Question 1: Which one of the following statements is best about process management?
a. Creating a more capital-intensive process tends to reduce the fixed cost and raise the variable unit cost.
b. Economies of scope mean that a process should be devoted to a single product or service to achieve high volumes.
c. The traditional relationship between capital intensity and resource flexibility is that if one is high, so is the other.
d. When customization must be high, equipment should be general purpose, and employees need to perform a broader range of duties.
Question 2: A firm that chooses to compete based on delivery speed and variety would most likely have:
a. a make-to-order production and inventory strategy.
b. a make-to-stock production and inventory strategy.
c. an assemble-to-order production and inventory strategy.
d. an engineer-to-order production and inventory strategy.
Question 3: A politician conducting a town hall meeting is an example of:
a. passive contact
b. active contact
c. hybrid office
d. back office
Question 4: Which of the following statements concerning resource flexibility is best?
a. Resource flexibility is crucial for line-flow processing.
b. Flexible equipment is useful to companies with low production volumes and high customization.
c. Investment in general-purpose equipment is warranted if the firm expects to sell more than the break-even amount.
d. Manufacturing efficiency increases with general-purpose equipment.