Operations Management Chapter 3 Questions

Process decisions are
strategic in nature.
No process can exist without
at least one product or service.
Customer involvement reflects the ways in which customers
become part of the process and the extent of their participation.
The degree of customization is one factor that impacts
the selection of a manufacturers process structure.
Service providers with a line process tend to move customers, materials, or information in a
fixed sequence from one operation to the next.
A moment of truth or service encounter is
face to face interaction between the customer and a service provider.
Active contact in services means that
the customer is very much part of the creation of the service.
Divergence is the extent to which
the process is customized with considerable latitude on how the tasks are performed.
A front office structure features
high levels of customer contact where the service provider interacts directly with the internal or external customer.
Beginning points for manufacturing process structure decisions are the
volume level, amount of customization, and competitive priorities.
A job process has
a relatively high level of customization.
A job process has the highest level of
customization of the process choices.
In a line process, there is
little variability in the products manufactured, and production and material handling equipment are often specialized.
Petroleum refineries typically use
continuous flow processes.
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.
Assemble to order strategy produces
a wide variety of products from relatively few assemblies and components after orders are received.
A layout is the
physical arrangement of human and capital resources used by processes clustered together into operations.
A block plan allocates
space and indicates the placement of each department within the framework of a new or existing facility.
A closeness matrix can reflect the
qualitative judgments of managers and employees, or can be the number of trips between each par of departments.
A detailed layout showing exact size and shape of each department or work center cannot be designed until
after a satisfactory block plan has been developed.
A flexible workforce usually requires
greater skills and training, which comes at a cost. However, total benefits can exceed these costs.
Resource flexibility helps to
absorb feast or famine workloads in individual operations that are caused by low volume production, divergent tasks, and fluid scheduling.
Fixed automation is appropriate for
line and continuous flow operations.
The ability to reprogram machines is useful for
both low customization and high customization processes.
Economies of scope reflect the ability to
produce multiple products more cheaply in combination than separately.
In a service process, capital intensity varies with
volume in both front office and back office operations.
The common denominator for decisions on service processes is
primarily customer contact.
The common denominator for decisions on manufacturing processes is
volume.
Reengineering is the
fundamental rethinking and radical redesign of processes to improve performance dramatically.
Which one of the following statements concerning process management is best?
The variable underlying all four major process decisions is volume.
Several key decisions must be made in building an effective process design. Which one of the following best identifies them?
Capital intensity, resource flexibility, customer involvement, and process structure.
People processing services require:
Physical presence.
A college course taught in a case discussion format is an example of:
Active contact.
A yacht maker produces customized yachts for a clientele that want a one of a kind watercraft. The process is said to be:
Divergent.
The process structure that best describes a waiters position at a restaurant would be classified as:
Front office.
Field service representatives are classified as a:
Front office
A process that is primarily back office is:
The payroll clerk that calculates your paycheck.
Front offices typically emphasize:
Top quality and customization.
Back offices typically emphasize:
Low cost operations and on time delivery.
Which of the following is sometimes called mass production?
Line process and make to stock strategy.
A job process should be preferred when:
Customization is high and volume is low.
When the process choice is a job process, it requires:
organizing the resources around the process.
Which of the following statements about process choice is best?
Continuous flow processes are very capital intensive.
The product matrix used to analyze manufacturing operations brings together the elements of:
Customization, volume, and process.
Which one of the following statements about process management is best?
When customization must be high, equipment should be general purpose, and employees need to perform a broader range of duties.
A manufacturer that produces standard products in large volumes is likely to be using a:
make to stock strategy.
The principle of postponement is employed by a producer using a:
assemble to order strategy.
Combining a line process with the make to strategy is sometimes called:
mass production.
Which of the following statements about customer involvement is best?
High task divergence and flexible process flows require more flexibility of the process’s employees, facilities an equipment.
Active customer contact and personalized attention can lower cost to the customer by:
substituting customer efforts for those of the service provider.
An advantage of customer involvement in a service process is that:
if the customers are price sensitive, they might feel they are receiving more value.
More fixed automation typically means:
higher demand volumes.
Which of the following statements about flexible automation is best?
It is an automatic process that can be reprogrammed to handle various products.
With flexible automation, the ability to reprogram instructions can be useful in:
either line flow or flexible flow operations.
Higher volume in a process is generally associated with:
more capital intensity.
Low capital intensity is generally associated with:
higher customer involvement.
As it relates to process management, the concept of a flexible workforce is defined as:
workers who are capable of performing many different tasks.
Which of the following statements regarding flexibility is best?
Resource flexibility requires employees to be able to perform a broad range of duties, and equipment usually must be more general purpose.
Which of the following statements concerning resource flexibility is best?
Flexible equipment is useful to companies with low production volumes and high customization.
Suppose the competitive priorities call for offering a wide variety of customized services. Which of the following process decisions would be more likely?
More resource flexibility.
Under which one of the following environments would you opt for a higher degree of resource flexibility?
A firm using a flexible flow strategy.
Which statements about economies of scope is true?
1. Economies of scope are often attained through programmable automation.
2. Economies of scope bring together two competitive priorities – customizations and low price.
3. Economies of scope reflect the ability to produce multiple products more cheaply in combination than separately.
Which one of the following statements on the concept of focused factories is best?
Reduces the range of demands placed on an operation so management can concentrate on fewer tasks.
One method for a factory to gain operational focus is to:
Reorganize existing facilities to the plant within plant approach.
Which one of the following statements on the concept of gaining focus is best?
Plants within plants are different operations within a facility that can have individualized competitive priorities and processes.
A plant that has separate operations that are relatively autonomous with individualized competitive priorities, processes, and workforce under the same roof are said to have:
plant within plants.
Which one of the following statements concerning process reengineering is true?
1. Reengineering is the fundamental rethinking and radical design of business processes.
2. Information technology is a major enabler of reengineering.
3. Reengineering requires a “clean slate” philosophy.
Which one of the following statements about reengineering is true?
It is not appropriate for all organizations and all processes.
Which statement on reengineering and process improvement is best?
Reengineering starts with a “clean slate” whereas process improvement looks for ways to incrementally improve.
A primary enabler of process reengineering is:
Information technology.
A team consisting of members from each functional area affected by the process change is referred to as a:
Cross functional team.
A process selected for reengineering should be a:
Core process.
_____ is the ease with which employees and equipment can handle a wide variety of products, output levels, duties, and functions.
Resource flexibility.
_____ reflects the ways in which customers become part of the process and the extent of their participation.
Customer involvement.
_____ is the mix of equipment and human skills in a process.
Capital intensity.
_____ means that the customer is very much a part of the creation of the service and affects the process itself.
Active contact or customer involvement.
Customer, materials, or information move in diverse ways in processes that have _____.
Active contact.
A _____ process has high customer contact where the service provider interacts directly with the internal or external customer.
Front office.
A _____ allocates space and indicates placement of each department.
Block plan.
A _____ gives the relative importance of each pair of operations or departments being located close together.
Closeness matrix.
The most elementary way to develop a block plan that satisfies performance criteria and area requirements is by _____.
Trial and error.
The _____ method is a mathematical model used to evaluate layouts based on proximity factors.
Weighted distance.
The _____ method measures distance between two points with a series of 90 degree turns.
Rectilinear distance.
_____ automation produces one type o product or part in a sequence of simple operations.
Fixed.
_____ automation can handle various products through programmability.
Flexible
_____ are different operations within a facility with individualized competitive priorities, processes, and workforces under the same roof.
Plants within plants.
When a firm splits a large factory that makes all of a firms products into smaller specialized plants that each make one product, they have created _____.
Focused factories or plants within plants.