Process Strategy and Sustainability Part 2

52) Utilization in process-oriented facilities is frequently low because A) the postponement strategy for improving service productivity is being used. B) scheduling in process-oriented facilities is not very complex. C) with high fixed costs, utilization is not very important. D) excess capacity for peak demands is desirable. E) low raw material inventories cause machines to be idled. Answer: D 53) All of the following are true about a quasi-custom product except A) gets its apparent customization from the combinations available from a small number of modules. B) is often the output of repetitive focus facilities. C) is a valid description of a fast food sandwich. D) is only possible when the focus strategy of service productivity improvement is in use. E) it obtains both the economic advantage of the continuous and the custom advantage of the low-volume, high-variety model. Answer: D 54) 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. Answer: A 55) Process X has fixed costs of $10,000 and variable costs of $2.40 per unit. Process Y has fixed costs of $9,000 and variable costs of $2.25 per unit. Which of the following statements is true? A) The crossover point is approximately 6667 units. B) It is impossible for one process to have both of its costs lower than those of another process. C) Process Y is cheaper than process X at all volumes; there is no crossover point. D) Process X should be selected for very large production volumes. E) Process X is more profitable than process Y and should be selected. Answer: C 56) 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. Answer: D 57) Product Focused processes A) allow more customization, but are not very efficient. B) are desirable because resource needs increase slowly with the complexity of a process. C) are processes that are specialized for relatively few products or customer groups. D) apply only to service firms, not to manufacturers. E) are profitable because customers demand flexibility, not specialization. Answer: C 58) Which of the following is not true about Value Stream Mapping? A) It is a variation on time function mapping. B) It examines the supply chain to determine where value is added. C) It extends time function mapping back to the supplier. D) It starts with the customer and works backwards. E) It starts with the supplier. Answer: E 59) One fundamental difference between a process chart and a process map is that A) the process chart uses a time dimension, while a process map is not time-oriented. B) the process chart includes the supply chain, while the process map stays within an organization. C) the process chart is more like a table, while the process map is more like a schematic diagram. D) the process chart focuses on the customer and on the provider's interaction with the customer, while the process map does not deal directly with the customer. E) there is no difference. Answer: C 60) 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) shows how Ishikawa techniques can be added to improve quality. Answer: D 61) A drawing of the movement of material, product, or people is a A) flowchart. B) process chart. C) service blueprint. D) process map. E) network diagram. Answer: A 62) Strategies for improving productivity in services are A) separation, self-service, automation, and scheduling. B) lean production, strategy-driven investments, automation, and process focus. C) reduce inventory, reduce waste, reduce inspection, and reduce rework. D) high interaction, mass customization, service factory, and just-in-time. E) none of the above. Answer: A 63) Which of the following is not a strategy for improving service productivity? A) self-service B) automation C) scheduling D) separation E) mass customization Answer: E 64) In mass service and professional service, the operations manager should focus on A) automation. B) equipment maintenance. C) sophisticated scheduling. D) human resources. E) assembly line. Answer: D 65) In mass service and service factory quadrants of the service process matrix, the operations manager could focus on all of the following except A) automation. B) standardization. C) tight quality control. D) removing some services. E) customization. Answer: E 66) 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 workforce is strongly committed it need not be cross-trained. D) If a workforce is strongly committed it need not be flexible. E) None of the above are true. Answer: E 67) Which of the following is not typical of process control systems? A) The output may take numerous forms including warning lights or statistical process control charts. B) The data are analyzed by computer, which generates feedback. C) Their sensors take measurements on a periodic basis. D) The sensors' measurements are digitized. E) The data are continuously analyzed by a person, who generates feedback. Answer: E 68) Which of the following is false regarding vision systems? A) They are consistently accurate. B) They are modest in cost. C) They do not become bored. D) Results are often unreliable. E) None of the above are true. Answer: D 69) 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) physical control. Answer: A 70) Which of the following technologies would enable a cashier to scan the entire contents of a shopping cart in seconds? A) ASRS B) AGV C) CAD/CAM D) RFID E) FMS Answer: D 71) "Automatic placement and withdrawal of parts and products into and from designated places in a warehouse" describes A) AGV. B) CAD/CAM. C) CIM. D) ASRS. E) FMS. Answer: D 72) 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) process control, robots, and decision support systems. Answer: A 73) Which one of the following technologies is used only for material handling, not actual production or assembly? A) robots B) CNC C) CAD D) AGVs E) FMS Answer: D 74) A system using an automated work cell controlled by electronic signals from a common centralized computer facility is called a(n) A) adaptive control system. B) robotics. C) flexible manufacturing system. D) automatic guided vehicle (AGV) system. E) manufacturing cell. Answer: C 75) "Operators simply load new programs, as necessary, to produce different products" describes A) CAD. B) automated guided vehicles. C) flexible manufacturing systems. D) vision systems. E) process control. Answer: C 76) Which of the following is not one of the essential ingredients for mass customization? A) storage of the many variations of finished goods to quickly accommodate the high level of customization B) personnel and facility flexibility C) reliance on modular design D) rapid throughput E) very effective scheduling Answer: A 77) 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. Answer: D 78) Which of the following statements is not true process redesign? A) it is the fundamental rethinking of business processes B) it can focus on any process C) it tries to bring about dramatic improvements in performance D) it focuses on activities that cross functional lines E) it applies to a few and specific processes Answer: E 79) Ethical and environmentally friendly processes include all of the following except A) emission controls. B) recycling. C) efficient use of resources. D) reduction of waste by-products. E) price control. Answer: E 80) Making environmentally sound products through efficient processes A) is unprofitable, as long as recyclable materials prices are soft. B) is known as lean manufacturing. C) can still be profitable. D) is easier for repetitive processes than for product-focused processes. E) is unrealistic. Answer: C 81) Flexibility can be achieved with A) movable equipment. B) inexpensive equipment. C) sophisticated electronic equipment. D) modular equipment. E) all of the above. Answer: E 82) 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. Answer: C 83) The four R's of sustainability do not include A) recycling. B) resources. C) regulations. D) reputation. E) responsibility. Answer: E 84) Which of the following is true regarding the concept of flexibility? A) It is the ability to change production rates with little penalty in time, cost, or customer value. B) It can be accomplished with sophisticated electronic equipment. C) It may involve modular, movable, even cheap equipment. D) All of the above are true. E) None of the above are true. Answer: D 85) An organization's approach to transforming resources into goods and services is called its ________. Answer: process strategy Diff: 2 Skill: knowledge Objective: LO1 Describe four production processes 86) The process strategy that is organized around processes to facilitate low-volume, high-variety processes is called a(n) ________. Answer: process focus 87) ________ is a process strategy that uses a product-oriented production process that uses modules. Answer: Repetitive focus 88) ________ is a rapid, low-cost production process that caters to constantly changing unique customer desires. Answer: Mass customization 89) ________ represent an organization's attempt to gain increased efficiency through specialization, which can include, for example, concentrating on certain classes of customers. Answer: Focused processes 90) A(n) ________ uses symbols to analyze the movement of people or material. Answer: process chart 91) A special form of time-function mapping, which goes beyond the organization into its supply chain, is ________. Answer: value-stream mapping 92) ________ is a process analysis technique that focuses on the customer and the producer's interaction with the customer. Answer: Service blueprinting 93) The strategy for improving service productivity that customizes at delivery, rather than at production, is ________. Answer: postponement 94) ________ involves the ability to respond with little penalty in time, cost, or customer value. Answer: Flexibility