker produces customized yachts for a clientele that wants a one-of-a-kind watercraft.This process can be described as:

A)divergent.
B)complex.
C)specialized.
D)hybrid.

Question 61

A manufacturer that produces standard products in large volumes is likely to be using a(n):

A)make-to-stock strategy.
B)make-to-order strategy.
C)assemble-to-order strategy.
D)engineer-to-order strategy.

Question 62

Figure 3.2
A company of four departments has the following closeness factors and current locations of all departments.Assume rectilinear distance.
Use the information in Figure 3.2.What is the overall weighted-distance score for the arrangement?

A)52
B)48
C)63
D)58

Question 63

Figure 3.1
The information systems and operations management department of a small college is now designing its layout for newly built office space.An overhead view of the available office space reveals the following (note: assume all locations are measured from center point to center point):
Use the information in Figure 3.1.What pair of locations has Euclidean and rectilinear distances that are identical?

A)C and D
B)F and E
C)D and E
D)B and A

Question 64

Combining a line process with the make-to-stock strategy is sometimes called:

A)make-to-order.
B)assemble-to-order.
C)a hybrid process.
D)mass production.

Question 65

Which of the following statements about customer involvement is best?

A)In service industries,customer contact is of minor importance.
B)High task divergence and flexible process flows require more flexibility of the process's employees,facilities and equipment.
C)A firm that produces standardized products often seeks customer specifications.
D)When customer involvement is highly customized,a process is more likely to use a standardized-services process rather than a customized-services process.

Question 66

Figure 3.2
A company of four departments has the following closeness factors and current locations of all departments.Assume rectilinear distance.
Using the information in Figure 3.2,which of these arrangements has the best weighted-distance score?

A)

B)

C)

D)

Question 67

The product-process matrix used to analyze manufacturing operations brings together the elements of:

A)volume,process,and intensity.
B)process,intensity,and product design.
C)intensity,volume,and process.
D)customization,volume,and process.

Question 68

Use the following to answer the questions below.
Acme Machine is a job shop that makes specialty parts for the airline industry.Figure #1 below shows the block plan for key manufacturing operations in its current facility.Acme believes there may be a way to reduce the total distance traveled between departments.Consider the two revisions that have been suggested,based on the closeness matrix shown below the block plans.The aisles are shown by the dotted lines in Figure 1.
If travel between departments is restricted to the aisles shown in Figure 1,what is the total weighted-distance (wd)score for the block plan shown in Revision 2?

A)less than or equal to 30
B)greater than 30 but less than or equal to 60
C)greater than 60 but less than or equal to 90
D)greater than 90

Question 69

Use the following to answer the questions below.
Acme Machine is a job shop that makes specialty parts for the airline industry.Figure #1 below shows the block plan for key manufacturing operations in its current facility.Acme believes there may be a way to reduce the total distance traveled between departments.Consider the two revisions that have been suggested,based on the closeness matrix shown below the block plans.The aisles are shown by the dotted lines in Figure 1.
If travel between departments is restricted to the aisles shown in Figure 1,what is the total weighted-distance (wd)score for the block plan shown in Revision 1?

A)less than or equal to 30
B)greater than 30 but less than or equal to 60
C)greater than 60 but less than or equal to 90
D)greater than 90

Question 70

The principle of postponement is employed by a producer using a(n):

A)make-to-stock strategy.
B)make-to-order strategy.
C)assemble-to-order strategy.
D)engineer-to-order strategy.

Question 71

Figure 3.3
A company of four departments has the following closeness factors and current locations of all departments:
Use the information from Figure 3.3.What is the total weighted distance for the current layout?

A)69
B)73
C)77
D)81

Question 72

Figure 3.1
The information systems and operations management department of a small college is now designing its layout for newly built office space.An overhead view of the available office space reveals the following (note: assume all locations are measured from center point to center point):
Use the information in Figure 3.1.What is the Euclidean distance between offices A and C?

A)less than or equal to 25 feet
B)greater than 25 but less than or equal to 45 feet
C)greater than 45 but less than or equal to 65 feet
D)greater than 65 feet

Question 73

Figure 3.2
A company of four departments has the following closeness factors and current locations of all departments.Assume rectilinear distance.
Use the information in Figure 3.2.Which pair of departments has the greatest weighted-distance score?

A)1 & 2
B)1 & 3
C)1 & 4
D)2 & 3

Question 74

Figure 3.1
The information systems and operations management department of a small college is now designing its layout for newly built office space.An overhead view of the available office space reveals the following (note: assume all locations are measured from center point to center point):
Use the information in Figure 3.1.What is the rectilinear distance between offices A and C?

A)less than or equal to 25 feet
B)greater than 25 but less than or equal to 45 feet
C)greater than 45 but less than or equal to 65 feet
D)greater than 65 feet

Question 75

Active customer contact and personalized attention can lower cost to the customer by:

A)increasing the capital intensity.
B)trading fixed costs for an equivalent variable cost.
C)substituting customer efforts for those of the service provider.
D)lowering the level of technology involved.

Question 76

Use the following to answer the questions below.
Acme Machine is a job shop that makes specialty parts for the airline industry.Figure #1 below shows the block plan for key manufacturing operations in its current facility.Acme believes there may be a way to reduce the total distance traveled between departments.Consider the two revisions that have been suggested,based on the closeness matrix shown below the block plans.The aisles are shown by the dotted lines in Figure 1.
If travel between departments is restricted to the aisles shown in Figure 1,what is the total weighted-distance (wd)score for the block plan shown in Figure 1?

A)less than or equal to 30
B)greater than 30 but less than or equal to 60
C)greater than 60 but less than or equal to 90
D)greater than 90

Question 77

Figure 3.1
The information systems and operations management department of a small college is now designing its layout for newly built office space.An overhead view of the available office space reveals the following (note: assume all locations are measured from center point to center point):
Use the information in Figure 3.1.What is the rectilinear distance between offices B and D?

A)greater than 65 feet
B)greater than 45 but less than or equal to 65 feet
C)greater than 25 but less than or equal to 45 feet
D)less than or equal to 25 feet

Question 78

Figure 3.3
A company of four departments has the following closeness factors and current locations of all departments:
Use the information from Figure 3.3.The departmental pair that has the greatest weighted distance between them is:

A)A & B.
B)A & C.
C)A & D.
D)A & E.

Question 79

Figure 3.1
The information systems and operations management department of a small college is now designing its layout for newly built office space.An overhead view of the available office space reveals the following (note: assume all locations are measured from center point to center point):
Use the information in Figure 3.1.What is the Euclidean distance between offices B and D?

A)greater than 65 feet
B)greater than 45 but less than or equal to 65 feet
C)greater than 25 but less than or equal to 45 feet
D)less than or equal to 25 feet

Question 80

Which one of the following statements about process management is best?

A)When customization must be high,equipment should be general purpose,and employees need to perform a broader range of duties.
B)The traditional relationship between capital intensity and resource flexibility is that if one is high,so is the other.
C)Creating a more capital-intensive process tends to reduce the fixed cost and raise the variable unit cost.
D)Economies of scope mean that a process should be devoted to a single product or service to achieve high volumes.