301: MGT Operations Management Name: Alban Mariau Fall 2008 2/40 + 10 105% Instructor: Kurt Haskell Quiz: Chapter 7 Due: Thursday: Oct 30, 10 PM
1. Dell's approach to personal computer manufacturing is to use a product focus, which
gives the company its low-cost competitive advantage. True False
2. A firm's process strategy is its approach to transforming resources into goods and
services. True False
3. In process-focused facilities, equipment utilization is low.
True False 4. Harley-Davidson, because it has so many possible combinations of products, utilizes the process strategy of mass customization. True False 5. A value-stream map includes both (1) inventory quantities, and (2) symbols for customers and suppliers. True False 6. The assembly line is a classic example of a repetitive process. True False 7. The tool that calculates which process has the lowest cost at any specified production volume is a crossover chart. True False
8. The term focused processes refers to the quest for increased efficiency, whether in goods
or services, that results from specialization. True False 9. Service blueprinting is a process analysis technique that focuses on the customer and the provider's interaction with the customer. True False 10. Activity times should not be included in a service blueprint. True False
11. Time-function mapping is a flow diagram with time added to the horizontal axis. True False 12. Process maps use distance, but not time, to show the movement of material, product, or people through a process. True False 13. Professional services typically require low levels of labor intensity. True False 14. Process control is the use of information technology to monitor and control a physical process. True False 15. Successful process redesign focuses on departmental areas where small, continuous improvements can be made. True False
16. A job shop is an example of a(n)
a. b. c. d. e. repetitive process continuous process line process intermittent process specialized process
17. Three types of processes are
a. b. c. d. e. goods, services, and hybrids manual, automated, and service process focus, repetitive focus, and product focus modular, continuous, and technological input, transformation, and output
18. Which of the following industries is likely to have low equipment utilization? a. auto manufacturing b. commercial baking c. television manufacturing d. chemical processing e. restaurants
19. 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 20. 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
21. Harley Davidson
a. b. c. d. e. a. b. c. d. e. utilizes job shops to make each of its modules uses product focused manufacturing uses a large number of modules to build a small number of different bikes uses work cells to feed its assembly line All of the above are true. They use modules. They allow easy switching from one product to the other. They are the classic assembly lines. They have more structure and less flexibility than a job shop layout. They include the assembly of basically all automobiles.
22. Which of the following is false regarding repetitive processes?
23. 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
24. Which of the following phrases best describes process focus?
a. b. c. d. e. low volume, high variety finished goods are usually made to a forecast and stored operators are modestly skilled high fixed costs, low variable costs raw material inventories are high relative to the value of the product
25. 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 26. 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 27. Value Stream a. Mapping 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. 28. 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. can only be successful with two-dimensional processes
29. 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.
30. 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 31. 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 32. Which of the following is not one of the essential ingredients for mass customization? a. high machine utilizations b. personnel and facility flexibility c. reliance on modular design d. rapid throughput e. very effective scheduling 33. 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 34. 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
35. Which of the following statements regarding ethical and environmentally friendly
processes is true? a. Operations managers can be environmentally sensitive, but they must avoid following a low cost strategy. b. Processes can be environmentally friendly or socially responsible, but not both. c. Operations managers can be environmentally sensitive and still follow a low cost strategy. d. Using energy-efficient lighting saves so little that it should not be labeled environmentally friendly. e. The only business strategy consistent with ethical and environmentally sensitive management is the differentiation strategy.
36. An organization's approach to transforming resources into goods and services is called
its a process strategy.
37. A special form of time-function mapping, which goes beyond the organization into its
supply chain, is value-stream mapping.
38. Mass customization is a rapid, low-cost production process that caters to constantly
changing unique customer desires.
39. Service blueprinting is a process analysis technique that focuses on the customer and the
producer's interaction with the customer.
40. The strategy for improving service productivity that customizes at delivery, rather than at
production, is process design. Extra Credit: 10 points 1. A firm is about to undertake the manufacture of a product, and is weighing the process configuration options. There are two intermittent processes under consideration, as well as a repetitive focus. The smaller intermittent process has fixed costs of $3,000 per month, and variable costs of $10 per unit. The larger intermittent process has fixed costs of $12,000 and variable costs of $2 per unit. A repetitive focus plant has fixed costs of $50,000 and variable costs of $1 per unit. a. At what output does the large intermittent process become cheaper than the small one?
3000+10x=12000+2x 8x=9000 x=9000/8=1125 At 1125 outputs the large intermittent process becomes cheaper than the small one. At 1125 outputs, we reached the crossover point. b. At what output does the repetitive process become cheaper than the larger intermittent process?
12000+2x=50000+x x=38000 At 38000 outputs the large intermittent process becomes cheaper than the small one. At 38000 outputs, we reached the crossover point.