Response to the following:
Question 1. Job processes generally have higher volumes than batch processes.
True
False
Question 2. A front office structure features high levels of customer contact where the service provider interacts directly with the internal or external customer.
True
False
Question 3. A team consisting of members from each functional area affected by the process change is referred to as a(n):
reengineering team.
cross-functional team.
process team.
improvement team.
Question 4. Which statement about economies of scope is not true?
Economies of scope are often attained through programmable automation.
Economies of scope bring together two competitive priorities-customization and low price.
Economies of scope reflect the ability to produce multiple products more cheaply in combination than separately.
Economies of scope reflect low capital intensity and high resource flexibility.
Question 5. Which of the following statements concerning resource flexibility is best?
Flexible equipment is useful to companies with low production volumes and high customization.
Investment in general-purpose equipment is warranted if the firm expects to sell more than the break-even amount.
Manufacturing efficiency increases with general-purpose equipment.
Resource flexibility is crucial for line-flow processing.
Question 6. Customer involvement reflects the ways in which customers become part of the process and the extent of their participation.
True
False
Question 7. Processes, by their nature, are found only in the operations function of an organization.
True
False
Question 8. Petroleum refineries typically use continuous flow processes.
True
False
Question 9. Reengineering is the fundamental rethinking and radical redesign of processes to improve performance dramatically.
True
False
Question 10. A back office operation most closely resembles a:
continuous flow process.
batch process.
job process.
line process.
Question 11. Which one of the following statements concerning process management is best?
Process management is a short-term decision, and thus it has a tactical rather than a strategic focus.
Process changes should be made only when introducing new products or services.
The variable underlying all four major process decisions is volume.
A company's operations strategy is the primary output of its major process decisions.
Question 12. Economies of scope reflect the ability to produce multiple products more cheaply in combination than separately.
True
False
Question 13. Process decisions are strategic in nature.
True
False
Question 14. Assemble-to-order strategy produces a wide variety of products from relatively few assemblies and components after orders are received.
True
False
Question 15. Resource flexibility determines whether resources are organized around products or processes.
True
False
Question 16. Physical presence does not occur in a manufacturing service process.
True
False
Question 17. Which of the following statements about process choice is best?
A batch process typically has a standard sequence of operations through the facility.
Automobiles and appliances are examples of products created using a continuous flow process.
Continuous flow processes are very capital intensive.
A custom cake operation is an example of a batch process.
Question 18. Use the following to answer the questions below.
A company must decide on the type of equipment to buy in order to manufacture a new product line. The company can purchase an all-purpose machine, with fixed costs amounting to $20,000 per year, and it will cost $40 / unit to produce the new line on this machine. It can also buy a special-purpose machine, with fixed costs of $50,000 per year, and the per unit cost on this machine is $30.
Refer to the instruction above. What does the company for the year by selecting this low-cost option (for annual requirements of 5,000 units)?
$15,000
$5,000
$10,000
$20,000
Question 19. Use the following to answer the questions below.
A company is considering two options for the production of a part needed downstream in the manufacturing process. Particulars are as follows:
Refer to the instruction above. For a monthly volume of 3,000 units, which automation approach should be chosen?
specialized automation
general automation
Either approach is acceptable, because costs are the same for either option at 3,000 units.
Can't be determined with information given.
Question 20. Use the following to answer the questions below.
A company must decide on the type of equipment to buy in order to manufacture a new product line. The company can purchase an all-purpose machine, with fixed costs amounting to $20,000 per year, and it will cost $40 / unit to produce the new line on this machine. It can also buy a special-purpose machine, with fixed costs of $50,000 per year, and the per unit cost on this machine is $30.
Refer to the instruction above. What is the break-even quantity between the two machines?
7,000 units
10,000 units
3,000 units
5,000 units